Electricity deregulation has become a popular option for consumers across the United States. More and more states are opening up energy markets to make sure that consumers have price and service options when purchasing their electricity. Illinois began this journey more than a decade ago and has gone through several transitions since, consistently improving the options for private residential consumers as well as large commercial operations.
Illinois' journey to electricity deregulation began in 1997. The formality of electricity deregulation started with the passage of the Illinois Electric Service Consumer Choice and Rate Relief Law of 1997. This legislation took Commonwealth Edison Company and Ameren Illinois Utilities and allowed large businesses the option of purchasing electricity from the ARES.
While homes and small businesses weren't allowed to buy their energy from the ARES, legislators from the Illinois Commerce Commission decreased electricity rates by twenty percent and kept them in place for a period of ten years to compensate consumers for the lack of choice. While there is no actual change of power lines, power poles or other methods to delivering power to homes and businesses, deregulation has allowed Illinois' commercial consumers to purchase power from alternative retail electric suppliers (ARES), offering additional competition in the market and decreased rates.
Since 2007, when the residential rate freeze ended, the electric prices in Illinois from electric companies have dramatically increased – some of up to 50% due to the fact that for the period of ten years prior. Two things happened at that point. The General Assembly of Illinois passed a new bill called the Illinois Power Agency Act which offered one billion dollars in rate relief over four years to residential and commercial users of electric services. Secondly, ARES became available to some residential users. By 2009, some 71,000 businesses had changed utility services.
Luckily, there are now many options for Illinois users who want to investigate more economical energy options. Whether for a home, small business or large industrial operation, there are now 52 companies listed as part of the ARES service, offering market rates to those looking for the best rates and service they can get for their electricity.
The history of electricity deregulation in Illinois has taken time to positively effect the market since the inception of the original legislation in 1997. Today, despite the changes that deregulation has brought, both home-based and commercial consumers benefit from lower electric prices and a choice of electric companies.
