Electric competition is worth celebrating
You won't hear much about the 10th anniversary of electrical competition in Illinois even though it has changed the way many people receive something they use every day - electrical power.
But given its importance, we should take stock of where we've come in the past decade and what could lie ahead. Before 1999 Illinois businesses and consumers had no choice in their electricity provider. They were relegated to the old utility paradigm of generating and transmitting electricity that ultimately costs the consumer and doesn't provide the best incentive for innovation. The General Assembly passed legislation to change it, and in only 10 years it has produced successful results.
According to the Illinois Commerce Commission:
• There are 37 licensed competitive electricity retail suppliers in Illinois - 24 registered and 19 active in ComEd service territory and 13 registered and 11 active in Ameren service territory.
• More than half of all kilowatts consumed in Illinois are being sold by someone other than the incumbent utilities.
• Three/fourths of the nonresidential kilowatts are being sold by new competitors. Businesses owners now routinely shop around to select who should supply their energy, and the market is growing every day.
This has spawned a new industry and created opportunities. Businesses are reaping the benefits of a competitive marketplace. While residential consumers are still waiting for this competitive choice, it's on the horizon.
Unfortunately, there's been alarming talk from elected officials advocating that Illinois should bring back the old ways because residents are still waiting for competition. That would be a mistake.
Politicians need to have the patience to let this exciting, emerging marketplace work. Electricity competition has served Illinois businesses well and it will get to the residential market before we know it. And when it does, that will be another anniversary worth celebrating.
Tom Wolf
Director
Energy Council
Illinois Chamber of Commerce
Chicago