Finally!  Some good news about pricing and innovation….driven by deregulation, smart meters, and some interesting thinking from utilities in The Lone Star State.  Utilities in Texas are taking a page from the telecommunications pricing model and are offering incentives to customers to shift their usage to off-peak periods by giving customers free energy at night.  Of course this is relevant to customers who have operational flexibility– it seems to be targeted primarily at residential customers.  Nevertheless, it is a step in the right direction.

Now, the real challenge for customers evaluating the program is: how do I save?  What kind of behavior change results in meaningful savings?  How do I know I am saving money?  According to Greentech Media, TXU’s program, Energy Free Nights, has no charge for energy used from 10 p.m. to 6 a.m., and a rate of about 11 cents or 12 cents per kilowatt-hour the rest of the time.  It would be most useful if customers could view a forecast of their usage and cost, and know what kind of off-peak usage (and behaviors) resulted in the largest savings.  Take a look at the Greentech article here.