Sen. David Koehler

Filed: 4/11/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1802

2    AMENDMENT NO. ______. Amend Senate Bill 1802 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-92 as follows:
 
6    (20 ILCS 3855/1-92)
7    Sec. 1-92. Aggregation of retail electrical load of
8residential and small commercial retail customers by
9municipalities and counties.
10    (a) The corporate authorities of a municipality or county
11board of a county may adopt an ordinance under which it may
12aggregate, in accordance with this Section, residential and
13small commercial retail electrical loads of applicable
14residential and small commercial retail customers located,
15respectively, within the municipality or the unincorporated
16areas of the county and, for that purpose, shall may solicit

 

 

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1bids and enter into service agreements to facilitate for those
2loads the sale and purchase of electricity and related services
3and equipment through a competitive procurement process. For
4purposes of this Section, small commercial retail customers of
5an electric utility that on December 31, 2010 provided electric
6service to at least 2,000,000 customers in Illinois shall be
7those customers of the watt-hour only delivery service class.
8For purposes of this Section, small commercial retail customers
9of an electric utility that on December 31, 2010 provided
10electric service to 2,000,000 or fewer customers but more than
11100,000 customers in Illinois shall be those customers of an
12electric utility consuming 15,000 kilowatt-hours or less of
13electricity annually in its service area. Applicable
14residential and small commercial retail customers in an
15aggregation program shall not include customers of an
16alternative retail electric supplier that is not the chosen
17supplier of the aggregation program or customers participating
18in a residential real-time pricing program or Percentage of
19Income Payment Plan (PIPP) unless those customers
20affirmatively choose to join the aggregation program.
21    If the corporate authorities or the county board seek to
22operate the aggregation program as an opt-out program, then the
23program applies solely to residential and small commercial
24retail customers that are taking service from the electric
25utility through fixed-price bundled service tariffs or taking
26electric supply service offered by an alternative retail

 

 

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1electric supplier from an expiring or current aggregation
2program. The corporate authorities or the county board shall
3allow new residents outside of an opt-out period, and
4non-applicable residential and small commercial retail
5customers who were not eligible to receive the opt-out notice,
6to affirmatively commit to the terms and conditions of an
7opt-out program at any time during the length of the program
8under a process disclosed in the plan of operation and
9governance.
10    The corporate authorities or county board may also exercise
11such authority jointly with any other municipality or county.
12Two or more municipalities or counties, or a combination of
13both, may initiate a process jointly to authorize aggregation
14by a majority vote of each particular municipality or county as
15required by this Section.
16    If the corporate authorities or the county board seek to
17operate the aggregation program as an opt-out program for
18residential and small commercial retail customers, then prior
19to the adoption of an ordinance with respect to aggregation of
20residential and small commercial retail electric loads, the
21corporate authorities of a municipality or the county board of
22a county shall submit a referendum to its residents to
23determine whether or not the aggregation program shall operate
24as an opt-out program for residential and small commercial
25retail customers.
26    In addition to the notice and conduct requirements of the

 

 

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1general election law, notice of the referendum shall state
2briefly the purpose of the referendum. The question of whether
3the corporate authorities or the county board shall adopt an
4opt-out aggregation program for residential and small
5commercial retail customers shall be submitted to the electors
6of the municipality or county board at a regular election and
7approved by a majority of the electors voting on the question.
8The corporate authorities or county board must certify to the
9proper election authority, which must submit the question at an
10election in accordance with the Election Code.
11    The election authority must submit the question in
12substantially 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?
18The election authority must record the votes as "Yes" or "No".
19    If a majority of the electors voting on the question vote
20in the affirmative, then the corporate authorities or county
21board may implement an opt-out aggregation program for
22residential and small commercial retail customers.
23    A referendum must pass in each particular municipality or
24county that is engaged in the aggregation program. If the
25referendum fails, then the corporate authorities or county
26board shall operate the aggregation program as an opt-in

 

 

