093_HB2779eng HB2779 Engrossed LRB093 06903 JLS 11373 b 1 AN ACT concerning the distribution of electricity. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Utilities Act is amended by adding 5 Section 17-800 as follows: 6 (220 ILCS 5/17-800 new) 7 Sec. 17-800. Aggregation of electrical load by 8 municipalities and counties. 9 (a) The corporate authorities of a municipality or 10 county board of a county may adopt an ordinance, under which 11 it may aggregate in accordance with this Section one or more 12 classes of the retail electrical loads located, respectively, 13 within the municipality or county and, for that purpose, may 14 solicit bids and enter into service agreements to facilitate 15 for those loads the sale and purchase of electricity and 16 related services and equipment. The corporate authorities or 17 county board also may exercise such authority jointly with 18 any other municipality or county. An ordinance under this 19 Section shall specify whether the aggregation will occur only 20 with the prior consent of each person owning, occupying, 21 controlling, or using an electric load center proposed to be 22 aggregated or will occur automatically for all such persons 23 pursuant to the opt-out requirements of this Section. Nothing 24 in this Section, however, authorizes the aggregation of 25 retail electric loads of an electric load center that is 26 located in the certified territory of a nonprofit electric 27 supplier or an electric load center served by distribution 28 facilities of a municipal electric utility. If an ordinance 29 adopted under this Section specifies that aggregation will 30 occur automatically, the corporate authorities or county 31 board shall certify the question of the authority to HB2779 Engrossed -2- LRB093 06903 JLS 11373 b 1 aggregate in accordance with the Election Code to the 2 election authority for submission to the voters at the next 3 election. No aggregation pursuant to an ordinance adopted 4 under this Section that provides for an election under this 5 Section shall take effect unless approved by a majority of 6 the electors voting upon the ordinance at the election held 7 pursuant to this Section. 8 No corporate authority or county board acting pursuant to 9 an ordinance under this Section that provides for automatic 10 aggregation shall aggregate the electrical load of any 11 electric load center located within its jurisdiction unless 12 it clearly discloses to the person owning, occupying, 13 controlling, or using the load center that the person will be 14 enrolled automatically in the aggregation program and will 15 remain so enrolled unless the person affirmatively elects by 16 a stated procedure not to be so enrolled. The disclosure 17 shall state prominently the rates, charges, and other terms 18 and conditions of enrollment. The stated procedure shall 19 allow any person enrolled in the aggregation program the 20 opportunity to opt out of the program every 3 years, without 21 paying an exit fee. Any such person that leaves the 22 aggregation program pursuant to the stated procedure shall 23 default to the bundled utility service until the person 24 chooses an alternative supplier or returns to the aggregation 25 program. 26 A governmental aggregator under this Section is not a 27 public utility or an alternative retail electric supplier and 28 shall be subject to supervision and regulation by the 29 Commission only to the extent provided in this Section. 30 A municipality may initiate a process to authorize 31 aggregation by a majority vote of the municipal council, with 32 the approval of the mayor. A county may initiate the process 33 to authorize aggregation by a majority vote of the county 34 board. Two or more municipalities or counties, or a HB2779 Engrossed -3- LRB093 06903 JLS 11373 b 1 combination of both, may initiate a process jointly to 2 authorize aggregation by a majority vote of each particular 3 municipality or county as herein required. 4 Upon the applicable requisite authority under this 5 Section, the corporate authorities or the county board shall 6 develop a plan of operation and governance for the 7 aggregation program so authorized. Before adopting a plan 8 under this Section, the corporate authorities or county board 9 shall hold at least 2 public hearings on the plan. Before the 10 first hearing, the corporate authorities or county board 11 shall publish notice of the hearings once a week for 2 12 consecutive weeks in a newspaper of general circulation in 13 the jurisdiction. The notice shall summarize the plan and 14 state the date, time, and location of each hearing. Any load 15 aggregation plan established pursuant to this Section shall: 16 (1) provide for universal access to all applicable 17 customers and equitable treatment of applicable classes 18 of customers; 19 (2) describe demand management and energy 20 efficiency services to be provided to each class of 21 customers; and 22 (3) meet any requirements established by law or the 23 Commission concerning aggregated service offered pursuant 24 to this Section. 25 The plan shall be filed with the Commission for review 26 and approval and shall include, without limitation, an 27 organizational structure of the program, its operations, and 28 funding; the methods of establishing rates and allocating 29 costs among participants; the methods for entering and 30 terminating agreements with other entities; the rights and 31 responsibilities of program participants, including the terms 32 and conditions under which retail customers who have chosen 33 to opt out of the aggregated service may take service from 34 the aggregated entity; and procedures for termination of the HB2779 Engrossed -4- LRB093 06903 JLS 11373 b 1 program. Within 120 days after receipt of the plan, the 2 Commission shall issue an order either approving or rejecting 3 the plan. If the Commission rejects the plan, it shall state 4 detailed reasons for rejecting the plan in its order. Upon 5 approval of the plan, the corporate authorities or county 6 board may solicit bids for electricity and other related 7 services pursuant to the methods established in the plan. The 8 corporate authorities or county board shall report the 9 results of this solicitation and proposed agreement awards to 10 the Commission, which shall have 15 business days to suspend 11 such awards if the solicitation or awards are not in 12 conformance with the plan or if the cost for energy would in 13 the first year exceed the cost of that energy if that energy 14 was obtained from an electric utility under Section 16-103 by 15 citizens in the municipality or county or group of 16 municipalities and counties, unless the applicant can 17 demonstrate that the cost for energy under the aggregation 18 plan will be lower in the subsequent years or the applicant 19 can demonstrate that such excess cost is due to the purchase 20 of renewable energy. If the Commission does not suspend the 21 proposed contract awards within 15 business days after 22 filing, the corporate authorities or county board shall have 23 the right to award the proposed agreements. 24 It shall be the duty of the aggregated entity to fully 25 inform retail customers in advance of automatic enrollment 26 that they are to be automatically enrolled and that they have 27 the right to opt out of the aggregated entity without 28 penalty. The disclosure shall prominently state all charges 29 to be made and shall include full disclosure of the cost to 30 obtain service pursuant to Section 16-103, how to access it, 31 and the fact that it is available to them without penalty, if 32 they are currently receiving service under that Section. The 33 Commission shall furnish, without charge, to any citizen a 34 list of all supply options available to them in a format that HB2779 Engrossed -5- LRB093 06903 JLS 11373 b 1 allows comparison of prices and products. 2 (b) The Commission shall promulgate rules by which the 3 corporate authorities or county board may request information 4 from the electric utility or utilities whose customers may be 5 included in its aggregation plan. The rules shall ensure that 6 municipalities and counties have reasonable and timely access 7 to information pertinent to the formation of a plan and 8 solicitation of bids to serve customers, that confidentiality 9 of individuals is protected, and that charges for production 10 of such data are reasonable and not unduly burdensome to the 11 corporate authorities or county board. Information to be 12 provided by the electric utility to the municipality or 13 county shall include, but is not limited to, the following: 14 (1) billing and electric load data by customer 15 class; 16 (2) forecasts of electric demand; and 17 (3) for the purpose of opt-out notification, the 18 names, addresses, and meter and account numbers of 19 customers who do not take service from an alternative 20 retail electric supplier.