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Texas power: everything to know about your personal ERCOT network
Despite the winter climate in Texas, this is not the only reason for the lack of energy. Here is everything you need to know about your personal electrical network.
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A Texas woman filed a class action lawsuit seeking $ 1 billion in relief for customers of electricity retailer Griddy, who the lawsuit claims was illegally involved in price increases amid major state power cuts last week. .
Lisa Khoury, who filed the lawsuit on behalf of all Griddy customers who paid the high prices, faced a $ 9,546 electric bill from February 1 to 19 as a result of the sharp increase in wholesale electricity prices in Texas in the midst of a harsh winter storm.
Griddy is a service that allows customers to pay variable fees on their electricity, being charged what wholesale customers would be charged, or “exactly the price we buy electricity,” says the company on its website, rather than a price fixed.
But last week, wholesale prices skyrocketed amid disruptions that hit millions of Texans, reaching $ 9,000 per megawatt-hour, compared to the typical $ 50 per megawatt-hour rate, the suit says.
“At the moment we don’t know how many people can be affected, but there are probably thousands of clients who have received these outrageous bills,” said Derek Potts, a lawyer representing Khoury, in a statement. “Collective action will be the most efficient and effective way for Griddy’s customers to come together and fight this predatory price.
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Griddy did not immediately respond to USA TODAY’s request to comment on the dispute, but on a page of frequently asked questions about the storm on its website, the company denies allegations of price increases.
The move aims to prevent Griddy from billing and receiving payments on overcharged charges during the storm and forgiveness for late or unpaid payments, as well as monetary relief.
Texas Governor Greg Abbott said on Wednesday that the state was investigating suppliers whose prices soared, and the Texas Public Service Commission issued an order on Sunday preventing suppliers, until further notice, from disconnecting customers who did not pay your accounts.
Many customers use Griddy with the expectation of paying less, the suit said. On its website, in a video explaining how the service works, Griddy calls itself a company that saves consumers money by not setting prices like “all those other guys, you know those who have been chasing you, your parents and your neighbors over the past 20 years. “
While using the service is “a gamble”, the lawsuit said, “Griddy knew he was charging consumers too much, that consumers would be harmed, and Griddy would be unfairly enriched for withholding customer payments.”
According to the lawsuit, Khoury’s typical monthly electricity bill is $ 200 to $ 250, so she allows the service to cover her bank account whenever it reaches $ 150. From February 15-19, Khoury had $ 1,200 withdrawn automatically from your bank account, the suit says. She suspended payment on her account, but owed Griddy more than $ 8,000, according to court documents.
‘Massive failure’: Why millions of people in Texas were without power
For two days last week, Khoury was practically without power, and she hosted her parents and in-laws, who are in their 80s, according to the lawsuit.
Before the high prices were charged, Griddy sent an email to customers on February 14 advising them that they should find a flat rate provider amid the potential for high prices, but the lawsuit says that many failed find one because the providers were not accepting new customers during the storm.
Khoury tried to switch providers on February 16, but was unable to get a new provider until February 19.
The lawsuit says that Griddy took advantage of its customers “in a grossly unfair manner” and pointed to the fact that Griddy suggested that customers find a new supplier as proof that it knew prices would be overly inflated.
He claims that Griddy’s actions violated the Texas Deceptive Business Practices Act, which prevents a company from charging an “exorbitant or excessive price” for goods needed during a disaster.
Abbott and President Joe Biden have declared emergencies in the state because of the winter storm. Historically low temperatures and unusual snow and ice removed large supplies of electricity from the Texas power grid last week. The storm and power outages were responsible for numerous deaths.
In Texas, which largely has its own power grid, the Electric Reliability Council of Texas manages the flow of electricity for about 26 million people, or 90% of the state.
‘An electric island’: Texas evaded federal regulation for years, having its own power grid
According to Griddy, wholesale prices soared last week because the Texas Public Utility Commission “cited its ‘full authority over ERCOT’ to determine that ERCOT set the price at $ 9 / kWh”.
Abbot and Texas lawmakers called for investigations into what went wrong with the state’s power grid. Prosecutors said they would investigate any criminal irregularities, and other lawsuits were filed by consumers.
A 2011 federal report said calls for increased winter preparedness from Texas electric generators have long been unanswered.
At least six ERCOT board members resigned this week. Abbott welcomed his resignations, but said in a television appearance on Wednesday that “more must be done”.
Contributing: The Associated Press