Illinois Auction Frequently Asked Questions

How did the Illinois Electric Auction begin?
The Illinois Electric Service Customer Choice and Rate Relief Law ("Customer Choice Act"), enacted in December of 1997, was landmark legislation that restructured the electric industry in the State of Illinois. The law provides for a transition period up to January 1, 2007, in which the electric power system is to move toward a competitive market.

How has the Illinois electric market changed since passage of the Illinois Electric Service Customer Choice and Rate Relief Law ("Customer Choice Act")?
Since passage of the Customer Choice Act, all major Illinois electric utilities divested their generation assets to affiliated and unaffiliated companies and no longer own generation. In the wake of the sales and transfers, the State's largest electric utilities no longer own the generation assets that supply power to serve retail customers but, rather, function as "wires-only" companies.

With utility divestiture of generation plants, how are power prices determined?
These utilities must now purchase power in the wholesale market. The divestitures resulted in a fundamental change in how the major electric utilities acquire power and, consequently, how the Illinois Commerce Commission (ICC) regulates the rates for electric supply. The State's largest utilities' reliance on wholesale market purchases after 2006 combined with the simultaneous expiration of the rate freeze period will result in wholesale market forces dictating the price that retail customers will pay for power.

Has competitive markets saved customers any money?
The Illinois Commerce Commission (ICC) reports that retail customers have realized significant benefits from a residential rate reduction and a rate freeze through the Mandatory Transition Period ("MTP"). Rates for all customers have been frozen at 1997 levels, and residential rates for the State's two largest utilities, Commonwealth Edison ("ComEd") and Illinois Power (now AmerenlP), have been decreased by 20%. It is estimated that residential customers have saved approximately $4.5 billion as a result of the rate freeze and residential rate reductions. Furthermore, thousands of non-residential customers have achieved significant savings by taking advantage of the opportunity to switch from bundled service to delivery services.

Can electric consumers select Alternative Retail Electric Suppliers?
Illinois' largest commercial and industrial consumers will have a 30-50 day window to choose to stay with the utility or select an alternative supplier after the date the utilities set their rates.

Who is Integrys Energy Services?
Integrys is a wholly owned subsidiary of Integrys Energy Group (NYSE: TEG), a Fortune 500® energy company with more than $5.4 billion in assets and a 120-year history of financial strength, energy expertise and technical capability. Integrys serves more that 180,000 customers in 23 states and three Canadian provinces.

Is Integrys authorized to serve the Illinois electric market?
Integrys is one of 20 electric power marketers certified by the Illinois Commerce Commission (ICC) as an Alternative Retail Electric Supplier (ARES).

What information does Integrys need to provide rate alternative plans?
Integrys needs the following information to conduct power price analytical work for prospective customers: (a) Meter number, (b) Account number and (c) Rate code.

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