The company that drew attention after sending huge electricity bills to customers after last month’s blackout-causing winter storm in Texas has filed for bankruptcy protection.
Griddy Energy sold power to consumers at wholesale prices plus a $9.99 monthly fee. Its rates skyrocketed during the February deep freeze, when state grid operators raised wholesale prices.
The company blamed its situation on the Electric Reliability Council of Texas, which operates the power grid in most of the state. Griddy said ERCOT kept wholesale prices at the state’s legal cap – $9,000 per megawatt hour – for too long.
“The actions of ERCOT destroyed our business and caused financial harm to our customers,” Griddy CEO Michael Fallquist said in a statement.
ERCOT said it would review the bankruptcy filing but had no further comment.