Hourly Pricing Archives | Citizens Utility Board

ComEd’s Hourly Pricing: How to calculate your capacity charge

Celeste — Fri, 13 Jun 2025 17:27:11 +0000

Want to estimate your capacity charge before signing up for ComEd’s Hourly Pricing program? Here’s how to calculate it: 1. Go to this page: https://secure.comed.com/MyAccount/MyService/Pages/UsageDataTool.aspx, choose “View Summary Data Online,” and “Add” your ComEd account number. 2. Click “View Usage Data” and it’ll take you to a results screen showing vital stats. The “Capacity PLC” at the top is a calculation that is unique to each customer. (PLC stands for “Peak Load Contribution,” and according to ComEd it represents your expected energy usage during high-demand hours on hot summer afternoons. The PLC is your households electricity usage averaged over 10 system peak periods the previous summer. ) 3. Once you find your “Capacity PLC,” you multiply the following four figures: The “Capacity PLC” (unique to your account) The “scaling factor” (1.00712) The “forecast pool requirement” (0.9380) The monthly capacity charge rate ($8.331 per Kilowatt-Month) 4. The product of those four numbers is your capacity charge. For more information, check out CUB’s Hourly Pricing fact sheet.

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ICC’s ruling sets stage for “time-of-use” rate, another good choice for consumers

Elizabeth — Mon, 14 Apr 2025 21:33:23 +0000

Next year, ComEd customers will have the option of signing up for a “time-of-use” rate, or TOU, that can help them save money while reducing strain on the power system. The Climate and Equitable Jobs Act (CEJA), which CUB supported, required ComEd to offer such a rate, and under a January ruling (Docket No. 24-0378) by the Illinois Commerce Commission (ICC), ComEd will launch the TOU in 2026. There are still a lot of details that need to be worked out, but CUB hopes this Q&A gives you an introduction: What is a time-of-use (TOU) rate? Under traditional electric rates, customers pay the same amount per kilowatt-hour, regardless of when they use their electricity. While this approach is straightforward, it is a far-from-accurate method of assigning costs, and many people end up paying more than they should. A TOU rate, on the other hand, breaks the day into set periods, with each period charging customers a different rate for electricity. Overnight, when demand is the lowest, the price is much lower than the standard rate customers ordinarily pay. The hours that tend to have the highest demand–In Illinois, that’s the late afternoon and early evening–will cost the most. The rest of the day, the rate is higher than overnight but still lower than the standard rate. So if you avoid using too much during the peak hours, you save money, and whatever you can shift to overnight is especially low-cost. TOU rates fall under the umbrella of “demand response” programs. The idea is to give people a financial incentive–a lower rate for electricity–to shift the bulk of their usage away from high-demand times. Shifting electric demand away from peak hours has several financial and environmental benefits. What part of the bill does a TOU rate impact? Your bill is generally divided into two sections: supply rates (what we pay for the actual electricity) and delivery (what we pay the utility to deliver electricity to us). TOU rates can cover supply, delivery or both. In recent years, ComEd did offer a pilot program–from 2020 to 2024– with a TOU supply rate. (Canary Media reports that the pilot program reduced peak demand between 6.5 percent and 9.7 percent in the summer.) In January, state regulators approved a TOU rate that would only apply to the delivery side of bills–but ComEd wants to offer a combined delivery and supply TOU rate option as well. (More on this below.) Why do people like TOU rates? People are attracted to the idea that relatively easy shifts in their electricity usage can help them lower their utility bills. Also, reducing peak demand on the grid lowers energy prices for everyone in the long run. TOU rates also are good for the environment: Lowering demand helps the grid avoid having to run its most expensive and dirtiest gas and coal plants. Combined with other measures, TOU rates can help delay or avoid altogether the need to build more pricey power plants or replace or upgrade electric grid equipment. How will ComEd’s proposed TOU rate work? Canary Media reported that most standard customers are set to pay an […]

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Hourly Pricing program sets record for savings in 2023

