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Illinois Bill Prohibiting Exit Fees on Municipal Aggregation Advances

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A bill which would amend Illinois' opt-out municipal electric aggregation statute has advanced out of the Cities & Villages Committee.

Most notably, as introduced, the bill (HB1370) would provide that any customers included in the aggregation shall be able to leave the aggregation, "at any time without penalties or fees, but at a minimum must be offered the opportunity to opt out every 3 years."

Under current statute, only residential and small commercial customers may be included in the aggregation on an opt-out basis. A proposed amendment to the bill would provide that small commercial customers would not be eligible to participate in an aggregation program until January 1, 2013.

The introduced bill would also explicitly limit the customers included in the aggregation on an opt-out basis to those customers that are taking service from the electric utility through fixed-price bundled service tariffs, and would exclude competitive supply customers. "The plan for the aggregation program must not interfere, conflict, or otherwise abrogate any existing contracts between an alternative retail electric supplier and residential and small commercial retail customers," the introduced version of the bill states.

"In addition, the plan for the aggregation program should be properly integrated with any Commission-approved Illinois Power Agency procurement plan [for default service]," the introduced version of the bill states.

The bill would require the Illinois Commerce Commission to adopt rules defining minimum disclosure requirements for opt-out aggregation programs and governing the licensing of municipalities.

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