Compare Illinois Electricity Rates
Contents
- 1 Compare Illinois Electricity Rates
- 2 Illinois Utility Companies
- 3 How to Check the Price to Compare on your Electric Bill
- 4 How to Calculate Energy Savings
- 5 Ameren Illinois is taking Steps into Going Green
- 6 What is Community Solar?
- 7 The Benefits of Community Solar
- 8 An Overview of the Energy Market in Illinois
- 9 Illinois Utility Companies
- 10 Electric Suppliers
- 11 Utility Companies
Before 1997, residents in Illinois were paying some of the highest electricity rates in the country. Then state lawmakers passed The Illinois Electric Service Customer Choice and The Rate Relief Law. Implemented in 1999, this law made energy choice a reality and was the first major step in bringing down energy prices in the state. The utility companies no longer had a monopoly on energy prices. Now residential and commercial customers could finally shop around for a competitive retail energy supplier.
With the introduction of energy choice, energy suppliers now have to compete to earn your business. This level of competition tends to lower generation rates across the board. The utility companies act as the supplier of last resort and will continue to provide energy services to customers that choose not to shop around. The main job of these utility companies is to maintain the lines and wires that deliver the electricity to your home or business.
Residents in Illinois have different options when shopping around for a retail energy supplier. The Illinois Commerce Commission provides a list of alternative retail electric suppliers (AERS) certified to do business in the state. However, you may also search for a competitive energy supplier through our website. Our group of energy experts will be able to answer all your questions and will match you with a supplier that meets your needs. Whether you’re shopping for 100% renewable energy or want the lowest rates, our team will be able to guide you through the process.
Illinois Utility Companies
Commonwealth Edison (ComEd) and Ameren Illinois are the two utility companies in Illinois. Since the implementation of energy choice in 1999, they have continued to provide energy services to customers that have not switched to an AERS. The utilities are regulated by the state and provide a standard generation rate that can be used when shopping for an AERS. This rate is commonly referred to as the price-to-compare. ComEd and Ameren Illinois encourage customers to shop around as their profit margins are not affected by switching customers.
Commonwealth Edison (ComEd) is the largest electric utility in Illinois with its service area covering much of the northern part of the state. ComEd provides energy to more than 3.8 million customers and acts as the supplier of last resort. ComEd customers are free to choose a competitive energy supplier while having their electricity delivered to them directly by the utility company.
How to Check the Price to Compare on your Electric Bill
The price to compare is the supply rate on the electric bill that is used while comparing energy prices. Most utility companies will make it simple and label the price to compare right on the electric bill. However, there are a few cases when you will have to calculate this rate. There is no need to worry! The method is simple. Simply take the total-supply charge dollar amount and divide it by the kilowatt-hours used during the billing period. This will give you the current price to compare.
In the above example, the total-supply charge dollar amount is $310.90 (highlighted in yellow). The kilowatt-hours used during the billing period is 4,800 (highlighted in red). Divide $310.90 by 4,800 and you will get a price to compare of 6.48 cents per kWh. This will be the rate the customer will use while shopping around for a competitive offer. If an alternative electric retail supplier is offering a rate lower than the price to compare, then you will be saving money.
How to Calculate Energy Savings
Every customer wants to know how much they will be saving on the electric bill by signing up with an alternative retail electric supplier. Once you understand the price to compare then calculating the savings is easy. To understand how much you will be saving, subtract the rate offered by the energy supplier from the price to compare, then multiply the difference by the kilowatt-hours used during the billing period.
In the example above the price to compare is 6.48 cents per kWh. Let’s say an alternative retail electric supplier is offering a fixed rate of 5.50 cents per kWh. Simply subtract 5.50 cents from 6.48 cents and multiply the difference by 4,800. This will show energy savings of $47.04. On an annual basis, the savings will add up to over $500!
Ameren Illinois is a subsidiary of Ameren Corporation, a Fortune 500 company. Employing more than 9,000 workers, Ameren delivers energy to more than 2.4 million electric customers and 900,000 natural gas customers over a service area of 64,000 square miles. Ameren is currently the third-largest distributor of natural gas in Illinois in the total number of customers.
Ameren Illinois is taking Steps into Going Green
A new Illinois law has made it easier for residents to enjoy the benefits of renewable energy from a Qualifying Facility. A Qualifying Facility is a Distributed Generation that is set up with Ameren Illinois that meets Federal Energy Regulatory Commission’s (FERC). These facilities are considered non-utility generation units and are equipped to provide electricity from renewable energy sources. This has helped paved the way for Ameren customers to take advantage of projects such as community solar.
What is Community Solar?
Community solar gives residents the benefits of solar energy without the hassle of installing solar panels on your home. Once you subscribe to community solar, you can begin to enjoy the benefits of having a percentage of your power generation supplied by a Qualifying Facility using renewable energy sources. The Qualifying Facility can be located anywhere in the service area of Ameren Illinois.
The Benefits of Community Solar
- Reduces your carbon footprint
- No installation of solar panels on your home required
- Reduces the electric bill
- Zero maintenance costs
- Diversifies your source of power
An Overview of the Energy Market in Illinois
Illinois is the fifth-largest consumer of energy in the United States. Unlike Rhode Island, where power generation from coal is virtually zero, Illinois has the second-largest coal reserves in the nation, just behind Montana. However, due to stricter regulations that target a decrease in carbon emissions, power generation from coal dropped 27% in 2019. This trend is expected to continue as more coal-fired generation plants are expected to close soon.
Another major source of power generation in Illinois comes from nuclear energy. More than 50 percent of the state’s net generation is produced by six nuclear power plants. All six are included among the 10 largest net generation power plants in the state. In late 2016, Illinois legislature approved zero-emission credits for nuclear generators to guarantee the operations of all six nuclear power plants for the next decade.
As of 2019, renewable energy accounts for eight percent of the electricity produced in Illinois. Given the state’s flat landscape and geographical location near the Great Lakes, wind provides well over 90 percent of the net generation from renewable sources. This percentage is expected to grow as wind power generation projects in the state are in the late stages of development.
