#United States #Chicago #Citizens Utility Board #ComEd #Ameren

Illinois Residents Face Billions in Losses to Alternative Energy Suppliers

A recent review by the Citizens Utility Board (CUB) has shed light on the staggering financial losses incurred by residential customers of Commonwealth Edison (ComEd) and Ameren Illinois. Over the past decade, these households have collectively lost a staggering $2.17 billion to alternative electricity suppliers, with over $258 million of that occurring just in the last year alone.

The Financial Impact

According to the findings, many Illinois residents who opted for alternative suppliers have paid significantly more for their electricity compared to those who stayed with traditional utility companies. The average ComEd customer using an alternative supplier faced higher rates, paying an extra 2.74 cents per kilowatt-hour (kWh). In the case of Ameren customers, they were charged an additional 1.78 cents per kWh. Alarmingly, the rates from some alternative suppliers soared as high as 39 cents per kWh in ComEd's region, which is about four to six times higher than utility supply prices.

Since the advent of competition in the energy market, particularly from 2011 to 2014, Illinois residents often benefited from lower prices offered by alternative suppliers. However, as utility companies transitioned from long-term, higher-price contracts, the competitive landscape changed, and many alternative suppliers found it increasingly difficult to offer cost-effective rates. CUB's report highlights this shift, warning consumers to approach alternative energy options with caution.

CUB’s Executive Director, Sarah Moskowitz, emphasized the risks involved, stating, “The numbers show that going with an alternative supplier can be a risky, financially painful gamble. This is a buyer-beware market.” With many households unaware that they could be overpaying for electricity, CUB is urging state legislators to enhance consumer protections to prevent deceptive practices within the sector.

Recent Trends in Supplier Choice

As of May 2025, data indicates that approximately 1.18 million Illinois households were enrolled with alternative suppliers, reflecting a 14% decrease from the previous year. Notably, about 20% of ComEd's residential customers and 43% of Ameren's customers have opted for these alternative suppliers, signifying a potential shift back towards traditional utility services amidst rising costs.

Legislative Changes Needed

Illinois enacted the Home Energy Affordability and Transparency Act (HEAT) in 2019 to bolster consumer protections in the energy market. However, CUB is advocating for additional reforms encapsulated in House Bill 1284, which would mandate that customers provide explicit consent if a supplier seeks to increase rates during renewal. Furthermore, the bill aims to prohibit commission-based compensation for sales representatives, promoting ethical sales practices and protecting consumers from aggressive high-pressure tactics.

Consumer Tips

To safeguard their finances, CUB offers several tips for consumers:

• - Check Your Bill: Regularly review the ‘Supply’ section of your bill to confirm if you are with an alternative supplier. Many customers only realize they're enrolled when they notice significant spikes in their bills.

• - Understand Pricing: Be aware that alternative suppliers are not immune to market fluctuations, and the rates might be higher than those offered by utility companies.

• - Beware of High-Pressure Sales: Avoid giving out personal information or account details to aggressive representatives. Verify any offers through official channels rather than home visits.

• - Look for Hidden Fees: Some alternative energy contracts may include unexplained fees. Always read the fine print.

• - Consider Energy Efficiency Programs: Instead of switching suppliers, explore no-cost energy efficiency options through ComEd and Ameren to effectively lower your energy use and bills.

With the continuing evolution of Illinois' energy market, it’s critical for customers to remain informed and vigilant. For over 40 years, CUB has championed the rights of utility consumers, helping them save billions and advocating for sensible legislation to protect residents from predatory practices by energy suppliers. For assistance or more information, residents are encouraged to contact CUB via their consumer hotline or website.