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Illinois Peak Time Savings and Hourly Pricing Programs: Maximizing Your Savings
Illinois utilities offer innovative programs that reward businesses for using electricity more flexibly. From hourly pricing that follows wholesale markets to demand response programs that pay you to reduce usage during peaks, these options can significantly lower your commercial energy costs if you understand how to leverage them.
Published: December 26, 2025 | Reading time: 12 minutes
The Illinois Energy Secret: Unlocking Drastic Savings with Peak Time & Hourly Pricing
Most electricity rates treat all kilowatt-hours the same regardless of when you use them. But the actual cost of generating and delivering electricity varies dramatically throughout the day, season, and based on grid conditions. Peak time savings and hourly pricing programs pass these real-world cost variations to you, creating opportunities for significant savings.
Why Electricity Prices Vary by Time
Wholesale electricity prices fluctuate based on supply and demand dynamics:
- Peak Periods: Hot summer afternoons and cold winter mornings see the highest prices as demand spikes and grid operators fire up expensive peaking plants
- Off-Peak Periods: Nights, weekends, and mild weather periods typically have abundant, low-cost power available
- Price Spikes: Extreme weather, equipment failures, or supply disruptions can cause dramatic price increases
- Negative Prices: Occasionally, excess wind or solar generation can push prices to zero or even negative
According to the PJM Interconnection, wholesale prices in Illinois can range from negative values during low-demand periods to over $1,000/MWh during extreme peaks.
Types of Time-Varying Rate Programs
Hourly Pricing
Your electricity supply rate changes every hour based on real-time wholesale market prices. ComEd offers this through its Hourly Pricing program for customers who can actively manage their usage or accept price variability.
Peak Time Savings (Demand Response)
You receive incentive payments for reducing electricity usage during designated "peak" events, typically hot summer afternoons when the grid is stressed. These programs layer on top of your regular rate.
Time-of-Use Rates
Rates vary by predetermined time periods (e.g., on-peak, off-peak, super off-peak) rather than following real-time markets. These are more predictable than hourly pricing while still rewarding off-peak usage.
Who Benefits Most from These Programs?
Time-varying rates work best for businesses that can shift when they use electricity:
- Manufacturing operations with flexible production schedules
- Warehouses and distribution centers
- Buildings with thermal mass that can pre-cool or pre-heat
- Operations with backup generation
- Businesses with energy storage systems
- Any facility willing to reduce usage during peak events
Peak Time Savings vs. Hourly Pricing: Which Illinois Program Maximizes Your Business's ROI?
Understanding the differences between these programs helps you choose the right fit for your business operations and risk tolerance.
Hourly Pricing Deep Dive
ComEd's Hourly Pricing program allows commercial customers to pay real-time market prices:
- Receive day-ahead price forecasts
- Pay the actual hourly price for electricity used each hour
- Prices can be very low during off-peak and very high during peaks
- Access to smart meter data and price alerts
- Participants who shift usage see 10-20% savings on average
- Greatest savings during mild weather when prices are consistently low
- Risk of higher bills during extreme weather if usage isn't managed
- Best for engaged customers who monitor prices and adjust usage
Peak Time Savings Deep Dive
Peak Time Savings programs reward you for reducing usage during specific events:
- Receive notification (typically day-ahead) of peak events
- Reduce electricity usage during the event period (usually 2-4 hours)
- Earn bill credits based on your reduction compared to baseline
- Typically 10-15 events per summer
- Earn credits for each kW of reduction during events
- No penalty if you don't reduce; you simply earn less
- Lower risk than hourly pricing with targeted effort
- Best for facilities with flexible loads or backup capacity
Comparison Table
| Factor | Hourly Pricing | Peak Time Savings |
|---|---|---|
| Risk Level | Higher (rates vary every hour) | Lower (opt-in events) |
| Effort Required | Ongoing monitoring and response | Targeted response to events |
| Savings Potential | Higher with active management | Moderate but predictable |
| Best For | Flexible operations, engaged managers | Facilities with curtailable loads |
| Enrollment | Switch from flat-rate supply | Layer on existing supply |
Can You Participate in Both?
In many cases, yes. Peak Time Savings programs typically layer on top of your supply arrangement, so you could participate in a demand response program while also having hourly pricing for your base supply. This combination maximizes savings opportunities but requires more active management.
