Real Time Electricity Pricing in Chicago

[rhadams1988]

A few months ago, ComEd installed a smart meter at my apartment which meant that I could finally sign up for Real Time Pricing. Since I'm an energy engineer and giant nerd, I'd been waiting for this for quite some time. RTP is perfect for a Mustachian because you can save money by shifting your electricity consumption to off-peak times. Utilities are willing to pay you to do this because it means they don't have to run/build their peaking power plants which are super expensive and super polluting.

You pay more during times of peak demand and less the rest of the time instead of a flat rate at all times. All you have to do is log into their website every once in a while and you will figure out that you should do things like run your dishwasher/washer/drying after 10PM, charge your electric vehicle at night, or avoid running your AC full blast when everyone else is (if you even have AC or a dryer... since you're a Mustachian).

If you are served by ComEd, use this link http://bit.ly/23824FR to sign up and get a $50 signing bonus (full disclosure: I get $50 too). If you're not served by ComEd, check with your utility to see if you can participate in their RTP program. It's a great way to reduce your carbon footprint and save some money.

[Abe]

I'm hoping to sign up once my meter is installed soon...but our energy use is already really low with LED lights and high efficiency fridge. I've had good savings with the AC cycling program since we don't use it much and it's basically free $40 from ComED every year.

[johnny847]

What's interesting to me is for my power company (in GA), I'm still better off with the standard rate.

I use around 200 kWh a month year round (I live in a basement apartment which lets me leave my A/C off a lot. But then I turn on my dehumidifier sometimes).

In both winter and summer, under the standard rate, the cost of the first 650 kWh is the same, 5.6582 cents/kWh (it's much higher for energy usage over 650kWh in the summer).

Under the "Night and Weekend" rate, the peak time is defined as 2pm to 7pm on weekdays in June through September. The off peak rate is 4.643 cents/kWh, and the on peak rate is 20.3217 cent/kWh.

So my maximum benefit (if I only ever used electricity during off peak times) is $2.03 a month. Eight months of the year is always off peak, so that's $16.24 in guaranteed savings.
But what of the summer months?

I'd have to use no more than 39kWh a month in June thorugh Sept during peak hours for all the savings from the rest of the year to overcome the extra cost of peak hour electricity usage. That to me seems like a lot of risk for so little gain.

If I were to decide to switch to the Night and Weekend rate, I have to stay on that rate for an entire year (makes sense).


It's definitely worth doing the math, as I'm sure you've done.

[rhadams1988]

Abe - In that case, you are probably better off with the AC cycling program because the Real Time Pricing and AC cycling programs are mutually exclusive. I'm a renter though, so I don't have permission to have ComEd put a load switch on my landlord's AC line. But you bring up a great point.

[rhadams1988]

Johnny - Yea, you definitely need to run the numbers. It seems like you're utility's rate structure is not as progressive as it could be. Our standard rate is a flat ~$0.6/kwh, and then the RTP rate changes every hour depending on grid demand. In most Mustachian homes, it's not going to be worth a ton of money just because we don't use much energy to begin with, but if the math works out, it could still be worth doing.

[johnny847]

Johnny - Yea, you definitely need to run the numbers. It seems like you're utility's rate structure is not as progressive as it could be. Our standard rate is a flat ~$0.6/kwh, and then the RTP rate changes every hour depending on grid demand. In most Mustachian homes, it's not going to be worth a ton of money just because we don't use much energy to begin with, but if the math works out, it could still be worth doing.

Wait your marginal rate is 60 cents a kWh??

And yeah definitely, the power company around here doesn't charge progressive enough rates. The first bracket goes up to 650 kWh which is a lot of energy if you pay attention to what you're using.
But of course most people don't care and I'm sure plenty of people use more than that.

[beardsly]

Do you mind posting your average rate for energy, delivery and customer charge?  I live in the western Chicago burbs.  I use ~350Khw outside of the summer months, I'm not sure if the demand pricing will equate to any savings.  It's interesting to note that only 40% of my bill goes towards electricity, the rest is delivery, fees and taxes.