Illinois Electricity Rates: A Smart Guide

Illinois is not your typical electricity state. Since 1997, the Prairie State has operated a deregulated energy market, meaning you're free to shop for your electricity supplier the same way you'd shop for internet service. That freedom comes with real opportunities — and real traps if you're not paying attention.

The state runs on the largest nuclear fleet in the country, offers one of the few true real-time hourly pricing programs available to residential customers, and has some of the most generous solar incentives in the Midwest. At the same time, Illinois electricity rates sit 15 to 33 percent above the national average, and a massive utility bribery scandal has shaken public trust in the companies delivering your power.

Whether you live in a Chicago high-rise on ComEd's grid or a farmhouse in downstate Ameren territory, this guide will walk you through exactly what you're paying, why you're paying it, and the concrete steps you can take to pay less.

What Illinois Residents Actually Pay

Let's start with the numbers. The average Illinois residential electricity rate in 2026 lands between 16 and 18.8 cents per kilowatt-hour (kWh), depending on the source and time of year. The national average hovers around 13 to 14 cents, so Illinois residents are paying a meaningful premium.

For a household using 750 kWh per month — roughly average for the state — that translates to a monthly bill between $120 and $141 before delivery charges, taxes, and fees push the total higher. Your actual all-in bill is often 30 to 50 percent more than the raw supply cost alone.

Here's how the two major utilities compare:

| Factor | ComEd (Northern IL) | Ameren (Central/Southern IL) | |---|---|---| | Service territory | Chicago metro, northern IL | Central and southern IL | | Customers served | ~4 million | ~1.2 million | | Wholesale market | PJM Interconnection | MISO | | 2026 Price to Compare | 9.6 cents/kWh | 8.4 cents/kWh (<800 kWh), 7.5 cents/kWh (800+ kWh) | | Recent delivery rate change | $243M increase (ICC approved Dec 2025) | $48M increase (ICC approved Dec 2025) | | Hourly pricing option | Yes (ComEd Hourly Pricing) | No residential program |

That "Price to Compare" number is critical — it's the benchmark you'll use to evaluate whether a third-party supplier is actually saving you money. We will dig into that shortly.

If you have not looked at your bill closely in a while, now is a good time. Understanding the line items is the first step to finding savings. Our guide on how to read your electric bill and spot overcharges breaks down every charge you will see.

How Illinois Electricity Works

Illinois deregulated its electricity market in 1997 with the Electric Service Customer Choice and Rate Relief Law, and full residential choice kicked in by 2002. Here's what that means in practice.

Your utility still delivers the power. ComEd and Ameren own and maintain the poles, wires, transformers, and meters. You cannot change your delivery company — it's determined by where you live. This is the "delivery" portion of your bill, and it stays the same regardless of who supplies your electricity.

You can choose who supplies the power. The actual electricity flowing to your home can come from any licensed Alternative Retail Electric Supplier (ARES). Illinois has over 52 licensed suppliers, with roughly 111 total providers operating in the state. About one in three Illinois households — a 33 percent switching rate — has chosen an alternative supplier.

The Price to Compare is your decision point. Each utility publishes a "Price to Compare" that represents the supply-only cost of staying with the default utility service. If a supplier offers a rate below the Price to Compare, you save on supply costs. If it's above, you're paying more — and many suppliers do charge more, especially after introductory rates expire.

Delivery charges are separate and unavoidable. No matter who supplies your electricity, you'll pay delivery charges to ComEd or Ameren. These charges have been rising. In December 2025, the Illinois Commerce Commission (ICC) approved a $243 million delivery rate increase for ComEd and a $48 million increase for Ameren. Those costs flow directly to your bill.

ComEd vs. Ameren: Two Markets in One State

One of the most unusual things about Illinois electricity is that the state straddles two entirely different wholesale power markets.

ComEd operates within PJM Interconnection, a regional transmission organization that coordinates electricity across 13 states and D.C. PJM covers the eastern half of the country and has historically provided relatively stable wholesale prices due to its diverse generation mix and large geographic footprint.

Ameren operates within MISO (Midcontinent Independent System Operator), which covers a broad swath of the central United States. MISO has faced more volatile pricing in recent years, and the consequences became painfully clear in 2025.

