Navigating Natural Gas Deregulation for Businesses in Illinois: A Step-by-Step Guide

Understanding Natural Gas Deregulation in Illinois

Natural gas deregulation in Illinois has transformed how businesses purchase their energy. Under the deregulated model, commercial customers can choose their natural gas supplier while the local utility—such as Nicor Gas—continues to handle delivery, metering, and emergency services. This separation of supply and delivery creates competition that benefits business consumers.

The deregulation framework in Illinois allows businesses to shop among dozens of licensed suppliers, each offering different rate structures, contract terms, and value-added services. Understanding how this system works is the first step toward capturing significant savings on your commercial natural gas costs.

How Deregulation Works in Illinois

In Illinois's deregulated natural gas market, the supply chain is divided into two distinct components:

• Supply (Commodity): The actual natural gas you consume, which you can purchase from any licensed supplier
• Delivery (Distribution): The infrastructure and services provided by your local utility to deliver gas to your facility

Your utility bill will show both components, but you have the power to choose who supplies your gas. This choice is where the savings opportunity lies.

Step-by-Step Guide to Switching Suppliers

Step 1: Gather Your Current Usage Information

Before comparing suppliers, you'll need to understand your current natural gas consumption patterns. Gather the following information:

• 12 months of utility bills showing monthly usage (in therms or CCF)
• Your current rate structure and contract terms
• Your account number and meter information
• Any existing contract expiration dates

Step 2: Research Licensed Suppliers

Illinois maintains a list of licensed natural gas suppliers authorized to serve commercial customers. Key suppliers in the Illinois market include:

• Direct Energy Business
• Constellation Energy
• IGS Energy
• Spark Energy
• XOOM Energy

Step 3: Compare Rate Structures

Suppliers offer various rate structures to meet different business needs:

Rate Type	Best For	Risk Level
Fixed Rate	Budget certainty, risk-averse businesses	Low
Variable Rate	Businesses comfortable with market fluctuations	High
Index Plus	Sophisticated buyers tracking market indices	Medium
Block & Index	Large consumers seeking partial price protection	Medium

Step 4: Request and Compare Quotes

Contact multiple suppliers to request quotes based on your usage profile. When comparing quotes, consider:

• The per-therm or per-CCF rate
• Contract length and terms
• Early termination fees
• Renewal terms and rate escalation clauses
• Customer service reputation

Step 5: Enroll with Your Chosen Supplier

Once you've selected a supplier, the enrollment process is straightforward:

1. Complete the supplier's enrollment form
2. Provide authorization for the switch
3. Wait for confirmation (typically 1-2 billing cycles)
4. Continue receiving gas service without interruption

Benefits of Working with an Energy Broker

While you can navigate the supplier selection process independently, working with a commercial energy broker offers significant advantages:

• Market Expertise: Brokers understand market dynamics and can time your purchase strategically
• Supplier Relationships: Access to competitive rates not available to individual buyers
• Time Savings: Brokers handle the research, comparison, and negotiation
• Ongoing Management: Contract monitoring and renewal optimization

Common Mistakes to Avoid

When navigating Illinois's deregulated natural gas market, avoid these common pitfalls:

• Focusing Only on Rate: Consider total cost including fees and contract terms
• Ignoring Contract Length: Longer contracts may lock in unfavorable rates
• Missing Renewal Deadlines: Auto-renewal clauses can result in higher rates
• Not Verifying Supplier Licensing: Always confirm suppliers are licensed in Illinois

Maximizing Your Savings in Illinois

To achieve the maximum 20-40% savings potential in Illinois's deregulated market:

1. Compare at least 5-7 suppliers before making a decision
2. Time your purchase during favorable market conditions
3. Consider your risk tolerance when selecting rate structures
4. Negotiate contract terms, not just rates
5. Review and optimize your contract annually

Getting Started Today

The first step toward lower commercial natural gas costs in Illinois is understanding your current situation. Request a free rate analysis from our team to see how much your business could save by switching suppliers in Illinois's deregulated market.