The Chamber is currently forming a new Cooperative Energy Buying group designed to provide financial savings to commercial electric customers on their monthly utility bills. The Chamber’s first purchasing group, formed last fall, had nearly 75 businesses sign up. These businesses are enjoying the benefits of lower utility bills during the recent weather extremes.
By partnering with other chambers in central Illinois, we are able to pool our buying power with businesses in Bloomington, Champaign, Decatur and Peoria to procure energy at the best available competitive market price.
In addition to taking advantage of the combined buying power, companies will save time and expense in choosing a supplier on their own and will achieve budget stability in the fluctuating energy market during the contract period.
The program is available only to Effingham Chamber members and applies to businesses who use electricity supplied by Ameren or ComEd and whose power bills are more than $200 a month.Members of rural and municipal cooperatives are not eligible for this program.
The move to electric deregulation in Illinois in January 2007 allows business customers to choose their power supplier. Delivery of the power and handling of power service needs will still be handled by Ameren and customers will continue to be billed by Ameren for this service.
Businesses interested in taking advantage of this cooperative buying program must do so prior to Friday, April 25, the enrollment deadline.
GREATER EFFINGHAM CHAMBER OF COMMERCE & INDUSTRY
COOPERATIVE ENERGY BUYING PROGRAM
FREQUENTLY ASKED QUESTIONS:
Who is eligible for the co-op?
The following Chamber members located in Illinois with commercial electricity service from Ameren or ComEd are eligible:
• DS 2 - Small Commercial accounts
• DS 3 - Mid-sized Commercial accounts
• DS-4 - Large commercial accounts (over 3 megawatts load)
who opted not to remain with Ameren by the November 2006
deadline. (DS-4 accounts who did not opt out are not
eligible to participate until after June 1, 2008.)
• DS-5 - Outdoor Lighting accounts (may be eligible for the co-op)
How will the coop benefit my business?
The Chamber program pools the buying power of commercial electric customers to procure energy at the best available competitive market price. In addition to our local membership, the Chamber is a part of a larger buying group including several other central Illinois Chambers. Similar groups have seen a collective savings of more than $3.1 million over the 36-month contract. Individually, members of the group will realize an average savings of 7.7 - 7.8% in the first year of the contract, with increased savings projected for the 2nd and 3rd year of their agreement. If your monthly power bill averages $200, you can save money through this program.
How much does it cost to join the co-op?
The fee is $300 per business location for the full contract term (36 months). This includes all accounts that may be metered at one location. There will be no other charges or added points to the electricity pricing.
How much will I save?
That depends on the amount of electricity you use and the rate class you are in. Each business’ electrical usage varies. Based on results of recent central Illinois Chamber co-op bids received and signed, DS 2 small commercial accounts can expect to save 6% to 8% in the first year of a 36-month contract. DS 3 mid-sized commercial accounts can expect to save 8% to 12% in the first year of a 36-month contract. DS-4 large commercial accounts (over 3 megawatts load) who opted not to remain with Ameren can expect to save over 15% in the first year of a 36-month contract. (DS-4 accounts who did not opt out are not eligible to participate until after June 1, 2008.)
What if I don’t like the bids received or I change my mind on bid day?
Each member of the co-op will individually accept or reject the bid. You do not have to accept the bid. The application fee will not be refunded. It offsets the cost to establish the co-op, prepare the bid and negotiate pricing.
What if I move my business to a new location?
Your co-op rate can usually follow you to your new location. Just be sure to contact the Chamber in plenty of time to ensure smooth transition.
What if I have businesses in other areas, outside the Chamber of Commerce service area? Can they be included?
As long as you have at least one business operating in the Chamber’s service area, other locations may also be included at the per-location fee of $300. Businesses served by rural or municipal cooperatives are not eligible for this program.
Why do you need copies of my current electricity bills?
Each co-op member is required to submit a copy of ALL PAGES of their most recent bill for each account that is to be included in the co-op. These bills provide important information that will be used by the consulting firm and the suppliers during the bid process.
What if I join the co-op and the default rates go down?
Your contract will remain in effect. Remember, while the rates may go down slightly for a period of time, the goal of the co-op is to bring you long-term budget stability. If you want to “play the market”, the co-op is probably not for you.
What is the process for joining the coop?
Chamber members may only join the coop during designated enrollment periods. Notices of the enrollment period will be provided through the Chamber newsletter, by email and on the Chamber’s website. Informational meetings will be held that will outline the program and allow members to ask questions of our consulting firm representative.
