Why Are Illinois Electric Rates Going Up? (2026)

The Chicago River and skyline in winter snow

8 min read • Updated October 2026 • By the CliQ Team — the team that created Blink

Why are Illinois electric rates going up? Because the price of reserve power, called capacity, jumped on both of the grids that serve Illinois, as data centers pushed demand up faster than new power plants came online. Northern Illinois (ComEd) is on PJM, where capacity rose from $28.92 per megawatt-day two years ago to the $329.17 cap for June 2026 through May 2027. Central and southern Illinois (Ameren) is on MISO, where it's about 14 times what it was in 2024. Statewide, the average residential rate went from 17.22 to 19.22 cents per kilowatt-hour between July 2025 and July 2026, about 12%, according to the EIA.

The other news is better. For ComEd, Ameren, Nicor, North Shore, and Peoples Gas customers, LIHEAP now reaches households earning up to $99,000 for a family of four, and applications are open. Here's what's driving the increase, how to compare suppliers, how to get help, and the part of the bill you control.

Why Illinois Electric Rates Jumped

An Illinois electric bill has two big parts: delivery, which pays your utility to run the wires, and supply, which is the electricity itself. The jump came from supply. ComEd and Ameren both pass the supply cost through to customers without a markup. And part of every supply price is capacity: money paid to power plants to be available on the hottest and coldest days, whether they run or not.

Illinois is unusual because it sits on two different power grids, and both had the same problem.

Northern Illinois: ComEd and PJM

ComEd buys power through PJM, the grid operator for 13 states. PJM's capacity price was $28.92 per megawatt-day for June 2024 through May 2025. It hit $269.92 the next year, then the $329.17 cap for the current year. ComEd's price to compare, which is its supply price plus transmission, is 10.103 cents per kilowatt-hour from October 1, 2026 through May 31, 2027, according to the Illinois Commerce Commission.

ABC7 Chicago asked ComEd what it's doing about data centers. The utility now requires new data centers to sign 10-year agreements that guarantee their transmission payments, even if they use less power than planned or never get built. That keeps those grid costs off other customers' bills. But ComEd also acknowledged the limit: projected demand is signaling that Illinois needs more power plants, and that pushes up the supply price everyone pays.

Video by ABC 7 Chicago via YouTube, March 2026. Not affiliated with CliQ.

Central and southern Illinois: Ameren and MISO

Ameren Illinois is on MISO, a different grid that covers all or part of 15 states. Ameren doesn't own power plants, so it relies on MISO's capacity auction more than most utilities there. That auction's summer price was about $30 per megawatt-day in 2024, a record $666.50 in 2025 (partly because of a software error that Ameren customers were later credited for), and $424.30 in 2026, according to the Citizens Utility Board (CUB), Illinois's nonprofit utility watchdog.

Ameren's price to compare is 10.441 cents per kilowatt-hour for the first 800 kWh a month, and 8.262 cents beyond that, from October 1, 2026 through May 31, 2027. CUB says that's about 29% higher than two years ago. CUB's Jim Chilsen walked WMBD in Peoria through why: rising demand, much of it from data centers, plus the way MISO runs its auction.

Video by WMBD News via YouTube, May 2026. Not affiliated with CliQ.

Don't expect a quick reversal. PJM's auction for June 2027 through May 2028 cleared at the cap again, and for the first time it didn't secure as much capacity as PJM's own reliability target calls for. For how Illinois compares nationally, see which states have the highest electricity rates.

The short version: two grids, one problem. Demand is rising faster than supply, and the cost of keeping reserve power on standby shows up in every Illinois supply price.

Illinois Electric Rates Comparison: Should You Switch Suppliers?

Illinois lets you buy electricity from an alternative retail electric supplier instead of your utility. About 1.15 million residential customers do, according to the ICC's Plug In Illinois site. Many towns also run municipal aggregation programs that pick a supplier for residents.

The only fair comparison is against your utility's price to compare: 10.103 cents for ComEd, and 10.441 cents for Ameren's first 800 kWh, through May 2027. Before you sign anything:

  • Compare the full rate to the price to compare. Not to last summer's bill.
  • Check the term and the rate type. Introductory rates can jump after a few months, and variable rates can change.
  • Look for an early termination fee.
  • Be careful with door-to-door offers. CUB warned in May that it had seen alternative supplier offers around 13 cents in Ameren territory, well above the utility price, and says customers on alternative suppliers have paid about $2 billion more than they would have with their utility over the past decade.

The ICC's Plug In Illinois site lists current offers and explains each line of the bill.

LIHEAP Illinois and Other Help Paying Your Bill

Applications are open now, and the income limits are higher than most people assume. A local agency told WQAD that applications in its counties rose 33% between 2024 and 2025.

Video by WQAD News 8 via YouTube, September 2026. Not affiliated with CliQ.

LIHEAP: who can apply, and when

Since October 1, 2026: adults 60 and older, people with a disability, households with a child 5 or younger, and households that are disconnected, have a disconnection date within 7 days, or have less than 25% left in a propane tank. Starting November 1: every other eligible household. The program runs through August 13, 2027, or until the money runs out.

LIHEAP: income limits and how to apply

For customers of Ameren Illinois, ComEd, Nicor Gas, North Shore Gas, and Peoples Gas, the limit is 300% of the federal poverty guidelines: $47,880 a year for one person, $99,000 for a family of four. Customers of other energy providers use a lower limit, 60% of state median income. Renters whose heat is included in rent may qualify, and immigration status doesn't affect eligibility. Submit a request at helpillinoisfamilies.com, apply through your county agency, or call 1-833-711-0374 for help.

