HomeMy WebLinkAboutOrd 6010 05/15/2012 Authorizing Electric Aggregation Plan of Operation and GovernanceORDINANCE NO. 6010
AN ORDINANCE AUTHORIZING
AGGREGATION OF ELECTRICAL LOAD AND ADOPTING AN
ELECTRIC AGGREGATION PLAN OF OPERATION AND GOVERNANCE
Passed and approved
by the President and Board of Trustees
the 15 day of May, 2012
Published in pamphlet form
by authority of the corporate authorities
of the Village of Mount Prospect, Illinois,
the 16 day of May, 2012.
ORDINANCE NO. 6010
AN ORDINANCE AUTHORIZING
AGGREGATION OF ELECTRICAL LOAD AND ADOPTING AN
ELECTRIC AGGREGATION PLAN OF OPERATION AND GOVERNANCE
WHEREAS, Section 1 -92 of the Illinois Power Agency Act, 20 ILCS 3855/1 -92, entitled
"Aggregation of Electrical Load by Municipalities and Counties" (the "Act "), authorizes the
Village of Mount Prospect (the "Village ") to adopt and operate an electrical aggregation program
as an opt -out program for residential and small commercial retail customers, if a referendum is
passed by a majority vote of the residents pursuant to the requirements of the Act; and
WHEREAS, the Village submitted the question in a referendum on March 20, 2012, and a
majority of the electors voting on the question voted in the affirmative; and
WHEREAS, the Village President and Board of Trustees hereby find that it is in the best interest
of the Village to operate an electric aggregation program (the "Electric Aggregation Program ")
under the Act as an opt -out program and to implement the Program according to the terms of the
Act; and
WHEREAS, the Act requires that prior to the implementation of an opt -out electrical aggregation
program by the Village, the Village must adopt an electrical power aggregation plan of operation
and governance (the "Plan of Governance ") and hold not less than two (2) public hearings; and
WHEREAS, the Village held the required public hearings on May 8, 2012 and May 9, 2012 after
providing the required public notice.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS,
ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS:
SECTION ONE The Village President and Board of Trustees find that the recitals set forth
above are true and correct.
SECTION TWO The Village President and Board of Trustees find and determine that it is in
the best interests of the Village to operate the Electric Aggregation Program under the Act as an
opt -out program.
SECTION THREE The Electric Aggregation Program shall be administered as follows:
A. The Village is hereby authorized to aggregate, in accordance with the terms of the
Act, all residential and small commercial retail electrical loads located within the corporate limits
of the Village, and for that purpose may solicit bids and enter into service agreements to
facilitate the sale and purchase of electricity and related services and equipment for those loads.
B. The Village President and Board of Trustees are granted the authority to exercise
such authority jointly with any other municipality or county and, in combination with two or
more municipalities or counties, may initiate a process jointly to authorize aggregation by a
majority vote of each particular municipality or county as required by the Act.
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C. The Electric Aggregation Program for the Village shall operate as an opt -out
program for residential and small commercial retail customers.
D. The Village President and Board of Trustees with the assistance of the Illinois
Power Agency shall develop a Plan of Governance for the Electric Aggregation Program. The
Plan of Governance shall provide for universal access to all applicable residential customers and
equitable treatment of applicable residential customers, shall describe demand management and
energy efficiency services to be provided to each class of customers and shall meet any
requirements established by law concerning aggregated service offered pursuant to the Act.
E. As an opt -out program, the Village President and Board of Trustees shall inform
residential and small commercial retail customers in advance that they have the right to opt -out
of the Electric Aggregation Program.
F. The electric aggregation shall occur automatically for each person owning,
occupying, controlling, or using an electrical load center proposed to be aggregated in the
corporate limits of the Village, subject to a right to opt -out of the program as described under this
ordinance and the Act.
SECTION FOUR The Village President and Board of Trustees hereby adopt the Plan
of Governance, as set forth in Exhibit "A" attached hereto and made a part hereof as if fully set
forth by this reference.
SECTION FIVE This ordinance shall be in full force and effect after its passage, approval
and publication in pamphlet form as provided by law.
AYES: Hoefert, Korn, Matuszak, Polit, Zadel
NAYS: None
ABSENT: Juracek
PASSED and APPROVED this 15 day of May, 2012.
ATTEST:
Village Clerk
Mayor
2869371 2
Village
Mount Prospect
Electricity Aggregation:
Plan of Operation &Governance
May 15, 2012
H: \VILM \COMEDWggregation \Plan of Governance.dou
TABLE OF CONTENTS
I. HISTORY AND PURPOSE OF MUNICIPAL AGGREGATION ............... ............................... 1
II. DEFINITIONS .......................................................................................... ............................... 2
III. ROLE OF THE VILLAGE ....................................................................... ............................... 6
IV. ROLE OF THE AGGREGATION CONSULTANT ................................. ............................... 7
V. SUPPLIER SELECTION ........................................................................... ..............................8
VI. AGGREGATION PROGRAM AGREEMENT ....................................... ............................... 12
VII. IMPLEMENTATION PROCEDURES .................................................. ............................... 15
VIII. ADDITIONAL SERVICE TERMS AND CONDITIONS ....................... ............................... 19
IX. INFORMATION AND COMPLAINT NUMBERS .................................. ............................... 21
• Attachment A: VILLAGE of Mount Prospect Ordinance and Clerk's Certification
• Attachment B: VILLAGE of Mount Prospect Referendum Voting Results
I. HISTORY AND PURPOSE OF MUNICIPAL AGGREGATION
Pursuant to the Illinois Power Agency Act ( "Act "), 20 ILCS 3855/1 -92, the VILLAGE of
MOUNT PROSPECT ( "VILLAGE" or "The VILLAGE ") is authorized to aggregate the
electric loads of for residents and small commercial retail accounts 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.
