About Our Rate Pilots
We’re conducting two-year pilots in Staten Island, Westchester County, and Brooklyn. About 295,000 customers in these areas will be recruited, and we expect more than 92,000 to be enrolled. Customers will also be randomly selected to participate in the pilots and will be recruited on both an opt-out/default and an opt-in basis. All recruited customers will receive multiple communications prior to enrollment and, once enrolled, may opt out any time.
How the Smart Energy Plan Works
On the Smart Energy Plan, the delivery portion of customers’ bills will be based on how efficiently they use the grid. We will test a variety of new demand rates. Delivery costs will be based on when customers choose to use electricity and how much electricity their devices use at the same time. The fewer devices used at once, the less energy needed to power them.
The difference between our standard delivery rate and the Smart Energy Plan is like the difference between a car’s speedometer and odometer. The speedometer indicates a car’s speed at a specific moment in time, similar to how delivery will now be measured. The odometer indicates the number of miles a car travels over time, similar to how delivery is measured on the standard rate.
How the Fixed Delivery Billing Plan Works
On the Fixed Delivery Billing Plan, the delivery portion of customers’ bills will be based on a fixed number of kW. This delivery level is set based on how efficiently each customer uses the grid. We will test two new subscription rates. The rates differ in that one offers a slightly lower price per kW, but includes overage charges if a customer exceeds their delivery level during summer peak hours. The other rate does not include overage charges.
A Plan Tailored to Customers’ Individual Energy Use
In the past, the delivery portion of customers’ bills changed from month to month. However, on the Fixed Delivery Billing Plan, each customer’s electric delivery will be customized based on the way they used energy over the 12 months prior to the start of the plan, and will be fixed for the next 12 months. How customers use energy this year will determine their delivery level when their plans renew for year two.
Think of it like a cell phone data plan personalized based on the average amount of data a customer used over the past year. Each fixed plan will be tailored to the customers’ unique energy needs, making it easier to stick to a budget.
Ways to Save on the Smart Energy Plan
The Smart Energy Plan offers customers two new ways to save on their electric delivery costs:
- Stagger the use of large electric devices, instead of using them all at the same time.
- Shift energy use to off-peak hours when possible.
On our standard rate, customers are charged the same price for electric delivery regardless of when they use energy. The Smart Energy Plan, however, prices electric delivery higher during peak periods, when demand for electricity typically goes up. Customers pay less during off-peak periods, when demand is lower.
For some customers, the peak period will be noon to 8:00 p.m. For others, it will be 2:00 p.m. to 10:00p.m. The off-peak period includes all other hours, including all day on weekends and certain holidays.
Ways to Save on the Fixed Delivery Billing Plan
Although the delivery level is fixed for 12 months when customers enroll in the Fixed Delivery Billing Plan, the pilot still provides an incentive for customers to be mindful of how they use energy, as this will affect their delivery level for the next year. Even if customers do not reduce their overall energy consumption, they can still reduce next year’s total energy costs if they consistently stagger the use of large devices. By doing so, it’s possible to save as much as 1 kW and see about a $20 difference in their monthly bills next year.
Customers who are subject to overages have an added incentive to stagger their energy use during summer peak hours.
Can anyone participate?
Customers not recruited for the Smart Energy Plan, including those outside of the pilot areas, can enroll on a “walk-in” basis, provided they have a smart meter and working communications equipment installed at their homes or businesses. Please call 1-800-75-CONED (1-800-752-6633) to learn more.
Only customers who are recruited for the Fixed Delivery Billing Plan are eligible to participate. Recruited customers were chosen at random from a pool that included all those in Staten Island, Westchester County, and Brooklyn who had smart meters installed for at least 12 months prior to the start of the pilot.
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