Texas authorities will forgive electricity debts of residents

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The authorities of the American state of Texas will forgive 24 thousand of subscribers debts for electric power on $29 million dollars during the period of the abnormal cold weather. It was reported on the website of the Attorney General of the state Ken Paxton on March 16.

Power company Griddy Energy LLC raised its electricity prices in February during the abnormal cold spell, leading to litigation and customers refusing to cooperate. Company officials explained that they made no profit during the abnormal cold weather, and the company filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of Texas.

“I have made sure that Griddy’s proposed bankruptcy plan takes the important step of offering relief to approximately 24,000 former customers who owe $29.1 million for electricity,” according to a message on Texas Attorney General Ken Paxton’s website.

The message explains that those customers who were unable to pay off their debts because of price increases during the storm would be exempt from the payments.

On Feb. 16, a snowstorm that hit 25 U.S. states left more than 4 million people without power. Texas was one of the most affected states: the bad weather led to difficulties with water and electricity cuts, suspension of operations of refineries and other businesses.

Many Texans faced power problems. Also almost 15 million Texans with water supply problems. In this regard, water and food distribution points were organized in the state.

Abnormal climatic conditions had consequences: some people died of hypothermia, others died in traffic accidents, some died of carbon monoxide poisoning while trying to keep warm.

In early March, Brazos Electric Power Cooperative, the largest power company in Texas, declared bankruptcy. The power company valued its assets and debt at $1 billion to $10 billion. The utility’s chief executive, DeAnn Walker, resigned shortly thereafter. By her admission, she was partly responsible for the massive power outages.

The power companies that were able to continue operating after the storm significantly increased prices for their services, and many residents of the state received huge electricity bills.