Texas energy provider sued over electric bills during winter storm may owe you money

Former customers may pursue a legal claim to recover any money they may have already paid for electricity used during the storm.

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Monday, August 30, 2021
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PREVIOUS REPORT: Lisa Khoury says her average electricity bill ranges from $200 to $250 but during a winter freeze that left Texans without power, Khoury saw a spike in her bill. Now, she's suing electric retailer, Griddy.

AUSTIN, Texas (KTRK) -- A Texas electricity provider that was sued for allegedly passing skyrocketing energy costs to customers without warning during February's winter storm may soon be paying its customers back.

According to the office of Texas Attorney General Ken Paxton, a settlement was finalized on Monday in the lawsuit against Griddy Energy, LLC.

Paxton sued Griddy, a wholesale electricity provider that charges market price for customers based on their personal kilowatt usage, shortly after the storm for "violating the Texas Deceptive Trade Practices Act through false, misleading, and deceptive advertising and marketing practices."

READ MORE: $400 bill for half a month: Customers upset with energy company

Griddy filed for Chapter 11 bankruptcy protection in March.

The settlement, along with Griddy's confirmed bankruptcy plan of liquidation, releases former Griddy customers from any and all outstanding balances that are due to the company. This is unless the customer chooses to opt out of the release.

Former customers may pursue a legal claim in the bankruptcy court to recover any money they may have already paid for electricity they consumed during the winter storm.

Note: The video above is from an ABC13 report published on Feb. 23, 2021, sharing the story of a woman who claims she was charged $9,000 during the winter storm.

The settlement also permanently bans Griddy and its parent company, Griddy Holdings, from making any false or misleading statements in the advertising of retail electricity.

"Winter Storm Uri devastated the lives of many Texans, and my office engaged in good faith negotiations with Griddy Energy, LLC to provide some relief after they filed for bankruptcy," Paxton said in a statement. "I am pleased with the result of those negotiations, and I will continue to fight to protect the livelihoods of all who live in this great state."

To read the full settlement, visit Paxton's website.