Bill Text: IL HB3293 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Illinois Power Agency Act. Requires the Planning and Procurement Bureau to include in procurement plans and competitive procurement processes the procurement of low carbon energy credits (LCE credits) for all of the utilities' retail customers. Sets forth a low carbon portfolio standard. Provides that the procurement plans shall include cost-effective low carbon energy credits from low carbon energy resources in an amount equal to 70% of each electric utility's annual retail sales of electricity to retail customers in the State during the planning year immediately prior to the development of the procurement plan. Specifies that a renewable energy credit, carbon emission credit, or LCE credit can only be used once to comply with a single portfolio standard and cannot be used to satisfy the requirements of more than one portfolio standard. Amends the Public Utilities Act. Allows the electric utility to recover through tariffed charges all of the costs associated with the purchase of low carbon energy credits from low carbon energy resources. Requires electric utilities to procure low carbon energy credits from low carbon energy resources for all retail customers in its service area in accordance with provisions concerning the low carbon energy portfolio. Requires electric utilities and alternative retail electric suppliers to provide to its customers on a quarterly basis a pie-chart that graphically depicts the quantity of low carbon energy credits from low carbon energy resources procured as a percentage of the actual load of retail customers within its service area. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2015-04-30 - Added Co-Sponsor Rep. Dwight Kay [HB3293 Detail]

Download: Illinois-2015-HB3293-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB3293 Introduced , by Rep. Lawrence M. Walsh, Jr. - Michael W. Tryon, John D. Anthony, Tom Demmer, Brian W. Stewart, et al. SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Power Agency Act. Requires the Planning and Procurement Bureau to include in procurement plans and competitive procurement processes the procurement of low carbon energy credits (LCE credits) for all of the utilities' retail customers. Sets forth a low carbon portfolio standard. Provides that the procurement plans shall include cost-effective low carbon energy credits from low carbon energy resources in an amount equal to 70% of each electric utility's annual retail sales of electricity to retail customers in the State during the planning year immediately prior to the development of the procurement plan. Specifies that a renewable energy credit, carbon emission credit, or LCE credit can only be used once to comply with a single portfolio standard and cannot be used to satisfy the requirements of more than one portfolio standard. Amends the Public Utilities Act. Allows the electric utility to recover through tariffed charges all of the costs associated with the purchase of low carbon energy credits from low carbon energy resources. Requires electric utilities to procure low carbon energy credits from low carbon energy resources for all retail customers in its service area in accordance with provisions concerning the low carbon energy portfolio. Requires electric utilities and alternative retail electric suppliers to provide to its customers on a quarterly basis a pie-chart that graphically depicts the quantity of low carbon energy credits from low carbon energy resources procured as a percentage of the actual load of retail customers within its service area. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Low carbon portfolio standard legislative
findings. The General Assembly finds and declares the
following:
(1) Reducing emissions of carbon dioxide and other
pollutants and preserving existing low-emission
electricity generation in Illinois and adjoining states is
critical to improving air quality in Illinois for Illinois
residents.
(2) The existing renewable portfolio standard has been
successful in promoting the growth of renewable energy
generation to reduce air pollution in Illinois. However, to
achieve its environmental goals, Illinois must expand its
commitment to low-emission energy generation and value the
environmental attributes of low-carbon generation that
currently falls outside the scope of the existing renewable
portfolio standard, including, but not limited to, nuclear
power.
(3) Preserving existing low-emission energy generation
and promoting new low-emission energy generation is
critical to placing the State on a glide path to meeting
anticipated regulatory requirements that have been

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proposed by the U.S. Environmental Protection Agency under
Section 111(d) of the federal Clean Air Act.
(4) The Illinois Commerce Commission, the Illinois
Power Agency, the Illinois Environmental Protection
Agency, and the Department of Commerce and Economic
Opportunity issued a report dated January 5, 2015 titled
"Potential Nuclear Power Plant Closings in Illinois" (the
Report), which addressed the issues identified by Illinois
House Resolution 1146 of the 98th General Assembly, which,
among other things, urged the Illinois Environmental
Protection Agency to prepare a report showing how the
premature closure of existing nuclear power plants in
Illinois will affect the societal cost of increased
greenhouse gas emissions based upon the EPA's published
societal cost of greenhouse gases.
(5) The Report also identified significant adverse
consequences for electric reliability in Illinois,
including significant voltage and thermal violations in
the interstate transmission network, in the event that
Illinois' existing nuclear facilities close prematurely.
The Report also found that nuclear power plants are among
the most reliable sources of energy, which means that
electricity from nuclear power plants is available on the
electric grid all hours of the day and when needed, thereby
always reducing carbon emissions.
(6) The Report also found that the premature closure of

