General Questions about PSP

Q: What is Power Smart Pricing?

Power Smart Pricing is an hourly electricity pricing program for residential customers served by the Ameren Illinois Utilities (AmerenCILCO, AmerenCIPS and AmerenIP). This program uses hourly electricity prices that are based on actual market prices. This means that the price you pay for electricity will vary hour by hour. The Ameren Illinois Utilities do not mark up the price of power; you simply pay the market price. Since Power Smart Pricing launched in early 2007, participants have saved an average of 20 percent compared with what they would have paid on the standard fixed rate (based on billing results for December 2007 through December 2009).

Q: How does the program work?

Power Smart Pricing uses “day-ahead” prices, meaning the price for each hour of the day is set the evening in advance. Your bill is calculated using the hourly, day-ahead market prices and your corresponding hourly usage. This means you could benefit from low market prices during most hours of the day and most times of the year. You can manage your electricity costs by using energy wisely during hours when prices are higher.

Q: How much can I save with Power Smart Pricing?

Individual savings will vary depending on how and when you use the most electricity. Your total bills will be based on how much electricity you use, when you use it, and hourly rates. The more you can take action to conserve electricity when prices are high, the more you can save with hourly pricing. Since Power Smart Pricing launched in early 2007, participants have saved an average of 20 percent compared with what they would have paid on the standard fixed rate (based on billing results for December 2007 through December 2009). Similar savings are possible in the future; however, electricity markets can change and future performance levels cannot be guaranteed.

Q: How do I sign up for Power Smart Pricing?

There are several ways to sign up for Power Smart Pricing:

Complete the online enrollment form. You will need your account number and meter number. Both can be found on your electricity bill.
Print an enrollment form and mail the competed form to: Power Smart Pricing, CNT Energy, 2125 W. North Ave., Chicago, IL 60647.
Contact CNT Energy at info@cntenergy.org or 1-877-655-6028 and ask that an enrollment form be mailed to you at an address you provide.

Q: Once I sign up for Power Smart Pricing, how soon will I be on the rate?

You will be switched to the hourly rate after one to two billing periods. First, Ameren will install a new interval meter. After your new meter is installed, you will be switched to hourly electricity pricing at the beginning of the next billing period. You will receive an e-mail message or letter from CNT Energy letting you know when you are scheduled to go on the hourly rate.

Q: Will I have to do a lot of work in order to save money with Power Smart Pricing?

No, for most people, saving with Power Smart Pricing is quick and easy. Electricity prices tend to follow fairly predictable patterns. You can check prices online, by phone, or simply keep the typical price pattern in mind in deciding how and when to use electricity. CNT Energy will send you seasonal updates with information about adjusting to summer and winter price patterns. To make it even easier, you’ll also receive high price alerts by e-mail or phone, letting you know in advance when prices will be high.

Q: Is it necessary to check hourly prices every day to control my energy costs?

No. Hourly, market-based electricity prices are driven largely by demand for electricity and tend to follow fairly predictable patterns (the patterns are described in the section of the Program Guide on price patterns and savings strategies). Simply keep the patterns in mind in deciding how and when to use electricity. In addition, you will receive high price alerts by phone or e-mail, letting you know in advance when prices will be high.

Q: How do I know when electricity prices will be high?

You can check hourly prices any time at www.powersmartpricing.org or by calling 1-877-655-6028. Prices for each day are set the evening in advance, and are available after 6 p.m. In addition, CNT Energy will contact you between 5 p.m. and 10 p.m. by e-mail or phone (your choice) if prices will be higher than 13 cents per kWh for any number of hours during the following day. This is most likely to occur on hot summer days, but could occur on any day of the year.

Q: Is there a fee to join the program?

Customers who select Power Smart Pricing will be charged a monthly fee of $2.25 to participate in the program. This fee will be included in your electricity bill. For most customers, savings from the Power Smart Pricing are expected to more than offset this modest monthly charge.since Power Smart Pricing launched in early 2007, participants have saved an average of 20 percent compared with what they would have paid on the standard fixed rate (based on billing results for December 2007 through December 2009).

Q: How long do I have to stay in the program?

To participate in this program, you must agree to remain on the hourly, market-based electricity rate for a minimum of 12 consecutive monthly billing periods. Because price patterns vary from season to season, staying on the program for a full year gives customers the best opportunity to take advantage of hourly pricing. After 12 billing periods, you may contact any certified third party supplier or your Ameren Illinois utility if you wish to select a different supply option.

Q: Why is Ameren offering Power Smart Pricing?

Hourly, market based electricity pricing can benefit consumers, the environment, and the electrical infrastructure as a whole in several ways:

Offering an hourly pricing option increases customer choice.
Consumers could save money on their electricity bills.
Hourly pricing gives customers an incentive to reduce their electricity usage during times when demand is highest. This reduces strain on the electrical infrastructure, helping to maintain reliable electric service.
Lowering peak demand for electricity reduces or delays the need to build or operate additional power plants.

In order to achieve these benefits, in July 2006 the Illinois legislature passed a law that requires the Ameren Illinois Utilities and ComEd (the utility serving northeastern Illinois) to offer residential customers the option of paying hourly, market-based prices for electricity. This legislation also required the utilities to contract with an independent organization to administer the program (Ameren Illinois Utilities selected CNT Energy as the program administrator).

Q: How long will Power Smart Pricing be available to Ameren Illinois customers?

Rider PSP was established in accordance with a law passed by the Illinois General Assembly in 2006 (Public Act 94-0977). One of the provisions of this legislation is that the Illinois Commerce Commission monitors the program and that after not more than four years of program operation the commission will conduct an evaluation to determine whether the program is providing economic benefits to residential electric customers. At that time the commission will decide whether the program continues, needs modifications, or should be terminated. The Authorization Form reflects the need for the Illinois Commerce Commission to make decisions about the future of the program in 2010. Given the results of the program in 2007 and 2008, CNT Energy is optimistic about the long term success of the program.

Q: What is CNT Energy’s role in Power Smart Pricing?

The Ameren Illinois Utilities selected CNT Energy as the program administrator based on the organization’s experience with hourly pricing programs and its dedication to helping Illinois households save energy and money. The Ameren Illinois Utilities and CNT Energy launched Power Smart Pricing at the beginning of 2007.

CNT Energy is a nonprofit organization dedicated to helping people and communities manage their energy costs. The organization serves as the program administrator for the Power Smart Pricing program. If you select Power Smart Pricing, your Ameren Illinois utility will continue to supply your power, respond to service calls and issue your bill. CNT Energy will provide personalized information, services and tools to help you manage your electricity costs with the hourly pricing.

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General Questions about PSP

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