Energy Deregulation for the state of Illinois
The state of Illinois was home to record high electricity and gas rates: the kind that were higher than the majority of states in America. It was necessary for the state to do something to lower the price of the natural gas and the electricity that the utilities were providing, and regulating the prices was not working well enough. Prices would hike according to season and according to the power of the companies that had monopolized the marketplace. Deregulation was an excellent way to combat all of this and the state of Illinois did its best to implement it as soon as it could.
In 1997 and 1998, the state of Illinois and the Illinois Public Commission aimed to deregulate both the electricity and the gas marketplaces in Illinois. In 1997 the Illinois electric Service Customer Choice and Rate Relief Law ended up saving people millions of dollars over the course of the years. This law was initially beneficial just for industrial customers but in 2002 made it possible for residents to take profit from it as well. While deregulating electricity initially, this law ended up deregulating the gas industry as well. This law is also attributed with reducing the price of electricity by nearly 20 percent, so much so that that rate ended up remaining frozen there for 10 years.
The best part about the deregulation was that like other states the importance of the local utilities remained as it was. People were assigned a default utility that would provide them the electricity and the gas that they wanted, but if they choose to choose an alternative energy provider from the competitive market, the utility would still do this job for them. It would continue to be the provider of electricity and gas even though the source of the gas and the electricity would be different. This enables the residents and business owners to remain care free about supplier issues.
The state of Illinois and the residents of Illinois were tired of the high prices of gas and electricity, and when this deregulation broke down the monopolies in the energy sector, the prices of energy went down drastically. The savings for both the state and its residents were enough to convince them to support this deregulation, and now Illinois is ranked among the states that have the lowest prices for energy in the entire country.