Jim Chilsen — Sat, 04 May 2024 21:13:51 +0000

A voluntary ComEd program that charges participants an electricity rate that can change hourly set a record for savings in 2023, according to a report filed with the Illinois Commerce Commission (ICC). The Hourly Pricing program saved participants a total of $12.4 million in 2023, which was more than the previous five years combined (2018-2022). “Participants set records across all measurable savings metrics in 2023,” the report said. “The high rate of savings underscores the value proposition of Hourly Pricing and can largely be attributed to stability in the energy market.” Other statistics: 99.3 percent of nearly 40,000 participants saved. Participants averaged savings of $313 (44 percent). Overall, the program has saved consumers $41.4 million. The program, which was launched in 2007 after the Illinois General Assembly passed legislation requiring utilities to offer it, gives ComEd customers the option of choosing a different way to pay for electricity. It charges participants a supply rate that can change on an hourly basis, instead of the standard price that stays the same 24/7. The program also helps reduce demand for expensive and pollution-causing power plants, and it can help prevent power outages by reducing stress on the electricity system during “peak” times, when power usage and prices are at their highest. “This is great news about the Hourly Pricing program,” said CUB Executive Director Sarah Moskowitz, who herself has saved hundreds of dollars over her time on the Hourly Pricing program. “It’s further proof that programs good for the planet are also good for our utility bills.” Moskowitz encouraged people to read CUB’s fact sheet on Hourly Pricing and see if they are a good fit for the program. Illinois has been a trailblazer–it was first in the country to launch a statewide residential hourly pricing program. Ameren Illinois offers a similar program, called Power Smart Pricing, but this report deals with ComEd’s Hourly Pricing program only. The charts below display the 2023 results for Hourly Pricing:

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Q&A: Hourly Pricing and price spikes

Sophia — Thu, 14 Jul 2022 14:07:13 +0000

What is ComEd’s Hourly Pricing program? Under traditional rates, people pay a flat amount for electricity supply that changes only a few times a year. Hourly Pricing is an alternative pricing plan in which participants pay a supply rate that is subject to more immediate market conditions and can change hourly. While over the course of a day, the Hourly Pricing rate can go higher than the standard rate—particularly during times when demand for power is highest (like hot summer afternoons)—the hourly price is usually lower than the standard rate. In the past, Hourly Pricing customers saved an average of about 15 percent off the supply side of their bills, and even more when they were able to move more of their electricity usage to times of the day when energy demand was lower. What is going on with ComEd’s Hourly Pricing program? Over the past 18 months, extreme market conditions have been impacting energy customers across the world. These conditions have led to more frequent price spikes in ComEd’s Hourly Pricing program than we’ve previously seen, leading to reduced savings or even losses for program participants. While Hourly Pricing has in the past saved money for about 80 percent of participants, market conditions in 2021 reduced the percentage of customers saving to just over half. How high have hourly prices spiked? In February of 2021, ComEd’s Hourly Price reached about 32 cents per kilowatt-hour (kWh)—more than four times ComEd’s standard rate at the time. This year, the price spiked to a range of $1.19 per kWh to a record $2.30 per kWh for three hours in mid-June. Although this was only for three hours–such price spikes usually are temporary–those amounts were alarming to customers and advocates alike. (Note: The Hourly Pricing program has a price cap of $3.70 per kWh, and over the history of the program it has never reached that cap. Read more below.) Why is this happening? A number of developments in the energy market have led to volatile power prices. Record cold in the South in the winter of 2021 disrupted the natural gas distribution system and caused heating prices to skyrocket. Since then, other issues have kept prices elevated. That includes rising demand for heating gas as the economy pulled out of the pandemic, gas-production disruptions caused by Hurricane Ida, and the Russian invasion of Ukraine, which has disrupted European energy supplies and driven up demand for liquefied natural gas from the United States. When natural gas prices are high they eventually impact electricity prices, because gas plants are a major generator of electricity. Is a price cap in place for Hourly Pricing customers? Yes, Hourly prices are capped at a maximum of $3.70 per kWh by PJM, the power grid operator in northern Illinois. The Hourly Pricing FAQs say the energy supply costs in this program have never reached $3.70 per kWh. ComEd does not control the market price of energy and under law cannot mark up the supply costs of the power it delivers. But the utility does offer Budget Billing to help customers smooth out large monthly variations in electric bills. If I’m on […]

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Help the environment and cut your costs with ComEd’s Time-of-Day pricing program

