Average Illinois Commercial Electricity Bill: Benchmarking for Small to Medium Businesses in 2026

For small to medium-sized businesses (SMBs) in Illinois, energy costs are no longer just a line item—they are a significant operational challenge. As we move into 2026, the landscape of illinois commercial electricity rates 2026 has shifted dramatically. With capacity prices hitting record highs in the PJM territory (serving ComEd) and fluctuating MISO rates (serving Ameren), business owners are asking: "Is my bill normal?"

Understanding the small business electricity cost illinois is the first step toward reclaiming control over your budget. This guide provides the benchmarks you need to compare your spend against peers, decodes the hidden factors inflating your costs, and offers a roadmap to slash your expenses before the next price shock hits.

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Sources:

• U.S. Energy Information Administration (EIA)
• PJM Interconnection
• Illinois Commerce Commission (ICC)
• ComEd Commercial Services

What's a 'Normal' Commercial Electricity Bill in Illinois? (Current SMB Benchmarks)

Benchmarking is critical because electricity usage varies wildly by industry. A 2,000-square-foot boutique uses power very differently than a 2,000-square-foot commercial kitchen. To understand if your small business electricity cost illinois is competitive, you must look at averages for your specific sector.

2026 Average Monthly Bill Estimates by Industry

The following table reflects estimated monthly totals including supply, delivery, and taxes for businesses in the ComEd/Northern Illinois region for 2026. These figures assume a standard fixed-rate supply contract and typical operational hours.

Business Type	Avg. Monthly Usage (kWh)	Avg. Peak Demand (kW)	Estimated Monthly Bill (2026)	Avg. Cost per kWh (All-in)
Small Retail/Office	2,500 - 4,000	10 - 20	$450 - $750	$0.18 - $0.19
Fast Food Restaurant	12,000 - 18,000	40 - 60	$2,100 - $3,200	$0.17 - $0.18
Full-Service Restaurant	25,000 - 40,000	80 - 120	$4,500 - $7,000	$0.17 - $0.18
Small Grocery Store	45,000 - 65,000	100 - 150	$7,500 - $11,000	$0.16 - $0.17
Light Manufacturing	50,000 - 100,000	150 - 300	$8,000 - $16,000	$0.15 - $0.16
Medical Clinic	8,000 - 15,000	30 - 50	$1,400 - $2,600	$0.17 - $0.18

Deep Dive: How to Read Your 2026 Illinois Commercial Bill

To truly benchmark your costs, you need to look past the total amount due. A standard Illinois commercial bill is divided into three primary "buckets." If you want to compare illinois business energy suppliers, you must know which bucket they actually control.

1. Supply Charges (The "Market" Bucket)

This is the only part of the bill that a competitive supplier can change. It includes:

• Energy Charge: The actual cost of the electrons you consumed.
• Capacity Charge: Your contribution to grid reliability (often based on your PLC).
• Transmission (NITS/Transmission Service): The cost of moving power over high-voltage lines.
• Ancillary Services: Small fees for grid balancing and frequency control.

2. Delivery Charges (The "Utility" Bucket)

This portion is paid to ComEd or Ameren regardless of who provides your supply. These rates are non-negotiable and approved by the Illinois Commerce Commission.

• Customer Charge: A flat monthly fee for being connected to the grid.
• Standard Metering Charge: The cost of maintaining your meter.
• Distribution Facilities Charge: Based on your peak demand (kW), this pays for the local poles, wires, and transformers.
• IL Power Agency (IPA) Efficiency Programs: Mandatory state-wide fees for energy efficiency and renewable energy initiatives.

3. Taxes and Mandates (The "Government" Bucket)

• Municipal Tax: Varies by city (Chicago's is higher than Naperville's).
• State Excise Tax: A flat tax based on usage.
• Franchise Cost: A fee paid to the municipality for the utility's right-of-way.

Case Study: The Tale of Two Bakeries

Consider two bakeries in Aurora, IL, both using 10,000 kWh per month.

• Bakery A (Steady Load): Operates 24/7 with high-efficiency ovens that run continuously. Their peak demand is 20 kW. Their bill is $1,650.
• Bakery B (Spiky Load): Operates only from 5:00 AM to 11:00 AM. They turn on four massive, older ovens simultaneously at 5:00 AM, creating a demand spike of 65 kW. Their bill is $2,400.

Even though they use the same amount of "energy," Bakery B pays nearly 50% more because their "load shape" is inefficient. This is why how to lower comed commercial bill starts with behavior, not just light bulbs.

Why Regional Differences Matter

While the averages above focus on the ComEd region, businesses in Central and Southern Illinois (Ameren territory) often see different structures. Ameren's delivery charges can be slightly lower in rural areas, but their supply volatility has increased due to MISO's seasonal capacity auctions. If you are looking to compare illinois business energy suppliers, ensure you are looking at rates specific to your utility zone.

The "Price to Compare" Trap

Many small businesses default to the utility's "Price to Compare." In 2026, this is often a risky strategy. Utility rates are subject to "purchased power adjustments" that can change monthly. Competitive retail electric suppliers (CRES) allow you to lock in commercial electricity rate illinois for 12 to 48 months, providing the budget certainty that the utility cannot.

