Dive Brief:

• Demand response resources are on the rise in Texas, especially in the residential sector, and may be dampening the state's need for new power plants.
• TXU Energy offers free power during the night and weekends in exchange for higher rates during the day and Austin Energy is cutting demand using Nest thermostats.
• Texas Public Utilities Commission Commissioner Ken Anderson thinks demand response could help meet the state's needs instead of a major overhaul of the power markets.

Dive Insight:

The opportunities for demand response in Texas seem bright, and they could affect the state's debate over the need to change their market structure to spur power plant development.

“I think the question of the day is, who is going to tap into this multi-billion, or multi-hundred-billion dollar market?” said Michael Webber, deputy director of the Energy Institute at the University of Texas. “I bet it's going to be some clever entrepreneur at some start-up. I bet it's not going to be the existing utilities.”