HR0304HAM001 LRB095 11908 MJR 36905 a

1
AMENDMENT TO HOUSE RESOLUTION 304

2     AMENDMENT NO. ___. Amend House Resolution 304 by replacing
3 everything after the heading with the following:
 
4     "WHEREAS, The 90th General Assembly passed the Electric
5 Service Customer Choice and Rate Relief Law of 1997, which
6 deregulated the electric industry and reduced and froze rates
7 for residential customers; and
 
8     WHEREAS, As a result of the Electric Service Customer
9 Choice and Rate Relief Law of 1997, the electric utilities that
10 were vertically integrated sold off their generating capacity
11 to become solely electric transmission and distribution
12 utilities; and
 
13     WHEREAS, Upon the conclusion of the freeze on electric
14 rates that was initiated in the 90th General Assembly and
15 extended in the 92nd General Assembly on January 1, 2007, the 2

 

 

HR0304HAM001 - 2 - LRB095 11908 MJR 36905 a

1 largest electric utilities of the State were required to enter
2 into the marketplace and procure power; and
 
3     WHEREAS, The electric utilities chose a method known as a
4 reverse auction, where bidders submit bids to supply
5 electricity to the utilities at a set price and each subsequent
6 round results in lower prices for the electricity until 100% of
7 the electric needs of the utilities are met; and
 
8     WHEREAS, The commodity price of electricity reached a peak
9 coincident with the time of the reverse auction; and
 
10     WHEREAS, Because of uncertainty in whether the electric
11 utilities would actually purchase the megawatt hours per day
12 that the bidder submitted in the auction process, the bidders
13 built in a risk premium that resulted in extra costs passed on
14 to the customer; and
 
15     WHEREAS, Customers of the 2 largest electric utilities in
16 Illinois are allowed to switch to alternate suppliers for
17 electricity if that option is available in their service
18 territory, thereby reducing the electricity load of a electric
19 utility; and
 
20     WHEREAS, The General Assembly, the electric utilities, the
21 Illinois Commerce Commission, and consumer groups all seek

 

 

HR0304HAM001 - 3 - LRB095 11908 MJR 36905 a

1 alternate ways to procure power for the customers of Illinois
2 that will result in a reduced price; therefore, be it
 
3     RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
4 NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
5 encourage the 2 largest electric utilities in Illinois to
6 design a new procurement method that will result in the
7 electric utilities purchasing no more than 85% of the power
8 needs in an auction process; and be it further
 
9     RESOLVED, That it is recommended that the electric
10 utilities use the procurement method used by natural gas
11 companies to purchase natural gas as a model; and be it further
 
12     RESOLVED, That it is recommended that in such a plan the
13 electric utilities purchase the remaining 15% or more on the
14 open-spot market or short-term contracts; and be it further
 
15     RESOLVED, That the House of Representatives requests that
16 the electric utilities submit the new procurement design to the
17 Illinois Commerce Commission for approval; and be it further
 
18     RESOLVED, That the Illinois Commerce Commission is urged to
19 use the same hearing process and standards used for the rate
20 designs in the procurement of natural gas.".