(A) Pursuant to the state’s Power Agency Act (“Act”), 20 ILCS 3855/1-92, the village is authorized to aggregate the electric loads of small commercial and retail customers located within its municipal boundaries (herein referred to as “municipal aggregation”). As part of the municipal aggregation, the village may select a retail electric supplier, and enter into an agreement to facilitate the purchase of electricity and related services and equipment on behalf of the village’s residents and small businesses.
(B) Additionally, the Act also states: “The corporate authorities or county board may also exercise such authority jointly with any other municipality or county. Two or more municipalities or counties, or a combination of both, may initiate a process jointly to authorize aggregation by a majority vote of each particular municipality or county as required by this section.”
(C) The village does intend to jointly exercise its authority with other communities located within the county; however, the village is not bound to operate its aggregation program in a joint fashion on a permanent basis.
(D) The village seeks to collectively aggregate the retail electric loads of eligible residents and small commercial retail accounts and to solicit bids for the purchase of that electricity. The village intends to solicit bids seeking various pricing options, contract terms, and options for increased volumes of renewable energy. Residential and small commercial retail customers often lack the resources to conduct due diligence and negotiate favorable terms with alternate retail electric suppliers on their own. With its large quantity of eligible electric accounts, the village has the potential to attract lower rates than the current default tariff service rate, while also acquiring a cleaner power supply.
(E) In accordance with the Act, the village passed Ord. 12-02 dated August 13, 2012, authorizing a referendum in the community on the November 6, 2012, ballot which asks the public for authority to create an Opt-Out Aggregation Program (“Program”) for its residents and small business customers. A copy of the ordinance and Clerk’s certification is included in Attachment “A” to this Plan of Governance and Operation.
(F) The village’s voters approved the Municipal Aggregation Referendum at the November 6, 2012 primary election (a record of the vote in included in Attachment “B” to the ordinance codified herein). Following the referendum, the village retained the services of a consultant to assist with planning and implementing the program, bidding and selecting the electricity supplier, and advising the village on public outreach and education related to municipal aggregation.
(G) The village conducted a public outreach campaign to educate village residents and small businesses about the Program, and to gather input regarding their preferences for the development of this Aggregation Plan of Operation and Governance. Outreach efforts included public meetings, two statutorily required public hearings, press releases, news articles in local and regional media, and the discussions with organizations and residents with a background in energy matters.
(H) The village will not buy or resell power, but will select through a competitive process, and negotiate a contract with a competent and licensed alternative retail electric supplier (ARES) to provide electric supply at contracted rates to all members of the Aggregation Program. The ARES shall provide accurate and understandable pricing and facilitate opt-out notifications. The ARES will also perform ancillary services for the aggregation members as described in this Plan.
(I) Because the village adopted an opt-out aggregation program, all eligible customers located within the village will participate in the Program unless they affirmatively elect to opt-out of the Program. By identifying the procedures by which customers may opt-out of the Program, the village ensures that participation is voluntary and individuals have the ability to decline to participate. As required by law, this Plan of Operation and Governance describes the village’s plan for:
(1) Providing universal access to all applicable residential customers and equitable treatment of applicable residential customers;
(2) Providing demand management and energy efficiency services to each class of customers; and
(3) Meeting any other legal requirements concerning aggregated electric service.
(J) The village and the consultant, and the selected ARES will follow the Plan of Operation and Governance set forth in this document. Amendments to this Plan of Operation and Governance may be adopted in accordance with the Act at the option of the village.
(Ord. 13-02, passed 2-19-2013)