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existing nuclear power plants in Illinois will negatively
affect the economic climate in the region.
(7) Illinois House Resolution 1146 further urged that
the Report make findings concerning potential market-based
solutions that will ensure that the premature closure of
these nuclear power plants does not occur and that the
associated dire consequences to the environment, electric
reliability, and the regional economy are averted.
(8) The Report identified potential market-based
solutions that will ensure that the premature closure of
these nuclear power plants does not occur and that the
associated dire consequences to the environment, electric
reliability, and the regional economy are averted.
The General Assembly therefore finds that it is necessary
to establish and implement a low carbon portfolio standard,
which will increase the State's reliance on low carbon energy
through the procurement of low carbon energy credits from low
carbon energy resources.
Section 5. The Illinois Power Agency Act is amended by
changing Sections 1-5, 1-10, and 1-75 as follows:
(20 ILCS 3855/1-5)
Sec. 1-5. Legislative declarations and findings. The
General Assembly finds and declares:
(1) The health, welfare, and prosperity of all Illinois

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citizens require the provision of adequate, reliable,
affordable, efficient, and environmentally sustainable
electric service at the lowest total cost over time, taking
into account any benefits of price stability.
(2) (Blank). The transition to retail competition is
not complete. Some customers, especially residential and
small commercial customers, have failed to benefit from
lower electricity costs from retail and wholesale
competition.
(3) (Blank). Escalating prices for electricity in
Illinois pose a serious threat to the economic well-being,
health, and safety of the residents of and the commerce and
industry of the State.
(4) It To protect against this threat to economic
well-being, health, and safety it is necessary to improve
the process of procuring electricity to serve Illinois
residents, to promote investment in energy efficiency and
demand-response measures, and to maintain and support
development of clean coal technologies, generation
resources that operate at all hours of the day and under
all weather conditions, low carbon energy resources, and
renewable resources.
(5) Procuring a diverse electricity supply portfolio
will ensure the lowest total cost over time for adequate,
reliable, efficient, and environmentally sustainable
electric service.

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(6) Including cost-effective renewable resources and
low carbon energy credits from low carbon energy resources
in that portfolio will reduce long-term direct and indirect
costs to consumers by decreasing environmental impacts and
by avoiding or delaying the need for new generation,
transmission, and distribution infrastructure.
(7) Energy efficiency, demand-response measures, low
carbon energy, and renewable energy are resources
currently underused in Illinois.
(8) The State should encourage the use of advanced
clean coal technologies that capture and sequester carbon
dioxide emissions to advance environmental protection
goals and to demonstrate the viability of coal and
coal-derived fuels in a carbon-constrained economy.
(9) The General Assembly enacted Public Act 96-0795 to
reform the State's purchasing processes, recognizing that
government procurement is susceptible to abuse if
structural and procedural safeguards are not in place to
ensure independence, insulation, oversight, and
transparency.
(10) The principles that underlie the procurement
reform legislation apply also in the context of power
purchasing.
The General Assembly therefore finds that it is necessary
to create the Illinois Power Agency and that the goals and
objectives of that Agency are to accomplish each of the

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following:
(A) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served
less than 100,000 customers in Illinois and (ii) request a
procurement plan for their Illinois jurisdictional load.
The procurement plan shall be updated on an annual basis
and shall include renewable energy resources and,
beginning with the partial planning year commencing
January 1, 2016, low carbon energy credits from low carbon
energy resources sufficient to achieve the standards
specified in this Act.
(B) Conduct competitive procurement processes to
procure the supply resources identified in the procurement
plan.
(C) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(D) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric

