Compare Chicago Electricity Rates

Chicago Electricity Rates

Chicago is one of the many cities in Illinois that is located in a deregulated electricity market. Chicago electricity rates fall under the Commonwealth Edison utility service area. Residential and commercial customers living in the city can shop around for an electric supplier and lower the supply rate charge on the electric bill. Paying a lower supply rate can significantly reduce the cost of the electric bill each month. Allowing energy companies to compete for your business has helped push down energy prices in Illinois.

The city of Chicago is the third-largest city in the United States with a population of just over 2.7 million people. Commonly referred to as the windy city, the city is known for brutal winters that include high winds and snowfall averaging more than 35 inches per year.

Chicago Energy Deregulation

More than 20 years ago, legislation was passed known as the Electric Service Customer Choice and Rate Relief Law of 1997. This law unbundled the responsibilities of the Illinois utilities and allowed outside energy suppliers to provide Illinoisans a choice for generation services. Opening up the energy market to outside competition has given Chicago residents more options when choosing an energy plan.

The state of Illinois generates more power from nuclear energy than any other state and is currently the third-largest net exporter of electricity in the nation. Coal-fired power plants have been the second-largest producer, although in recent years the net contribution has been steadily declining.

Chicago Utility Companies

Commonwealth Edison (ComEd) is a utility company that operates in Chicago. If you’re planning on moving to the city, then you will need to set up an account for electricity services with ComEd. The utility company is responsible for maintaining the power lines to safely deliver the electricity to its customers. The delivery charge makes up the regulated section of the electric bill. If you are a Chicago resident, you will not be able to change to another utility company.

Contact ComEd for Power Outages

If you recently changed electric suppliers and experience a power outage, then you will still need to contact Commonwealth Edison. The utility company will be responsible for fixing all power outages in its service area.

Commonwealth Edison contact information: 1-800-334-7661

Energy Suppliers in Chicago

AEP Energy

AEP Energy operates in 27 service areas, six states, and the District of Columbia. The company provides natural gas and electricity services to over 500,000 residential and business customers. AEP Energy was established in 2002 and is located in both Columbus, Ohio and Chicago, Illinois. The company takes pride in offering outstanding customer service along with innovation and experience that comes from many years of providing business in the energy sector. AEP Energy can be reached at 1-866-258-3782.

Direct Energy

Direct Energy is one of North America’s largest retail energy providers offering natural gas and electricity services to over 4 million Americans. The energy company was recently required by NRG Energy and will be joining their family of brands. The company’s headquarters are based in Houston, Texas with regional offices all across the United States. The company is known for providing competitive energy prices along with great customer service. Direct Energy can be reached at 1-855-461-9824.

Champion Energy

Champion Energy is one of the fastest-growing retail electric providers in the nation serving residential, commercial, governmental, and large industrial size users. The company provides energy services in deregulated electricity markets including Texas, Illinois, Pennsylvania, Ohio, New Jersey, Maryland, Massachusetts, New York, Connecticut, and Maine. With headquarters based in Houston, Texas, Champion Energy credits its success to its attention to customer care. Champion Energy can be reached at 1-877-653-5090.

Starion Energy

Starion Energy provides energy services in Connecticut, Delaware, D.C., Illinois, Indiana, Maryland, Massachusetts, New Jersey, New York, Ohio, and Pennsylvania. The company is a proud member of the Retail Energy Supply Association (RESA). RESA is a strong advocate for energy choice over the monopoly-protected utility regulation. Starion Energy is known to provide competitive energy prices in renewable energy plans along with great customer service. Starion Energy can be reached at 1-866-869-3088.

Choosing an Electric Supplier

With so many electric suppliers providing quality service, sometimes it can be hard to pick the one that is right for you. Energy choice has provided the customer with more options, including 100% renewable energy and competitive rates that can be much lower than the price to compare offered by Commonwealth Edison. The energy plan that is right for you may not be the same one that is right for your neighbor. Here are a few things to keep in mind while shopping for a new electric supplier.

