Anyone in Texas Getting Sticker Shock on Utility Bills

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The 43-year-old owner of an organic skincare and apothecary shop was initially confused by the message from Griddy, which sells wholesale power for a monthly membership, but she began to look for other providers.


Then she checked her bill.

“I paid $450 for one day. I was in shock,” Scott-Amos told The Daily Beast on Wednesday. “It made no sense because we have a gas heater, a gas fireplace, and we have been keeping the temperature around the house at 65 degrees. With that amount of money, and the labeled amount of usage Griddy said was used—we would have to be lighting up the whole neighborhood.”

The nightmare only got worse on Monday, when she realized her bill had increased by another $2,500. In comparison, Scott-Amos paid $33.93 last year for the entire month of February.

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But data from ERCOT suggests the price of getting the lights back on might be too steep for some Texans. As first reported by Reuters, the market prices on the power grid spiked more than 10,000 percent on Monday in the aftermath of the deep freeze. Prices skyrocketed to more than $9,000 per megawatt-hour—compared to the pre-storm prices of less than $50 per hour.

The amped-up wattage costs have affected Griddy customers in particular because of the company’s distinctive business model. In Texas’ hypercharged market for electricity, Griddy makes money by debiting its subscribers a flat $9.99 monthly fee—and then selling them raw power at its going wholesale value, effectively stripping out any insulation between consumers and the oscillations in supply and demand.

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