AG Ken Paxton Files Lawsuit Against Electricity Company

AG Ken Paxton Files Lawsuit Against Electricity Company

Isabel Webb Carey
Isabel Webb Carey
|
March 1, 2021

After customers were hit with exor­bi­tant ener­gy bills, Attorney General Ken Paxton filed a lawsuit against Griddy, LLC for “violating the Texas Deceptive Trade Practices Act through false, misleading, and deceptive advertising and marketing practices,” according to a news release sent by Paxton’s office.

Amid the devastating winter storm which hit the state last month, millions of Texans were left without electricity as power companies failed to withstand the winter storm. Immediately following the disaster, customers received electricity bills up to $17,000. Many of those who reported receiving large bills were customers of electricity provider Griddy, which only operates in Texas.

“Griddy misled Texans and signed them up for services which, in a time of crisis, resulted in individual Texans each losing thousands of dollars. As Texans struggled to survive this winter storm, Griddy made the suffering even worse as it debited outrageous amounts each day. As the first lawsuit filed by my office to confront the outrageous failure of power companies, I will hold Griddy accountable for their escalation of this winter storm disaster,” said Attorney General Paxton. “My office will not allow Texans to be deceived or exploited by unlawful behavior and deceptive business practices.”

The lawsuit accused Griddy of violating the Texas Deceptive Trade Practices Act and seeks “injunctive relief from Griddy to ensure that the Texans it serves will receive truthful and accurate energy service in the future, and to have the Court order refunds from available sources,” according to the news release.  

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Paxton’s lawsuit follows a $1 billion class-action lawsuit that alleged Griddy price gouged customers during the winter storm. Texans who receive their electricity from Griddy Energy are being shifted to other providers after the Electric Reliability Council of Texas (ERCOT) revoked the company’s rights Friday to operate after missed required payments.

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Isabel Webb Carey

Isabel Webb Carey

Isabel Webb Carey attends the University of Texas at Austin in the Plan II Honors Program with a certificate in Core Texts and Ideas. Her interests include education, local governance, sustainability, and equity. Isabel enjoys dancing, hiking, and live music. She is also a staff writer for the Texas Orator. Email her at [email protected]
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