Griddy (company)
| Company type | Private |
|---|---|
| Industry | Energy, Power retail |
| Founded | 2016 |
| Headquarters | Playa Vista, California , United States |
Area served | Texas, United States |
Key people | Michael Fallquist (CEO), Christian McArthur (COO), Roop Bhullar (CFO) |
| Products | Electricity retail at wholesale rates |
| Website | griddy |
Griddy operated as a U.S.-based power retailer offering energy in Texas at wholesale rates, charging a monthly membership fee of $9.99, and served roughly 29,000 subscribers. The firm was headquartered in California.
History
Founded in 2016 as Griddy LLC in Delaware, the company conducted its business from Playa Vista, California. In 2019, it secured funding from EDF Trading. December 2020 saw a leadership transition with Michael Fallquist named CEO, Christian McArthur as COO, and Roop Bhullar as CFO—all previously affiliated with Crius Energy. Additionally, Griddy entered into a financing partnership with Macquarie Energy.
2021 Texas power crisis
Amid the February 2021 Texas power crisis, customers on Griddy's wholesale variable rate plans encountered bills surpassing $5,000 for just five days of service due to unprecedented wholesale prices capped at $9,000 per megawatt-hour ($9 per kilowatt-hour). Although price spikes had occurred briefly in August 2019, the February event maintained peak pricing for approximately four consecutive days. During this period, Griddy advised its customers to discontinue service; by February 15, over 9,700 accounts had opted out. The company sought authorization from the Public Utility Commission (PUC) to move remaining customers to conventional providers; however, the PUC was unable to respond promptly due to overwhelming demand.
During the storm, Griddy's customer base of about 29,000 was billed nearly $29 million. The PUC required ERCOT to uphold prices close to the $9,000 cap because of limited supply despite lower market trading values.
In the aftermath, a class-action lawsuit amounting to $1 billion was filed by a customer from Chambers County accusing Griddy of price gouging. Griddy's billing system automatically deducted funds as charges accumulated; nevertheless, numerous customers remained indebted after the crisis. The company introduced five-month payment plans but prohibited customers with outstanding balances from switching providers.
On February 26, ERCOT expelled Griddy from the Texas energy market for failure to pay its dues, resulting in roughly 10,100 customers being reassigned to alternative suppliers. On March 1, the Texas Attorney General initiated legal action against Griddy citing deceptive and misleading conduct. Subsequently, on March 15, Griddy filed for Chapter 11 bankruptcy protection.
By August 2021, Griddy reached a settlement with Texas authorities that involved forgiving customer debts accrued during the freeze and issuing refunds to those who had already settled their bills.
External links
- Griddy.com (archived August 13, 2021)