Texas Power Retailer That Charged Clients Thousands During Freeze Hit With $1 Billion Lawsuit

[Yo_Mama_Been_Loggin]

Source: Newsweek

In the aftermath of an unprecedented winter storm that left millions of Texas residents without access to power for several days, one of the state's largest electricity retailer is facing a class-action lawsuit that seeks roughly $1 billion to compensate customers affected by surging prices that came alongside the inclement weather.

Lisa Khoury is the lawsuit's lead plaintiff, according to the Dallas Morning News, which first published a report detailing the legal action. Backed by attorney Derek Potts, Khoury's complaint also aims to secure an injunction that would block the retailer, Griddy, from actually acquiring payments from customers at increased rates. The resident of Chambers County, near Houston, reportedly received an electric bill that amounted to $9,340 for one week's worth of services during the bout of inclement weather, a sum that was about 40 times the cost of her usual monthly payment.

Griddy addressed the contents of Khoury's lawsuit, filed in Houston on Monday, in a statement to the Dallas Morning News. A spokesperson for the company reportedly described the suit as "meritless" and expressed Griddy's intention to push back against it in court.

"We understand our customers' frustration. However, Griddy passes through the wholesale electricity price to customers without mark-up," the spokesperson, Lauren Valdes, reportedly said. "The prices charged are the direct result of the non-market prices ordered by the [Public Utility Commission of Texas] last week. The lawsuit is meritless and we plan to vigorously defend it."



Read more: https://www.msn.com/en-us/money/companies/texas-power-retailer-that-charged-clients-thousands-during-freeze-hit-with-dollar1-billion-lawsuit/ar-BB1dX57u?ocid=DELLDHP&li=BBnb7Kz

[FBaggins]

1. Don't see how they have a claim

The company they’re suing didn’t set the prices and warned people in advance

[mpcamb]

7. I still like the notion... Throw a lawsuit at those who deserve it.

Who TRULY deserve it.

[Major Nikon]

9. That's how it typically works in Texas

There are three or more companies involved. The grid operator generally charges a fixed per month charge. One or more electricity producers charge the company that bills you for the electricity it provides and they pass either a fixed (by contract) charge to you or if you have no contract they pass on the per kilowatt price the producers charge them.

Personally I have a contract with the company that bills me, so my rate did not change.

[empedocles]

2. A judicial 'stay' would make things interesting.

[Deuxcents]

3. "Frustration "?

Texans gotta pool their resources n sue these people where it hurts. Sitting back and collecting their checks while gouging their customers should come to an end.

[IbogaProject]

4. a federal case maybe

They were selling energy derivatives, as these prices are based on short term prices which a retail customer can't hedge against. Morally the same as extending leverage to retail investors.

[FBaggins]

6. They weren't selling derivatives

They were selling the actual product at wholesale prices.

Nor was there any leverage involved... and customers had a hedge option.

[Gore1FL]

5. This strikes me like suing a brokerage for buying Gamestop at $300

Griddy even warned it's customers. This is someone's fault and there were victims. I would think ERCOT is the problem.

[ProfessorGAC]

8. I Fear There's Nobody Directly At Fault

They set up a badly flawed system with no contingent supply options & limited retail options.
The system they set up was designed to work as long as everything worked perfectly.
If a system requires perfect, it's not much of a system.
Ercot clearly made mistakes, they were far too slow to react & too lax on assuring supply. But, I think they operated within the legal rules set up by stupid legislators who thought they'd show how independent Texas could be.
We can question the fact that more than half the Ergot board don't even live in Texas. But, that appears legal, too.
I know anybody can sue over anything, but I'm not sure anybody did anything outside the rules. Deciding who to sue is tough.

[Sucha NastyWoman]

10. I was a Griddy customer until yesterday

I had Griddy, which means I got electricity at the wholesale cost. Griddy’s only profit is the $10/mo membership fee that I pay. They have about 29,000 customers. So they are not making that much off their customers.

The highest daily charge I got was $176, on Thursday after the lights came back on. Total for an eight day period was approx $550, and we had no electricity for 42 hrs of that time period.

Saturday my rate was actually a negative number most of the day, and the total charge was $.19. On Sunday my total charge was -$.06.

I feel like I have saved tons of money overall using Griddy. As far as I know, they never charged more than $9.00/ kWh. I typically use 12-25 kWh a day. I don’t really understand how it was possible for these people to have bills in the thousands, up to $16,000 for one man.

I just got switched to another company today, at Griddys suggestion that we switch temporarily, though it seems the worst might be over now. I should have switched when they first warned me, but I didn’t think it was going to be that bad. I hated to leave them because I love my usually low rates.

When Griddy sent me notifications of the extremely cheap price per kilowatt hr -many of the rates were negative - they happily attributed it to cheap wind energy.

[ZonkerHarris]

12. so they make $3.5 million a year for being a passthrough/middleman

[Major Nikon]

11. ERCOT isn't the problem

The problem was electric producers that drove up prices because they knew they could.

[Miguelito Loveless]

14. More like suing the broker when you shorted

Gamestop at $20, and it skyrockets to $600

[Miguelito Loveless]

13. Don't think they have a case

They gambled and lost. This is how the “free market” works. Don’t like it? Vote better next time.

[Dakota Flint]

15. Should be a one trillion dollar lawsuit

A billion dollars is mere peanuts...

[calimary]

17. I like your idea better!

Make it EXTREMELY painful and costly for these utilities to fleece people like this - kicking them when they're down (actually down and FROZEN in place).

[calimary]

16. Yeah, honey. Whatever you squeeze out of freezing people, HAND IT RIGHT OVER.