Illinois General Assembly - Full Text of SB1802
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Full Text of SB1802  97th General Assembly

SB1802eng 97TH GENERAL ASSEMBLY

  
  
  

 


 
SB1802 EngrossedLRB097 09314 ASK 49449 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17bids and enter into service agreements to facilitate for those
18loads the sale and purchase of electricity and related services
19and equipment through a competitive procurement process. For
20purposes of this Section, small commercial retail customers of
21an electric utility that on December 31, 2010 provided electric
22service to at least 2,000,000 customers in Illinois shall be
23those customers of the watt-hour only delivery service class.

 

 

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1For purposes of this Section, small commercial retail customers
2of an electric utility that on December 31, 2010 provided
3electric service to 2,000,000 or fewer customers but more than
4100,000 customers in Illinois shall be those customers of an
5electric utility consuming 15,000 kilowatt-hours or less of
6electricity annually in its service area. Applicable
7residential and small commercial retail customers in an
8aggregation program shall not include customers of an
9alternative retail electric supplier that is not the chosen
10supplier of the aggregation program or customers participating
11in a residential real-time pricing program or Percentage of
12Income Payment Plan (PIPP) unless those customers
13affirmatively choose to join the aggregation program.
14    If the corporate authorities or the county board seek to
15operate the aggregation program as an opt-out program, then the
16program applies solely to residential and small commercial
17retail customers that are taking service from the electric
18utility through fixed-price bundled service tariffs or taking
19electric supply service offered by an alternative retail
20electric supplier from an expiring or current aggregation
21program. The corporate authorities or the county board shall
22allow new residents outside of an opt-out period, and
23non-applicable residential and small commercial retail
24customers who were not eligible to receive the opt-out notice,
25to affirmatively commit to the terms and conditions of an
26opt-out program at any time during the length of the program

 

 

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1under a process disclosed in the plan of operation and
2governance.
3    The corporate authorities or county board may also exercise
4such authority jointly with any other municipality or county.
5Two or more municipalities or counties, or a combination of
6both, may initiate a process jointly to authorize aggregation
7by a majority vote of each particular municipality or county as
8required by this Section.
9    If the corporate authorities or the county board seek to
10operate the aggregation program as an opt-out program for
11residential and small commercial retail customers, then prior
12to the adoption of an ordinance with respect to aggregation of
13residential and small commercial retail electric loads, the
14corporate authorities of a municipality or the county board of
15a county shall submit a referendum to its residents to
16determine whether or not the aggregation program shall operate
17as an opt-out program for residential and small commercial
18retail customers.
19    In addition to the notice and conduct requirements of the
20general election law, notice of the referendum shall state
21briefly the purpose of the referendum. The question of whether
22the corporate authorities or the county board shall adopt an
23opt-out aggregation program for residential and small
24commercial retail customers shall be submitted to the electors
25of the municipality or county board at a regular election and
26approved by a majority of the electors voting on the question.

 

 

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1The corporate authorities or county board must certify to the
2proper election authority, which must submit the question at an
3election in accordance with the Election Code.
4    The election authority must submit the question in
5substantially the following form:
6        Shall the (municipality or county in which the question
7    is being voted upon) have the authority to arrange for the
8    supply of electricity for its residential and small
9    commercial retail customers who have not opted out of such
10    program?
11The election authority must record the votes as "Yes" or "No".
12    If a majority of the electors voting on the question vote
13in the affirmative, then the corporate authorities or county
14board may implement an opt-out aggregation program for
15residential and small commercial retail customers.
16    A referendum must pass in each particular municipality or
17county that is engaged in the aggregation program. If the
18referendum fails, then the corporate authorities or county
19board shall operate the aggregation program as an opt-in
20program for residential and small commercial retail customers.
21    An ordinance under this Section shall specify whether the
22aggregation will occur only with the prior consent of each
23person owning, occupying, controlling, or using an electric
24load center proposed to be aggregated. Nothing in this Section,
25however, authorizes the aggregation of electric loads that are
26served or authorized to be served by an electric cooperative as