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.
The VILLAGE may join with other municipal bidders to exercise its authority depending
on pricing responses to obtain the most favorable rate. If such a joint pricing option is
deemed advantageous to the pricing for residents the joint pricing option may be
considered as part of the acceptable of the electrical pricing bid.
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.
In accordance with the Act, the VILLAGE passed Ordinance #5886 dated the 6 day of
December, 2011 authorizing a referendum in the community on the March 20, 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 Operation and
Governance.
The VILLAGE's voters approved the Municipal Aggregation Referendum at the March
20, 2012 primary election (a record of the vote in included in Attachment B to this
document). 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.
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Mount Prospect Electric Aggregation Plan of Governance
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 (2) statutorily required
public hearings, press releases, news articles in local and regional media and
discussions with organizations and residents with a background in energy matters.
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 AIRES shall provide accurate and understandable pricing
and facilitate opt -out notifications. The AIRES will also perform ancillary services for the
Aggregation Members as described in this Plan.
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.
The VILLAGE and the Consultant, and the selected AIRES 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.
II. DEFINITIONS
In order to clarify certain terminology, the following terms shall have the meanings set
forth below:
"Act" shall refer to the Illinois Power Agency Act as set forth at 20 ILCS 3855/1 -92 et
seq.
"Aggregation" or "Municipal Aggregation" shall mean the pooling of residential and
small commercial retail electrical loads located within the municipality for the purpose of
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Mount Prospect Electric Aggregation Plan of Governance
soliciting bids and entering into service agreements to facilitate for those loads the
purchase of electricity, related services and equipment in accordance with Section 1 -92
of the Act.
"Aggregation Consultant" or "Consultant" shall refer to Northern Illinois Electric
Collaborative (NIMEC), the independent consultant with demonstrated expertise in
electric supply contracting that has been retained by the VILLAGE to assist with the
implementation of each member municipality's Program.
"Aggregation Member" or "Member" shall mean a residential or small commercial
retail electric account enrolled in the VILLAGE's Municipal Aggregation Program.
"Aggregation Program" or "Program" shall mean the program developed by the
VILLAGE of Mount Prospect, as a Municipal Aggregator under the Act, to provide
residential and small commercial customers in the VILLAGE with retail electric supply
as described in this document.
"Aggregation Program Agreement" or
between the VILLAGE and the Supplier
services to Aggregation Members.
"Agreement" shall mean the agreement
whom will supply electricity and related
"Alternative Retail Electric Supplier" or "ARES" shall mean an entity certified by the
Illinois Commerce Commission to offer electric power or energy for sale, lease or in
exchange for other value received to one or more retail customers, or that engages in
the delivery or furnishing of electric power or energy to such retail customers, and shall
include, without limitation, resellers, aggregators and power marketers but shall not
include the Electric Utility or the VILLAGE's Aggregation Members. For purposes of this
document, the definition of Alternative Retail Electric Supplier is more completely set
forth in 220 ILCS 5/16 -102.
"Ancillary Services" shall mean the necessary services that must be provided in the
generation and delivery of electricity. As defined by the Federal Energy Regulatory
Commission, they include: coordination and scheduling services (load following, energy
imbalance service, control of transmission congestion); automatic generation control
(load frequency control and the economic dispatch of plants); contractual agreements
(loss compensation service); and support of system integrity and security (reactive
power, or spinning and operating reserves).
"Bidder" shall mean an Alternative Retail Electric Supplier that responds to a Request
for Proposals from the VILLAGE.
"Commonwealth Edison" or "ComEd" or "Utility" shall mean the Commonwealth
Edison Company, as the entity that has a franchise, license, permit or right to distribute
furnish or sell electricity to retail customers within the VILLAGE.
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Mount Prospect Electric Aggregation Plan of Governance
"Default Tariff Service" or "Default Rate" shall mean the electricity supply services
available to eligible retail customers of the Utility.
"Eligible Retail Customer" shall mean the residential and small commercial retail
customers of the Utility located within the municipal boundaries of the VILLAGE of
Mount Prospect and eligible to participate in the Aggregation.
"Energy Supply Price" shall mean the unit price ($ /kWh) charged by the Supplier to
cover the full costs associated with supplying electricity and related services to the
Members.
"ICC" shall mean the Illinois Commerce Commission as described in 220 ILCS 5/2 -101.
"IPA" shall mean the Illinois Power Agency established by Public Act 95 -0481, (20
ILCS 3855/1 -1 et.seq.);
"Ineligible Retail Customer" shall mean residential and small commercial retail
customers who are not eligible to participate in the Aggregation Program and are not
required to opt out during the Opt -Out Period.
"kWh" shall mean kilowatt -hour, which is the standard unit of measure of electricity
consumed.
"LIHEAP" shall mean the Low Income Home Energy Assistance Program funded either
jointly or singly by the Federal government or the state of Illinois to provide bill payment
assistance program for low- income residential customers.
"Load" shall mean the total demand for electric energy required to serve the
VILLAGE's residential and small commercial members in the Aggregation.