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systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(E) Ensure that the process of power procurement is
conducted in an ethical and transparent fashion, immune
from improper influence.
(F) Continue to review its policies and practices to
determine how best to meet its mission of providing the
lowest cost power to the greatest number of people, at any
given point in time, in accordance with applicable law.
(G) Operate in a structurally insulated, independent,
and transparent fashion so that nothing impedes the
Agency's mission to secure power at the best prices the
market will bear, provided that the Agency meets all
applicable legal requirements.
(Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11;
97-813, eff. 7-13-12.)
(20 ILCS 3855/1-10)
Sec. 1-10. Definitions.
"Agency" means the Illinois Power Agency.
"Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of revenue bonds issued with respect to a project to
the Agency upon terms providing for loan repayment installments
at least sufficient to pay when due all principal of, interest
and premium, if any, on those revenue bonds, and providing for

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maintenance, insurance, and other matters in respect of the
project.
"Authority" means the Illinois Finance Authority.
"Clean coal facility" means an electric generating
facility that uses primarily coal as a feedstock and that
captures and sequesters carbon dioxide emissions at the
following levels: at least 50% of the total carbon dioxide
emissions that the facility would otherwise emit if, at the
time construction commences, the facility is scheduled to
commence operation before 2016, at least 70% of the total
carbon dioxide emissions that the facility would otherwise emit
if, at the time construction commences, the facility is
scheduled to commence operation during 2016 or 2017, and at
least 90% of the total carbon dioxide emissions that the
facility would otherwise emit if, at the time construction
commences, the facility is scheduled to commence operation
after 2017. The power block of the clean coal facility shall
not exceed allowable emission rates for sulfur dioxide,
nitrogen oxides, carbon monoxide, particulates and mercury for
a natural gas-fired combined-cycle facility the same size as
and in the same location as the clean coal facility at the time
the clean coal facility obtains an approved air permit. All
coal used by a clean coal facility shall have high volatile
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, unless the clean coal facility does not
use gasification technology and was operating as a conventional

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coal-fired electric generating facility on June 1, 2009 (the
effective date of Public Act 95-1027).
"Clean coal SNG brownfield facility" means a facility that
(1) has commenced construction by July 1, 2015 on an urban
brownfield site in a municipality with at least 1,000,000
residents; (2) uses a gasification process to produce
substitute natural gas; (3) uses coal as at least 50% of the
total feedstock over the term of any sourcing agreement with a
utility and the remainder of the feedstock may be either
petroleum coke or coal, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content unless the facility reasonably determines
that it is necessary to use additional petroleum coke to
deliver additional consumer savings, in which case the facility
shall use coal for at least 35% of the total feedstock over the
term of any sourcing agreement; and (4) captures and sequesters
at least 85% of the total carbon dioxide emissions that the
facility would otherwise emit.
"Clean coal SNG facility" means a facility that uses a
gasification process to produce substitute natural gas, that
sequesters at least 90% of the total carbon dioxide emissions
that the facility would otherwise emit, that uses at least 90%
coal as a feedstock, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, and that has a valid and effective permit
to construct emission sources and air pollution control

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equipment and approval with respect to the federal regulations
for Prevention of Significant Deterioration of Air Quality
(PSD) for the plant pursuant to the federal Clean Air Act;
provided, however, a clean coal SNG brownfield facility shall
not be a clean coal SNG facility.
"Commission" means the Illinois Commerce Commission.
"Costs incurred in connection with the development and
construction of a facility" means:
(1) the cost of acquisition of all real property,
fixtures, and improvements in connection therewith and
equipment, personal property, and other property, rights,
and easements acquired that are deemed necessary for the
operation and maintenance of the facility;
(2) financing costs with respect to bonds, notes, and
other evidences of indebtedness of the Agency;
(3) all origination, commitment, utilization,
facility, placement, underwriting, syndication, credit
enhancement, and rating agency fees;
(4) engineering, design, procurement, consulting,
legal, accounting, title insurance, survey, appraisal,
escrow, trustee, collateral agency, interest rate hedging,
interest rate swap, capitalized interest, contingency, as
required by lenders, and other financing costs, and other
expenses for professional services; and
(5) the costs of plans, specifications, site study and
investigation, installation, surveys, other Agency costs

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and estimates of costs, and other expenses necessary or
incidental to determining the feasibility of any project,
together with such other expenses as may be necessary or
incidental to the financing, insuring, acquisition, and
construction of a specific project and starting up,
commissioning, and placing that project in operation.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of the Illinois Power Agency.
"Demand-response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.
"Distributed renewable energy generation device" means a
device that is:
(1) powered by wind, solar thermal energy,
photovoltaic cells and panels, biodiesel, crops and
untreated and unadulterated organic waste biomass, tree
waste, and hydropower that does not involve new
construction or significant expansion of hydropower dams;
(2) interconnected at the distribution system level of
either an electric utility as defined in this Section, an
alternative retail electric supplier as defined in Section
16-102 of the Public Utilities Act, a municipal utility as
defined in Section 3-105 of the Public Utilities Act, or a
rural electric cooperative as defined in Section 3-119 of
the Public Utilities Act;

