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HR0304HAM001 |
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LRB095 11908 MJR 36905 a |
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| AMENDMENT TO HOUSE RESOLUTION 304
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| AMENDMENT NO. ___. Amend House Resolution 304 by replacing |
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| everything after the heading with the following:
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| "WHEREAS, The 90th General Assembly passed the Electric |
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| Service Customer Choice and Rate Relief Law of 1997, which |
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| deregulated the electric industry and reduced and froze rates |
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| for residential customers; and
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| WHEREAS, As a result of the Electric Service Customer |
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| Choice and Rate Relief Law of 1997, the electric utilities that |
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| were vertically integrated sold off their generating capacity |
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| to become solely electric transmission and distribution |
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| utilities; and
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| WHEREAS, Upon the conclusion of the freeze on electric |
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| rates that was initiated in the 90th General Assembly and |
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| extended in the 92nd General Assembly on January 1, 2007, the 2 |
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HR0304HAM001 |
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LRB095 11908 MJR 36905 a |
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| largest electric utilities of the State were required to enter |
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| into the marketplace and procure power; and
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| WHEREAS, The electric utilities chose a method known as a |
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| reverse auction, where bidders submit bids to supply |
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| electricity to the utilities at a set price and each subsequent |
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| round results in lower prices for the electricity until 100% of |
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| the electric needs of the utilities are met; and
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| WHEREAS, The commodity price of electricity reached a peak |
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| coincident with the time of the reverse auction; and
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| WHEREAS, Because of uncertainty in whether the electric |
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| utilities would actually purchase the megawatt hours per day |
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| that the bidder submitted in the auction process, the bidders |
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| built in a risk premium that resulted in extra costs passed on |
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| to the customer; and
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| WHEREAS, Customers of the 2 largest electric utilities in |
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| Illinois are allowed to switch to alternate suppliers for |
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| electricity if that option is available in their service |
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| territory, thereby reducing the electricity load of a electric |
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| utility; and
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| WHEREAS, The General Assembly, the electric utilities, the |
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| Illinois Commerce Commission, and consumer groups all seek |
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HR0304HAM001 |
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LRB095 11908 MJR 36905 a |
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| alternate ways to procure power for the customers of Illinois |
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| that will result in a reduced price; therefore, be it
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| RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE |
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| NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we |
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| encourage the 2 largest electric utilities in Illinois to |
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| design a new procurement method that will result in the |
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| electric utilities purchasing no more than 85% of the power |
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| needs in an auction process; and be it further
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| RESOLVED, That it is recommended that the electric |
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| utilities use the procurement method used by natural gas |
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| companies to purchase natural gas as a model; and be it further
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| RESOLVED, That it is recommended that in such a plan the |
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| electric utilities purchase the remaining 15% or more on the |
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| open-spot market or short-term contracts; and be it further
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| RESOLVED, That the House of Representatives requests that |
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| the electric utilities submit the new procurement design to the |
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| Illinois Commerce Commission for approval; and be it further
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| RESOLVED, That the Illinois Commerce Commission is urged to |
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| use the same hearing process and standards used for the rate |
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| designs in the procurement of natural gas.". |