TXU Launching Critical Peak Rebate Program

TXU Energy is now offering large commercial and industrial customers a voluntary critical peak rebate program.

Called Reduction Rewards, the program allows customers to voluntarily curtail usage in response to peak events as called by TXU via email.

Customers are paid per kWh of load reduction versus a baseline, with the rate per kWh varying based on market conditions. Customers must reduce their demand by 2 percent or more to earn the credit. Customers will be informed of the rate for a specific peak event ahead of time.

At this time, TXU is offering the program to non-residential customers, and is focusing the program on customers with demands of about 1 MW or more, though there is some flexibility and no definitive demand eligibility threshold.

TXU is not, at this time, offering a critical peak rebate program to residential customers; however, it is something TXU is looking at. Response to the critical peak rebate program among C&I customers will help inform any decision to expand the program to residential customers.

For residential customers, TXU is instead focusing its load shaping efforts on flattening customers' usage and spikes through time-based rates, including its Free Nights electricity plan and Free Weekends electricity plan, the latter of which was first reported by EnergyChoiceMatters.com earlier this month.

As expected, TXU said that the Reduction Rewards program was developed in response to the new higher system wide offer cap in ERCOT, and expected volatility.

C&I customers must have an interval meter or provisioned AMS meter to participate in the TXU critical peak rebate program