Texas woman sues Griddy-...their response is Rich!

[WillJ8787]

Source:
https://www.cnn.com/2021/02/25/us/texas-winter-storm-griddy-lawsuit-trnd/index.html

What got me is this quote, that they are charging what they pay for Electricity and just pass it along to the end user.


"We charge (customers) the wholesale, real-time price of energy, which changes every 5 minutes," Griddy wrote in its statement. "You effectively pay the same price as a retail energy provider or utility."

This cannot be true....does anyone see see how this is a fallacy and farcical as an argument?

 

[siobhancan99]

THat's exactly how it works. You pay Griddy a flat fee for access which covers their costs and a small profit in your monthly fee, then you pay for usage based on what they paid to provide that usage.

 

[RobDownSouth]

Will, Griddy spoke the truth. They make their money charging a flat rate of $10.00 per month to deliver electricity at wholesale prices. Griddy hadn't seen an electric price spike in 4 years and a major price spike in 11 years. Their customers got complacent.

Griddy TOLD them to switch to conventional plans, they saw the disaster coming (and knew it'd be a public relations nightmare and more importantly a collections nightmare) but greedy and/or apathetic customers couldn't be bothered to switch.

Griddy customers paid much less in electric costs over the past three years and now they've seen the other side of an unregulated free market. Texas has five "emergency" lines for purchasing off-grid power, three in Louisiana and two in Mexico. Lousiana had no excess power to sell (it was just as cold there) and Mexico pushed as much as it could to the Muricans but the more they produced, the higher the demand (30% shortfall will do that) so the price spiked for a week.

Fuck every single Griddy customer. They made their bed, now lie in it.

 

[CornusKousa]

This cannot be true....does anyone see see how this is a fallacy and farcical as an argument?

No...lay it out for us Karl.

 

[YDB95]

Griddy customers paid much less in electric costs over the past three years and now they've seen the other side of an unregulated free market.

Yes, and maybe Rick Perry was right and they're willing to accept the consequences rather than let big business be held accountable for anything. But I've got my doubts.

 

[WillJ8787]

Will, Griddy spoke the truth. They make their money charging a flat rate of $10.00 per month to deliver electricity at wholesale prices. Griddy hadn't seen an electric price spike in 4 years and a major price spike in 11 years. Their customers got complacent.

Griddy TOLD them to switch to conventional plans, they saw the disaster coming (and knew it'd be a public relations nightmare and more importantly a collections nightmare) but greedy and/or apathetic customers couldn't be bothered to switch.

Griddy customers paid much less in electric costs over the past three years and now they've seen the other side of an unregulated free market. Texas has five "emergency" lines for purchasing off-grid power, three in Louisiana and two in Mexico. Lousiana had no excess power to sell (it was just as cold there) and Mexico pushed as much as it could to the Muricans but the more they produced, the higher the demand (30% shortfall will do that) so the price spiked for a week.

Fuck every single Griddy customer. They made their bed, now lie in it.

I agree with you... especially, the part about them facing up to their own decisions. Let me add this...

Is the cost really just want they pay for Electricity passed on to their customers...if by their negligence, they cause a significant part of the cost to go up?

 

[WillJ8787]

No...lay it out for us Karl.

Love Karl Reiner...great comedian! Thanks!

Ah, that is with a C...my bad!

Karl Lagerfield...now that is a compliment!

 

[RobDownSouth]

I agree with you... especially, the part about them facing up to their own decisions. Let me add this...

Is the cost really just want they pay for Electricity passed on to their customers...if by their negligence, they cause a significant part of the cost to go up?

Most of the major power companies here in Texas promised to "winterize" their power generation plants back with the last "big freeze" in 2003 (and a "little big freeze" in 2011) but somehow never got around to doing that. THAT was what caused the shortage. They weren't regulated, so they went "full BoBo" (talked about something incessantly, but in the end never does shit)

 

[siobhancan99]

I agree with you... especially, the part about them facing up to their own decisions. Let me add this...

Is the cost really just want they pay for Electricity passed on to their customers...if by their negligence, they cause a significant part of the cost to go up?

Griddy is the middle man. not the producer. I'm not sure what is unclear about that. its like blaming your grocer for a listeria outbreak at the farm in California.

 

[WillJ8787]

Griddy is the middle man. not the producer. I'm not sure what is unclear about that. its like blaming your grocer for a listeria outbreak at the farm in California.