"PJM" shall mean the Regional Transmission Organization PJM Interconnection, a
regional transmission organization (RTO) that coordinates the movement of wholesale
electricity in all or parts of 13 states and the District of Columbia, including the ComEd
region.
"Municipal Aggregator" shall mean the VILLAGE acting as facilitator for the process
of securing competitive retail electric rates for the Aggregation Members pursuant to the
authority conferred by the Act and in accordance with this Aggregation Plan of
Operation and Governance.
"Opt -Out" shall mean the process by which a customer who would be included in the
Aggregation chooses not to participate in the Aggregation and to remain on or return to
ComEd's default tariff service or choose another ARES.
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Mount Prospect Electric Aggregation Plan of Governance
"Opt -Out Notice" or "Notice" shall mean the letter mailed to Eligible Retail Customers
informing them of the prices, terms and conditions of the Program and containing
instructions regarding how to Opt Out of the Program.
"Opt -Out Period" shall mean the time period during which eligible residents and small
commercial retail customers are notified of their eligibility to participate in the
Aggregation Program and provided instructions for opting out or in.
"PIPP" shall mean Percentage of Income Payment Plan (PIPP) created by the
Emergency Assistance Act, 305 ILCS 20 -18 to provide a bill payment assistance
program for low- income residential customers.
"Plan of Operation and Governance" or "Plan" shall mean this Aggregation Plan of
Operation and Governance.
"Qualified Bidder" shall mean a Bidder that meets the minimum criteria set by the first
stage of the VILLAGE's RFP process.
"REC" shall mean duly certified and verified Renewable Energy Credits.
"Request for Proposals" or "RFP" shall mean a formal written invitation to
responsible Bidders to submit qualifications and pricing methods for electricity supply,
services, and equipment to the Aggregation.
"Small Commercial Retail Customer" shall mean those retail customers with an
annual consumption of less than 15,000 kWh per 220 ILCS 5/16 -102, provided,
however, that the definition of Small Commercial Retail Customer will include such other
definition or description as may become required by law or tariff.
"Supplier" shall mean an Alternative Retail Electric Supplier selected by the VILLAGE
to supply electricity and related services to Aggregation Members under an Aggregation
Program Agreement.
"Switching Process" shall mean the process after the Opt -Out Period has expired
when Aggregation Members are switched to the selected Supplier's electric supply.
"VILLAGE" or "The VILLAGE" shall mean the VILLAGE of Mount Prospect, acting
by and through its corporate authorities, and authorized VILLAGE employees.
"VILLAGE Designee" shall mean the person (or persons) empowered by the VILLAGE
though Ordinance to authorize and execute a contract price lock for electricity supply on
behalf of the Village Board.
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III. ROLE OF THE VILLAGE
A. Adopt Ordinances. The VILLAGE shall adopt: (1) an ordinance authorizing
an opt -out electric aggregation program; and (2) this Plan of Operation and
Governance.
B. Provide Notice. The VILLAGE shall be responsible for issuing all required
public notices and conducting all required public hearings concerning this Plan,
and any amendments thereto, in accordance with Section 1 -92 of the Act.
C. Request Data. The VILLAGE with the assistance of the Consultant shall
submit to ComEd, in writing, a warrant demonstrating the passage of the
VILLAGE's municipal aggregation ordinance, the adoption of this Plan by the
corporate authorities, and requesting the identification of retail and small
commercial electric customer account information and generic load profiles.
D. Maintain Confidentiality. The VILLAGE will maintain the account information
it receives in a confidential manner as required by law and will use that
information only for purposes of its Municipal Aggregation. The VILLAGE may
assign access to the account information to the Consultant for the purposes of
soliciting supply and service bids on behalf of the VILLAGE. The Consultant is
bound by confidentiality requirements in this regard, and shall only access and
utilize consumer data at the direction of the VILLAGE alone. Account information
will be considered confidential and will not be disclosed under the Freedom of
Information Act.
E. Review Accounts. The VILLAGE and Consultant will review the account list
to remove ineligible accounts, provided however, that the VILLAGE and
Consultant shall have no responsibility to potential aggregation members or the
ARES for the accuracy of the account information provided.
F. Provide Information. The VILLAGE shall be responsible for providing the
Consultant and ARES with resources and publicly available material to screen
out customers who are not located within the municipal boundaries.
G. Develop Request for Proposal. The VILLAGE and Consultant will develop a
Request for Proposals (RFP) for Electricity Services process in cooperation with
the Aggregation Consultant in accordance with the terms set forth in this
document. The VILLAGE will inform the potential bidders in the RFP document
of the VILLAGE's generic load profile information as provided by ComEd.
H. Evaluate Proposals. The VILLAGE will receive and evaluate proposals and
select any Supplier the VILLAGE finds to be in the best interest of the
VILLAGE's residential and small commercial. The VILLAGE is under no
obligation to enter into any service agreement with any Bidder and may, in its
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Mount Prospect Electric Aggregation Plan of Governance
discretion, choose to reject all bids, or to re -bid the electric service under the
same or amended terms of this Plan.
I. Authorize Notifications. The VILLAGE shall assist the Supplier in drafting
customer notification materials during the switching and opt -out process. The
VILLAGE shall specify the form and content of such materials, and all
communications disseminated by the Supplier to residents and small businesses
during the opt -out process must be approved by the Supplier.
