HomeMy WebLinkAbout079-R-1710/11/2017
79-R-17
A RESOLUTION
Amending the Plan of Operation and Governance for the
City of Evanston Electricity Aggregation Program
WHEREAS, pursuant Section 1-92 of the Illinois Power Agency Act, 20
ILCS 3855/1-92 ("Act"), to facilitate competitive retail electric service to promote electric
savings, lower cost of electric supplies, and other benefits, certain governmental entities
may aggregate certain electric consumers within the jurisdiction; and
WHEREAS, on March 20, 2012, the electors of the City of Evanston
approved the City's plan to create a program for the municipal aggregation of electricity
("Electricity Aggregation Program"); and
WHEREAS, as required under the Act, the City adopted an Electricity
Aggregation Plan of Operation and Governance on April 10, 2012 by Resolution 24-R-
12 (the "Plan") to implement its Municipal Aggregation Program and amended the Plan
by Resolution 16-R-13 on March 11, 2013; and
WHEREAS, the Plan currently provides that new residents and
businesses are not automatically enrolled in the Electricity Aggregation Program and
the City seeks to amend the Plan to allow that new residents and businesses will be
periodically enrolled into the program unless they opt out; and
WHEREAS, the City Council has determined that amending the Plan as
provided in this Resolution and the attached City of Evanston Electricity Municipal
Aggregation Plan of Operation and Governance (the "Amended Plan") would be in the
best interests of the City and its residents,
79-R-17
NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS, THAT:
a part hereof.
SECTION 1: The foregoing recitals are found as fact and made
SECTION 2: The City Council hereby adopts the amended City of
Evanston's Plan of Operation and Governance, attached hereto and incorporated herein
by reference as Exhibit "A", for the implementation and administration of the City's
Electricity Aggregation Program in accordance with the Act.
SECTION 3: This Resolution 79-R-17 shall be in full force and effect from
and after its passage and approval in the manner provided by law.
Attest -
Devon Reid, City Clerk
Adopted: �,JOv �� , 2017
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79-R-17
EXHIBIT A
Amended Plan of Operation and Governance
City of Evanston
Electricity Aggregation Program
City of
Evanstom
Plan of Operation and Governance
April 5, 2012
Approved by Evanston City Council April 10, 2012
Revised February 27, 2013 and November 13, 2017
1. Purpose of Electricity Aggregation Program & Services
This Plan of Operation and Governance (the "Plan") has been developed in compliance
with the Illinois Power Agency Act, 20 ILCS 3855/1-92 regarding aggregation of
electrical load by municipalities. The statute defines two types of aggregation programs
that may be enacted by a governmental entity; opt -in aggregation and opt -out
aggregation. The City of Evanston ("City") will administer an opt -out aggregation
program (the "Program"). Under this Program, the City will aggregate the electric loads
of residential and small commercial retail customers located within the City and then
solicit proposals, select an Alternative Retail Electric Supplier ("Supplier") and enter into
a service agreement to facilitate the purchase of electricity and related service on behalf
of its residents and small businesses. Customers will be given prior written notice
entitling them to affirmatively elect not to be part of the Program (the "Opt out Notice").
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On November 29, 2011, the City adopted Ordinance 103-0-11, to place the issue of
Opt -Out Governmental Aggregation of Electricity on the March 20, 2012 election ballot.
The registered voters of the City subsequently passed the ballot measure on March 20,
2012. The City will follow the Plan of Operation and Governance ("Plan") outlined
below. This Plan was presented to the Evanston City Council for introduction and
action on April 10, 2012 after two public hearings are held in accordance with 20 ILCS
3855/1-92 and the City Council adopted said Plan on April 10, 2012. The Evanston City
Council adopted revisions to the Plan on March 11, 2013 and on November 13, 2017.
The City's Program seeks to aggregate the retail electric loads of eligible residential and
small commercial retail accounts located within the City to negotiate the most favorable
rates for the generation of supply of electric power. The City's program will solicit
proposals for both a lowest rate alternative as well as an alternative for a cleaner,
greener supply of electric power that would at a minimum meet the city's goal of
reducing greenhouse gas emissions as set forth in the Evanston Climate Action Plan.
