The commission approved an order granting Rock Island Clean Line a certificate of public convenience to build and operate the Illinois portion of the 500-mile power line.
The power line will deliver 3,500MW of low-cost wind energy from the greater northwest Iowa area to communities in Illinois and in other states to the east.
Clean Line Energy president Michael Skelly said: "The ICC approval is a great step forward for the Rock Island Clean Line project and brings Illinois one step closer to creating a cleaner energy future.
"By approving game-changing projects like the Rock Island Clean Line, Illinois will benefit from access to low-cost clean energy and job creation in the construction and manufacturing sectors."
The Rock Island Clean Line project, which will power over 1.4 million homes, will encourage the manufacture of transmission and wind turbine parts.
In May 2012, Rock Island Clean Line has secured approval from the Federal Energy Regulatory Commission to start negotiating transmission service agreements with potential customers.
Clean Line Energy had earlier signed an MOU with Southwire to purchase conductor wire for the project, which will cut the annual cost of wholesale electricity used to serve Illinois customers by $320m in its initial year of operation.
Image: The Rock Island Clean Line project will deliver 3,500MW of low-cost wind energy from the greater northwest Iowa area to communities in Illinois. Photo: Courtesy of xedos4/FreeDigitalPhotos.net.