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(3) located on the customer side of the customer's
electric meter and is primarily used to offset that
customer's electricity load; and
(4) limited in nameplate capacity to no more than 2,000
kilowatts.
"Energy efficiency" means measures that reduce the amount
of electricity or natural gas required to achieve a given end
use. "Energy efficiency" also includes measures that reduce the
total Btus of electricity and natural gas needed to meet the
end use or uses.
"Electric utility" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
"Governmental aggregator" means one or more units of local
government that individually or collectively procure
electricity to serve residential retail electrical loads
located within its or their jurisdiction.
"Local government" means a unit of local government as
defined in Section 1 of Article VII of the Illinois
Constitution.
"Low carbon energy credit" or "LCE credit" means a tradable
credit that represents the environmental attributes of one
megawatthour of energy produced from a low carbon energy

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resource.
"Low carbon energy resources" or "LCE resources" means
energy and its associated low carbon energy credit or low
carbon energy credits from a generating unit that does not emit
any air pollution, including sulfur dioxide, nitrogen oxide, or
carbon dioxide, as reported in the Generation Attribute
Tracking System. "Low carbon energy resources" or "LCE
resources" includes technology fueled by new and existing solar
photovoltaic, solar thermal, wind, hydro, nuclear, tidal
energy, wave energy, and clean coal. Notwithstanding the
provisions of this definition, generating resources fueled by
hydro or clean coal are low carbon energy resources if they
satisfy the following criteria:
(1) Hydro: the hydro facility or unit must have a total
nameplate generating capacity that does not exceed 3
megawatts.
(2) Clean coal: the electric generating facility must
use primarily coal as a feedstock and capture and sequester
at least 70% of the total carbon dioxide emissions that the
facility would otherwise emit during the period June 1,
2016 through May 31, 2018 and at least 90% of the total
carbon dioxide emissions that the facility would otherwise
emit during the period June 1, 2018 through May 31, 2021.
The power block of such a facility shall not exceed the
allowable emission rates for sulfur dioxide, nitrogen
oxides, carbon monoxide, particulates, and mercury for a

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natural gas-fired combined cycle facility the same size as
and in the same location of such a facility at the time it
obtains an approved air permit.
"Low carbon energy resources" or "LCE resources" does not
include (i) any generating unit whose costs were being
recovered through State-regulated rates as of January 1, 2015
or (ii) any generating unit for which the energy and capacity
is subject to a power purchase agreement with a term of greater
than 5 years.
"Municipality" means a city, village, or incorporated
town.
"Person" means any natural person, firm, partnership,
corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association
and includes any trustee, receiver, assignee, or personal
representative thereof.
"Project" means the planning, bidding, and construction of
a facility.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.
"Real property" means any interest in land together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other
interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.

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"Renewable energy credit" means a tradable credit that
represents the environmental attributes of a certain amount of
energy produced from a renewable energy resource.
"Renewable energy resources" includes energy and its
associated renewable energy credit or renewable energy credits
from wind, solar thermal energy, photovoltaic cells and panels,
biodiesel, anaerobic digestion, crops and untreated and
unadulterated organic waste biomass, tree waste, hydropower
that does not involve new construction or significant expansion
of hydropower dams, and other alternative sources of
environmentally preferable energy. For purposes of this Act,
landfill gas produced in the State is considered a renewable
energy resource. "Renewable energy resources" does not include
the incineration or burning of tires, garbage, general
household, institutional, and commercial waste, industrial
lunchroom or office waste, landscape waste other than tree
waste, railroad crossties, utility poles, or construction or
demolition debris, other than untreated and unadulterated
waste wood.
"Retail customer" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Revenue bond" means any bond, note, or other evidence of
indebtedness issued by the Authority, the principal and
interest of which is payable solely from revenues or income
derived from any project or activity of the Agency.
"Sequester" means permanent storage of carbon dioxide by

