Compare Electricity Rates Chicago

Chicago residents have a unique advantage when it comes to electricity: choice. Unlike many parts of the United States where a single utility monopoly controls electricity supply, Chicago operates in a deregulated energy market where you can shop around for your electricity supplier. This means that comparing electricity rates in Chicago isn't just an option—it's an opportunity to save hundreds of dollars annually on your energy bills. In 2025, with competition at an all-time high and rates fluctuating based on market conditions, understanding how to compare rates effectively has never been more important.

Understanding Chicago's Deregulated Energy Market

Chicago's electricity market has been deregulated since the late 1990s, creating a unique structure where supply and delivery are handled by separate entities. ComEd remains the delivery company that maintains the poles, wires, and infrastructure that brings electricity to your home. However, the electricity itself—the actual power supply—can come from various competitive suppliers. This distinction is crucial because it means you can choose your supplier while ComEd continues providing reliable delivery at a regulated, non-negotiable rate.

This two-part billing structure means your electricity bill includes two main components: the delivery charge (ComEd's regulated rate) and the supply charge (the competitive rate you choose). In 2025, ComEd's delivery charges remain relatively stable, but supply rates fluctuate based on wholesale market conditions, fuel costs, and renewable energy premiums. Understanding this structure is the foundation for smart rate shopping.

2025 Chicago Electricity Rates and Major Suppliers

As of 2025, Chicago's electricity supply market includes multiple competitive suppliers offering different rate structures and service models. The competitive landscape has evolved significantly, with suppliers ranging from large national companies to regional operators focused specifically on the Illinois market. Supply rates typically range from $0.08 to $0.14 per kilowatt-hour (kWh) for residential customers, depending on the supplier, contract type, and current market conditions.

The major suppliers currently active in Chicago include established players like Dynegy, Genesee & Wyoming, and direct suppliers from generation companies. Each brings different strengths: some offer fixed rates with price certainty, while others focus on variable rates that adjust monthly based on commodity markets. Some specialize in renewable energy products with higher environmental standards, while others compete primarily on price.

Rates in Chicago are particularly competitive during off-peak seasons. Winter months (January-February) often see higher rates due to heating demand, while spring and early summer typically offer the most competitive pricing. Savvy consumers who contract during these lower-rate periods can secure 12-month fixed rates at or below $0.10/kWh—substantially lower than peak-season rates.

Current Market Conditions (2025)

The electricity supply market in Chicago is experiencing moderate volatility in 2025, influenced by several factors: natural gas price fluctuations (which affect fossil fuel generation costs), renewable energy capacity expansion (which has increased competition and lowered average rates), and grid stability investments. Interestingly, Illinois's commitment to clean energy has led to increased solar and wind generation, which has put downward pressure on wholesale electricity prices in recent years.

For consumers, this creates an advantageous environment for rate shopping. With more renewable capacity online and competition among suppliers intensifying, fixed-rate offers are competitive and readily available. Many suppliers are also now offering "green" or "clean energy" products that blend renewable power at competitive rates, no longer requiring a significant premium.

Note: Rates shown are representative 2025 averages and fluctuate based on market conditions. Actual rates offered depend on usage profile, contract timing, and promotional offers.

Fixed Rate vs. Variable Rate Contracts in Chicago

One of the most important decisions when comparing electricity rates in Chicago is choosing between a fixed rate and a variable rate contract. Each approach has distinct advantages depending on your risk tolerance and how long you're willing to commit.

Fixed Rate Contracts

A fixed rate locks in your electricity supply rate for a specific period—typically 6, 12, 24, or 36 months. Once locked in, your rate remains unchanged regardless of market fluctuations. In 2025, fixed rates are attracting many Chicago residents because they offer budgeting certainty and protection against potential rate increases if energy prices spike during your contract period.

For example, if you lock in a 12-month fixed rate at $0.095/kWh in December 2024, and natural gas prices surge in January 2025 (pushing wholesale electricity prices higher), you continue paying $0.095/kWh while others on variable rates watch their bills climb. Fixed rates are ideal for households seeking predictability and who can commit to a contract period.

Variable Rate Contracts

Variable rates adjust monthly (or sometimes quarterly) based on wholesale electricity prices and market conditions. ComEd's standard offer rate is variable, which is why many customers find it advantageous to escape this uncertainty by choosing fixed-rate suppliers. However, variable rates can be attractive during periods of expected declining prices, or for customers who want maximum flexibility without early termination penalties.

