(Photo By Flickr User Midwest Energy News)

Electric supply rates are going down for residential Ameren Illinois customers.

Rates are 5% lower than last year.

A typical residential customer who uses 10,000 kilowatt-hours of electricity per year will see annual savings of about $22.

“This is good news for customers who opt to have Ameren Illinois provide their electric supply service,” said Richard Mark, chairman and president, Ameren Illinois. “Coupled with expected lower energy delivery bills, overall monthly electric rates are about 20% below the national average.”

According to WAND-TV, the reduction is due to a decrease in the price of wholesale electricity which is purchased for Ameren Illinois customers. Supply costs are passed along to customers on a dollar-for-dollar basis.

The new lower rate became effective in October. It is listed as the “Basic Generation Services” charge on energy bills.