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Houston Chronicle: Texas AG Sues Griddy

March 1, 2021 Rebecca Carballo of the Houston Chronicle

Texas Attorney General Ken Paxton filed suit against Griddy Monday, claiming the retail power company used deceptive practices to mislead customers, many of whom were hit with electric bills in the thousands of dollars during the weather-driven power crisis.

Griddy customers pay a monthly membership of about $10 and get access to wholesale power prices, which fluctuate, but are usually cheaper than retail prices. During the recent power crisis, when electricity supplies fell far short of demand, wholesale prices surged to the state maximum of $9,000 per megawatt hour.

That translates to $9 per kilowatt hour, compared to about 9 or 10 cents per kilowatt hour that retail customers typically pay.

Paxtons suit alleges Griddy violated the Texas Deceptive Trade Practices Act through false, misleading, and deceptive advertising and marketing practices.

“As the first lawsuit filed by my office to confront the outrageous failure of power companies, I will hold Griddy accountable for their escalation of this winter storm disaster,” Paxton said. “My office will not allow Texans to be deceived or exploited by unlawful behavior and deceptive business practices.”

For a longer version of this article, please visit HoustonChronicle.com.

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