Introduction to ComEd hourly electricity pricing

ComEd has two electricity pricing plans: (1) the standard plan that is based on a fixed rate, and (2) an hourly pricing plan.

ComEd is northern Illinois’ electricity utility and the hourly pricing plan is more formally known as the Residential Real-Time Pricing (RRTP) program, which began in 2007.

You can probably save money by selecting the hourly plan. And you will be more aware of the real-time cost of electricity, which is related to the environmental impact of electricity generation.

What Does It Cost?

The fixed rate plan costs about $11/month plus 11.8¢/kWh. The hourly plan costs about $34/month plus approximately 6.7¢/kWh (the rate varies by hour – 6.7¢ was the average over the 12 months ending June 2010 and the typical range was 5¢ to 9¢). These prices include all taxes and fees. See the chart to the right for the latest hourly price.

As you can see there are additional fixed costs for the hourly plan. The breakeven was about 450 kWh per month. So if your usage averaged more than 450 kWh then you probably would have saved money on the hourly plan.

What Are The Risks?

The main risks are: (1) rates aren’t guaranteed and are based on hourly market rates, (2) the fixed costs change occasionally, and (3) the program may change when the current ComEd RRTP filing expires in December, 2010.

What Are The Rewards?

If you average more than 500 kWh per month you will probably save money. And you will probably use less electricity when rates are high, which is when less efficient (and often higher polluting) plants are needed to meet the demand. Shifting your usage to lower rate periods is better for the environment.

What is a kWh?

A kWh, or kilowatt-hour, is the amount of energy used by a 100 watt light bulb that is on for 10 hours.

There is a chart showing a 13-month history of your usage on ComEd bills. Or to see a 24-month history log into your ComEd account, then click on “My Usage”, then “Usage History”. You’ll find a chart something like mine (see right).

So Should I Sign Up?

There are no guarantees but… if you average more than about 500 kWh per month you will probably save money and you will definitely be a more environmentally-aware electricity consumer.

In our case we saved $360 in the 12 months ended June 2010. This was a 24% savings off the fixed rate plan. Our monthy average usage was 1106 kWh.

To Learn More or Sign Up

For more info visit the ComEd Real-Time Pricing info page. Or to sign up click on the “Enroll now” link on the ComEd RRTP web site.

Maximize Your Savings

One of the largest cost factors in the hourly plan is how you use your air conditioner. For more information see Program your thermostat for ComEd hourly electricity savings.