 

 

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1defined by and pursuant to the Electric Supplier Act or loads
2served by a municipality that owns and operates its own
3electric distribution system. No aggregation shall take effect
4unless approved by a majority of the members of the corporate
5authority or county board voting upon the ordinance.
6    A governmental aggregator under this Section is not a
7public utility, agent, broker, consultant, or an alternative
8retail electric supplier. Nothing in this Section prohibits a
9governmental aggregator from retaining the services of an
10agent, broker, or consultant.
11    (a-5) A governmental aggregator must utilize the services
12of a qualified expert for the execution of a competitive
13procurement process to meet the supply needs of its
14aggregation. The qualified expert must be separate from, and
15maintain no business relationship with, any other consultant
16providing services to the governmental aggregator. A qualified
17expert, as evidenced by a certified affidavit, must have:
18        (1) direct previous experience administering
19    large-scale competitive procurement processes;
20        (2) an advanced degree in economics, mathematics,
21    engineering, or a related area of study;
22        (3) ten years of experience in the electricity sector,
23    including risk management experience;
24        (4) expertise in credit and contract protocols;
25        (5) adequate resources to perform and fulfill the
26    required functions and responsibilities, including a

 

 

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1    bidding and posting process that provides complete
2    auditable communication and bidding recording functions;
3    and
4        (6) the absence of a conflict of interest and
5    inappropriate bias for or against potential bidders as
6    evidenced by an affidavit certifying that the expert does
7    not maintain compensation or agency agreements with any of
8    the bidders participating in the procurement event.
9    (a-10) The Director of the Illinois Power Agency shall
10provide governmental aggregators and other interested parties
11with the names of experts deemed as qualified by the Agency to
12serve as the procurement administrators for the most recent
13Agency-administered procurement events.
14    (b) Upon the applicable requisite authority under this
15Section, the corporate authorities or the county board, with
16assistance from the Illinois Power Agency, shall develop a plan
17of operation and governance for the aggregation program so
18authorized.
19    For an opt-out program, the plan shall specify the process
20and associated timelines for applicable residential and small
21commercial retail customers choosing to opt out of the program
22as well as for non-applicable customers affirmatively choosing
23to join the aggregation program. The plan for an opt-out
24program shall ensure that applicable residential and small
25commercial retail customers are explicitly allowed through
26written or electronic notice the opportunity to opt out of the

 

 

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1aggregation program at a minimum of once every 3 years with no
2penalty, with the right to opt out to either (i) the electric
3utility if bundled retail electric service is still offered to
4that customer class pursuant to Section 16-103 of the Public
5Utilities Act, (ii) an electric utility's residential
6real-time pricing rate, if available, or (iii) an electric
7supply service offered by an alternative retail electric
8supplier certified by the Commission. The plan for the
9aggregation program shall not conflict with or otherwise
10abrogate any existing contracts between an alternative retail
11electric supplier and residential and small commercial retail
12customers.
13    Before adopting a plan under this Section, the corporate
14authorities or county board shall hold at least 2 public
15hearings on the plan. Before the first hearing, the corporate
16authorities or county board shall publish notice of the
17hearings once a week for 2 consecutive weeks in a newspaper of
18general circulation in the jurisdiction. The notice shall
19summarize the plan and state the date, time, and location of
20each hearing. Any load aggregation plan established pursuant to
21this Section shall:
22        (1) provide for universal access to all applicable
23    residential customers and equitable treatment of
24    applicable residential customers;
25        (2) describe demand management and energy efficiency
26    services to be provided to each class of customers; and

 

 

