A $ 1 billion class action lawsuit has been filed against Texas wholesale electricity wholesaler Griddy Energy for allegedly charging exorbitant prices during last week’s historic storm that left millions helpless people in the icy cold.
The lawsuit was filed Monday on behalf of Chambers County resident Lisa Khoury in Harris County, who said the electricity bill rose to $ 9,340 the week of the storm. Depending on demand, their average monthly bills typically range from $ 200 to $ 250.
He said Griddy automatically withdrew $ 1,200 from his bank account Feb. 13-18 and his general bill Feb. 1-19 was $ 9,546. The lawsuit states that some customers had bills of up to $ 17,000.
The complaint accused the company of “overcharging” some 29,000 customers “knowing that consumers would be harmed”.
Khoury said she was hit by the charges even as she and her husband suffered “most powerless” at her home from Feb. 17-18 when they welcomed her parents and in-laws who turned 80 during the storm.
He stated that despite expressing his concern about withdrawals and later bouncing checks, he never heard anything from Griddy. Ultimately, he made a final payment to his bank account on February 18th.
In Texas, residents can choose between two electricity bill options: a fixed plan, where their price stays at a rate regardless of market conditions, or a market rate plan, which can fluctuate depending on the amount of electricity used and the market price of electricity. Griddy offers this last plan.
“We charge (customers) the wholesale and real-time price of energy, which changes every 5 minutes. You effectively pay the same price as a retail energy provider or utility company, “Griddyy said in a statement. Griddy boasts on its website that this strategy ends up being cheaper for most customers.
Last week’s storm hit the state’s power grid and caused blackouts. It also caused Griddy’s wholesale rate to skyrocket to $ 9,000 per megawatt hour due to supply shortages and rising energy demand. Before the storm, the rate was $ 50 per megawatt hour, according to demand.
During the buildup of the storm, Griddy advised his customers to switch to another provider at a flat rate and told customers through his website that he was “seeking relief from utility regulators.” But many were unable to change due to the impending weather.
The lawsuit seeks a $ 1 billion monetary relief for Khoury and “on behalf of all others similarly located.”
He also accuses Griddy of violating Texas Misleading Business Practices Act and is seeking a court order to prevent the company from charging payments for “excessive pricing.”
Khoury attorney Derek Potts of the Houston-based law firm Potts told ABC News Griddy that it has 29,000 clients in Texas that the lawsuit could be affected.
“What happened financially to all Griddy customers, both in terms of the exorbitant prices charged and the way they were charged from people’s bank accounts and credit cards literally in the midst of a catastrophe, while many they were without electricity, heat, and water, which is clearly against Texas laws to protect consumers, ”Potts said.
Griddy did not immediately respond to ABC News’ request for comment, but dismissed the lawsuit for “bottomless” Reuters.
Griddy has blamed the Public Utility Commission for raising the wholesale price of electricity during the crisis, saying the company did not benefit from the high prices.
“We intend to fight this and, alongside our customers, for equity and accountability, to reveal why these price increases were allowed as millions of jeans went powerless,” he said. say Griddy in a blog post.
Texas power grid operator Texas Electric Reliability Council (ERCOT) is also facing lawsuits after more than 4 million customers lost power during the storm.
The top leaders of ERCOT’s board of directors announced Tuesday that they will abandon outrage over the storm’s management by the corporation. Four councilors, including the president and vice president, resigned, which took effect on Wednesday. A candidate for a councilor position also said he was withdrawing his name from consideration. All five live outside of Texas, which only intensified the ERCOT exam.
Morgan Winsor of ABC News contributed to this report.