Texas Attorney General Ken Paxton announced his office would be forgiving over $29 million in unpaid fees following a lawsuit against an electrical provider that has been accused of jacking up prices during unprecedented winter weather in his state.
Paxton, who sued Griddy, a company that charged customers $10 per month for wholesale utility bills, is “offering releases to approximately 24,000 former customers who owe $29.1 million in unpaid electric” costs, he said Tuesday. The attorney general is engaged in “ongoing good faith negotiations to attempt to address additional relief for those Griddy customers who have already paid their storm-related energy bills,” he added.
A bankruptcy declaration from the embattled power company came after Griddy was barred from using the Texas electrical grid in February following a host of complaints from residents who said utility bills were reaching numbers in the thousands. Paxton sued Griddy on March 1 and accused the corporation of misleading Texans.
“Griddy, the company that promised Texans cheap ‘wholesale’ prices that would consistently beat traditional energy costs, blatantly contradicted these promotional representations as it auto-debited hundreds of dollars from Texans’ checking accounts daily,” the lawsuit read. “Griddy was fully aware of the reality of the risk in its pricing scheme — sky-high energy rates at a time when consumers are the most vulnerable.”
It continued: “When combined with Griddy’s auto-billing system, these vulnerable consumers who were promised savings were instead shocked by overdrawn accounts, overdraft fees, and an inability to pay their other bills, simply because they tried to protect their families from the bitter cold.”
Electrical bills reportedly jumped as high as $17,000 for one month of service after frigid winter temperatures roiled Texas, cutting off water and power for millions at the height of the crisis. Ty Williams, who pays bills on three properties, reported the massive $17,000 cost to ABC 8 and said his payment for all three areas amounted to just over $600 in February.
“How in the world can anyone pay that? I mean, you go from a couple hundred dollars a month … there’s absolutely no way,” he said. “It makes no sense.”
At the height of the winter crisis, where temperatures dipped below freezing in much of Texas, upward of 3.8 million homes were without power. Rampant water issues quickly followed as the weather fluctuated, leading to burst pipes and widespread plumbing issues. Nearly 14 million Lone Star State residents lacked water stability at one point in February.
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Paxton previously urged residents in a statement “to be aware of energy price hikes.” The office told consumers to “turn off autopay” and carefully review charges. The statement continued, “Price-gougers may be required to reimburse consumers and may be held liable for civil penalties of up to $10,000 per violation with an additional penalty of up to $250,000 if the affected consumers are elderly.”
