S-1314 - 06/14/2011 - GOVERNMENT LEGISLATION - Ordinances Supporting DocumentsITEM 10.11.2)
Oil
AGENDA ITEM
Regular Board of Trustees Meeting
of
June 14,2011
SUBJECT: Electric Aggregation Program Ordinance
FROM: David Niemeyer, Village Manager
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: Village Board approve Ordinance 2011 -GL- ELEC -S -1314,
an Ordinance Authorizing An Electricity Aggregation Program Pursuant to the Illinois
Power Agency Act.
Background/History:
On December 16, 1997, the State of Illinois implemented a plan to deregulate Commonwealth
Edison ( "ComEd "). Under this plan, ComEd no longer generates electricity for its customers but
continues to provide power through its distribution system. Alternatively, power can be
purchased through any of the 23 Illinois Commerce Commission approved power suppliers.
Illinois Public Act 096 -0176, Section 1 -92 "Aggregation of electrical load by municipalities and
counties" amends the original Illinois electric deregulation legislation. It allows Village Boards
to transfer their residents' and small commercial retail customer's electric accounts to alternative
electric suppliers. Villages may select to do this in hopes that they may secure a lower electrical
rate for their residents and small commercial retail customers.
On January 11, 2011, the Village Board approved a Resolution to file a request for a Referendum
to be included on the April 5, 2011 election ballot which asked residents if the Village should
have the authority under Public Act 096 -0176 to participate in a bid for the supply of electricity
for its residential and small commercial retail customers. On April 5, 2011 the Referendum was
approved.
Per Illinois Public Act 096 -0176, the Village is required to complete several steps in order to
conduct the bid process for electrical supply. Below is a summary of those steps:
Item
Date Completed and /or Expected
Completion Date
Resolution to conduct a Referendum
January 11, 2011
Referendum
April 5, 2011
Request electrical load data from ComEd*
May 27, 2011
Afv�
Ordinance authorizing an electricity
June 14, 2011
aggregation program
Choose a consultant to assist the Village
TBD
with the Electric Aggregation Program*
Enter into confidentiality agreements with
TBD
potential suppliers to secure electrical load
data information*
First Public Hearing regarding the -
TBD
Village's Plan of Governance (rules
governing the bid process)
Second Public Hearing regarding the
TBD
Village's Plan of Governance (rules
governing the bid process)
Approval of Plan of Governance
TBD
Bid Process
TBD
*Not required as part of the legislation but necessary for conducting the bid process
The attached Ordinance approves the electricity aggregation program, directs staff to prepare the
Plan of Governance and to schedule and notice the required public hearings.
Recommendation:
That the Village Board approve Ordinance 2011 -GL- ELEC -S -1314, an Ordinance Authorizing
Electricity Aggregation Program Pursuant to the Illinois Power Agency Act.
ORDINANCE 2011 -GL- ELEC -S -1314
AN ORDINANCE AUTHORIZING
AN ELECTRICITY AGGREGATION PROGRAM
PURSUANT TO THE ILLINOIS POWER AGENCY ACT
WHEREAS, the Illinois Power Agency Act, 20 ILCS 3855/1 -1 et seq. (the "Act'), authorizes the
corporate authorities of a municipality to adopt an ordinance authorizing a program to aggregate electrical
loads of residential and small commercial retail customers and to solicit bids and enter into service
agreements to facilitate the sale and purchase of electricity and related services and equipment for those
electrical loads ('Program "); and
WHEREAS, pursuant to Section 1 -92 of the Act, the Village may, if authorized by referendum,
operate the Program as an 'opt -out" program that applies to all residential and small commercial retail
electrical customers who do not affirmatively choose not to participate in the Program; and
WHEREAS, at the April 5, 2011 election, the public question of whether to authorize the Village to
proceed with the Program as an "opt -out' program was presented to the electors of the Village, who voted
to authorize the operation of the Program as an 'opt -out' program; and
WHEREAS, prior to soliciting bids and awarding proposed agreements for the provision of
electricity and other related services pursuant to the Program, the Act requires the Village Board to adopt
an ordinance authorizing the Program and to develop and approve a plan of operation for the Program
('Plan of Operation "); and
WHEREAS, pursuant to Section 1 -92 of the Act, the Village President and Board of Trustees
must conduct two public hearings to consider and develop the Plan of Operation and are to receive
assistance from the Illinois Power Agency in developing the Plan of Operation; and
WHEREAS, the Village President and Board of Trustees have determined that it is in the best
interests of the Village and its residents to adopt this Ordinance to authorize the Program and to direct the
Village Manager to establish public hearings for the purpose of developing the Plan of Operation as
provided in this Ordinance;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS, as follows:
Section 1: Recitals. The foregoing recitals are incorporated into, and made a part of, this
Ordinance as the findings of the Village President and Board of Trustees.
Section 2: Authorization of Electricity Aggregation Program. Pursuant to Section 1 -92 of the
Illinois Power Agency Act, 20 ILCS 3855/1 -92, the Village President and Board of Trustees hereby
authorize the establishment of an Electricity Aggregation Program as an 'opt -out" program for the
purpose of aggregating electrical loads of residential and small commercial retail electric customers in the
Village.
Section 3: Authorization and Direction to Consider Plan of Operation. The Village Manager is
hereby authorized and directed to notice two public hearings for the purpose of allowing the Village
President and Board of Trustees to develop and consider a Plan of Operation for the Program pursuant to
the Act.
Ordinance 2011 -
Authorizing an Electricity Aggregation Program
Pursuant to the Illinois Power Agency Act
Page 2 of 2
Section 4: This Ordinance shall be in full force and effect from and after its passage, approval
and publication as required by law.
APPROVED THIS 14th day of June, 2011.
PASSED THIS 14'h day of June, 2011.
Ayes:
Gopal G. Lalmalani
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk