22 thoughts on “Texan files $1 billion class-action lawsuit after receiving $9,000 electric bill

  1. I don’t see this lawsuit going anywhere. Griddy customers were fully informed about what they were signing up for.

    It sucks and I hope the state steps in to correct this but I don’t see that Griddy did anything wrong here.

  2. They have a choice between two plans. One that gives them a wholesale market rate and one where the bill is always the same.

    The people who wanted the “cheap” option and chose wholesale, chose poorly.

    At least they have a choice. I have never lived anywhere that I had a choice in my utility providers.

  3. Ah, so they want to pay less during normal times and normal rates during unprecedented times? Can’t have your cake and eat it too.

  4. The people in the class action will win and get $15 company credit, but not before their bill gets sent to collections and fucks their credit rating.

  5. I feel blessed to live in Nebraska. It is the only state with 100% publicly owned utilities. All profits go back into infrastructure.

    Edit: Thank you all for my first flair. Every state has their good and bad but it’s nice to focus sometimes on what you do have instead of what you don’t.

  6. > Griddy’s wholesale rate to soar to $9,000 per megawatt hour

    She used one megawatt hour of electricity? That is running a 2000 watt heater for 500 hours.

  7. If the state of Texas allows these unfortunate people to write off their utility bills, after they were supposedly aware of the possibility of this happening, the conversation about the government writing off student loans needs to happen forthwith because it’s the exact same argument people make against loan forgiveness.

  8. Yeah this is misleading. Griddy’s platform is to passthrough the costs. Whatever the wholesale price they pass it through. They don’t negotiate a wholesale rate like other providers and they don’t control the wholesale cost. They have to pay whatever the going rate is so that’s what they send straight to the customer. 99% of the time you’re paying like 1-3 cents. Last year my entire energy average wholesale price was 2.2 cents a kwh. This storm was something Griddy and others never anticipated and probably fucked their bottom line. Griddy literally notified all their customers and told them to switch providers because the costs were so high. I got a phone call and text and an email from Griddy. They also have an app that gives you real time wholesale cost which is great because you can monitor when it gets high and lay off using high voltage until the price comes down. Usually within 15 minutes. However this storm fucked everything up and the wholesale price was NINE DOLLARS a kwh for DAYS. The app kept pinging me that the rates were outrageous. Griddy realized there was no end to the surge in sight so that’s when they contacted their customers including me. Literally said they’d rather lose us as customers if it meant we didn’t have to pay the outrageous surge. I was a Griddy customer and switched during the storm to a different provider. I had a new provider with a fixed 6.6 cent rate within 12 hours of switching. I only paid ~$90 during the surge before switching.

    So to these home owners well they’re idiots. It takes seconds to switch to a new provider. Everyone knows when signing a variable rate that you are risking surge pricing. Which is why you have to monitor it. If you don’t want to monitor it then you need to get a fixed rate. The real problem here is the wholesale price is what needs to be regulated. There should be a cap. Griddy can’t control that.

  9. Real talk: Does the electricity cost more to generate in these conditions, or is the electric company trying to earn the same amount as it normally makes divided over all their customers, despite supplying a fraction of the power?

    I don’t understand the logic behind charging more when they could simply be supplying what they can at whatever costs they normally have. This is asking to lose their golden egg. Short term gains for long term losses.

  10. Cost of electricity in Texas, 2004-2019, for customers billed by traditional utility suppliers versus free market suppliers: https://i.imgur.com/JMLikGb.jpg

    Notice that customers always paid more if their electric bills came from competitive free market suppliers instead of from traditional regulated utilities.

  11. Can this lawsuit really go anywhere? I mean Griddy advertises as a market rate provider. And they warneed people this could happen before it did.

    Technically speaking Griddy didn’t break their contract, and by using electricity and not having the money to pay for it, the customers are in breach of contract.

    Is Griddy going to go broke because they are ultimately gonna have to eat those high bills?

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