CENTRALIA — 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.

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 time frame, 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.