In the heat of a North Texas summer, electricity prices are often close to their peak. And for those who recently switched to a provider offering "wholesale" prices, it has been an especially pricey August.
"Sounded like low risk, low obligation, so we signed up," Tom McCullough said.
McCullough is among those who switched over to Griddy Electric, which launched in Texas in 2018. The company charges only a $9.99 monthly subscription and promises to save customers hundreds each year.
Initially McCullugh said it was great, many days he was paying pennies on the dollar compared to his fixed-price service. But this month, the market became volatile and wholesale electricity prices skyrocketed.
"Third week or so in August is when we started noticing the really big change, there was a $40 day, $50 day and then a $272 day for a single day of use," McCullough said.
In a statement, Griddy said, "unprecedented price spikes in the Texas wholesale electricity market" were to blame and that they were "evaluating new ways to help our members with price spikes, thinking about new technology and innovation."
The company also said it is waving it subscription fee for customers during the month of August.
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For McCullough, it’s a learning experience he said he hopes others will learn from.
"When you choose an energy company just make sure you do you research and read all the fine writing," he said.