J. Responsibility. The VILLAGE and Consultant, as the facilitators of this
bidding process, are not responsible for providing electricity to the members of
the Aggregation, or for billing or collecting for electricity provided under any
Aggregation Program Agreement, and have no responsibility beyond the duties
described herein. ComEd will continue to provide a single bill to Aggregation
Members for all electrical charges.
K. Cost Reimbursement. The VILLAGE shall implement and offer the
Aggregation Program as a service to its residents and small businesses. The
Program shall be revenue - neutral. Any VILLAGE expenditure related to the
Aggregation Program shall be recouped by the VILLAGE through a per kWh
charge, determined in the Agreement with the Supplier, which shall be collected
by the Supplier and remitted to the VILLAGE. All fees paid or collected by the
VILLAGE in conjunction with the Aggregation Program shall be disclosed to
aggregation members.
L. Energy Efficiency and Demand Response. The VILLAGE and Consultant
shall seek to develop effective energy efficiency and demand response programs
within six (6) months of the commencement of the Aggregation Program. To the
greatest extent possible, the VILLAGE will seek initial input concerning energy
efficiency and demand response programs from unbiased and publicly available
resources such as the Illinois Green Economy Network (IGEN) through the
Illinois Community College network.
IV. ROLE OF THE AGGREGATION CONSULTANT
A. Enter into a Written Contract. The Aggregation Consultant will enter into a
formal written contract with the VILLAGE. The contract will specify terms, duties
and maximum compensation due to the Consultant from the Village.
B. Fulfill Assigned Duties. The Aggregation Consultant shall advise and assist
the VILLAGE with the development and implementation of its Municipal
Aggregation Program, including advising staff and upon request elected officials
(at the request of the VILLAGE) on all aspects of the program; developing all
necessary documents, soliciting and reviewing bids received, making
recommendations as appropriate and monitoring the Supplier's compliance with
the requirements of the Agreement.
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Mount Prospect Electric Aggregation Plan of Governance
C. Maintain Independence and Disclosures. As required by the Electric
Service Customer Choice Act, the Consultant will be in a fiduciary relationship
with the VILLAGE and owes the VILLAGE and its Aggregation Members the
duty of loyalty and independent judgment. The Consultant will be disqualified and
dismissed if it (1) acts directly as the agent for any ARES; (2)does not disclose
any shared revenue arrangement(s) with another party originating from a specific
ARES that has responded to the Village's request for pricing; or, (3) limits the
pool of ARES in a manner that reduces the options of the VILLAGE. It is the duty
of the Consultant to disclose any such relationships and activities and to
terminate the agreement in the event they occur. Breach of these terms will result
in the VILLAGE terminating the Consultant Agreement.
D. Arrange for Fees. The Consultant shall be paid directly by the Supplier. The
VILLAGE may reimburse itself for Consultant expenses through the addition of a
fee to the supply or service contract costs negotiated with suppliers. If the
VILLAGE chooses not to contract with a supplier, the VILLAGE will not be
responsible to pay the Consultant any fee or compensation. The consultant shall
disclose the fee arrangement between the supplier and the consultant based on
the intended rate agreed to by the Village and the consultant.
E. Maintain Confidentiality. The VILLAGE, upon receiving confidential
customer information from ComEd, shall be subject to the limitations on the
disclosure of that information described in Section 2HH of the Consumer Fraud
and Deceptive Practices Act, 815 ILCS 505/2HH. If the Consultant has access to
confidential customer account information at any time, the Consultant agrees not
to use that information for any purposes outside the scope of the services
provided by this Agreement. The Consultant specifically agrees not to use for
itself, or to sell, trade, disseminate or otherwise transfer that information to any
other party for any purpose other than this Aggregation Program. The VILLAGE
will not be liable for any use of confidential information by the Consultant that
violates the law or this agreement. The consultant agrees to indemnify the
Village.
F. Notify and Inform VILLAGE. The Consultant shall advise the VILLAGE on
any changes in laws, rules, tariffs or any other regulatory matter that impacts the
Aggregation during the term of the Service Agreement.
V. SUPPLIER SELECTION
A. Competitive Sourcing. The VILLAGE will select a Supplier for the
Aggregation through a competitive solicitation process. The selection will be
based on the best value to the Aggregation and not simply best price.
B. Bidding Process Structure. The VILLAGE, working in cooperation with the
Consultant, shall develop a Request for Proposals containing the terms and
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conditions required in this Plan of Operation and Governance. The solicitation
process will be conducted in accordance with all applicable state and local laws
and VILLAGE bidding practices and protocols.
C. Local Authority. The corporate authorities of the VILLAGE will retain the full
and absolute right to accept, accept with conditions, or reject any proposal. The
VILLAGE may, but is not required to, select a supplier to provide an electricity
supply for the Aggregation Program according to the terms of this Plan. If the
VILLAGE does not select a Supplier, the VILLAGE will notify the Aggregation
Members that their electricity will continue to be provided through the ComEd
default tariff service.
D. Pricing. Bidders will submit fixed rate bids ($ /kWh) to be charged to provide
full- requirements electricity supply, including capacity, transmission, and ancillary
services to Aggregation Members. The VILLAGE's intent in soliciting the
proposals is to provide residents with delivered electricity prices that are always
less than ComEd's applicable rates.
E. Supply Options. Pricing options for at least the following supply options will
be sought through the solicitation:
1. Standard Community Energy Mix. Electricity supply that includes the
minimum level of renewable energy resources for the entire Aggregation
Portfolio as required by the State of Illinois Renewable Portfolio Standard.
