&gt; Grandmas don&#x27;t want to be adjusting their Air Conditioner on a second-by-second basis due to price fluctuations. Utilities effectively buffer this movement by aggregating demand and purchasing enough to meet that demand.<p>This is how Nest makes money. They serve as demand response. You sign up to get a credit on your electric bill, and when demand is extremely high, a utility can signal to Nest to reduce demand for 15 minute increments; its cheaper than firing up a peaking natural gas plant.<p><a href="https:&#x2F;&#x2F;nest.com&#x2F;energy-solutions&#x2F;#demand-response" rel="nofollow">https:&#x2F;&#x2F;nest.com&#x2F;energy-solutions&#x2F;#demand-response</a>