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SPOTLIGHT: Businesses joining electricity co-op to help offset high costs

By Michelle Koetters

BLOOMINGTON — The McLean County Chamber of Commerce wants to help its members find the lowest price for energy.

The chamber wants to organize an electric cooperative to help local businesses buy power from a third-party or retail electric supplier at a reduced cost, said Executive Director Mike Malone.

“If we can save businesses money, they may be able to employ more people; they may be able to expand their business,” Malone said.

At least 50 businesses participated in an informational meeting in July to learn more about the co-op. The chamber even scheduled a second meeting a week later to meet the demand.

“So far, so good. We’ve had a really great response,” said Sarah Cantrell, membership director. “We have a lot of businesses that realize, unfortunately, rates are not going to go down anytime soon.”

Members could see savings of 7 percent to 8 percent, Malone estimates. There’s no guarantee members’ cost would always be cheaper with their supplier, but members would find long-term budget stability, Malone said.

Businesses that join with other businesses to buy energy also have the power of numbers behind them, as a group should be able to find a cheaper price than an individual business. A consulting firm also might try to purchase power for a group of chambers at the same time to get a better deal for businesses, Malone said.

“It’s the same as a Sam’s Club membership,” Cantrell said. “Anything you can buy in bulk helps you save money.”

Other chambers, including the Champaign County Chamber of Commerce, already have gone through the same process the McLean County chamber has started.

Earl Anderson, president of Normal-based Prairie Signs Inc., joined the Champaign co-op in April after he attended an informational meeting.

“Based on the information I got there, it made sense, and it sounded like Prairie Signs as part of that could save money,” Anderson said.

The company recently received its first bill with the new supplier. The cost was similar to previous bills, but Treasurer Diana Bubenik expects to see more savings from July, August and September use when expenses typically are higher.

McLean County co-op participants could receive power from another supplier, but AmerenIP still would provide delivery services.

“Our main job is to deliver the power,” Ameren spokeswoman Natalie Hemmer said. “We’re indifferent where their supply comes from.”

Ameren buys its energy and just passes along the cost to consumers, Hemmer said.

“We turn around and sell it dollar to dollar to the customer with no mark-up,” she said.

Corn Belt Energy Corp. members are unable to participate in the program because of Illinois regulations.

Businesses that pay more than $200 a month for electricity will most likely benefit the most from the program, Malone said.

The fee to join the co-op is $300. Participants also must be Chamber members. The basic Chamber membership fee is $235 a year. Co-op members should recover those costs within the first year, Malone said.

A consultant with CQI Associates in Maryland will look for the best power price on the open market, and the McLean County co-op likely would purchase energy and switch suppliers in the fall, Malone said.

For more information, see www.mcleancochamber.org.

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