Sen. David Koehler
Filed: 4/11/2011
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 1802
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 1802 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Power Agency Act is amended by | ||||||
5 | changing Section 1-92 as follows: | ||||||
6 | (20 ILCS 3855/1-92) | ||||||
7 | Sec. 1-92. Aggregation of retail electrical load of | ||||||
8 | residential and small commercial retail customers by | ||||||
9 | municipalities and counties. | ||||||
10 | (a) The corporate authorities of a municipality or county | ||||||
11 | board of a county
may
adopt an ordinance under which it may | ||||||
12 | aggregate , in accordance with this
Section , residential and | ||||||
13 | small commercial retail electrical loads of applicable | ||||||
14 | residential and small commercial retail customers located, | ||||||
15 | respectively, within the
municipality or the unincorporated | ||||||
16 | areas of the county and, for that purpose, shall may solicit |
| |||||||
| |||||||
1 | bids and enter into service
agreements to facilitate
for those
| ||||||
2 | loads the sale and purchase of electricity and related services | ||||||
3 | and equipment through a competitive procurement process . For | ||||||
4 | purposes of this Section, small commercial retail customers of | ||||||
5 | an electric utility that on December 31, 2010 provided electric | ||||||
6 | service to at least 2,000,000 customers in Illinois shall be | ||||||
7 | those customers of the watt-hour only delivery service class. | ||||||
8 | For purposes of this Section, small commercial retail customers | ||||||
9 | of an electric utility that on December 31, 2010 provided | ||||||
10 | electric service to 2,000,000 or fewer customers but more than | ||||||
11 | 100,000 customers in Illinois shall be those customers of an | ||||||
12 | electric utility consuming 15,000 kilowatt-hours or less of | ||||||
13 | electricity annually in its service area. Applicable | ||||||
14 | residential and small commercial retail customers in an | ||||||
15 | aggregation program shall not include customers of an | ||||||
16 | alternative retail electric supplier that is not the chosen | ||||||
17 | supplier of the aggregation program or customers participating | ||||||
18 | in a residential real-time pricing program or Percentage of | ||||||
19 | Income Payment Plan (PIPP) unless those customers | ||||||
20 | affirmatively choose to join the aggregation program. | ||||||
21 | If the corporate authorities or the county board seek to
| ||||||
22 | operate the aggregation program as an opt-out program, then the | ||||||
23 | program applies solely to residential and small commercial | ||||||
24 | retail customers that are taking service from the electric | ||||||
25 | utility through fixed-price bundled service tariffs or taking | ||||||
26 | electric supply service offered by an alternative retail |
| |||||||
| |||||||
1 | electric supplier from an expiring or current aggregation | ||||||
2 | program. The corporate authorities or the county board shall | ||||||
3 | allow new residents outside of an opt-out period, and | ||||||
4 | non-applicable residential and small commercial retail | ||||||
5 | customers who were not eligible to receive the opt-out notice, | ||||||
6 | to affirmatively commit to the terms and conditions of an | ||||||
7 | opt-out program at any time during the length of the program | ||||||
8 | under a process disclosed in the plan of operation and | ||||||
9 | governance. | ||||||
10 | The corporate authorities or county
board may also exercise | ||||||
11 | such authority jointly with any other municipality or county.
