Work together to lower electricity costs

There is a lot of talk in the news lately about the smart grid, and for good reason. Investment in a smart grid, if done right, could facilitate significant savings for consumers.

A smart electric system requires not only smart meters, but also smart rates and smart consumers. Smart meters allow consumers to see their energy use and make it possible for them to participate in real-time pricing programs through ComEd or Ameren that save them money.

The nonprofit CNT Energy, which administers the Ameren Power Smart Pricing program, recently analyzed data from 84,000 residents in ComEd's pilot smart meter installation. It found that more than two-thirds of residential customers with these meters would have saved an average of $153 per year, without any change in their electricity use, if they had taken advantage of the real-time pricing plan — far more than the $36 per year cost of smart grid investments under the recent legislation. Robust customer education and expanded energy efficiency programs could increase these savings dramatically.

Lawmakers, utilities and others need to negotiate an electricity compromise soon. A good compromise for consumers is one that includes smart meters and energy efficiency provisions that give everyone the opportunity to save on electricity.

Kathryn Tholin, CEO

Center for Neighborhood Technology

Chicago