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injecting it into a saline aquifer, a depleted gas reservoir,
or an oil reservoir, directly or through an enhanced oil
recovery process that may involve intermediate storage,
regardless of whether these activities are conducted by a clean
coal facility, a clean coal SNG facility, a clean coal SNG
brownfield facility, or a party with which a clean coal
facility, clean coal SNG facility, or clean coal SNG brownfield
facility has contracted for such purposes.
"Sourcing agreement" means (i) in the case of an electric
utility, an agreement between the owner of a clean coal
facility and such electric utility, which agreement shall have
terms and conditions meeting the requirements of paragraph (3)
of subsection (d) of Section 1-75, (ii) in the case of an
alternative retail electric supplier, an agreement between the
owner of a clean coal facility and such alternative retail
electric supplier, which agreement shall have terms and
conditions meeting the requirements of Section 16-115(d)(5) of
the Public Utilities Act, and (iii) in case of a gas utility,
an agreement between the owner of a clean coal SNG brownfield
facility and the gas utility, which agreement shall have the
terms and conditions meeting the requirements of subsection
(h-1) of Section 9-220 of the Public Utilities Act.
"Substitute natural gas" or "SNG" means a gas manufactured
by gasification of hydrocarbon feedstock, which is
substantially interchangeable in use and distribution with
conventional natural gas.

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"Total resource cost test" or "TRC test" means a standard
that is met if, for an investment in energy efficiency or
demand-response measures, the benefit-cost ratio is greater
than one. The benefit-cost ratio is the ratio of the net
present value of the total benefits of the program to the net
present value of the total costs as calculated over the
lifetime of the measures. A total resource cost test compares
the sum of avoided electric utility costs, representing the
benefits that accrue to the system and the participant in the
delivery of those efficiency measures, as well as other
quantifiable societal benefits, including avoided natural gas
utility costs, to the sum of all incremental costs of end-use
measures that are implemented due to the program (including
both utility and participant contributions), plus costs to
administer, deliver, and evaluate each demand-side program, to
quantify the net savings obtained by substituting the
demand-side program for supply resources. In calculating
avoided costs of power and energy that an electric utility
would otherwise have had to acquire, reasonable estimates shall
be included of financial costs likely to be imposed by future
regulations and legislation on emissions of greenhouse gases.
(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491,
eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12;
98-90, eff. 7-15-13.)
(20 ILCS 3855/1-75)

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Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act
for the eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least 100,000
customers in Illinois, and, beginning with the partial planning
year commencing on January 1, 2016, the Planning and
Procurement Bureau shall include in such plans and processes
the procurement of low carbon energy credits pursuant to
subsection (d-5) of this Section for all of the utilities'
retail customers. The Planning and Procurement Bureau shall
also develop procurement plans and conduct competitive
procurement processes in accordance with the requirements of
Section 16-111.5 of the Public Utilities Act for the eligible
retail customers of small multi-jurisdictional electric
utilities that (i) on December 31, 2005 served less than
100,000 customers in Illinois and (ii) request a procurement
plan for their Illinois jurisdictional load. This Section shall
not apply to a small multi-jurisdictional utility until such
time as a small multi-jurisdictional utility requests the
Agency to prepare a procurement plan for their Illinois
jurisdictional load. For the purposes of this Section, the term

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"eligible retail customers" has the same definition as found in
Section 16-111.5(a) of the Public Utilities Act.
(1) The Agency shall each year, beginning in 2008, as
needed, issue a request for qualifications for experts or
expert consulting firms to develop the procurement plans in
accordance with Section 16-111.5 of the Public Utilities
Act. In order to qualify an expert or expert consulting
firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics, mathematics,
engineering, risk management, or a related area of
study;
(C) 10 years of experience in the electricity
sector, including managing supply risk;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit protocols and familiarity
with contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or

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the affected electric utilities.
(2) The Agency shall each year, as needed, issue a
request for qualifications for a procurement administrator
to conduct the competitive procurement processes in
accordance with Section 16-111.5 of the Public Utilities
Act. In order to qualify an expert or expert consulting
firm must have:
(A) direct previous experience administering a
large-scale competitive procurement process;
(B) an advanced degree in economics, mathematics,
engineering, or a related area of study;
(C) 10 years of experience in the electricity
sector, including risk management experience;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit and contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or
the affected electric utilities.
(3) The Agency shall provide affected utilities and
other interested parties with the lists of qualified
experts or expert consulting firms identified through the

