Illinois Electricity Market: Rates, Providers, and Consumer Choice Current Illinois Electricity Pricing Overview

Data current as of June 2025.
Illinois electricity rates reflect the state’s competitive market dynamics, with pricing
that closely tracks national averages across different customer segments.

Commercial Electricity Costs:
• Average rate: 13.13¢ per kWh.
• Positioning: 1% below the national commercial average.
Residential Electricity Costs:
• Average rate: 17.59¢ per kWh.
• Positioning: 2% above the national residential average.
Source: U.S. Energy Information Administration (EIA) Illinois energy statistics.

The competitive marketplace established in Illinois since 1997 enables consumers to
actively select their electricity supplier and rate structure. Illinois residents and
businesses can leverage this deregulated environment to evaluate multiple energy
suppliers and secure optimal pricing. TrueVolt Energy streamlines this process,
connecting customers with suitable plans in under five minutes.

The History of Electric Deregulation in Illinois

Illinois pioneered electric market competition when Larry D. Habb, who served as
president and CEO of Illinois Power Company (the state’s second-largest utility at the
time), championed deregulation as a pathway to energy efficiency and cost reduction
in 1995.
This advocacy culminated in the passage of the Illinois Electric Service Customer
Choice and Rate Relief Law of 1997, which opened the electricity market to
competition for both residential and commercial consumers. This landmark legislation
transformed how Illinois residents’ access and purchase electricity.

Changing Electricity Providers in Illinois: A Step-by-Step Guide

Illinois’s competitive electricity market makes provider switching remarkably
straightforward. The process involves comparing available rate plans to identify
options that align with your consumption patterns and financial objectives.
Once you select a preferred plan, your chosen supplier manages the entire transition
process without service interruption. Your electricity continues flowing through your
existing utility infrastructure (ComEd, Ameren, etc.), but your new supplier sets your
electricity rate.

Important Considerations:
• Review existing contracts for early termination fees.
• Compare your current monthly costs against projected expenses with new plans.
• Verify that rate comparisons account for all applicable charges.

Illinois Utilities vs. Energy Suppliers: Key Distinctions

Utility Companies maintain and operate the physical electricity infrastructure
including power lines, substations, and distribution networks. Illinois utilities
encompass:
• Ameren Illinois.
• Cedar Point Light and Power.
• Central Illinois Light Company.
• Commonwealth Edison Company (ComEd).
• Electric Energy Inc..
• Illinois Power Company.
• Union Electric Company.
Your utility assignment is determined by your service address ZIP code. Each utility
manages electricity transmission from generation sources to end-users within their
designated service territories. The Illinois Commerce Commission maintains a
comprehensive directory of certified electric utilities.
Energy Suppliers function as competitive electricity retailers, purchasing power from
wholesale markets and reselling it to consumers. Notable Illinois suppliers include
Direct Energy, Entrust, and Public Power, among others.
Consumer contracts typically specify rate classifications, per-kWh pricing, contract
duration (commonly 6, 12, 24, or 36 months), and terms governing cancellation
policies and other contractual obligations.

Illinois Electricity Plan Categories

Illinois consumers can select from multiple plan structures designed to accommodate
varying usage patterns and financial preferences.
Fixed-Rate Plans maintain consistent per-kWh pricing throughout the contract period,
providing billing predictability and protection against market volatility.
Variable-Rate Plans allow pricing to fluctuate based on wholesale market conditions,
offering potential savings during low-demand periods but exposing customers to price
increases during peak seasons.
Time-of-Use Plans feature differential pricing based on consumption timing, typically
offering reduced rates during off-peak hours when system demand is lower.
Green Energy Plans source electricity from renewable generation resources, appealing
to environmentally conscious consumers willing to support sustainable energy
development.
Understanding these distinctions and conducting thorough rate comparisons helps
consumers select plans that optimize both their energy costs and usage preferences.

Illinois Business Landscape and Energy Consumption

Illinois supports a robust business environment with over 1.2 million active enterprises
spanning diverse industry sectors. Small businesses dominate the state’s economic
landscape, representing 98.2% of all business entities and employing approximately
2.4 million workers—nearly half of Illinois’s total workforce.
Companies with 100 or fewer employees drive significant job creation and economic
expansion across Illinois. Primary business sectors include Healthcare and Social
Assistance, Accommodation and Food Services, Manufacturing, and Professional,
Scientific, and Technical Services, demonstrating the state’s diversified economic
foundation.
These small and medium enterprises contribute substantially to Illinois electricity
demand patterns, influencing overall rate structures through their collective
consumption requirements.

Illinois Price to Compare Explained

The Price to Compare serves as a crucial benchmark for evaluating potential electricity
savings in Illinois. This metric represents the per-kWh rate charged by your local utility
company (ComEd, Ameren Illinois, etc.) for electricity supply services.
When assessing competitive supplier offers, the Price to Compare functions as your
baseline reference point. Suppliers offering rates below this benchmark may deliver
cost savings compared to your current utility supply rate.
Price to Compare rates fluctuate over time, making regular monitoring essential when
evaluating switching opportunities. Consider average rate trends when comparing
your existing plan against potential alternatives, as multiple factors including supply-
demand dynamics influence the most competitive available rates.

Establishing Electricity Service for New Illinois Residents

Relocating to Illinois requires coordinating electricity service establishment as a
fundamental step in your move. Initially, you will need to arrange delivery service
through your local utility provider (ComEd, Ameren, etc.) based on your new address.
Subsequently, Illinois’s deregulated market allows you to shop among competitive
electricity suppliers for optimal rates and plan features. This flexibility enables you to
select a provider that aligns with your energy consumption patterns and budget
parameters.
Research whether your new residence or business location qualifies for specialized
plans or promotional pricing that could reduce your electricity expenses.

Frequently Asked Questions About Illinois Electricity

Can Illinois residents select their electricity company? Yes, energy deregulation allows
Illinois consumers to choose their electricity supplier. While utilities like ComEd and
Ameren Illinois handle electricity delivery, consumers can shop among various
suppliers to find preferred rates and service options.
Which Illinois electricity supplier offers the lowest rates? The most cost-effective
supplier varies based on your location, consumption levels, and plan preferences.
Compare current offerings from suppliers including Constellation, Direct Energy, and
Reliant Energy using comparison platforms to identify optimal rates.
What is Illinois’s typical per-kWh electricity price? Illinois electricity prices generally
range from 7 to 12 cents per kWh, depending on your selected supplier and plan type.
Rates fluctuate based on market conditions, geographic location, and whether you
choose fixed or variable pricing structures.
What is average monthly electricity usage in Illinois? Illinois households typically
consume 700 to 900 kWh monthly. Usage varies based on home size, energy efficiency
measures, seasonal weather patterns, and individual consumption habits.
Why are Illinois electricity rates relatively high? Several factors contribute to Illinois
electricity pricing, including wholesale energy costs, transmission infrastructure
expenses, regulatory compliance costs, and market demand fluctuations. Extreme
weather conditions can temporarily increase demand and drive-up pricing.
Are Illinois electricity rates increasing? Recent trends show Illinois electricity rates
have experienced upward pressure due to rising energy commodity costs, regulatory
changes, and market demand factors. Securing fixed-rate contracts can provide
protection against future rate volatility.

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