The Ameren Summer 2025 Price Spike

In 2025, Ameren customers experienced a supply price increase of roughly 50 percent heading into summer. The culprit was MISO's annual capacity auction, which cleared at $666.50 per megawatt-day — a staggering 22 times higher than the prior year's clearing price. Capacity auctions set the price that generators receive for committing to be available during peak demand, and that cost gets passed through to customers.

The spike was driven by tightening supply margins in the MISO footprint as coal plants retire and demand grows. For Ameren customers, this was a stark reminder that even in a deregulated market, wholesale market dynamics can dramatically affect your bill.

If you're an Ameren customer, this makes it even more important to explore your options — whether that's locking in a fixed-rate supplier, joining a municipal aggregation program, or investing in solar to hedge against future spikes.

Shopping for Electricity in Illinois

With dozens of suppliers competing for your business, shopping for electricity can feel overwhelming. Here's how to do it systematically.

Use PlugInIllinois.gov

The Illinois Commerce Commission maintains PlugInIllinois.gov, a free comparison tool that lists every licensed supplier, their current offers, and contract terms. It's the most reliable starting point because the data comes directly from supplier filings with the ICC.

When comparing offers, pay attention to:

Fixed vs. variable rates. A fixed rate locks in your supply cost for the contract term (typically 6 to 24 months). A variable rate can change monthly based on market conditions. Fixed rates provide budget certainty; variable rates can save money when markets are low but expose you to spikes like the Ameren summer 2025 event.
Contract length and early termination fees. Some suppliers charge $50 to $150 if you leave before the contract ends. Others have no cancellation fee. Always check.
Introductory vs. ongoing rates. A supplier might advertise 7 cents/kWh for the first three months, then jump to 12 cents. Read the fine print.
Renewable energy content. Some suppliers offer 100 percent renewable plans, often at a modest premium of 1 to 2 cents/kWh. Others make green claims that amount to little more than purchasing cheap renewable energy certificates (RECs).

Municipal Aggregation: The Opt-Out Bargain

Over 700 Illinois communities have adopted municipal aggregation programs. Here's how they work: your city or village negotiates a bulk electricity supply rate on behalf of all residents, then automatically enrolls everyone unless you opt out.

Because municipalities negotiate for thousands of households at once, they often secure rates below the utility's Price to Compare. The savings are not dramatic — typically 5 to 15 percent on the supply portion — but they require zero effort on your part. You'll receive a letter when your community enters a new aggregation contract, and you simply do nothing to participate.

Check with your city clerk or village hall to find out if your community participates.

Red Flags When Shopping

The Illinois Attorney General's office has taken action against suppliers who use deceptive door-to-door sales tactics. Watch out for:

Anyone who asks to see your utility bill "just to check" — they may be copying your account number to switch you without consent
Promises of savings that sound too good to be true (50 percent off, guaranteed lowest rate)
High-pressure sales pitches with limited-time offers
Suppliers not listed on PlugInIllinois.gov

The Citizens Utility Board (CUB) publishes free rate guides and supplier scorecards. CUB is a nonprofit consumer watchdog — not affiliated with any utility or supplier — and their recommendations are worth checking before you sign anything.

ComEd Hourly Pricing: Real-Time Savings

ComEd's Hourly Pricing program is one of the most interesting electricity options available to residential customers anywhere in the country. Instead of paying a flat supply rate, you pay the actual real-time wholesale price of electricity, which changes every hour.

How It Works

When you enroll in ComEd Hourly Pricing, your electricity supply cost is based on the day-ahead hourly prices set by the PJM wholesale market. Your smart meter records exactly how much electricity you use each hour, and you're billed accordingly.

Wholesale electricity prices follow predictable patterns:

Cheapest hours: Late night and early morning (roughly 10 PM to 6 AM), when demand is lowest. Prices can drop below 3 cents/kWh.
Most expensive hours: Late afternoon and early evening (roughly 3 PM to 7 PM), especially on hot summer days when air conditioning drives demand up. Prices can spike above 20 cents/kWh during extreme events.
Shoulder hours: Morning and mid-day typically fall in between.

This concept is closely related to time-of-use pricing. If you want to understand how shifting your usage to off-peak hours saves money, read our detailed guide on time-of-use electricity rates.

