HB0458 95TH GENERAL ASSEMBLY

LRB095 07712 MJR 27868 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0458

Introduced 1/29/2007, by Rep. John E. Bradley

SYNOPSIS AS INTRODUCED:

220 ILCS 5/17-800 new

Amends the Public Utilities Act. Creates the regional aggregation program that will be available to certain people receiving residential electric service from an investor-owned utility. Provides that a specified unit of local government may aggregate the retail electrical load located in its boundaries either individually or jointly with any other unit of local government authorized to participate in the program. Provides that a unit of local government or regional aggregator shall adopt an operation and governance program. Provides that a unit of local government or regional aggregator shall not require a license or permission from the Illinois Commerce Commission, nor shall it be subject to the jurisdiction of the Commission. Provides guidelines for a company's coordination with regional aggregators. Provides opt-in or opt-out notification requirements that are the responsibility of the unit of local government. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by adding Section 17-800 as follows:

(220 ILCS 5/17-800 new)

Sec. 17-800. Regional aggregation program.

(a) For purposes of this Section:

"Company" means any business entity that provides, or has provided, electric service in the pilot area within the 6 months preceding the effective date of this amendatory act of the 95th General Assembly.

"Competitive service provider" or "CSP" means the company or entity chosen by a unit of local government or regional aggregator to provide electric power to residential customers in the pilot area.

"Customer" means any person in the pilot area.

"Pilot area" means any unit of local government situated within the counties of Alexander, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jefferson, Johnson, Massac, Perry, Pope, Pulaski, Randolph, Saline, White, Williamson, and Union and does not mean any portion of these areas that receive electric service from a municipal cooperative or rural cooperative.

"Regional aggregator" means a person or entity authorized by the governing bodies of 2 or more units of local government that are entirely within the pilot area to join the bodies into a single purchasing unit to negotiate the purchase of electricity from retail electric providers.

(b) The program created under this Section shall be available to all people in the pilot area receiving residential electric service from an investor-owned utility, but shall not be available to customers that receive residential electric service from a municipal cooperative or a rural cooperative.

The unit of local government or regional aggregator must notify customers of their eligibility to participate.

(c) Beginning July 1, 2007, a unit of local government within the pilot area may aggregate the retail electrical load located in its boundaries either individually or jointly with any other unit of local government authorized under this Section to participate in the program. A corporate authority of a unit of local government within the pilot area seeking to form an aggregation group made up of one or more units of local government within the pilot area shall adopt an ordinance, under which it may aggregate one or more classes of the retail electrical loads. The ordinance shall specify whether the aggregation will occur only with the prior affirmative acceptance (opt in) of each electric account holder or will occur automatically for all such electric account holders unless the account holder declines (opt out).

Before adopting an ordinance under this Section, the unit of local government shall hold at least one public hearing on the plan. Before the first hearing, the unit of local government shall publish notice of the hearings once a week for 2 consecutive weeks in a newspaper of general circulation in the jurisdiction. The notice shall summarize the plan and state the date, time, and location of each hearing.

(d) The unit of local government or regional aggregator shall adopt an operation and governance plan for the program. The operation and governance plan adopted shall detail the services to be provided under the aggregation and specify all customer rights and obligations under the aggregation. The plan shall be sufficiently detailed to allow customers to readily understand the services that the regional aggregator is to provide and to compare those services to similar services provided by other electricity providers. The regional aggregator shall write the plan in clear and plain language so that consumers can readily understand it. The plan shall contain all of the following:

(1) A detailed description of services the regional aggregator is to provide under the aggregation, noting whether the service is to be provided directly by the regional aggregator or by a party contracted by the regional aggregator.

(2) A detailed description of the regional aggregator's plan for providing the required opt-out disclosure notices to customers. The plan shall describe the steps that the regional aggregator will take to ensure that all customers within the regional aggregator's boundaries are notified. The plan shall also identify the time frames associated with the opt-out disclosure notice.

(3) A detailed description of the regional aggregator's customer service procedures and dispute resolution processes.

(4) A detailed description of the policies associated with a customer moving into the aggregation area or within the aggregation area. If the policies provide that these customers will be automatically included in the aggregation, the regional aggregator shall provide the customer an opportunity to opt out of the aggregation.

(5) A description of the regional aggregator's policies regarding the ability of a customer who has previously opted out of the aggregation to join the aggregation, including identification of any associated conditions.

Any customer who leaves the aggregation program shall default to the bundled utility service until the person chooses an alternative supplier or returns to the aggregation program.

A regional aggregator shall keep its operation and governance plan available for public inspection and shall, upon request, provide a copy of the plan to any existing or potential customer of the aggregation.

A regional aggregator shall not alter its operation and governance plan in any way that materially affects the customers of the aggregation without first providing notice to all affected customers and providing these customers the opportunity to opt out of the aggregation according to the procedures established for the initial opt out disclosure notice. The notice shall set forth the changes to the plan, inform the customer of its right to opt out of the aggregation without penalty and identify the method and time frame for the customer to opt out.

(e) A unit of local government or regional aggregator shall not require any license or permission from the Commission nor shall it be subject to the jurisdiction of the Commission.

(f) A company must provide the unit of local or regional aggregator with a list of all eligible customers within the jurisdictional boundaries of the unit of local government. The list shall contain information consistent with the information required by the unit of local government to facilitate customer communications. The unit of local government or the regional aggregator must be provided with an updated customer list from the company every 3 months. The company will provide coordination services consistent with Federal Energy Regulatory Commission guidelines. The company must provide customers participating in the pilot area with information about changes in the market price and wires charges.

(g) It is the responsibility of the unit of local government, or its designee, to notify customers prior to enrollment of all of the following:

(1) Actions taken to select the CSP.

(2) Services that the CSP will provide and actual terms and conditions under which the CSP is providing those services.

(3) Fixed prices are to be expressed in cents per kilowatt-hour. Variable rates must include a description of factors that cause the rate to vary and how often this will occur.

(4) Information comparing rates by the current electric provider and the CSP.

(5) Itemized list of fees and charges, if any, that are not included in the rates.

(6) Dates covered by the CSP's offer.

(7) Statement that explains that, if the customer switches back to service with the company, the customer will return to the rates that will be in effect in the area at the time the customer switches back.

(8) Credit and deposit policies.

(9) Limitations or conditions for customer inclusion. A unit of local government or a regional aggregator shall not enroll a person as part of an opt-out program unless it clearly discloses, prior to the aggregation taking effect, that the person will be enrolled automatically in the aggregation program and will remain so enrolled unless the person affirmatively elects by a stated procedure not to be enrolled.

(10) Explanation of opt-in or opt-out process steps necessary to exercise the customer's option and any associated timeframe for a response. The process must, at a minimum, allow for the return of a post card to the CSP and must allow at least 21 calendar days from the date of the postmark for the customer to respond.

(11) A local or toll-free telephone number for questions.

The unit of local government or the regional aggregators shall not release to the CSP any information pertaining to any customers that are not active participants in the pilot program. The unit of local government or regional aggregator, or its designee, must maintain a record of the customer's opt-in or opt-out decision for the term of the pilot program.

Section 99. Effective date. This Act takes effect upon becoming law.