Anyone understand what happened to Griddy?

Exactly what happens to them every day.

Eta
I assumed this was a general question about how they operate. Sorry if you're asking about some specific and recent situation.

Looks like years of building a company might have come undone during three days of cold and a small amount snow. Kind of crazy to think about.

The reading is they are contesting the prices charged by the energy provider and haven't paid yet, so as such have yet to pay what they owe likely under the hopes they will have to pay less. Who knows if it will pay off.

LINK

Based on what they are saying and what some customers are saying is that they literally don't have the money. For a lot of customers, I imagine their accounts hit zero as Griddy kept debiting their bank account as their Griddy accounts fell to zero. Along with all those unpaid balances they had customers making stop orders with their banks like the initial customer that filed the lawsuit.

The lawsuit that is hoping to close a class is an interesting look at regulation/deregulation. Part of the argument in the filings is that the customers were unsophisticated and thus duped by the way Griddy was marketed to them. Anyone else member when another variable rate instrument nearly devastated to US market, I member it was about 12 and a half years ago.

Not living in TX I have no idea how Griddy was marketed though I am sure the ins and outs were explained if only in the fine print. I did look their marketing up and assuming they haven't changed it it reads:

quote:

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The grid is an interesting and magical thing. It takes energy from generators (a mix of natural gas, coal, wind, solar and nuclear energy) and moves it along the poles and wires (that are maintained by your TDU) to your business. And voila! You can power your lights.

The wholesale price of electricity is set by the grid operator, ERCOT, and can change every five minutes depending on supply and demand. When there is excess energy on the gird, prices drop and can even go negative, which means you are getting paid to use electricity (awesome!). And when demand is high like on hot summer days or freezing weather, prices can spike. The highest the price can go to is $9/kWh (which has only ever happened 0.005% of the time.) Most of the time, though, 96% to be exact, it stays below the Texas Average of 6¢/kWh.

It is this wholesale cost of electricity + TDU delivery charges + taxes and fees that we pass along to you without mark up for a monthly membership.

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In this case I don't think the majority of people were being unsophisticated they were just betting on the .005% number working in their favor. The problem is Griddy was allowing them to bet with money that a big percentage of them didn't have if you believe the statistic that 60+% of people don't have $1,000 to spend in an emergency.


The reality is deregulation works until it doesn't. In this case TX has a deregulated electrical market but still has middle-of-the-road average prices. In a deregulated market lots of people will bet on the best possible outcome and I might be able to accept that if we didn't tend to privatize profits and socialize losses which I wouldn't be surprised is the final outcome here.

quote:

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barred from participating in the state’s power market Friday.

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What happens to people that still used them as a provider? Does their power get cut off? This shite confuses me.

Got yo money.