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Real-Time Electricity Pricing Attracts National Attention

Thursday, January 11th, 2007

Recently the Community Energy Cooperative has received a great deal of media attention for its role in bringing real-time electricity pricing to residential customers in Illinois. The four-year pilot Energy-Smart Pricing Plan demonstrated the potential benefits of real-time electricity pricing. Participants saved money, became more energy efficient, and reduced their electricity usage during peak hours. This year, real-time pricing will be open to households across Illinois, and media outlets across the nation are taking notice. Click on the links below to view highlights of the recent coverage.

To request more program information, including information on how to enroll, simply fill out an online interest form.

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Illinois General Assembly Authorizes Residential Real-Time Electricity Pricing: Pioneering Action Gives Consumers Choice and Opportunity to Reduce Costs

Monday, April 10th, 2006

By unanimous votes in both chambers, The Illinois General Assembly last week became the first legislative body in the U.S. to mandate that utilities provide residential consumers the option to access hourly, market-based electricity prices. The measure requires utilities to begin offering the real-time pricing option by January 1, 2007 as part of a program that would include customer education and support to assist consumers in managing their energy use and costs.

“We’re excited by this initiative, because it will give consumers a choice. This new option will benefit consumers and the environment, and it will help make the electricity system work better and cost less,” said Kathryn Tholin, manager of the Community Energy Cooperative, which has operated a pilot real-time pricing program in northern Illinois since 2003. “Our experience with the pilot program shows that, with the right kind of program and information, this kind of rate choice can enable consumers to significantly reduce their costs. It can help people understand their electricity use and become more energy efficient.”

The measure, Illinois Senate Bill 1705, was sponsored by Sen. Don Harmon of Oak Park and Rep. George Scully of Crete. During discussion, they emphasized the fact that Illinois and other states are facing rapidly rising energy prices, and it is important to find ways to help consumers manage their costs. Consumer advocates agree that this measure will benefit Illinois households.

“Real time pricing is an important choice for small consumers,” said David Kolata, Executive Director of the Citizens Utility Board, a statewide consumer organization. “Until now, only big customers had access to this kind of option. While it’s not the plan for everyone, it will give many households the opportunity to save money and create an incentive to reduce demand.”

The General Assembly’s action in passing Senate Bill 1705 recognized that managing and reducing peak demand has the potential to create system benefits, and that residential customers participating in real-time pricing programs can play an important role in creating those benefits.

The General Assembly specifically recognized that economic benefits of reducing demand include, “improvements to system reliability and power quality, reduction in wholesale market prices and price volatility, electric utility cost avoidance and reductions, [and] market power mitigation.” To the extent that customers reduce the peak time use of electricity-overall peak prices will decline, ultimately reducing costs for all customers. The legislation also calls for the Illinois Commerce Commission to assess potential system benefits and authorizes the commission to incorporate costs of the program in the overall rate base.

Under the provisions of the legislation, customers who select real-time pricing would pay an hourly rate based on the actual market price of electricity. This means that power would be much less expensive than the average rate most of the time when demand is low, and prices would rise during the periods when demand is high. Consumers can reduce their bills by using cheap off-peak power and reducing their use during peak hours when prices are higher. In addition, the measure passed by the General Assembly requires utilities to provide consumers who select the real-time rate with information and assistance to help them manage their energy use and costs.

This is similar to the structure of the Community Energy Cooperative’s pilot Energy-Smart Pricing Plan (ESPP), the nation’s first extensive residential real-time electricity pricing program. The Cooperative has operated the program in conjunction with ComEd since 2003. Households that signed up for the real-time rate receive price information, notifications when prices are high, and advice on managing costs. During the three years of the program, participants have saved an average of approximately 7 percent, and have reduced their peak electricity demand by as much as 20 percent. There are currently 1,200 households participating in the program.

Experts agree that even small reductions in demand during peak periods can result in lower prices and reduce the cost of service for everyone. Expansion of real-time pricing across Illinois will enable utilities and consumers to realize those benefits. Illinois Senate Bill 1705 is now awaiting the governor’s signature.

