The state of Illinois was deregulated in a far different fashion than Texas with the passage of their new law in 1997. The law provided a phased-in approach to competition by lowering and capping rates immediately for residential customers.
Large industrial customers were able to begin receiving their electric supply from competitive suppliers beginning in late 1999. The ability to use a competitive supplier was offered to other industrial and large commercial customers over the next few years with all customers, including residential customers, able to use competitive suppliers beginning in 2002.
While Illinois customers have had the ability to purchase their electricity competitively, many had not due to the imposition of stranded costs along with the capped prices offered by the legacy utilities. As of January 2, 2007, these and other barriers were removed. Those caps remained in force for 10 years. While the caps were in place it was not lucrative for alternative REPs to participate. Residential customers only began, in actuality, to be serviced by alternative providers May last year.
Many new retail providers are now entering that states market due to a decision made in December by the ICC that makes it easier for alternative providers to bill for their services through the legacy or incumbent utility company and a rule change dealing with the purchase of receivables with consolidated billing. Prior to this, introduction of retail competition for residential customers was somehow hindered.
The Citizens Utility Board, a strong consumer advocacy organization created by the Illinois General Assembly in 1983, has just published a fact sheet explaining the current situation. Click here to read the fact sheet. Note the rates being paid and the few number of REPs for the one major service area.
You may also want to visit the state of Illinois' counterparts to our PUC and Power To Choose websites. Click on their links.
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