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request for qualifications processes that are under
consideration to develop the procurement plans and to serve
as the procurement administrator. The Agency shall also
provide each qualified expert's or expert consulting
firm's response to the request for qualifications. All
information provided under this subparagraph shall also be
provided to the Commission. The Agency may provide by rule
for fees associated with supplying the information to
utilities and other interested parties. These parties
shall, within 5 business days, notify the Agency in writing
if they object to any experts or expert consulting firms on
the lists. Objections shall be based on:
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest; or
(C) evidence of inappropriate bias for or against
potential bidders or the affected utilities.
The Agency shall remove experts or expert consulting
firms from the lists within 10 days if there is a
reasonable basis for an objection and provide the updated
lists to the affected utilities and other interested
parties. If the Agency fails to remove an expert or expert
consulting firm from a list, an objecting party may seek
review by the Commission within 5 days thereafter by filing
a petition, and the Commission shall render a ruling on the
petition within 10 days. There is no right of appeal of the
Commission's ruling.

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(4) The Agency shall issue requests for proposals to
the qualified experts or expert consulting firms to develop
a procurement plan for the affected utilities and to serve
as procurement administrator.
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on the
proposals submitted and shall award contracts of up to 5
years to those selected.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to serve
as procurement administrator based on the proposals
submitted. If the Commission rejects, within 5 days, the
Agency's selection, the Agency shall submit another
recommendation within 3 days based on the proposals
submitted. The Agency shall award a 5-year contract to the
expert or expert consulting firm so selected with
Commission approval.
(b) The experts or expert consulting firms retained by the
Agency shall, as appropriate, prepare procurement plans, and
conduct a competitive procurement process as prescribed in
Section 16-111.5 of the Public Utilities Act, to ensure
adequate, reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability, for
eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least 100,000

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customers in the State of Illinois, and for eligible Illinois
retail customers of small multi-jurisdictional electric
utilities that (i) on December 31, 2005 served less than
100,000 customers in Illinois and (ii) request a procurement
plan for their Illinois jurisdictional load.
(c) Renewable portfolio standard.
(1) The procurement plans shall include cost-effective
renewable energy resources. A minimum percentage of each
utility's total supply to serve the load of eligible retail
customers, as defined in Section 16-111.5(a) of the Public
Utilities Act, procured for each of the following years
shall be generated from cost-effective renewable energy
resources: at least 2% by June 1, 2008; at least 4% by June
1, 2009; at least 5% by June 1, 2010; at least 6% by June 1,
2011; at least 7% by June 1, 2012; at least 8% by June 1,
2013; at least 9% by June 1, 2014; at least 10% by June 1,
2015; and increasing by at least 1.5% each year thereafter
to at least 25% by June 1, 2025. To the extent that it is
available, at least 75% of the renewable energy resources
used to meet these standards shall come from wind
generation and, beginning on June 1, 2011, at least the
following percentages of the renewable energy resources
used to meet these standards shall come from photovoltaics
on the following schedule: 0.5% by June 1, 2012, 1.5% by
June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015 and
thereafter. Of the renewable energy resources procured

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pursuant to this Section, at least the following
percentages shall come from distributed renewable energy
generation devices: 0.5% by June 1, 2013, 0.75% by June 1,
2014, and 1% by June 1, 2015 and thereafter. To the extent
available, half of the renewable energy resources procured
from distributed renewable energy generation shall come
from devices of less than 25 kilowatts in nameplate
capacity. Renewable energy resources procured from
distributed generation devices may also count towards the
required percentages for wind and solar photovoltaics.
Procurement of renewable energy resources from distributed
renewable energy generation devices shall be done on an
annual basis through multi-year contracts of no less than 5
years, and shall consist solely of renewable energy
credits.
The Agency shall create credit requirements for
suppliers of distributed renewable energy. In order to
minimize the administrative burden on contracting
entities, the Agency shall solicit the use of third-party
organizations to aggregate distributed renewable energy
into groups of no less than one megawatt in installed
capacity. These third-party organizations shall administer
contracts with individual distributed renewable energy
generation device owners. An individual distributed
renewable energy generation device owner shall have the
ability to measure the output of his or her distributed