Hannah — Wed, 19 Aug 2020 15:28:33 +0000

With the introduction of smart meters across Illinois, consumers have more options when it comes to how they use and pay for electricity. ComEd’s new Time-of-Day Pricing Program—which charges different electric rates during different periods of the day—is one such option. So how does the Time-of-Day program work? Most customers pay a default supply rate that is fixed and does not change throughout the day. The Time-of-Day program is a dynamic rate, which means the price changes throughout the day. Hourly Pricing is another dynamic pricing program offered by ComEd that saves customers an average of 15 percent on the supply portion of their bill. For customers who sign up for ComEd’s Time-of-Day program, the day is divided into three sections, each with a different rate: “Off-Peak,” “Peak,” and “Super Peak.” The price is lowest during the “Off-Peak” period, and highest during the “Super Peak” period. Time-of-Day Summer Rates (June-September 2020, per kilowatt-hour): Off-Peak (10pm-6am): 1.70 cents/kWh Peak (6am-2pm and 7pm-10pm): 2.925 cents/kWh Super Peak (2-7pm): 13.898 cents/kWh What are the benefits of the program? The idea of dynamic pricing plans, like a time-of-use rate, is to encourage people to use electricity during off-peak times. That has a number of benefits: By putting off heavy electricity usage until the rate is lower, participants can lower their electric bills! Reducing electricity usage during peak times reduces demand during those times, and that can lower market prices for everyone. Shifting usage away from peak times reduces stress on the power grid, leading to better reliability. If peak demand is reduced, polluting power plants don’t have to work as hard and new plants don’t need to be built. So such programs can help reduce pollution. Although a time-of-use rate offers the opportunity to save money without reducing your power usage, energy efficiency combined with a time-of-use plan can significantly increase savings. Where can I learn more and sign up? The program is part of a 4-year pilot to study how customers respond to price signals. The program is capped at 1,900 customers. Learn more about the Time-of-Day program by visiting ComEd’s program page or by reading CUB’s fact sheet. Interested customers are encouraged to enroll online, though the program can also be contacted by calling 1-800-334-7661 (Monday-Friday, 8am-5pm) or emailing TimeOfDayPricing@ComEd.com.

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Real-Time Pricing: Another way to save–just ask CUB staffers

Hannah — Thu, 16 Jul 2020 13:32:01 +0000

Most people pay an electricity rate that only changes a few times a year, but real-time pricing offers a different way to pay for electricity. Instead of charging a standard price per kilowatt-hour, the utility charges program participants a supply rate that changes each hour. ComEd offers real-time pricing through the Hourly Pricing program. Power Smart Pricing is the Ameren program equivalent. While savings aren’t guaranteed, both programs have saved participants an average of about 10-15 percent on the supply portion of their power bills. The idea behind real-time pricing is to put off the bulk of your electricity usage until times when prices are lower–late at night or early in the morning. Real-time pricing is not only good for your power bill, but avoiding heavy usage during times of peak demand also reduces stress on the grid, and it reduces reliance on the dirtiest power plants that are often operating during peak times. An ongoing analysis of energy-usage data by CUB and Environmental Defense Fund has found that most ComEd customers could save money under the program, with even better results for those willing and able to change how and when they use major appliances. Hourly Pricing is perfect for people who want to take more responsibility over their power bill and are curious about how to cut their power bills by changing when they use their electricity. Several CUB staffers have saved money by signing up for their utility’s hourly rate program. Hear what they have to say about their experiences with the programs: Aimee Gendusa-English, Lead Service Liaison Aimee has saved a whopping $622 since she enrolled in ComEd’s Hourly Pricing in 2018. “I use the ComEd app constantly. I find it very user friendly and helpful, especially when I’m looking at my hourly rates. I check the app every time I turn my AC, dryer, or dehumidifier on, and several times a day when those things are running. It’s amazing how a little bit of planning and a few small changes to your routine can result in substantial savings.” Scott Allen, Environmental Outreach Coordinator Scott has been enrolled in Ameren’s Power Smart Pricing for just two months, but he’s already shaved $5 off his electricity bill. “I haven’t been using Power Smart Pricing for long, but with my already-low usage, I’m surprised to see that I’ve managed to save as much as I have. Being aware of hourly price changes has also made me more conscious of my energy usage, which is good for my bill and the environment.” Sarah Moskowitz, Deputy Director Like Aimee, Sarah lives in ComEd territory, so she’s enrolled in Hourly Pricing. She saved almost $7 on her April bill, and since signing up about 18 months ago, she has pocketed $107. “Even though I live in a small apartment and my monthly usage is lower than that of the ideal candidate, I’ve still saved. And those small monthly savings add up over time, which can make a huge difference in the long haul.” Your chances of saving on Hourly Pricing are good if you consistently use above […]

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Home Heating quiz winner no stranger to energy efficiency