Strategies for Hourly Pricing Success

To save real money on hourly pricing, you need to shift electricity usage away from expensive peak hours and toward cheap off-peak hours:

Run major appliances at night. Set your dishwasher, washing machine, and dryer to run after 10 PM. A single dryer cycle at 3 cents/kWh instead of 15 cents costs about 80 percent less.
Pre-cool your home. Run your air conditioning aggressively in the morning when rates are low, then let the temperature drift up a few degrees during peak afternoon hours. A smart thermostat can automate this completely.
Charge EVs overnight. If you drive an electric vehicle, set it to charge between midnight and 5 AM. At 3 cents/kWh, a full charge might cost $2 instead of $8.
Use alerts. The Hourly Pricing program sends price alerts when next-day prices are expected to spike. Pay attention to these and plan accordingly.
Monitor your usage. A home energy monitor can show you real-time consumption by circuit, making it much easier to identify what's drawing power during expensive hours.

Who Should (and Should Not) Enroll

Hourly pricing works best for households that can genuinely shift usage — people with flexible schedules, smart home automation, and willingness to pay attention to price signals. The program reports that participants save an average of 15 percent compared to the flat default rate.

It's not ideal if you work from home during peak hours with heavy electricity demands you cannot shift, or if you simply do not want to think about when you run your appliances. There's also inherent risk: if a polar vortex or heat wave sends wholesale prices soaring and you cannot curtail usage, you could face a painful bill.

Hourly pricing is only available to ComEd customers. Ameren does not currently offer a comparable residential real-time pricing program.

The ComEd Scandal and What It Means for Your Rates

You cannot discuss Illinois electricity without addressing the elephant in the room. ComEd was at the center of one of the largest utility corruption scandals in American history.

Between 2011 and 2019, ComEd operated an eight-year bribery scheme to influence Illinois House Speaker Michael Madigan and secure favorable legislation. The utility arranged jobs, subcontracts, and payments to Madigan associates in exchange for his support on bills that benefited ComEd's parent company, Exelon.

The consequences have been severe:

ComEd paid $200 million in a deferred prosecution agreement with federal prosecutors in 2020
The "ComEd Four" — four lobbyists and executives — were found guilty at trial in May 2023
Michael Madigan was indicted on federal racketeering charges
Customer refunds: ComEd agreed to a $38 million refund to ratepayers as part of related settlements
Total penalties exceeded $173 million

What does this mean for your electricity bill today? The legislation ComEd secured through bribery included the 2011 Energy Infrastructure Modernization Act, which allowed the utility to invest $2.6 billion in grid upgrades and recover costs through an automatic formula rate mechanism — essentially guaranteeing ComEd a profit on those investments without the usual rate case scrutiny.

The formula rate mechanism was reformed by the Climate and Equitable Jobs Act (CEJA) in 2021, restoring more ICC oversight. But the infrastructure investments made under the original law are already baked into the rate base, and customers are still paying for them through delivery charges.

The scandal is a reminder to stay engaged with utility regulation. The CUB and organizations like the Environmental Law & Policy Center actively intervene in rate cases on behalf of consumers. Supporting these organizations — or simply submitting public comments during ICC proceedings — is one way to push back on rate increases.

Solar Incentives: Illinois Shines and More

Illinois has built one of the strongest solar incentive programs in the Midwest, and stacking state incentives with the federal Investment Tax Credit (ITC) can dramatically reduce the cost of going solar.

Illinois Shines (Adjustable Block Program)

Illinois Shines is the state's flagship solar incentive program, created by the Future Energy Jobs Act and expanded by CEJA. Here's how it works:

When you install a solar system, you earn Solar Renewable Energy Credits (SRECs) based on your system's expected production over 15 years. Illinois Shines buys those SRECs upfront, giving you a lump-sum payment that reduces your out-of-pocket cost.

For residential systems under 10 kW in ComEd territory, the current SREC value is approximately $75.48 per REC. A typical 7 kW residential system generates enough SRECs to earn roughly $9,900 to $11,300 through the program.

| Incentive | Value | Notes | |---|---|---| | Illinois Shines SRECs | $9,900 - $11,300 (typical 7 kW system) | Paid upfront, based on 15-year production estimate | | Federal ITC (30%) | ~$6,300 - $7,500 (on a $21,000 - $25,000 system) | Tax credit, claimed on federal return | | Combined savings | $16,200 - $18,800 | Stacks — you can claim both | | Net cost after incentives | $4,800 - $6,200 | Before any additional local incentives |

That's a net cost of roughly $5,000 to $6,000 for a system that could generate $1,200 to $1,500 worth of electricity annually — a payback period of around 4 to 5 years before the panels have paid for themselves entirely. For a deeper look at how all of these incentives work together, check out our solar incentives and tax credits guide.

