Griddy declares bankruptcy, outrageous bills wiped
Q1 2021 has been a disaster for Griddy and its attached MLM opportunity, Griddy Pro.
In the lead up to Winter Storm Uri, Griddy recommended customers leave it because of its volatile business model.
A billion-dollar consumer class action was also filed against the company.
On March 15th, Griddy announced it was filing for Chapter 11 bankruptcy.
Fallquist blamed Texas’ energy grid operator for Griddy seeking Chapter 11 protection.
The Electric Reliability Council of Texas, known as ERCOT, “made a bad situation worse for our customers by continuing to set prices at $9,000 per megawatt hour,” he said.
Texas is the only state in the US with a deregulated energy grid. This lets ERCOT legally set the wholesale energy price at whatever they want.
While all of this is bad news for Griddy and its Griddy Pro affiliates, customers have received some good news.
Griddy’s bankruptcy was preceded by a lawsuit filed against it by the Texas State Attorney’s Office.
The attorney general’s office sued Griddy under the Texas Deceptive Trade Practices Act on behalf of 24,000 customers who have a cumulative $29.1 million in unpaid electric bills from the week of freezing temperatures in Texas last month.
The action Paxton took was to release Griddy’s former customers from Griddy’s bankruptcy, which it filed for Monday in Houston.
Texas won’t move forward with its state court lawsuit and investigation, and “Griddy will work with it in good faith to resolve these matters,” the attorney general said.
The catch, as reported by KCEN TV, is that relief might still be months away.
Still, knowing your 7000%+ electricity bill we be eventually forgiven has to be better than not knowing.
The bigger question here is whether anything will change in Texas going forward.
If the government has to step in and regulate between energy providers and consumers when shit hits the fan anyway, maybe faux deregulation isn’t such a great idea.