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Texas Legislature should allow businesses to profit from conservation
Texas Legislature should allow businesses to profit from conservation
April 1, 2015
by Denise Stokes; Copyright 2015 by Competitive Assets, LLC. All rights reserved
In an article in the Houston Chronical on 3/31/15, a discussion is put forth about Demand Response (DR), which allows consumers to profit by reducing electricity use when the demand for electricity is high. Some Retail Electricity Providers (REPs) have pilot programs, but to date DR is mainly for industrial consumers. The article notes that regulatory obstacles make it difficult for all consumers to participate. However, a bill (HB 3343) in the Texas Legislature would allow all consumers to participate in such programs. Pointing out that ERCOT’s top priority is to make sure there is always enough electricity, the article notes that sometimes demand exceeds supply, which is when DR is most useful. In other parts of the country, participants in DR can get paid the same price when they reduce usage and generators get paid for producing more electricity. The article goes on to note that generators are opposed to the bill, as they believe that it can give DR companies preferential treatment. They don’t want any vendor to have an advantage over the others. However, the article notes that currently, DR is only used in emergency situations, and consumers are not allowed to simply reduce consumption when the price is right.
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