Money for Nothing

DOUG LEWIN | Source: douglewin.com | Posted 05/22/2025

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Texas utilities want to be rewarded with lavish incentives for delivering less energy savings, at a time when Texas desperately needs to reduce energy waste for grid reliability

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Texas utilities are seeking substantial incentives for delivering lower energy savings, which poses a significant challenge for the state's energy reliability, especially in light of potential extreme weather events like Winter Storm Uri. Despite efforts to increase energy supply since the 2021 storm, the demand side has been largely neglected, leading to decreased energy savings from major utilities like Oncor. Over the past few years, Oncor has received millions in bonuses while failing to improve energy efficiency, raising concerns about the alignment of utility profits with consumer interests.

The current legislative environment, particularly Senate Bill 2994, threatens to further lower energy efficiency goals for utilities, allowing them to achieve less while still collecting higher bonuses. This misalignment of incentives encourages utilities to profit from energy waste rather than reducing it, which is detrimental to both consumers and grid reliability. To address these issues, there is a call for a shift in how energy efficiency programs are managed, advocating for a competitive demand-side market that prioritizes consumer benefits and effective waste reduction strategies.

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Money for Nothing

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