What Happens Next
Illinois Gov. Bruce Rauner has signed HB 3766, legislation capping fees that electricity providers can charge both residential and business customers who want to switch providers. The Decatur (IL) Herald & Review reports that the Citizens Utility Board, a consumer advocacy group, “said the charges have become an issue since Illinois deregulated its electricity market, allowing new supply companies to compete with the cost of electricity supplied by traditional utilities such as Ameren Illinois.” According to the CUB, “many alternative deals were good to begin with but lost their appeal as rates rose over time, prompting customers to change their minds and want out early.” The Herald & Review also notes that the legislation had 21 sponsors in the state House and 12 in the state Senate. Under the new legislation, exit fees will be capped at $50 for residential and $150 for business customers who decide to end their contracts early.
Gov. Rauner’s signature meant the legislation took effect immediately, the Herald & Review noted. Although it covers all new electricity contracts, those customers who have already signed contracts will be subject to any exit fees as stipulated by their current contract until it expires.
What This Means For Small Businesses
As CUB Executive Director David Kolata told the Decatur (IL) Herald & Review, “Illinois has taken a big step forward in protecting Illinois electric shoppers” with the new law. Small business owners who currently use Ameren or ComEd aren’t charged exit fees, so the new legislation won’t affect them. However, many small businesses in the Chicago area and across the state have chosen to use alternative energy suppliers, and the new legislation may result in lower overhead expenses for these businesses.
Additional Reading
WJBC-AM also covered the story.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
