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Major utilities including Entergy and Xcel Energy are pushing to eliminate competitive bidding for regional transmission projects in MISO and SPP markets, according to a new report from Utility Dive. Former Federal Energy Regulatory Commission Chairman Neil Chatterjee warns this move would be "counterproductive and not in the interest of consumers."

Last updated: 2026-04-10

TL;DR: Utilities want to end competitive transmission bidding, which could lead to higher electricity costs for consumers in Michigan, Illinois, and other MISO states. Without competition, utilities face less pressure to control infrastructure spending, potentially increasing transmission fees on your monthly bill.

How Transmission Costs Impact Your Electricity Bill

Transmission costs directly affect every electricity customer's monthly bill through delivery charges. When utilities build new transmission lines or upgrade existing infrastructure, these costs get passed through to consumers via regulated rates set by state utility commissions.

Currently, competitive bidding helps keep these costs in check. Independent transmission developers compete against incumbent utilities to build projects at the lowest cost. This competition has historically saved consumers billions of dollars compared to utility-built projects.

In Michigan, transmission costs appear as delivery charges on your DTE Energy or Consumers Energy bill. For Illinois residents, ComEd and Ameren Illinois include transmission fees in their delivery service charges. These costs are separate from your electricity supply rate but equally important to your total monthly expense.

Why Utilities Want to Eliminate Competition

Utilities argue they can build transmission projects faster and more efficiently without competitive bidding processes. They claim regulatory delays from competitive solicitations slow down critical grid upgrades needed for renewable energy integration and grid reliability.

However, consumer advocates and former regulators like Neil Chatterjee see this differently. Without competitive pressure, utilities have less incentive to control costs since they can recover all prudently incurred expenses from ratepayers. This guaranteed cost recovery model, combined with allowed returns on capital investments, actually incentivizes utilities to spend more on infrastructure projects.

The Michigan Public Service Commission and Illinois Commerce Commission would still review transmission project costs, but regulatory oversight alone has proven less effective than market competition at controlling expenses.

What This Means for Michigan Electricity Customers

Michigan electricity customers could face higher delivery charges if competitive transmission bidding ends. The state sits within the MISO footprint, where several major transmission projects are planned to accommodate renewable energy growth and improve grid reliability.

DTE Energy and Consumers Energy currently recover transmission costs through their delivery service charges, which appear on every customer's bill regardless of their electricity supplier choice. These regulated charges cannot be avoided by switching to competitive suppliers - they apply to all customers in each utility's service territory.

For Michigan residents using natural gas, current default service rates include Consumers Energy at $2.91 per MCF and DTE Gas at $3.65 per MCF as of March 2026. While these are gas rates, they illustrate how utility costs get passed through to consumers via regulated pricing mechanisms.

Illinois Customers Face Similar Transmission Cost Risks

Illinois electricity customers in both ComEd and Ameren territories would see transmission cost increases reflected in their delivery charges. ComEd's current default electricity rate stands at 9.6¢ per kWh, while Ameren Illinois charges 8.769¢ per kWh for customers who haven't chosen competitive suppliers.

These default rates include both energy costs and various delivery components. When transmission costs increase, they typically show up as separate line items on customer bills or get rolled into overall delivery service charges during the next rate case.

The Illinois Commerce Commission reviews utility spending, but eliminating competitive bidding would remove a key cost control mechanism. Illinois has seen significant transmission investment in recent years to accommodate wind energy from the state's northern regions and improve connections to neighboring markets.

How Competitive Bidding Currently Saves Money

Competitive transmission bidding has delivered measurable savings for electricity customers. Independent transmission developers often propose projects 15-25% cheaper than incumbent utility estimates, according to transmission policy experts.

These savings occur because independent developers face genuine competition and cannot simply pass through all costs to captive ratepayers. They must win projects based on cost-effectiveness, construction timelines, and technical merit rather than regulatory relationships.

Studies from PJM Interconnection and other grid operators show competitive processes have saved consumers billions of dollars over the past decade. Without this competitive pressure, utilities revert to cost-plus models where higher spending actually increases their profits through regulated returns on investment.

What You Can Do to Protect Against Higher Costs

While you cannot avoid transmission costs by switching electricity suppliers, you can still control your supply charges through competitive shopping. As transmission and delivery costs potentially increase, locking in competitive supply rates becomes more important for managing total electricity expenses.

Michigan currently offers natural gas choice but not electricity deregulation. However, Illinois residents can choose competitive electricity suppliers to secure rates below the current default service prices of 9.6¢ per kWh (ComEd) and 8.769¢ per kWh (Ameren).

Gatby's Autopilot platform continuously monitors competitive rates and automatically switches customers to better deals when available. This automated approach ensures you're not overpaying for electricity supply even as transmission costs potentially increase.

Timing Matters for Rate Protection

Spring represents an ideal time to secure competitive electricity rates before potential transmission cost increases take effect. Wholesale electricity prices typically remain lower during shoulder seasons, and competitive suppliers often offer attractive fixed-rate plans to capture customers before summer demand peaks.

Illinois customers should particularly consider locking in rates now, as both ComEd and Ameren territories could see transmission cost impacts within the next 12-18 months if competitive bidding rules change. Fixed-rate plans provide protection against both wholesale price volatility and potential delivery charge increases.

