Upstart Texas energy retailer Griddy Power LLC, devoid of consumers and going through litigation after charging hefty quantities throughout the winter freeze that swept the state final month, is planning to file for chapter, individuals accustomed to the matter mentioned.
Griddy is getting ready to wind down its enterprise by means of a chapter submitting that might come inside days, in response to individuals accustomed to the matter. Texas regulators have already barred Griddy from the state energy market after the corporate handed steep will increase in electrical energy costs on to prospects throughout final month’s power disaster.
Whereas most shoppers in Texas purchase electrical energy at fastened charges from municipal utilities and energy retailers, Griddy supplied entry to variable electrical energy costs that skyrocketed throughout the excessive winter climate. When spot costs briefly shot as much as $9,000 per megawatt hour throughout the winter freeze, in contrast with a mean final yr of lower than $22, Griddy prospects complained of receiving exorbitant bills, a part of a broader backlash over how regulators and market contributors dealt with the climate emergency.
Representatives for Griddy didn’t reply to requests for touch upon Sunday.
The Electrical Reliability Council of Texas, which operates the state’s grid, revoked Griddy’s working rights and transferred its prospects elsewhere final month after it defaulted on required funds.