| ||||||
12 | Two or
more
municipalities or counties, or a combination of | ||||||
13 | both, may initiate a
process
jointly to authorize aggregation | ||||||
14 | by a majority vote of each particular
municipality or
county as | ||||||
15 | required by this Section. | ||||||
16 | If the corporate authorities or the county board seek to | ||||||
17 | operate the aggregation program as an opt-out program for | ||||||
18 | residential and small commercial retail customers, then prior | ||||||
19 | to the adoption of an ordinance with respect to aggregation of | ||||||
20 | residential and small commercial retail electric loads, the | ||||||
21 | corporate authorities of a municipality or the county board of | ||||||
22 | a county shall submit a referendum to its residents to | ||||||
23 | determine whether or not the aggregation program shall operate | ||||||
24 | as an opt-out program for residential and small commercial | ||||||
25 | retail customers. | ||||||
26 | In addition to the notice and conduct requirements of the |
| |||||||
| |||||||
1 | general election law, notice of the referendum shall state | ||||||
2 | briefly the purpose of the referendum. The question of whether | ||||||
3 | the corporate authorities or the county board shall adopt an | ||||||
4 | opt-out aggregation program for residential and small | ||||||
5 | commercial retail customers shall be submitted to the electors | ||||||
6 | of the municipality or county board at a regular election and | ||||||
7 | approved by a majority of the electors voting on the question. | ||||||
8 | The corporate authorities or county board must certify to the | ||||||
9 | proper election authority, which must submit the question at an | ||||||
10 | election in accordance with the Election Code. | ||||||
11 | The election authority must submit the question in | ||||||
12 | substantially the following form: | ||||||
13 | Shall the (municipality or county in which the question | ||||||
14 | is being voted upon) have the authority to arrange for the | ||||||
15 | supply of electricity for its residential and small | ||||||
16 | commercial retail customers who have not opted out of such | ||||||
17 | program? | ||||||
18 | The election authority must record the votes as "Yes" or "No". | ||||||
19 | If a majority of the electors voting on the question vote | ||||||
20 | in the affirmative, then the corporate authorities or county | ||||||
21 | board may implement an opt-out aggregation program for | ||||||
22 | residential and small commercial retail customers. | ||||||
23 | A referendum must pass in each particular municipality or | ||||||
24 | county that is engaged in the aggregation program. If the | ||||||
25 | referendum fails, then the corporate authorities or county | ||||||
26 | board shall operate the aggregation program as an opt-in |
| |||||||
| |||||||
1 | program for residential and small commercial retail customers. | ||||||
2 | An
ordinance under this Section shall specify whether the | ||||||
3 | aggregation will occur
only with
the prior consent of each | ||||||
4 | person owning, occupying, controlling, or using an
electric | ||||||
5 | load
center proposed to be aggregated. Nothing in this Section,
| ||||||
6 | however,
authorizes the aggregation of electric loads that are | ||||||
7 | served or authorized to be served by an electric cooperative as | ||||||
8 | defined by and pursuant to the Electric Supplier Act or loads | ||||||
9 | served by a municipality that owns and operates its own | ||||||
10 | electric distribution system. No
aggregation shall take
effect | ||||||
11 | unless
approved by a majority of the members of the corporate | ||||||
12 | authority or county board voting upon the ordinance.
| ||||||
13 | A governmental aggregator under this Section is not a | ||||||
14 | public utility , agent, broker, consultant, or an
alternative | ||||||
15 | retail electric supplier. Nothing in this Section prohibits a | ||||||
16 | governmental aggregator from retaining the services of an | ||||||
17 | agent, broker, or consultant. | ||||||
18 | (a-5) A governmental aggregator must utilize the services | ||||||
19 | of a qualified expert for the execution of a competitive | ||||||
20 | procurement process to meet the supply needs of its | ||||||
21 | aggregation. The qualified expert must be separate from, and | ||||||
22 | maintain no business relationship with, any other consultant | ||||||
23 | providing services to the governmental aggregator. A qualified | ||||||
24 | expert, as evidenced by a certified affidavit, must have: | ||||||
25 | (1) direct previous experience administering | ||||||
26 | large-scale competitive procurement processes; |
| |||||||
| |||||||
1 | (2) an advanced degree in economics, mathematics, | ||||||
2 | engineering, or a related area of study; | ||||||
3 | (3) ten years of experience in the electricity sector, | ||||||
4 | including risk management experience; | ||||||
5 | (4) expertise in credit and contract protocols; | ||||||
6 | (5) adequate resources to perform and fulfill the | ||||||
7 | required functions and responsibilities, including a | ||||||
8 | bidding and posting process that provides complete | ||||||
9 | auditable communication and bidding recording functions; | ||||||
10 | and | ||||||
11 | (6) the absence of a conflict of interest and | ||||||
12 | inappropriate bias for or against potential bidders as | ||||||
13 | evidenced by an affidavit certifying that the expert does | ||||||
14 | not maintain compensation or agency agreements with any of | ||||||
15 | the bidders participating in the procurement event. | ||||||
16 | (a-10) The Director of the Illinois Power Agency shall | ||||||
17 | provide governmental aggregators and other interested parties | ||||||
18 | with the names of experts deemed as qualified by the Agency to | ||||||
19 | serve as the procurement administrators for the most recent | ||||||
20 | Agency-administered procurement events.
