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Catherine HurleySustainable Programs Coordinator

Electricity Aggregation

Public Hearing on Plan of Operation and Governance

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• “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

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Aggregation ProcessMarch 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

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Competitive Selection Process

Phase 1Pre-Qualify Suppliers

Phase 2Develop Aggregation Plan and Policy

Phase 3Request Proposals & Select Supplier

Two Public Meetings to obtain input

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• 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

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• 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

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1. Purpose of Electricity Aggregation Program and Services2. Bidding/Contract Procedures3. Determination of Rates and Other Charges4. Contents of the Bid5. Determination of Eligible Customer Pool6. Opt-Out Process7. Customer Classes Included8. Billing Procedures9. Credit/Deposit Requirements10. Procedures for Handling Customer Complaints and Dispute

Resolution11. Moving Into the City12. Moving Within the City and Maintaining the Same Account

Number13. Joining the Aggregation Group after Opting-Out14. Reliability of Power Supply15. Supplier Qualification Process16. Miscellaneous

Plan Table of Contents

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• 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

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• 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

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• 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

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• 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

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Members of the public are welcome to make comments on the Plan of Operation and Governance.

Public Feedback

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Thank You

Electricity Aggregation

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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

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Indicative Pricing Results

Contract Term Option % Difference

12 to 24 month 7%

12 to 36 month 20%

Summary of Average Price Differential: Price Terms

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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%