Trystan Casey
Naperville, Illinois, has seen an increase in electric rates over the years, with the average residential rate being around 13.32 cents per kWh as of August 2025. The city has a deregulated energy market, allowing residents to choose from various electricity providers and select plans with varying rates and contract lengths. In 2024, a third-party consultant performed a rate study to determine the rates for 2025, which resulted in an approximate $8 increase in the monthly bill for the average residential customer. The city is also committed to renewable energy initiatives, with almost 5,000 residents and businesses pledging to go green.
| Characteristics | Values |
|---|---|
| Year of Electric Rate Increase | 2025 |
| Average Residential Rate | 13.32 cents per kWh |
| Average Monthly Bill | $107.43 |
| Average Bill in January 2025 | $115.83 |
| Average Bill in 2027 | $129.68 |
| Number of Electricity Providers | 43 |
| Average Business Rate | 12.95 cents per kWh |
| Average Business Monthly Bill | $51,928 |
| Average kWh Usage (Residential) | 806 kWh |
| Average kWh Usage (Business) | 4,009 kWh |
| Electricity Rate Range | 6.75–9.99 cents per kWh |
| Purchased Power Adjustment (PPA) | Monthly adjustment based on actual power costs |
| Electricity Rate in December 2024 | 16.1 cents per kWh |
| Electricity Rate in December 2023 | 16.1 cents per kWh |
| Electricity Provider | Commonwealth Edison (ComEd) |
| Renewable Energy Commitment | Naperville Renewable Energy program |
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What You'll Learn
Naperville electricity rates in 2025
Naperville's electricity rates are expected to increase in 2025. In January 2025, the average residential customer using 844 kWh of electricity monthly will experience an approximate $8 increase in their monthly bill, bringing the average monthly bill to $115.83. This rate is still 20% lower than surrounding communities and lower than the average ComEd bill.
The City of Naperville engaged Utility Financial Solutions, a third-party consultant, to conduct a rate study in 2024 to determine the rates for 2025 and support the Electric's service improvement plans through 2027. The rate increase is necessary to maintain the electric system, repair or replace equipment, and invest in new technologies.
Naperville electricity rates vary, but the average residential rate is around 13.32 cents per kWh, resulting in a monthly bill of approximately $107.43. However, rates can range from 6.34 cents to 33.92 cents per kWh, depending on the provider and plan chosen. Commercial rates in Naperville are typically cheaper than residential rates due to volume discounts, with businesses paying an average of 12.95 cents per kWh and an average monthly bill of $51,928.
To save money on their electric bills, residents can consider installing solar panels or subscribing to a community solar farm, which can provide savings of 5-15%. Additionally, residents can compare different electricity providers and plans to find the best rates and take advantage of the deregulated electricity market in Illinois, which allows customers to choose their electricity provider.
Overall, while Naperville's electricity rates are expected to increase in 2025, the city maintains competitive rates lower than the surrounding communities, and residents have options to manage their energy costs.
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Third-party rate study in 2024
Naperville's electric rates were increased in 2025, following a third-party rate study conducted in the summer of 2024 by Utility Financial Solutions. This study aimed to determine the rates to be charged from 2025 to support the Electric service and its improvement plans through 2027.
The third-party rate study conducted by Utility Financial Solutions, a third-party consultant, was an essential step in ensuring the long-term reliability of Naperville's electric system. The study took into account the constant demands on the electric system and the need for appropriate finances to maintain the system, repair or replace equipment, and invest in new technologies.
The specific findings of the study are not publicly available, but it likely considered the impact of factors such as the lingering effects of the 2020 pandemic, which had caused longer lead times for ordering essential equipment, and the need to maintain rates lower than surrounding communities.
The study's recommendations would have informed the decision to increase electric rates, ensuring that Naperville could continue providing reliable electric services to its residents and businesses.
Impact of the Rate Increase:
The rate increase, implemented in January 2025, resulted in an approximate $8 increase in the monthly bill for the average residential customer, defined as someone using 844kWh of electricity monthly. Despite this increase, Naperville's average monthly bill of $115.83 remained 20% lower than surrounding communities, including ComEd, which had an average bill of $129.68.
Naperville's electricity rates continue to be competitive, with 43 electricity providers in the area, and the city maintains its commitment to keeping rates lower than surrounding areas in the foreseeable future.
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Purchased Power Adjustment (PPA)
Naperville's electric rates are set to increase in January 2025, with the average residential customer expected to see an approximate $8 increase in their monthly bill. This change comes as a result of a new rate study conducted in the summer of 2024 to determine the rates for 2025-2027. The average monthly bill in Naperville will be $115.83, which is still lower than the surrounding communities and ComEd's average bill.
Now, let's talk about the Purchased Power Adjustment (PPA) in relation to these rate changes. The PPA is a monthly adjustment on electric bills, based on the actual power costs incurred by the utility company. It changes every month and is calculated using a six-month rolling average of power costs. The PPA baseline is adjusted during each utility rate study to account for projected electricity costs, ensuring that the utility company neither gains nor loses revenue from the PPA itself.
