* Stephanie Zimmermann at the Sun-Times…
Customers of ComEd and Ameren Illinois have lost more than $2 billion over the past 10 years to alternative electricity suppliers — businesses known for ringing people’s doorbells and promising great deals, according to an analysis of state data by the nonprofit Citizens Utility Board.
CUB Executive Director Sarah Moskowitz called Illinois “a buyer-beware market.”
The offers are legal, but often they don’t deliver long-term savings, according to the consumer watchdog, which is calling for better consumer protections.
In the past year, consumers who used alternative suppliers for electricity overpaid by $258 million, the analysis found.
A Sun-Times investigation last year found that decades after Illinois deregulated electricity and natural gas markets, consumers continue to complain about alternative suppliers. Some said they didn’t realize their accounts had been switched until their bills shot up. Other consumers willingly signed up for an alternative supplier’s deal but complained that their bills rose higher than expected after the introductory rate ended.
* From CUB…
While ComEd and Ameren bill customers for delivering electricity over the power lines they own, under Illinois law those customers can choose another company—an alternative supplier—to supply the actual electricity. The Illinois Commerce Commission’s Office of Retail Market Development (ORMD) recently released its 2025 annual report, covering June 1, 2024 through May 31, 2025. Some findings:
● As of May 2025, about 1.18 million Illinois households were with an alternative supplier—about a 14 percent decrease from the year before. About 20 percent of ComEd residential customers and about 43 percent of Ameren customers were with an alternative supplier.
● ComEd customers who were with an alternative supplier on average paid about 2.74¢ per kilowatt-hour (kWh) more, compared with ComEd’s supply price. Ameren customers who were with an alternative supplier on average paid about 1.78¢ per kWh more, compared with Ameren’s supply rate.
● The highest alternative supplier rates the ICC found were a 39¢ per kWh variable rate (a rate that can change monthly) in ComEd territory, and a 29¢ per kWh variable rate in Ameren territory. Both prices were about four to six times the utility supply prices at the time.
● In the early days of competition—2011 to 2014—Illinoisans often saved money with alternative suppliers, mainly because utilities were locked into higher-priced electricity contracts. But after those contracts ended, suppliers had a harder time beating utility prices, according to CUB’s review of ORMD reports.
* I asked a CUB spokesperson why we have to have all of these alternative suppliers? Jim Chilsen’s reply…
Supply choice exists because Illinois is a deregulated state. In some communities leaders have negotiated decent deals with alternative suppliers through municipal aggregation (”community power deals”).
But that’s different from sales reps doing in-person marketing, sending you mailers or calling you on the phone. Nobody can guarantee savings–and in fact the market has been rife with rip-offs and scams.
We tell people: It’s a buyer beware market, your best bet is likely the utility. That’s why we’re pushing for more consumer protections–HB 1284. That would be another step in the right direction.
* From HB 1284’s synopsis…
Prohibits alternative retail electric and gas suppliers from paying incentive-based compensation to people engaged in in-person solicitation or telemarketing. Provides that certain tariffs may be filed by an electric utility with respect to electric utilities providing supply service through an electric aggregation program. Provides that an alternative retail electric utility supplier or alternative gas supplier shall not automatically renew a consumer’s enrollment after the current term of the contract expires when the renewed contract provides that the consumer will be charged a rate higher than the current contract rate unless: (i) the alternative retail electric supplier or alternative gas supplier complies with specified notice and disclosure requirements; and (ii) the customer expressly consents to the contract renewal in writing or by electronic signature at least 30 days, but no more than 60 days, before the contract expires.
Everybody talks about affordability, but not enough people want to actually do something about it.
- Thomas Paine - Friday, Aug 22, 25 @ 11:11 am:
I would require alternate suppliers to disclose in their monthly statements what the bill would have been if the customer had been with the utility instead, and a similar annual statement with the contract renewal agreement.
If in fact they are saving consumers money, they should have no objection.
There ya go, ComEd.
- Telly - Friday, Aug 22, 25 @ 11:39 am:
== Supply choice exists because Illinois is a deregulated state ==
Lots of pluses and minus to deregulation. Alternative retailers were a plus and turned into a minus.
