Illinois’ Competitive Electricity Market Expands Into New Territory

The Prairie State’s competitive electricity market, already one of the nation’s most successful, is making progress toward fuller retail competition. The 2010 Annual Report from the Illinois Commerce Commission’s (ICC) Office of Retail Market Development finds customers are now shopping across every commercial and industrial customer electrical market segment, and takes an optimistic view that competition is poised to make great inroads in the residential sector.
 
The report found more than half the total electric load of the state’s two largest electric companies is now provided by alternative power suppliers. Competition’s reach is notable in the non-residential market segments – 76 percent of Commonwealth Edison’s (ComEd), 83 percent of AmerenIP’s, 69 percent of AmerenCIP’s and 81 percent of AmerenCILCO’s total non-residential load was provided by alternative power suppliers as of May 31, 2010.
 
Major gains were especially evident in the small commercial customer market segment. All four utility service areas experienced notable increases in shopping for electricity supply among the smallest commercial customers, continuing an upward trend begun in recent years. At least one-third of all small commercial customers in each of the four major utility territories are now served by alternative power suppliers.
 
Statewide, 41 alternative power suppliers have been certified by the ICC to provide competitive electricity supply to customers. Within ComEd’s territory, 22 suppliers were actively selling electricity as of December 2009, and 12 suppliers were actively selling electricity in the combined Ameren Illinois Utilities (AIU) territory. A detailed list of suppliers certified by the ICC and registered by utilities to provide service is available on the state’s “Plug in Illinois” website.
 
Positive signs are also evident in the report for the state’s residential market segment. BlueStar Energy Services recently expanded an existing pilot program to the AIU territory and announced two different residential product offers in the ComEd territory – the first example of direct marketing by an alternative power supplier to residential customers in Illinois. In addition to the existing offers, 10 suppliers have obtained certification from the ICC to serve residential and small commercial customers and two more certification applications are pending.
 
The ICC’s report is yet another example of how competition delivers economic benefits to consumers when a well-structured electric market is allowed to mature. “Customers are saving on cost and getting products that are customized to them,” said Kevin Wright, President of the Illinois Competitive Energy Association.
 
A recent report estimated competition has saved Illinois over $1 billion in the past decade. As market forces attract even more competition, these savings will continue increasing for consumers.

Joel Malina | July 14, 2010