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Report Offers a Glimpse at the Future of Residential Electricity Pricing

Wednesday, May 4th, 2005

The Energy-Smart Pricing Plan Demonstrates a Promising Option for Consumers

The innovative Energy-Smart Pricing Plan is helping residential electricity customers reduce their bills, and the program could become the model for new consumer options in Illinois. On May 4, The Community Energy Cooperative, a Chicago-based nonprofit, released the evaluation of the second year of the pilot program. The evaluation confirmed the promising results found in the previous year’s report; customers saved money while managing their energy use in ways that benefit the electrical system and the environment.

The Community Energy Cooperative launched the Energy-Smart Pricing Plan (ESPP) in 2003 with the cooperation of ComEd, and more than 1,400 households in Northern Illinois are now enrolled in the plan. ESPP is the first program in the nation to offer residential customers real-time electricity pricing. Rather than pay the same price at all hours, participants pay a variable rate based on actual market prices. Consumers typically save money with ESPP even if they don’t change the way they use energy, and they can increase their savings by taking simple actions to use energy efficiently, particularly during peak hours. Kathryn Tholin, the Cooperative’s general manager, says ESPP has produced exciting results.

“This program gives consumers more options, and it lets people take greater control of their bills,” says Tholin. “So far, we’ve been very happy with the results. People are saving money, they’re changing the way they use energy in positive ways, and they’re happy with the program.”

The ESPP evaluation found that participants have also been extremely satisfied with the plan, saying it was easy and convenient to save money. Savings averaged 11 percent (compared to the standard residential rate) for the plan’s first two years.

ESPP participants also adjusted their energy use in ways that benefit the electrical system and the environment. They responded to hourly prices by conserving energy when prices went up. This response helps maintain reliability because high prices typically occur at times when the demand for electricity and strain on the electrical grid are greatest. Even a small reduction in demand during these peak hours can have big benefits. Finally, ESPP participants said it motivated them to become more energy efficient in general, not just during high price hours. This suggests the potential environmental benefits of offering consumers a real-time electricity pricing option-particularly an option that, like ESPP, includes consumer support and energy-efficiency information.

The second-year evaluation concludes that real-time pricing offers a viable option for residential electricity customers. With the Energy-Smart Pricing Plan, the Community Energy Cooperative has designed and implemented a program that saves consumers money, encourages energy efficiency, and benefits the electrical system and the environment. ESPP is currently in its third year as a pilot program, and legislators, regulators and utilities are looking to the plan as a model as they work to restructure Illinois electricity markets. Increasing the availability of this type of program could give the state’s residential customers greater choice in how they pay for electricity.

The complete evaluation of year two of the Energy-Smart Pricing Plan is available at www.energycooperative.org/reports.php.

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Kane County Residents Can Get Relief from High Winter Energy Bills

Tuesday, November 9th, 2004

As temperatures drop and heating bills rise, a new plan aims to ease the burden of winter energy bills by offering cheaper electricity

Winter is on the way, and with it, potentially heavy utilities bills. Fortunately, a new plan offers Kane County residents the chance to save money on their electricity bills. The Community Energy Cooperative is expanding the Energy-Smart Pricing Plan SM in Kane County, and the plan could help local ComEd customers lower their electricity bills by 10 to 15 percent. While the plan does not impact residents’ gas bills, lower electricity bills offer some relief for those looking to keep down their total energy expenses.

The Community Energy Cooperative is a non-profit membership organization helping consumers and communities obtain the information and services they need to control energy costs. The Cooperative launched the Energy-Smart Pricing Plan (ESPP) in January 2003. The plan gives participants the power to save money while they help protect the environment and maintain electrical reliability. It works by giving residential electricity customers incentives to conserve energy when electricity demand and stress on the electricity infrastructure are greatest.