With a City population of approximately 74,000, the Program has the potential to
combine residential accounts and small commercial accounts into a buying group that
will be attractive to a Supplier. Participation in the Program is voluntary. Any individual
customer ("Member") has the opportunity to decline to be a Member of the Program and
remain with the local utility ("ComEd") standard offer of service or to enter into a power
supply contract with any other Alternative Retail Electric Supplier.
Residential and small commercial retail electric customers often lack the ability to
effectively negotiate electric supply services. The City's Program provides them an
opportunity to benefit from professional representation and bargaining power achieved
through an aggregation program.
The Program is designed to reduce the amount Members pay for electric energy supply
and to gain other favorable terms of service. The City will not buy and resell the power
to the Program Members. Instead, the City will competitively seek proposals and
negotiate a contract with a Supplier to provide firm, full -requirements generation service
to the Members of the Program. Individual members of the program will enter into an
electric purchase and sale contract with the selected Supplier. The City is not a party to
the contract and is not responsible for performance of the contract beyond negotiating
the safeguards in the contract.
As required by the Act, this Plan of Operation and Governance describes:
1. How the Aggregation Program will provide for universal access to all applicable
residential customers and equitable treatment of applicable residential
customers;
2. How demand management and energy efficiency services will be provided to
each class of customers; and
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3. How the Aggregation will meet any other legal requirements concerning
aggregated electric service.
The City and the selected Supplier will follow the Plan set forth in this document.
2. Proposal / Contract Procedures
Following the adoption of this Plan, the City will conduct a proposal process in
compliance with the City Code. The City will retain the full and absolute right to accept,
accept with conditions, or reject any proposals. If this process does not result in the
identification of an acceptable supplier, the City will conclude the proposal process and
not proceed with the Program at that time. The proposal process will include a
qualifications phase and a firm pricing phase. Suppliers which are found to be
responsive and qualified will be invited to submit actionable pricing proposal following
completion and adoption of this Plan. Requirements for company qualifications are
outlined in Section 15.
By majority vote of the Corporate Authorities of the City, the City may select an
Alternative Retail Electric Supplier to provide electric power through the Program
according to the terms of a written Master Agreement to Provide Services to an
Aggregated Group ("Agreement") entered into by and between the Supplier and the
City. By majority vote of the Corporate Authorities, the City may determine not to enter
into an Agreement with any Supplier and in such event eligible customers shall continue
to purchase electric power through ComEd. If the Corporate Authorities enter into an
Agreement with a Supplier, ComEd will continue to provide and service delivery of the
electricity purchased from the Supplier, and metering, repairs and emergency service
will continue to be provided by ComEd.
The Program may be terminated upon the termination or expiration of the Agreement
without any extension, renewal, or subsequent Agreement being negotiated. Each
individual Member receiving electric supply service under the Program will receive
notification 45-90 days prior to termination of the Program. At the end of the agreement
term, the City will consult the Supplier regarding the next course of action, which will be
one of the following: 1) switch the Members back to ComEd, 2) switch the Members to a
different Supplier or 3) enter into a new Agreement with the City to continue the
Program.
3. Determination of Rates and Other Charges
3.1 Rates
The City will solicit proposals from Alternative Retail Electric Suppliers ("ARES")
certified by the Illinois Commerce Commission to provide electricity to aggregation
programs. The proposal documents shall require the suppliers to offer a generation
charge for firm, full -requirements supply. The Members will be charged the price
determined to be the most favorable based on term and energy mix selected.
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Members will be notified of the rates and terms of the Program through a direct
mailing sent to each eligible resident and business within the City limits.
3.2 Charges
Neither the City nor the selected Supplier will impose any terms, conditions, fees, or
charges on any Member served by the Program unless the particular term,
condition, fee, or charge is clearly disclosed to the Member at the time the Members
chose stay in the Program and did not elect to opt out.
ComEd will continue to bill for Late Payments, Delivery Charges and Monthly
Service Fees, and any other typical fees. These charges apply whether or not a
Member switches to the Program's Supplier. Switching generation suppliers will not
result in any new charges billed to the Member.
3.3 Switching Fees
Should ComEd assess a switching fee for Members voluntarily remaining in the
aggregation program; the terms and conditions will be written to require the selected
Supplier shall pay the switching fee without assessing the fee to the Members.
