Energy Smart Pricing Plan

CNT Energy launched the Energy Smart Pricing Plan (ESPP) in 2003 through a pioneering collaboration with ComEd, the electric utility serving northern Illinois. ESPP offered consumers the option of selecting a rate that used hourly, market-based prices for electricity rather than the set, average price used in the standard residential rate. The hourly rate gives customers access to low prices most hours of most days and it creates an incentive to use energy efficiently during peak demand hours when prices are higher. CNT Energy provided energy education and customized feedback tools to help program participants manage their electricity usage and costs.

The 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. ESPP participants saved an average of 10 percent on their electricity bills over the life of the program.  In addition, evaluations of ESPP have shown that participants respond to market-based prices and significantly change their behavior, reducing their electricity use by as much as 20 percent during periods of peak demand.

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. In the spring of 2006 the Illinois General Assembly passed and the governor signed legislation requiring major utilities to provide their residential customers with access to hourly, market-based electricity prices starting in 2007.

Today CNT Energy administers Power Smart Pricing, the real-time electricity pricing program for Ameren customers in central and southern Illinois.  CNT Energy has also been a consultant to ComEd’s Residential Real-Time Pricing Program while providing a local and vocal presence around the Chicagoland area.