2. Enhanced Community Renewable Energy Mix. Electricity supply that
includes volumes of Renewable Energy Credits (RECs) in excess of the
minimum level of renewable energy resources required for the entire
Aggregation Portfolio by the State of Illinois Renewable Portfolio Standard.
The excess REC volumes are to be sourced from biomass, hydro, wind,
solar photovoltaic, or landfill gas and certified by a reliable authority.
Supplying the elevated number of RECs to the Aggregation will be a
pricing option in the solicitation process. Costs associated with securing
the excess RECs will be applied to all Members if the option is accepted
by the VILLAGE.
3. Enhanced Individual Renewable Energy Mix. Electricity supply that
includes the minimum level of renewable energy resources for the entire
Aggregation Portfolio as required by the State of Illinois Renewable
Portfolio Standard. Excess REC volumes are offered to individual
Members seeking to increase their renewable energy mix for their own
accounts. RECs are to be sourced from biomass, hydro, wind, solar
photovoltaic, or landfill gas and certified by a reliable authority. Supplying
the elevated number of RECs to Members on an individual basis will be a
pricing option in the solicitation process. Costs associated with securing
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the excess RECs will be applied only to those Members that choose to
secure the added RECs at their own option.
The VILLAGE will determine whether any option beyond the Lowest Price
Mix will be accepted.
F. Qualification of Bidders. Bidders must demonstrate that they satisfy each of
the following requirements:
1. State and Utility Certifications and Licenses.
i. A certificate of service authority from the State of Illinois as a
certified retail electric supplier and any and all other licenses or
certifications required by the ICC;
ii. Current registration as a retail electric supplier with ComEd;
iii. Proof of the company's bond posting with the ICC;
iv. Commitment to comply with all applicable laws and regulations
of the State of Illinois.
2. Transmission Agreements. A Service Agreement for Network
Integration Transmission Service under the PJM Open Access
Transmission Tariff;
3. Data Systems.
i. Electronic Data Interchange computer network that is fully
functional at all times and includes back -up file saving systems, and
is capable of handling the ComEd residential and small commercial
retail electric customers in the VILLAGE;
ii. A secure database of Customer Account Information that will
include the ComEd account number, and Supplier account number
of each active Member, and other pertinent information such as
rate code, rider code (if applicable), and usage and demand history.
The database will be updated on an ongoing basis. The data
contained in the database will be held strictly confidential.
Customer Account Information for a minimum of two years following
the termination of the Agreement and may not be re -sold or used
for future marketing purposes. Any breaches in data confidentiality
must be promptly reported to the Village.
4. Corporate Capacity. The internal resources to meet the needs of the
Aggregation Program.
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i. Maintain the necessary corporate structure to sell electricity
supply to the ComEd residential and small commercial retail
customers in VILLAGE;
ii. Proof of company's (or parent company affiliate's) credit rating as
reported in the most recent company annual or quarterly reports.
5. Customer Service — Supplier's Responsibility.
i. The ability to reach all ComEd residential and small commercial
retail customers in the VILLAGE to educate them on the terms of
the Aggregation Program and the Act, ensuring that marketing
materials take into account multiple modes of communication
including but not limited to regular mail using the VILLAGE's
envelopes, email distribution lists, websites, social media and
phone contact;
ii. A local or toll -free telephone access line which will be available
to Aggregation Members 24 hours a day, seven days a week.
Trained company representatives will be available to respond to
customer telephone inquiries during normal business hours. After
normal business hours, the access line may be answered by a
service or an automated response system, including an answering
machine. Inquiries received after normal business hours must be
responded to by a trained company representative on the next
business day. Under normal operating conditions, telephone
answer times by a customer representative, including wait time,
shall not exceed thirty (30) seconds when the connection is made.
If the call needs to be transferred, transfer time shall not exceed
thirty (30) thirty seconds. These standards shall be met no less
than ninety (90) percent of the time under normal operating
conditions, measured on a quarterly basis;
iii. The capacity to deliver customer service for Members requiring
non - English verbal and written assistance;
iv. The capacity to deliver customer service for hearing impaired
Members;
v. Accommodate Member inquiries and complaints about energy
supply and services;
vi. Answer questions regarding the Program in general.
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G. Evaluation of Qualifications. The VILLAGE and Consultant will evaluate
and assign scores to each Bidder based on the following criteria in order to
establish a Qualified Bidder Pool.
1. Financial strength of the Bidder;
2. Quality of the Response to the Aggregation Plan and RPF;
3. Quality of the Opt -Out Plan and Account Enrollment Timeline;
4. Experience as a supplier in the local market;
5. Any other factors deemed to be in the VILLAGE's best interest.
6. Quality of customer services and education program.
H. Award. The VILLAGE will select the Bidder which the VILLAGE determines
to be in the best interests of the VILLAGE. The VILLAGE will not be required to
award any Agreement that is not deemed by the VILLAGE to be in the best
interests of the VILLAGE.
I. Insurance. Suppliers responding to the Village's RFP shall provide a statement
indicating, if selected, their ability to provide the required insurance certificate
naming the Village of Mount Prospect as an additional insured and that their
insurance coverage levels are equal or greater than what is required. The surety
and their insurance company must have not less than an A rating from the Alfred
M. Best Co., Inc. and be approved by the Village of Mount Prospect, such
approval shall not be unreasonably withheld. Only selected ARES will be
required to provide the insurance certificate.