The Commercial Energy Playbook: 5 Proven Strategies to Shift Demand & Slash Your Illinois Power Bill
Success with time-varying rates requires operational strategies to reduce usage during high-price periods. Here are proven approaches businesses use to maximize savings:
Strategy 1: Pre-Cooling and Pre-Heating
Buildings with thermal mass can store "coolth" or heat to reduce HVAC loads during peak periods:
- Pre-Cool: Over-cool your building during low-price morning hours, then let temperatures rise slightly during expensive afternoon peaks
- Pre-Heat: In winter, heat the building before morning peak periods
- Smart Controls: Building automation systems can automatically implement thermal strategies based on price signals
- Comfort Balance: Work with occupants to find acceptable temperature ranges that enable flexibility
Strategy 2: Shift Production Schedules
Manufacturing and processing operations can often adjust when energy-intensive work occurs:
- Run heavy equipment during overnight hours when prices are lowest
- Schedule maintenance during peak periods instead of production
- Stagger shift start times to avoid simultaneous equipment startup
- Build inventory during low-price periods to buffer production flexibility
Strategy 3: Deploy Energy Storage
Battery storage systems can charge during low-price periods and discharge during peaks:
- Behind-the-Meter Batteries: Store low-cost energy for use during expensive periods
- Ice Storage: Make ice overnight and use it for cooling during peak hours
- Thermal Storage: Store hot or cold water for later HVAC use
- EV Charging: If you have electric vehicles, charge during off-peak periods
Strategy 4: Activate Backup Generation
If you have backup generators, they can reduce grid demand during peak events:
- Run backup generation during demand response events to earn incentives
- Ensure compliance with air quality permits for non-emergency operation
- Compare fuel costs against peak electricity prices
- Newer clean generators face fewer regulatory restrictions
Strategy 5: Curtail Non-Essential Loads
Identify loads that can be temporarily reduced or shut off during peaks:
- Reduce lighting levels in non-critical areas
- Raise cooling setpoints by 2-4 degrees during events
- Delay elevator operation (if operationally feasible)
- Pause non-critical equipment and processes
- Dim or turn off decorative lighting
Case Study: Chicago Manufacturing Facility
A manufacturing facility in the Chicago area enrolled in hourly pricing and implemented production scheduling changes. By shifting energy-intensive operations to overnight hours and participating in demand response events, they reduced annual electricity costs by 18%, saving over $45,000 per year.
Ready to Cut Costs? A Simple Step-by-Step Guide to Enrolling in Illinois's Best Energy Programs
Enrolling in peak time savings or hourly pricing programs is straightforward. Here's how to get started:
For ComEd Customers (Northern Illinois)
Hourly Pricing Enrollment
- Verify your account is eligible (most commercial accounts qualify)
- Visit ComEd's Hourly Pricing program page or call their business line
- Review program terms and understand price variability
- Sign up and receive access to hourly price information
- Program starts at your next meter read date
Peak Time Savings Enrollment
- Contact ComEd's demand response program administrators
- Discuss your facility's curtailment capabilities
- Establish a baseline for measuring reductions
- Receive event notifications via your preferred method
- Participate in events and earn bill credits
For Ameren Illinois Customers (Central/Southern Illinois)
Power Smart Pricing
Ameren Illinois offers Power Smart Pricing for residential and small commercial customers, with hourly rates based on real-time markets.
- Verify eligibility based on your rate class
- Enroll through Ameren's business programs
- Access hourly price information online or via mobile app
- Adjust usage based on price signals
Working with Third-Party Demand Response Providers
Several third-party companies offer demand response services in Illinois, often with additional incentives:
- These providers aggregate many customers' load reductions
- They handle event notifications and measurement
- May offer higher incentive payments through PJM or MISO programs
- Can provide technology and consulting support
Preparing Your Facility
Before enrolling, prepare your operations for success:
- Identify controllable loads and estimate reduction potential
- Establish communication protocols for event notifications
- Train staff on response procedures
- Consider building automation upgrades for automatic response
- Set realistic expectations for first-year participation
Ready to Explore Time-Varying Rates?
Peak time savings and hourly pricing programs offer significant savings opportunities for Illinois businesses willing to manage their electricity use more actively. Understanding your options is the first step.
Frequently Asked Questions
Hourly pricing involves more price variability than fixed rates, but risk can be managed. Participants who actively monitor prices and adjust usage typically save money. Those who can't shift usage may face higher bills during peak periods. Start by analyzing your usage patterns to understand your exposure.
Savings depend on how much load you can curtail and how many events occur. A facility that can reduce 100 kW during events might earn $500-$2,000 per summer in bill credits, with additional savings from reduced demand charges.
Most demand response programs have no penalty for non-participation; you simply earn fewer credits. Some programs have minimum performance requirements to remain enrolled, but these are typically reasonable.
It depends on the program. Demand response programs typically work regardless of your supply arrangement. Hourly pricing programs are usually tied to your utility or specific suppliers. Check program requirements when shopping for commercial electricity.
Conclusion: Flexibility Creates Value
Illinois businesses that embrace time-varying rates and demand response can significantly reduce their electricity costs while supporting grid reliability. The key is matching program requirements to your operational capabilities.
Key takeaways:
- Wholesale electricity prices vary dramatically by time and conditions
- Hourly pricing passes real-time market prices to engaged customers
- Demand response rewards you for reducing usage during peak events
- Operational strategies enable you to capture savings opportunities
- Start by understanding your flexibility and risk tolerance
Whether your business is in Chicago, Aurora, or Rockford, these programs offer valuable savings opportunities for businesses willing to be flexible with their electricity usage.