Texas Electric Company Tells Customers to Cancel Their Plans Because Prices Are Too High
This is something you don't see everyday. A company warning you that they're about to throw a massive bill your way if you don't cancel.
Texas without a doubt has the most competitive electric business in the country. I grew up in Maryland, where we had one electric company growing up. That's right, BGE. Didn't like the rates? Too bad, only game in town. Here in Texas, you have a plethora of electric companies trying to get your business.
Over in the Houston area, you have electric service provider Griddy. They call themselves a wholesale electrical provider. They say, you pay the exact price that they buy the electricity at. Sounds like a deal too good to be true. Maybe it is.
Griddy released a statement today telling their customers to cancel. Customers would be facing a $9,000 a megawatt per hour if they don't cancel. The good thing is that Griddy has no contracts and no termination fees. Still, trying to switch electrical providers right now seems like a massive headache with everything going on.
“We want what’s right by our consumers, so we are encouraging them to leave. We believe that transparency and that honesty will bring them back” once prices return to normal," said Michael Fallquist, chief executive officer of Griddy. According to the Dallas Morning News, many electric companies in that area are not taking new customers until next Wednesday.
So it either pay out the a** or freeze. Griddy says they have around 29,000 customers and I imagine that number will be going down very soon.