VI. AGGREGATION PROGRAM AGREEMENT
The VILLAGE will enter into an agreement with a selected ARES which contains the
following minimum terms and conditions:
A. Compliance with Requirements of the Bid and Plan. The Agreement shall
require the Supplier to maintain all required qualifications, and to provide all
services specified in the RFP and this Plan.
B. Term. The VILLAGE's first Agreement shall be for period of not less than a
one year period. Through the RFP process the Village will obtain different
timeframes as part of the evaluation for the most favorable pricing agreement.
Following the expiration of the initial term, the Supplier will continue to provide
electric service on a month to month basis at its then best rate until provided with
30 day written notice to discontinue providing service. If the Agreement is
extended or renewed, Members will be notified by the VILLAGE as required by
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law and the rules of the ICC and IPA as to any change in rates or service
conditions. The VILLAGE will have the discretion to set the length of any
subsequent contract term.
C. Charges and Fees. Neither the VILLAGE nor the supplier will unilaterally
impose any terms, conditions, fees or charges on any Member served by the
Aggregation Program other than the rate quoted in the Fixed Price component of
the RFP and a reasonable administrative fee to the VILLAGE for expenses
incurred to establish and administrate the Aggregation. Changes in tariffs, taxes,
obligations, and licensure enforced by either federal or state regulatory bodies
may be passed through to Members provided that the Supplier provides sufficient
advanced written notice of such changes to the VILLAGE and receives the
written permission of the VILLAGE at least 60 days before a change is
implemented, unless the period is specifically waived by the Village.
1. Opt -Out Fees. No exit fees will be applied to Aggregation Members
who seek to opt -out of the Aggregation after the initial opt -out process has
concluded.
2. Opt -In Fees. No entrance fees will be applied to accounts who seek to
join the aggregation after the commencement of the Aggregation supply
contract.
3. Account Transfer Fees. No fees will be applied to Aggregation
Members who relocate within the VILLAGE and new customers who
establish new electric service.
D. Billing. Collection and credit procedures remain the responsibility of the Utility
and the individual Aggregation Member. ComEd will continue to provide a single
bill to Aggregation Members. Members will continue to remit and comply with the
credit /payment terms of ComEd including the option to opt for a budget bill
through ComEd. The VILLAGE will not be responsible for late payment or non-
payment of any Member Accounts. Neither the VILLAGE nor the Supplier shall
have separate credit or deposit policies for Members.
E. Supply Mix. The Agreement shall specify the supply mix as quoted in the
proposal.
F. Supply Pricing. The Agreement shall specify the rates due from eligible retail
customers that join the Program. Pricing will be established on a fixed rate basis
for the following Member groupings:
1. Standard. Those accounts enrolled through the standard Opt -Out
process.
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2. Off - Cycle. Those accounts seeking enrollment at times other than the
Standard Opt -Out process. The Agreement will require that the Supplier
use all commercially reasonable efforts to provide accounts seeking entry
to the Aggregation after the initial Opt -Out period with the same electricity
supply pricing as that provided the entire Aggregation. Accounts enrolled
after the initial Opt -Out period will be included in any Standard pricing
offers presented to the Aggregation after the account is initially enrolled.
G. Confidentiality of Customer Database. The Agreement shall require the
Supplier to preserve the confidentiality of all Aggregation Members' account
information and shall agree to adopt and follow protocols to preserve that
confidentiality. The Supplier, as a material condition of any contract, shall not
disclose, use, sell or provide customer account information to any person, firm or
entity for any purpose outside the operation of this Municipal Aggregation
Program. This provision will survive the termination of the agreement. The
VILLAGE, upon receiving customer information from ComEd, shall be subject to
the limitations on the disclosure of that information described in Section 2HH of
the Consumer Fraud and Deceptive Practices Act, 815 ILCS 505/2HH.
H. Non - Competition. The Supplier must agree not to solicit or contract directly
with Aggregation Program customers for service or rates outside the Aggregation
Program, and agrees not to use the Customer information for any other
marketing purposes.
I. Hold Harmless. The Supplier must agree to hold VILLAGE financially
harmless from any and all financial obligations arising out of its role as facilitator
of the Municipal Aggregation.
J. Reporting. The Agreement will provide that the Supplier will provide the
VILLAGE with such reports and information as required in this Plan.
K. Reimbursement. All costs incurred by the Village associated with the
development and management of the Aggregation Program shall be reimbursed
by the Supplier and facilitated through the application of a cost addition
embedded in the Energy Supply Price charged to Members.
L. Subcontractors. Subcontractors will be held to the same strict confidentiality
standards applicable to the Supplier and will be required to otherwise comply
with the requirements of the Agreement. The use of subcontractors whether
approved or unapproved will not relieve the Supplier from the duties, terms and
conditions in the Agreement. The Supplier shall be an authorized reseller of
electricity; as such their relationships with PJM or energy producers shall not be
considered subcontracts for purposes of the Agreement.
M. Additional Services. The Agreement may provide that the Supplier will assist
the VILLAGE in developing a Member Education Plan. The Agreement may
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provide that the Supplier will assist the VILLAGE in developing an Energy
Efficiency and or a Demand Response program.
The Agreement will not preclude the VILLAGE from developing its own Member
Education, Energy Efficiency, and Demand Response programs.
