Overview of Deregulation in Illinois

For the past ten years, the Illinois retail electricity market has been transitioning toward deregulation. In a deregulated market, electricity customers have the opportunity to choose a supplier rather than be locked into a single, regulated utility.

Under the Illinois restructuring law, utilities purchased long-term supply contracts, which enabled them to freeze rates through December 31, 2006. In the Fall of 2006, the utility will set prices for the next 18 months and customers will have the option to accept those prices or purchase from an alternate supplier.

For more information on Illinois deregulation, click on one of the Other Resources links at the right.

Risks

During the rate freeze, electricity prices have increased dramatically. When the freeze period comes to an end, commercial electricity customers in Illinois will be entering a market-based system where the current pricing may be up to 40% higher than the rates now paid.

Utility rates will be determined by an average load profile taken across a broad range of customers. This may not reflect favorably on your actual usage and power needs.

Waiting until the post-2006 rates are set leaves very little time to gather the facts you need to decide whether to either accept the utility’s rate offering – which would be locked in for the next 18 months – or quickly find alternatives.

Opportunities

Companies have the opportunity to learn their alternatives and minimize the financial impact of the post-2006 rates changes now. Your current provider may not be your best electricity source for the future. Cargill Energy and Risk Management Solutions can help you optimize your electricity supply based on highly detailed load analysis and competitive pricing. To anticipate the post-2006 changes, we can help:

• Obtain pricing and negotiate agreements in advance of the utilities’ rate auction
• Evaluate your options once utility rates are set
• Conduct auctions to obtain the most favorable pricing for your facility
• Manage your electric load post-2006

In the past CERMS has helped customers reduce their electricity expense by 8-12%. View our case studies for more information.

Cargill Energy and Risk Management Solutions

Cargill has developed energy risk management into a strong core competency. As a $70 billion corporation, we’re one of the world’s largest energy users. We’ve been a major presence in wholesale energy markets for over 25 years – plus have more then 140 years of commodity management experience behind us. When you partner with Cargill, you have access to the depth of resources of a major energy company, combined with the experience, knowledge and perspective of an end-user.

• Precise Load Analysis – A detailed assessment of interval load data allows us to determine how much power you consume and when – and thus commanding more advantageous pricing.
• Broad Procurement Scope – Cargill has extensive experience procuring retail power for our customers, as well as our own plant locations, in Illinois, California, Maryland, Massachusetts, Michigan, New York, Ohio, Pennsylvania, Texas, Alberta and Ontario.
• Online Reverse Auction Speciaists – This competitive pricing tool allows us to procure power at the market’s lowest available price. And because our auction platform focuses exclusively on energy markets, you benefit from deeper industry knowledge and more accurate benchmarking.
• Regulatory Insight – We stay current with changing retail power regulations in the markets we serve, so you don’t have to.
• Market Objectivity – Cargill Energy and Risk Management Solutions is supplier-neutral. Because we do not physically supply power, we are able to remain objective in our recommendations.

How we can help

REQUEST YOUR FREE RATE ANALYSIS TODAY.

Let Cargill Energy and Risk Management Solutions show you what we can do to help minimize the impact of post-2006 Illinois electric rate increases.