3.4 Early Termination Fee
Members may terminate their agreement without penalty if they relocate outside of
the City or if they decide to go back to ComEd for their energy supply. Members that
leave the Program for other reasons, such as switching to another Supplier may be
assessed an early termination fee by the Supplier. The City will negotiate with the
Supplier to ensure that any early termination fee assessed against the Members is
reasonable and clearly stated in the electric purchase and sale terms and conditions
sent to the Members with the Opt -out Notice.
4. Contents of the Proposal
Suppliers which are found to be responsive and qualified will be formally invited to
submit actionable pricing and will be sent a formal request for proposals. Key items to
be included in the proposal include the following:
4.1 Term of Agreement:
Proposals by prospective suppliers shall provide pricing for terms between 12 to 36
months in duration. The City will select the duration which offers the City the most
protection against future increases in energy prices.
4.2 Power Mix:
Proposers will quote rates for the following energy mixes:
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a. Lowest Price Mix — The lowest priced electricity supply available from an
ARES using, at a minimum, renewable energy consistent with the Illinois
Renewable Portfolio Standard ("IRPS") required by law.
b. Renewable Energy - REC Supported Mix. —Electricity with a percentage of the
energy used by the aggregated accounts will be offset by Renewable Energy
Credits ("REC"). RECs shall be Green-e certified.
c. Renewable Energy -Non REC Supported Mix. Electricity where a percentage
of the energy used by the aggregated accounts will come from renewable energy
that is not REC based. Renewable energy may come from a power purchase
agreement ("Power Purchase Agreement"), distributed generation or any other
such sources as long as the electricity is created through a renewable source.
4.3 Rates:
The documents shall require the ARES to provide the rate information in the
following format:
Energy Mix Options
Rate Period Best Rate — REC
IRPS Supported
12 month or 36 25% to 100%
month term Rec
Supported
The City's intent in soliciting the proposals is to provide residents with delivered
electricity prices that are always less than ComEd's applicable rates. The City is
also interested in selecting a renewable energy option in a cost effective way.
5. Determination of Eligible Customer Pool
Under the opt -out aggregation provisions, all eligible electric consumers within the City
will be automatically included in the Program. However, such customers will be given
prior notice entitling them to affirmatively elect not to be part of the Program.
Prior to mailing opt -out notices, a thorough review will be performed to see that all
ineligible customers are excluded. The review process will include the efforts of
numerous parties and utilize a number of resources:
• ComEd will query their customer database using best efforts to capture all
accounts within the City limits.
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• The Supplier, with assistance from the City, using available City resources and
publicly available material shall screen out customers who are not located within
the City limits. Those resources may include any or all of the following: property
records, water and/or sewer records, fire and/or police department address
records, 911 address records, street listings, City maps, internet maps, county
parcel mapping databases, and geographical information systems (GIS).
• Ineligible accounts will be screened out based on codes provided in the ComEd
data.
• The data shall be reviewed to see that all zip codes have been included, all
streets included, all customer classes, all customer rate schedules, and finally
that an expected total for a community of this population was turned over.
• Any suspected omissions will be reported to ComEd along with a request to
furnish that data.
6. Opt -Out Process
The City is using an Opt -Out form of Governmental Aggregation under the Act. Any
such person that opts -out of the aggregation program pursuant to stated procedure will
default to the standard service offer provided by ComEd until the person chooses an
alternative supplier.
When a successful supply offer is found, the City shall order the eligible customer list
from ComEd. ComEd shall turn over the list to the City upon request within a
reasonable time period. Once the City obtains the list, it will be shared with the selected
Supplier and they will have thirty (30) days from the City's receipt of the data to mail the
Opt -out Notices to all eligible Members receiving an offer.
The selected Supplier will be required to pay for printing and mailing of Opt -out Notices.
The notices will be mailed to the owner or occupant residing at the electric account
mailing address shown on ComEd's customer list. The selected Supplier and the City
will agree upon the format and content of the Opt -out Notice prior to mailing the notice
to eligible Members. A City official will sign the notice and it will contain the City's name
and logo on the outside of the envelope to clearly indicate to the recipient that it is a
notice from the City. The City will review and approve any additional attachments to be
included in the opt -out notices.
Prior to mailing the Opt -out Notices, a thorough review will be performed of the
customer list to ensure that all eligible Members receive the Opt -out notice. The review
process will include the efforts of numerous parties and utilize a number of resources as
specified in Section 5 of this Plan.
