Texas AG to issue $ 29 million loan forgiveness after storms

Texas Attorney General Ken Paxton on Tuesday announced he would implement a plan to write off $ 29 million utility bills for Texans who were cheated by soaring energy prices during from last month’s historic winter storm.

According to the Paxton office, Griddy Energy LLC has charged its customers “huge amounts”.

The energy company, which also filed for bankruptcy on Monday, released a statement saying the Electric Reliability Council of Texas (ERCOT) was to blame for the outages.

“ERCOT’s actions have destroyed our business and caused financial harm to our customers,” said Griddy CEO Michael Fallquist.

“ERCOT has made things worse for our customers by continuing to price at $ 9,000 per megawatt hour after stopping the hard load shedding instructions. “

Paxton’s office also released a statement saying they were working with Griddy to ensure customers are forgiven after they sued the company under the Texas Deceptive Marketing Practices Act.

“I have ensured that the bankruptcy plan proposed by Griddy takes an important step forward by providing discharges to approximately 24,000 former customers who owe $ 29.1 million in unpaid electricity bills,” the statement said. .

“Griddy and my office are engaged in ongoing good faith negotiations in an attempt to provide further relief to Griddy customers who have already paid their storm-related energy bills.”

Griddy Energy was in even greater difficulty last month when ERCOT banned the company from participating in the state’s energy market due to the company’s practice of upward pricing, even in the midst of a disaster.

The Paxton office and Griddy Energy have not offered any time frame for when customers can expect reimbursement.

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