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renewable energy generation device.
For purposes of this subsection (c), "cost-effective"
means that the costs of procuring renewable energy
resources do not cause the limit stated in paragraph (2) of
this subsection (c) to be exceeded and do not exceed
benchmarks based on market prices for renewable energy
resources in the region, which shall be developed by the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor and shall be subject to Commission review and
approval.
(2) For purposes of this subsection (c), the required
procurement of cost-effective renewable energy resources
for a particular year shall be measured as a percentage of
the actual amount of electricity (megawatt-hours) supplied
by the electric utility to eligible retail customers in the
planning year ending immediately prior to the procurement.
For purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For purposes
of this subsection (c), the total amount paid for electric
service includes without limitation amounts paid for
supply, transmission, distribution, surcharges, and add-on
taxes.
Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured

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pursuant to the procurement plan for any single year shall
be reduced by an amount necessary to limit the annual
estimated average net increase due to the costs of these
resources included in the amounts paid by eligible retail
customers in connection with electric service to:
(A) in 2008, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2007;
(B) in 2009, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2008 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2007;
(C) in 2010, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2009 or 1.5% of the
amount paid per kilowatthour by those customers during
the year ending May 31, 2007;
(D) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 2% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2007; and
(E) thereafter, the amount of renewable energy
resources procured pursuant to the procurement plan
for any single year shall be reduced by an amount

HB3293 - 27 - LRB099 11088 AMC 31490 b
necessary to limit the estimated average net increase
due to the cost of these resources included in the
amounts paid by eligible retail customers in
connection with electric service to no more than the
greater of 2.015% of the amount paid per kilowatthour
by those customers during the year ending May 31, 2007
or the incremental amount per kilowatthour paid for
these resources in 2011.
No later than June 30, 2011, the Commission shall
review the limitation on the amount of renewable energy
resources procured pursuant to this subsection (c) and
report to the General Assembly its findings as to
whether that limitation unduly constrains the
procurement of cost-effective renewable energy
resources.
(3) Through June 1, 2011, renewable energy resources
shall be counted for the purpose of meeting the renewable
energy standards set forth in paragraph (1) of this
subsection (c) only if they are generated from facilities
located in the State, provided that cost-effective
renewable energy resources are available from those
facilities. If those cost-effective resources are not
available in Illinois, they shall be procured in states
that adjoin Illinois and may be counted towards compliance.
If those cost-effective resources are not available in
Illinois or in states that adjoin Illinois, they shall be

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purchased elsewhere and shall be counted towards
compliance. After June 1, 2011, cost-effective renewable
energy resources located in Illinois and in states that
adjoin Illinois may be counted towards compliance with the
standards set forth in paragraph (1) of this subsection
(c). If those cost-effective resources are not available in
Illinois or in states that adjoin Illinois, they shall be
purchased elsewhere and shall be counted towards
compliance.
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the year commencing June 1, 2010, an
electric utility subject to this subsection (c) shall apply
the lesser of the maximum alternative compliance payment
rate or the most recent estimated alternative compliance
payment rate for its service territory for the
corresponding compliance period, established pursuant to
subsection (d) of Section 16-115D of the Public Utilities
Act to its retail customers that take service pursuant to
the electric utility's hourly pricing tariff or tariffs.
The electric utility shall retain all amounts collected as
a result of the application of the alternative compliance
payment rate or rates to such customers, and, beginning in
2011, the utility shall include in the information provided
under item (1) of subsection (d) of Section 16-111.5 of the
Public Utilities Act the amounts collected under the

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alternative compliance payment rate or rates for the prior
year ending May 31. Notwithstanding any limitation on the
procurement of renewable energy resources imposed by item
(2) of this subsection (c), the Agency shall increase its
spending on the purchase of renewable energy resources to
be procured by the electric utility for the next plan year
by an amount equal to the amounts collected by the utility
under the alternative compliance payment rate or rates in
the prior year ending May 31. Beginning April 1, 2012, and
each year thereafter, the Agency shall prepare a public
report for the General Assembly and Illinois Commerce
Commission that shall include, but not necessarily be
limited to:
(A) a comparison of the costs associated with the
Agency's procurement of renewable energy resources to
(1) the Agency's costs associated with electricity
generated by other types of generation facilities and
(2) the benefits associated with the Agency's
procurement of renewable energy resources; and
(B) an analysis of the rate impacts associated with
the Illinois Power Agency's procurement of renewable
resources, including, but not limited to, any
long-term contracts, on the eligible retail customers
of electric utilities.
The analysis shall include the Agency's estimate of the
total dollar impact that the Agency's procurement of

