Customers, the secret wealth of the grid, now open for the FCC's exploitation.
In a significant move for the energy sector, the Federal Communications Commission (FCC) issued a ruling in June 2022 that has positively impacted utilities' ability to implement demand response programs. This ruling has clarified and enabled better use of communication technologies for grid management and energy transition.
The new FCC guidance allows utilities and third-party providers to more effectively use telecommunications for demand response. This flexibility supports grid stability and facilitates the integration of renewable energy sources, which are critical for the energy transition.
Demand response programs, where electricity use is adjusted in response to supply conditions, are vital for managing increasing grid demands and promoting energy efficiency. The FCC ruling removed regulatory barriers on the use of certain communication tools that utilities rely on to send signals or control devices remotely, enhancing their ability to implement these programs.
For instance, utilities working with large energy consumers, such as data centers, can implement demand response models that reduce or shift power use dynamically, improving operational efficiency and reducing costs. This ability is especially important as electrification and new technologies place escalating demands on the grid, and as efforts increase to reduce reliance on fossil fuels and integrate renewable resources.
The FCC ruling in 2025 further eliminated legal uncertainty around the Telephone Consumer Protection Act (TCPA) that had made utilities cautious about using automated texts and calls for demand response programs. This has paved the way for utilities to treat demand response alerts as standard service messages, reaching all customers by default, with communications that trigger fast action, unless they opt out.
Evidence of the success of these programs can be seen in various utilities' achievements. Austin Energy, for example, achieved up to 2.5 MW in hourly reductions through a layered outreach strategy, including IVR, text, and email. IVR alone delivered 1.15% peak savings, and IVR combined with email reached 1%. Similarly, FirstEnergy Pennsylvania saved more than $1.8 million in one summer through demand response.
Baltimore Gas & Electric (BGE) is another utility that has leveraged the FCC's ruling. In 2025, they used Oracle-powered messaging to coordinate a four-hour demand response event, successfully shedding approximately 150 MW from their system during peak demand.
However, the U.S. electric grid is facing a convergence of stressors, including rapid electricity demand growth, electric vehicle adoption, data center growth, and the reshoring of US manufacturing. These strains are already pushing up electricity prices, with a 4.5 percent year-over-year increase in 2024, nearly twice the rate of overall inflation.
Despite these challenges, the potential benefits of effective demand response programs are clear. They can flatten load curves, lower costs, and prevent reliability issues by encouraging customers to reduce or shift usage during high-demand periods. As such, utilities should integrate messaging into their everyday operations and treat customers as partners in building a more resilient grid.
In conclusion, the FCC's ruling has facilitated utilities' deployment of demand response programs by clarifying communication regulations, thereby strengthening grid management capabilities essential for the ongoing energy transition. This development is a significant step towards a more sustainable and efficient energy future.
- The FCC ruling of 2025 has opened up opportunities for utilities to use automated texts and calls more effectively in demand response programs, potentially lowering costs and improving operational efficiency, especially in the context of increasing grid demands and the integration of renewable energy sources.
- In the realm of general-news and finance, the development of demand response programs and the FCC's support for their deployment through regulation clarification is poised to have a profound impact on the sports sector, as it could lead to more efficient management of electricity use in stadiums and sports arenas, reducing costs and lowering environmental impact.
