Texarkana, Texas 2021-03-01 10:11:17 –
Austin (KXAN) —Texas Attorney General Ken Paxton filed a lawsuit on Monday against an energy company allegedly violating Texas’s deceptive customary law during a winter storm.
Paxton says Glidi, LLC “Without warning, energy costs have skyrocketed to our customers, and as a result, consumers are paying hundreds or even thousands of dollars every day for electricity.”
Griddy’s pricing model charges customers a $ 10 subscription fee and uses the wholesale price instead of the retail price to charge the customer for electricity. The indexed pricing model saw a significant surge in customer billing as wholesale prices soared more than 300 times normal during the storm as supply weakened and demand surged.One Griddy customer on the outskirts of Houston Filed a class action against the company After she received $ 9,300 in electricity bills, which was deducted directly from her bank account.
According to a public utility commission in Texas, the wholesale price of electricity during a storm was $ 9 per kilowatt hour, Glidi said. For a house that uses about 2,000 kilowatt hours of energy a month According to Griddy, the cost of electricity is about $ 640 per day...
Glidi said PUCT should have lifted the price directive when electricity was restored and there was enough electricity, but it wasn’t.
Glidy Banned from state power grid on Friday According to a statement on the company’s website, according to the Texas Electrical Reliability Council, ERCOT “takes our members and effectively shuts down Griddy.”
The company’s website message said, “We have always been transparent and customer-centric at every stage. We wanted to keep our members fighting for peace of mind, but that hasn’t changed.”
Griddy says it plans to suspend billing until it has more data on actual customer energy usage and release the final bill to the customer within 60 days.
According to Paxton, the company violated TDTPA through “falsely misleading fraudulent advertising and marketing practices.” KXAN has contacted Griddy regarding the proceedings. I will update it when I receive this story.
Texas AG Paxton sues Griddy over high energy bills, claims it violated state trade practices act during storms Source link Texas AG Paxton sues Griddy over high energy bills, claims it violated state trade practices act during storms