Griddy Energy Files for Bankruptcy Amid Backlash

HOUSTON, TX – After facing extreme backlash for over charging customers thousands during the winter storm, Griddy Energy has announced it has filed for bankruptcy.

According to a statement released by the company, the decision to petition to file for Chapter 11 is to "release former customers with unpaid electricity bills."

The company also claimed it did not profit from the unprecedented weather crisis and that its customers had access to real-time wholesale electricity prices. This would allow clients to "adjust [their] electricity usage" as the state faced temperatures in the single digits.

In the press release, the electric company stated the corporation earns the same $9.99 off the monthly membership, even if the cost per kilowatt fluctuates substantially. During the storm, the cost per kilowatt soared to $9 for more than 80 hours straight.

"Prior to Winter Storm Uri, Griddy was a thriving business with more than 29,000 customers who saved more than 17 million dollars since 2017. The actions of ERCOT destroyed our business and caused financial harm to our customers," said Griddy Chief Executive Officer Michael Fallquist. "Our bankruptcy plan, if confirmed, provides relief for our former customers who were unable to pay their electricity bills resulting from the unprecedented prices."

The company claimed ERCOT was to blame for making a "bad situation worse" for customers after they left the cost for megawatt at $9,000 for hours after the company ended its load shedding practices.

According to Griddy, this caused customers to pay more than 300 times the average price during that period.

"We built Griddy to improve an antiquated industry by giving our customers access to wholesale pricing, real-time data, and the ability to help balance the grid while lowering their own bills. Our model worked in August 2019 and would have worked in February 2021, had the grid not failed and the regulators not intervened," said Co-founder, Gregory Craig. "No retail energy provider or consumer should have to forecast and protect against such extreme and unforeseeable circumstances. We firmly believe in our model but, in order for it to be successful, the grid has to function properly, and prices have to be set by market forces. The actions of ERCOT caused our customers to unnecessarily suffer and caused irreparable harm to our business."