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Decoding Your Bill: 5 Key Factors That Inflate Your Illinois Commercial Energy Costs

If your bill is higher than the benchmarks above, it’s likely due to one of five specific factors. Understanding these allows you to target your "how to lower comed commercial bill" efforts more effectively.

1. The Capacity Tag (PLC): The Silent Profit Killer

This is the "hidden" part of your bill that has exploded in 2026. Your Capacity Tag, or Peak Load Contribution (PLC), is based on your usage during the five highest-demand hours on the entire PJM grid during the previous summer.

• The 2026 Context: Following the recent PJM capacity auction, the price for this reliability service increased by nearly 800% in certain zones. If your business has a high PLC, you are feeling this hit more than any other line item.
• The Impact: If you ran your AC at full blast during those five hours last summer, you are paying for it every single month this year, regardless of how much energy you use today.
• Learn More: Read our deep dive on ComEd Capacity Charge 2026 Explained.

2. Demand Charges: Paying for Your 'Size'

Most residential bills only charge for consumption (kWh). Commercial bills charge for Demand (kW)—the highest amount of power you drew at any one 15-minute interval.

• The Inflation Factor: If you turn on all your heavy machinery or kitchen appliances at 8:00 AM sharp, you create a "spike." That 15-minute spike can account for up to 50% of your total monthly bill.
• The 2026 Twist: With the electrification of fleets, many Illinois SMBs are installing EV chargers. If not managed properly, an EV charger can double your peak demand in a single afternoon, leading to a permanent increase in your delivery costs.

3. Transmission Costs (NITS): The Infrastructure Toll

Network Integration Transmission Service (NITS) charges cover the cost of moving high-voltage electricity across the state. These rates are set by federal regulators and have been rising steadily to fund grid resilience projects. For many Illinois SMBs, transmission now costs more than the actual energy itself. In 2026, ComEd's transmission rates have seen an upward adjustment to account for the integration of new renewable energy sources in Western Illinois.

4. Low Power Factor Penalties: The Invisible Waste

In many manufacturing and industrial settings, motors and transformers can cause "reactive power" waste. ComEd and Ameren penalize businesses that have a Power Factor below 0.85 or 0.90. This is often listed as a "Power Factor Adjustment" or "KVAR charge" and can add hundreds of dollars to a bill without adding any value. It's essentially a penalty for having "dirty" power usage.

5. Data Center Competition: The Suburban Squeeze

The massive growth of data centers in the Elk Grove Village, Aurora, and DeKalb corridors is a major driver of illinois commercial electricity rates 2026. Data centers require massive, constant amounts of power. This high demand "pulls" prices upward for everyone else on the grid. As an SMB, you are effectively competing with tech giants for the same local transmission capacity.

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Detailed Efficiency Roadmap: How to Beat the Average

To effectively lower your spend, you need a plan that spans the calendar year. Energy management in Illinois is seasonal.

Your 12-Month Energy Savings Calendar

Period	Focus Area	Goal
January - March	Heating & Envelope	Optimize RTU (Rooftop Unit) schedules and seal air leaks to minimize winter "ratchet" charges.
April - May	Procurement & RFP	Review compare illinois business energy suppliers. Lock in rates before the summer volatility begins.
June - August	Capacity Management	Execute "Peak Shaving." This is the window that determines your 2027 capacity costs.
September - October	Lighting & Controls	Take advantage of year-end utility rebates for LED retrofits and smart thermostats.
November - December	Budgeting & Analysis	Conduct a commercial load analysis to prepare for the following year.

7 Proven Strategies to Beat the Average Illinois Electricity Bill

Knowing how to lower comed commercial bill isn't just about turning off lights. It requires a strategic approach to both how you buy energy and how you use it.

1. Optimize Your Capacity Tag (The Summer Strategy)

Since your 2027 bill is determined by your usage during a few hours in the summer of 2026, "Peak Shaving" is the highest-ROI activity you can perform.

• Action: Sign up for peak alerts. When the grid is stressed, raise your thermostat by 4 degrees and dim non-essential lighting. Reducing your load by just 20% during these windows can save thousands of dollars the following year.

2. Stagger Your Equipment Startup

To beat high demand charges, avoid the "morning spike."

• Action: If you run a restaurant, turn on the ovens at 9:00, the dishwashers at 9:30, and the HVAC at 10:00. This flattens your demand curve and lowers the kW charge on your bill.

3. Leverage Professional Energy Procurement

Don't sign the first offer that comes in the mail. Working with commercial energy brokers in illinois allows you to access wholesale market pricing that isn't available to the general public.

• Action: Request an "Apples-to-Apples" comparison. In 2026, many suppliers are hiding capacity costs in the "fine print." Ensure your broker is showing you "All-In" fixed pricing vs. "Energy-Only" pricing.
• Advanced Tactic: For larger SMBs (spending >$5,000/month), consider a Block and Index strategy. This allows you to "hedge" or fix a portion of your load (e.g., your baseload) while paying real-time prices for the variable portion. This is often the most cost-effective way to lock in commercial electricity rate illinois without paying the high risk-premiums of a 100% fixed contract.

