A class action lawsuit brought against wholesale electricity supplier Griddy seeks more than $ 1 billion over the Texas company’s alleged “price fraud” that caused “economic and mental distress”.
The civil complaint, filed in the Harris County District Court by Mont Belvieu, Texas, resident Lisa Khoury, also wants Griddy to “fully forgive the delay or nonpayment associated with such accounts, including the removal of any negative credit report and penalties, and to refund payments already made on those accounts. “
Millions of Texans were left without power or drinking water last week due to a winter storm that froze the state’s power grid.
And those who dodged the blackouts were hit by huge electricity bills because power shortages have dramatically raised prices in the Lone Star state market-based system.
The lawsuit paints Khoury as a typical victim of the winter explosion that resulted in energy bills of more than $ 9,000 for the retiree who lives about 30 miles east of downtown Houston.
“I mean, this is life changing,” Khoury told NBC Dallas-Fort Worth. “You don’t just pay $ 9,500 a week.”
Khoury’s electricity bills typically range from $ 200 to $ 250 a month, which are paid directly from your bank account at intervals of $ 150, according to the lawsuit.
Between February 13 and 18, Griddy withdrew $ 150 eight times from Khoury, for $ 1,200, the complaint said. She stopped paying for withdrawals before Griddy told her on February 19 that she still owed another $ 8,235.
“Griddy attacked Khoury in the middle of a disaster,” said the complaint. “She and her husband were without power in the house from Wednesday, February 17 to Thursday, February 18, 2021. At the same time, Khoury hosted her parents and relatives, who are in their 80s, during the storm, so she continued to minimize any energy use because of the high prices. “
In a statement released late Friday afternoon, Griddy said, “The lawsuit is without merit and we plan to defend ourselves vigorously against it.”
Michael Webber, professor of energy resources at the University of Texas at Austin, said he was unsure whether the civil suit against Griddy would be upheld in court.
“Most of the time, I think the risk of these variable rate plans was well known, so it’s not clear whether a lawsuit will be successful,” he said on Friday. “It is difficult for people to go from $ 50 to $ 5,000 a month, but that does not mean that the accounts are illegal.”
The professor is more hopeful that state lawmakers can devise a bailout that protects people from four or five-digit electricity bills now and in the future.
“I would not be surprised if the legislature intervened to protect consumers from the price shock and then did something like regulate or ban these plans in the future,” said Webber.
