How to Switch Electricity Providers in Illinois: A Step-by-Step Guide

Decoding Illinois Electric Choice: The Secret to Slashing Your Commercial Energy Bills

Since Illinois deregulated its electricity market in 1997, commercial customers have had the freedom to choose their electricity supplier. This means you're not stuck paying your utility's default rate. Understanding how electric choice works is the first step toward potentially saving thousands of dollars on your business energy costs.

What is Illinois Electric Choice?

Electric choice separates your electricity bill into two components:

• Supply (Competitive): The generation of electricity, which you can purchase from any licensed Alternative Retail Electric Supplier (ARES)
• Delivery (Regulated): The transmission and distribution of electricity, which remains with your local utility (ComEd or Ameren)

When you switch suppliers, only the supply portion changes. Your utility continues to deliver the electricity, read your meter, and handle emergencies. The Illinois Commerce Commission regulates both utilities and alternative suppliers to protect consumers.

Why Commercial Customers Benefit Most

Commercial and industrial customers often see the greatest savings from switching suppliers for several reasons:

Understanding the Price to Compare

Your utility publishes a "Price to Compare" (PTC), which represents the supply rate you'd pay if you don't choose an alternative supplier. This benchmark is essential for evaluating whether a supplier's offer represents savings:

• ComEd's Price to Compare: Updated periodically based on competitive procurement results
• Ameren's Price to Compare: Similarly updated to reflect market conditions
• Use as Benchmark: Compare supplier offers to the PTC to estimate potential savings

Keep in mind that the PTC can change, so a rate that beats today's PTC might not beat future versions. This is where fixed-rate contracts provide value by locking in your rate regardless of future PTC changes.

Arm Yourself with Data: How to Decipher Your ComEd or Ameren Bill for Maximum Savings

Before you start comparing suppliers, you need to understand your current electricity usage and costs. Your bill contains all the data suppliers need to provide accurate quotes. Here's how to extract the key information:

Essential Information from Your Bill

Requesting Interval Data

For larger commercial accounts, suppliers often request interval data, which shows your usage in 15-minute or hourly increments. This detailed data enables:

• More accurate pricing based on your actual load profile
• Identification of demand reduction opportunities
• Evaluation of time-of-use rate options
• Better capacity tag assignments that affect your supply costs

Request interval data from your utility's commercial services department or through their online business portal. ComEd and Ameren both provide this data to authorized account holders.

Calculating Your Current Cost Per kWh

To accurately compare offers, calculate your all-in cost per kWh:

1. Find your total supply charges for a billing period
2. Divide by your total kWh usage for that period
3. The result is your current supply rate per kWh

For businesses served by commercial electricity suppliers in Illinois, understanding this baseline cost is essential for evaluating potential savings.

The Ultimate ARES Comparison Checklist: 7 Red Flags to Avoid When Choosing a Supplier

Not all electricity suppliers are created equal. While Illinois' competitive market offers great opportunities, it also includes some offers that look better than they are. Use this checklist to evaluate suppliers and avoid common pitfalls:

Red Flag #1: Rates That Seem Too Good to Be True

If a supplier's rate is dramatically lower than competitors, investigate why:

• Is it an introductory rate that increases later?
• Are there hidden fees or pass-through charges not included in the quoted rate?
• Is the supplier financially stable enough to honor the contract?

Red Flag #2: High-Pressure Sales Tactics

Legitimate suppliers don't pressure you to sign immediately. Be wary of:

• Claims that the offer expires today
• Door-to-door salespeople demanding immediate decisions
• Refusal to provide written documentation before signing

Red Flag #3: Unclear Contract Terms

Every contract should clearly state:

• The exact rate per kWh
• Contract length and start date
• What's included vs. passed through
• Early termination fees
• Renewal terms

Red Flag #4: No ICC License

All legitimate ARES must be licensed by the Illinois Commerce Commission. Verify licensing at the ICC website before signing any contract.

