Chicago

Chicago Electricity Rates

Residents of the Windy City pay more than most for heating and for air conditioning. Not only do they need more of both, they also pay higher rates than the average American. Illinois does have a large supply of energy thanks to oil and nuclear plants, but it seems like demand is keeping up.

Luckily, Chicago has a deregulated electricity market. Deregulation has been in place since 1997, but many consumers of electricity have yet to take advantage of it. If you’re still buying your electricity from ComEd, it’s time to sign up with a new provider. If you choose a standard plan from an alternate provider, you’re virtually guaranteed to save money on your monthly bill. That’s because most of these plans are directly tied to the Illinois Price to Compare, which in turn is based on ComEd’s rate. ComEd names a price and your provider beats it.

Very little changes when you make this kind of change. ComEd still delivers your power and fixes up your power lines when a tree knocks them down. All that really changes for you is the bill at the end of the month.

Make a Switch

There are still a few more things you ought to keep in mind when comparing electricity rates. The other opportunity for direct reward comes in the form of signup bonuses, which are offered by energy companies to attract new customers. These bonuses can be simple discounts on electricity, but you might notice other useful bonuses such as airline tickets or other gifts.

You might be unsure about how to decide between a big signup bonus and a low rate—and that’s where the length of the contract comes in. Some companies require no contract (and impose no penalties for leaving), while others want you to sign a one- or two-year agreement. Whatever rate structure the company is advertising, make sure you are comfortable paying it for the length of your contract. And if you’re getting a great signup bonus, double check to see if it’s worth the commitment you’re making to get it.

Most of these contracts use a variable rate, and it’s this type of contract that can offer you guaranteed savings relative to your current plan. The alternative is a fixed-rate plan, which doesn’t vary along with the market. That means you might beat the market or you might lose to it; in that sense it’s a riskier deal, even if it seems more predictable.

One last thing to think about for your new contract is where your energy comes from. Whereas before you had no choice about the source of your power, now you’ve suddenly got the ability to vote with your dollars. If you care about green energy, you can now hook up with a wind farm or solar plant that produces your electricity without waste. Now that’s power!