Illinois: Latest Success Story in Competitive Electricity Market Implementation

Two interesting news items today out of Illinois again demonstrating how electricity competition is benefitting consumers in that state.

First, an op-ed in today’s State Journal-Register by Kevin Wright, president of the Illinois Competitive Energy Association highlights the progress made since competition was adopted ten years ago by the Illinois General Assembly.  He notes, “the electricity market in Illinois is among the most robust nationwide. There are now 37 alternative retail electric suppliers licensed to serve business consumers and eight suppliers eligible to serve residential consumers.”

Wright cites some striking numbers pulled from the 2009 Retail Market Development Annual Report… “Before restructuring, Illinois consumers paid 12 percent above the national average. They now pay 6 percent below the national average. When adjusted for inflation, Illinois consumers pay 11 percent less now than they did in 1997. One estimate puts the total savings for Illinois electricity consumers in excess of $1 billion in the past decade.”

A second article today, in Electric Power Daily, provides even more significant figures… In Illinois, 97% of the largest customers of Commonwealth Edison and Ameren Illinois having switched to competitive suppliers as of late this year.  Further, “the Illinois Commerce Commission proclaims in the report that retail competition ‘has taken a strong hold in almost all non-residential customer classes in the Ameren Illinois and ComEd territories. The switch to RES service for the largest customers [over 1 MW load] is approaching 100%.’

Illinois is just another in the list of success stories around the country where states are successfully implementing open and competitive markets.

Joel Malina | December 4, 2009