2012-0154- 10 -2012A
. ORDINANCE NO. 2012 —15
AN ORDINANCE APPROVING AN ELECTRIC AGGREGATION PLAN
OF OPERATION AND GOVERNANCE
WHEREAS, the Village of Buffalo Grove is a Home Rule Unit pursuant to the Illinois Constitution of 1970; and
WHEREAS, pursuant to Section 1 -92 of the Illinois Power Agency Act, 20 ILCS 3855/1 -1 et seq. municipalities are
authorized to aggregate the electric loads of residential and small commercial retail customers and to then
solicit bids, select a retail electric supplier, and enter into a supply agreement to facilitate the purchase of
electricity and related services on behalf of its residents and small businesses; and
WHEREAS, the Village of Buffalo Grove and Villages of Arlington Heights, Lincolnshire, Long Grove, Palatine,
Vernon Hills and Wheeling ( "Consortium ") have entered into an Intergovernmental Agreement to pursue an
electric aggregation program and have approved a Joint Power Supply Bid; and
WHEREAS, the Consortium supports the attached Electric Aggregation Plan of Operation and Governance which
describes pursuant to state law:
1) How the Aggregation Program will provide for universal access to all applicable residential and small
business customers and equitable treatment of applicable customers;
2) How demand management and energy efficiency services will be provided to each class of customers;
and
3) How the Aggregation will meet any other legal requirements concerning aggregated electric service.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO
GROVE, COOK AND LAKE COUNTIES, ILLINOIS, as follows:
Section 1. The foregoing Whereas clauses are hereby incorporated herein.
Section 2. The Electric Aggregation Plan of Operation and Governance that is attached hereto as
"Exhibit "A" be and hereby is approved.
Section 3. This Ordinance shall be in full force and effect from and after its passage, approval and
publication. This Ordinance may be published in pamphlet form. This Ordinance shall
not be codified.
AYES: 6- Berman, Trilling, Sussman, Terson, Stein, Ottenheimer
NAYES: 0 — None
ABSENT: 0 — None
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Approved: April 16, 2012
Passed: April 16.2012
Attest:
Village C er
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Attachment A
Electric Aggregation
Plan of Operation
and Governance
April 10, 2012
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VILLAGE rs ' PALATINE
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ELECTRIC AGGREGATION PLAN
OF OPERATION AND GOVERNANCE
1. HISTORY AND PURPOSE OF MUNICIPAL AGGREGATION
Pursuant to Section 1 -92 of the Illinois Power Agency Act, 20 ILCS 3855/1 -1 et seq. municipalities are
authorized to aggregate the electric loads of residential and small commercial retail customers and to then
solicit bids, select a retail electric supplier, and enter into a Supply Agreement to facilitate the purchase of
electricity and related services and equipment on behalf of its residents and small businesses. The statute is a
part of the state's electric deregulation efforts which allows customers access to competitive retail electric
markets.
In accordance with that law, in late 2011, the Villages of Arlington Heights, Buffalo Grove, Lincolnshire, Long
Grove, Palatine, Wheeling & Vernon Hills passed resolutions authorizing a referendum on the March 20, 2012
ballot which asked the voters of the respective communities for authority to create an Opt -Out aggregation
program for its residents and small business customers.
Through an inter - governmental agreement which was approved in the first quarter, 2012, representatives from
the communities of Arlington Heights, Buffalo Grove, Lincolnshire Long Grove, Palatine, Vernon Hills and
Wheeling (hereinafter "Consortium ") solidified their working relationship to aggregate residential and small
commercial retail electrical loads located within each of the communities. The Consortium seek to operate the
aggregation program pursuant to the requirements of Section 1 -92 of the Illinois Power Agency Act (20 ILCS
3855/1 -1 et seq.)( "Act").
The Consortium has retained Intelligent Power Partners LLP (hereinafter "Consultant ") to assist with
implementing the program, bidding and selecting the electricity supplier.
A public outreach campaign was conducted to educate residents and small businesses within the Consortium
about the Community Choice Aggregation Program. Outreach efforts included three public information
meetings, press releases, news articles in local and regional media, village newsletter articles, chamber
newsletter articles, and presentations to community groups.
The Consortium's Aggregation Program seeks to aggregate the retail electric loads of eligible residents and
small commercial retail accounts and to solicit bids for the purchase of that electricity. The Consortium's
program will solicit bids for both a lowest rate alternative as well as an alternative for a cleaner, greener supply
of electric power. With an estimated population of 260,000, the Aggregation has the potential to attract lower
rates than the current default tariff service rate, while also considering a cleaner power supply.
