Illinois became the first state in the Midwest to pass an energy deregulation bill in 1997, opening up the state’s electricity market to competition that allows residents to choose their electricity supplier. Select from more than 50 electricity suppliers in the Prairie State, each offering opportunities for the lowest kilowatt-hour rates and a variety of energy plans to compare.
Finding the lowest electricity rates in Illinois requires comparing retail electric providers and energy plans to find the best fit to power your home or business. But first, you’ll want to know your average electricity use.
You have many independent electricity suppliers to choose from in Illinois, each offering different rates and energy plans. Factors to weigh when researching your options come down to rates and the type of plan that fits your electricity needs and budget.
Providers in Illinois offer the choice of fixed, variable or hybrid kWh rates:
For variable rates, ask your potential provider if it limits how much rates can fluctuate, which can help you keep costs manageable.
Get the cheapest quotes on your electricity provider
Enter your ZIP code to see electricity providers near you.
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Energy in the Prairie State is delivered through a complex system of utilities, ARES and co-ops that work together to get electricity from power plants to your front door.
The IPA is a nonprofit that buys Illinois’s electricity on behalf of the two major electric utility companies, CommonWealth Edison and Amaren. It develops buying plans with a mission to “ensure adequate, reliable, affordable, efficient and environmentally sustainable electric service at the lowest total cost over time.”
The ICC is a state agency that regulates many of the public utilities offered to residents of Illinois, including electricity — here, public utilities also refers to private, nonmunicipal utilities in the state, a quirk of language around deregulation in Illinois.
The ICC is involved in how electricity is generated, supplied and delivered to homes and businesses in the state. Walking the line between fostering competition and protecting consumer rights, the agency doesn’t endorse alternative retail electric suppliers — or ARES.
IMEA is a local nonprofit comprising 32 municipal electric systems across Illinois made up of 67 municipalities and nearly 70 members. Those systems own and operate their own electric distribution systems, with a handful of them operating their own generation plans. Until at least 2035, IMEA is responsible for buying electricity at wholesale prices, passing along the savings to cities within the agency.
Electric utilities generate and deliver the electricity that powers homes and businesses. The three utilities in Illinois cover a specific territory.
| Electric utility | Assigned territory |
| Ameren Illinois | Covers more than 1,200 communities in central and southern Illinois. |
| CommonWealth Edison (ComEd) | Largest electric utility powering more than 4 million customers in northern Illinois, including Chicago. |
| MidAmerican | Smaller electric utility in Illinois |
Established in 1942, the Association of Illinois Electric Cooperatives today represents some 30 electric member-cooperatives representing 15 electric distribution cooperatives and five generation and transmission cooperatives. It lobbies for the interests of co-ops and manages utility supplies and services.
More than 50 ARES in Illinois are certified by the Illinois Commerce Commission to buy electricity wholesale and transmit and deliver it to homes and businesses in the state, among them:
Most ARES in Illinois offer renewable or clean energy plans that come from natural sources or replenished processes, like wind, hydro or solar energy.
Finding the lowest electricity rates in Illinois requires comparing retail electric providers and energy plans to find the best fit to power your home or business. But first, you’ll want to know your average electricity use.
You have many independent electricity suppliers to choose from in Illinois, each offering different rates and energy plans. Factors to weigh when researching your options come down to rates and the type of plan that fits your electricity needs and budget.
Providers in Illinois offer the choice of fixed, variable or hybrid kWh rates:
For variable rates, ask your potential provider if it limits how much rates can fluctuate, which can help you keep costs manageable.
Get the cheapest quotes on your electricity provider
Enter your ZIP code to see electricity providers near you.
Your information is secure.
Many suppliers and providers offer lower advertised rates or bonuses to entice new customers. These bonuses can be reflected as a lump-sum savings or percentage knocked off the standard rate.
Introductory rates can last the first quarter of your contract, for six months or even the full term. Read the fine print of any offer to understand the rate you’ll pay after the bonus and avoid overpaying for your energy in the long term.
Understand the contract system of any supplier you’re interested in. Look at available terms, how the supplier handles renewals and whether you can cancel before your contract ends.
Your electricity bills include home energy costs that can vary by utility provider or supplier.
If you choose an alternative energy option, your energy bill may include fees associated with the renewables you choose.
After you’ve found an electricity provider that fits your energy needs, gather up a current monthly bill and get ready for the big switch.
Suppliers in Illinois are prohibited from charging early termination fees or penalties to residential and small commercial retail customers who terminate their contracts and switch to a different supplier.
Energy suppliers in the Prairie State highlight the financial benefits of electricity choice, further advertising the benefits to the environment through renewable energy.
Results of deregulation are mixed, and there’s research to suggest that it doesn’t lead to the savings it promises over the regulated market. There’s also the potential for suppliers to lure customers into plans without transparency around the risks.
The state passed the Illinois Electric Service Customer Choice and The Rate Relief Law in 1997, ushering in deregulation with the separation of supplying electricity from the state’s biggest utilities. By 2002, commercial customers had gained the ability to shop for energy suppliers, followed by access to residential customers in 2006.
Rates were frozen for 10 years under a mandatory transition period. Today, some 75% of commercial and industrial businesses are powered by alternative retail electric suppliers.
In July 2020, the US Attorney’s office fined Commonwealth Edison Company a whopping $200 million after it was revealed the utility attempted to bribe a politician in exchange for pushing legislation favorable to ComEd — including laws that regulate electricity rates.
The government found that ComEd benefited from the scheme “at the expense of Illinois utility customers.” The scandal has prompted refunds to customers and an overhaul of utility regulation in the state, which continues into 2022.
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