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1        (3) meet any requirements established by law
2    concerning aggregated service offered pursuant to this
3    Section.
4    (c) The process for soliciting bids for electricity and
5other related services and awarding proposed agreements for the
6purchase of electricity and other related services shall be
7conducted in the following order:
8        (1) The corporate authorities or county board shall may
9    solicit bids for electricity and other related services
10    through a competitive procurement process.
11        (2) Notwithstanding Section 16-122 of the Public
12    Utilities Act and Section 2HH of the Consumer Fraud and
13    Deceptive Business Practices Act, an electric utility that
14    provides residential and small commercial retail electric
15    service in the aggregate area must, upon request of the
16    corporate authorities or the county board in the aggregate
17    area, submit to the requesting party, in an electronic
18    format, those account numbers, names, and addresses of
19    applicable residential and small commercial retail
20    customers in the aggregate area of the municipality or
21    unincorporated areas of the county that are reflected in
22    the electric utility's records at the time of the request.
23    An electric utility shall exclude any customer already
24    switched to an alternative retail electric supplier, any
25    customer participating in a residential real-time pricing
26    program, and any customer participating in a Percentage of

 

 

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1    Income Payment Plan from the information provided to the
2    corporate authority or county board in the aggregate area.
3    Upon receiving enrollments from an opt-out aggregation, an
4    electric utility shall design system processes to reject
5    any opt-out aggregation enrollment that would result in the
6    switch of a customer already under service with an
7    alternative retail electric supplier, participating in a
8    residential real-time pricing program, or participating in
9    a Percentage of Income Payment Plan. Any corporate
10    authority or county board receiving customer information
11    from an electric utility shall only disclose the
12    information for the purpose of the opt-out aggregation of
13    electric power supply and shall be subject to the
14    limitations on the disclosure of the information described
15    in Section 16-122 of the Public Utilities Act and Section
16    2HH of the Consumer Fraud and Deceptive Business Practices
17    Act, and an electric utility shall not be held liable for
18    any claims arising out of the provision of information
19    pursuant to this item (2).
20    (d) If the corporate authorities or county board operate
21under an opt-in program for residential and small commercial
22retail customers, then the corporate authorities or county
23board shall comply with all of the following:
24        (1) Within 60 days after receiving the bids, the
25    corporate authorities or county board shall allow
26    residential and small commercial retail customers to

 

 

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1    commit to the terms and conditions of a bid that has been
2    selected by the corporate authorities or county board.
3        (2) If (A) the corporate authorities or county board
4    award proposed agreements for the purchase of electricity
5    and other related services and (B) an agreement is reached
6    between the corporate authorities or county board for those
7    services, then customers committed to the terms and
8    conditions according to item (1) of this subsection (d)
9    shall be committed to the agreement.
10    (e) If the corporate authorities or county board operate as
11an opt-out program for residential and small commercial retail
12customers, then it shall be the duty of the aggregated entity
13to fully inform applicable residential and small commercial
14retail customers in advance that they have the right to opt out
15of the aggregation program. The disclosure shall prominently
16state all charges to be made and shall include full disclosure
17of the cost to obtain service pursuant to Section 16-103 of the
18Public Utilities Act, how to access it, and the fact that it is
19available to them without penalty, if they are currently
20receiving service under that Section.
21    The Illinois Commerce Commission shall adopt emergency
22rules to implement the provisions of this amendatory Act of the
2397th General Assembly, including, but not limited to,
24protection of customers (i) already under contract with an
25alternative retail electric supplier, (ii) participating in a
26residential real-time pricing program, or (iii) participating

 

 

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1in a Percentage of Income Payment Plan, utility processes for
2enrollment of opt-out customers, and minimum disclosure
3requirements for opt-out aggregation programs within 45 days
4after the effective date of this amendatory Act of the 97th
5General Assembly.
6    The Illinois Power Agency shall furnish, without charge, to
7any residential and small commercial retail customer citizen a
8list of all supply options available to them in a format that
9allows comparison of prices and products.
10    The Illinois Power Agency shall provide assistance to
11municipalities, counties, or associations working with
12municipalities to help complete the plan and bidding process.
13    This Section does not prohibit municipalities or counties
14from entering into an intergovernmental agreement to aggregate
15residential and small commercial retail electric loads.
16    Any aggregation program plan adopted prior to the effective
17date of this amendatory Act of the 97th General Assembly shall
18not be exempt from the provisions of this amendatory Act of the
1997th General Assembly.
20(Source: P.A. 96-176, eff. 1-1-10.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.