Texas residents will be forgiven debts for light during the period of abnormally cold weather

Attorney General of the US state of Texas Ken Paxton said that 24 thousand subscribers are asked for debts for electricity for $ 29 million during the period of abnormally cold weather.

Griddy Energy LLC, an electric utility that lost customers and faced legal action over rising electricity prices during last month’s extreme cold weather in Texas, filed for legal protection under Chapter 11 of the US Bankruptcy Code in the Southern District of Texas. The company noted that it did not profit from the crisis caused by the winter storm and said that its proposed reorganization plan would help its former customers who were unable to pay electricity bills due to high prices.

“I made sure that the bankruptcy plan proposed by Griddy took an important step by offering an exemption from payment to approximately 24,000 former customers who owed $ 29.1 million… for electricity, ” –

said in a statement on the website of the Prosecutor General.

The measure will affect those users who “were unable to pay their electricity bills due to high prices during the storm.”

The Texas governor also announced that he accepted the resignation of the last of the three chairmen of the Texas Public Utilities Commission, Arthur D’Andrea.

The state of Texas in the United States in mid-February was severely affected by cold weather and snowstorms. Extreme weather conditions caused massive power outages, water problems, flooding of homes, interruptions in oil production, and rising gasoline and electricity prices.

Some Texas residents who signed up for “floating” tariffs began receiving thousands of dollars ‘ worth of electricity bills amid the extreme cold. And on this occasion, a class-action lawsuit was filed against Griddy on behalf of one of the residents of the state, Lisa Khoury, for $ 1 billion, and then by Texas Attorney General Ken Paxton.

So, Khoury herself said that her electricity bill from 1 to 19 February amounted to more than 9,5 thousand dollars, although she pays 200-250 dollars per month on average. As reported by the media, the reason is that due to increased demand, the wholesale cost of electricity jumped from 50 to 9 thousand dollars. Later, the Texas authorities temporarily banned the power outage to debtors and also froze the mailing of electricity bills.

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Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor
Steve Cowan

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