HB5257 95TH GENERAL ASSEMBLY

LRB095 19168 AMC 45403 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5257

Introduced , by Rep. Mike Fortner

SYNOPSIS AS INTRODUCED:

20 ILCS 3855/1-92 new
220 ILCS 5/17-800 rep.

Amends the Illinois Power Agency Act and the Public Utilities Act. Moves provisions concerning aggregation of electrical load by municipalities or counties from the Public Utilities Act to the Illinois Power Agency Act and provides that (i) upon the applicable requisite authority under certain provisions, the corporate authorities or the county board, with assistance from the Illinois Power Agency, (previously, did not include assistance from the Illinois Power Agency) shall develop a plan of operation and governance for the authorized aggregation program; (ii) the aggregation may include small commercial retail electrical loads in addition to residential retail electrical loads; (iii) it shall be the duty of the aggregated entity to fully inform residential retail customers in advance that they have the right to opt out of (rather than opt into) the aggregation program and (iv) the Illinois Power Agency shall provide assistance to municipalities or associations working with municipalities to help complete the plan of operation and bidding process. Makes other changes.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Power Agency Act is amended by adding Section 1-92 as follows:

(20 ILCS 3855/1-92 new)

Sec. 1-92. Aggregation of electrical load by municipalities and counties. The corporate authorities of a municipality or county board of a county may adopt an ordinance, under which it may aggregate in accordance with this Section residential and small commercial retail electrical loads located, respectively, within the municipality or the unincorporated areas of the county and, for that purpose, may solicit bids and enter into service agreements to facilitate for those loads the sale and purchase of electricity and related services and equipment. The corporate authorities or county board also may exercise such authority jointly with any other municipality or county. An ordinance under this Section shall specify whether the aggregation will occur only with the prior consent of each person owning, occupying, controlling, or using an electric load center proposed to be aggregated. Nothing in this Section, however, authorizes the aggregation of electric loads that are served or authorized to be served by an electric cooperative as defined by and pursuant to the Electric Supplier Act or loads served by a municipality that owns and operates its own electric distribution system. No aggregation shall take effect unless approved by a majority of the members of the corporate authority or county board voting upon the ordinance.

A governmental aggregator under this Section is not a public utility or an alternative retail electric supplier and shall be subject to supervision and regulation by the Illinois Power Agency only to the extent provided in this Section.

Two or more municipalities or counties, or a combination of both, may initiate a process jointly to authorize aggregation by a majority vote of each particular municipality or county as herein required.

Upon the applicable requisite authority under this Section, the corporate authorities or the county board, with assistance from the Illinois Power Agency, shall develop a plan of operation and governance for the aggregation program so authorized. Before adopting a plan under this Section, the corporate authorities or county board shall hold at least 2 public hearings on the plan. Before the first hearing, the corporate authorities or county board shall publish notice of the hearings once a week for 2 consecutive weeks in a newspaper of general circulation in the jurisdiction. The notice shall summarize the plan and state the date, time, and location of each hearing. Any load aggregation plan established pursuant to this Section shall:

(1) provide for universal access to all applicable residential customers and equitable treatment of applicable residential customers;

(2) describe demand management and energy efficiency services to be provided to each class of customers; and

(3) meet any requirements established by law concerning aggregated service offered pursuant to this Section.

The plan shall be filed with the Illinois Power Agency for review and approval and shall include, without limitation, an organizational structure of the program, its operations, and funding; the methods of establishing rates and allocating costs among participants; the methods for entering and terminating agreements with other entities; the rights and responsibilities of program participants; and procedures for termination of the program. Within 120 days after receipt of the plan, the Illinois Power Agency shall issue an order either approving or rejecting the plan. If the Illinois Power Agency rejects the plan, it shall state detailed reasons for rejecting the plan in its order. Upon approval of the plan, the corporate authorities or county board may solicit bids for electricity and other related services pursuant to the methods established in the plan. The corporate authorities or county board shall report the results of this solicitation and proposed agreement awards to the Illinois Power Agency, which shall have 15 business days to suspend such awards if the solicitation or awards are not in conformance with the plan or if the cost for energy would in the first year exceed the cost of that energy if that energy was obtained from an electric utility under Section 16-103 of the Public Utilities Act by citizens in the municipality or county or group of municipalities and counties, unless the applicant can demonstrate that the cost for energy under the aggregation plan will be lower in the subsequent years or the applicant can demonstrate that such excess cost is due to the purchase of renewable energy. If the Illinois Power Agency does not suspend the proposed contract awards within 15 business days after filing, the corporate authorities or county board shall have the right to award the proposed agreements.

It shall be the duty of the aggregated entity to fully inform residential retail customers in advance that they have the right to opt out of the aggregation program. The disclosure shall prominently state all charges to be made and shall include full disclosure of the cost to obtain service pursuant to Section 16-103 of the Public Utilities Act, how to access it, and the fact that it is available to them without penalty, if they are currently receiving service under that Section. The Illinois Power Agency shall furnish, without charge, to any citizen a list of all supply options available to them in a format that allows comparison of prices and products.

The Illinois Power Agency shall provide assistance to municipalities or associations working with municipalities to help complete the plan and bidding process.

This Section does not prohibit municipalities or counties from entering into an intergovernmental agreement to aggregate residential retail electric loads.

(220 ILCS 5/17-800 rep.)

Section 10. The Public Utilities Act is amended by repealing Section 17-800.