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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: July 15, 2014
SUBJECT:
An Ordinance Amending the Plan of Operation and Governance for Municipal Electricity Aggregation
PURPOSE:
To obtain the City Council's approval of the attached ordinance that would amend the plan of operation and governance for municipal electricity aggregation.
BACKGROUND:
On April 24, 2012, the City Council approved Ordinance No. O12-029, which adopted a plan of operation and governance for municipal electricity aggregation in Aurora. The plan established the initial general terms for the establishment and operation of the city's electrical aggregation program.
On June 26, 2012, the City Council approved Ordinance No. O12-047, which permitted the amendment and restatement of the plan of operations and governance. The primary change made through the June 2012 amendment was to permit space heating customers to participate in the electricity aggregation program.
DISCUSSION:
Now that the electricity aggregation program has been operating for more than two years, it has become apparent that a few additional changes are necessary in the plan of operation and governance. The attached, proposed plan has been restated and amended to incorporate the following changes:
1. Elimination of the Early Cancellation Charge (ECC). An ECC was included in either
the 2012 or 2014 power supply agreements executed pursuant to the program. If at
all possible, we would like to avoid having an ECC in our contracts in the future.
(See page 6, section 3.)
2. Revision of the Minimum Duration of the Opt-Out Period from 30 to 21 days. The
current plan provided for an opt-out period of at least 30 days. However, our
electricity aggregation consultant has advised that such a long opt-out period is
unusual. Opt-out periods of 21 days are much more common. In fact, Homefield
Energy, our next electricity supplier could not accommodate a 30-day opt-out period.
Consequently, our contract with Homefield provides for a 21-day opt-out period.
(See page 6, section 3.)
3. Allowing for Intermittent Opt-Out Processes. Residents move in and out of Aurora
on a daily basis. While new residents have always had the opportunity to opt into
the city's electricity aggregation program, it would be more efficient to have
"intermittent opt-out processes." With an intermittent opt-out process, the city's
electricity supplier can periodically identify new residents and conduct a small-scale
opt-out process involving only them. (See page 8, section 7.)
4. Clarifying that Only Renewable Energy Credits (RECs) Recognized by the U.S.
Environmental Protection Agency (EPA) Will be Accepted under the Program. There
are a number of forms of RECs. However, not all forms of RECs are recognized by
the U.S. Environmental Protection Agency under its Green Power Partnership
Program. For example, RECs related to electricity generated by certain older power
plants are recognized by our regional transmission organization (PJM), but not by
the U.S. EPA. For the city to receive full credit for its efforts to be green, the plan of
operation and governance should restrict our acceptance of RECs to those that are
recognized by the U.S. EPA. (See page 9, section 9.)
Otherwise, the terms of the plan of operation and governance are substantially unchanged.
IMPACT STATEMENT:
Not Applicable
RECOMMENDATIONS:
That the City Council approve the attached, proposed ordinance that will amend the plan of operation and governance for municipal electricity aggregation.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending The Plan Of Operation And Governance For Municipal Electricity Aggregation.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Illinois Power Agency Act, Chapter 20, Illinois Compiled Statutes, Act 3855, added Section 1-92 entitled Aggregation of Electrical Load by Municipalities and Counties, codified at 20 ILCS 3855/1-92; and,
WHEREAS, on December 13, 2011, the Aurora City Council approved Ordinance No. O11-067, which provided for the electors of the City of Aurora to consider the question (the "Referendum Question") of whether the City of Aurora should have the authority under Public Act 96-0176 to arrange for the supply of electricity for residential and small commercial retail customers who have not opted out of such program (the "Electricity Aggregation Program"); and,
WHEREAS, on March 20, 2012, the electors of the City of Aurora approved the Referendum Question by a greater than 60/40 margin; and,
WHEREAS, on April 24, 2012, the Aurora City Council adopted a Plan of Operation and Governance for Municipal Electricity Aggregation (the "Plan") through the approval of Ordinance No. O12-029; and
WHEREAS, on June 26, 2012, the Aurora City Council amended and restated the Plan through the approval of Ordinance No. O12-047; and
WHEREAS, based upon the greater experience gained with electricity aggregation, the City has deemed that it would be prudent to make additional modifications to the Plan.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the City's Plan of Operation and Governance for Municipal Electricity Aggregation for the City of Aurora is hereby amended and restated as reflected in the attached document.
SECTION 2: That this ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval.
SECTION 3: That all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict.
SECTION 4: That any section or provision of this ordinance that is construed to be invalid or void shall not affect the remaining sections or provisions, which shall remain in full force and effect thereafter.
PRESENTED to the City Council of the City of Aurora, Illinois, this 5th day of August, 2014.
FILED for inspection this 5th day of August, 2014.
PASSED by the City Council of the City of Aurora, Illinois, this 12th day of August, 2014 pursuant to a roll call vote as follows:
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
____________________________ __________________________
City Clerk Mayor
Attachment