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A Presentation by Mark Pruitt of the Illinois Community Choice Aggregation Network on Village Franchise Accounts and Infrastructure Maintenance Fee
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Introduction
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Village Staff and consultant Mark Pruitt from the Illinois Community Choice Action Network will present to the Board on changing electrical "franchise" accounts from bill credits to cash payments.
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Recommended Action
Staff recommend the Board provide Staff direction to bring back an Ordinance which will convert the Village's franchise accounts from bill credits to an infrastructure maintenance fee.
Prior Board Action
There is no prior Board action associated with this item.
Background
The Village of Oak Park has multiple accounts serviced by Commonwealth Edison (ComEd), which are considered "Franchise Accounts." Franchise Account crediting is intended to compensate municipalities for the use of public rights of way and easements in the operation of the ComEd distribution system. Municipalities receive on-bill credits or cash payments equal to the value of the credits issued over the prior 12 months.
Currently, the Village has five accounts that receive bill credits, resulting in a $0 balance monthly. The value of the credits is recovered through a fee on electric bills paid by Village residents and businesses.
The five franchise accounts are:
* Village Hall
* Public Works
* Fire Station 1
* South Fire Station
* Augusta Fire Station
The benefit of receiving bill credits is that the energy costs of the five buildings will always be $0, even as energy prices increase. The challenge of this system is that the Village does not see a financial benefit or return on investment for energy efficiency and renewable energy improvements to those buildings.
In lieu of the bill credits, the Village has the option to convert the credits to cash payments. Under the cash payment system, the Village will pay for energy costs at the five facilities. The cash p...
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