Municipal Electric Aggregation Kane County Committee of the Whole October 25, 2011

Municipal Electric Aggregation “A method by which municipal or county governments can enter into electricity purchasing agreements on behalf of consumers within their jurisdiction” Bluestar Energy Solutions, 10/2011

“Consumers” ResidentsSmall Businesses Small Business = use < 100 KWH

Current Power Purchase Model Individual Residents Purchase Energy From Electricity Supplier Electricity Supplier invoices residents monthly

Aggregated Power Purchase Model County Enters into Power Purchase Agreement with Electricity Supplier on behalf of residents Buying in “bulk” allows better rate No change to electricity delivery or invoicing

Regulatory Authority Public Act : Illinois Power Agency Act Specifically charged with preparing a detailed plan… “designed to promote, in the most expeditious manner possible, retail electric competition for residential and small commercial electricity consumers while maintaining safe, reliable, and affordable service.” Public Act : Amendment authorizing municipal aggregation

Process Agr. w/ Electric Utility Consultant Ordinance to Put Referendum on Ballot Referendum 2 Public Hearings Bids for Electric Supply Contract Enter Contract Stop, No Contract Stop X  Rate better than ComEd Rate not better than ComEd Electric Utility Consultant Assists with Process X 

Who is doing this?

2011 Results Source: Illinois Municipal Review; Illinois Municipal League/ Bluestar Energy Solutions; 10/2011

Local Rates – 2011 Contracts Source: Progressive Energy Group, 2011

Green power purchase Can specify % green power (wind, solar) City of Oak Park – 100% green power; maintained 25% savings (.0579/ KWH) Cost of green power now is low; may get 10% at no extra cost

Potential County Revenue Common in other states $/household fee Can pay for: ▫ Internal county costs to run program ▫ Energy conservation programs Cities of Fulton & Glenwood have included revenues At time of contract with supplier (after referendum passes)

1. Select Consultant Proposals due tomorrow, 10/26/11 Recommendation to be based on experience, plan, and fee structure Resolution for consultant hire to Exec on 11/2 and County Board on 11/8

2. Ordinance to place Referendum on March Ballot To place referendum on March ballot, ordinance must be approved by Jan 3 Ordinance to committee in November, County Board in December

3. Referendum Referendum language spelled out in legislation Election is March 20 th 2012 PROPOSITION Shall the County of Kane have the authority to arrange for the supply of electricity for its residential and small commercial retail customers who have not opted out of such program?

4. If Referendum Passes, Implementation Public Hearings Competitive Bid for supplier

Karen Kosky; Chris Rossman;