If you're weighing your panel options, our solar panel buyer's guide covers efficiency, warranties, and value comparisons across the top brands.

Net Metering in Illinois

Illinois requires ComEd and Ameren to offer net metering for systems up to 25 kW. When your panels produce more electricity than you're using, the excess flows back to the grid and you receive a credit on your bill at the full retail rate.

Net metering is what makes the solar payback math work so well in Illinois. Without it, you'd only save money on electricity consumed in real time. With it, your panels effectively "bank" energy on sunny days for use at night. Learn how to get the most out of this in our guide on how net metering works and how to maximize it.

Community Solar: No Roof Required

If you rent, live in a condo, or have a shaded roof, community solar lets you access solar savings without installing panels on your property. You subscribe to a share of a larger solar farm and receive credits on your electricity bill.

Illinois community solar subscribers typically save 5 to 20 percent on their electricity costs with no upfront investment and no long-term equipment commitment. The Illinois Shines program also supports community solar projects, helping keep subscription costs low.

This is one of the fastest-growing segments of the Illinois renewable energy market. Our community solar guide explains how to evaluate subscriptions and avoid common pitfalls.

Illinois's Nuclear Backbone and Clean Energy Future

Illinois generates roughly 54 percent of its electricity from nuclear power — more than any other state. The state's 11 reactors at 6 plants produce enormous amounts of carbon-free baseload power, which is a major reason Illinois's grid is already cleaner than most.

CEJA, signed in 2021, set Illinois on a path to 100 percent clean energy by 2050. The law mandates:

All coal plants close by 2030
All gas plants close by 2045
Massive expansion of wind and solar
Significant investment in energy storage and grid modernization

These targets are ambitious, and they mean the Illinois energy landscape will continue to evolve rapidly. Rooftop solar installed today will only become more valuable as the state transitions away from fossil fuels.

More Ways to Lower Your Illinois Electricity Bill

Beyond choosing the right supplier and taking advantage of solar incentives, here are concrete steps you can take to reduce what you're paying.

Use CUB Resources

The Citizens Utility Board is a free, nonprofit resource for Illinois electricity consumers. They publish:

Quarterly rate comparison guides showing which suppliers actually save money
Bill clinic services where you can get a free review of your utility bills
Alerts about rate cases and policy changes that could affect your costs

Visit citizensutilityboard.org or call their hotline for personalized guidance.

Invest in Efficiency

The cheapest kilowatt-hour is the one you do not use. Illinois offers several efficiency programs:

ComEd and Ameren energy efficiency programs provide rebates on insulation, air sealing, smart thermostats, and efficient appliances. These programs are funded by a small charge on your bill — you're already paying for them, so you might as well use them.
Weatherization assistance is available for income-qualifying households at no cost.
Smart home automation can reduce consumption by 10 to 25 percent by optimizing heating, cooling, and lighting schedules. Our guide to smart home energy management covers the best tools and strategies.

For a comprehensive approach to cutting your bill, our guide on how to cut your electric bill in half walks through the highest-impact changes room by room.

Consider Whole-Home Electrification

If you currently heat with natural gas — as most Illinois homes do — switching to a heat pump can reduce your total energy costs while eliminating a separate gas bill. Modern cold-climate heat pumps work efficiently well below zero, making them viable even for Illinois winters.

When you combine a heat pump with rooftop solar and favorable electricity rates, you can dramatically reduce your overall energy spending. Our whole-home electrification guide covers the full transition process, from heat pump HVAC to heat pump water heaters and induction cooking.

Monitor and Respond

You cannot manage what you do not measure. Installing a home energy monitor gives you visibility into exactly where your electricity is going, hour by hour and circuit by circuit. Many Illinois households discover that a single appliance — an old refrigerator, a pool pump on the wrong schedule, or an always-on gaming console — accounts for a surprising share of their bill.

Frequently Asked Questions

Can I really choose my electricity supplier in Illinois?

Yes. Illinois has been fully deregulated for residential customers since 2002. You can switch your electricity supplier at any time through PlugInIllinois.gov or by contacting a supplier directly. Your delivery service (ComEd or Ameren) does not change — only the supply portion of your bill. Switching is free, though some suppliers charge early termination fees if you leave before your contract ends.

What is the Price to Compare and why does it matter?

