Before 1997, some of the highest electricity rates in the United States was located in Illinois. After the “Illinois Electric Service Customer Choice and The Rate Relief Law” was passed, consumers in Illinois had more choice for their energy.
Ameren Illinois Utilities and Commonwealth Edison Company became utility companies where new suppliers could purchase their electricity from. At first, the deregulated energy was only available to large businesses.
Households and small businesses weren’t allowed to buy deregulated energy, therefore, to compensate for the lack of choice, legislators lowered electricity prices by twenty per cent, keeping them locked for ten years.
New energy suppliers took their time to enter the residential markets due to the lowered electricity prices. In 2002, deregulated energy was made available to residential and small business customers, hoping to create an increase in energy companies entering the Illinois market.
Industrial and large commercial customers were making the most of the energy choices available to them, with deregulated energy being a big success in this market. With more offers, bigger businesses benefitted from being able to choose who supplied their energy.
The influx of new suppliers had limited services, so in 2006, the State General Assembly passed the Retail Electric Competition Act. This allowed suppliers to develop new programs, removed some of the barriers to competition and promoted temporary discount programs.
With the residential rate freeze expiring in 2007, electricity prices rocketed to compensate for the previous 10 years without price increases. Due to this soar in price, the General Assembly of Illinois passed the Illinois Power Agency Act, providing one billion dollars in rate relief.
In 2009, only eight suppliers were serving residential customers. This rose to 87 providers in 2014 and now, there are more than 150 electric suppliers to choose from in Illinois.
It has taken a long time for the benefits of deregulated energy to unfold in Illinois. However, with more competition and offers, Illinois now has one of the lowest electricity prices in the United States, among the ten lowest states.
In the state of Illinois, there are three utility companies. These utility companies are responsible for maintaining power lines, restoring any power outages and delivering the electricity to your home. The utility companies in Illinois are:
- Ameren Illinois
- ComEd
- MidAmerican
Illinois was one of the first states that adopted energy deregulation, and more than 1.6 million Illinois consumers have switched to a retail electric supplier. When it comes to regulating and overseeing the electricity in Illinois, Illinois Commerce Commission (ICC) takes care of this.
There is Plug In Illinois, a website set up to help and advise residents when making a decision on which Illinois electric supplier is best for their needs. Some of the electricity providers in the state only offer services in certain areas, however, others offer services in multiple areas.
Consumers can still choose to have their electricity supply from an electricity provider, rather than choosing one of the newer independent suppliers. They will still have charges, however, such as delivery.