A real-world example: A Chicago customer on ComEd's variable rate in 2024-2025 might see their supply rate fluctuate between $0.09/kWh in summer months and $0.12/kWh in peak winter demand periods. This unpredictability makes budgeting difficult and explains why fixed-rate contracts are generally preferred by residential customers seeking stability.

How to Compare Electricity Rates Effectively

Comparing electricity rates in Chicago requires understanding what information matters and how to evaluate options accurately. Many customers make the mistake of focusing solely on the supply rate (price per kWh) while ignoring other factors that significantly impact their total savings.

Essential Information to Gather

First, you need your current usage data. Check your recent ComEd bills for your typical monthly usage in kWh—this is essential because rate comparisons must account for your specific consumption. A rate that looks appealing for high-usage households might be expensive for light users, and vice versa. Most Chicago households use between 6,000-10,000 kWh annually (500-830 kWh monthly), but this varies significantly by household size, thermostat settings, and appliance efficiency.

Second, understand that your bill comprises two parts: (1) the ComEd delivery charge (non-negotiable, currently around $0.035-$0.045/kWh in 2025), and (2) the supply charge (the competitive rate from your chosen supplier). Never confuse these—and never switch suppliers to avoid the delivery charge, as that's impossible and indicates a scam.

Third, evaluate contract terms carefully. Review early termination penalties (some suppliers charge $50-$150 if you switch before your contract ends), enrollment fees, and cancellation rights. A slightly lower rate with a steep early termination fee might not be the best deal if you're uncertain about staying in your apartment or home.

Using Comparison Tools and Evaluating Quotes

Several resources allow Chicago residents to compare rates from multiple suppliers simultaneously. The Illinois Commerce Commission maintains an approved supplier list and price comparison resources. Many suppliers also provide online quote tools where you enter your monthly usage and receive instant rate quotes. Always get multiple quotes before committing—rate differences of $0.01-$0.02/kWh between suppliers can mean $100-$300 in annual savings.

When evaluating quotes, create a spreadsheet comparing: (1) the supply rate, (2) contract length, (3) early termination fee, (4) any promotional discounts or sign-up bonuses, and (5) your projected annual cost based on your usage. A spreadsheet makes it simple to identify the true lowest-cost option rather than being swayed by promotional marketing.

Real example: A Chicago household using 750 kWh monthly would calculate annual costs as follows. At $0.10/kWh, the annual supply cost would be 750 × 12 × $0.10 = $900. Add ComEd's delivery charge (roughly $0.04/kWh, or $0.04 × 9,000 kWh = $360 annually), and the total electricity bill reaches approximately $1,260. If an alternative supplier offers $0.095/kWh, the supply cost drops to $855 annually, saving $45/year—seemingly small, but that's $1,260 divided by 28 years, making supplier switching worthwhile for long-term residents.

Seasonal Considerations and Timing Your Switch

Energy markets in Chicago experience clear seasonal patterns that affect electricity rates. Understanding these patterns can help you time your rate-locking decisions for maximum savings.

Summer rates (June-August) are typically moderate because while air conditioning increases demand, renewable solar generation also peaks and helps moderate wholesale prices. Fall rates (September-November) are historically the most competitive as cooling demand drops and supply remains abundant. Winter rates (December-February) spike dramatically because of electric heating loads and reduced renewable generation, making these months the worst time to lock in fixed rates. Spring rates (March-May) recover to moderate levels as heating demand diminishes.

A strategic approach: if you're comparing electricity rates in Chicago and need to renew a contract, timing your switch to occur in September-October typically yields better fixed rates than locking in during January. Some households actually maintain variable rates during expensive winter months and switch to fixed rates during cheap shoulder seasons—though this requires active management and monitoring.

Common Rate Comparison Mistakes to Avoid

Many Chicago electricity customers sabotage their own rate savings by falling into common traps. The first mistake is ignoring the full picture and comparing only base rates. A supplier might advertise $0.09/kWh but add $5-10 in monthly administrative fees that raise the effective rate to $0.095/kWh or higher. Always calculate your total projected annual cost, not just the per-kWh rate.

The second mistake is not reading the contract fine print. Some suppliers include automatic renewal clauses that extend your contract or lock in new rates automatically if you don't cancel by a specific date. Others have early termination fees that can exceed the savings from a lower rate if you need to switch sooner than expected.

