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Griddy files for Chapter 11 bankruptcy in the wake of Texas power crisis

Griddy files for Chapter 11 bankruptcy in the wake of Texas power crisis
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Texas AG says more than $29 million in unpaid electric bills will be forgiven as he sues Griddy Energy

Texas AG says more than $29 million in unpaid electric bills will be forgiven as he sues Griddy Energy
The Texas attorney general says a lawsuit he filed against the energy company Griddy will keep about 24,000 Texans from having to pay $29.1 million in unpaid bills related to last month’s winter storms.
“My office sued Griddy Energy, under the Texas Deceptive Trade Practices Act, to hold them accountable for their escalation of last month’s winter storm disaster by debiting enormous amounts from customer accounts as Texans struggled to survive the storm,” AG Ken Paxton said Tuesday in a statement.
The company on Monday filed for Chapter 11 bankruptcy protection, noting more than $29 million owed to the Electric Reliability Council of Texas (ERCOT), which operates the state’s electric grid. That form of bankruptcy allows a company to restructure its debts and reorganize to pay creditors back over time. ....

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Texas Ensures Forgiveness of $29 Million in Unpaid Electric Bills After Griddy Files for Bankruptcy

Texas Ensures Forgiveness of $29 Million in Unpaid Electric Bills After Griddy Files for Bankruptcy
Texas Attorney General Ken Paxton said on Tuesday that about 24,000 former customers of Griddy Energy LLC will be released from paying $29.1 million in unpaid electric bills incurred during last month’s winter storm after the power retailer filed for bankruptcy.
Paxton said his office has been negotiating with Griddy after the state filed a lawsuit against the energy company for deceptive advertising. Griddy has since filed for Chapter 11 bankruptcy after the state grid operator cut off the company’s access to customers for unpaid bills.
The attorney general said that his office ensured that Griddy’s proposed bankruptcy plan would release all outstanding payment obligations for Texas residents who were unable to pay their energy bills due to the unexpected spike in prices during the storm. He said that his office and Griddy are also engaged “good faith” talk ....

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Griddy: Texas AG says more than $29 million in unpaid electric bills will be forgiven as he sues Griddy Energy

Griddy: Texas AG says more than $29 million in unpaid electric bills will be forgiven as he sues Griddy Energy
CNN
4 days ago
By Keith Allen, CNN
© TNS/Austin American-Statesman/Sipa USA
Texas Attorney General Ken Paxton. (Photo by Nick Wagner/Austin American-Statesman/TNS/Sipa USA)
The Texas attorney general says a lawsuit he filed against the energy company Griddy will keep about 24,000 Texans from having to pay $29.1 million in unpaid bills related to last month s winter storms.
My office sued Griddy Energy, under the Texas Deceptive Trade Practices Act, to hold them accountable for their escalation of last month s winter storm disaster by debiting enormous amounts from customer accounts as Texans struggled to survive the storm, AG Ken Paxton said Tuesday in a statement. ....

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Texas Regulator Resigns as Financial Fallout Continues

March 17, 2021
While many Texans last week were worried about sky-high electric bills from February’s winter storms, the state’s sole utility commissioner was privately reassuring out-of-state investors who profited from the crisis that he was working to keep their windfall safe.
Texas Monthly has obtained a recording of a 48-minute call on March 9 in which Texas Public Utility Commission chairman Arthur D’Andrea discussed the fallout from the February power crisis with investors. During that call, which was hosted by Bank of America Securities and closed to the public and news media, D’Andrea took pains to ease investors’ concerns that electricity trades, transacted at the highest prices the market allows, might be reversed, potentially costing trading firms and publicly traded generating companies millions of dollars. ....

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