Real time electricity pricing: Thoughts?

[motipha]

So, I live in Chicago and was researching my options for sourcing/pricing the electricity I get through ComEd.  When I looked at their website I was offered the two suggestions I knew about (choose my own supplier or just use the comEd base rate).  But I was also offered this third option that I hadn't heard about:  Real time electricity pricing.

Here's the website: http://www.pluginillinois.org/realtime.aspx

Looking at the comed page, they're showing electricity rates for the next few hours between 2-4 cents per kWh.  This seems really good, given that I try to work from home as much as I can. 

So, the question:  Has anyone else mustachian looked in to this option?  have had experiences with this option?  I'm going to look at it a bit more before I make some decisions, but I thought I'd get some other opinions...

[chucklesmcgee]

I've heard of something like this, I think it would almost certainly work to your advantage, since electricity providers will probably build in a margin on a flat rate to ensure they'll make money even when demand is high, whereas with the real time rates they'll be able to keep rates closer to actual. The ones I've heard of aren't real time pricing, they're scheduled- so say, electricity from 12PM-5AM will be priced at a lower rate since demand is typically lower around then. This takes it one step further.

I don't imagine that you'd actually be checking the real-time rates all the time, but instead figuring out demand patterns generally so you can schedule certain appliances and activities (dishwasher, washing machine, dryer, A/C or heater) to run when rates are lower.

[RoseRelish]

Real-time pricing would be great for you if you schedule the dishwasher, washer & dryer, etc. to run at night. Working from home a lot might make your usage increase during times of peak load (9am-5pm), which might offset some of the savings. Plus, you'd probably be running the AC/furnace more than somebody who goes to an office and has utilities paid by the employer. It's a cool option to have real-time prices, but might not be worth it.

I analyze utility companies for a living, so know a bit about rates/regulation/etc. If your habits differ from the typical electricity user as far as times of usage, this could be a good opportunity. But the fact that you work from home would make me hesitant to recommend this option to you as you are almost an exaggerated version of the typical user in a lot of ways.

[Working Mama]

Dear Motipha,
Can you request a history on your usage, for the past year?  Our local power company just emailed me an annual review of our expenses.  It was very helpful.
Love, Mama

[motipha]

Widerhaken,

I see your point, but looking at the variation in pricing during the day is still lower than the base rate that COmed uses.  It's really only from 7-9am and 5-8pm that the cost rises significantly.

That said, altering my usage patterns for the dishwasher/washing machine/dryer (the air drying is in the cards eventually, but for now I have cats and not a lot of space.  Perhaps soon though!) to happen at night ain't bad. 

Working Mama, I have a history of my usage, but it's not an hourly measure.  That's the real issue.  But I think having control will be useful in terms of seeing just how much energy I actually use.

Also, my work has changed.  No longer working from home two days a week (booo) but no longer commuting to the burbs (yaaay!).  Consulting is fun for it's variations.

[yomimono]

Electricity pricing isn't just variable through the day, but also through the year.  I'd recommend getting some information on historical prices in the summer before you jump in, especially if you use an air conditioner, and especially especially if you use an air conditioner to cool a large space.

[chucklesmcgee]

Electricity pricing isn't just variable through the day, but also through the year.  I'd recommend getting some information on historical prices in the summer before you jump in, especially if you use an air conditioner, and especially especially if you use an air conditioner to cool a large space.

It's still just a basic insurance gamble. Prices might be a lot higher in the summer during peak times, but utility companies will still be able to price electricity closer to actual prices (i.e. lower) as they don't need to build in any safety net to protect themselves if there's high demand or a change in the energy markets.