The Consortium's Aggregation Program entails each municipality within the Consortium entering into a
contract with the preferred and selected alternate retail electric supplier, and the Program provides the
bargaining power achieved through the size of the Consortium. The Program is designed to reduce the amount
its members pay for electric energy power supply and gain other favorable terms of service.
The Consortium will not buy or resell power, but will competitively bid and negotiate a contract with a
competent and licensed Alternative Retail Elect -ic Supplier ( "ARES ") to provide electric supply at contracted
rates to all members of the Aggregation Program. The ARES shall provide accurate and understandable pricing,
ancillary services and an opt -out notification plan. The ARES will also perform and manage ancillary services
for the Aggregation Members as described in this document.
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Because each community within the Consortium adopted an opt -out Aggregation Program, all customers in the
defined aggregation group participate in the Program unless they affirmatively elect to opt out of the Program.
By including procedures by which customers may opt -out, the Aggregation Program 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:
1) . How the Aggregation Program will provide for universal access to all applicable residential and small
business customers and equitable treatment of applicable customers;
2) How demand management and energy efficiency services will be provided to each class of customers;
and
3) How the Aggregation will meet any other legal requirements concerning aggregated electric service.
The Consortium and the selected ARES will follow the Plan of Operation and Governance set forth in this
document.
11. DEFINITIONS
In order to clarify certain terminology, the following terms shall have the meanings set forth below:
"Act" shall refer to the Municipal Aggregation enabling act set forth at 20 ILCS 3855/1 -1 et seq.;
"Aggregation Program" or "Program" shall mean the program developed by the Villages of Arlington Heights,
Buffalo Grove, Lincolnshire, Long Grove, Palatine, Vernon Hills and Wheeling to provide residential and small
commercial customers in the respective municipalities with retail electric supply as described in this document;
"Aggregation Consultant" or "Consultant" shall refer to Intelligent Power Partners, LLC, an independent
consultant with demonstrated expertise in electric supply contracting licensed in accordance with Section
5/16 -115C of the Electric Service Customer Choice Act, 220 ILCS 5/16 -115C.
"Aggregation Member" or "Member" shall mean a residential or small commercial retail electric account
enrolled in the Aggregation Program of each municipality within the Consortium;
"Alternative Retail Electric Supplier" or "ARES" shall mean an entity certified by the Illinois Commerce
Commission ( "ICC ") 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 Consortium. 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);
"Consortium" shall mean the Northwest Suburban Consortium which includes the Village of Arlington Heights,
Village of Buffalo Grove, Village of Lincolnshire, Village of Long Grove, Village of Palatine, Village of Vernon Hills
and Village of Wheeling operating through an Intergovernmental Agreement for the purpose of establishing
Aggregation Programs within each community.
"Default Tariff Service" shall mean the electricity supply services available to eligible retail customers of the
Utility;
"Electric Utility" or "Utilities" shall mean Commonwealth Edison (ComEd) as the entity that has a franchise,
license, permit or-right to distribute, furnish or sell electricity to retail customers within the Consortium;
"Eligible Retail Customer" shall mean the residential and small commercial retail customers of the Utility;
"IPA" shall mean the Illinois Power Agency established by Public Act 95 -0481, (20 ILCS 3855/1 -1 et.seq.)'
"Load" shall mean the total demand for electric energy required to serve the Consortium's residential and
small commercial members in the Aggregation Program;
"Municipal Aggregator" shall mean each Village within the Consortium acting as facilitator for the process of
securing competitive retail electric rates for the Aggregation Members within their respective municipality
pursuant to the authority conferred by the Act and in accordance with this Electric Aggregation Plan of
Operation and Governance;
"Opt -Out" shall mean the process by which a customer who would be included in the Aggregation Program
chooses not to participate in the Aggregation and to return to Com Ed's default tariff service;
"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" shall mean this Electric Aggregation Plan of Operation and Governance;
"Power Supply Agreement" or "Supply Agreement" shall mean the contract between each Village within the
Consortium and the Alternate Retail Electric Supplier;
"REC" shall mean duly certified and verified Renewable Energy Credits;
"Small Commercial Retail" shall mean those retail customers with an annual consumption of 15,000 kilowatt
hours per year or less, provided, however, that the definition of Small Commercial Retail will include such other
definition or description as may become required by law.
