Houston-based retail electricity provider (REP) Griddy Energy LLC has filed for Chapter 11 protection in the wake of February’s Winter Storm Uri, which caused power outages along with skyrocketing electricity and natural gas prices.

A proposed reorganization would provide relief to Griddy customers unable to pay their electric bills as a result of scarcity pricing imposed in the wholesale power market during the storm.

Griddy on Monday blamed the Electric Reliability Council of Texas (ERCOT), the independent system operator that manages the flow of electricity to 90% of the state, an estimated 26 million-plus customers. Griddy said ERCOT was responsible for the “financial devastation” stemming from the storm.

As frigid temperatures gripped Texas causing acute shortages...