From from June of this year to June 2016, the savings realized in the local economy through the Southern Illinois Chamber of Commerce Electricity and Natural Gas Buying Group will be approximately $1.7 million.
The program was launched earlier this year, when coordinating partner AGE used market research to back measures to protect participating members from electricity and natural gas price hikes. Many members' program contracts will expire between now and June 2016.
"AGE advised that a long-term rate approach well ahead of an April capacity auction (a component that makes up about 20 percent of the price of electricity supply) would likely benefit members," a news release from the Southern Illinois Chamber of Commerce said.
After the April capacity auction, capacity costs jumped 800 percent — causing energy supplier Ameren's electricity rates to increase by almost 30 percent.
"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," the chamber release said. "As expected, Ameren did announce an additional rate adjustment October 1.
Because they were in the program, participating chamber members were not affected by these steep increases.
"Over the life of the renewal period beginning in June 2015 and expiring in December 2017, AGE expects to see savings of $4 million to $5 million," the chamber release said.
To inquire about joining the buying group, contact AGE at 618-231-4904 or 618-203-8328.