VII. IMPLEMENTATION PROCEDURES
A. Initial Enrollment Process. After selecting a Supplier, the VILLAGE and the
Consultant, under confidential agreement with the Supplier, will work with the
Supplier to notify eligible retail customers of the Program. The VILLAGE's
Aggregation is an Opt -Out program pursuant to 20 ILCS 3855/1 -92. Any eligible
electric account that opts out of the Program pursuant to the procedures stated
below will automatically be placed on the ComEd default tariff service unless and
until the account chooses another Supplier.
1. Eligible Retail Customer List. After selecting a Supplier, the VILLAGE
and the Consultant will request from ComEd the full listing of residential
and small commercial accounts located within the boundaries of the
VILLAGE. Under confidential agreement with the Supplier, the VILLAGE
and Consultant will work with the Supplier to remove any customers
determined to be ineligible due to one or more of the following:
i. The customer is not located within the VILLAGE;
ii. The customer has a pre- existing agreement with another
Supplier;
iii. The customer has free ComEd service;
iv. The customer has hourly rate ComEd customer (real time
pricing);
v. The customer is on ComEd's electric heat rate (depending on the
rate results);
vi. The customer is on a ComEd bundled hold.
2. Initial Opt -Out Process. After the Eligible Retail Customer List is
reviewed, the Supplier will mail the Opt -Out Notices described below to all
eligible account holders within the boundaries of VILLAGE.
i. Manner of Providing Notices and Information. The Supplier
will be required to pay for printing and mailing of all Aggregation
and Opt -Out Notices on the VILLAGE envelope and letterhead.
The Supplier will mail Aggregation and Opt -Out Notices to the
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eligible account holders within the boundaries of VILLAGE at the
address provided with the Retail Customer Identification
Information provided by ComEd. The Notice shall indicate that it is
from the VILLAGE, and include the VILLAGE NAME and logo on
the envelope. The Notice shall be signed by the VILLAGE
executive or Designee.
ii. Content of Notice. The VILLAGE and the Supplier will agree to
the format and contents of the Aggregation and Opt -Out Notice
prior to distribution or mailing. The Notice will inform the electric
account owner of the existence of the Aggregation Program, the
identity of the Supplier, the rates to be charged. The Notice will also
inform PIPP or LIHEAP customers of the consequences of
participating in the Aggregation.
iii. Opt -Out Methods. The Notice may provide for a variety of
methods for customers to Opt -Out of the Aggregation Program
including: return mail, toll -free or local telephone number, email,
secure website, smart device quick response code, or fax number.
iv. Time to Respond. Aggregation Members shall have fourteen
(14) calendar days from the postmark date on the Notice to indicate
their decision to Opt -Out of the VILLAGE Aggregation Program.
The time to respond shall be calculated based on the post mark
date of the Notice to the customer and the post mark date of the
customer's response. Upon receipt of the opt -out reply, the Supplier
will remove the account from the Aggregation Program.
v. Final List. After the expiration of the Opt -Out Period, a final
enrollment list shall be created. All customers who have not opted
out will be automatically enrolled in the Program. Customers will not
need to take any affirmative steps in order to be included in the
Program.
1) Missed Accounts. In the event that an eligible
Aggregation Member is inadvertently not sent an Opt -Out
Notice or otherwise omitted from the Program, the Supplier
will work with the VILLAGE and the Member to ensure that
the Member's decision to remain in or opt out of the Program
is properly recorded and implemented by the Supplier.
A. Notification to ComEd. After the Opt -Out Period has expired,
the Supplier shall submit the account numbers of participating
Aggregation Members to ComEd and the rate to be charged to
those customers pursuant to the Service Agreement and the
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customer's election. The Supplier will provide that information to
ComEd in the format ComEd requires.
vii. Notification by ComEd. ComEd will then notify customers that
they have been switched to the Supplier and provide the customer
with the NAME and contact information of the Supplier. Customers
will have the option to rescind their participation in the program
according to time frames and procedures established by ComEd.
viii. Activation of Service. Upon notification to ComEd, the
Supplier will begin to provide electric power supply to the members
of the Aggregation Program without consumer action. The service
will begin on the customer's normal meter read date within a month
when power deliveries begin under the Aggregation Program.
B. Development of Customer Database. The Supplier will maintain a
secure database of Customer Account Information. The database will
include the ComEd account number, and Supplier account number of
each active Member, and other pertinent information such as rate code,
rider code (if applicable), and usage and demand history. The database
will be updated on an ongoing basis
C. Subsequent Opt -Out Process.
1. Account Enrollment. After the initial Opt -Out Process is
completed, the VILLAGE and Supplier will establish procedures
and protocols to work with ComEd on an ongoing basis to add,
delete or change any customer participation or rate information.
i. Off -Cycle Account Additions.
1) New Accounts. The VILLAGE will request from ComEd
on a periodic basis a listing of all active accounts located
within the VILLAGE boundaries. The VILLAGE and the
Consultant will identify the accounts on that list that have
been added since prior Opt -Out Notifications were issued.
The Supplier will mail information to any new accounts upon
the request of the Village to determine interest in
participating in the aggregate pricing. The process described
in Section VIII A of this Plan will be followed to facilitate
enrollment or exclusion from the Program.
2) Opt -In Accounts. Customers may join the Program after
initially Opting Out by contacting the VILLAGE or the
Supplier.
