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What is Griddy Energy?
Griddy Energy is a California-based wholesale electric provider that operated in deregulated areas of the Texas energy market before filing for Chapter 11 bankruptcy protection in mid-March 2021. Griddy was different from other retail energy providers (REPs).
Griddy in Texas operated by offering customers access to wholesale electricity rates. Customers paid a monthly fee for access, and then they bought electricity for the wholesale price, plus transmission and delivery utility fees and taxes.
There were positives for Griddy Energy customers in the form of lower rates during times of stability in the wholesale market. But there also were problems.
Where Griddy in Texas ran into trouble
Griddy energy customers first ran into trouble during August 2019, when scorching heat led to increased demand for the Texas electricity grid. The grid is managed by the Electric Reliability Council of Texas (ERCOT).
As the supply of electricity tightened, ERCOT tried to increase generation by allowing wholesale prices to hit the cap of $9,000 per megawatt hour. The wholesale price generally hovers between $35 and $50 per megawatt hour. That spike was brief but still presented trouble for Griddy customers before prices fell.
The situation got worse in February 2021, when drastically cold winter weather again stressed the grid and caused some generation methods to fail. The wholesale price soared again to that $9,000 cap and stay there for a few days.
Griddy recommended that customers find another provider, but many electricity suppliers weren’t accepting new enrollments, leaving Griddy customers who retained power with bills in the thousands of dollars.
In its bankruptcy filing, Griddy requested that those customers be released from about $29 million in unpaid bills. No action had been taken on that requested by the end of March.
Griddy Energy electric rates and plans
Griddy Energy entered the Texas market in 2017. It offered subscription-based wholesale electricity to residents and businesses across the state. For a monthly fee of $9.99, customers gain direct access to the wholesale electricity market, along with all its highs and lows.
It’s remaining customers have been transferred to other electricity suppliers, called providers of last resort. That means some now are signed up with companies they may not know and paying rates they never agreed to.
However, customers who have been moved to other providers against their will can and should look for new plans. They are not at risk of paying early termination fees in this situation.
That’s where SaveOnEnergy.com comes in.
How to shop with SaveOnEnergy.com
SaveOnEnergy helps customers in deregulated energy markets exercise their power to choose. While wholesale electricity can be tempting, traditional fixed rate plans are much less volatile. Shop a variety of plans from top REPs with the 24/7 online SaveOnEnergy marketplace.
- Enter your ZIP code above. We’ll show you today’s rates in your area from trusted energy providers.
- Choose your plan. We get paid by our partners so you can shop for free. Select the option that suits your needs and sign up easily online.
- Enjoy your power to choose. Your new provider will coordinate with your utility company to manage the switch. All you need to do is sit back and enjoy your low rate.
Not sure what to choose? Give one of our energy wizards a call and they’ll be happy to help. If you’re looking for business electricity, they can help you design a custom plan.