"Village" shall mean each individual municipality — the Village of Arlington Heights, Village of Buffalo Grove,
Village of Lincolnshire, Village of Long Grove, Village of Palatine, Village of Vernon Hills and Village of Wheeling,
acting by and through its corporate authorities and authorized Village employees;
III. ROLE OF THE CONSORTIUM
A. The Consortium, with the assistance of the Consultant, will issue a Request for Proposals ( "RFP "),
utilizing agreed -to technical specifications, bidder requirements, bidding processes, and contract
documents, to select a single Alternative Retail Electric Supplier (ARES). The Consortium will evaluate
the bids received and will recommend a single ARES to serve as the electricity supplier to all
participating municipalities in the Consortium
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B. After the adoption of this Plan, the corporate authorities of each Village will consider approval ofthe
Supply Agreement with the selected ARES for the provision of electrical power to the Village's Program
pursuant to the RFP.
IV. ROLE OF THE VILLAGE
A. The Village shall be responsible for all financial obligations identified in the Intergovernmental
Agreement establishing the Consortium. 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.
B. 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.
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, and maps.
C. The Village shall forward to ComEd requests for consumer account data.
D. After the adoption of this Plan, the Village Manager 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 residential and small retail and
commercial electric customer account information and generic load profiles.
E. The Village will maintain the customer information it receives in a confidential manner as required by
law and will use that information only for purposes of its Municipal Aggregation. Customer account
information will be considered confidential pursuant to the Freedom of Information Act.
F. After the adoption of this Plan, the corporate authorities of the Village will consider approval of the
Supply Agreement with the selected ARES for the provision of electrical power to the Village's Program
pursuant to the response to the RFP.
G. The Village will review the customer list to remove ineligible customers, provided however, that the
Village shall have no responsibility to potential aggregation members or the ARES for the accuracy of
the customer account information provided.
H. The Village is under no obligation to enter into any Supply Agreement with any ARES and may, in its
discretion, chose to have the aggregation members remain on Com Ed's default tariff service, or to re-
bid the electric service under the same or amended terms of this Plan.
I. The Village, as the facilitator of this bidding process, is not responsible for providing electricity to the
members of the Aggregation, or for billing or collecting for electricity provided under any ARES power
supply agreement, and has no responsibility beyond the duties described herein. ComEd will continue
to provide a single bill to Aggregation Members for all electrical charges.
V. ROLE OF THE CONSULTANT
A. Licensure and Code of Conduct. The Aggregation Consultant will be duly licensed as required by the
Electric Service Customer Choice and Relief Act, 220 ILCS 5/16 -115C and will comply with the code of
conduct requirements thereunder.
B. Duties. The Aggregation Consultant shall advise the Village and assist the Village with the development
and implementation of its Municipal Aggregation Program, including advising staff and elected officials
(at the request of the Village Manager or designee) on all aspects of the program; developing all
necessary documents, soliciting and reviewing bids received, making recommendations as appropriate
and monitoring the ARES' compliance with the requirements of the Supply Agreement. Additional
work may be conducted by the Aggregation Consultant as requested and approved by the Consortium
and Consultant.
C. Required 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 if it acts
as the agent for any ICC certified ARES. It is the duty of the Consultant to disclose any such
relationships and to terminate the agreement in the event of such a relationship. Breach of these
terms will result in the Village terminating the Consultant Agreement.
D. Fee. The Consultant shall be paid directly by the Village of Buffalo Grove pursuant to the
Intergovernmental Agreement among the Consortium, and will not receive a broker fee directly from
the selected ARES.
E. Confidentiality. The Consultant shall not have access to any confidential customer account information
except as required and under the supervision on the Village or the Consortium. In the event the
Consultant becomes privy to any confidential customer account information, it agrees not to use that
information for any purposes outside the scope of the services provide by this Agreement and
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.
F. Village Assistance. The Consultant shall advise the Consortium on any changes in laws, rules, tariffs or
any other regulatory matter that impacts the Aggregation during the term of the Supply Agreement.
V. PROPOSAL
A. Proposal Procedures. The Consortium, working in cooperation with the Consultant, shall develop a
Request for Proposals (RFP) containing the terms and conditions required in this Plan of Operation and
Governance. The RFP process will be conducted in accordance with all applicable state and local laws
and normal Village bidding practices and protocols.
The Village Manager of each Village will retain the full and absolute right to accept, accept with
conditions, or reject any proposal in accordance with the Intergovernmental Agreement between the
Village's concerning Electric Aggregation. The Village may, but is not required to, select an ARES to
provide an energy power supply for the Aggregation Program according to the terms of the Supply
Agreement between the Consortium and the ARES.
If the Village does not award a contract as a result of the proposal process, the Village will notify the
Aggregation Members that their electricity will continue to be provided by ComEd's default tariff
service provider.
B. Contents of the Proposal
1. Term of Agreement:
The initial Supply Agreement will be for minimum one year period. The Corporate Authorities of
each Village will have discretion to determine the length of any future contract periods.
