Texas Retail Providers Propose REP-Driven Smart Thermostat Market Transformation Program Under TDUs' Efficiency Plans

April 1, 2024

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Reporting by Paul Ring • ring@energychoicematters.com

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The Alliance for Retail Markets and the Texas Energy Association for Marketers (collectively, the REP Coalition) proposed at the Texas PUC a template for a Smart Thermostat Pilot Market Transformation Program, under which REPs would be paid an incentive under the TDUs' energy efficiency program to provide smart thermostats to residential customers

"The REP Coalition believes this program would support the deployment of smart thermostats thereby increasing automated demand response capabilities in the ERCOT market through residential customer participation in demand response programs offered by REPs. As such, the Program could potentially be used to address Senate Bill 1699’s requirement that a program be adopted that would begin to facilitate the deployment of appliances and capable of being part of demand response products offered by REPs," the REPs said

"The Smart Thermostat Pilot Market Transformation Program (Program) provides incentives for programs offered by Retail Electric Providers (REPs) for the deployment and installation of smart thermostats for residential customers. Participants include residential customers and REPs. REPs may elect to enroll participants in a REP-administered demand response program, which is outside the scope of this program," the REPs said

REPs would reach out directly to residential customers to recruit participants. Program promotion would provide attribution to both the REP and TDU, the REPs said

REPs would receive a pre-established incentive from the participating TDU for the installation of the eligible smart thermostats within the TDU’s service area.

Only ENERGY STAR certified smart thermostats would eligible for inclusion in the Program. As a pilot program, TDUs may elect to limit the number of participating REPs and / or the total number of thermostats incentivized, the REPs said

All REPs would be eligible to participate

"REP Participants must verify installation of an eligible smart thermostat and submit sufficient supporting documentation to be entitled to receive the incentive payment," the REPs said

REPs may require customers to enroll in a separate REP-administered demand response program as a condition to receive a smart thermostat in this program.

"Installation technicians will confirm installation of smart thermostat by recording and submitting the thermostat serial number to the participating REP. REPs will demonstrate control capability to ensure the thermostats are installed and operational. The REP shall also submit sufficient documentation to support its incentive request," the REPs said

"Program savings are determined using the deemed energy efficiency savings calculations in the Texas Technical Reference Manual (TRM). Final Program payments are determined by established Program rules, based on the smart thermostat brands eligible for participation, and incentive cost-effectiveness," the REPs said

Interested REPs would complete an application with the participating TDU to participate in the Program.

REPs accepted into the Program would be permitted submit incentive requests on a rolling basis until Program funds are exhausted.

Incentive requests would be processed under the TDU’s standard operational processes.

"Upon verification of installation of the smart thermostat at the customer’s premise and submission of sufficient supporting documentation, REPs shall receive the incentive established by the TDU for the installation of the eligible smart thermostats. Incentives will be processed using TDU normal incentive payment procedures," the REPs said

Project 38578

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