The Real Cost of Staying on Default Utility Service vs. Switching to a Retail Supplier in Illinois

ComEd's and Ameren Illinois's default supply rates—often called the Price to Compare (PTC)—are not negotiated rates. They reflect the utility's own procurement costs plus a regulated return, and they're designed to be the 'default' option, not the best option. These rates are public, posted monthly on each utility's website, and they fluctuate with market conditions.

The problem with the PTC isn't that it's always the highest available rate—sometimes it's reasonably competitive in a given month. The problem is its variability and unpredictability. Default rates can change monthly, making budget forecasting difficult. And when wholesale prices spike—as they have during extreme weather events and market dislocations—the default rate can increase substantially.

The True Cost of Default Service: Beyond the Rate

Beyond the rate itself, remaining on default service has strategic costs. You have no contract, no certainty about future pricing, no ability to lock in a rate when the market dips, and no leverage with suppliers. You're a passive participant in a market designed to reward active engagement.

For businesses on month-to-month arrangements with suppliers—which effectively function like default service in terms of rate variability—the same concerns apply. A month-to-month rate that seemed acceptable six months ago may have drifted significantly upward without your noticing.

Switching to a licensed retail energy supplier in Illinois doesn't change your physical service. The same utility delivers your electricity through the same wires. What changes is who supplies the underlying power and what price you pay for it. This separation—between supply and delivery—is the foundation of Illinois's deregulated energy market.

How the Switch Works

1. 1An energy broker gathers quotes from multiple licensed Illinois retail suppliers on your behalf
2. 2You review the quotes and select your preferred rate and contract terms
3. 3The new supplier submits an enrollment request to your utility
4. 4The utility processes the change (typically within one billing cycle)
5. 5Your bill now reflects the new supplier's rate for the supply portion—delivery charges remain the same

The switch is seamless. There's no physical change to your service, no interruption to your power, and no need to notify ComEd or Ameren beyond what your new supplier handles automatically. You continue to receive a single bill in most cases.

What Kinds of Savings Are Realistic?

Savings from switching vary based on current market conditions, your load profile, and how long you've been on default service. Businesses switching from default service for the first time—or from an auto-renewed rate that hasn't been shopped in years—typically see supply rate reductions of 10–25%. For a business spending $5,000 per month on energy supply, that represents $500–$1,250 in monthly savings, or $6,000–$15,000 annually.

Even in competitive market conditions where rates are broadly similar, switching to a fixed-rate contract from a variable default rate provides the value of price certainty—which has real dollar value for budgeting and financial planning.

Numbers speak louder than theory. Here's a direct cost comparison for a hypothetical Illinois commercial business to illustrate the real financial difference between default utility service and a competitive retail supply contract.

In this example, switching to a competitive retail supplier saves $8,400 annually—representing a 19.4% reduction in supply costs. Over a 3-year fixed contract, the cumulative savings would be $25,200. These are not exceptional numbers—they're representative of what active procurement typically delivers for Illinois businesses.

Important Considerations When Comparing

• Delivery charges (regulated utility costs) are the same regardless of your supplier choice
• Compare fixed vs. variable rate structures carefully—a fixed rate provides certainty even if the nominal rate is slightly higher
• Review all contract terms, not just the rate per kWh
• Consider supplier financial stability and customer service reputation, not just price
• Understand what happens at contract end—avoid automatic rollover provisions

If your Illinois business is on default utility service, or if you haven't shopped the market in the past 12–18 months, the answer is almost certainly: yes, it's time to evaluate your options. Here's how to get started immediately.

Step 1: Gather Your Last Three Utility Bills

Find your last three utility bills and identify your total usage (kWh), current supply rate, and any existing supplier information. This is all an energy advisor needs to begin gathering competing quotes.

Step 2: Use Our Free Bill Analyzer

Illinois Energy Advisors offers a free Bill Analyzer tool that helps you understand your current rate structure and identify potential savings. Upload a recent bill and receive a free analysis of your current costs.

Step 3: Request Competing Quotes

An energy broker will contact multiple licensed Illinois suppliers on your behalf, gather competing quotes, and present them in a clear, comparable format. This process typically takes 24–48 hours. There's no cost to you—the broker is compensated by the supplier you choose.

Step 4: Choose Your Plan and Enroll

Review the quotes with your advisor, select the rate and term that fits your needs, and authorize the enrollment. The rest is handled automatically. Most businesses begin seeing the new rate reflected on their bill within one billing cycle.