Hannah — Thu, 07 Nov 2019 19:29:01 +0000

Congrats to Joel of Evanston! He was randomly selected to win a free CUB energy efficiency kit out of more than 1,000 people who took CUB’s Home Heating Quiz. Joel has won two LED light bulbs, a Kill A Watt electricity-usage monitor, a smart power strip, and an insulated CUB tote bag. “Naturally, I’m excited,” he said. “I’m glad the quiz had good participation, and I was lucky enough to win!” No stranger to energy efficiency practices, Joel has done away with most of the incandescent lighting in his house, opting instead for LED bulbs. He recently upgraded some of the older windows in his house and has plans to soon replace his inefficient boiler. Joel also takes advantage of his programmable thermostat. On average, 45 percent of a home’s energy is used for heating and cooling, but according to Energy Star, properly using a programmable thermostat can save consumers about $180 every year. “I just took the quiz just to see what I knew and to see if I could be doing more,” he said. “I’m an advocate for the rest of my family to step it up.” To maximize his money-saving opportunities, Joel is also enrolled in Commonwealth Edison’s Hourly Pricing program. Instead of paying a flat rate per kilowatt of electricity, program participants pay a rate that varies from hour to hour based on wholesale market prices. If program participants use electricity during low-demand periods such as nights and weekends, they can potentially save. Joel runs his dishwasher on a timer set to 2 or 3 a.m., and he does laundry on the weekends when running the washer and dryer will cost less. ComEd estimates Hourly Pricing participants like Joel have saved more than 15 percent on the electricity supply portion of their bill. The lifelong Illinois resident said he is “definitely” saving money, and he says he will continue to depend on CUB for his energy and utility questions. “CUB is one of only a few organizations that can give you good utility and efficiency information,” he said. “I’ll be happy to proudly carry the CUB tote bag.” Below are the quiz questions and answers: Question: My gas bill measures usage in? Answer: Therms. Your gas meter measures the volume of gas in cubic feet, but then it’s converted to therms on your bill. A therm is about 100 cubic feet. Megawatts measures electricity, and gallons is a measure of…milk (among other things). Question: I’m a fixed monthly charge–I NEVER go down, no matter how careful you are about saving energy (tee-hee). CUB calls me an enemy to energy efficiency, and utilities just LOVE to increase me. I am…? Answer: The monthly customer charge. It never goes down, no matter how energy efficient you are. That’s why utilities push to increase the customer charge in rate cases before the Illinois Commerce Commission. A CUB review in September found customer charges for residential heating customers ranging from about $16 a month to more than $32 a month (for Peoples Gas). Question: Which of these actions is your best bet for saving energy and money and staying comfortable? Answer: Installing attic insulation or […]

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Win for consumers and energy innovation: IL launches dynamic-pricing pilots

Jim Chilsen — Thu, 17 Oct 2019 23:48:18 +0000

Environmental Defense Fund (EDF) and the watchdog Citizens Utility Board (CUB) praised Illinois regulators for two major rulings this fall that launch innovative dynamic-pricing pilot projects for customers of the state’s biggest electric utility. The projects place Illinois among the leading states for developing clean energy tools that empower customers to control their costs and reduce power plant pollution. The Illinois Commerce Commission (ICC) on Oct. 2 approved a “Time of Use” pricing pilot for Commonwealth Edison. EDF and CUB have been fighting for Illinois utilities and the ICC to approve a time-of-use rate for almost five years. The pilot will allow customers to sign up for a plan that charges different power prices during three distinct periods each day. TOU programs encourage participants to avoid heavy electricity usage during high-demand times when power is dirtiest and most expensive. Just two weeks before, on Sept. 18, the ICC approved a separate “Bill Protection” pilot program that will guarantee savings for a targeted group of customers who participate in Hourly Pricing. That’s a successful dynamic pricing program that charges an electricity rate that changes by the hour. CUB and EDF are proponents of the program, and a recent analysis by CUB found that Hourly Pricing would have saved money for 97 percent of ComEd residential customers in 2016. “This is a victory for energy innovation, our climate, and Illinois consumers,” CUB Executive Director David Kolata said. “Electric customers need a bigger toolbox to make their energy cleaner and more affordable. Illinois has to push the envelope, because we no longer have the luxury to wait. Our climate demands immediate action, but so do electric customers, because they need pricing plans that give them more control over their bills and an opportunity to cut their costs.” “EDF is pleased that customers in Illinois will be empowered to reduce their bills and their carbon footprint, even using the exact same amount of electricity, just by using it at different times,” said Christie Hicks, senior attorney at EDF. “By shifting usage away from times of day when demand is highest, the most-polluting, most expensive fuel sources can be called upon less. This is a win-win for customers and the environment.” Even though market electricity prices can dip to low levels over the course of a day, most ComEd customers are chained to a standard power price that rarely changes throughout the year. The value of dynamic pricing plans, such as TOU and Hourly Pricing, is that they give customers the opportunity to take advantage of lower rates. Such programs incentivize participants to shift electricity use away from periods of intense demand when the dirtiest generating plants are online, and power is most expensive. Both proposals were initiated by ComEd in November of 2018 and were approved by the ICC, with input from consumer and environmental advocates like EDF and CUB. A summary: Time of Use (TOU) pilot (Docket # 18-1824): This voluntary pilot program will introduce three distinct pricing periods—Off Peak (10 p.m.-6 a.m.); Super Peak (2 p.m.-7 p.m.); and all other times—with higher prices during peak times and lower prices during off-peak times. TOU […]

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