The third mistake is assuming ComEd's standard offer is the baseline to beat. It absolutely is—ComEd's variable rate is almost always higher than competitive fixed-rate offers available in the market. Any fixed-rate supplier worth considering should beat ComEd's current rate by a meaningful margin (typically $0.01/kWh or more).

The fourth mistake is staying with your current supplier out of inertia. Chicago customers often keep the same supplier for years without re-shopping, meaning they miss better rates that become available. Rates change frequently—re-shopping annually is a responsible habit that can translate to continuous savings.

Real-World Savings Examples from Chicago Customers

Understanding potential savings is easier with concrete examples of how rate switching works in practice.

Example 1: Average Household - A 4-person household in Chicago's north side uses approximately 850 kWh monthly (10,200 kWh annually). On ComEd's 2025 standard rate of $0.115/kWh supply, their annual supply cost is $1,173. By switching to a fixed-rate supplier offering $0.098/kWh, their annual supply cost drops to $999.60—a savings of $173.40 annually, or about $14.45 monthly. Over a 2-year contract, that's $346.80 in total savings with no lifestyle changes required.

Example 2: Efficient Small Household - A single resident using only 550 kWh monthly (6,600 annually) might dismiss switching because savings seem minimal. However, the same $0.017/kWh difference ($0.115 vs. $0.098) yields $112.20 in annual savings—still meaningful, and demonstrates that even light users benefit from shopping around.

Example 3: Large Household Maximizing Savings - A household using 1,200 kWh monthly (14,400 annually) could save $245 annually by moving from ComEd's rate to $0.098/kWh. If they re-shop bi-annually and secure rates averaging $0.095/kWh over several years while ComEd rates drift higher, they could accumulate over $1,000 in savings across five years—enough to meaningfully impact their energy budget.

Renewable Energy and Green Rate Options

Chicago has been expanding its renewable energy portfolio, and several suppliers now offer competitive green electricity options. In 2025, renewable-focused suppliers can offer rates nearly competitive with standard fossil-fuel-based rates because wind and solar generation costs have dropped dramatically.

Green rates typically include renewable energy credit (REC) purchases guaranteeing a percentage of your power comes from wind, solar, or hydroelectric sources. Standard green products guarantee 50-100% renewable sourcing, with 100% renewable rates still available in the $0.10-$0.115/kWh range. This is remarkable progress—five years ago, green rates commanded a 5-10% premium, but today's market makes them accessible.

For environmentally conscious Chicagoans, choosing renewable rates represents a way to reduce carbon footprint without significantly impacting household budgets. Combined with energy efficiency improvements (better insulation, efficient HVAC, LED lighting), green electricity can meaningfully reduce your household's environmental impact.

Next Steps

1. Gather Your Current Bills: Collect your last 3-4 ComEd bills to determine your average monthly usage in kWh. This is the essential foundation for accurate rate comparison.
2. Check Your Contract Status: Review your most recent electricity bill to determine when your current contract expires. If you're unsure whether you're on a fixed-term or variable-rate agreement, contact your current supplier.
3. Visit the Illinois Commerce Commission Website: Access the ICC's approved supplier list and rate comparison tools to see current offers from verified suppliers serving Chicago. This ensures you're only considering legitimate, regulated providers.
4. Get Multiple Quotes: Contact at least 3-5 different suppliers directly (or use online quote systems if available) and collect written rate quotes for a contract period matching your goals (12 months is most common).
5. Calculate Total Annual Costs: Create a simple spreadsheet multiplying each supplier's rate by your monthly usage, then by 12, adding any fees and promotional adjustments. Compare total annual costs, not just per-kWh rates, to identify the true best option.

Conclusion

Comparing electricity rates in Chicago is far more than a simple commodity price check—it's an opportunity to take control of your household budget and make intentional choices about your energy consumption. Chicago's deregulated market structure creates genuine choice and meaningful savings potential for informed consumers. With 2025 rates offering competitive fixed-rate options, renewable energy alternatives, and multiple suppliers competing for your business, the timing has never been better to ensure you're getting the best possible rate.

The key to success is understanding the two-part billing structure, gathering accurate usage data, comparing full contract terms (not just per-kWh rates), and making the switching process part of your regular household financial review. Most Chicago residents who actively compare rates find savings of $100-$300 annually—real money that can go toward other priorities. By implementing the strategies outlined in this guide and committing to reviewing your rates annually, you'll ensure your household benefits from competition and never overpays for electricity unnecessarily.