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Maybe it's time the state did something about this problem


Maybe it's time the state did something about this problem

Customers of ComEd and Ameren Illinois have lost more than $2 billion over the past 10 years to alternative electricity suppliers -- businesses known for ringing people's doorbells and promising great deals, according to an analysis of state data by the nonprofit Citizens Utility Board.

CUB Executive Director Sarah Moskowitz called Illinois "a buyer-beware market."

The offers are legal, but often they don't deliver long-term savings, according to the consumer watchdog, which is calling for better consumer protections.

In the past year, consumers who used alternative suppliers for electricity overpaid by $258 million, the analysis found.

A Sun-Times investigation last year found that decades after Illinois deregulated electricity and natural gas markets, consumers continue to complain about alternative suppliers. Some said they didn't realize their accounts had been switched until their bills shot up. Other consumers willingly signed up for an alternative supplier's deal but complained that their bills rose higher than expected after the introductory rate ended.

* From CUB...

While ComEd and Ameren bill customers for delivering electricity over the power lines they own, under Illinois law those customers can choose another company -- an alternative supplier -- to supply the actual electricity. The Illinois Commerce Commission's Office of Retail Market Development (ORMD) recently released its 2025 annual report, covering June 1, 2024 through May 31, 2025. Some findings:

* I asked a CUB spokesperson why we have to have all of these alternative suppliers? Jim Chilsen's reply...

Supply choice exists because Illinois is a deregulated state. In some communities leaders have negotiated decent deals with alternative suppliers through municipal aggregation ("community power deals").

But that's different from sales reps doing in-person marketing, sending you mailers or calling you on the phone. Nobody can guarantee savings-and in fact the market has been rife with rip-offs and scams.

We tell people: It's a buyer beware market, your best bet is likely the utility. That's why we're pushing for more consumer protections-HB 1284. That would be another step in the right direction.

* From HB 1284's synopsis...

Prohibits alternative retail electric and gas suppliers from paying incentive-based compensation to people engaged in in-person solicitation or telemarketing. Provides that certain tariffs may be filed by an electric utility with respect to electric utilities providing supply service through an electric aggregation program. Provides that an alternative retail electric utility supplier or alternative gas supplier shall not automatically renew a consumer's enrollment after the current term of the contract expires when the renewed contract provides that the consumer will be charged a rate higher than the current contract rate unless: (i) the alternative retail electric supplier or alternative gas supplier complies with specified notice and disclosure requirements; and (ii) the customer expressly consents to the contract renewal in writing or by electronic signature at least 30 days, but no more than 60 days, before the contract expires.

Everybody talks about affordability, but not enough people want to actually do something about it.

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