Comparing plans on Gatby is always free, and the platform helps customers understand total electricity costs including both supply and delivery components. This comprehensive view becomes increasingly important as transmission policy changes threaten to increase the delivery portion of monthly bills.

Regulatory Timeline and Next Steps

The push to eliminate competitive transmission bidding requires approval from the Federal Energy Regulatory Commission (FERC). Utilities must demonstrate that ending competition serves the public interest and won't result in excessive costs for consumers.

Consumer advocacy groups and competitive transmission developers are expected to oppose these proposals vigorously. The regulatory process could take 12-24 months, giving customers time to prepare for potential cost impacts.

State utility commissions in Michigan and Illinois retain authority over transmission cost recovery, but their ability to control expenses diminishes without competitive market pressure. Customers should monitor these proceedings through their state regulatory websites and consider providing public comments supporting competitive bidding.

Long-term Implications for Electricity Markets

Ending competitive transmission bidding could signal broader utility efforts to reduce competition in electricity markets. While transmission represents just one component of electricity costs, it sets precedent for how infrastructure investments get planned and funded.

Gatby has 4.8/5 stars from 500+ independent reviews partly because customers appreciate automated protection against rising electricity costs. As transmission policy potentially increases delivery charges, having professional management of supply costs becomes even more valuable.

The current shoulder season provides an opportunity to review your electricity situation before potential policy changes take effect. Whether you're in Illinois with competitive supply options or Michigan with regulated electricity service, understanding these transmission developments helps you make informed energy decisions.

Written by Hash Manesia, Energy Market Analyst at Gatby. Hash Manesia covers deregulated electricity markets across Texas and the Northeast, helping consumers navigate plan selection, rate comparison, and energy policy changes.

Reviewed by the Gatby Editorial Team on 2026-04-10

Frequently Asked Questions

How will MISO transmission changes affect my electricity bill in Michigan?

Michigan electricity customers will see transmission cost increases in their delivery charges from DTE Energy or Consumers Energy if competitive bidding ends. These regulated charges appear on every customer's bill regardless of supplier choice. Without competitive pressure, utilities face less incentive to control transmission project costs, potentially leading to 15-25% higher infrastructure expenses that get passed through to ratepayers. The Michigan Public Service Commission reviews these costs, but regulatory oversight alone has proven less effective than market competition at controlling utility spending. Since Michigan doesn't offer retail electricity choice, customers cannot avoid these delivery charge increases by switching suppliers.

Should I switch electricity providers before transmission costs increase in Illinois?

Illinois customers should consider switching to competitive electricity suppliers now to lock in favorable supply rates before potential transmission cost increases. While switching won't eliminate delivery charges that include transmission costs, it protects against supply rate volatility as overall electricity expenses potentially rise. ComEd customers currently pay 9.6¢ per kWh for default service, while Ameren customers pay 8.769¢ per kWh. Competitive suppliers often offer rates below these levels, especially during spring shoulder season. Fixed-rate plans provide budget certainty as transmission policy changes create uncertainty about future delivery charges. The Illinois Commerce Commission regulates transmission cost recovery, but competitive supply shopping remains the best tool for managing controllable electricity expenses.

What are cheapest electricity rates in Michigan after transmission policy changes?

Michigan operates under regulated electricity service, meaning residents cannot choose competitive electricity suppliers like in Illinois or other deregulated states. DTE Energy and Consumers Energy provide both electricity delivery and supply at regulated rates set by the Michigan Public Service Commission. Transmission policy changes will affect delivery charges but won't create competitive supply options. Michigan customers can only control electricity costs through energy efficiency measures, time-of-use rate programs where available, and renewable energy programs offered by their utility. For natural gas, Michigan does offer supplier choice with current default rates including Consumers Energy at $2.91 per MCF and DTE Gas at $3.65 per MCF, providing some opportunity for competitive savings on heating costs.

How to lock in electricity rates before MISO transmission costs go up?

Illinois customers can lock in competitive electricity rates through fixed-rate plans offered by retail suppliers, protecting supply costs even as transmission expenses potentially increase. Contact competitive suppliers directly or use comparison platforms to evaluate current offers below the default service rates of 9.6¢ per kWh (ComEd) and 8.769¢ per kWh (Ameren). Spring represents optimal timing for rate locks as wholesale prices remain low during shoulder season. Choose contract terms of 12-24 months to bridge potential transmission policy changes. Michigan customers cannot lock in electricity rates due to regulated service structure, but can explore utility programs like budget billing to spread costs evenly throughout the year. Focus on energy efficiency improvements to reduce total consumption as transmission costs potentially increase.

Which Illinois electricity companies offer protection from transmission fee increases?

No Illinois electricity suppliers can protect customers from transmission fee increases since these regulated delivery charges apply regardless of supplier choice. ComEd and Ameren Illinois collect transmission costs through delivery service charges that appear on every customer's bill. However, competitive suppliers can offer fixed-rate supply contracts that protect against wholesale price volatility, helping manage total electricity costs as transmission expenses potentially rise. Major competitive suppliers in Illinois include Constellation, Verde Energy, and Dynegy, among others. These companies offer various fixed-rate and variable-rate plans through the Illinois Power Agency's comparison website. While transmission costs remain unavoidable, competitive supply shopping provides the only controllable element of electricity expenses for Illinois customers facing potential infrastructure cost increases.