Dynamic pricing programs using real-time or day-ahead hourly electricity rates offer residential customers in Illinois innovative choices in how they pay for power. Energy efficiency advocates and leading economists have long recognized that residential electricity rates that reflect the actual market cost of electricity are essential to ensuring consumer benefits from a nationwide expansion of the smart grid. Market-based rates allow customers to adopt more energy efficient behaviors, and provide consumers with tools to save money by using cheaper, off-peak power.
CNT Energy paved the way for the nation’s first residential, market-based, hourly electricity pricing program in 2003 with the Energy-Smart Pricing Plan. Consumers got the option of paying hourly, market-based prices for electricity rather than the set, average price used in the standard residential rate. This innovate pilot program demonstrated that a well designed real-time pricing program can be an effective tool for reducing strain on electricity infrastructure, encouraging energy efficiency, and saving consumers money. Utilities, legislators, and regulators took notice, and real-time pricing became available on a large scale in Illinois starting in 2007.
On June 30, 2006, former Illinois Governor Rod Blagojevich signed legislation requiring major utilities to provide residential consumers with access to hourly, market-based electricity prices. CNT Energy now administers Ameren Illinois Utilities’ Power Smart Pricing program which has passed $1 million dollars in energy cost savings for its participants. In Northern Illinois, CNT Energy provides consultation as well as a local presence for their Residential Real-Time Pricing program.
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Power Smart Pricing is a day ahead hourly pricing program administered by CNT Energy for the Ameren Illinois Utilities. All residental customers in Ameren’s service area throughout Central and Southern Illinois are eligible. The program began in January 2007 and has become one of the largest programs of its kind in the country. |
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ComEd’s Residential Real-Time Pricing program is a real-time electricity pricing program for ComEd residential customers located in their service area of Northeastern Illinois. This program emerged after the successful completion of the pilot program called the Energy-Smart Pricing Plan which was developed and administered by CNT Energy. Currently CNT Energy acts as program administrator for ComEd’s Residential Real-Time Pricing Program |
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The Energy-Smart Pricing Plan pilot program demonstrated that hourly pricing can save customers money, encourage energy efficiency, and reduce strain on the electricity infrastructure during hours when demand is highest. The success of the Energy-Smart Pricing Plan helped to pave the way toward opening up this new option for residential electricity consumers throughout Illinois. |
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A built-out smart grid allows utilities as well as their residential, commercial, and industrial customers access to a more efficient and dynamic system. As with any shift to new technology, skepticism will often mark the transition. CNT Energy has the unique experience of partnering with consumer groups, municipal governments, and utilities to act as an independent body to ensure the mutual benefits for all. |