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2. Power Mix:
Proposers will quote rates for the following energy mixes:
a. Base Price Option. A single price ($ /kWh) for energy supply that meets all the minimum
compliance requirements.
b. Enhanced Renewable Energy Mix. Enhanced Renewable Energy Mix means the electricity
supply that exceeds the current renewable energy resource requirements of the Illinois
Renewable Portfolio Standard. This is conducted by securing Renewable Energy Credits
sourced through GATS (Generation Attribute Tracking System) or MRETS (Midwest Renewable
.Energy Tracking System) registered hydroelectric, wind, solar photovoltaic or captured
methane- landfill gas. The Proposer shall provide the cost premium associated with providing
the Enhanced Renewable Energy Mix option at various specified levels up to 100 %. Each
municipality within the Consortium may accept an Enhanced Renewable Energy Mix at its own
option. Additionally, Villages will seek to establish mechanisms that facilitate the purchase of
RECs by individual Aggregation Members.
3. Rates: The proposal documents shall require the ARES to provide the rate information as set forth
herein. The Consortium's intent in soliciting the proposals is to provide residents and small
commercial retail accounts with delivered electricity prices that are always less than ComEd's
applicable rates.
4. Disclosure: As part of the RFP, the ARES shall be evaluated to determine "responsibility "; such
factors include, but are not limited to: certifications, conflict of interest disclosures, taxpayer
identification number, past performance, references, compliance with applicable laws, financial
stability and the perceived ability to perform as specified. The Proposer must have financial
resources sufficient, in the opinion of the Consortium, to ensure performance of the Supply
Agreement and must provide proof upon request.
5. Opt Out notifications: Proposers shall describe the manner and time in which the Opt Out
Notification process will be handled and the manner in which it communicates with ComEd to track
customer participation in the Aggregation.
6. Mid -term customer additions. Proposers will describe how they will handle customers who want to .
join the Aggregation after the beginning of the Supply Agreement, including customers who relocate
within the Village and new customers who establish new electric service.
7. Qualifications: Proposers will demonstrate that they meet all of the qualifications listed in Section C
below.
8. PIPP participation: Proposers will state whether they participate in the PIPP program. Proposers
will also describe their process for notifying PIPP customers of the consequences of participating in
the Aggregation.
9. Subcontractors: Proposers shall not employ any subcontractors other than as necessary for
administrative tasks such as notices and printing, without the prior authorization of the Village. All
subcontractors will be held to the same strict confidentiality standards applicable to the ARES and
will be required to otherwise comply with the requirements of the Supply Agreement. The use of
subcontractors whether approved or unapproved will not relieve the ARES from the duties, terms
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and conditions in the Supply Agreement. Proposers shall be authorized resellers of electricity. As
such their relationships with PJM or energy producers shall not be considered subcontracts for
purposes of this document.
10. Member Services: Proposers will describe how they will provide membership education, including
Aggregation and Opt Out notices, how they will respond to .customer inquiries, how they will
communicate with the public regarding the Aggregation Program and any other ongoing consumer
education efforts.
11. Confidentiality: Proposers must describe the controls they have in place to guarantee the
confidentiality of customer information.
12. Customer Service. Proposers shall respond with information on how they will provide customer
service to the Village.
13. New Accounts. Proposers will describe the process for adding new customer accounts to the
Aggregation during the term of the Supply Agreement.
C. Qualification of Proposers
Proposers must demonstrate that they satisfy each of the following requirements:
1. Maintain a certificate of serviced authority from the State of Illinois as a certified retail electric
supplier and any and all other licenses or certifications required by the ICC;
2. Register as a retail electric supplier with ComEd;
3. Maintain a Supply Agreement for Network Integration Transmission Service under Open Access
Transmission Tariff;
4. Maintain the necessary corporate structure to sell energy power supplies to the ComEd residential
and small commercial retail customers in each Village;
5. Maintain an 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 Consortium;
6. Maintain the marketing ability to reach all ComEd residential and small commercial retail
customers in the Consortium 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;
7. Maintain a toll -free telephone access line which shall be available to Aggregation Members 24
hours a day, seven days a week. Trained company representatives shall 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 shall 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 30
seconds when the connection is made. If the call needs to be transferred, transfer time shall not
exceed 30 seconds. The Vendor shall submit reports to the municipality at least once per quarter,
indicating that it has met these standards at least 90 percent of the time under normal operating
conditions during the preceding quarter.
8. Maintain a website for the Aggregation Members. The website shall provide basic information
concerning the Aggregation program and shall facilitate customer inquiries by providing a platform
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for the submission of questions by email or text. Responses to inquiries submitted through the
website platform shall be generated within 24 hours.
