Former customers of Griddy Energy are off the hook. A settlement between the Texas Attorney General and the wholesale electric provider means customers stuck with huge bills from the February freeze won't have to pay a dime.

Time is running out on a slate of other bills lawmakers are considering that stem from February's deadly winter storm.

Credit: The Texas TribuneTexas Attorney General Ken Paxton filed a lawsuit Monday against electricity retailer Griddy, claiming it misled customers using deceptive business practices after some customers reported bills costing tens of thousands of dollars. “We are aware of the lawsuit filed by the Texas Attorney General against Griddy,” company spokesperson Lauren Valdes said in a statement to The Texas Tribune. But it’s unclear if Griddy customers will still be required to pay their bills. Griddy customers paid a $10 monthly membership and in turn were passed wholesale power prices. However, unlike fixed-rate electricity plan users, Griddy customers are susceptible to market changes due to increased demand or reduced supply.

AUSTIN – Attorney General Ken Paxton filed a lawsuit against Griddy, LLC for “violating the Texas Deceptive Trade Practices Act through false, misleading, and deceptive advertising and marketing practices,” according to a news release sent by Paxton’s office. During the February winter freeze, multiple Texas power companies left millions of Texans without power and heat during record-low temperatures across the state. As Texans struggled to survive this winter storm, Griddy made the suffering even worse as it debited outrageous amounts each day. As the first lawsuit filed by my office to confront the outrageous failure of power companies, I will hold Griddy accountable for their escalation of this winter storm disaster,” said Paxton. This is but a first step to hold companies accountable for the suffering Texans experienced during and after the power grid failure.

A Chambers County resident filed a class-action lawsuit against electricity retailer Griddy on Monday, accusing the provider of price gouging customers during last week’s freeze. Griddy drafted payments from Khoury’s bank account several times, according to the lawsuit, pulling $1,200 before she blocked further charges from her bank. Griddy passes wholesale electricity rates directly to customers, who in turn pay the company $10 a month. While electricity bills are likely to rise across the board, Texans on variable rate plans faced immediate and alarmingly high prices. “At Griddy, transparency has always been our goal,” the company began a blog post on Thursday explaining the price hike.

The Griddy app displays the current wholesale electricity price on a phone in this 2019 file photo. HOUSTON – A Chambers County woman has filed a proposed class action lawsuit against the electric company, Griddy. This is not the first time Griddy customers have felt the effects of extreme weather on the electric bills. This means that if the company’s wholesale price goes up, the customer’s price goes up as well. It’s unclear how many other Texans also pay wholesale prices from other companies.

Skyrocketing price of power could impact CPS Energy bills for a decade or moreAfter unusual icy weather left millions of Texans without power, some are facing another crisis: Sky-high electricity bills. AdHere’s more on the soaring electricity bills:WHAT ARE WHOLESALE ELECTRICITY PRICES? Wholesale electricity prices fluctuate based on demand. Wholesale prices are typically as low as a couple of cents per kilowatt-hour but spiked to $9 per kilowatt-hour after the storm. It’s unclear how many other Texans also pay wholesale prices from other companies.