Read the Terms and Conditions!

To save yourself from any surprises on the electric bill, you should take the time to read the details of the plan. The terms and conditions will include the energy rate, term length, early cancellation fees, and any other charges that might be included. With so many options out there, knowing the terms and conditions of each plan can help you make an informed decision about which plan is right for you.

Fixed vs. Variable Rates

The two most common rate products are fixed and variable rates. Knowing which rate product is best has a lot to do with current energy prices. It makes more sense to lock in a long-term rate when energy prices are low. Fixed rates will protect the customer from a rising market. However, if the market continues to drop the customer may be stuck paying a higher rate.

Variable rates can fluctuate monthly. It’s not uncommon to be enticed by a low introductory variable rate, only to have the rate increase through the term of the agreement. Variable rates are generally month-to-month allowing the customer to change energy plans without having to pay an early cancellation fee. If you think energy prices may drop, then you may want to consider going with a month-to-month plan. However, if the market spikes, you might be stuck paying a high rate.

Early Cancellation Fees

Most energy plans will include an early cancellation fee that will be applied if the customer changes energy providers before the term expires. Early cancellation fees can come in the form of a flat fee or a dollar amount multiplied by how many months are left in the agreement. These fees can range up to $300 so be sure you’re not locked into an agreement before changing energy companies!

Can I be Charged Twice by Separate Energy Providers?

It will be impossible to be charged twice by two separate energy companies for the same billing period. The utility company is responsible for overseeing the switch from the old provider to the new provider. For Chicago residents, this will be Commonwealth Edison. Once you make the switch, the new provider will notify ComEd, who will then notify your old provider before making the switch on your next available meter read.

Are There Additional Fees?

It’s common for energy plans to include additional fees, such as a monthly meter charge, that will be added on top of the energy charge. The terms and conditions of the plan will include all additional fees along with the rate. If you are receiving an offer that is too good to be true, it probably is. More than likely this plan will include additional charges that will make it more expensive than originally perceived. If you want to compare apples-to-apples, then be sure to read the details of each plan before signing up.

What Happens at the End of my Term?

If you don’t take action after the expiration of the agreement, then most energy suppliers will switch the customer to a month-to-month variable rate. Once this happens don’t be surprised to have the electric bill double or even triple on you in a single billing period. We recommend shopping around for a new energy plan a month before the old plan expires.

Chicago Renewable Energy

Over the past decade, Illinois has nearly tripled renewable electricity generated within the state. As of 2019, renewable energy makes up 8% of the total electricity generated. Wind is the primary source of renewable energy for electricity, making up nearly 97%. Illinois is among many states that have implemented a renewable portfolio standard (RPS). The RPS requires retail electric providers to have increasing proportions of their retail sales from renewable energy sources.

More energy suppliers are offering 100% renewable energy plans to their customers. If you’re looking to cut down on your carbon footprint, then you may want to consider switching to one of these plans. However, green energy plans usually require the customer to pay a high premium. Conventional plans with power generation from sources such as natural gas and nuclear energy tend to be more cost-effective allowing the customer to lock in lower rates.

Electric Rate Products	Pros	Cons
Fixed Rate	Remains fixed through duration of term Protects against market volatility Available to both commercial and residential customers	Might pay higher rate if energy market drops Comes with cancellation fee
Variable Rate	Most plans have no cancellation fees Available to both commercial and residential customers	Can easily double or triple in price Supplier can increase rate at their sole discretion
Index Rate	Historically lower than fixed rate plans Can be switched to a fixed rate plan without penalty Tied directly to the wholesale price of electricity	Exposure to market risk Only offered to large industrial size users
Renewable Energy Rates	A clean alternative solution Reliable source of power Available to both commercial and residential customers	You may pay a high premium More expensive than coal