9. Provide customer service for Members requiring non - English verbal and written assistance.
10. Provide customer service for hearing- impaired Members.
11. Provide proof of the company's bond posting with the ICC;
12. Comply with all applicable laws and regulations of the State of Illinois.
D. Proposal Evaluation
The Consortium will evaluate the bids on the following criteria:
1. Qualifications of the Proposers
.2. Rates and corresponding power mixes
3. Quality of the Response to the Aggregation Plan
4. Quality of Marketing Plan and Timeline
5. Experience
6. Any other factors deemed to be in the Village's best interest.
VI. POWER SUPPLY AGREEMENT
The Consortium will select the preferred ARES supplier through the RFP process and the Village shall negotiate
the final terms and conditions for the Power Supply Agreement. Each Village within the Consortium will enter
into an agreement with the selected ARES which contains the following minimum terms and conditions:
A. Term. The Supply Agreement shall be for a minimum of a one year period. Following the expiration of
the term, the ARES may provide a renewal option with written notice. If the Agreement is extended or
renewed, Members will be notified by the Village as required by law and the rules of the ICC and IPA as
to any change in rates or service conditions. The corporate authorities of each Village will have the
discretion to set the length of any subsequent contract term.
B. Rate. The agreement shall specify the rates and the power mix as quoted in the proposal and shall
specify any other charges or fees, such as a disconnection, opt out or opt in fee.
C. Compliance with Requirements in the Proposal. The agreement shall require the ARES to maintain all
required qualifications, and to provide all services required in the proposal.
D. Confidentiality of Customer Database. The ARES shall preserve the confidentiality of all Aggregation
Members' account information and shall agree to adopt and follow protocols to preserve that
confidentiality. The ARES, 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.
E. Non - Competition. The ARES must agree not to solicit or contract directly with eligible Aggregation
Program customers for service or rates outside the Aggregation Program, and agrees not to use the
Customer information for any other marketing purposes.
F. Hold Harmless. The ARES must agree to hold the Consortium and its members financially harmless
from any and all financial obligations arising from the Program and indemnify the Consortium and its
members pursuant to the terms of the Agreement.
G. Additional Services. The Agreement may provide that the ARES will assist the Consortium in
developing a Member Education Plan and in the development of an Energy Efficiency program, or
provide such other energy efficiency education services as may be mutually agreed upon by the
parties.
H. Reporting. The Agreement will provide that the ARES will provide the Village with such reports and
information as required in this Plan.
I. Costs. All costs of the aggregation program development and administration will be paid by the
Consortium in accordance with the Intergovernmental Agreement between and among members of
the Consortium concerning electric aggregation.
J. Renewable Energy Options. The Agreement may provide, at the option of the individual Villages, the
inclusion of additional renewable energy supply options. Villages will have the option to negotiate the
purchase of Renewable Energy Credits ( "RECs ") at various specified volumes up to 100 %. Additionally,
Villages will seek to establish mechanisms that facilitate the purchase of RECs by Aggregation
Members.
VII. IMPLEMENTATION PROCEDURES
A. Development of Customer Database. Pursuant to ICC regulations, after this Plan is approved by each
Village, the Village Manager or his designee will then submit a Direct Access Request and Government
Authority Aggregation Form to ComEd (ILL.C.C. No.10 Rate GAP Government Aggregation Protocols,
Sheets 406 -411, April 17 2011) requesting that it provide the Village with Retail Customer Identification
Information. ComEd will provide the Village with the requested information within ten (10) business
days of receiving the request in accordance with those adopted protocols.
After selecting and contracting with an ARES, the Village, under confidential agreement with the ARES,
will work with the ARES, to remove any customers determined to be ineligible due to one or more of
the following:
1. The customer is not located within the Village;
2. The customer has a pre- existing agreement with another ARES;
3. The customer has free Com Ed service;
4. The customer has hourly rate Com Ed customer (real time pricing);
5. The customer is on Com Ed's electric heat rate;
6. The customer is on a Com Ed bundled hold.
The Retail Customer Identification Information will remain the property of each Village, and the ARES
will comply with the confidentiality and non - compete provisions in the Supply Agreement.
After the Retail Customer Identification Information is reviewed, the ARES will mail the Opt -Out
Notices described below to all eligible account holders within the boundaries of the Village.
The ARES shall treat all customers equally and shall not deny service to any customer in the
Aggregation, or alter rates for different classes of customers unless as authorized by law.
