ERCOT pays big companies to conserve power, prompting some consumers to ask: Why not me?

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ERCOT pays big companies to conserve power, prompting some consumers to ask: Why not me?
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To reduce strain on the grid, ERCOT will pay big energy users like manufacturers and bitcoin miners to reduce the power they use. That frees up more electrons for others and keeps supply and demand balanced.

The Electric Reliability Council of Texas has asked people to voluntarily conserve energy six times over the last 11 days. ERCOT says the requests help reduce strain on the power grid when demand is high and supply is tight. But the frequency of these conservation calls has provoked frustration among some Texans.The idea of getting paid to not use electricity may seem novel. It’s not. Pay-to-conserve agreements are often called demand-response programs.

Doug Lewin, an energy consultant who writes the Texas Energy and Power Newsletter, says other grid operators have successful programs that compensate residential ratepayers to conserve as well. “Residential customers pay higher rates than big customers do outside of even those [demand response] opportunities. So it is inequitable,” he said. “There is every reason from a reliability and an affordability and fairness perspective to give those opportunities to residential consumers.”

In some parts of the state, residential consumers can participate in demand-response programs through their local utility. In Austin, for example, consumersfor using"smart thermostats" that lower their AC in response to high demand. Austin Energy says the system has a proven track record of reducing energy use, even though participants can still manually turn the AC back up.to support it. Your gift pays for everything you find on KUT.org. Thanks for donating today.

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