With the standard ComEd residential rate, people pay the same price for electricity no matter when they use power. But when households sign up for ESPP, they get access to a special hourly electricity rate that reflects the market cost of electricity. Prices are low when electricity demand is low and can go up when demand rises. While hourly prices vary, ESPP participants save money because the average cost with ESPP is lower than with the standard rate. In addition, ESPP participants can increase their savings by conserving energy during the few high-demand, high-price hours, which usually occur on hot summer afternoons. The Cooperative provides easy access to price information, and notifies all participants in advance when prices are expected to be high-making it easy to adjust electricity use and increase savings

During 2003, the over 750 northern Illinois households participating in ESPP saved an average of 20 percent compared with what they would have paid on the standard ComEd residential rate, and participants said that saving money with ESPP was simple and convenient. The Cooperative estimates that this year typical ESPP participants can expect to reduce their electricity costs by approximately 10 to 15 percent, even if they do not change their energy use patterns. In addition, participants could save more by reducing their energy use during peak hours. Energy saving actions can include simple steps such as adjusting air conditioner settings or waiting to run the dishwasher in the evening after prices drop.

When ESPP participants conserve electricity during high price hours, they not only save money, they also reduce stress on the local the electricity transmission and distribution systems at times when demand is greatest. This helps to reduce or delay the need for new, costly electricity infrastructure, benefiting the local environment and saving communities money.

Information about participating in the Energy-Smart Pricing Plan is available at www.energycooperative.org/espp or by phone at (773) 269-4037. Participation is limited, so those interested in enrolling should contact the Cooperative immediately.

Additional Resources for Managing Home Energy Costs

The Energy-Smart Pricing Plan makes it easy to save money on electricity, but it is likely to be more difficult for consumers to control their gas bills this winter. For residential customers, the best solution to high gas bills is often to improve your home’s energy efficiency. Tips for winterizing your home are available in the autumn issue of the Community Energy Cooperative’s newsletter, online at www.energycooperative.org/pdf/ceq-2004-q3.pdf (page 5). In addition, the following organizations offer useful information on managing home energy costs.

General Energy-Saving Information
US Department of Energy
www.eere.energy.gov/consumerinfo/
Phone: (877) 337-3463

Energy Efficient Product Information
ENERGY STAR Program
www.energystar.gov/
Phone: (888) STAR-YES

Energy Assistance Programs
Illinois Office of Energy Assistance
www.liheapillinois.com
Phone: (800) 252-8643

For more information about the Community Energy Cooperative, contact Stephanie Folk, communications and outreach coordinator, at sfolk@energycooperative.org or (773) 269-4085.

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Energy-Smart Pricing Plan Helps Kane County Cut Electricity Costs

Thursday, September 2nd, 2004

This fall, the Community Energy Cooperative is expanding its innovative Energy-Smart Pricing Plan (ESPP) in Kane County. The plan is designed to help consumers reduce their electricity bills. It also tests an innovative strategy for improving the reliability of the electricity transmission and distribution systems, and reducing the need to build new infrastructure such as power lines, substations, and peaker plants as communities grow. The Energy-Smart Pricing Plan is open to ComEd residential customers in Kane County.

The Community Energy Cooperative is a non-profit membership organization helping consumers and communities obtain the information and services they need to control energy costs. The Cooperative launched the pilot Energy-Smart Pricing Plan in January 2003. ESPP is the nation’s first large-scale residential pricing program to use hourly, market-based electricity prices. It works by giving residential electricity customers incentives to conserve energy when electricity demand and stress on the electricity infrastructure are greatest.

When households sign up for ESPP, they get access to a special hourly electricity rate that reflects the market cost of electricity. Prices are low when electrical demand is low and can go up when demand rises. While hourly prices vary, the average rate with ESPP is still lower than the standard rate for ComEd residential customers. ESPP participants can increase their savings by conserving energy during the few high-demand, high-price hours, which usually occur on hot summer afternoons. Prices for each day are available through the Cooperative’s Web site and toll-free phone line. In addition, the Cooperative notifies all participants in advance when prices rise above 10 cents per kilowatt-hour.

During 2003, the over 750 Chicago-area households participating in ESPP saved an average of 20 percent compared with what they would have paid on the standard ComEd residential rate, and participants said that saving money with ESPP was simple and convenient. ESPP participant Jo Volkening of Burlington says she has been happy with the program.

