“The computers in these boxes are making decisions with regards to energy based on the value of energy at that point in time and the historical consumption of that residence,” Lewis said, adding that part of the company’s management team has a background in software and communications.

Electricity tariffs that change over the course of the day to reflect fluctuations in demand are still not commonplace for U.S. consumers. However, the Energy Policy Act of 2005 (click for PDF) calls on state utility regulatory bodies to explore “time-based metering and communications” next year, which would allow customers to participate in “time-based pricing rate schedules and other demand response programs.”

Pumping power onto the grid from your basement

Clearly this adds meaning to the idea of flowing power to the peers