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


Sen. David Koehler

Filed: 3/16/2011





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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, may solicit bids and



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1enter into service agreements to facilitate for those loads the
2sale and purchase of electricity and related services and
3equipment. For purposes of this Section, small commercial
4retail customers shall not be eligible to participate in an
5aggregation program until January 1, 2013. Applicable
6residential and small commercial retail customers in an
7aggregation program shall not include customers of an
8alternative retail electric supplier or customers
9participating in a utility-offered residential real-time
10pricing program or Percentage of Income Payment Plan (PIPP)
11unless those customers affirmatively choose to join the
12aggregation program.
13    If the corporate authorities or the county board seek to
14operate the aggregation program as an opt-out program, then the
15program applies solely to residential and small commercial
16retail customers that are taking service from the electric
17utility through fixed-price bundled service tariffs. The
18corporate authorities or the county board shall allow new
19residents outside of an opt-out period, and non-applicable
20residential and small commercial retail customers who were not
21eligible to receive the opt-out notice, to affirmatively commit
22to the terms and conditions of an opt-out program at any time
23during the length of the program under a process disclosed in
24the plan of operation and governance.
25    The corporate authorities or county board may also exercise
26such authority jointly with any other municipality or county.



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



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



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1authority or county board voting upon the ordinance.
2    A governmental aggregator under this Section is not a
3public utility, agent, broker, consultant, or an alternative
4retail electric supplier. Nothing in this Section prohibits a
5governmental aggregator from retaining the services of an
6agent, broker, or consultant.
7    (b) Upon the applicable requisite authority under this
8Section, the corporate authorities or the county board, with
9assistance from the Illinois Power Agency, shall develop a plan
10of operation and governance for the aggregation program so
12    For an opt-out program, the plan shall specify the process
13and associated timelines for applicable residential and small
14commercial retail customers choosing to opt out of the program
15as well as for non-applicable customers affirmatively choosing
16to join the aggregation program. The plan for an opt-out
17program must ensure that applicable residential and small
18commercial retail customers are able to leave the aggregation
19program at any time without penalties or fees, with the right
20to opt out to either (i) the electric utility if bundled retail
21electric service is still offered to that customer class
22pursuant to Section 16-103 of the Public Utilities Act, (ii) an
23electric utility's residential real-time pricing rate, if
24available, or (iii) an electric supply service offered by an
25alternative retail electric supplier certified by the
26Commission. The plan must provide for, and the corporate



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1authorities must provide, a reminder of this opt-out right to
2participants in the aggregation program at least once every 3
3years. The plan for the aggregation program must not interfere,
4conflict, or otherwise abrogate any existing contracts between
5an alternative retail electric supplier and residential and
6small commercial retail customers and contracts that are in
7effect pursuant to Section 16-111.5 of the Public Utilities Act
8and the applicable provisions of this Act as any such
9procurement plans have been approved by the Commission. In
10addition, the plan for the aggregation program should be
11properly integrated with any Commission-approved Illinois
12Power Agency procurement plan.
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 may
9    solicit bids for electricity and other related services.
10        (2) Notwithstanding Section 16-122 of the Public
11    Utilities Act and Section 2HH of the Consumer Fraud and
12    Deceptive Business Practices Act, an electric utility that
13    provides residential and small commercial retail electric
14    service in the aggregate area must, upon request of the
15    corporate authorities or the county board in the aggregate
16    area, submit to the requesting party, in an electronic
17    format, those account numbers, names, and addresses of
18    applicable residential and small commercial retail
19    customers in the aggregate area of the municipality or
20    unincorporated areas of the county that are reflected in
21    the electric utility's records at the time of the request.
22    An electric utility must exclude any customer already
23    switched to an alternative retail electric supplier from
24    the information provided to the corporate authority or
25    county board in the aggregate area. Upon receiving
26    enrollments from an opt-out aggregation, an electric



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1    utility must design system processes to reject any opt-out
2    aggregation enrollment that would result in the switch of a
3    customer already under service with an alternative retail
4    electric supplier. Any corporate authority or county board
5    receiving customer information from an electric utility
6    shall only disclose the information for the purpose of the
7    opt-out aggregation and shall be subject to the limitations
8    on the disclosure of the information described in Section
9    16-122 of the Public Utilities Act and Section 2HH of the
10    Consumer Fraud and Deceptive Business Practices Act, and an
11    electric utility shall not be held liable for any claims
12    arising out of the provision of information pursuant to
13    this item (2).
14    (d) If the corporate authorities or county board operate
15under an opt-in program for residential and small commercial
16retail customers, then the corporate authorities or county
17board shall comply with all of the following:
18        (1) Within 60 days after receiving the bids, the
19    corporate authorities or county board shall allow
20    residential and small commercial retail customers to
21    commit to the terms and conditions of a bid that has been
22    selected by the corporate authorities or county board.
23        (2) If (A) the corporate authorities or county board
24    award proposed agreements for the purchase of electricity
25    and other related services and (B) an agreement is reached
26    between the corporate authorities or county board for those



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1    services, then customers committed to the terms and
2    conditions according to item (1) of this subsection (d)
3    shall be committed to the agreement.
4    (e) If the corporate authorities or county board operate as
5an opt-out program for residential and small commercial retail
6customers, then it shall be the duty of the aggregated entity
7to fully inform applicable residential and small commercial
8retail customers in advance that they have the right to opt out
9of the aggregation program. The disclosure shall prominently
10state all charges to be made and shall include full disclosure
11of the cost to obtain service pursuant to Section 16-103 of the
12Public Utilities Act, how to access it, and the fact that it is
13available to them without penalty, if they are currently
14receiving service under that Section.
15    The Illinois Commerce Commission shall adopt rules to
16implement the provisions of this amendatory Act of the 97th
17General Assembly, including, but not limited to, protection of
18customers already under contract with an alternative retail
19electric supplier, utility processes for enrollment of opt-out
20customers, minimum disclosure requirements for opt-out
21aggregation programs and licensing of municipalities.
22    The Illinois Power Agency shall furnish, without charge, to
23any residential and small commercial retail customer citizen a
24list of all supply options available to them in a format that
25allows comparison of prices and products.
26    The Illinois Power Agency shall provide assistance to



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1municipalities, counties, or associations working with
2municipalities to help complete the plan and bidding process.
3    This Section does not prohibit municipalities or counties
4from entering into an intergovernmental agreement to aggregate
5residential and small commercial retail electric loads.
6    Any aggregation program plan adopted prior to the effective
7date of this amendatory Act of the 97th General Assembly shall
8not be exempt from the provisions of this amendatory Act of the
997th General Assembly.
10(Source: P.A. 96-176, eff. 1-1-10.)
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".