“I’ve definitely saved money, and I like knowing when energy prices are high so I can make my own choice about conserving energy during peak hours,” she says. Volkening says she has recommended the program to friends.

The Cooperative estimates that this year typical ESPP participants can expect to reduce their electricity costs by approximately 10 to 15 percent, even if they do not change their energy use patterns. In addition, participants could save more by reducing their energy use during peak hours. For example, many participants have saved energy during high price hours by taking simple actions such as adjusting the thermostats on their air conditioners or waiting to do laundry in the evening after prices dropped.

ESPP is an experimental program that tests a strategy for saving people money, maintaining reliability, and protecting the environment. When ESPP participants conserve electricity during high price hours, they not only save money, they also reduce stress on the local the electricity transmission and distribution systems at times when demand is greatest. Even small reductions in demand during peak hours can help reduce the need for new infrastructure such as new power lines, substations, and peaker plants, providing benefits that are particularly relevant to rapidly expanding communities in Kane County. On a large scale, a program such as ESPP could even have the potential to reduce the need for new power plants. So far, the results of ESPP have been promising. Participants have saved money, and shown that they can and do respond to hourly prices.

Information about participating in the Energy-Smart Pricing Plan is available at www.energycooperative.org/espp or by phone at (773) 269-4037.

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ESPP Expands into Kane County

Friday, March 12th, 2004

The Community Energy Cooperative is launching an initiative to promote the Energy-Smart Pricing Plan into Kane County. With support from ComEd, the Cooperative will add up to 500 new ESPP participants in Kane County.

The Energy-Smart Pricing Plan, the nation’s first residential real-time pricing program for electricity is beginning its second year. The program commenced in January 2003 and had 750 participants in its first year. The program offers consumers access to hourly market energy prices which provides lower prices for most hours and the option to control their usage during the few high priced hours of the year.

In the first year, ESPP participants saved an average of 20% on their electricity bills, while at the same time significantly reducing their electricity use on summer days of peak demand.

“We know that electricity demand on hot summer days is what drives the need for new infrastructure – power lines, substations, etc.,” said Kathryn Tholin, General Manager of the Community Energy Cooperative. “Plus peak power is much more expensive. When some people reduce their use of peak power, everyone benefits through lower costs and reduced transmission and distribution needs. ESPP gives consumers a real incentive to reduce their energy use in a way that benefits the whole community.”

Kane County residents and local governments have recently been discussing the options for meeting the county’s growing energy demand, including the possible construction of new high-voltage power lines. “Programs like ESPP can’t answer these questions by themselves,” said Tholin. “But implementing energy efficiency programs and demand reduction programs like ESPP for residents and businesses in Kane County can have a large impact on overall energy use and the need for new investments in the long run. It’s a question of giving people the right incentives to use energy wisely.”

The Cooperative will be marketing the Energy-Smart Pricing Plan in Kane County during the spring and fall of 2004. Anyone interested in getting more information about this initiative should call the Cooperative at 773-486-7600, x 137

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Energy-Smart Pricing Plan Saves Local Participants 20% on Electric Bills, Demonstrates Benefits to Electric Grid and Environment

Friday, February 20th, 2004

Nobel Laureate Vernon Smith to Discuss First Year Program Results at Feb. 27 Forum

CHICAGO — The Community Energy Cooperative, a Chicago-based non-profit membership organization which brought the Energy-Smart Pricing Plan (ESPP) to reality, is pleased to announce the plan’s first-year results. The Cooperative has found that participants are saving an average of 20 percent on electric bills while managing their energy use in ways that benefit the electrical system and the environment.

ESPP is the nation’s first residential real-time pricing program for electricity. The program commenced in January 2003 and had 750 participants in its first year. The program offered consumers access to hourly market energy prices which provided them lower prices for most hours and the option to control their usage during the few high priced hours of the year.

“We didn’t know how people would respond to participating in ESPP. We’re delighted that the results show that people liked the program, found it easy to participate and took actions to better manage their energy usage and be more energy efficient.” says Kathryn Tholin, general manager of the Community Energy Cooperative.

