The letter from SmartEnergy. Click on the image to see a larger version.
The Citizens Utility Board (CUB) has recently seen an influx of offers from SmartEnergy, an alternative energy supplier that advertises a $100 “utility customer refund.” At a time when far too many Illinois residents are struggling to afford their utility bills, this could be an attractive offer. But is it legit? Read our analysis.
Claim: You are eligible to receive a $100 utility customer refund.
Fact: This is not a “refund;” it’s a bill credit applied as an incentive for switching to, and remaining on, SmartEnergy’s alternative supplier plan. And it isn’t even automatic! According to the advertisement, in order to get this “refund,” you must “enroll and remain in SmartEnergy’s fixed-rate electricity supply plan for 6 months, send [SmartEnergy] a copy of your sixth bill and your account must be current and in good standing at the time of redemption.”
Another important detail: The price!
Not actually listed anywhere on the advertisement, we had to find the price for SmartEnergy’s Chicagoland plan on their website: a whopping 15.5 cent per kilowatt-hour (kWh) rate for a 6-month contract. This is about 60 percent higher than ComEd’s current supply price of 9.66 cents per kWh. The 5.8 cents per kWh difference in price means you would eat up that $100 “refund” after about 1800 kWh of electricity usage, or about 2-3 months of average residential electric use. Always make sure to read the fine print and determine the price.
Claim: SmartEnergy provides customers with electricity from 100% renewable resources.
Fact: According to SmartEnergy’s website, the company “purchases renewable energy credits (RECs) to offset 100% of [customer] electricity usage.” Please know that this does not mean that your home will be powered by renewable energy. Instead, SmartEnergy will use some of your money to purchase RECs and according to the mailer a CUB staffer received, most of those RECs are associated with a hydropower dam in Canada– so they don’t even contribute to the construction of new renewables on northern Illinois’ power grid.
Renewable Energy Credits (RECs) are a market-based incentive used to promote renewable energy development. Whenever a new renewable energy source is added to the grid, the owner of that generation can make money by selling both the electricity they generate, and their renewable energy credits. While RECs are a critical tool for promoting renewable energy growth, and are used by the state of Illinois to meet our net zero goals, there is very little oversight of the REC market. Here at CUB, we don’t think you should have to pay extra for clean energy. Instead, we recommend that consumers look into community solar subscriptions and energy efficiency programs, which are two meaningful ways to support clean energy in Illinois and reduce our reliance on fossil fuels, all while saving money on your electric bills.
Has SmartEnergy been fined or investigated in other states for deceptive marketing tactics?
Yes, SmartEnergy has been fined in both Ohio and Maryland for violating consumer protections. In 2023, the Public Utilities Commission of Ohio fined SmartEnergy $122,000 for “providing customers misleading and deceptive information.” In 2025, the Maryland Public Service Commission ordered SmartEnergy to refund customers $6.5 million for violating Maryland law, and now the company no longer offers plans in the state.
Does CUB recommend switching to an alternative supplier?
Since 2015, Illinois consumers have lost more than $2 billion to alternative electric suppliers. So in the current electricity market, it’s likely that the regulated utility is your best bet. If you are considering an electricity offer, be careful to ask good questions and read the fine print before signing up.
For more detailed information about electric supplier choice in Illinois, see CUB’s factsheets, for ComEd and Ameren Illinois customers
And remember: Alternative suppliers are not allowed to charge you an exit fee if you decide to end your contract early. To cancel your contract, call your alternative supplier and tell them you want to cancel your plan. You should be automatically returned to your utility within two months.
If you think you were fraudulently signed up for an ARES deal, tell the supplier you want a refund. If you don’t like the supplier’s response, file a complaint with CUB, either online or by calling at 1-800-669-5556.