| ||||||
21 | (b) Upon the applicable requisite authority under this | ||||||
22 | Section, the corporate
authorities or the county board, with | ||||||
23 | assistance from the Illinois Power Agency, shall develop a plan | ||||||
24 | of operation and
governance for the
aggregation program so | ||||||
25 | authorized. | ||||||
26 | For an opt-out program, the plan shall specify the process |
| |||||||
| |||||||
1 | and associated timelines for applicable residential and small | ||||||
2 | commercial retail customers choosing to opt out of the program | ||||||
3 | as well as for non-applicable customers affirmatively choosing | ||||||
4 | to join the aggregation program. The plan for an opt-out | ||||||
5 | program shall ensure that applicable residential and small | ||||||
6 | commercial retail customers are explicitly allowed through | ||||||
7 | written or electronic notice the opportunity to opt out of the | ||||||
8 | aggregation program at a minimum of once every 3 years with no | ||||||
9 | penalty, with the right to opt out to either (i) the electric | ||||||
10 | utility if bundled retail electric service is still offered to | ||||||
11 | that customer class pursuant to Section 16-103 of the Public | ||||||
12 | Utilities Act, (ii) an electric utility's residential | ||||||
13 | real-time pricing rate, if available, or (iii) an electric | ||||||
14 | supply service offered by an alternative retail electric | ||||||
15 | supplier certified by the Commission. The plan for the | ||||||
16 | aggregation program shall not conflict with or otherwise | ||||||
17 | abrogate any existing contracts between an alternative retail | ||||||
18 | electric supplier and residential and small commercial retail | ||||||
19 | customers. | ||||||
20 | Before adopting a plan under this Section,
the
corporate | ||||||
21 | authorities or county board shall hold at least 2 public | ||||||
22 | hearings on
the plan.
Before the first hearing, the corporate | ||||||
23 | authorities or county board shall
publish notice of
the | ||||||
24 | hearings once a week for 2 consecutive weeks in a newspaper of | ||||||
25 | general
circulation
in the jurisdiction. The notice shall | ||||||
26 | summarize the plan and state the date,
time, and
location of |
| |||||||
| |||||||
1 | each hearing.
Any load aggregation plan established pursuant to | ||||||
2 | this Section shall: | ||||||
3 | (1) provide for universal
access to all applicable | ||||||
4 | residential customers and equitable treatment of | ||||||
5 | applicable
residential customers; | ||||||
6 | (2) describe demand management and energy efficiency | ||||||
7 | services to be
provided to each class of customers ;
and | ||||||
8 | (3) meet any requirements established by law
| ||||||
9 | concerning aggregated service offered pursuant to this | ||||||
10 | Section. | ||||||
11 | (c) The process for soliciting bids for electricity and | ||||||
12 | other related services and awarding proposed agreements for the | ||||||
13 | purchase of electricity and other related services shall be | ||||||
14 | conducted in the following order: | ||||||
15 | (1) The corporate authorities or county board shall may | ||||||
16 | solicit bids for electricity and other related services | ||||||
17 | through a competitive procurement process . | ||||||
18 | (2) Notwithstanding Section 16-122 of the Public | ||||||
19 | Utilities Act and Section 2HH of the Consumer Fraud and | ||||||
20 | Deceptive Business Practices Act, an electric utility that | ||||||
21 | provides residential and small commercial retail electric | ||||||
22 | service in the aggregate area must, upon request of the | ||||||
23 | corporate authorities or the county board in the aggregate | ||||||
24 | area, submit to the requesting party, in an electronic | ||||||
25 | format, those account numbers, names , and addresses of | ||||||
26 | applicable residential and small commercial retail |
| |||||||
| |||||||
1 | customers in the aggregate area of the municipality or | ||||||
2 | unincorporated areas of the county that are reflected in | ||||||
3 | the electric utility's records at the time of the request. | ||||||
4 | An electric utility shall exclude any customer already | ||||||
5 | switched to an alternative retail electric supplier, any | ||||||
6 | customer participating in a residential real-time pricing | ||||||
7 | program, and any customer participating in a Percentage of | ||||||
8 | Income Payment Plan from the information provided to the | ||||||
9 | corporate authority or county board in the aggregate area. | ||||||
10 | Upon receiving enrollments from an opt-out aggregation, an | ||||||
11 | electric utility shall design system processes to reject | ||||||