4. LED Retrofitting with Utility Rebates

Lighting can account for 20-30% of an office or retail energy bill.

• Action: Use ComEd or Ameren's "Small Business Energy Savings" programs. They often cover 50-75% of the cost of switching to LEDs. The payback period for these projects in 2026 is often less than 12 months.
• Expansion: Don't just swap bulbs; install sensors. Occupancy sensors in bathrooms and storage areas can reduce lighting costs by an additional 15% on top of the LED savings.

5. Install an Energy Management System (EMS)

For SMBs with multiple HVAC units, an EMS can coordinate their cycles so they never all run at the same time. This is a primary tactic for retail energy management. In 2026, smart thermostats like Nest or Ecobee can be integrated into larger building automation systems, allowing you to manage multiple locations from a single smartphone app.

6. Correct Your Power Factor: Stop the KVAR Bleed

If you see KVAR charges on your bill, installing capacitor banks can eliminate those penalties.

• Action: Request an energy bill analysis & audit to see if power factor correction is right for your facility. For a typical machine shop, a $3,000 investment in power factor correction can often save $150/month, paying for itself in two years and continuing to save money for decades.

7. Explore Community Solar: The Easiest Discount

Illinois has one of the most robust community solar programs in the country, bolstered by the Clean Energy Jobs Act (CEJA).

• Action: You can subscribe to a local solar farm and receive "Solar Credits" on your ComEd or Ameren bill. This typically results in a guaranteed 10-20% discount on the supply portion of your bill with no equipment on your roof. This is ideal for renters who cannot install panels themselves.

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The 2026 Forecast: How to Lock In Rates Now and Avoid the Coming Price Shock

The commercial energy price forecast illinois for the remainder of 2026 and into 2027 is colored by one word: Volatility.

The PJM Capacity Crisis: A 2026-2029 Outlook

In late 2024 and 2025, PJM capacity auctions saw prices jump by over 800% in some regions. These costs are hitting bills in June 2025 and will persist through May 2026. However, the next auction is expected to remain high due to three factors:

1. Plant Retirements: Many coal-fired plants in Southern Illinois and neighboring states are closing faster than new wind and solar can be built.
2. AI and Data Centers: The power demand from artificial intelligence is real. Northern Illinois is a global hub for data centers, and they are consuming the "surplus" power that used to keep prices low.
3. Transmission Delays: It takes years to build new high-voltage lines. Until then, local congestion will keep prices high in the Chicagoland area.

Strategic Timing: When to Lock In

Waiting for rates to "go back to normal" is a strategy that has failed most Illinois businesses over the last three years.

1. Hedge Against Inflation: Energy is often the first commodity to spike during geopolitical or economic instability.
2. Capture the Forward Curve: Currently, forward prices for 2027 and 2028 are trading at a discount compared to the immediate 2026 spot market. By signing a long-term contract now, you can "blend" today's high costs with tomorrow's lower projected rates.
3. Budget Certainty: For a small business, knowing exactly what your kWh rate will be for the next 36 months allows for much more accurate cash flow planning.

The Negotiation Checklist: Don't Get Burned

When you compare illinois business energy suppliers, use this checklist to ensure you are getting a fair deal:

• Fixed vs. Pass-Through: Does the price include Capacity and Transmission? If not, your bill will be much higher than the quoted rate.
• Bandwidth Provisions: Most contracts have a "bandwidth" clause (usually 10% or 25%). If your usage changes significantly, the supplier can move you to a variable market rate. Ensure your bandwidth matches your business growth plans.
• Early Termination Fees (ETF): What happens if you sell your business or move? Look for contracts with "moving provisions" that waive the ETF.
• Auto-Renewal Traps: Many suppliers will automatically renew you at a "market-clearing" rate (which is always higher than the introductory rate) if you don't cancel 30-90 days in advance.

How to Lock In Commercial Electricity Rate Illinois

The process is simpler than most owners realize:

1. Gather Data: Have 12 months of recent bills ready.
2. Define Your Risk Tolerance: Do you want 100% fixed certainty, or are you willing to float some components to save a few fractions of a cent?
3. Analyze the Contract: Look for "Material Change" clauses that might trigger a rate increase if the state passes new energy taxes.

Conclusion: Take Control of Your 2026 Energy Budget

The average illinois commercial electricity bill is a benchmark, not a destiny. While market forces like PJM auctions and transmission upgrades are driving illinois commercial electricity rates 2026 upward, SMBs have more tools than ever to fight back.

By understanding your PLC, staggering your demand, and using a professional to compare illinois business energy suppliers, you can position your business to thrive while competitors struggle with rising overhead.

Don't wait for your July bill to arrive before taking action. Start with a commercial load analysis today and see how far below the average your bill can actually go.

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Related Resources:

• How PJM Capacity Prices Affect Illinois Business Bills
• Budgeting for 2026 Capacity Line Item Scenarios
• Small Business Energy Efficiency Guide