AG sues Texas utility over customers' sky-high energy bills

Texas attorney general said Monday hes suing electricity provider Griddy for passing along massive bills to its customers during last months winter storm.The lawsuit comes days after Texas power grid manager effectively shut down Griddy by revoking its access to the states electricity market.Griddy charges USD 10 a month to give people a way to pay wholesale prices for electricity instead of a fixed rate.

PTI | Austin | Updated: 01-03-2021 19:54 IST | Created: 01-03-2021 19:50 IST
AG sues Texas utility over customers' sky-high energy bills
Representative image Image Credit: Pixabay

Texas' attorney general said Monday he's suing electricity provider Griddy for passing along massive bills to its customers during last month's winter storm.

The lawsuit comes days after Texas' power grid manager effectively shut down Griddy by revoking its access to the state's electricity market.

Griddy charges USD 10 a month to give people a way to pay wholesale prices for electricity instead of a fixed rate. But when temperatures plummeted well below freezing last month, wholesale prices spiked and Griddy customers were left with sky-high electricity bills.

"Griddy misled Texans and signed them up for services which, in a time of crisis, resulted in individual Texans each losing thousands of dollars,'' Attorney General Ken Paxton said in a statement. "As Texans struggled to survive this winter storm, Griddy made the suffering even worse as it debited outrageous amounts each day." The lawsuit accused Griddy of violating the Texas Deceptive Trade Practices Act and seeks refunds for customers. The unusually heavy winter storm blanketed much of Texas with snow, knocking out electricity to 4 million customers and leaving many struggling to find clean water.

Meanwhile, the Electric Reliability Council of Texas, or ERCOT, shifted about 10,000 Griddy customers to other utilities on Friday. Griddy said in a statement that ERCOT "took our members and have effectively shut down Griddy." "We have always been transparent and customer-centric at every step. We wanted to continue the fight for our members to get relief and that hasn't changed," the statement said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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