Watch Out For... Disappearing Jobs

Last week, before the Illinois Citizens Utility Board (CUB) released its new study, I forecast the negative economic impact of the Ameren electric rate hike will have upon Carbondale. Based on the new study, over 20,000 jobs are expected to be lost statewide from the hike. Based on the report's formula, Carbondale could expect to lose at least 34 jobs and all the positive multiplier effects those jobs have on the local economy. The region may lose more than a thousand jobs at a time when unemployment rates are already among the highest in the state and poverty rates are rising.

“These rate hikes are transferring money out of the hands of working families, who spend money at Illinois businesses, and putting it in the pockets of utility shareholders,” said CUB Executive Director David Kolata. “Everyone loses but the big utilities.”

Based on 2005 US Census Bureau data, I estimate Jackson County could lose 143 jobs and Williamson County could lose 150. Others: Franklin County - 85, Saline - 66, Randolph - 62, Perry - 50, Union - 42, and Gallatin - 16.

CUB has launched the Don’t Get Shocked Action Campaign to rally support for the rate freeze. The campaign is asking consumers to contact their state legislatures and oppose the rate hikes and to attend a new round of public hearings being held across the state by the Illinois Senate.

Local units of government can do much more. By implementing Cool Cities strategies, government can create jobs from wise energy investments that lead to long-term sustainability.

According to the companies’ own data, the combined rate hikes will drain $2.3 billion out of the Illinois economy.

The CUB study, conducted in conjunction with Synapse Energy Economics Inc., of Cambridge, MA, uses the results of a state-of-the-art economic model to calculate the effects of such a massive transfer of wealth on state employment