Causam Enterprises Inc v. Potomac Electric Power Co

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Causam Enterprises, Inc. (Delaware)
  • Defendant: Potomac Electric Power Company (District of Columbia)
  • Plaintiff's Counsel: Bregman, Berbert, Schwartz & Gilday, LLC; Larson LLP
• Case Identification: 8:26-cv-02072, D. Md., 05/26/2026
• Venue Allegations: Venue is alleged to be proper in the District of Maryland because the Defendant maintains a regular and established place of business in the district and has committed the alleged acts of infringement within the district.
• Core Dispute: Plaintiff alleges that Defendant's residential and small business demand response programs infringe six patents related to systems and methods for actively managing an electric power grid.
• Technical Context: The technology relates to demand response systems that manage electricity consumption across a power grid, a key area for improving grid stability and managing energy costs during periods of peak demand.
• Key Procedural History: The complaint notes that on March 15, 2011, the Federal Energy Regulatory Commission (FERC) issued Order No. 745, establishing a compensation framework for demand response resources. It also alleges that in approximately December 2025, EnergyHub acquired the Resideo demand response platform, which is part of the accused system, signaling a market trend toward integrated management platforms.

Case Timeline

Date	Event
2003-01-01 (approx.)	Inventor Joseph Forbes allegedly foresaw the need for the patented systems.
2007-08-28	Earliest priority date for all Asserted Patents.
2011-01-01 (approx.)	Regulatory authorities allegedly began recognizing curtailment to address peak demand.
2011-03-15	FERC issued Order No. 745 regarding demand response compensation.
2018-10-30	U.S. Patent No. 10,116,134 issued.
2020-09-08	U.S. Patent No. 10,768,654 issued.
2022-03-01	U.S. Patent No. 11,262,779 issued.
2023-07-18	U.S. Patent No. 11,703,903 issued.
2024-10-22	U.S. Patent No. 12,124,285 issued.
2025-08-12	U.S. Patent No. 12,386,375 issued.
2025-12-01 (approx.)	EnergyHub allegedly acquired the Resideo Platform.
2026-05-26	Complaint filed.

II. Technology and Patent(s)-in-Suit Analysis

No probative visual evidence provided in complaint.

U.S. Patent No. 12,386,375 - "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid"

• Patent Identification: U.S. Patent No. 12,386,375, issued August 12, 2025 Compl. ¶50

The Invention Explained

• Problem Addressed: The electric grid faces instability from rising and fluctuating power demand, while traditional demand response programs that rely on voluntary curtailment by large industrial users are unpredictable and cannot be reliably counted as power reserves Compl. ¶¶12-13 Compl. ¶¶19-20
• The Patented Solution: The invention creates a system to manage demand response across a large number of residential and small business power-consuming devices, transforming demand curtailment into a predictable, verifiable, and centrally-controlled resource Compl. ¶¶22-23 A central server communicates with numerous client devices (e.g., smart thermostats) to adjust their settings, thereby reducing power consumption. The system then generates a "value" related to this reduction, which can be aggregated to calculate total energy savings for a load control event, effectively creating a quantifiable "reserve" from aggregated load curtailment Compl. ¶52 '134 Patent, col. 4:25-50
• Technical Importance: This technology allows for the creation of verifiable and compensable energy reserves from distributed, small-scale consumer devices, a critical step in integrating demand-side resources into grid management and stability operations Compl. ¶25 Compl. ¶30

Key Claims at a Glance

• The complaint asserts independent claim 8 Compl. ¶52
• Essential elements of claim 8 include:
  • A system with at least one server that receives a power control command.
  • At least one client device in network communication with the server.
  • The server issues a power control message to the client device, causing it to adjust a setting on a power-consuming device, resulting in a power reduction.
  • The server or the client device generates a "value" relating to the power reduction based on duty cycles and/or set points.
  • The server generates a total energy savings for the load control event based on the value.
• The complaint also asserts dependent claims 10, 11, 15, 17, 18, 19, and 20 Compl. ¶69

U.S. Patent No. 12,124,285 - "System and Methods for Actively Managing Electric Power Over an Electric Power Grid"

• Patent Identification: U.S. Patent No. 12,124,285, issued October 22, 2024 Compl. ¶53

