Energy consumers benefit from choices

As we use our air conditioners more and more in the upcoming dog days of summer while fearing the subsequent electric bills, a little perspective might be in order. Bit by bit something is happening that no one thought possible, competition has come to the electricity marketplace - especially for Illinois businesses.

During the past 10 years choices in the way we purchase electricity have transformed before our eyes. In a little-noticed annual report from the Illinois Commerce Commission's Office of Retail Market Development, a very rosy picture of retail competition for nonresidential customers is painted.

For example:

• More than half of all kilowatts consumed in Illinois are being sold by someone other than the incumbent utilities - ComEd and Ameren.

• Three/fourths of the nonresidential kilowatts are being sold by new competitors.

• 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.

The way Illinois businesses buy power has completely changed in one decade. Although a single provider has been the norm in the residential electricity market so far, there is no doubt this genie is out of the bottle.

There has been some talk in Springfield recently about re-regulating the electricity marketplace for residential customers. This double-standard is most likely unworkable in the real world and, more importantly, backward thinking. Just because residential competition hasn't emerged yet doesn't mean it won't. Competitive forces naturally went for the biggest users of electricity first, which happened to be business customers.

Telecommunications providers did the same thing, but they eventually moved into the residential market with great results for consumers.

In time, competitive sellers of electricity will find a way into the residential marketplace just as telecommunications companies did. It would be shortsighted to let impatience halt the march to a fully competitive electricity marketplace that promotes consumer preferences and benefits.

Tom Wolf

Director

Energy Council

Illinois Chamber of Commerce