Ah, ok...I didn't know that....thanks for the clarification.

 

[siobhancan99]

its all good! I'm sure texas utility providers arent exactly dinner conversation everywhere.

 

[WillJ8787]

its all good! I'm sure texas utility providers arent exactly dinner conversation everywhere.

For sure...so, I'm just going to keep reading about what's going on in Texas and see what happens with these lawsuits.

 

[LLCox]

I've been to Texas... it sucks.

 

[jaF0]

De-Griddied:


By Reuters, Wire Service Content Feb. 26, 2021, at 7:23 p.m.
More
U.S. News & World Report
Electric Firm Griddy Loses Access to Texas Grid, Customers Shifted to Rivals

More
HOUSTON (REUTERS) - Texas's power grid operator on Friday canceled Griddy Energy LLC's access to the state's power network, and shifted all its customers to other utilities, according to a notice by the grid operator.

Griddy was the power marketer that sold consumers power at wholesale rates, which rose to $9,000 per megawatt hour for days as cold weather struck the state last week. A request for comment was not immediately returned. A phone number listed on its website was not connected Friday afternoon.

Electric Reliability Council of Texas (ERCOT) said it had begun transferring about 10,100 of Griddy customers to one or more rival providers on Friday. Retail power providers who do not pay invoices within 72 hours can have all their customers reassigned to other electricity providers.

ERCOT has faced a firestorm of criticism from residents and state officials this week after being caught ill-prepared for severe cold. It called on utilities to cut power to protect the grid, leaving 4.3 million people without heat or light.

Seven of ERCOT's 15 directors resigned this week and a nominee withdrew. Texas Governor Greg Abbott has said public anger was justified and blamed ERCOT for not acting faster to keep generators from going offline.

(Reporting by Gary McWilliams, Editing by Rosalba O'Brien and Grant McCool)

Copyright 2021 Thomson Reuters.

https://www.usnews.com/news/us/arti...to-texas-grid-customers-turned-over-to-rivals

 

[RobDownSouth]

De-Griddied:


By Reuters, Wire Service Content Feb. 26, 2021, at 7:23 p.m.
More
U.S. News & World Report
Electric Firm Griddy Loses Access to Texas Grid, Customers Shifted to Rivals

More
HOUSTON (REUTERS) - Texas's power grid operator on Friday canceled Griddy Energy LLC's access to the state's power network, and shifted all its customers to other utilities, according to a notice by the grid operator.

Griddy was the power marketer that sold consumers power at wholesale rates, which rose to $9,000 per megawatt hour for days as cold weather struck the state last week. A request for comment was not immediately returned. A phone number listed on its website was not connected Friday afternoon.

Electric Reliability Council of Texas (ERCOT) said it had begun transferring about 10,100 of Griddy customers to one or more rival providers on Friday. Retail power providers who do not pay invoices within 72 hours can have all their customers reassigned to other electricity providers.

ERCOT has faced a firestorm of criticism from residents and state officials this week after being caught ill-prepared for severe cold. It called on utilities to cut power to protect the grid, leaving 4.3 million people without heat or light.

Seven of ERCOT's 15 directors resigned this week and a nominee withdrew. Texas Governor Greg Abbott has said public anger was justified and blamed ERCOT for not acting faster to keep generators from going offline.

(Reporting by Gary McWilliams, Editing by Rosalba O'Brien and Grant McCool)

Copyright 2021 Thomson Reuters.

https://www.usnews.com/news/us/arti...to-texas-grid-customers-turned-over-to-rivals

Less choices for consumers! Woo hoo!
Teh "Invisible" Hand of teh Market prevails....after the fact.

This was, in the end, an inefficient market...I have no sympathy for clueless customers who didn't do due diligence for what they were signing up for (and ignored pleas from Griddy to switch to conventional plans)..I do have a modest amount of sympathy for those that tried in vain to switch their plans over but could not.

 

[ishtat]

Insofar as we know the facts and the details of the contractual arrangements between the provider, the sales agent, and the end user, it appears that despite all the hot air it is going to be very difficult for retail customers to establish a viable case.

The next step will be Griddy suing the provider for unreasonable cancellation of their facility.

 

[YDB95]

I've been to Texas... it sucks.

I enjoyed my one visit, but I wouldn't want to live there.

 

[2021Noobie]

Texans made this (energy) bed.

Texans elected Cruz

Texans? What’s wrong with you!??