While participants saved an average of over $12/month off their bills, the program’s benefits go beyond their individual savings. “These types of programs have multiple benefits, including lower capital and energy costs, fewer critical power spikes, consumer control over electricity prices, and the environmental benefits gained by empowering consumers to use electricity more wisely,” says Vernon Smith, 2002 Nobel Laureate in Economics.

Dr. Smith will be the featured speaker at a forum to be held in Chicago on February 27 for public interest groups, energy interest groups, regulators and legislators interested in exploring the results of ESPP’s inaugural year. The forum will examine how market-based pricing changes energy use patterns, how demand response by some consumers benefits all consumers, utilities and the public interest and how these strategies fit into the development of electricity markets in Illinois.

When: February 27, 2004
10:00-11:30 a.m.
Where: The Chicago Club
81 E. Van Buren
Who: Vernon Smith, 2002 Nobel Laureate in Economics, President, International Foundation for Research in Experimental Economics, and Professor of Economics, George Mason University Dan Violette, principal, Summit Blue Consulting

“ESPP is breaking new ground in the arena of residential demand response programs and is a promising demonstration of the actual benefits of real time pricing to energy providers and policymakers across the nation.” said Dan Violette, principal, Summit Blue Consulting which conducted an outside evaluation of the program for the Community Energy Cooperative.

The Community Energy Cooperative is a non-profit membership organization helping consumers and communities obtain the information and services they need to control energy costs, reduce energy use, and benefit from opportunities provided by the changing energy marketplace. In addition to running the Energy-Smart Pricing Plan, the Cooperative promotes energy efficiency and renewable energy technologies, provides technical services, and provides energy information to its members. Founded in 2000, the Cooperative has focused its programs in several targeted communities in Chicago and the surrounding area and currently has more than 8,000 individual and small business members. The Cooperative has received support from ComEd, the Illinois Department of Commerce and Economic Opportunity, and the City of Chicago Department of Environment.

# # #

Media Note: If you are interested in attending the forum or speaking with Kathryn Tholin, Community Energy Cooperative; Vernon Smith, 2002 Nobel Prize Laureate for Economics, or Dan Violette, Summit Blue Consulting, please contact Holly Jespersen at PCI at 312-558-1770 ext. 8247.

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Testimony of Kathryn Tholin, General Manager, Community Energy Cooperative to the Illinois Governor’s Special Task Force on the Condition and Future of Illinois Energy Infrastructure

Friday, December 5th, 2003

My name is Kathryn Tholin. I am the General Manager of the Community Energy Cooperative, an organization with more than 7,000 members that serves northeastern Illinois. Founded by the Center for Neighborhood Technology, our mission is to help Northern Illinois residents and business save money and take control of their energy future, and we develop new programs, approaches, and partnerships to achieve that goal.

Since our founding in 2000, we have offered a range of programs to reduce peak electricity demand including trade-in of inefficient air conditioners, cooperative efforts by commercial and industrial users to curtail load at times of system peak, and providing residential customers with access to market-based electricity prices and pricing incentives to reduce peak demand. We have worked in partnership with ComEd and have received support from the City of Chicago and the State of Illinois for our programs.

I appreciate the opportunity to be here today to talk about our perspectives on your goal to ensure that Illinois has a “safe, reliable comprehensive energy plan.” Most of the testimony in this task force to date has been focused on the big systems-transmission lines, grid structures. I want to shift the focus to an equally important topic. In order to have a smoothly functioning, efficient, and reliable system, it’s necessary to focus on how we use energy efficiently, not just on how we deliver it. And this is the aspect of the solution that gets lost when we think about reliability as only a large-scale problem of transmission systems.

In their Wall Street Journal op ed following the August 14 blackout, Nobel Laureate economist Vernon Smith and Northwestern University professor Lynne Kiesling wrote, ” A systematic rethinking of the power demand and supply system-not just transmission lines-is required to bring the energy industry in to the contemporary age. Eighty-five years of regulatory efforts have focused exclusively on supply-leaving on dusty shelves proposals to empower consumer demand, to help stabilize electric systems while creating a more flexible economic environment.”