Following acceptance of an offer by the City, the Supplier will mail the Opt -out Notices
to eligible Members receiving an offer. Members will have at least twenty-one (21) days
from the postmark date on the notice to postmark the return opt -out card if they do not
wish to participate in the City's program. The Supplier shall offer at least 2 additional
means of opting out, such as, a toll -free phone number, website, or email address. The
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selected Supplier will not enroll the accounts which affirmatively opted out of the
Program.
In the event that an eligible Member is inadvertently omitted from the Program, the
Supplier shall, upon request, enroll the eligible Member at the group rate for the
remaining term.
All members of the Program will also be given an opportunity to opt -out without penalty
at least once every three (3) years.
Procedure Steps:
a. The selected Supplier and the City will agree upon the format of the Opt -out
Notice and other documents to be included in the mailing prior to mailing it to eligible
Members.
b. The selected Supplier will distribute an Opt -Out Form to all eligible Members via
first-class U.S. Mail.
c. Recipients will have at least twenty-one (21) days from the postmark on the Opt -
out Notice to notify the selected Supplier if they do not want to be part of the
Program.
d. Members will be able to opt -out by returning an opt -out card via U.S. Mail to the
selected Supplier. The Supplier shall offer at least two additional means of opting
out, such as a toll -free phone number, website, email address, or fax number.
e. The opt -out notice will clearly notify the Program Members of the rates to be
charged for electricity and other terms of the contract with the selected supplier.
f. The selected Supplier will not enroll those accounts opting out from the Program.
g. Additionally, Members who do not opt -out under step d above will receive written
notification from ComEd stating that they are about to be switched to the new
Supplier. The ComEd notice will inform the Member that they have seven (7) days
to rescind the contract by contacting ComEd.
7. Customer Classes Included
The Program provides for universal access and equitable treatment of all eligible
customers. Utility rules approved by the Illinois Commerce Commission ("ICC") or other
regulatory agencies may limit eligibility to enroll in the aggregation program.
The following eligibility requirements apply:
• Customers must not have opted -out of the Program
• Customers must not be supplied generation service from another supplier
• Commercial customers must have a Peak Demand of <= 100kW
• Residential customers must live within the City limits
• Customers must not be an "hourly rate" ComEd customer
• Customers must not be on ComEd's "bundled hold"
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Customers receiving power from ComEd under particular tariffs as they may be
approved and/or amended by the Illinois Commerce Commission from time to time may
not be eligible to enroll in the aggregation program.
While providing for universal access to all eligible customers, specific savings for each
such customer may depend upon the load usage patterns of that customer. Thus, a
Supplier's offer may not provide to all Members equal economic savings opportunity as
compared to ComEd's prevailing rate
8. Billing Procedures
The Program will utilize the coordinated billing services of ComEd and the selected
Supplier. Customers will receive a single bill from ComEd that itemizes among other
things, the cost of generation provided by the Supplier.
Members are required to remit and comply with the payment terms of ComEd. The City
will not be responsible for late or no payment on the part of any of the Members.
Furthermore, slow or no payment on the part of some Members will not adversely
impact the rates charged to other Members.
9. Credit / Deposit Requirements
Collection and credit procedures remain the responsibility of ComEd, the selected
Supplier, and the individual Member. Members are required to remit and comply with
the payment terms of ComEd and/or the Supplier. This Program will not be responsible
for late or no payment on the part of any of its Members. The City will have no separate
credit or deposit policy.
10. Procedures for Handling Customer Complaints and Dispute Resolution
Members have multiple means of addressing complaints. As a general rule, concerns
regarding service reliability should be directed to ComEd, billing questions should be
directed to ComEd or the selected Supplier, and any unresolved disputes should be
directed to the ICC.
11. Moving Into the City
Residents and businesses that move into the City will be periodically included in the
City's Program. The Supplier will mail Opt -out Notices to eligible new members
receiving an offer. New members will have at least twenty-one (21) days from the
postmark date on the notice to postmark the return opt -out card if they do not wish to
participate in the City's program. The Supplier shall offer at least two (2) additional
means of opting out, such as, a toll -free phone number, website or email address. The
selected Supplier will not enroll the accounts which affirmatively opted out of the
Program. New members will receive the same price as the initial participants.
