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“Wholesale” Electricity Company Sued by Texas Attorney General over Astronomical Consumer Bills

  • Texas AG Ken Paxton sued electricity company Griddy, LLC over allegations that it used false, misleading, and deceptive advertising practices to market its services to consumers in violation of the Texas Deceptive Trade Practices Act.
  • The complaint alleges that Griddy promised consumers cheaper, wholesale prices that would consistently be less than the prices charged by traditional energy companies, but in reality, in the aftermath of the February 2021 storm that caused extensive power outages in the state, many Griddy customers’ bank accounts were auto-debited for hundreds of dollars per day, resulting in overdrawn accounts, overdraft fees, and inability to pay other bills.
  • The complaint seeks injunctive relief to bar Griddy from advertising false or misleading electricity rates and requiring it to provide accurate information about the likelihood and extent of price fluctuations, among other things. The complaint also seeks civil penalties, restitution, disgorgement, and attorneys’ fees and costs.
  • As previously reported, the AG’s office recently issued Civil Investigative Demands under the Texas Deceptive Trade Practices Act to twelve power companies, seeking information, documents, and communications relating to the statewide power outages in the wake of the February 2021 storm.