Chicago Electricity Rate Savings
The city of Chicago is finally experiencing the results of having a competitive electricity market, and the results are more choices and lower energy prices. Electricity choice is still a relatively new concept for most Chicagoans, but that is quickly changing as customers are switching off of the local utility default rate in record numbers.
Commonwealth Edison (ComEd) has served as the regulated electric monopoly for the city of Chicago and the surrounding areas since the early days of mass electricity use. The passage of the Illinois electric choice laws in 1997 unbundled ComEd from a full-service electric monopoly – generation, transmission, distribution – to just a regulated electricity delivery company in charge of the maintenance and management of the distribution lines and wires.
ComEd is also responsible for providing a default generation rate to those consumers who are slow to shop for lower electricity rates. However, ComEd does not profit from the generation default rate (Price to Compare) that they offer. They instead just pass on the price of electricity to their customers. ComEd actually wants its customers to shop for lower-priced electricity. ComEd’s revenues come from the distribution charges found on the bill. The distribution charges remain regulated by the state of Illinois.
If a lower electricity price can be found versus the ComEd price to compare the customer will save money on their electric bill. Electricity savings have become the primary motivation for electricity users to shop for lower rates. Other incentives include the ability to purchase green energy, better customer service, and sign-up promotions.
Chicago electricity rate savings seem to be here to stay. Customers can expect to see even more electric rate options as more competitive power companies continue to enter the Chicago market.
Here is a list of updated low electricity rates in the Chicago ComEd area: