Griddy Energy, the Texas electricity supplier accused of charging customers thousands of dollars Winter Uri, said Monday he filed for bankruptcy.
Griddy was a “thriving business with more than 29,000 customers” before the winter storm hit, CEO Michael Fallquist said in a statement. The storm with record-low temperatures caused a frozen week and left millions of people without power in Texas, causing an estimated $ 195 to $ 295 billion in property and economic damage.
Griddy is the third Texas energy provider to file for bankruptcy since the storm. Brazos Electric Power Cooperative, which served more than 1.5 million Texans, submitted for Chapter 11 after building up $ 2.1 billion in accounts. Just Energy Group also filed for bankruptcy earlier this month.
Fallquist blamed Texas’ energy grid operator for Griddy seeking Chapter 11 protection. The Texas Electric Reliability Board, known as ERCOT, has exacerbated a bad situation for our customers by continuing to set prices at $ 9,000 per megawatt-hour, ‘he said.
“ERCOT’s actions have destroyed our business and caused financial customers for our customers,” Fallquist said.
Griddy is a defendant in a class action lawsuit filed last month by customers who accused the company of prize money. One customer, Lisa Khoury, said Griddy charged her $ 1,546 between February 1 and 19. That is 40 times more than her usual bill, she said in court documents.
A Dallas resident told CNN that his bill was $ 7,000, while another Texan reported a $ 6,225 tab. Khoury and other class members are seeking $ 1 billion in financial relief. Heavenly accounts prompted the Texas Attorney General’s office earlier this month to sue Griddy, claiming he had ‘false, misleading and fraudulent advertising and marketing practices’.
Griddy executives argue that ERCOT is to blame for excessive utility bills. During the storm, Griddy asked customers to switch to other providers in an effort to avoid the high prices. However, many suppliers could not add new customers during the freeze.
Griddy said in a statement that he did not take advantage of the February eclipse and did not control changes in energy prices. Griddy said it only pocketed his usual $ 9.99 monthly monthly fee from customers when electricity prices rose during the storm.
Texas Governor Greg Abbott also blamed ERCOT for the debacle. Four ERCOT board members resigned last month following the damage from the storm. ERCOT provides Texas with 90% of its power.
Griddy said his bankruptcy organization plan frees customers from their unpaid electricity bills. The reorganization plan, which has not yet been announced, is due to be approved by a bankruptcy judge in Houston. The company says its debt is between $ 10 million and $ 50 million, according to court documents.