Episode 137 | Customer Control | OhmConnect Energy
This year marks the 20th anniversary of deregulation in Texas. For two decades, customers have had the “Power to Choose” their Retail Electric Providers (REPs). Though customers have more than a few options (my old home in Fort Worth turned up 102 offerings), my guest says the promise of deregulation has not yet been realized.
Oakland-based OhmConnect Energy began as a software company, delivering demand response metrics for customers. In 2021, they tapped my guest, Don Whaley, to preside over a REP arm, which would give customers unique control over their power usage. Don served as president of Direct Energy during the early days of deregulation, and is intimately familiar with the market—and its limitations.
Don says deregulation held the promise of innovation, if not always the cheapest power. “In the 20 years that this market has been open, no one has delivered on that promise,” he says.
He says OhmConnect combines its real-time demand response data with a customer-friendly app. Customers are asked if they are willing to cut power in their homes below typical behavior. These customers are rewarded with points called “watts,” which can be redeemed for rewards, charitable donations, or Amazon gift cards.
“They’ve gamified it,” says Don of the app. “They’ve made energy engaging.”
The energy savings may sound cute to customers, but the pressure on the grid can be enormous. Don says refrigerators alone in Texas account for about 1.8 gigawatts of electricity. Manipulating that load on the grid could eliminate the need for several power plants to have to operate during peak times.
During the interview, I asked Don about his opinions on nuclear power in Texas, last year’s winter storm, and even the 2007 TXU buyout (see Episode 10). Don was a Vice President at TXU for a few years.
After two decades in the retail energy sector, Don believes OhmConnect’s offering may finally deliver on deregulation’s promise by introducing the final piece.
“In order for a smart grid to be smart, there has to be interactivity,” he says. That—and a customer-friendly app!
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