Texas AG forgives $ 29 million in unpaid bills as part of lawsuit against energy provider

Texas Attorney General Ken Paxton on Wednesday forgave $ 29 million in unpaid bills as part of a case against Griddy Energy after an unusual snowstorm cut off power to millions of Texans in February.

Paxton filed the lawsuit against Griddy after the energy company charged customers ‘astronomical electricity bills’ after the storm and therefore, according to the lawsuit, took ‘false, fraudulent and misleading actions’.

TEXAS POWER RETAIL GRIDDY HEADS FOR BANKRUPTCY

“My office sued Griddy Energy under the Texas Deceptive Trade Practices Act to hold them accountable for their increase in last month’s winter storm disaster by debiting huge amounts from customer bills as Texans struggle to survive the storm,” Paxton said in ‘ a statement from Thursday said. .

Power lines in Houston. (AP Photo / David J. Phillip, file)

Griddy filed for bankruptcy under Chapter 11. As part of its bankruptcy plan, Paxton said the company would offer ‘exemptions’ to about 24,000 former customers who owe $ 29.1 million in unpaid electricity bills. ‘

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“Griddy and my office are engaged in ongoing good faith negotiations to address additional relief for the Griddy customers who have already paid their storm-related energy bills,” Paxton said.

The company said in a Feb. 19 statement that it is “committed to crediting customers for any relief they receive, dollar-for-dollar” and is working with the Electric Reliability Council of Texas and the Public Utility Commission of Texas to do so.

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The company will also release all outstanding payment obligations to Texans who were unable to pay their bills after the storm, work with the Civil Investigative Demand and provide relief to Texans who have already paid their expensive electricity bills.

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