It’s the end user that drives the needs of the system. And the way we use energy creates the demand on the system. We are putting more stress on the system because electricity demand is growing-and specifically because peak demand is growing, and growing faster than base demand.

In northern Illinois, the summer of 1999 taught us a lot about the power of peak electricity demand. Peak demand not only puts stress on the existing system, it determines how much new capacity must be created, both in our local distribution system and the regional and national transmission systems.

And, importantly, unlike money spent on new infrastructure, demand reduction provides a range of benefits for end users and the state as a whole. Consumers reduce their energy costs, the life of existing infrastructure is extended, we don’t need to build or run expensive peak power plants, and the environmental impacts of energy use are reduced.

One of the important benefits of demand reduction is that in the long run, actions by some to reduce the use of expensive peak power reduces the cost of power to all consumers. The high cost of producing and distributing power at peak demand periods (typically hot summer afternoons) can, for example, comprise 16% of the hours but more than 40% of the summer cost for an average residential consumer. This happens because the cost of generating the extra electricity we need on those days is much higher than the costs for the base load of electricity. When some consumers reduce their use of expensive peak power, the cost of generating electricity goes down for everyone.

Focusing only on the supply side will only exacerbate our problems in the long run. We can take an analogy from building highways-if you just expand the roads without giving people alternate ways to travel or incentives to get off the road, you still get a traffic jam at rush hour.

Energy efficiency and demand reduction are critical components of long term strategy. They aren’t the only answer, but they are necessary. And public policy, regulation and private interests should be aligned with this goal. Today they aren’t, and it’s no surprise that we are not achieving the demand reduction that is possible and necessary.

During the summer of 2001, when people believed it made a difference, Californians reduced their peak demand by 8-10%. Because it was treated as a crisis situation, and California didn’t invest in the technologies and strategies to maintain that demand reduction over the long term, that level of conservation and demand reduction wasn’t sustained.

But with a serious and sustained multifaceted campaign, we believe that Illinois can and should strive for an overall demand reduction of 10% over the next decade. To achieve this requires that we develop a policy goal and put programs and strategies in place to achieve it.

How would we do it? We believe it takes a combination of appropriate rate structures, access to information (for consumers and for the power industry), investments in effective technologies and public policies to make it happen.

More specifically:

  1. Rate structures. When people receive no price signals reflecting the actual cost of energy, we can’t be surprised when they don’t act. Some have said creating economically efficient pricing structures that create the right price signals for small consumers can’t be done. But today’s marketplace for energy has made it possible to do this, and we are demonstrating it right now. Nearly 1,000 Illinois households have chosen to pay an hourly market-based rate as part of the Energy-Smart Pricing Plan, a program managed by the Community Energy Cooperative and implemented through ComEd. Last summer these households cut peak demand on the hottest days of August by roughly 20%, and they have saved over 19% on their electrical bills. Combine this type of rate structure with effective information tools and consumers can act.
  2. Access to information. When consumers have information about their usage and appropriate price signals they can and do act to reduce their demand. Utilities also need information on consumer behavior that they can use to understand and plan appropriately for new infrastructure needs. Today’s infrastructure planners don’t consider the potentials for demand reduction, but with better information tools and analysis of effective demand reduction strategies, they can.
  3. Investment and technology. Efficient appliances and equipment and clean distributed generation can make a dramatic difference in energy demand. On a small scale, the Community Energy Cooperative found that it could reduce electricity demand by 0.7 kilowatts for each inefficient window air conditioner it replaced in a modest-income Chicago neighborhood, cutting air conditioning load in half. Power produced close to where it’s used by microturbines, combined heat and power plants, or renewable sources doesn’t need to move across transmission lines, and you have heard previous testimony about the potential impact of distributed generation. Energy efficient lighting reduces energy use both for lighting and for summer air conditioning, and saves money and energy year-round. Market-based pricing and access to information substantially improves the economics of these technologies and others, as do targeted incentives.
  4. Supportive public policy. Energy efficient building codes and appliance standards will dramatically reduce the energy needs of new construction. Reduced barriers to the adoption of distributed generation will enable significant expansion. The state can ensure that all customers have access to market-based pricing options for electricity, and can target and measure its existing resources for energy efficiency toward demand reduction goals.