Red Flag #5: Excessive Early Termination Fees

While early termination fees are standard, excessive penalties should raise concerns:

• Fees exceeding $200 for small commercial accounts
• Fees calculated as remaining contract value rather than a flat amount
• Termination clauses that favor only the supplier

Red Flag #6: Auto-Renewal Without Notice

Many contracts auto-renew at potentially higher rates. Look for:

• Clear notice requirements before renewal
• Your right to decline renewal without penalty
• What rate applies upon renewal

Red Flag #7: No Customer Service Information

Ensure the supplier provides:

• Clear contact information for customer service
• Reasonable response time commitments
• A process for resolving disputes

Positive Signs of a Quality Supplier

Look for these indicators of a reputable ARES:

Making the Switch: What Really Happens Next? (Spoiler: It's Seamless & There's No Downtime)

Once you've selected a supplier and signed the contract, the switch happens behind the scenes. Here's exactly what to expect:

The Enrollment Process

1. Contract Signing: You sign the supplier's agreement, either electronically or on paper
2. Enrollment Submission: The supplier submits an enrollment request to your utility
3. Utility Verification: ComEd or Ameren verifies your account and processes the switch
4. Confirmation: You receive confirmation from both the supplier and utility

Timeline for Switching

The switch typically takes 1-2 billing cycles to complete:

• Enrollment Processing: 3-5 business days for utility to accept the enrollment
• Meter Read Alignment: Switch occurs at your next meter read date
• First New Bill: Your next bill after the switch reflects the new supplier

No Service Interruption

It's essential to understand that switching suppliers does not involve:

• No Physical Work: No one needs to visit your facility
• No Power Interruption: Electricity flows continuously throughout the switch
• No Quality Change: The same electrons reach your business; only the billing changes
• No Delivery Change: Your utility continues handling delivery, outages, and emergencies

Your Ongoing Relationship

After the switch:

• Billing: Most customers receive a consolidated bill from the utility that includes both supply and delivery charges. Some suppliers offer separate billing.
• Customer Service: Contact your supplier for supply-related questions and your utility for delivery, outages, or emergencies.
• Contract Management: Track your contract end date and begin shopping again 60-90 days before expiration.

What If You Want to Switch Again?

If your contract expires and you want to switch to a different supplier:

• The process is identical to your original switch
• Your current supplier will be notified automatically
• The new supplier takes over at your next meter read after enrollment

If you're under contract and want to switch early, review your termination provisions carefully. The savings from a better rate may outweigh termination fees for high-usage accounts.

Special Considerations for Illinois Businesses

Multi-Site Businesses

If your business operates multiple locations in Illinois, consider aggregating accounts:

• Combined volumes often qualify for better rates
• Simplified administration with one contract and renewal date
• Consistent energy strategy across locations
• Whether locations are in Chicago, Joliet, or Peoria, aggregation can streamline management

Seasonal Businesses

If your business has significant seasonal variation:

• Ensure contract terms accommodate usage fluctuations
• Ask about bandwidth provisions for usage variances
• Consider index pricing for portions of your load

Growing Businesses

For businesses expecting growth:

• Negotiate terms that allow for additional locations
• Consider shorter contract terms for flexibility
• Discuss scalable pricing structures with suppliers

Frequently Asked Questions

Conclusion: Take Control of Your Business Energy Costs

Switching electricity suppliers in Illinois is a straightforward process that can deliver meaningful savings for your business. By understanding electric choice, gathering your usage data, carefully evaluating suppliers, and managing the switch process, you put your business in control of its energy costs.

Key takeaways:

• Illinois' deregulated market gives you the power to choose your electricity supplier
• Your usage data is essential for getting accurate, competitive quotes
• Not all suppliers are equal; verify licensing and review contract terms carefully
• The switch process is seamless with no service interruption
• Regular shopping keeps your rates competitive over time

Start your journey toward lower electricity costs today by gathering your recent bills and comparing offers from licensed alternative suppliers.