AUSTIN (CBSDFW.COM) — Despite wholesale electricity provider Griddy filing for bankruptcy on March 15, on Tuesday Texas Attorney General Ken Paxton announced that the company will forgive $29 million in electric bills.

Paxton’s office released a statement that said, in part, “Griddy’s proposed bankruptcy plan takes an important step forward by offering releases to approximately 24,000 former customers who owe $29.1 million in unpaid electric bills. Griddy and my office are engaged in ongoing good faith negotiations to attempt to address additional relief for those Griddy customers who have already paid their storm-related energy bills.”

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In their bankruptcy filing Griddy said it owes more than $29 million to ERCOT for power used in February.

Paxton filed suit against the company under the Texas Deceptive Trade Practices Act, but says the state court lawsuit and criminal investigation will be set aside while Griddy works “in good faith to resolve these matters”.

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According to Paxton, the company will release all outstanding payment obligations for Texans who were unable to pay their energy bills due to the high prices charged during the storm.

Tens of thousands of Texans who were on electric plans based on a real time prices, like Griddy, were slammed with high bills. The Public Utility Commission launched an investigation into retail electric providers who offer indexed plans. Customer rates on indexed plans are based on wholesale electricity prices. Indexed plans are allowable under state law.

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Click here for more information about Griddy’s Chapter 11 filing.

CBSDFW.com Staff