What is a Retail Electric Supplier?

A Retail Electric Supplier (RES) is any electricity company who is certified to sell electricity to residential and commercial customers. These RES’s are in a handful of states including Illinois that have deregulated energy markets. As a solar owner, knowing your Retail Electric Supplier is important as well as understanding the role a RES plays in your energy use. 

Retail Electric Supplier VS Utility Company

An RES focuses strictly on supplying electricity, while a utility company is responsible for the maintenance and repairs on the infrastructure to deliver energy to its consumers. A utility company can also be the supplier in some cases. Typically, you will never pay your RES directly for energy, you will pay your utility company. The utility company bill will include the cost from the RES supply fees, the utility company delivery charges and taxes. The utility will pay the RES on your behalf for the energy you consumed during that billing period. 

Why Is This Not True In All States?

Illinois has a deregulated retail electric market. A deregulated market allows for competition in the market giving participants the ability to invest in power plants and transmission lines. It allows consumers to choose their electric supplier and in theory keep energy costs down. In regulated states such as Iowa and Wisconsin, the state public utility commission sets the rates utilities must follow. Each state chooses which to follow, a regulated or deregulated model for the energy and gas markets. 

Why Is It Important?

If you live in Illinois, it can be beneficial to change retail electric suppliers because each one has a different price per kWh. Switching to another RES could save you money, provide you with better customer service or allow you to purchase energy produced renewably. As a solar client with net metering, it is critical to know who your RES is and their net metering policy. Net metering credits are held with your RES, not your utility company. If you switch your supplier, you may lose your net metering credits and will need to apply for net metering with the new supplier. The credits built up with one supplier are not transferable to another or able to be cashed out.

If you own a solar array and you receive a letter that your RES will change, you will need to act. The letter will tell you how to opt out of the change and keep your current energy provider. If you have net metering credits and want to keep them, you must opt out. If you disregard the letter and your supplier changes you will not get your net metering credits, even if you return to your previous supplier.

In Conclusion

It is worthwhile to take time to understand your utility bill, including your supplier. Pay special attention to the price per kWh of electricity you are being charged by your supplier as well as any additional transmission and connection fees charged by your utility. By living in a deregulated state, you have control to seek a more affordable RES. 

If navigating the energy market has you lost and overwhelmed, work with an experienced solar company to help shed some light regarding the breakdown of your monthly electric bill. They can help you understand who your supplier and utility are and work with you to lower your energy costs and shield you from future rate increases.