The Power Smart Pricing Update

Download the Power Smart Pricing Update for program news and energy-saving tips.

August 2008 Update
Summer 2008 Update and Summer Readiness Kit
Winter 2008 Update
Fall 2007 Update
Summer 2007 Update

Hourly Pricing Made Easier

This summer, it will get even easier to plan your energy saving actions with Power Smart Pricing! Starting June 1, the hourly prices used to calculate your bill will be the day-ahead market prices rather than the real-time prices.

This means that rather than checking the day-ahead prices in the evening as a forecast for the following day, you will be able to check the actual prices that will be in effect during the following day, and there will be no surprises. In addition, your high price alerts will continue to let you know in advance any time prices will be high.

We hope this change will make participating in Power Smart Pricing even easier and more convenient!

Power Smart Pricing Helps Ameren Illinois Customers Save on Electricity

March 10, 2008

Energy-smart households across Illinois have been saving money on their electricity bills by taking advantage of Ameren Illinois Utilities’ Power Smart Pricing program. During 2007, participants saved an average of 16 percent on their electricity bills compared with what they would have paid on the standard residential rate (based on results since the program started in May 2007).

“I was immediately interested when I read the article in the paper,” says Chris Francisco of Macomb. “I followed up, joined the program and am happy with the savings I’m achieving,” he says.

Power Smart Pricing helps customers save money by giving them access to hourly, market-based electricity prices. While these prices vary, most of the time the market-based price of electricity is lower than the price under the standard residential rate. Customers can increase their savings by taking simple actions to conserve energy during the few hours when prices rise. Savings cannot be guaranteed with market-based pricing, but the program gives customers tools help them manage their costs.

Patrick Chapman of Urbana says Power Smart Pricing has allowed him to take greater control of his electricity costs. “I like the program. I like the fact that you get software updates and can analyze your power usage to save money,” he says. “The real trick was setting my thermostat to adjust based on the price of energy.”

CNT Energy Helps Participants Make the Most of Hourly Pricing
The Power Smart Pricing program is administered by CNT Energy, an independent, nonprofit organization dedicated to helping consumers and communities manage their energy costs and become more energy efficient. Power Smart Pricing participants remain Ameren customers, and Ameren Illinois Utilities continue to deliver their electricity and issue their bills. CNT Energy’s role is to offer customers a package of services that help them maximize their savings with the hourly rate.

CNT Energy provides educational materials, personalized updates, and online tools to help Power Smart Pricing participants save energy and money. Participants also receive alerts by phone or e-mail when hourly electricity prices are expected to be high. These services were important to the success of Power Smart Pricing during 2007. In coming year, CNT Energy will continue to help customers benefit from hourly electricity pricing, and will offer energy-saving workshops and improved online tools.

Anne Evens is the director of CNT Energy. “We’re thrilled to see households taking control of their electricity costs and saving money with Power Smart Pricing,” she says. “It shows that the residents of central and southern Illinois are smart about their energy use, and this program gives them the power to get more value from smart energy choices they make. We’re excited about doing even more to help Illinois households save energy and money.”

The Illinois Citizens Utility Board (CUB) agrees that Power Smart Pricing is a good option for many Illinois households, and CNT Energy has the experience and integrity to help customers benefit from the program.

“This program could do wonders for your power bill if you’re willing and able to change the way you use electricity when prices are high,” says CUB Executive Director David Kolata. “CNT Energy has demonstrated its commitment and its expertise in helping customers manage their energy costs. Customers who enroll in Power Smart Pricing can rest assured that the CNT Energy staff will be there for them.”

Participants Save, Everyone Benefits
As Power Smart Pricing program continues to grow, participants will have a positive impact on the rest of their communities. By shifting some of their electricity usage from hours when prices and demand are high to hours when prices and demand are low, program participants not only save money, they also reduce the peak demand for electricity. Spreading energy demand throughout the day has several benefits. A lower peak reduces the need to build or operate additional power plants. A lower peak demand also helps to maintain reliable electric service for all electricity customers.

Who Can Benefit?
Power Smart Pricing is particularly valuable for customers who can be flexible about how and when they use electricity. It’s likely to be a good electricity pricing option for customers who:

• Are interested in using energy wisely.
• Want to learn more about using energy efficiently.
• Want to be part of a program that helps maintain reliable electric service and improves the environment.
• Can make some simple adjustments in how and when they use electricity. (For example, by adjusting the air conditioner setting a few degrees on summer afternoons when prices are high, and running major appliances such as clothes dryers and dishwashers during evening and weekend hours when prices are low.)

