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Public Hearing on Electricity Aggregation Plan of Operation and Governance
- 1. 1 Catherine Hurley Sustainable Programs Coordinator Electricity Aggregation Public Hearing on Plan of Operation and Governance
- 2. 2 • “Consumer Choice Act” - de-regulates energy in Illinois – Delivery: provided by ComEd – Supply: consumers can choose alternate retail electricity suppliers (ARES) • “Illinois Power Agency Act” – Municipality to aggregate residential and small retail business customers – Goals: cost savings and specify energy mix Electricity Aggregation Introduction
- 3. 3 Aggregation Process March 20, 2012 Referendum Competitive Proposal Process Select Alternate Retail Supplier New Energy Supply Begins Referendum Passes with 73% Option for customers to opt-out of aggregation Proceed If Proposals are Favorable
- 4. 4 Competitive Selection Process Phase 1 Pre-Qualify Suppliers Phase 2 Develop Aggregation Plan and Policy Phase 3 Request Proposals & Select Supplier Two Public Meetings to obtain input
- 5. 5 • Required under Illinois Public Act 096-0176 • Legal notice published in Evanston Roundtable • Requires public hearing for comment on Plan of Governance (POG) document • Public Hearing Schedule – Tuesday, April 3rd Civic Center, City Council Chamber – Wednesday, April 4th Levy Senior Center, Linden Room – Monday, April 9th Civic Center, Room 2200 Public Hearing
- 6. 6 • Required for electrical aggregation • Developed by city staff and Utilities Commission in compliance with State Statute 20 ILCS 3855/1-92 • Draft posted on city website March 21st • Allows for any residents to opt-out and choose their own supplier Plan of Operation and Governance
- 7. 7 1. Purpose of Electricity Aggregation Program and Services 2. Bidding/Contract Procedures 3. Determination of Rates and Other Charges 4. Contents of the Bid 5. Determination of Eligible Customer Pool 6. Opt-Out Process 7. Customer Classes Included 8. Billing Procedures 9. Credit/Deposit Requirements 10. Procedures for Handling Customer Complaints and Dispute Resolution 11. Moving Into the City 12. Moving Within the City and Maintaining the Same Account Number 13. Joining the Aggregation Group after Opting-Out 14. Reliability of Power Supply 15. Supplier Qualification Process 16. Miscellaneous Plan Table of Contents
- 8. 8 • Goal - reduce cost for electric supply and gain favorable terms • City can accept or reject any bid • ComEd continues to deliver electricity • All rates, charges and terms will be disclosed at start of program • Opt out process • Rescission period Plan Overview
- 9. 9 • Plan specifies energy mix and contract term • Staff recommends prices requested for several energy supply mixes: – Lowest Price Mix – 75% Renewable – REC supported mix – 100% Renewable – REC supported mix • Staff recommends prices requested for 12 and 24-month terms Energy Supply Mix and Term
- 10. 10 • Moving – Retain electric service under same rate if moving within the City – Option to join program if moving into the city, same rate not guaranteed • Early Termination fee – None if relocate outside the City – None if switching back to ComEd – City to negotiate on early termination fee if member switches to another ARES Plan Rates and Fees
- 11. 11 • Agreement with ARES will terminate at end of the term or if one party terminates early • At the termination of the contract, options include: – City to conduct competitive process to select ARES for another fixed term OR – City to end aggregation program • Members to go back to ComEd or choose another supplier Supply Agreement Termination
- 12. 12 Members of the public are welcome to make comments on the Plan of Operation and Governance. Public Feedback
- 14. 14 Indicative Pricing Results Energy Mix Contract Term 12 month 24 month 36 month Average Price $ per kWh IL RPS Compliant (6%) $0.04410 $ 0.04711 $0.05297 75% Renewable Energy $0.04514 $ 0.04831 $0.05433 100% Renewable Energy $0.04549 $ 0.04870 $0.05477 Summary of Average Prices
- 15. 15 Indicative Pricing Results Contract Term Option % Difference 12 to 24 month 7% 12 to 36 month 20% Summary of Average Price Differential: Price Terms
- 16. 16 Indicative Pricing Results Summary of Average Price Differential: Energy Mix Renewable Energy Option % Difference from IL RPS Compliant (7%) 25% 0.80% 50% 1.64% 75% 2.49% 100% 3.31%
Editor's Notes
- Good evening everyone. My name is Catherine Hurley and I am the Sustainable Programs Coordinator for the City of Evanston. Tonight we will be having a public hearing on the Plan of Operation and Governance for an Electricity Aggregation program in Evanston.
- First, a brief introduction on Electricity Aggregation. In 1997 the State of Illinois enacted the “Consumer Choice Act” which implements their plan to de-regulate the energy industry in Illinois. Delivery of power is still provided by ComEd, but customers can choose their electricity supplier. The Illinois Commerce Commission (ICC) regulates the alternate suppliers, which there are currently 23 in Illinois. ComEd purchases electricity for those customers who do not select an alternate supplier. In 2009, the Illinois Power Agency Act was passed which allows municipalities the option to bundle together or aggregate residential and small commercial retail electric accounts. Referred to as “Community Choice Electricity Aggregation” the goal of these efforts is to secure lower energy rates for the residential and small commercial accounts, most of which have not yet taken advantage of Consumer Choice.
- This slide outlines the general process required for a community to implement a Community Choice Electricity Aggregation program. First, the voters of Evanston are presented with a binding referendum question asking whether they grant the municipality the authority to solicit competitive proposals for electricity. The binding referendum must pass by a simple majority in the March General Primary election on March 20th. On March 20th, the voters of Evanston passed the referendum by 73%. The next step is a competitive proposal process to select an alternate retail electric supplier. If the City finds one or more proposals to meet their criteria, then the City would select one supplier to enter into a contract to supply electricity for residential and small commercial accounts. If no proposals meet the city’s criteria, then the city can reject all bids and can stop the process. If a proposal is favorable, then city would select a supplier, contract duration and price for electricity. After this price and contract duration is published, all customers have the option to opt-out of the aggregation program. Customers that do not opt-out will start to receive their energy supply from the new supplier. Based on a hypothetical schedule if the process makes it thru each decision point, the supply from the new supplier would start sometime over the summer.
- This slide is intended to provide a little more information about the competitive selection process. The City has already been working on the pre-qualification phase and presented this information to City Council at the March 26th meeting. The next step is to develop a plan of operation and governance and establish criteria by which City Council will evaluate and select the bids. Tonight is the first of a total of 3 public hearings on the Plan. The Plan of Operation and Governance will be presented to City Council on April 10th for their approval. Then the City will move forward with requesting proposals for firm bids and selecting a supplier.
- The Illinois Power Agency Act – 096-0176 requires that the municipality hold at least 2 public hearings on the plan of operation and governance to obtain public comment. In accordance with the Act, the hearings were published in the local paper. Three hearings are scheduled. The one tonight plus one tomorrow night at the Levy Center and one next Monday night at the Civic Center.
- The Plan of Operation and Governance is required for electric aggregation under the Illinois Power Agency Act. The draft plan was developed