“In June 2006, Illinois legislation enabled real-time pricing. Each electric utility servicing at least 100,000 customers was required to file a tariff allowing residential customers to elect real-time pricing by January 2007. In setting the tariff, each electric utility was required to, at a minimum, describe its methodology and the manner in which real-time customers would have access to hourly and day-ahead prices.
In order to implement real-time pricing, each electric utility was required to install a meter that is capable of recording hourly intervals of energy use for each customer that elects real-time pricing, and was entitled to recover incurred costs in implementing real-time pricing. These costs were imposed on all customers — those who elected to participate in a real-time pricing rate and those who did not.” 
Illinois passed legislation in 2007 that directs utilities to reduce peak demand by 0.1% over the prior year, for ten years, by implementing cost-effective demand response programs and requires utilities to file a demand response plan with the Commission every three years. Also the Illinois Power Agency was created to develop annual electricity procurement plans for the Commission and to report annually to the General Assembly about, among other things, utilities’ demand response programs. (SB 1592)
In 2007 the Legislature also passed legislation requiring the Illinois Commerce Commission to set met metering and interconnection standards for renewable energy systems. (SB 680) [2, 3]
In 2009 the Legislature passed statewide renewable energy setback standards to establish a maximum setback limit for renewable systems. (HB 3746) 
The Illinois Commerce Commission began looking time of use pricing in 1995 for residential customers and hourly pricing for business customers was addressed prior to 2007 with residential customers having access to real-time pricing since 2007. The Commission addressed distributed generators by 2001 and had addressed net metering by 2008, and cost recovery for demand-response for the purpose of implementing programs of demand response within Illinois. [5, 6, 7]
“Via a June 2007 Order, the Illinois Commerce Commission found that Illinois utilities have complied with state standards that satisfy the “federal comparable standard test” relative to PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005. The EPACT 1252 proceeding is still open, however, as the Commission said, it needs to determine “whether it is appropriate to require utilities to provide time-based meters to all customers.”” 
Like many other states implementing smart grid, in 2009 a cost recovery rider was approved for the deployment of smart grid projects in Illinois. Projects that a cost recovery rider may apply to can be located through the SGIC Smart Grid Projects Page.
Parts of Illinois are within the PJM footprint ; within that area there is the opportunity for end-use customers to participate in demand response though curtailment service providers.
In November 2008, the Illinois Commerce Commission (ICC) initiated the Illinois State wide Smart Grid Collaborative to do a two-year review of the full range of implementation issues that will shape smart grid deployment across multiple stakeholder types in Illinois.
Time-of-use or Time-of-Day rates break the cost up seasonally and for electricity into periods based on either on-peak or off-peak pricing.
The hourly pricing and real-time pricing is based on the wholesale market price for energy at the company’s delivery point.
Demand response is a method of load management Illinois utilities are evaluating.
Distributed generators include qualifying cogeneration, small power production facilities, and net metering generators.
Net metering is available for any customer’s facility where energy production exceeds the energy supplied by the Company.
Utilities and Rate Schedules
Ameren Illinois Utilites
- Ameren Illinois Utilites Rates
- ComEd Rates
- MidAmerican Energy Rates
See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx
Illinois offers incentives for renewable energy generation, including Illinois Department of Commerce and Economic Opportunity biomass and biogas to energy grand and solar and wind rebate program. The state offers property tax incentives for commercial wind and all sizes of solar. Business projects also have the option of a state bond program may include whole building demand response upgrades but specific technologies are not identified. There are a few local options for grants and financing.
More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=IL
State Energy Office:
- Illinois Department of Commerce and Economic Opportunity The Bureau of Energy and Recycling
State Authority Dealing with Energy Regulation:
- Illinois Commerce Commission
- Docket Search: http://www.icc.illinois.gov/docket/Search.aspx, http://www.icc.illinois.gov/docket/reports/cases.aspx
Illinois Compiled Statutes
Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=IL
Illinois Statewide Smart Grid Collaborative
 Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
 Database of State Incentives for Renewables & Efficiency, Illinois Interconnection Standards, 03/19/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL15R&re=1&ee=1
 Database of State Incentives for Renewables & Efficiency, Illinois – Net Metering, 03/25/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL13R&re=1&ee=1
 Database of State Incentives for Renewables & Efficiency, Illinois Statewide Renewable Energy Setback Standards, 09/25/2009. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL17R&re=1&ee=1
 Ameren Illinois Utilities, Ameren Illinois Utilities rates. URL: http://www.ameren.com/sites/aiu/Rates/Pages/Home.aspx
 ComEd, Get rate information through tariff documents. URL: https://www.comed.com/customer-service/rates-pricing/rates-information/Pages/current-rates.aspx
 Illinois Electric Tariffs, MidAmerican Energy. URL: http://www.midamericanenergy.com/include/pdf/rates/elecrates/ilelectric/il-elec.pdf
 Draft for Comment of the National Action Plan on Demand Response The Federal Energy Regulatory Commission Staff Docket No. AD09-10, Prepared with the support of The Brattle Group, GMMB, Customer Performance Group, David Lineweber. URL: http://www.ferc.gov/legal/staff-reports/03-12-10-demand-response.pdf
 Illinois Statewide Smart Grid Collaborative. URL: http://www.ilgridplan.org/default.aspx