So far we have been fortunate-we haven’t had a California-style meltdown, and we weren’t plunged into darkness on August 14th. But now we have the ability to get smarter for the long haul. As we move forward into the 21st century, Illinois can be a national leader in reducing the cost of energy and infrastructure and increasing the reliability of the system through reducing the demand for power.

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State Senator Steve Rauschenberger First to Sign Up for Innovative Electricity Pricing Plan

Thursday, January 30th, 2003

The Community Energy Cooperative, a Chicago-based non-profit membership organization, is bringing the Energy-Smart Pricing Plan (ESPP) to reality and expanding the number of benefits to its members. ESPP is the first program in the nation that gives residential electricity customers access to market-based electricity prices. Showcasing State Senator Steve Rauschenberger’s enrollment in the plan, Community Energy Cooperative staff and the Senator will be speaking about why ESPP is important, how it impacts energy deregulation on a national and local level, and what the economic value to the consumers may be.

Who:
State Senator Steve Rauschenberger
Rich Hirschberg – Elgin Director, Community Energy Cooperative
Larry Kotewa – Staff Engineer, Community Energy Cooperative
What:
Benefits of the “Energy-Smart Pricing Plan”
When:
Jan. 31, 2003, 2 pm
Where:
Elgin Community Energy Cooperative Office
Fire Barn #3
820 Dundee Ave.
Elgin, IL 60120
Response:
847-741-7810 (office)
email: rhirschberg@cnt.org
This is the first program of its kind in the nation and the first time consumers in Illinois can access market-based electricity pricing. ESPP will provide participating residential customers with a groundbreaking alternative electricity rate, which can save them about 10% annually on electricity bills. The Cooperative will provide all program participants with tools and information that will help them manage their electricity use so they can save money on their energy bills.

These tools and information include:

  • Day-ahead price information
  • Projected price patterns
  • Special alerts when energy prices are high
  • Some participants will also receive new programmable thermostats

The Cooperative is targeting areas where most of its 7,000 members reside: Pilsen, Little Village, Austin, Elgin, Park Forest, Evanston, and several far northwest side communities of Chicago. However, anyone who is a NEW or existing member of the Cooperative can apply for ESPP.

Space is limited: only 1,500 households will be able to participate in the program in 2003, the first year of a three-year pilot.

The Community Energy Cooperative is a non-profit membership organization helping consumers and communities obtain the information and services they need to control energy costs, reduce energy use, and benefit from opportunities provided by the changing energy marketplace. The Cooperative promotes energy efficiency and renewable energy technologies, provides technical services, manages appliance trade-in programs, and provides energy information to its members. Founded in 2000, the Cooperative has focused its programs in several targeted communities in Chicago and the surrounding area and currently has more than 7,000 individual and small business members. The Cooperative is supported by ComEd and the Illinois Department of Commerce and Community Affairs.

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Chicago-Area Consumers Can Save At Least 10 Percent On Their Electricity Bill

Tuesday, December 3rd, 2002

The Community Energy Cooperative Introduces a New Electricity Pricing Program

CHICAGO — For the first time, some residential electricity customers in the Chicago area can choose their electricity pricing. The Community Energy Cooperative, a Chicago based non-profit membership organization, announced today a pilot program called the Energy-Smart Pricing PlanSM (ESPP), which will provide participating residential customers in the Chicago area with a groundbreaking alternative electricity rate. ESPP can help participants save 10 percent or more on their energy bill.

This is the first time in Illinois that market-based electricity pricing will be available to residential consumers. The program utilizes an experimental rate offered by ComEd, which provides hourly energy prices to participating Cooperative members.