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1program for residential and small commercial retail customers.
2    An ordinance under this Section shall specify whether the
3aggregation will occur only with the prior consent of each
4person owning, occupying, controlling, or using an electric
5load center proposed to be aggregated. Nothing in this Section,
6however, authorizes the aggregation of electric loads that are
7served or authorized to be served by an electric cooperative as
8defined by and pursuant to the Electric Supplier Act or loads
9served by a municipality that owns and operates its own
10electric distribution system. No aggregation shall take effect
11unless approved by a majority of the members of the corporate
12authority or county board voting upon the ordinance.
13    A governmental aggregator under this Section is not a
14public utility, agent, broker, consultant, or an alternative
15retail electric supplier. Nothing in this Section prohibits a
16governmental aggregator from retaining the services of an
17agent, broker, or consultant.
18    (a-5) A governmental aggregator must utilize the services
19of a qualified expert for the execution of a competitive
20procurement process to meet the supply needs of its
21aggregation. The qualified expert must be separate from, and
22maintain no business relationship with, any other consultant
23providing services to the governmental aggregator. A qualified
24expert, as evidenced by a certified affidavit, must have:
25        (1) direct previous experience administering
26    large-scale competitive procurement processes;

 

 

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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
17provide governmental aggregators and other interested parties
18with the names of experts deemed as qualified by the Agency to
19serve as the procurement administrators for the most recent
20Agency-administered procurement events.
21    (b) Upon the applicable requisite authority under this
22Section, the corporate authorities or the county board, with
23assistance from the Illinois Power Agency, shall develop a plan
24of operation and governance for the aggregation program so
25authorized.
26    For an opt-out program, the plan shall specify the process

 

 

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1and associated timelines for applicable residential and small
2commercial retail customers choosing to opt out of the program
3as well as for non-applicable customers affirmatively choosing
4to join the aggregation program. The plan for an opt-out
5program shall ensure that applicable residential and small
6commercial retail customers are explicitly allowed through
7written or electronic notice the opportunity to opt out of the
8aggregation program at a minimum of once every 3 years with no
9penalty, with the right to opt out to either (i) the electric
10utility if bundled retail electric service is still offered to
11that customer class pursuant to Section 16-103 of the Public
12Utilities Act, (ii) an electric utility's residential
13real-time pricing rate, if available, or (iii) an electric
14supply service offered by an alternative retail electric
15supplier certified by the Commission. The plan for the
16aggregation program shall not conflict with or otherwise
17abrogate any existing contracts between an alternative retail
18electric supplier and residential and small commercial retail
19customers.
20    Before adopting a plan under this Section, the corporate
21authorities or county board shall hold at least 2 public
22hearings on the plan. Before the first hearing, the corporate
23authorities or county board shall publish notice of the
24hearings once a week for 2 consecutive weeks in a newspaper of
25general circulation in the jurisdiction. The notice shall
26summarize the plan and state the date, time, and location of

 

 

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1each hearing. Any load aggregation plan established pursuant to
2this 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
12other related services and awarding proposed agreements for the
13purchase of electricity and other related services shall be
14conducted 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

 

 

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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).

 

 

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1    (d) If the corporate authorities or county board operate
2under an opt-in program for residential and small commercial
3retail customers, then the corporate authorities or county
4board 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
18an opt-out program for residential and small commercial retail
19customers, then it shall be the duty of the aggregated entity
20to fully inform applicable residential and small commercial
21retail customers in advance that they have the right to opt out
22of the aggregation program. The disclosure shall prominently
23state all charges to be made and shall include full disclosure
24of the cost to obtain service pursuant to Section 16-103 of the
25Public Utilities Act, how to access it, and the fact that it is
26available to them without penalty, if they are currently

 

 

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1receiving service under that Section.
2    The Illinois Commerce Commission shall adopt emergency
3rules to implement the provisions of this amendatory Act of the
497th General Assembly, including, but not limited to,
5protection of customers (i) already under contract with an
6alternative retail electric supplier, (ii) participating in a
7residential real-time pricing program, or (iii) participating
8in a Percentage of Income Payment Plan, utility processes for
9enrollment of opt-out customers, and minimum disclosure
10requirements for opt-out aggregation programs within 45 days
11after the effective date of this amendatory Act of the 97th
12General Assembly.
13    The Illinois Power Agency shall furnish, without charge, to
14any residential and small commercial retail customer citizen a
15list of all supply options available to them in a format that
16allows comparison of prices and products.
17    The Illinois Power Agency shall provide assistance to
18municipalities, counties, or associations working with
19municipalities to help complete the plan and bidding process.
20    This Section does not prohibit municipalities or counties
21from entering into an intergovernmental agreement to aggregate
22residential and small commercial retail electric loads.
23    Any aggregation program plan adopted prior to the effective
24date of this amendatory Act of the 97th General Assembly shall
25not be exempt from the provisions of this amendatory Act of the
2697th General Assembly.

 

 

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1(Source: P.A. 96-176, eff. 1-1-10.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".