Ten Questions to Ask a Retail Electric Supplier

A quoted rate is the start of a conversation, not the end of one. Behind any number sit the terms that actually determine what you pay and how much risk you carry: what the price includes, what can move during the term, how much your usage can vary, what happens at renewal, and what it costs to leave. The ten questions below are designed to surface those terms. Ask them in writing, tie each answer to the contract language, and use the responses to compare offers on the same footing.

1. What exactly is included in this price?

Start with scope. Is the number you were quoted the full supply price, or does it cover only the energy component with other supply-side costs handled separately? Ask the supplier to list what the rate includes and what it does not. This one answer reframes every comparison that follows, because a "lower" rate that excludes more is not actually lower.

2. Which costs are fixed, and which pass through?

This is often the most revealing question. In many contracts, some costs are locked and others — capacity, transmission, ancillary services, certain regulatory charges — pass through and can change during the term. Ask for the specific list of fixed versus pass-through items. A fixed-sounding price with a long pass-through list carries more variability than it appears to. Our guide on fixed versus index commercial electricity explains why this distinction matters so much.

3. What is the usage bandwidth, and how is out-of-band usage settled?

A price is built around an assumed volume. The bandwidth (or swing) clause defines how far your actual usage can drift before the difference is settled at a market-referenced price instead of your contract rate. Ask how wide the band is, whether it is measured monthly or over the term, whether it is symmetric for over- and under-use, and what price applies outside it. Seasonal and variable loads feel this term the most.

4. How is my usage shape assumed, and did you use my real data?

Ask whether the quote is built from your actual interval data or from a generic profile. A price based on your real load is more likely to hold up; one based on an assumption can carry a cushion or expose you to reconciliation later. Providing accurate data up front is one of the few things fully within your control.

5. What are the renewal and evergreen terms?

Find out what happens when the contract ends. Does it roll to a month-to-month rate, auto-renew for another term, or simply stop? Ask how much notice you must give to avoid an automatic renewal and how that notice must be delivered. Evergreen and hold-over rates are a common place for cost to creep in quietly.

6. What fees apply, including early termination?

Ask for every fee: enrollment, administrative, late payment, and especially early termination. Understand how an early-termination charge is calculated, because some are tied to market conditions and can be substantial. If your business might move, close, or restructure during the term, this answer matters more than the headline rate.

7. What are the credit terms and requirements?

Suppliers extend credit between buying energy and getting paid, so they assess yours. Ask what credit review applies, whether a deposit or guarantee is required, and whether your credit profile is reflected in the price. Understanding this helps you see why your quote looks the way it does and whether a stronger profile should earn better terms.

8. How and when will I be billed, and by whom?

Clarify the mechanics. Will the supplier bill you directly, or will supply appear on your utility bill under consolidated billing? When are payments due, and how are disputes handled? These operational details affect cash flow and administrative load, and they are easy to overlook until the first invoice arrives.

9. Which charges do you control, and which belong to the utility?

Make the split explicit. A competitive supplier — an Alternative Retail Electric Supplier (ARES) licensed by the Illinois Commerce Commission — affects only the supply portion of your bill. Your delivery utility, ComEd in the north or Ameren Illinois in central and southern Illinois, continues to own the wires, meter, and outages and bills delivery separately. Ask the supplier to be clear about this so the quote is never mistaken for your whole bill. See /utilities/comed/ for how that division appears on a northern Illinois statement.

10. What happens if my usage or operations change during the term?

Businesses change: they add a line, expand a building, electrify equipment, or downsize. Ask how the contract handles a material change in load, whether accounts can be added or removed, and what it would take to amend the agreement. A contract sized to today's operation can become a poor fit if tomorrow's is different.

Putting the Answers to Work

Ten answers are only useful if you use them to compare offers on identical terms. Normalize the quotes to the same product, term, start date, and volume assumptions, then read the terms — not just the rate — side by side. Our guides on how to compare commercial energy proposals and how to evaluate an Illinois ARES provider walk through that comparison, and /commercial-energy-procurement/ covers structured buying support. The supplier's willingness to answer clearly and in writing is itself a signal about how the relationship will run.

Sources

• Illinois Commerce Commission
• Plug In Illinois
• ComEd
• Ameren Illinois

This guide is educational and does not promise any specific savings or outcome. The terms behind any quote depend on your load, your contract, and market conditions; confirm the exact language with your supplier and the primary sources above.