The Invention Explained

• Problem Addressed: As with the '375 Patent, the invention addresses the need for a reliable method to manage grid stability by controlling and verifying energy curtailment during peak demand periods Compl. ¶¶12-13 Compl. ¶¶19-20
• The Patented Solution: The invention describes a system where an "active load client" receives a power control message and, based on preference information, commands a power-consuming device to turn off. A meter then generates an "actual value" for the power reduction, calculated according to government-approved methods (such as FERC Order 745), and communicates it to the server. The server aggregates these values into a tradable "Power Trade Block (PTB)" unit, which can be utilized as a "contingency reserve" for the grid Compl. ¶55 '134 Patent, col. 10:11-30
• Technical Importance: This patented system provides a specific framework for monetizing demand response by creating verifiable, regulation-compliant, and tradable energy units (PTBs) from aggregated consumer load reduction Compl. ¶30 Compl. ¶55

Key Claims at a Glance

• The complaint asserts independent claim 8 Compl. ¶55
• Essential elements of claim 8 include:
  • A system with at least one active load client communicating with a server and a power-consuming device, and at least one meter.
  • The active load client receives a power control message, and based on preference information, transmits a power reduction command to the power-consuming device.
  • The meter generates an "actual value" for the power reduction based on government-approved methods (e.g., FERC Order 745).
  • The meter communicates the actual value to the server via an advanced metering infrastructure.
  • The server aggregates the actual value into at least one Power Trade Block (PTB) unit.
  • The actual value is utilized as a contingency reserve.
• The complaint also asserts dependent claims 9, 12, 13, 16, 17, 18, and 19 Compl. ¶73

U.S. Patent No. 11,262,779 (Multi-Patent Capsule)

• Patent Identification: U.S. Patent No. 11,262,779, "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued March 1, 2022 Compl. ¶56
• Technology Synopsis: This patent describes a system where a server determines the amount of power available for reduction from a device based on historical load, estimations, or real-time measurement. The server then sends a control message that causes a power reduction, which is subsequently confirmed by measurement and verification transmitted back to the server Compl. ¶58
• Asserted Claims: Independent claim 1 and dependent claims 3, 6, 9, 11, and 12 Compl. ¶77
• Accused Features: The Accused System, which determines available load reduction and verifies the results of demand response events, is alleged to infringe Compl. ¶41 Compl. ¶45

U.S. Patent No. 11,703,903 (Multi-Patent Capsule)

• Patent Identification: U.S. Patent No. 11,703,903, "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued July 18, 2023 Compl. ¶59
• Technology Synopsis: This patent covers a system where a server sends a power control message to a client device, causing a power reduction. The system generates a "power supply value (PSV)" which is an "actual value" based on measured participation in a load control event, and the client device transmits an acknowledgement of participation in near real-time Compl. ¶61
• Asserted Claims: Independent claim 15 and dependent claims 16-22 Compl. ¶81
• Accused Features: The Accused System's process of issuing control commands, measuring participation in demand response events, and verifying the resulting energy savings is alleged to infringe Compl. ¶41 Compl. ¶45

U.S. Patent No. 10,116,134 (Multi-Patent Capsule)

• Patent Identification: U.S. Patent No. 10,116,134, "Systems and Methods for Determining and Utilizing Customer Energy Profiles for Load Control for Individual Structures, Devices, and Aggregation of Same," issued October 30, 2018 Compl. ¶62
• Technology Synopsis: This patent focuses on using customer energy profiles to manage load control events. A server aggregates these profiles, generates a candidate list of service points, and sends a load control event in response to an energy reduction request. The system then determines the energy savings as a "monetary supply equivalent value" Compl. ¶64
• Asserted Claims: Independent claim 19 and dependent claims 20-25 Compl. ¶85
• Accused Features: The Accused System's use of customer profiles and preferences to manage and target its demand response programs is alleged to infringe Compl. ¶45

U.S. Patent No. 10,768,654 (Multi-Patent Capsule)

• Patent Identification: U.S. Patent No. 10,768,654, "Method and Apparatus for Actively Managing Electric Power Supply for an Electric Power Grid," issued September 8, 2020 Compl. ¶65
• Technology Synopsis: This patent describes a server with a database that issues a power control event message in response to a power inquiry. The server generates a "supply equivalence value" for each device based on an actual, measured value of power reduction, which is treated as a supply for the grid Compl. ¶67
• Asserted Claims: Independent claim 8 and dependent claims 1, 2, 3, 5, 7, 9, 10, and 11 Compl. ¶89
• Accused Features: The Accused System's ability to determine and verify the amount of power reduction and treat it as a compensable reserve is alleged to infringe Compl. ¶41 Compl. ¶45

