How to Compare Commercial Energy Proposals in Illinois
By Illinois Commercial Energy editorial team
Reviewed by JakenEnergy commercial energy team
Comparing commercial energy proposals is where good procurement is won or lost. The mistake is comparing headline rates; the discipline is normalizing every proposal onto the same basis and reading the terms behind the number.
Match before you compare
Proposals are only comparable when the key variables are the same:
- Delivery start date and term — a July start and an October start price differently; a 12-month and a 36-month term aren't the same product.
- Included components — energy, PJM/MISO capacity, transmission, line losses, renewable obligations, ancillary services, and supplier fees. Confirm which are in the rate and which are passed through separately.
- Volume tolerance (bandwidth/swing) — the allowed variance around expected usage, and the cost when you fall outside it.
- Credit terms — deposits or credit conditions that change the effective deal.
If these differ across proposals, normalize them first. Our apples-to-apples worksheet walks through the mechanics.
Read the terms, not just the rate
A low headline rate can hide broad exclusions, tight tolerances, or an aggressive renewal clause. Before choosing, review the contract terms — pricing scope, change-in-law, termination, and renewal/holdover language. The contract expiration risks guide covers the renewal traps specifically.
Benchmark against the utility
Every proposal should also be measured against the applicable utility default supply — the price to compare — not a national average, so you know whether shopping actually beats staying put for that account.
A simple comparison checklist
- Same start date and term across all proposals.
- Same included components (or explicitly noted differences).
- Tolerance and out-of-band cost understood.
- Renewal, termination, and change-in-law terms read.
- Benchmarked against utility default supply.
Follow the full sequence in how commercial energy procurement works.
Sources
- Illinois Commerce Commission — Electric Choice Basics
- Illinois Power Agency — Electricity Supply Rates
No comparison method guarantees savings; it ensures the decision is made on comparable, fully-loaded terms.
Frequently Asked Questions
QWhy can't I just pick the lowest rate?
Because two proposals with the same headline cents-per-kWh can behave very differently once you account for what's included (energy, capacity, transmission, losses, fees), volume-tolerance clauses, delivery dates, and contract terms. A low rate with broad exclusions or tight tolerances can cost more than a slightly higher, fully-loaded one. Compare on a matched, fully-loaded basis.
QWhat should be matched across proposals before comparing?
Delivery start date and term, the scope of included cost components, volume/bandwidth tolerance, and credit terms. If two suppliers price different scopes or different start dates, their rates are not comparable until you normalize them onto the same basis.
QWhat is the single most overlooked item in a proposal?
Usually the contract terms behind the rate — renewal/auto-renewal language, termination provisions, and pricing exclusions. The rate gets the attention, but these terms often determine the real cost. Read them before signing.