Low-income discount rates

ComEd electric customers and Ameren, Nicor, North Shore, and Peoples Gas customers who qualify for LIHEAP, or earn up to 300% of the federal poverty level, can get a monthly discount on their bills. Ameren also started a new Electric Service Discount program on October 1, 2026, which sets your monthly electric payment as a percentage of your income. Ask your utility.

Winter disconnection rule: December 1 to March 31

Utilities can't disconnect residential customers when the temperature is forecast at or below 32°F, or before a weekend or holiday when it's forecast to freeze. Customers who heat with gas or electricity can't be disconnected unless the utility has offered a deferred payment plan with no more than 10% down and the customer refused. LIHEAP and PIPP participants, electric space-heating customers, and military personnel and veterans can't be disconnected for falling behind. Questions or complaints: the ICC at 1-800-524-0795.

The Part You Control: How Much You Use

The rate gets set at PJM and MISO auctions and in ICC proceedings. How much you use gets set at home.

Start with heating and cooling. They account for more than half of the energy used in a typical US home, according to the EIA. The Department of Energy says turning the thermostat back 7 to 10 degrees for 8 hours a day, like overnight or while the house is empty, saves up to 10% a year on heating and cooling. (DOE does caution that deep setbacks aren't a good fit for heat pumps.)

What that's worth: about $80 to $100 a year for the average US household, and more in homes heated with propane. (CliQ estimate, methodology available.)

The catch is doing it every day. Nobody remembers to turn the heat down every night and back up every morning, all winter. A schedule does it for you. For other reasons a bill runs high, see why your electric bill is so high, and check what a normal electric bill looks like.

That's where CliQ comes in. It's a $69.99 smart thermostat that runs the setback for you. You set four temperatures for morning, day, evening, and night. Away mode drops the temperature when you leave and brings it back when you're home, including automatically based on your phone's location. The app is free, with no subscription.

It also installs where other smart thermostats won't. Many older Illinois homes, from Chicago two-flats to downstate farmhouses, have two-wire thermostats with no C-wire, the constant-power wire most smart thermostats need. CliQ doesn't need one. It works with most 24V systems: gas furnaces, electric forced air, and boilers. It doesn't control electric baseboard heat. If your old thermostat is a compatible Honeywell two-wire model, CliQ clicks onto the existing wall plate with no tools. Otherwise it's a screwdriver and a few minutes.

The auction sets the price. Your thermostat sets how much of it you pay for.

See the CliQ Smart Thermostat →

$69.99 MSRP. No C-wire required.

Frequently Asked Questions

Why are Illinois electric rates going up?

Capacity prices, the cost of keeping reserve power available, jumped on both grids serving Illinois as data center demand grew faster than new supply. PJM, which serves ComEd, went from $28.92 to $329.17 per megawatt-day in two years. MISO, which serves Ameren, is about 14 times its 2024 price. Illinois's average residential rate rose about 12% between July 2025 and July 2026.

What is ComEd's price to compare right now?

10.103 cents per kilowatt-hour from October 1, 2026 through May 31, 2027, according to the Illinois Commerce Commission. That covers supply and transmission. It doesn't include the monthly Purchased Electricity Adjustment or delivery charges.

Why did Ameren Illinois rates go up?

Ameren buys most of its capacity through MISO's auction, and that price is about 14 times what it was in 2024. Ameren's price to compare is 10.441 cents per kilowatt-hour for the first 800 kWh from October 2026 through May 2027, about 29% higher than two years ago, according to the Citizens Utility Board.

How do I apply for LIHEAP in Illinois?

Submit a request at helpillinoisfamilies.com, apply through your county agency, or call 1-833-711-0374. Seniors, people with disabilities, families with a child 5 or younger, and households facing disconnection could apply starting October 1, 2026. Everyone else can apply starting November 1. The program runs through August 13, 2027, or until funding runs out.

What is the income limit for LIHEAP in Illinois?

For customers of Ameren Illinois, ComEd, Nicor Gas, North Shore Gas, and Peoples Gas, the limit is 300% of the federal poverty guidelines: $47,880 for one person and $99,000 for a family of four. Customers of other energy providers use 60% of state median income.

Can my utility shut off my heat in winter in Illinois?

From December 1 to March 31, utilities can't disconnect residential customers when temperatures are forecast at or below 32°F. LIHEAP and PIPP participants, electric space-heating customers, and military personnel and veterans can't be disconnected for falling behind. Other heating customers can't be disconnected unless they refuse a deferred payment plan with no more than 10% down.

Prices verified as of October 2026. Check retailer links for current pricing.

Sources

Illinois Commerce Commission, Plug In Illinois — Price to Compare: ComEd — plugin.illinois.gov

Illinois Commerce Commission, Plug In Illinois — Price to Compare: Ameren Illinois — plugin.illinois.gov

Illinois Commerce Commission — Illinois winter disconnection rule in effect through March, December 9, 2025 — icc.illinois.gov

Illinois Department of Commerce and Economic Opportunity — Utility Bill Assistance: How to Apply — dceo.illinois.gov

Citizens Utility Board — CUB Q&A: Why is Ameren's electricity price spiking? — citizensutilityboard.org

PJM Interconnection — 2026/2027 Base Residual Auction results, July 2025 — pjm.com

PJM Interconnection — 2027/2028 Base Residual Auction results, December 2025 — pjm.com

Utility Dive — PJM capacity prices hit record high as grid operator falls short of reliability target — utilitydive.com

US Energy Information Administration — Electric Power Monthly, Table 5.6.A, average residential price by state — eia.gov

US Department of Energy — Programmable Thermostats — energy.gov

US Energy Information Administration — Residential Energy Consumption Survey 2020, end-use consumption — eia.gov

Photo by Allen Boguslavsky via Pexels

RETURN TO NEWS

0 comments

Leave a comment

Please note, comments need to be approved before they are published.