III. The Accused Instrumentality

Product Identification

• The "Accused System" consists of Defendant Pepco's demand response (DR) programs, branded as "Energy Wise Rewards" and "Flex Rewards" Compl. ¶39 Compl. ¶41

Functionality and Market Context

• The Accused System is a load control DR program for residential and small business customers Compl. ¶41 It utilizes a Distributed Energy Resources Management System (DERMS) platform, specifically the Resideo Connected Savings platform and/or the EnergyHub platform, to manage the DR programs Compl. ¶42 Compl. ¶45 Functionally, Pepco's servers use these platforms to send messages to smart thermostats and load control switches at customer premises to reduce power consumption during DR events Compl. ¶45 The system also obtains usage information and load data from these devices and from meters to measure and verify the energy saved, which is then used for settlement and to satisfy regulatory requirements for DR reserves Compl. ¶45 The system is used by Pepco to participate in the PJM wholesale electricity markets Compl. ¶47

IV. Analysis of Infringement Allegations

The complaint references claim chart exhibits that were not provided with the filing Compl. ¶69 Compl. ¶73 The following analysis is based on the narrative infringement theory in the complaint.

'375 Patent Infringement Allegations

Claim Element (from Independent Claim 8)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
A system for managing an electric power grid, comprising: at least one server...receives a power control command requiring a reduction of an amount of power consumed...	Pepco's servers, operating the Resideo and/or EnergyHub DERMS platforms, receive commands to initiate a DR event, which requires power reduction.	¶45	col. 4:25-30
at least one client device in network communication with the at least one server;	Smart thermostats and/or other load control switch devices installed at customer premises are in network communication with Pepco's servers.	¶45	col. 4:30-34
wherein the at least one server issues a power control message to the at least one client device in response to the power control command;	Pepco's servers send messages to the smart thermostats and/or load control switches to initiate a DR event.	¶45	col. 7:5-10
wherein the power control message causes the at least one client device to adjust a setting...[resulting] in a reduction of power consumed...;	The message instructs a smart thermostat to increase its set point or a load control switch to turn off an HVAC unit, reducing power consumption.	¶45	col. 7:10-18
wherein the at least one server or the at least one client device generates a value relating to a reduction in consumed power...;	The Accused System obtains load data from meters and thermostats to measure and quantify the energy saved, thereby generating a value related to the reduction.	¶45	col. 10:11-20
wherein the duty cycles and/or the set points of the at least one power consuming device is determined at the at least one client device or at the at least one server; and	The system uses set points on the smart thermostats, which are determined at the client device and/or managed by the server, to control the power reduction.	¶45	col. 11:1-13
wherein the at least one server generates a total energy savings for one of the at least one load control event based on the value...	Pepco's servers prepare the measured data on energy savings to provide to regulatory authorities for settlement and compensation.	¶45	col. 12:40-49

'285 Patent Infringement Allegations

Claim Element (from Independent Claim 8)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
...at least one active load client...for communication with a server and at least one power consuming device;	Smart thermostats and load control switches ("active load clients") at customer premises communicate with Pepco's servers and control HVAC units ("power consuming devices").	¶45	col. 4:30-34
...at least one meter configured to measure power consumption...;	The Accused System obtains load data from customer meters to measure energy savings during a DR event.	¶45	col. 9:18-24
wherein the at least one active load client receives a power control message from the server...includes a curtailment request...;	The smart devices receive messages from Pepco's servers instructing them to curtail power for a DR event.	¶45	col. 7:5-10
wherein the at least one active load client receives...preference information for the at least one power consuming device;	The Accused System obtains and retains customer profiles and preferences.	¶45	col. 6:1-6
wherein based on the preference information, the at least one active load client transmits at least one power reduction command...;	The smart thermostat, as the active load client, transmits a command to its associated HVAC unit to reduce power.	¶45	col. 4:51-60
wherein the at least one power reduction command causes the at least one power consuming device to turn off in near real time;	The server message causes the load control switch to turn off an HVAC compressor unit, or a thermostat to adjust its set point, causing the unit to turn off.	¶45	col. 4:51-60
wherein the at least one meter generates an actual value...based on government approved methods of calculation established under...FERC Order 745...;	The Accused System measures energy saved in compliance with regulatory requirements, such as those from FERC, to participate in wholesale markets.	¶¶45, 47	col. 10:11-20
wherein the at least one meter communicates the actual value with the server via an advanced metering infrastructure;	The Accused System obtains load data from meters, which function as part of an advanced metering infrastructure.	¶45	col. 9:18-24
wherein the server aggregates the actual value...into at least one Power Trade Block (PTB) unit able to be sold on an energy settlement marketplace; and	Pepco's servers prepare the measured savings data for settlement and compensation under regulatory and market rules.	¶45	col. 12:40-49
wherein the actual value is utilized as contingency reserves for a power utility and/or grid operator;	The DR programs implemented by the Accused System are used to participate in PJM's wholesale electricity markets as a demand response resource.	¶47	col. 10:25-30

