Opower

Opower
Name	Opower
Type	Subsidiary
Industry	Software
Fate	Acquired by Oracle Corporation in 2016
Founded	2007
Founders	Dan Yates, Alex Laskey, Charles H. Segar
Headquarters	Arlington County, Virginia
Key people	Dan Yates, Alex Laskey
Products	Behavioral energy software, customer engagement, analytics
Parent	Oracle Corporation

Opower Opower was a private company founded in 2007 that developed cloud-based software and customer engagement platforms for electric and gas utilities, focusing on energy efficiency and demand response. It combined behavioral science, data analytics, and utility customer service practices to deliver personalized communications and energy reports, partnering with numerous investor-owned and municipal utilities across the United States, United Kingdom, Australia, and other markets. Opower's work intersected with organizations and policies in the energy sector, connecting stakeholders from regulatory agencies to trade associations.

History

Opower was established by Dan Yates, Alex Laskey, and Charles H. Segar following work at Harvard University and consulting with stakeholders in the energy sector. Early pilots engaged utilities such as Dominion Energy, Southern Company, Pacific Gas and Electric Company, Progress Energy, and Duke Energy to test behavioral interventions informed by research from Behavioral Insights Team and academics at Harvard Kennedy School, Stanford University, and Yale University. The company received venture funding from investors including Kleiner Perkins, Accel Partners, Index Ventures, and Shasta Ventures, and attracted attention from policy institutions like the Federal Energy Regulatory Commission and the Department of Energy. Opower expanded internationally, signing contracts with utilities such as British Gas, E.ON, Iberdrola, and 2degrees (New Zealand), while engaging with nonprofit organizations including the Rocky Mountain Institute and advocacy groups like Environmental Defense Fund. The company filed for an initial public offering and listed on the New York Stock Exchange before being acquired.

Products and Services

Opower marketed a suite of customer engagement products including home energy reports, web portals, mobile applications, text messaging services, and automated outreach for billing and outage communications. Utilities such as Consolidated Edison, Austin Energy, PG&E Corporation, National Grid (UK), and EnergyAustralia integrated these services into customer care platforms alongside systems from vendors like Oracle Utilities, SAP, Siemens, and Schneider Electric (company). The product lineup targeted residential and small commercial customers, enabling utilities to deliver personalized recommendations alongside programs administered by agencies such as the California Public Utilities Commission, New York State Public Service Commission, and Ofgem. Services extended to demand response orchestration working with program administrators like PJM Interconnection, Independent Electricity System Operator and ERCOT.

Technology and Data Analytics

Opower's platform combined cloud computing architectures with algorithms developed from datasets supplied by utilities, smart meter projects funded under initiatives like the American Recovery and Reinvestment Act of 2009, and pilot evaluations similar to trials at Pacific Northwest National Laboratory and Lawrence Berkeley National Laboratory. Analytical approaches drew on methods from data science teams at companies such as Google, Microsoft, Amazon (company), and academic research from Massachusetts Institute of Technology, Carnegie Mellon University, and University of California, Berkeley. The stack integrated with smart meter deployments by vendors including Itron, Landis+Gyr, and Sensus, and interoperated with metering standards endorsed by North American Electric Reliability Corporation and protocols used in Advanced Metering Infrastructure programs. Machine learning models estimated baseline consumption, predicted load, and segmented customers, while A/B testing and randomized controlled trials followed methodologies advocated by economists at National Bureau of Economic Research and statisticians associated with Harvard Business School.

Business Model and Partnerships

Opower sold software-as-a-service subscriptions and performance-based contracts to utilities, aligning incentives with conservation targets and regulatory performance metrics set by commissions like the California Energy Commission. The company formed strategic alliances with system integrators and vendors including Accenture, IBM, Honeywell, and Capgemini, and partnered with energy services companies such as Schneider Electric and Siemens Energy. Collaborative programs involved non-profit partners like American Council for an Energy-Efficient Economy and market platforms operated by regional entities such as ISO New England and Midcontinent Independent System Operator. Financial backers encompassed venture capital firms and later corporate stakeholders culminating in acquisition by a major enterprise software firm.

Regulatory and Privacy Issues

Opower's access to granular consumption data raised regulatory scrutiny involving privacy frameworks and data protection laws like state-level statutes, guidance from agencies such as the Federal Communications Commission for communications and the Department of Energy for grid data practices, and international standards including General Data Protection Regulation where applicable. Utilities and consumer advocates, including groups like Consumers Union and Public Citizen, debated disclosure rules administered by public utility commissions and privacy offices in municipalities such as Los Angeles and Chicago. Data sharing agreements had to align with policies from entities like the National Institute of Standards and Technology and compliance requirements relevant to vendors such as Oracle Corporation and Salesforce.

Reception and Impact

Researchers at institutions like University of Pennsylvania, Duke University, and Cornell University evaluated Opower-style interventions, reporting measurable reductions in residential energy use comparable to programs run by Energy Trust of Oregon and Bonneville Power Administration. The approach influenced utility marketing practices and regulatory incentive structures in states governed by commissions such as the New Jersey Board of Public Utilities and advocacy by organizations like American Public Power Association. Critics referenced concerns raised by privacy advocates at Electronic Frontier Foundation and consumer groups including AARP about data handling and targeted messaging, while proponents cited endorsements from think tanks like Brookings Institution and reports from the International Energy Agency. Opower's legacy informed later efforts by digital platforms including Google Nest and companies in the smart thermostat market such as Ecobee.

Acquisition by Oracle

In 2016, Opower was acquired by Oracle Corporation and integrated into Oracle's utilities and cloud offerings alongside other acquisitions and products such as Oracle Utilities Customer Cloud Service. The acquisition connected Opower's customer engagement and analytics capabilities with Oracle's enterprise suite used by utilities, utilities' meter data management systems, and regulatory reporting tools employed by entities like Xcel Energy and American Electric Power. Post-acquisition, components of the platform have been referenced in corporate filings and industry discussions involving International Electrotechnical Commission standards and enterprise deployments across utility customers globally.

Category:Energy software companies Category:Companies established in 2007 Category:Oracle acquisitions