Electric Bill Savings in Chicago
Electricity choice in Chicago allows savvy consumers to find the lowest power rates by shopping and comparing offers from competitive energy suppliers.
The incumbent utility company in Chicago, Commonwealth Edison, continues to deliver electricity to their customers. One of the major drawbacks consumers have about shopping for competitive electricity is their loyalty and familiarity to ComEd. Chicago consumers should understand that the Illinois electricity laws were set up to keep them as customers of ComEd. To understand how this works it is important to get a basic understanding of how the Commonwealth Edison electric bill is organized.
The charges on your ComEd electric bill are either part of the regulated delivery charges or the deregulated generation supply rates. The regulated delivery charges include distribution rates. These expenses are charged by ComEd. The charges are regulated by the Illinois Commerce Commission, just like they were before Illinois electric choice began. ComEd makes their money from these delivery (distribution) charges. They do not make their money from the generation supply rates.
The generation supply rates are the portion of the electric bill that allows you to have a choice and shop for competitive electric rates. They include the supply charges and the transmission charges on the ComEd electric bill. If you do not switch to a competitive electric supplier, you pay a default rate for these charges which has been termed the “price to compare” by the Illinois Commerce Commission. Even though ComEd and Ameren charge the price to compare rate, they do not profit from these expenses. Instead, the money generated from these fees are transferred over to competitive energy companies who have bid to serve default customers.
The Illinois electricity choice laws do not allow ComEd to offer competitive supply charges. They are strictly a regulated power delivery company. If you are a ComEd customer today, you will still be a ComEd customer after you choose a lower priced electricity plan with an alternative energy company. Electricity choice simply gives consumers the ability to choose who they buy their electricity from, which usually entails a lower ComEd electric bill.
If you can find a competitive electric rate that is lower than the ComEd price to compare than you will save money on your monthly electricity bill.
Shop now for low ComEd electricity rates.