The PPA is an essential tool for utility companies to manage their finances and maintain reliable service. It helps them deal with the fluctuating costs of power purchases and allows them to recover costs for maintaining and upgrading their equipment. This is particularly important given the after-effects of the 2020 pandemic, which have resulted in longer lead times and higher costs for essential equipment like transformers, cables, and switches.
Additionally, the PPA plays a role in promoting renewable energy sources. Energy buyers, including utilities, corporates, and industrials, can utilize PPAs to purchase energy from renewable projects. This enables them to meet their green energy goals and comply with regulatory obligations. For renewable energy projects, PPAs provide a secure revenue stream, making these projects more financially viable and bankable.
In summary, the Purchased Power Adjustment (PPA) is a dynamic pricing mechanism that ensures utility companies can recover their power costs while providing a platform for the integration of renewable energy sources into the grid. While the PPA contributes to rate adjustments, it is designed to be revenue-neutral for the utility company, with the primary goal of maintaining reliable electric service for customers.
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Energy deregulation in Naperville
Prior to energy deregulation, most consumers in Illinois stayed with ComEd, one of the local utilities in Naperville, along with Ameren. However, by around 2010, competition across the state began to intensify, and consumers found they had a choice of a number of attractive deals. In 2012, Naperville city officials agreed to negotiate an aggregation deal, which resulted in cheaper energy prices in the city.
Energy deregulation means that utilities continue to handle the distribution of electricity, while energy providers purchase the electricity that is then delivered by the utility company. Energy providers in Illinois include Champion Energy, Constellation Energy, and Spark Energy, Reliant Energy, and AEP Energy, the latter of which is one of the leading providers of renewable energy in Naperville.
The deregulated energy market in Naperville means that energy providers must compete for customers, which results in better prices and improved customer service. For example, in 2024, Utility Financial Solutions, a third-party consultant, performed a new rate study to determine the appropriate rates to charge in 2025. As a result, the average residential customer in Naperville will see an approximate $8 increase in their monthly bill in January 2025, which is still 20% lower than surrounding communities.
Naperville electricity rates vary, but the average residential rate is around 13.32 cents per kWh, with a monthly bill averaging $107.43. The average business in Naperville pays 12.95 cents per kWh for electricity and has an average monthly bill of $51,928.
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Energy savings for residents
The City of Naperville in Illinois has seen some fluctuations in its electricity rates over the years, with a projected increase in 2025. While the rates are generally lower than those of surrounding communities, residents can benefit from learning about energy savings. Here are some tips to help Naperville residents save energy and reduce their utility bills:
Dishwashers and Refrigerators
- Choose a compact, ENERGY STAR® certified dishwasher with multiple wash cycle selections.
- Only run your dishwasher when you have a full load, and use the no-heat drying option or air-dry settings.
- When buying a new refrigerator, opt for an ENERGY STAR® certified model, which is more energy-efficient.
- Maintain the refrigerator's temperature between 35°F and 38°F, and ensure the door seals are airtight to prevent cool air from escaping.
- Place your refrigerator away from heat sources, such as ovens or direct sunlight, to reduce its energy use.
Laundry and Drying
- Wash your laundry with cold water whenever possible, as hot water heating accounts for about 90% of the energy used by your machine.
- Wash full loads of laundry to save water, and use the extended spin option to reduce moisture in your clothes.
- Avoid using a dryer if possible. Instead, dry your clothes on a clothesline outdoors or an indoor drying rack.
- If you must use a dryer, ensure the lint trap and exhaust vent are clean, and seal any gaps with caulk or spray foam to improve energy efficiency.
Lighting and Temperature Control
- Replace your most frequently used light bulbs with ENERGY STAR® certified LED bulbs, which use up to 90% less energy and last longer.
- Install a smart or programmable thermostat to automatically adjust your home's temperature when you are away, reducing energy costs.
- Keep your home well-insulated, especially in attics and walls, to prevent heat loss during winter and maintain cool temperatures in summer.
- Use ceiling fans in conjunction with air conditioning to improve airflow and create a cooler environment without increasing energy consumption.
Other Appliances and Habits
- When buying a new freezer, choose an ENERGY STAR® certified model for maximum energy efficiency.
- Scrape dishes instead of rinsing them before placing them in the dishwasher to save water and reduce energy use.
- Use a low-flow showerhead to save water and reduce electricity costs associated with heating water.
- Minimize the use of indoor ovens and stoves during hot weather, opting for outdoor grills or smokers instead to reduce indoor temperature and AC usage.
- Keep your AC units well-maintained and clear of any obstructions, such as nearby plants, to ensure efficient airflow.
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Frequently asked questions
Naperville's electric rates are set to increase in January 2025.
The average residential customer, defined as someone using 844kWh of electricity monthly, will see an approximately $8 increase in their monthly bill. The average monthly bill will now be $115.83, which is still 20% lower than surrounding communities.
The utility industry has been impacted by the lingering effects of the 2020 pandemic, with long lead times of up to three years now required to order and receive transformers, cables, and switches. This has resulted in higher costs for the utility provider.
Electricity rates in Naperville vary, but the average residential rate is around 13.32 cents per kWh, with a monthly bill averaging $107.43.
