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Texas TDUs State Intent To Limit Retail Provider Participation In Proposed Pilot Smart Thermostat Program

April 8, 2024

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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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

See background on the proposed REP-provided smart thermostat program here

The TDUs said, "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 TDUs further said, "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," the TDUs said

Notably, the TDUs said, "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," the TDUs said

The TDUs further said, "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 said that they support 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

Project 38578

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