Watch CBS News

Texas Attorney General Files Suit Against Power Provider Griddy

AUSTIN (CBSDFW.COM) – Days after the Electric Reliability Council of Texas (ERCOT) shutdown Griddy in Texas, the state attorney general's office has filed suit against the wholesale electricity provider.

AG Ken Paxton filed suit against Griddy, LLC for violating the Texas Deceptive Trade Practices Act "through false, misleading, and deceptive advertising and marketing practices."

During the winter storms that started on Valentine's Day, Texas power companies failed and left millions Texans without power and heat while record-low temperatures froze the state.

The AGs office says Griddy passed skyrocketing energy costs to customers with little to no warning, resulting in consumers paying hundreds or even thousands of dollars each day for electricity.

"As Texans struggled to survive this winter storm, Griddy made the suffering even worse as it debited outrageous amounts each day," Paxton said in a statement. "My office will not allow Texans to be deceived or exploited by unlawful behavior and deceptive business practices."

The lawsuit seeks injunctive relief from Griddy and to have the Court order refunds for customers from available sources.

It was on Friday, February 26 when ERCOT shutdown Griddy Energy for missing required payments. In a tweet to customers the company said "it was not a choice that we made."

Griddy's customers are being switched to other electric providers.

ERCOT currently has a more than $2 Billion shortfall because of Texas electricity providers failing to make payments due to the organization, which operates the power grid for most of Texas.


View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.