1/24/2016

A Nighttime Special: Free Electricity

Dallas promotes TXU's free nights plan. Credit Brandon Thibodeaux for The New York Times



DALLAS — In Texas, wind farms are generating so much energy that some utilities are giving power away.

Briana Lamb, an elementary school teacher, waits until 9 p.m. to run her washing machine and dishwasher. It costs her nothing until 6 a.m.

Kayleen Willard, a cosmetologist, unplugs appliances when she goes to work in the morning. By 9 p.m., she plugs them back in.

And Sherri Burks, business manager of a local law firm, keeps a yellow sticker on her house’s thermostat, a note to guests that says: “After 9 p.m. I don’t care what you do. You can party after 9.”

The women are just three of the thousands of TXU Energy customers who are at the vanguard of a bold attempt by the utility to change how people consume energy. TXU’s free overnight plan, which is coupled with slightly higher daytime rates, is one of dozens that more than 50 retail electricity companies in Texas have offered over the last three years.

It is possible because Texas has more wind power than any other state, accounting for roughly 10 percent of the state’s generation. Texas runs its own electricity grid that does not connect to the rest of the country, so the abundance of nightly wind power generated here must be consumed here.

Wind blows most strongly at night and the power it produces is inexpensive because of its abundance and federal tax breaks.

“That is a proverbial win-win for the utility and the customer,” said Omar Siddiqui, director of energy efficiency at the Electric Power Research Institute, a nonprofit industry group.

Similar experiments are underway elsewhere.

In Italy, customers of Enel, a leading utility, can receive incentives for keeping their electricity use below a predetermined level at times of highest demand.

In Maryland, Baltimore Gas & Electric allows customers to earn rebate credits on their bills for every kilowatt-hour less that they use during certain high-demand times

In Worcester, Mass., National Grid has installed a home energy management system in about 11,000 homes, connecting a range of devices like smart plugs, high-tech thermostats and digital picture frames that display the home’s energy use along with the photos.

But no major market has gone as far as Texas.

“Texas is head and shoulders above everybody else with really unique packages for the consumer,” said Soner Kanlier, a retail energy markets expert at DNV GL, a consulting firm based in Oslo, Norway.

Executives freely acknowledge that the range of residential electricity plans they offer is overwhelmingly a marketing tool.

 “We’re all trying to grow, and it’s a very competitive market,” said Manu Asthana, president of the residential division of Direct Energy, which offers various plans.

Commercials on television and radio, billboards on highways, and aggressive social media campaigns promise free cooking, cooling and gadget-playing at certain hours.

When customers ask for information on the phone or by Twitter post or Facebook comments, company agents go over their electricity needs and habits to find the right plan for them. Otherwise, the customer can easily be lost, power executives say,.

“Time of use” plans are growing in popularity in Texas, according to figures compiled by Ercot, the operator of the power grid and the manager of the deregulated market for 75 percent of the state.

In June 2013, 135,320 households enrolled in “time of use” plans in the Ercot region. That number climbed to 290,328 — out of more than six million residences — in September 2014. And although nearly 63,000 residences dropped out of the program over that time — in part because rates are typically higher under the plans at peak hours — Ercot officials believe that the number of households enrolled continues to grow.

Sherri Burks in Dallas loaded her dishwasher. 
Credit Brandon Thibodeaux for The New York Times