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B. Maintenance of Accurate and Secure Customer Records. The ARES will maintain a secure database of
Customer Account Information. The database will include the ComEd account number, and ARES
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 ARES will maintain the database in a secure and confidential manner. The ARES will keep Customer
Account Information for a minimum of two years following the termination of the service.
C. Opt -Out Process. The Consortium'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 ARES.
1. Manner of Providing Notices and Information. The ARES will be required to pay for printing and
mailing of all Aggregation and Opt -Out Notices. The ARES will mail Aggregation and Opt Out
Notices to the eligible account holders within the boundaries of each Village at the address
provided with the Retail Customer Identification Information provided by ComEd.
2. Content of Notice. The Consortium and the ARES 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 ARES, the rates to
be charged. The Notice will also inform PIPP customers of the consequences of participating in the
Aggregation. The Notice will provide a method for customers to Opt Out of the Aggregation
Program. 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 bythe Village Manager or designee.
Time to Respond. Aggregation Members shall have fourteen (14) calendar days from the postmark
date on the notice to mail the Opt -Out card back to the ARES stating their intention 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. The ARES may offer additional means of opting
out, such as a toll -free number, website, smart device quick response code, email address or fax
number, each of which must be received within 14 days from the post mark date on the Opt Out
notice. Upon receipt of the opt -out reply, the ARES will remove the account from the Aggregation
Program.
After the expiration of the fourteen (14) day Opt Out period, the Customer list shall become final.
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.
In the event that an eligible Aggregation Member is inadvertently not sent an Opt -Out Notice, or is
inadvertently omitted from the Program, the ARES 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 ARES.
4. Change of Address. Members who move from one location to another within the corporate limits
of the Consortium shall retain their participant status.
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D. Notification to ComEd. Pursuant to ILL.C.C. No.10, Rate GAP, after the Opt -Out response period has
expired, the ARES shall submit the account numbers of participating Aggregation Members to ComEd
and the rate to be charged to those customers pursuant to the Supply Agreement and the customer's
election. The ARES will provide that information to ComEd in the format ComEd requires.
The ARES will establish procedures and protocols to work with ComEd on an ongoing basis to add,
delete or change any customer participation or rate information. ComEd will then notify customers
that they have been switched to the ARES and provide the customer with the name and contact
information of the ARES. Customers will have the option to rescind their participation in the program
according to time frames and procedures established by ComEd.
E. Activation of Service. Upon notification to ComEd, the ARES 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.
F. Billing and Fees. .Collection and credit procedures remain the responsibility of the Electric Utility and
the individual Aggregation Member. Members are required to remit and comply with the payment
terms of ComEd. The Village will not be responsible for late payment or non - payment of any Member
accounts. Neither the Village nor the ARES shall have separate creditor deposit policies for Members.
1. Early Termination. Members may terminate service from the ARES without penalty if they
relocate outside of the Village. Members who did not opt out of the Program during the Opt -
Out Period and who later leave the Program for other reasons may be assessed an early
termination fee by the ARES not to exceed $25.
2. Enrollment Fee. For any new Member that joins the Program after the activation of service by
the ARES for the Village, the ARES may charge an enrollment fee only to establish service at a
property for which the ARES had not previously provided service in the preceding 30 days. The
ARES shall not charge any enrollment fee with respect to any property for which the identity of
the Member is changed but at which service is interrupted for a period of less than 30 days.
Any enrollment fee authorized pursuant to this Paragraph shall not exceed $25.
3. Switching Fee. Members changing residency within the Village will not be assessed early
termination or enrollment fees. The ARES 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 the Member notifies the ARES of his or her
desire to do so with 30 days' notice. Moving within the Village may cause the Member to be
served for a brief period of time by ComEd. The ARES shall have the right to bill the participant
for any associated switching fee imposed by ComEd.
G. Enrollments:
1. New Accounts. The ARES must facilitate the addition of new member accounts to the
Aggregation Program during the term of the Supply Agreement. Residents and businesses that
move into the community after the Opt -Out Period will NOT be automatically included in the
Aggregation Program. Members wishing to opt -in to the Aggregation Program-may contact the
ARES to obtain enrollment information. All new accounts shall be entitled to the rates set forth
in the Supply Agreement.
2. Re- Joining the Aggregation Group. After opting out, Members may rejoin the Program at a
later date in the same manner as new residents moving into the Village. These members may
contact the ARES at any time to obtain enrollment information. All Members who re -join the
Program shall be entitled to the rates set forth in the Supply Agreement.
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3. Percentage of Income Payment Plan (PIPP) participation. The ARES must facilitate billing for
residents enrolled in the PIPP bill payment assistance program for low- income residential
customers. The ARES must also notify PIPP customers of the consequences of participating in
the Aggregation.
