An Assessment of the Impact of Deregulation on the Relative Price of Electricity in Illinois

Though itʹs commonly thought that electricity deregulation has, by and large, failed to deliver its anticipated results, consumers in Illinois have benefited from deregulation when compared to what has happened to rates over the past several years in bordering states. This conclusion is supported by a comparison of nominal and real rates paid by different customer classes, theoretical predictions, and consideration of fuel cost impacts and capacity expansions.