For alternative energy supplier customers who routinely overpay, proposed reforms could provide some help

Maryann Jozwiak and her husband see themselves as a relatively energy efficient couple. The lights around their house have all been switched out for energy efficient bulbs, set on timers and they don’t crank the heat. So in October 2024, when they found a $1,000 dollar electric bill waiting for them in the mail, they were “shocked.”

“We were thinking ‘What is this?’” Jozwiak, 68, said. “We had never seen a bill that high.”

Her husband combed through their records and past utility bills to figure out if they had missed anything. They called their utility company, Commonwealth Edison, and realized that, without their approval, their energy supplier had been switched over from ComEd to North American Power and Gas, a new company who charged them at almost three times the rate of ComEd.

Illinois’ energy market is flooded with “alternative energy suppliers” like NAPG, who upcharge consumers, costing Illinoisans an estimated $2 billion since 2015, according to the Citizens Utility Board. In an attempt to reform market, lawmakers are pushing for new regulations on alternative suppliers.

“It's absolutely ridiculous and horrible, and that's why we've introduced this bill,” said state Rep. Kimberly Du Buclet, D-Chicago. “If they want to raise the price, that's within their rights. But my angle is, you should let your consumer know that you're raising the price.”

The No More Utility Bill Rip-Offs Customer Protection Act would require energy suppliers to get written consent from customers for sudden price hikes in new contracts, and cap rates at no more than 25% higher than what ComEd and other utilities charge. It also includes provisions aimed at fostering transparency within the alternative energy supplier industry.

All energy bills in Chicago come from ComEd. Even if homeowners receive energy from an alternative supplier, ComEd owns the infrastructure, so the letterhead on bills is from them. A customer's supplier is often noted in much smaller letters near the bottom of the bill, allowing consumers to go months, or even years, without realizing their supplier has been switched.

The legislation would require suppliers to send their own bill that distinguishes them from ComEd.

Dan Onofrey, 64, a retiree from Blue Island, paid for energy from a company called “Just Energy” for about a year without realizing. Under that supplier, his energy bills nearly doubled from around $100 a month, to $180.

He assumed the price spike was from his new electric vehicle that he charged at his house. After a couple months of higher bills, he began charging his car for free at a local grocery store. When his bill didn’t go down, Onofrey bought new energy-efficient lights to replace all the old bulbs in his house.

Eventually, he called ComEd, who pointed out his connection with Just Energy.

“I didn't even see the line on the bill,” Onofrey said. “It's just a small little sentence there and they don't make it painfully obvious that you've been switched, so I wasn't aware of it.”

The legislation also prohibits incentive based pay for salespeople in an attempt to prevent shoppers from being lured in and forcefully signed up.

Liam Hawkshaw, a 65-year-old painter, got signed up for Just Energy during a Sam’s Club trip in 2024. The salesperson promised Hawkshaw a $150 Visa gift card for showing them his energy bill.

After showing his bill — but not consenting to a contract — Hawkshaw was switched over to Just Energy and unknowingly paid for their services for several months.

A couple weeks ago, at a Walmart in Evergreen Park, he saw another salesperson trying to recruit more people to Just Energy. “Listen, stop coming here,” he told them. “I fell into your lure last year and that's something I wish I'd never done, because I ended up losing money.”

Officials at North American Power and Gas and Just Energy could not be reached for comment Wednesday morning.

Jim Chilsen, communications director at Citizens Utility Board, says that as the weather gets warmer, there could be a spike in door-to-door salespeople pitching alternative energy supply deals.

CUB urges customers to be cautious of alternative energy salespeople trying to push better energy deals. They encourage people to double-check their bill line-by-line and stick with ComEd and Nicor for their energy and gas.

“Take a look at your bill and be aware of people coming to your door and wanting to see your bill,” Chilsen said. “Don't just give your bill out to anybody that can lead to you getting signed up without your OK.”