AG Paxton Drops Griddy Lawsuit, Engages in Good Faith Negotiations
The day after Griddy Energy filed for bankruptcy protection, Texas Attorney General Ken Paxton announced Griddy would release customers from outstanding bills. In addition, Paxton released a statement in response to the Chapter 11 bankruptcy filing by Griddy.
“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,” said Paxton. “I ensured that Griddy’s proposed bankruptcy plan takes an important step forward by offering releases to approximately 24,000 former customers who owe $29.1 million in unpaid electric bills. Griddy and my office are 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.”
Through the bankruptcy plan, Griddy will release all outstanding payment obligations for Texas consumers who were unable to pay energy bills due to the high prices charged during the storm. Griddy will work with the state in good faith to address relief for Texans who have already paid. In exchange, the attorney general said Texas would drop its lawsuit and civil investigative demand.