Griddy

Griddy was an American electricity retailer established in 2016 and incorporated in Delaware, with its physical base in Playa Vista, California. It operated in Texas’s deregulated electricity market, where it marketed a distinctive pricing model rather than a conventional fixed-rate retail electricity plan. Customers paid a monthly membership fee of $9.99 and were billed for electricity at prices linked to the wholesale market. The model was intended to provide customers with access to lower prices when wholesale power was inexpensive, while exposing them directly to the volatility of the wholesale market. The company reportedly served approximately 29,000 members before its collapse. Its offering appealed to consumers willing to monitor prices and manage consumption in exchange for the possibility of cheaper electricity. The same structure, however, created substantial exposure to extreme price spikes. In Texas, wholesale electricity prices can rise sharply during periods of severe weather, generation shortages, or grid stress. Griddy’s customers were therefore exposed to market conditions that customers on traditional fixed-rate plans generally did not experience directly. Griddy received investment from EDF Trading in 2019. In December 2020, it appointed a new senior leadership team consisting of Michael Fallquist as chief executive officer, Christian McArthur as chief operating officer, and Roop Bhullar as chief financial officer. The three executives had previously worked at Crius Energy, which had been acquired by TXU Energy in 2019. Around the same time, Griddy entered into an agreement with Macquarie Energy, although the precise commercial scope of that agreement is not specified in the available reference material. The company became nationally prominent during the February 2021 Texas power crisis. A prolonged winter storm caused severe disruption across the state’s electricity system, while the Electric Reliability Council of Texas, or ERCOT, maintained the wholesale price at the regulatory maximum of $9,000 per megawatt-hour, equivalent to $9 per kilowatt-hour. Because Griddy passed wholesale-linked costs through to customers, some users received bills exceeding $5,000 for approximately five days of service. Griddy said that wholesale prices remained at the maximum for roughly four days, a much longer period than the brief price spike the company had observed in August 2019. During the crisis, Griddy urged customers to leave its system or move to another provider. The company stated that more than 9,700 accounts had removed themselves by February 15. On February 17, it asked the Public Utility Commission of Texas for approval to transfer remaining customers to a traditional electricity provider, but the commission was overwhelmed by the broader emergency and could not address the request at that time. Griddy’s customers were charged approximately $29 million during the crisis, according to the cited reference material. The company’s billing system drew funds from linked customer accounts as charges accrued, but many customers still retained unpaid balances after the crisis. Griddy offered five-month payment plans to some customers, while also preventing customers with outstanding balances from switching providers. On February 26, 2021, ERCOT removed Griddy from the Texas electricity market for nonpayment. Approximately 10,100 customers were subsequently assigned or transferred to other electricity providers. Legal and financial difficulties followed quickly. A Chambers County customer filed a proposed class-action lawsuit alleging price gouging and seeking $1 billion in relief. On March 1, 2021, the Texas attorney general sued Griddy over allegedly false and misleading practices. Griddy filed for Chapter 11 bankruptcy protection on March 15, 2021. In August 2021, it settled the state’s false-and-misleading-practices case by agreeing to cancel remaining customer debts; customers who had already paid Griddy cou…

Griddy LLC was incorporated in Delaware in 2016 and operated from Playa Vista, California. It entered the Texas retail electricity market with a wholesale-linked model designed for the state’s deregulated power sector. Rather than selling electricity through a conventional fixed-rate contract, Griddy charged a monthly membership fee of $9.99 and passed wholesale electricity prices through to customers. This arrangement could benefit customers when market prices were low, but it also placed them directly at risk from sudden price increases. The company reportedly reached approximately 29,000 members. In 2019, it received investment from EDF Trading. The following year, Griddy changed its leadership structure. Michael Fallquist became chief executive officer, Christian McArthur became chief operating officer, and Roop Bhullar became chief financial officer. All three had previously been associated with Crius Energy, a company acquired by TXU Energy in 2019. Griddy also entered into an agreement with Macquarie Energy in December 2020. The company’s business model was severely tested by the February 2021 Texas power crisis. A major winter storm caused widespread grid disruption and constrained electricity supply. ERCOT kept the wholesale market price at the maximum permitted level of $9,000 per megawatt-hour, or $9 per kilowatt-hour. Because Griddy’s customer rates tracked wholesale prices, some households accumulated bills of more than $5,000 in approximately five days. Wholesale prices had previously reached the same level in August 2019, but only for about 90 minutes; in February 2021, the maximum price persisted for approximately four days. Griddy publicly advised customers to leave its service during the emergency. It reported that over 9,700 accounts had removed themselves by February 15. On February 17, the company asked the Public Utility Commission of Texas to approve the transfer of its remaining customers to a traditional retail electricity provider. The commission was unable to address the request while dealing with the wider crisis. Griddy’s roughly 29,000 customers were charged about $29 million during the storm. The company withdrew funds from linked financial accounts as charges accrued, but many customers remained indebted. Griddy offered five-month payment plans for outstanding balances, while customers with unpaid amounts were reportedly prevented from switching to another electricity provider. On February 26, ERCOT removed Griddy from the market because of nonpayment. Approximately 10,100 customers were transferred to other providers. The crisis generated litigation and regulatory scrutiny. A customer in Chambers County filed a proposed class action alleging price gouging and seeking $1 billion in damages. On March 1, the Texas attorney general sued Griddy, alleging false and misleading practices. Griddy filed for Chapter 11 bankruptcy on March 15. In August 2021, it settled the state case by agreeing to cancel debts still owed by customers, while allowing customers who had paid to seek refunds. The company subsequently ceased operating as a Texas electricity retailer and is considered defunct.

