Another month and more savings. I’m not even trying anymore. I used to set the dishwasher to run overnight, but lately I’ve been running it whenever we fill it up.
With ComEd’s Hourly Pricing Program, I pay an hourly rate for my electricity instead of a standard fixed-price rate. With this option, I’m able to take advantage of lower prices during off-peak times – typically nights and weekends.
Take a look at the Hourly Pricing website, or give their dedicated program specialists a call at 888-202-7787 to learn more about the program and find out if it is a good fit for you. They also have a short video that provides a brief summary of how the program works.
ComEd’s Hourly Pricing Program
Participating in this program has been beneficial to me, so I thought it may interest you as well. Plus, if you become a program participant, we’ll both receive a $25 e-gift card. To participate in the Refer-A-Friend program, click on the blue button below to enroll now.
With the Polar Vortex descending upon us this week, I thought I would go through a little calculation to see which option makes more sense (and costs less dollars).
How to compare Natural Gas to Electricity
To be able to properly compare natural gas to electricity, we need to figure out how to compare their cost. Each of the two energy sources are delivered and measured using different units. Natural gas delivered and billed in therms, electricity in kilowatt-hours (kWh). Luckily, someone has already gone to the trouble to calculate how many kWh are in a therm — 29.3072 (source: Wikipedia).
Using this conversion factor, we can compare the relative costs of the two energy sources:
unit cost (Dec-18)
cost per kWh
cost per therm
For the purpose of turning energy sources into heat, it doesn’t take a rocket scientist to figure out that natural gas is a much cheaper form of energy than electricity. Natural gas is 6.4x cheaper than electricity.
What about furnace efficiency?
If your furnace uses plastic pipes, it’s a high efficiency furnace (>97%). If you have a standard efficiency furnace (mine is ~85%), some of your energy is lost up the chimney. So for my situation I’ll need to adjust for that by dividing my unit cost for natural gas by 0.85.
unit cost (Dec-18) adjusted
cost per kWh
cost per therm
This changes the cost differential slightly, but natural gas is still 5.4x cheaper than electricity.
Turn up the thermostat!
Bottom line is that heating with gas is several times cheaper than heating with electricity. If you have the option of heating with natural gas or electricity, natural gas is the way to go!
With final billing in from ComEd, here are the numbers:
Not a bad year with only one month with a bill higher than flat-rate. I’ve been on hourly pricing since July 2008 and in all that time only 5 months have been higher than flat rate, most have been in winter with Jan-Mar of 2014 being particularly bad — remember the Polar Vortex?
Reading your Utility Bill
Electricity bills consist of three components: the cost of the energy (supply), the cost to deliver that energy (delivery) and taxes and fees. A typical ComEd bill breaks them down visually:
If you have a different electricity supplier than ComEd, it would be indicated on the left hand side of the graphic. In my case ComEd is the supplier and the delivery company.
Alternate Electricity Suppliers
Every so often I get an offer in the mail to switch to a different energy company for the “supplier” part of my electric service. In every case what sounds like a way to save money would turn out to be the opposite. The latest offered to lock in my electric rates to $0.065/kWh. The graphic above was taken off the December 2018 bill. Taking the cost of the energy ($64.47) and dividing by the total kWh (1069) yields a cost of $0.0603 per kWh. Even in one of the smaller savings months (vs. ComEd flat-rate), I would still be under the offer from the competitor. Below are the monthly energy costs (supply) and the average cost per kWh for each month in 2018:
Average cost per kWh
If you have any questions or would like to learn more, please feel free to contact me.