The Southern Illinois Chamber of Commerce Electricity and Natural Gas Buying Group will keep an estimated $1.7 million in savings in the local economy during the period of June 2015 to June 2016.

In January/February of 2015, AGE, the program’s coordinating partner, aggressively moved to protect participating members based on market research that indicated that businesses could potentially see a significant rate increase in June 2015.  With many member’s current contracts set to expire in the June 2015 timeframe, AGE advised that a long-term rate approach well ahead of an April capacity auction (a component that makes up about 20% of the price of electricity supply) would likely benefit members.

The April capacity auction resulted in an 800% increase in capacity costs and therefore Ameren’s electricity rates spiked nearly 30%.  That spike was even higher than estimated by most.  AGE further warned and advised that additional rate adjustments could be seen in October 2015, and again in June 2016, October 2016, and June 2017.  As expected, Ameren did announce an additional rate adjustment October 1, 2015.

PARTICIPATING CHAMBER MEMBERS WERE PROTECTED FROM THESE TREMENDOUS SPIKES AND SUBSEQUENTLY, MEMBERS ARE IN A VERY FAVORABLE POSITION FOR TWO MORE YEARS!!

Over the life of the renewal period beginning in June 2015 and expiring in December 2017, AGE expects to see savings of $4,000,000 to $5,000,000.  The result is a SERIOUS membership value for those who are participating!!

Below are savings estimates from June 2015 through June 2016 for the collective members participating in the program.

Chamber       Projected Savings     Participants      Avg Member Savings
Carbondale Chamber $234,836      75      $3,131
Carterville Chamber $110,081      18      $6,116
Centralia Chamber $323,758      68      $4,761
Herrin Chamber $36,509      9      $4,057
Illinois Oil & Gas Association $326,143      23      $14,180
Jefferson County Chamber $260,101      79      $3,292
Lawrence County Chamber $48,375      18      $2,688
Marion Chamber $60,379      26      $2,322
Murphysboro Chamber $163,695      23      $7,117
Salem Chamber $58,855      42      $1,401
Virden Chamber $573      3      $191
West Frankfort Chamber $59,208      10      $5,921
 TOTALS $1,682,512      394      $4,270

 

Chamber of Commerce members can join their specific electric or natural gas buying group by visiting http://www.agellc.com/groups/