Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in Illinois.
Illinois has a deregulated electricity market where commercial customers can choose their electricity supplier through Alternative Retail Electric Suppliers (ARES). ComEd (Exelon) handles distribution in northern Illinois while Ameren serves central and southern regions. The Illinois Commerce Commission regulates distribution rates.
What this means for property managers:
In Illinois's deregulated market, you can shop for competitive electricity supply rates from third-party providers. This creates opportunities for cost savings through contract negotiation, but also requires active management of supply contracts, renewal timelines, and market price monitoring. Distribution charges remain fixed with your local utility.
Commercial customers can choose their electricity supplier from competitive providers.
Rising
Rates increasing due to the Climate and Equitable Jobs Act subsidies, transmission upgrades from PJM capacity auctions, and higher natural gas pass-through costs during winter months.
Illinois does not have a statewide benchmarking law, but Chicago enacted its own Energy Benchmarking Ordinance requiring annual ENERGY STAR Portfolio Manager reporting for commercial buildings over 50,000 sqft. The Climate and Equitable Jobs Act (CEJA) of 2021 commits Illinois to 100% clean energy by 2050 and includes provisions affecting commercial building energy usage and renewable energy procurement.
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