- jolietj - Friday, Aug 22, 25 @ 12:00 pm:
“Everybody talks about affordability, but not enough people want to actually do something about it.” This times x1000.
- Treefiddy - Friday, Aug 22, 25 @ 12:13 pm:
Funny, just had someone come to the door saying I was “selected” by the city of Decatur for a solar program operated by a CBU-approved supplier that’d lower my energy costs. The company at least exists, but a quick Google search showed they’re being sued by several northeastern states over deceptive business practices. It’s things like this that have me so reluctant to go with alternatives.
- All Thar - Friday, Aug 22, 25 @ 12:33 pm:
In Vermilion County one has to opt “out” of, not “in” to one of these plans.
The County Board has taken some kind of fee up front for this goofy arrangement.
A loser all around. At minimum, citizens should have to proactively opt in to these plans so they at least know what is happening.
- Macon Deliberations - Friday, Aug 22, 25 @ 12:34 pm:
Yeah the dude wouldn’t let me take time to consider it was either sign up or don’t have the opportunity to sign up so I signed up with vista energy which is based in Houston after being told it would save me money.
- Aaron B - Friday, Aug 22, 25 @ 1:09 pm:
==A loser all around. At minimum, citizens should have to proactively opt in to these plans so they at least know what is happening.==
Every municipal/county aggregation agreement I’ve seen says that the supply price will be no higher than the default ComEd rate. In those cases, residents will be at worst pay the same exact price they would pay if ComEd was their supplier. I do not have any issue with these programs being ‘opt out’ as long as nobody will pay higher than the default rate.
The problem here isn’t related to the aggregation programs at all, the problem is 100% the people roaming around the neighborhoods and Walmart asking to see your electric bill and promising savings they won’t give. I had the bloke in Walmart argue that his alternative supplier would save me even more money than I’m already saving on ComEd’s hourly pricing.
- 47th Ward - Friday, Aug 22, 25 @ 1:13 pm:
The door-to-door sales guys keep getting more brazen in my area. They stop by every couple of months. It used to be with a pitch to lower electricity costs, now the poorly trained salesmen simply demand to see my ComEd bill without exactly explaining why.
Having spent time going to doors for candidates, I have some sympathy. They were offered what sounded like a decent job. But then found that taking short cuts, like using a ComEd customer’s billing info to make the provider switch without consent, led to more success for them. It’s fraud, plain and simple (not all of these salesman do this, but it’s common enough to tarnish them all).
- Dotnonymous x - Friday, Aug 22, 25 @ 1:37 pm:
- It used to be with a pitch to lower electricity costs, now the poorly trained salesmen simply demand to see my ComEd bill… -
Don’t show them your bill they will “slam” your account without your knowledge.
When they come to my door?…I answer in Spanish or German…they walk away befuddled.
- Nope - Friday, Aug 22, 25 @ 2:08 pm:
“”Every municipal/county aggregation agreement I’ve seen says that the supply price will be no higher than the default ComEd rate.””
I’ll bet you cannot show me one. What you’re describing is a guaranteed loss for the ARES business. None of them guarantee
you’ll pay no more than Comed
- low level - Friday, Aug 22, 25 @ 2:27 pm:
I knew it was bogus as soon as I got the mailer
- Aaron B - Friday, Aug 22, 25 @ 2:29 pm:
==I’ll bet you cannot show me one.==
July 7th, 2025 the City of Kankakee passed a resolution to extend the aggregation agreement for an additional 2 years. The city also receives a $30,000 civic contribution from the energy supplier as well. I assume they are making money or the ARES business wouldn’t make agreements like this.
“Eligible Customers will be assessed the same Customer Class Price and will continue to receive monthly invoice statements from ComEd without regard to whether they are served by Supplier or on Tariffed Service.”
- Senator Clay Davis - Friday, Aug 22, 25 @ 2:34 pm:
Competitive residential electric supply is a straight up scam. It’s possible a few of these offers may save customers a couple bucks, but for the most part, the entire industry is legalized price-gouging, whether for resi, muni-agg, or even commercial/industrial customers. I don’t see why the ILGA hasn’t outlawed the entire industry