4. Change of Address. Members who move from. one location to another within the corporate
limits of the Village shall retain their participant status.
5. The ARES will establish procedures and protocols to work with ComEd on an ongoing basis to
add, delete or change any member participation or rate information.
H. Member Services:
1. Program Management and Documentation: The ARES must have standard operating
procedures in place that govern Member education, Opt -out notification, Member inquiries,
and public outreach regarding the Aggregation Program.
2. Member Inquiries.
a. Procedures for Handling Customer Complaints and Dispute Resolution. Concerns regarding
service reliability should be directed to ComEd, billing questions should be directed to
ComEd or the ARES, and any unresolved disputes should be directed to the ICC.
b. Telephone Inquiries. The ARES must maintain 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 30 seconds when the connection is made. If the call needs to be
transferred, transfer time shall not exceed 30 seconds. These standards shall be met no
less than 90 percent of the time under normal operating conditions, measured on a
quarterly basis.
c. Internet and Email. The ARES must establish and maintain a website for the Aggregation
Members. The website will provide basic information concerning the Aggregation program
and will facilitate member inquiries by providing a platform for the submission of questions
by email or text. Responses to inquiries submitted through the website platform must be
generated within 24 hours.
d. Bilingual Services. The ARES must provide customer service for Members requiring non -
English verbal and written assistance.
e. Hearing Impaired. The ARES must provide customer service for hearing impaired
Members.
3. The ARES will provide the Aggregation Members with updates and disclosures mandated by
ICC and IPA rules.
I. 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. Member 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 that if the ARES fails 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
13
J
would then bill the ARES for the power provided on their behalf. The Members would incur no
additional cost.
VIII. ADDITIONAL SERVICE TERMS AND CONDITIONS
A. Member Education. At the discretion of the Consortium, the ARES will assist Consortium 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 ARES will also
provide the Aggregation Members with updates and disclosures mandated by ICC and IPA rules.
B. Universal Access. The ARES will implement a process to provide universal access including Member
Education for multi - lingual members and members with disabilities.
C. Customer Service. The ARES will develop and administer a customer service process that, at a
minimum is able to: (i) accommodate Member inquiries and complaints about energy supply and
services; and (ii) answer questions regarding the Program in general. This process will include a local
telephone number for customer inquiries; a description of how telephone inquiries will be handled; a
description of how communications between the Village, the ARES and ComEd will be reviewed for
quality and timeliness; and a process by which the ARES can demonstrate meeting minimum customer
service standards.
D. Compliance with Laws. The ARES will develop internal controls and processes to ensure that Village
remains in good standing as a Municipal Aggregator that complies with all laws, rules and regulations
surrounding the same, as they may be amended from time to time.
E. Reporting.
1. Power Mix Reporting. The ARES's will deliver quarterly reports to the Village and the Consultant
which substantiate that: (a) it generated or purchased electricity with the claimed attributes in
amounts sufficient to match actual consumption by the Aggregation Members; (b) the electricity
was supplied to the interconnected grid serving the Aggregation Members; and (c) the same
generated electricity was not sold to more than one consumer.
The report will show the source of the power and demonstrate that the power was provided in
accordance with Renewable Portfolio Standards and the federal Clean Air Act regulations and
permits.
2. REC Reporting, The ARES 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.
3. Aggregation Reports, The ARES 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 tariffed service rates. In addition, the ARES will
report its efforts at member education.
F. Termination of Service
1. End of Term. The Village's Supply Agreement with the ARES will terminate upon its expiration,
provided that the ARES will continue to provide service at their best rate on a month to month
basis after the expiration of the contract term until the Village provides it with 30 day written
notice to discontinue providing service.
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2. Early Termination. The Village will have the right to terminate the Agreement prior to the
expiration of the term in the event the ARES commits any act of default. Acts of default include but
are not limited to the following:
a. Breach of Confidentiality regarding Customer information.
b. The ARES becoming disqualified to perform the services by virtue of the lapse or revocation of
any required license or certification listed as a qualification in the RFP.
c. Com Ed's termination of its relationship with the ARES.
d. Any act or omission which constitutes deception by affirmative statement or practice, or by
omission, fraud, misrepresentation, or a bad faith practice.
e. Billing in excess of the approved kWh rates and stated charges.
f. Billing or attempting to collect any charge other than the approved kWh rates and
contractually approved charges.
g. Failure to perform at minimum levels of customer service required by the Village.
The Village will provide the ARES with written notice of immediate termination in the event that
any of the defaults listed above under subsections a. through d. exist.
