AG Ken Paxton Files Lawsuit Against Electricity Company
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.”
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.