Greedy Griddy: Court Settlement Reached with Bankrupt Price-Gouging Electric Company

AUSTIN – Attorney General Ken Paxton announced details of the approved settlement in the lawsuit against Griddy Energy, LLC after Winter Storm Uri left its customers with exorbitant energy bills. Texas power companies failed to withstand the winter storm and left millions of Texans without power and heat during lethal, record-low temperatures across the state. Griddy customers felt an additional hit when the burden of skyrocketing energy costs hit their pocketbooks as well.

In response to legal actions arising out of the winter storm, including a lawsuit filed by Attorney General Paxton on behalf of Texas consumers, Griddy filed for Chapter 11 bankruptcy protection in March 2021. This settlement, along with Griddy’s confirmed bankruptcy plan of liquidation, releases former Griddy customers from any and all outstanding balances otherwise due and owing to Griddy, unless they elect to opt out of the release. Former customers may pursue a legal claim in the bankruptcy court to recover any monies they may have already paid for electricity they consumed during the winter storm.

The settlement also permanently enjoins Griddy and its parent company, Griddy Holdings, from making any false or misleading statements in the advertising of retail electricity. 

“Winter Storm Uri devastated the lives of many Texans, and my office engaged in good faith negotiations with Griddy Energy, LLC to provide some relief after they filed for bankruptcy.” Attorney General Paxton said. “I am pleased with the result of those negotiations, and I will continue to fight to protect the livelihoods of all who live in this great state.”