While many customers can benefit from Power Smart Pricing, the program is not for everyone. In particular, Power Smart Pricing might not be the best choice for customers who:

• Are not able to or prefer not to adjust their electricity usage during hours when prices are higher (for example, by changing the air conditioner setting a few degrees for a few hours on summer afternoons).
• Use very little electricity (typically under 400 kWh per month). For customers who use very little electricity, the small monthly fee of $2.25 may not be offset by the potential savings.
• Use electricity as the primary source of energy to heat their homes and are billed on, or are eligible for, an electric space heat rate.

For more information about electricity rates go to “About Real-Time Prices” or view rate details at www.ameren.com.

Enroll This Spring
Spring is a great time to enroll in Power Smart Pricing. Market-based electricity prices vary by season, and they tend to be lowest during the spring, fall, and winter, so customers who enroll now are likely to start saving right away!
To enroll in Power Smart Pricing go to “How to Enroll.”
For more information, contact CNT Energy at 1-877-655-6028 or info@powersmartpricing.org.

Program Details
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 their electricity bill. Savings from the Power Smart Pricing are expected to more than offset this modest monthly charge.

To participate in this program, customers must agree to remain on the hourly, market-based electricity rate for a minimum of 12 consecutive monthly billing periods. At the end of that 12-month period, customers will be free to contact their Ameren Illinois Utility if they wish to select a different supply option.

Background
Power Smart Pricing was introduced in early 2007 after the Illinois Legislature enacted a bill requiring the major Illinois utilities (including the Ameren Illinois Utilities and ComEd) to offer residential customers the option of paying the hourly, market-based price for electricity. The bill also called for the utilities to work with an outside program administrator that would be responsible for promoting the program and helping customers save money with hourly electricity pricing. CNT Energy serves as the program administrator for the Power Smart Pricing program, which is open to all residential electricity customers served by Ameren Illinois Utilities.

CNT Energy operated a successful real-time pricing pilot program in northern Illinois from 2003 through 2006. This program demonstrated that hourly, market-based electricity pricing can save consumers money, encourage energy efficiency, and reduce strain on the electricity infrastructure during times when it matters most. Over the life of the pilot program, participants saved an average of 10 percent compared to what they would have paid on the fixed rate. CNT Energy is now applying its experience and dedication to help the Ameren Illinois Utilities build a successful hourly electricity pricing program in central and southern Illinois.

CNT Energy
CNT Energy is a nonprofit organization that works to help households and communities save energy and money. CNT Energy is a division of the Center for Neighborhood Technology (CNT). CNT promotes the development of more livable and sustainable communities. For 30 years, CNT has been demonstrating its unique brand of sustainable development: development that is good for the economy and the environment; makes better use of existing resources and community assets; and improves the health of natural systems and the wealth of people—today and in the future.

Relief Includes Power Smart Pricing Participants

November 1, 2007

In late August Governor Blagojevich signed a $1 billion electricity rate relief package. The settlement will provide bill credits to Ameren residential electricity customers—including Power Smart Pricing participants. Participating in Power Smart Pricing will not impact the amount of your credit. You will receive the same amount that you would receive under the standard residential rate. The average customer who does not have electric space heating can expect to receive a credit of around $132.

As a part of the rate relief settlement, the Ameren Illinois Utilities will also change their method of buying power for customers on the standard residential BGS-1 rate. The new energy prices effective in June 2008 are not yet available. However, we believe Power Smart Pricing will still be valuable for customers, particularly those who are able to be flexible about how and when they use electricity.

Changes to the Capacity Charge Portion of Your Bill

November 1, 2007

As a result of feedback from customers on real-time pricing, the Ameren Illinois Utilities have changed and streamlined the method used to calculate the Contract Capacity Charge on Power Smart Pricing customers’ bills. The new method should lower this charge and make your bill easier to understand.

A single “RTP Supplier Charge” will replace both the Contract Capacity Charge and Ancillary Services Charge line items on your future bills. This should result in a lower charge going forward. In addition, if the new method of calculating the charge would have reduced your previous bills, your Ameren Illinois utility will credit your account for the difference.

Managing Your Costs
The new method of calculating the RTP Supplier Charge will allow you to use a single strategy for managing both this charge and the Electric Supply portion of your bill. You can lower both parts of your bill by conserving electricity during hours when prices are high.

The new RTP Supplier Charge will be based on your demand when the peak system load occurs during the billing period. In general, the price of electricity goes up when demand is high, so the peak system load is likely to correspond with higher real-time prices. This means that if you can reduce your electricity use when prices are high, you’ll also have a good chance of reducing your demand during peak system load, and this in turn will result in a lower RTP Supplier Charge. Of course, when you avoid using the most expensive electricity, you’ll also reduce the electric supply portion of your bill.