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12. Moving Within the City and Maintaining the Same Account Number
The selected Supplier shall continue service at the same rate and under the same terms
and conditions for any Member who relocates within the City prior to the expiration of
the contract term, providing that the Member notifies the Supplier of their desire to do so
with thirty (30) days notice. Moving within the City may cause the Member to be served
for a brief period of time by ComEd. The Supplier shall have the right to bill the
participant for any associated switching fee imposed by ComEd. Members may also
opt -out without penalty under these circumstances.
13.Joining the Aggregation Group after Opting -Out
Members who have left the aggregation group and wish to rejoin at a later date are
treated in the same manner as new residents moving into the City. These customers
may contact the Supplier at any time to obtain enrollment information. There is,
however, no guarantee that customers opting -in at a later date will receive the same
price as did the initial participants.
14.Joining the Aggregation Group after ending an agreement with another
Supplier
Residents and businesses that were under contract with a Supplier at the start of the
Program were not initially eligible for the program. However, they can join the program
at a later date once their contract with their current Supplier has ended. These
customers may contact the Supplier at any time during the Term of the program to
obtain enrollment information. There is, however, no guarantee that customers opting -
in at a later date will receive the same price as did the initial participants.
15. Reliability of Power Supply
The Program will only affect the generation source of power. ComEd will continue to
deliver power through their transmission and distribution systems. Responsibility for
maintaining system reliability continues to rest with ComEd. If members have service
reliability problems, they should contact ComEd for repairs. The ICC has established
"Minimum Reliability Standards" for all utilities operating distribution systems in Illinois.
Customer outages, duration of outages, interruptions, etc., are monitored to ensure
reliability remains at satisfactory levels.
In addition to maintaining the "wires" system, ComEd is required to be the "Provider of
Last Resort." This means, should the selected Supplier fail for any reason to deliver
any or all of the electricity needed to serve the Members needs, ComEd will
immediately provide for the shortfall. ComEd would then bill the Supplier for the power
provided on their behalf. The Supplier cannot pass on the additional costs incurred to
the Members from charges by ComEd from performing services and supply as a last
resort.
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16. Supplier Qualification Process
The City will conduct a qualifications process to identify Suppliers which are qualified to
provide electric power to the Program. Only Suppliers meeting strict criteria and
providing complete responses to the request for qualifications will be considered for the
firm pricing process. A summary of key qualifications criteria is provided below:
• Certified by the Illinois Commerce Commission.
• Registered with ComEd to do business in their service territory. Both the
certification and registration ensure that Suppliers possess the managerial,
technical, and financial competence to perform the services they offer.
• Agree to sign the Master Service Agreement with the City as provided in the
request for qualifications documentation.
• Demonstrate creditworthiness by possessing an investment grade long-term
bond rating from a major rating agency.
• Submit a complete response to the request for qualifications including the
submission of references, completed certification forms litigation history, detailed
scope of work, and company history and experience.
Pursuant to 20 ILCS 3855J1-92, Supplier shall:
• Provide for universal access to all applicable residential customers and equitable
treatment of applicable residential customers.
• Describe demand management and energy efficiency services to be provided to
each class of customers.
• Meet any requirements established by law concerning aggregated service
offered pursuant to the 20 ILCS 3855/1-92.
The following factors will be evaluated for each Supplier that submits a proposal:
• The qualifications of the Supplier to conduct a municipal aggregation based on
references, past experience, financial information and litigation information.
• Rate and power mix.
• Willingness of Supplier to execute the proposed Master Agreement to Provide
Services to an Aggregated Group
• Completeness of Proposal.
• Proposed aggregation implementation plan.
• Quality of customer service procedures and resources.
Suppliers which are found to be responsive and qualified will be notified as such and will
be formally invited to submit firm pricing following the adoption of this Plan.
17. Miscellaneous
The operation of the City's Program may be impacted by any of the following:
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• Amendments to the Act
• Federal Energy Regulatory Commission (FERC) tariffs that may be enacted or
amended from time to time.
• Illinois Commerce Commission (ICC) rules and regulation as may be enacted or
amended from time to time.
• ComEd tariffs as approved or amended from time to time by the ICC.
• Federal, state, and local laws.
• Rules, regulations, and orders approved or enacted by federal, state, or local
regulatory agencies.
The City will maintain a copy of this Plan of Operation and Governance on file at its
administrative office. This Plan will be kept available for public inspection. It will, upon
request, be copied for any existing or potential Member of the aggregation in
accordance with the City rules for copying public documents.
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