Illinois legislators signed into law a retail competition program in 1997, to be fully implemented by May 2002. Non-residential customers were first given the opportunity to choose their electricity supplier, followed by residential customers. In 1998, residential customers of investor-owned utilities received rate reductions as high as 15 percent. These reductions helped to lower retail prices across the State.

• Through the 1990s, Illinois' nominal retail electricity prices—prices unadjusted for the effects of inflation—have been relatively stable, ranging from a high of about 7.69 cents per kilowatthour (kWh) to a low of 6.97 cents per kWh in 1999. Partly because of the rate reductions in 1998, nominal prices decreased in 1998 and then again in 1999 (see graph).
  
  
• Because nominal prices have been stable or decreasing, Illinois' real electricity prices—prices from which the effects of inflation are eliminated—have been consistently trending downward, from a high of 9.07 cents per kWh in 1990 to 6.97 cents per kWh in 1999 (see graph).
  
  
• In 1999, residential customers in Illinois paid an average of 8.83 cents per kWh, slightly higher than the national average of 8.16 cents per kWh for all residential customers. Industrial customers paid an average of 5.02 cents per kWh, which also was slightly higher than the national average of 4.43 cents per kWh for industrial customers.
  
  
• Future retail prices in Illinois are expected to be stable or decrease somewhat. Future rate reductions as called for in Illinois' restructuring plan will reduce retail prices even below the 1999 level. However, Illinois has not been able to attract new electricity suppliers and competition has been slow to develop. State regulators are concerned that if this continues, electric utilities that have an obligation to serve retail customers may face higher prices for wholesale power, which in turn may affect retail prices in future years.
  
  

Related Websites

• Energy Information Administration, Monthly Energy Review (Table 7.5):
  http://www.eia.doe.gov/mer/elect.html
• Average Retail Prices of Electricity, 1960 - 2003 (Table 8.10)
• Energy Information Administration, State Electricity Profiles: http://www.eia.doe.gov/cneaf/electricity/st_profiles/illinois.pdf
• Energy Information Administration, Electric Power Monthly (Tables 44-55): http://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html
• Energy Information Administration, U.S. Average Monthly Bills by Sector, Census Division, and State (Table 1): http://www.eia.doe.gov/cneaf/electricity/esr/esr_tabs.html
• Energy Information Administration, Electricity Revenue, Sales and Price for Power Marketers (Tables C1-C4): http://www.eia.doe.gov/cneaf/electricity/esr/esr_tabs.html
• Energy Information Administration, Electricity Revenue, Sales, and Price by State and Utility: http://www.eia.doe.gov/cneaf/electricity/esr/esr_tabs.html