March 18, 2022, Texas – TXU Retail Energy Company, LLC has moved to dismiss the complaint filed by the Plan Administrator of the estates of Debtor Griddy Energy LLC involving a fraudulent transfer claim for the alleged transfer of the Debtor’s customers to the Defendant.
The Defendant in its Motion states that “Following Griddy’s material breach of the Standard Form Market Participant Agreement with the Electric Reliability Counsel of Texas (ERCOT), ERCOT revoked Griddy’s rights as a market participant and “to protect Griddy’s customers, ERCOT transitioned a portion of Griddy’s former customers to TXU.”
The Defendant has filed the Motion contending the following grounds for dismissal:
- Griddy’s former customer were not Griddy’s property.
- The complaint fails to include any facts to support a claim that the customers had any value to Griddy at the time of the transition.
- The Texas regulatory scheme protects consumers like Griddy’s former customers from catastrophic loss by requiring TXU and other electricity providers to step in and provide electricity on an emergency basis when a market participant like Griddy fails.
Russell F. Nelms v. TXU Retail Energy Company, LLC (In re Griddy Energy, LLC), AP No. 22-03025, Bankruptcy Court for the Southern District of Texas