The Price to Compare is the supply-only rate you'll pay if you stay with your utility's default service. For 2026, ComEd's Price to Compare is 9.6 cents/kWh, and Ameren's ranges from 7.5 to 8.4 cents/kWh depending on usage. Any supplier offer above this number is costing you more, not less. Always compare apples to apples — look at the supply rate only, since delivery charges remain the same regardless.

Is ComEd Hourly Pricing worth it?

For the right household, yes. Participants save an average of 15 percent. The key is your ability and willingness to shift electricity usage to off-peak hours (nights, early mornings, weekends). If you have a smart thermostat, can charge your EV overnight, and do not mind running the dishwasher at 10 PM, you'll likely save money. If your schedule is inflexible and you cannot shift significant loads, the savings may be minimal and the risk of occasional price spikes is not worth it.

How much can I save with solar in Illinois?

A typical 7 kW residential system costs $21,000 to $25,000 before incentives. After the Illinois Shines SREC payment ($9,900 to $11,300) and the 30 percent federal tax credit ($6,300 to $7,500), your net cost drops to roughly $5,000 to $6,200. At current rates, the system generates $1,200 to $1,500 in annual electricity savings, producing a payback period of 4 to 5 years. After payback, you're generating essentially free electricity for the remaining 20+ years of panel life.

What happened with the ComEd bribery scandal?

ComEd engaged in an eight-year bribery scheme (2011-2019) to influence Illinois legislation. The utility paid $200 million in penalties, four executives and lobbyists were convicted, and customers received a $38 million refund. The scandal led to reforms in how utility rates are set, including increased ICC oversight under CEJA. While the direct financial impact on individual bills was modest, the legislation passed through bribery allowed ComEd to make billions in infrastructure investments that customers are still paying for through delivery charges.

What is municipal aggregation and should I participate?

Municipal aggregation is when your city or village negotiates a bulk electricity supply rate for all residents. It works on an opt-out basis — you're automatically enrolled unless you choose to leave. Because municipalities negotiate for thousands of customers, they often secure rates below the utility's Price to Compare. If your community offers aggregation, it's usually worth participating unless you've found a better individual deal. Check with your city clerk to see if your community participates.

Will Illinois electricity rates keep going up?

The trend points upward for delivery charges, as utilities invest in grid modernization, storm hardening, and clean energy integration. Supply costs are harder to predict — they depend on natural gas prices, renewable energy growth, and wholesale market dynamics. The Ameren summer 2025 spike showed how volatile supply costs can be. The best hedge against rising rates is reducing your consumption through efficiency upgrades and generating your own power with solar.

Your Illinois Energy Action Plan

Here's a concrete, step-by-step plan to take control of your Illinois electricity costs:

Read your bill carefully. Identify your current supply rate, delivery charges, and total cost per kWh. Use our bill reading guide to understand every line item.
Check your Price to Compare. Look up the current Price to Compare for your utility (ComEd: 9.6 cents/kWh, Ameren: 7.5-8.4 cents/kWh). If you're with a third-party supplier, verify you're actually saving money.
Visit PlugInIllinois.gov. Compare current supplier offers against your Price to Compare. Look for fixed-rate contracts with no early termination fee.
Check for municipal aggregation. Call your city clerk or visit your municipality's website. If your community has an aggregation program, confirm you're enrolled.
Consider ComEd Hourly Pricing. If you're a ComEd customer with a flexible schedule and smart home devices, enroll in the Hourly Pricing program and commit to shifting usage off-peak.
Get a solar quote. Even if you're not sure about solar yet, get a quote to understand the actual numbers for your home. With Illinois Shines and the federal ITC, the economics are the strongest they have ever been in Illinois.
Explore community solar. If rooftop solar is not an option, research community solar subscriptions in your area. A 5 to 20 percent savings with no upfront cost is hard to beat.
Upgrade your thermostat. A smart thermostat is the single highest-ROI energy investment for most homes. It pays for itself within months and reduces heating and cooling costs by 10 to 15 percent year-round.
Check CUB's latest guides. Visit the Citizens Utility Board website for their current rate comparisons and bill clinic services. It's free and unbiased.
Stay informed. Utility rate cases, CEJA milestones, and wholesale market changes all affect what you pay. Follow CUB or the ICC for updates that matter to your wallet.

Illinois's deregulated market gives you more choices than residents of most states enjoy. But choice without information is just noise. Use the tools, programs, and incentives available to you, and you can turn Illinois's complicated electricity landscape into a genuine advantage.