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TDUs Lend Support To REP Proposed Pilot Smart Thermostat Program But Express Intent To Initially Limit REP Eligibility
Oncor Electric Delivery Company LLC, on behalf of itself, AEP Texas Inc., CenterPoint Energy Houston Electric, LLC, and Texas-New Mexico Power Company (collectively, the ‘Joint Utilities’ or ‘TDUs’) filed comments at the Texas PUC generally in support of a proposed REP-offered smart thermostat customer provisioning program, to be funded under the TDU’s energy efficiency plans, but several TDUs expressed an intent to initially limit the number of retail electric providers eligible to participate in the pilot offering of the program.
These joint comments were filed in response to the Alliance for Retail Markets and the Texas Energy Association for Marketers (collectively, the REP Coalition) proposed modifications to the Smart Thermostat Pilot Market Transformation Program. As previously reported, the REP coalition provided a Texas PUC a template for a Smart Thermostat Pilot Market Transformation Program, whereby under the proposal, the REPs would be paid an incentive under the TDUs’ energy efficiency program to provide smart thermostats to residential customers.
Excerpts from TUD’s Joint Comments:
“Upon review of the proposed template, the Joint Utilities believe that this program would support the deployment of smart thermostats to residential customers throughout the competitive areas in Texas and reduce customers’ energy use. Additionally, wide scale deployment of advanced thermostats could facilitate future demand flexibility in the ERCOT market.”
“The template provides a structured and sound approach to smart thermostat deployment utilizing the REPs’ customer relationships and marketing channels.”
“Each transmission and distribution utility will consider the appropriateness of the smart thermostat program within their respective energy efficiency portfolio.”
“For example, as a pilot program, Oncor would initially engage three to five REPs to identify and resolve any program design, logistical, data management, or evaluation challenges.”
“Once the program is refined and finalized, Oncor would open the program to all REPs.”
“CenterPoint Houston has not determined the number of REPs it would engage in an initial program launch but agrees with Oncor that a preliminary pilot will be critical to resolving any challenges and finalizing a program design that can be offered to all REPs.”
The Joint Utilities also expressed support to the proposed program template filed by the REPs, and if approved by the Commission, the TDUs will consider the program under the schedule outlined below:
- AEP Texas – Under consideration, Possible 2026
- CenterPoint Houston – Pilot program, 2025
- Oncor – Pilot program, 2024 / 2025
- TNMP – Under consideration, Possible 2026
Joint Utilities’ Comments Regarding Alliance For Retail Markets’ And Texas Energy Association For Marketers’ Proposal On A Smart Thermostat Pilot Market Transformation Program (04/08/2024)
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