The Village will provide the ARES with written notice of default in the event of any default listed
under subsections e. through g., or any other event of default not listed above. The ARES and the
Village will attempt to resolve any issues cooperatively within 7 business days. If the issue is not
resolved, the Village will again notify the ARES in writing of its intention to terminate the
agreement within 30 days if the issue is not resolved to the Village's satisfaction.
Upon termination for any reason, the Village will notify ComEd to return the Aggregation Members
to the default tariff electric service.
Upon termination, each individual Member will receive written notification from the Village of the
termination of the Program. Such notice will also inform Members of their electric supply options.
G. Jurisdiction. Any disputes between the ARES and the Village will be resolved in the courts or before
state agencies in the State of Illinois regardless of any conflicts laws to the contrary.
H. 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.
In addition, the ARES 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 ARES or
any act or omission of the Village in obtaining the services of the ARES. Participants in the aggregation
program shall assert any such claims solely against the ARES pursuant to the Power Supply Agreement,
under which such participants are express third party beneficiaries.
IX. INFORMATION AND COMPLAINT NUMBERS
Copies of this Plan will be available electronically from the Consortium free of charge. Any electric
customer, including any participant in the Consortium's aggregation program, may contact the Illinois
Commerce Commission for information, or to make a complaint against the Program, the ARES or ComEd.
The ICC may be reached toll free at 217 - 782 -5793.
1s
Individuals can also contact their municipality at the number below or email electricityagg @vbg.org:
Arlington Heights
Buffalo Grove
Lincolnshire
Long Grove
Palatine
Vernon Hills
Wheeling
847 - 368 -5800
847 - 459 -2525
847 - 883 -8600
847 - 634 -9440
847 - 359 -9050
847 - 367 -3700
847 - 459 -2600
16
STATE OF ILLINOIS) ss.
COUNTY OF COOK )
CERTIFICATE
I, Janet M. Sirabian, certify that I am the duly elected
and acting Village Clerk of the Village of Buffalo
Grove, Cook and Lake Counties, Illinois. I further
certify that on April 16, 2012, the Corporate
Authorities of the Village passed and approved
Ordinance No. 2012 -15, ' AN ORDINANCE
APPROVING AN ELECTRIC AGGREGATION
PLAN OF OPERATION AND GOVERNANCE
prepared, and a copy of such Ordinance was posted
in and at the Village Hall, commencing on April 17,
2012 and continuing for at least ten days thereafter.
Copies of such Ordinance were also available for
public inspection upon request in the Office of
Village Clerk.
Dated at Buffalo Grove, Illinois, this 17th day of
April, 2012
Villay Clerk
By
N.
ORDINANCE NO. 2012 —15
AN ORDINANCE APPROVING AN ELECTRIC AGGREGATION PLAN
OF OPERATION AND GOVERNANCE
4- 10 -2012A
WHEREAS, the Village of Buffalo Grove is a Home Rule Unit pursuant to the Illinois Constitution of 1970; and
WHEREAS, pursuant to Section 1 -92 of the Illinois Power Agency Act, 20 ILCS 3855/1 -1 et seq. municipalities are
authorized to aggregate the electric loads of residential and small commercial retail customers and to then
solicit bids, select a retail electric supplier, and enter into a supply agreement to facilitate the purchase of
electricity and related services on behalf of its residents and small businesses; and
WHEREAS, the Village of Buffalo Grove and Villages of Arlington Heights, Lincolnshire, Long Grove, Palatine,
Vernon Hills and Wheeling. ("Consortium") have entered into an Intergovernmental Agreement to pursue an
electric aggregation program and have approved a Joint Power Supply Bid; and
WHEREAS, the Consortium supports the attached Electric Aggregation Plan of Operation and Governance which
describes pursuant to state law:
1) How the Aggregation Program will provide for universal access to all applicable residential and small
business customers and equitable treatment of applicable customers;
2) How demand management and energy efficiency services will be provided to each class of customers;
and
3) How the Aggregation will meet any other legal requirements concerning aggregated electric service.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO
GROVE, COOK AND LAKE COUNTIES, ILLINOIS, as follows:
Section 1. The foregoing Whereas clauses are hereby incorporated herein.
Section 2. The Electric Aggregation Plan of Operation and Governance that is attached hereto as
"Exhibit "A" be and hereby is approved.
Section 3. This Ordinance shall be in full force and effect from and after its passage, approval and
publication. This Ordinance may be published in pamphlet form. This Ordinance shall
not be codified.
AYES: 6- Berman, Trilling, Sussman Terson Stein Ottenheimer
NAYES: 0 — None
ABSENT: 0 — None
Approved: April 16, 2012
Passed: April 16, 2012
Attest:
Village Clerk