Now is the time to participate in the Chamber's electricity buying group

Ameren announced a roughly 30% increase to their new default electric supply rates which will become effective on June 1, 2015.  The new rates announced for BGS-1, Small Commercial customers will spike to nearly $0.067/kwh.  The announced rate of $.06043 gets added to the transmission cost of approximately $0.06 to make up the all-in rate commercial customers see reflected on the supply portion of an Ameren bill.  The spike in rates is due to a recent auction where a 900% increase in a component of the price of electricity supply known as “capacity” occurred.

Many Southern Illinois Chambers of Commerce are part of a buying group for electricity and natural gas for their members.  In advance of this substantial rate increase, Marion Chamber of Commerce, on the advice of its coordinating partner, Affordable Gas & Electric (AGE), took a long-term proactive position when it secured a guaranteed rate that is nearly 20% less than Ameren’s newly announced rate.  The chamber buying group secured a fixed rate, guaranteed through December, 2017 of between $.054 and $0.056/kwh.

“Our research led us to recommend a proactive strategy which provided long-term price certainty, well ahead of this anticipated market spike” said Jeff Haarmann, Managing Partner of AGE.  “The recommendation will save our participating chamber members a combined $1.43 million dollars over the next twelve months and if Ameren’s rates simply stay the same over the next 30 months, this strategy will save area businesses nearly $3 million dollars over the life of our negotiated rates.”

“Part of our objective in providing this buying group to our members was to provide guidance and advice to this important expense item of our member’s business, while allowing our business owners to do what they do best, run their business and take care of their customers” said Dalus Strusz, Director of the Marion Chamber of Commerce.

With the newly announced June 1 rate quickly approaching, the Chamber will immediately begin enrolling any members who are not currently participating in the buying group.  Businesses who are not currently members of the Chamber can also contact the Chamber office to join the buying group.