You might’ve heard about a recent proposal from California governor candidate Xavier Becerra—he wants to give millions of households up to two hours of free electricity per day (and save them roughly $1K/year).
Meanwhile, Texas ratepayers already have this option: Direct Energy began offering its Free Days Plan to Lone Star State customers in April.
How it works: Direct Energy customers with smart meters qualify for free power each day from 9 a.m. to 5 p.m. Outside of those times, they pay a base charge and fixed rate. “It is particularly beneficial during the summer when Texas is at its hottest and electricity bills spike,” a Direct Energy representative told us over email.
Two birds, one stone: Free daytime hours can encourage consumption when solar is plentiful and ease grid strain at night.
We got the POV on the plan from Mark Eddings, Direct Energy’s VP of Operations:
(This interview has been condensed and edited for clarity.)
Why did Direct Energy launch the Free Days Plan?
Direct Energy developed it in response to evolving customer lifestyles and energy usage patterns. While free nights and free weekends plans have long been available in Texas, they may not benefit customers who use most of their electricity during the day.
As demand rises in Texas, why is this plan important for customers and the grid?
It provides customers with another option to align their electricity plan with how they use energy. For customers who spend more time at home during the day (including retirees and night-shift and remote workers), the plan can offer meaningful value through free energy during designated daytime hours and predictable pricing during evening and nighttime periods.
From an industry perspective, time-of-use products help expand the range of options available to consumers and better align pricing structures with evolving energy usage patterns.
Let’s zoom out: What makes the Texas market unique right now?
Texas continues to be one of the most innovative competitive electricity markets in the country, and customers increasingly expect products tailored to their individual lifestyles and energy needs. We are seeing growing interest in products that move beyond a traditional fixed-rate value proposition, and instead help customers optimize when they use electricity.