Real-time pricing is a system that lets families opt out of paying the fixed cost their utility charges for power. Instead, they take a gamble and pay the actual price electricity costs on the open market. This fluctuates all the time but can be a lot less than the standard power rate being paid by everybody else.
The real-time pricing program for Ameren utilities AmerenIP, AmerenCIPS and AmerenCILCO is called Power Smart Pricing and, since its start in May, the program has generated average savings of 16 percent.
Customers who sign up can't opt out for a year and pay a $2.25 monthly fee to participate. But CNT Energy, a Chicago-based nonprofit organization that administers the Power Smart program for the utilities, said the 16 percent savings came even after the $2.25 was taken into account.
"We're very happy with the figures," said CNT spokeswoman Stephanie Folk. "We had larger savings than we were expecting. Our initial estimates had suggested 10 percent but, when we did a thorough analysis, the overall average was 16 percent."
Power Smart came about because Illinois lawmakers ordered power companies to offer their customers the option of paying the hourly price for electricity rather than fixed rates all the time. But participation has been relatively low, with statewide customer totals Folk said numbered in the "hundreds."
But she said that will change as word of the program spreads. "We're hoping to get participation up well into the thousands this year."
Power Smart involves having a new meter installed, but there is no extra charge for this. Customers opt to receive e-mail or phone alerts telling them when the price of electricity is spiking as well as price trend forecasts. Families then can turn down power-guzzling appliances -- such as air conditioners -- at crucial periods and put off other things, such as washing clothes, to times when rates are lower.
"It's like shopping for a bargain, and some people really enjoy that aspect of it," Folk said.
More consumers might get the urge to go bargain-hunting soon. Illinois power regulators have just signed off on a power purchase plan for Ameren utilities to cover 10 percent of their power needs, beginning in June. The electricity purchased came in higher than current rates, and bills will increase to cover the costs, but the utilities can't say yet by how much. However, they expect the figure will be relatively small.
Much bigger increases might be on the way, however. A $247 million power and gas rate case, due to be ruled on by regulators in the fall, could push up electricity rates by 8.5 percent and gas rates by 11.6 percent for AmerenIP customers.
Tony Reid can be reached at treid@herald-review.com or 421-7977.
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