12 | any opt-out aggregation enrollment that would result in the | ||||||
13 | switch of a customer already under service with an | ||||||
14 | alternative retail electric supplier, participating in a | ||||||
15 | residential real-time pricing program, or participating in | ||||||
16 | a Percentage of Income Payment Plan. Any corporate | ||||||
17 | authority or county board receiving customer information | ||||||
18 | from an electric utility shall only disclose the | ||||||
19 | information for the purpose of the opt-out aggregation of | ||||||
20 | electric power supply and shall be subject to the | ||||||
21 | limitations on the disclosure of the information described | ||||||
22 | in Section 16-122 of the Public Utilities Act and Section | ||||||
23 | 2HH of the Consumer Fraud and Deceptive Business Practices | ||||||
24 | Act, and an electric utility shall not be held liable for | ||||||
25 | any claims arising out of the provision of information | ||||||
26 | pursuant to this item (2). |
| |||||||
| |||||||
1 | (d) If the corporate authorities or county board operate | ||||||
2 | under an opt-in program for residential and small commercial | ||||||
3 | retail customers, then the corporate authorities or county | ||||||
4 | board shall comply with all of the following: | ||||||
5 | (1) Within 60 days after receiving the bids, the | ||||||
6 | corporate authorities or county board shall allow | ||||||
7 | residential and small commercial retail customers to | ||||||
8 | commit to the terms and conditions of a bid that has been | ||||||
9 | selected by the corporate authorities or county board. | ||||||
10 | (2) If (A) the corporate authorities or county board | ||||||
11 | award proposed agreements for the purchase of electricity | ||||||
12 | and other related services and (B) an agreement is reached | ||||||
13 | between the corporate authorities or county board for those | ||||||
14 | services, then customers committed to the terms and | ||||||
15 | conditions according to item (1) of this subsection (d) | ||||||
16 | shall be committed to the agreement. | ||||||
17 | (e) If the corporate authorities or county board operate as | ||||||
18 | an opt-out program for residential and small commercial retail | ||||||
19 | customers, then it shall be the duty of the aggregated entity | ||||||
20 | to fully inform
applicable residential and small commercial | ||||||
21 | retail customers in advance that they have the right to opt out | ||||||
22 | of the aggregation program.
The disclosure shall prominently | ||||||
23 | state all charges to be made and
shall include
full disclosure | ||||||
24 | of the cost to obtain service pursuant to Section 16-103 of the | ||||||
25 | Public Utilities Act, how
to access it,
and the fact that it is | ||||||
26 | available to them without penalty, if they are
currently |
| |||||||
| |||||||
1 | receiving
service under that Section. | ||||||
2 | The Illinois Commerce Commission shall adopt emergency | ||||||
3 | rules to implement the provisions of this amendatory Act of the | ||||||
4 | 97th General Assembly, including, but not limited to, | ||||||
5 | protection of customers (i) already under contract with an | ||||||
6 | alternative retail electric supplier, (ii) participating in a | ||||||
7 | residential real-time pricing program, or (iii) participating | ||||||
8 | in a Percentage of Income Payment Plan, utility processes for | ||||||
9 | enrollment of opt-out customers, and minimum disclosure | ||||||
10 | requirements for opt-out aggregation programs within 45 days | ||||||
11 | after the effective date of this amendatory Act of the 97th | ||||||
12 | General Assembly. | ||||||
13 | The Illinois Power Agency shall furnish, without charge, to
| ||||||
14 | any residential and small commercial retail customer citizen a
| ||||||
15 | list of all supply options available to them in a format that
| ||||||
16 | allows
comparison of prices and products. | ||||||
17 | The Illinois Power Agency shall provide assistance to | ||||||
18 | municipalities, counties, or associations working with | ||||||
19 | municipalities to help complete the plan and bidding process. | ||||||
20 | This Section does not prohibit municipalities or counties | ||||||
21 | from entering into an intergovernmental agreement to aggregate | ||||||
22 | residential and small commercial retail electric loads.
| ||||||
23 | Any aggregation program plan adopted prior to the effective | ||||||
24 | date of this amendatory Act of the 97th General Assembly shall | ||||||
25 | not be exempt from the provisions of this amendatory Act of the | ||||||
26 | 97th General Assembly. |
| |||||||
| |||||||
1 | (Source: P.A. 96-176, eff. 1-1-10.)
| ||||||
2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.".
|