- Texas AG Ken Paxton reached a settlement with bankrupt energy company Griddy Energy, LLC and its parent company (collectively “Griddy”) to resolve allegations stemming from spiking energy prices that Griddy passed on to its consumers during the February 2021 winter storm in Texas, including allegations of false, misleading, and deceptive advertising in violation of the Texas Deceptive Trade Practices Act.
- As previously reported, the AG’s complaint alleged that Griddy promised consumers cheaper, wholesale prices that would consistently be less than the prices charged by traditional energy companies, but in reality, in the aftermath of the storm that caused extensive power outages in the state, many Griddy customers’ bank accounts were auto-debited for hundreds of dollars per day, resulting in overdrawn accounts, overdraft fees, and an inability to pay other bills.
- Under the terms of the settlement agreement, along with Griddy’s Chapter 11 bankruptcy plan of liquidation, Griddy agreed to release former customers from their outstanding energy-bill balances unless they elect to opt out of the release, while former customers may pursue claims in bankruptcy court to recover any amounts they already paid for electricity consumed during the storm. Griddy is also permanently enjoined from making false or misleading statements in its retail electricity advertising.