Businesses Band Together For 'Philly Buying Power'

PHILADELPHIA (CBS) - Hundreds of businesses in the Philadelphia area are signing up for a new program called "Philly Buying Power" to get group discounts on energy costs.

Sazon Restaurant and Café here in the 900 block of Spring Garden Street is one of the latest business to take part in Philly Buying Power.

The more businesses that join the program, the more negotiating power for the discounts. Mayor Nutter expects to see 10 to 20 percent off of PECO's 2011 rates:

"Philly Buying Power groups various businesses together so they can purchase enough energy to get the bulk rate then they host auctions where energy suppliers bid for the opportunity to generate electricity for each of these business groups."

The city of Philadelphia is endorsing the program to help small and medium business, as well as non-profits, adjust and get the best energy prices when PECO's rate caps expire at the end of the year.

The program is being operated by a Pennsylvania-based energy management firm.

Reported by John McDevitt, KYW Newsradio