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3) Moving Into the Village. Residents and small
commercial retail accounts that move into the Village to
existing structures /buildings will be included in the Village's
program upon enrollment. Any new accounts shall be able to
enroll under the same terms, conditions, and pricing as
accounts that were initially enrolled. However, any
subsequent enrollees will only have the availability to
participate in the aggregation program for as long as the
term of the agreement is in place. Customers will be
provided information as to how to consider enrollment from
the Village.
4) Moving Within the Village 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 Village
prior to the expiration of the contract term, providing that
member notifies the supplier of their desire to do so with
thirty (30) days notice of the move. Moving within the Village
may cause the member to be served for a brief period of
time by ComEd. The supplier shall not have the right to bill
the Member for any associated switching fee imposed by
ComEd. Members may also opt -out without penalty under
these circumstances.
5) Joining the Aggregation Group after Opting Out.
Members who have left or chose not to join the aggregation
group after the conclusion of the initial opt -out period and
wish to join at a later date may do so by contacting 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, terms, and conditions as did
the initial participants.
6) Open Enrollment Period. Once every three (3) years
Members who are not already enrolled in the aggregation
program shall have the opportunity to join the aggregation
group utilizing the existing rates, terms, and conditions in
place at the time of the open enrollment period. The open
enrollment period shall be coordinated between the supplier
and the Village with all associated costs the responsibility of
the supplier.
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VIII. ADDITIONAL SERVICE TERMS AND CONDITIONS
A. Member Education. At the discretion of the VILLAGE, the Supplier will assist
VILLAGE in developing and implementing a program to educate residential and
small commercial retail Aggregation members on the Aggregation Program, as
well as energy efficiency and conservation tools. The Supplier will also provide
the Aggregation Members with updates and disclosures mandated by ICC and
IPA rules.
B. Universal Access. The Supplier will implement a process to provide universal
access including Member Education for multi - lingual members and members with
disabilities.
C. Reporting. The Supplier will provide to the Consultant the following reports:
1. REC Reporting. The Supplier will deliver reports that provide
competent and reliable evidence to support the fact that it purchased
properly certified RECs in a sufficient quantity to offset the non - renewable
energy provided in the mix.
2. Aggregation Reports. The Supplier will provide the VILLAGE with
quarterly reports showing the number of Members participating in the
Aggregation Program and the total cost for energy provided to the
Aggregation as compared to the ComEd's default tariff service rates. In
addition, the Supplier will report its efforts at member education.
D. Cause for Termination of Agreement. The Agreement may be terminated
for any of the following:
1. End of Term. The VILLAGE's service Agreement with the Supplier will
terminate upon its expiration.
2. Early Termination. The VILLAGE will have the right to terminate the
Agreement prior to the expiration of the term in the event the Supplier
commits any act of default. Acts of default include but are not limited to the
following:
i. Breach of Confidentiality regarding Customer information.
ii. Lapse or revocation of any required license or certification listed
as a qualification in the RFP.
iii. ComEd's termination of its relationship with the Supplier.
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iv. Any act or omission which constitutes deception by affirmative
statement or practice, or by omission, fraud, misrepresentation, or a
bad faith practice.
v. Billing or attempting to collect any charge other than the
approved kWh rates and contractually approved charges.
A. Failure to perform at a minimum level of customer service
required by the VILLAGE.
3. Program Termination. The VILLAGE has the sole authority to
terminate the Program by Ordinance. The Village does not waive any of its
or its residents' legal rights related to any breaches by terminating the
agreement.
E. Termination Process.
1. Notice. The VILLAGE will provide the Supplier with written notice
ofdefault.
2. Cure Period. The Supplier and the VILLAGE will attempt to resolve
any issues cooperatively within seven (7) business days. If the issue is not
resolved, the VILLAGE will again notify the Supplier in writing of its
intention to terminate the agreement within thirty (30) days if the issue is
not resolved to the VILLAGE's sole discretion and satisfaction.
3. Account Management. Upon Notice of termination of the Agreement,
the VILLAGE will direct the Supplier to prepare to either (1) return all
Member accounts to the ComEd default rate, (2) transfer all Member
accounts to another Supplier, or (3) continue to provide service at their
best rate to Member accounts on a month to month basis until the
VILLAGE provides it with 30 day written notice to discontinue providing
service.
F. Jurisdiction. Any disputes between the Supplier and the VILLAGE will be
resolved in the circuit court of which has jurisdiction over the geographic area in
which the Village is located or before state agencies in the State of Illinois
regardless of any conflicts laws to the contrary.
G. Limitation of Liability. The VILLAGE shall not be liable to Aggregation
Members for any claims, however styled, arising out of the aggregation program
or out of any VILLAGE act or omission in facilitating the Municipal Aggregation
program.
1. In addition, the Supplier agrees to hold the VILLAGE harmless from
any claim, cause of action, or proceeding of any kind which may be filed
against the VILLAGE arising out of the services provided by the Supplier
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or any act or omission of the VILLAGE in obtaining the services of the
Supplier. Participants in the aggregation program shall assert any such
claims solely against the Supplier pursuant to the Agreement, under which
such participants are express third party beneficiaries.
IX. INFORMATION AND COMPLAINT NUMBERS
Copies of this Plan will be available from the VILLAGE free of charge. Call 847 -392-
6000 for a copy or for more information. Any electric customer, including any participant
in the VILLAGE's Aggregation Program, may contact the Illinois Commerce
Commission for information, or to make a complaint against the Supplier or ComEd.
The ICC may be reached toll free at 217 - 782 -5793.
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