Identified Points of Contention

• Scope Questions: The claims in the asserted patents frequently refer to a "client device" or "active load client" performing functions like generating values or transmitting commands. A potential point of dispute may be whether the accused smart thermostats and load switches, which are primarily consumer-grade devices, actually perform the specific processing and generation functions recited in the claims, or whether these functions are predominantly performed by the Defendant's back-end servers using raw data from the devices.
• Technical Questions: For the '285 Patent, a central question may be whether the "meter" itself "generates an actual value" as required by claim 8. The complaint alleges the Defendant's servers use data from meters to measure energy savings Compl. ¶45 This raises the question of whether the accused system's server-side calculation meets the claim limitation requiring the generation to occur at the meter.

V. Key Claim Terms for Construction

'375 Patent, Claim 8

• The Term: "generates a value relating to a reduction in consumed power"
• Context and Importance: The definition of this term is critical for determining the point of infringement. If "generates a value" is construed broadly to mean originating the raw data, infringement may be found at the client device. If it is construed narrowly to require calculation and verification, infringement may be found only where that specific processing occurs (e.g., at the server). Practitioners may focus on this term because its location-at the server, the client, or both-is an explicit element of the claim.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The use of the general term "value" could support a broad interpretation that includes any data point, such as a simple change in power state or a raw kWh reading, that "relates" to the reduction Compl. ¶52
  • Evidence for a Narrower Interpretation: The specifications of related patents in the family, such as the '134 Patent, repeatedly describe a specific, calculated "Power Supply Value (PSV)" that is an "actual value" confirmed by "measurement and verification" '134 Patent, col. 10:11-20 A party may argue that the term "value" in the '375 Patent should be construed in light of this more specific definition, requiring more than just raw data.

'285 Patent, Claim 8

• The Term: "meter generates an actual value"
• Context and Importance: This term's construction is central to the infringement analysis for the '285 Patent. Infringement may turn on whether the accused meters simply provide raw consumption data (from which a value is later calculated by the server) or if they perform the actual calculation to "generate" the value themselves.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: A party might argue that because the meter is the ultimate source of the measurement data from which the value is derived, it can be said to have "generated" it, even if a server performs the final calculation.
  • Evidence for a Narrower Interpretation: The '134 Patent, from the same family, depicts a system architecture where an "Active Load Client" contains a "smart meter interface" and significant processing capability, distinct from the server '134 Patent, FIG. 3 This may suggest an intent for the device at the service point (the meter or an associated client) to perform the generation step locally, rather than just providing raw data to a remote server.

VI. Other Allegations

• Indirect Infringement: The complaint's infringement counts exclusively cite 35 U.S.C. § 271(a) for direct infringement Compl. ¶69 Compl. ¶73 However, the factual allegations state that the Accused System involves Pepco making and using a system that includes controlling "power consuming devices within homes and small businesses" Compl. ¶41 and that customers may provide their own smart thermostats Compl. ¶46 These facts could potentially form the basis for a future claim of induced infringement, should Plaintiff allege Pepco instructs its customers to use their devices in an infringing manner.

VII. Analyst's Conclusion: Key Questions for the Case

• A core issue will be one of architectural mapping: Does the Defendant's system, which combines back-end DERMS platforms (Resideo/EnergyHub) with third-party consumer devices (e.g., smart thermostats), embody the specific "server" and "client" architecture of the patented systems? The case may turn on whether the accused consumer devices perform the local processing and generation functions required by certain claims, or if these actions occur exclusively on the server side, creating a potential mismatch with the claim language.
• A key evidentiary question will be one of functional location: Does the accused "meter," as required by claim 8 of the '285 patent, actually "generate an actual value," or does it merely provide raw data that is later processed by Defendant's servers to calculate that value? The court's interpretation of "generates" in this context-whether it means to originate data or to perform a calculation-will likely be a dispositive issue for infringement of at least the '285 patent.