1. 2021Texas power crisis

   Extreme wholesale prices during the February winter storm generated very large bills for some Griddy customers and triggered widespread scrutiny.

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2. 2021Removal from the Texas electricity market

   ERCOT removed Griddy for nonpayment, and approximately 10,100 customers were moved to other providers.

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3. 2021Chapter 11 filing and settlement

   Griddy filed for Chapter 11 protection in March and later agreed to cancel remaining customer debts in a settlement with Texas authorities.

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4. 2020New leadership and Macquarie agreement

   Griddy appointed a new executive team and entered an agreement with Macquarie Energy.

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5. 2019EDF Trading investment

   EDF Trading provided investment to Griddy as the company developed its wholesale-linked retail electricity model.

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6. 2016Griddy LLC is incorporated

   Griddy LLC was incorporated in Delaware and operated physically from Playa Vista, California.

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A technology-oriented, market-based electricity retailer that offered customers direct access to wholesale-linked pricing instead of conventional fixed retail rates. Its proposition emphasized potential savings and price transparency, but required customers to bear substantial short-term market risk.

• Wholesale-linked electricity membershipResidential electricity

  Griddy’s core offering was a Texas residential electricity plan built around a $9.99 monthly membership fee and wholesale-linked energy charges. Unlike a conventional fixed-rate plan, the product passed market prices through to customers, creating the possibility of savings during low-price periods but also exposing households to severe volatility during supply shortages and grid emergencies.

• 2021Encouraging customers to leave during the stormStrategy

  Wholesale electricity prices reached the ERCOT ceiling during the February Texas power crisis, creating extraordinary charges under Griddy’s variable wholesale-linked model.

  What changed. Griddy advised customers to remove themselves from its system and sought regulatory approval to transfer remaining customers to a traditional provider.

  Aftermath. More than 9,700 accounts reportedly left by February 15, while the proposed transfer of remaining customers could not be promptly considered. ERCOT later removed Griddy from the market for nonpayment.

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• 2021Five-month payment plans for outstanding balancesOther

  Many customers remained liable for charges after the winter storm even though Griddy’s system withdrew funds as costs accrued.

  What changed. Griddy offered five-month payment plans to customers with unpaid balances and restricted customers with outstanding debts from switching providers.

  Aftermath. The billing and switching practices became part of the broader customer dispute and regulatory scrutiny that preceded the company’s bankruptcy filing and settlement.

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• 2021Chapter 11 restructuringOther

  Griddy faced market exclusion, unpaid obligations, litigation, and customer claims after the Texas power crisis.

  What changed. The company filed for Chapter 11 bankruptcy protection on March 15, 2021.

  Aftermath. The company later settled with Texas authorities and agreed to cancel remaining customer debts.

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• 2021Customer bill controversy during the Texas power crisisControversy

  Some customers received bills exceeding $5,000 after wholesale electricity prices reached the ERCOT maximum for several days. The episode prompted allegations of price gouging, intense public criticism, and a proposed class-action lawsuit.

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• 2021Texas false-and-misleading-practices caseControversy

  The Texas attorney general sued Griddy over alleged false and misleading practices. The case was settled in August 2021 through cancellation of outstanding customer debts and a refund-claim process for customers who had already paid.

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• 2021Texas winter storm produces extreme Griddy customer bills

  During the February Texas power crisis, wholesale-linked pricing produced customer bills exceeding $5,000 for some users over roughly five days.

  OtherPricing
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• 2021Griddy urges customers to leave during power crisis

  Griddy encouraged customers to remove themselves from its system during the storm and reported that more than 9,700 accounts had done so by February 15.

  Other
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• 2021ERCOT removes Griddy from the Texas market

  ERCOT ejected Griddy from the Texas electricity market for nonpayment, after which approximately 10,100 customers were moved to other providers.

  BankruptcyRegulation
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• 2021Griddy files for Chapter 11 bankruptcy

  Griddy sought Chapter 11 protection and debt restructuring in March after the Texas crisis, market removal, customer disputes, and unpaid obligations.

  Bankruptcy
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• 2020Griddy appoints new senior leadership and enters agreement with Macquarie Energy

  Griddy appointed Michael Fallquist, Christian McArthur, and Roop Bhullar as chief executive, chief operating, and chief financial officers, respectively, and entered an agreement with Macquarie Energy.

  Leadership changeOther
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1. Griddy (company)
2. Griddy official website