these different factors adding
to the cost of living. I’m John
Lawrence reporting.
>> All right. Now we’re talking
summer And you know, it’s been
pretty hot around here for
quite a while. We’ve been cranking up the AC for a while.
cranking up the AC for a while.
We know that gets put on
overdrive. We get into the dog
days and that puts a strain
on the power grid. Of course,
we’ve got higher electric bills
often times here to talk about the grid, the hike in prices
the grid, the hike in prices
and more is founder and former
president of directed energy
current president of Ohm
Connect Energy. That’s Don
Wally. Don, good morning. Thanks for being with us.
Thanks for being with us.
>> Good morning. It’s great to
be here.
>> I do want to talk connected.
Just read an article this
morning about it on linked in.
I think it’s fascinating with
the guys are trying to do there. But before we get into
there. But before we get into
that, can we talk a little bit
about this spike in utility
Is it worse this year compared
to others? Not just because of
the weather, but the inflation
and other things that we’re
facing. What do you think?
>> Oh, absolutely not where
we’re I’ve been in this market
as you point out that quite a
while, I’ve never seen
electricity rates that we’re seeing right now. I’m and I’m
seeing right now. I’m and I’m
afraid as we had, as you
mentioned, the dog days of
there’s going to be sticker
shock of homes will.
>> Is this this is something recent. Then you say you
recent. Then you say you
haven’t seen this maybe ever
have we hit like a a new high
in terms of pricing.
>> We have actually had perfect
example of the start of the year electricity for the
year electricity for the
average Texas consumers about
$0.10 a kilowatt And we’re
seeing rates as high as 2022 cents right now. So electricity
cents right now. So electricity
prices have doubled and it will
be interesting to see what
happens as we get to the
summer. And I think it’s a liability issue as it will be a
liability issue as it will be a
pressure on natural gas prices
which correlate directly into
electricity prices and taxes
are 165% year over
>> So price is one thing you did mention reliability.
did mention reliability.
I mean, what what is your take
on the grid? I feel like we’ve
been leased. The news headlines
last few years
has been, you know, astray strain on the grid during the
strain on the grid during the
summer and even in the winter.
What’s your take?
>> Well, if it is this trend, I
mean, this is where a Texas
speaking market because not surprisingly, it gets hot in
surprisingly, it gets hot in
the The February. 21 events,
the winter storm, Uri took
everyone by surprise. and I
think the result that the actor
from them has been better
account. The grid operator in
his work. He virtually as the
Public Utility Commission to
ensure that we have resources
in place so that we don’t have
blackouts as we roll into the summer. Now, was an
summer. Now, was an
unquestionably one of the
hottest we’ve ever seen.
And so it did cause some really I think there their stories
I think there their stories
about 6, 6, power units that
went there and play nicely on
Friday, the 13th of all days.
And that results in a real
price shock to the system.
But even with that, we didn’t have working moms. We’re going
have working moms. We’re going
to have to be aware when we use
powers roll into the summer
because of everyone has or a
season of guns and large
appliances going simultaneously on to say we could have some
on to say we could have some
problems.
>> With that in mind on what
what can we do to lower our
energy bills? I mean, it would
be nice if we could all just
sort rotate when we cook. But that’s not the that’s not
But that’s not the that’s not
possible. Then.
>> You know, we’ve got to
coordinate quite that. Well, I
think that, you know, many back
does not reduce your phone, but
we had to reduce your power
bill this summer. You’re going
to have to take action. Just
says people are rethinking
their travel plans because of
the price of gasoline. People
need to be thoughtful how much
electricity use. And I need to
turn the thermostat and 4, 5,
need to make sure that they’re
turning off lights. When you
leave rings. And as far as
reliable. And that’s when the
time of use matters because
it’s those the hot hours of the
afternoon from 5 o’clock to
8 apartments, sometimes it goes
down at the green really
struggles because the amount of
solar and wind and now makes up
for generations to come.
>> It really want to pay
attention to that. Whether you
know, doing laundry in the
times when the grizz not being
before we go because I didn’t
want to. I do want to talk
connect energy. The article I
was reading talks about essentially you guys paying
essentially you guys paying
your customers to try to do
better with energy savings.
Can you explain how it works?
>> Well, absolutely. Look at my favorite talking to banks since
favorite talking to banks since
were new approach to the
market. We do incentivize our
customers during those times
were just talking about when
the bridge is under strain. When prices are spiking, demand
When prices are spiking, demand
is spiking. We send out notices
forecast to meet on you, reduce
your consumption. We give them
the target based on their stored usage. At that time.
stored usage. At that time.
And when they reduce them or
more. And the beautiful thing
about it is even though I can’t
do anything to effectively
lower the cost of electricity
market, I can lower your bill because if you perform, we’re
because if you perform, we’re
seeing customers save as much
as 10% off their annual bill
and that’s meaningful. And in
these times.
>> And they have a nap or something that they can
something that they can
communicate and kind of get the
sense of that savings.
>> Absolutely. It’s a it’s a
it’s a great straight and back
in California are a parent
companies in California. as you know, they’ve got
as you know, they’ve got
rolling blackouts for years.
And so about 7 years ago, the
company was formed and they had
great success offering relief
to the grid in those times of
stress. And we’re trying to
bring that same philosophy and