The Cooperative is targeting areas where most of its 7,000 members reside: Pilsen, Little Village, Austin, Elgin, Park Forest, Evanston and several far northwest side communities of Chicago. However, anyone who is a new or existing member of the Cooperative can apply for ESPP. Only 1,500 households will be able to participate in the program in 2003, the first year of a three-year pilot.

“ESPP is the first real choice that’s being offered to residential electricity customers in Illinois,” said Kathryn Tholin, general manager of the Community Energy Cooperative. “Under this program we expect participants to see benefits in the range of 10 percent, even with their existing use patterns, because off-peak prices are very low. People will be able to save significantly more if they reduce their use during higher-priced times, especially hot summer afternoons.”

“This represents a different way of thinking about your electricity use, and we have set up this program to make it easy for people to learn how to benefit,” Tholin said. “The Cooperative will provide straightforward information on participants’ energy use patterns and help them learn how to maximize their savings. We are partners with our members in making this program work for everyone.”

Residential Electric Choice Comes to Chicago

The Cooperative recently began offering ESPP, and some participants may begin taking service under the new rate as early as January 2003. Because the Cooperative will provide them with tools and information including day-ahead price information, projected price patterns and special alerts when energy prices are high, participants will be able to benefit from the low energy rates most of the time, and to choose their response in times of higher prices. Some participants will also receive new programmable thermostats. In addition, the Cooperative is providing its participants with a financial hedge to protect them if emergency conditions cause electricity prices to rise catastrophically.

Consumers must be members of the Community Energy Cooperative to participate in ESPP. The fee for membership is a one-time cost of $10. Residential customers interested in participating can contact the Cooperative at 1-877-655-6028 or apply online at www.energycooperative.org.

“If consumers adjust their energy use patterns while they are in this program, everybody wins,” said Scott Bernstein, president of the Center for Neighborhood Technology, which organized the Community Energy Cooperative in 2000. “People save real money and less energy is needed during high-cost hours. In the long run, programs like ESPP could reduce the need to build new power plants that are used only a few days a year, reduce the load on ComEd’s existing infrastructure, and improve the environment.”

The Illinois Department of Commerce and Economic Opportunity is assisting the pilot project by providing funds to support the installation of new equipment for participants, including electric meters and thermostats.

“We are pleased to be working with ComEd and the State of Illinois to offer this pioneering program,” said Kathryn Tholin. “Their involvement demonstrates their leadership and interest in exploring new mechanisms that could improve reliability, benefit the environment, and develop the competitive market for residential electricity consumers.”

The Community Energy Cooperative hopes the program will serve as a national model by delivering some of the promised benefits of energy deregulation to consumers and by providing participants with significant incentives to reduce peak electricity demand.

“Deregulation won’t work without giving residential consumers real choices. This program provides a choice that can save people money; not only those who participate in the program, but all customers, as well,” said Martin Cohen, executive director of the Citizens Utility Board, a statewide consumer organization. “We are eager to learn from this pilot program and find ways to expand it if it is successful.”

The Community Energy Cooperative is a non-profit membership organization helping consumers and communities obtain the information and services they need to control energy costs, reduce energy use, and benefit from opportunities provided by the changing energy marketplace. The Cooperative promotes energy efficiency and renewable energy technologies, provides technical services, manages appliance trade-in programs, and provides energy information to its members. Founded in 2000, the Cooperative has focused its programs in several targeted communities in Chicago and the surrounding area and currently has more than 7,000 individual and small business members. The Cooperative is supported by ComEd, the Illinois Department of Commerce and Economic Opportunity and the City of Chicago Department of Environment.

The Energy-Smart Pricing Plan is a service offered solely by the Community Energy Cooperative. The Cooperative’s Energy-Smart Pricing Plan is supported by an experimental rate filed by ComEd and approved by the Illinois Commerce Commission. Additional funding for portions of the Plan is provided by the Illinois Department of Commerce and Economic Opportunity. The Community Energy Cooperative is, however, fully responsible for the Energy-Smart Pricing Plan, including education, outreach, responding to customer questions concerning the Plan, and any price protection the Plan offers. The Cooperative is not acting on behalf of ComEd or the Illinois Department of Commerce and Economic Opportunity.

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