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Ameren 'real-time' program can cut energy costs

Posted October 09, 2007 11:00 pm

Adriana Colindres

Residential customers of AmerenCIPS, AmerenIP and AmerenCILCO now have the option of enrolling in a "real-time pricing" program, which would let them pay hourly, market-based prices for electricity instead of traditional flat rates.

The result could be lower electricity costs for some consumers, depending on how much power they use and when they use it.

The Ameren Illinois utilities unveiled the program, called Power Smart Pricing, on Tuesday.

"Bottom line is it is another tool, another option that I think provides our residential customers with the opportunity to take an active role in managing their electricity usage and what they're going to pay for their electricity," said Ameren spokesman Leigh Morris.

Ameren has contracted the services of CNT Energy - formerly known as Community Energy Cooperative - to administer Power Smart Pricing. For a four-year period ending in 2006, the same nonprofit organization ran a "real-time pricing" pilot program for Commonwealth Edison customers in northern Illinois.

Among the ComEd customers who signed up for that program was David Kolata, executive director of the Citizens Utility Board, a watchdog group.

"There are no guaranteed savings here, but the track record for this kind of program has been very good," Kolata said.

The program could work well for some consumers but is "certainly not for everyone," he said. "The key to real time pricing is to reduce your usage (of electricity) during those hours when prices go up."

Stephanie Folk, spokeswoman for CNT Energy, agreed, saying: "The more you can shift some of your activities ... the more you can reduce your costs with Power Smart Pricing."

That means taking such steps as raising the household thermostat a few degrees for part of the day so the air conditioner works less and running the dishwasher in the evening or overnight, she said.

Those actions also can benefit the environment by reducing the stress on generating plants and other electricity infrastructure, Folk said.

The potential for cost savings is greater in the summer because air conditioners usually are the largest consumers of energy in a home, Folk said. Also, she added, electricity prices tend to have higher daily peaks in the summer than at other times of the year.

CNT Energy will notify Power Smart Pricing customers ahead of time when high hourly prices are expected. The idea is that if customers know in advance, they can adjust their energy consumption accordingly.

The market-based price of electricity varies, but it often is lower than the price of electricity under the standard residential rate, Ameren said in a news release.

For instance, estimates of today's (Wednesday's) hourly electricity prices show the hourly cost of power will range from 1.897 cents per kilowatt-hour to 5.973 cents per kilowatt-hour. The lower amount covers the hour from 3 to 4 a.m., and the higher amount covers the hour from 7 to 8 p.m.

By way of comparison, AmerenCILCO's energy supply charge - which is separate from the charge for energy delivery - is 6.665 cents per kilowatt-hour in the summer for residential customers. During the rest of the year, the energy supply charge is 7.585 cents per kilowatt-hour for the first 800 kilowatt-hours used each month, then 5.844 cents per kwh for any additional kilowatt-hours.

The figures are the same for AmerenIP's residential customers.

The energy supply charge for residential customers of AmerenCIPS is 6.729 cents per kwh in the summer. For the rest of the year, it is 7.649 per kwh for the first 800 kilowatt-hours every month, then 5.908 per kwh for any additional electricity.

Further information about Power Smart Pricing, including enrollment materials, is available on the Web site www.powersmartpricing.org or by calling CNT Energy at (877) 655-6028.

Adriana Colindres can be reached at (217) 782-6292 or adriana.colindres@sj-r.com.

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