HB3293 - 30 - LRB099 11088 AMC 31490 b
renewable resources has had on the annual electricity bills
of the customer classes that comprise each eligible retail
customer class taking service from an electric utility. The
Agency's report shall also analyze how the operation of the
alternative compliance payment mechanism, any long-term
contracts, or other aspects of the applicable renewable
portfolio standards impacts the rates of customers of
alternative retail electric suppliers.
(d) Clean coal portfolio standard.
(1) The procurement plans shall include electricity
generated using clean coal. Each utility shall enter into
one or more sourcing agreements with the initial clean coal
facility, as provided in paragraph (3) of this subsection
(d), covering electricity generated by the initial clean
coal facility representing at least 5% of each utility's
total supply to serve the load of eligible retail customers
in 2015 and each year thereafter, as described in paragraph
(3) of this subsection (d), subject to the limits specified
in paragraph (2) of this subsection (d). It is the goal of
the State that by January 1, 2025, 25% of the electricity
used in the State shall be generated by cost-effective
clean coal facilities. For purposes of this subsection (d),
"cost-effective" means that the expenditures pursuant to
such sourcing agreements do not cause the limit stated in
paragraph (2) of this subsection (d) to be exceeded and do
not exceed cost-based benchmarks, which shall be developed

HB3293 - 31 - LRB099 11088 AMC 31490 b
to assess all expenditures pursuant to such sourcing
agreements covering electricity generated by clean coal
facilities, other than the initial clean coal facility, by
the procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor and shall be subject to Commission review and
approval.
A utility party to a sourcing agreement shall
immediately retire any emission credits that it receives in
connection with the electricity covered by such agreement.
Utilities shall maintain adequate records documenting
the purchases under the sourcing agreement to comply with
this subsection (d) and shall file an accounting with the
load forecast that must be filed with the Agency by July 15
of each year, in accordance with subsection (d) of Section
16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the
clean coal portfolio standard specified in this subsection
(d) if the utility enters into a sourcing agreement as
required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending

HB3293 - 32 - LRB099 11088 AMC 31490 b
immediately prior to the agreement's execution. For
purposes of this subsection (d), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For purposes
of this subsection (d), the total amount paid for electric
service includes without limitation amounts paid for
supply, transmission, distribution, surcharges and add-on
taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers

HB3293 - 33 - LRB099 11088 AMC 31490 b
during the year ending May 31, 2011 or 1.5% of the
amount paid per kilowatthour by those customers during
the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2012 or 2% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009; and
(E) thereafter, the total amount paid under
sourcing agreements with clean coal facilities
pursuant to the procurement plan for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of these
resources included in the amounts paid by eligible
retail customers in connection with electric service
to no more than the greater of (i) 2.015% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009 or (ii) the incremental amount
per kilowatthour paid for these resources in 2013.
These requirements may be altered only as provided by
statute.
No later than June 30, 2015, the Commission shall
review the limitation on the total amount paid under
sourcing agreements, if any, with clean coal facilities
pursuant to this subsection (d) and report to the General
Assembly its findings as to whether that limitation unduly

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constrains the amount of electricity generated by
cost-effective clean coal facilities that is covered by
sourcing agreements.
(3) Initial clean coal facility. In order to promote
development of clean coal facilities in Illinois, each
electric utility subject to this Section shall execute a
sourcing agreement to source electricity from a proposed
clean coal facility in Illinois (the "initial clean coal
facility") that will have a nameplate capacity of at least
500 MW when commercial operation commences, that has a
final Clean Air Act permit on the effective date of this
amendatory Act of the 95th General Assembly, and that will
meet the definition of clean coal facility in Section 1-10
of this Act when commercial operation commences. The
sourcing agreements with this initial clean coal facility
shall be subject to both approval of the initial clean coal
facility by the General Assembly and satisfaction of the
requirements of paragraph (4) of this subsection (d) and
shall be executed within 90 days after any such approval by
the General Assembly. The Agency and the Commission shall
have authority to inspect all books and records associated
with the initial clean coal facility during the term of
such a sourcing agreement. A utility's sourcing agreement
for electricity produced by the initial clean coal facility
shall include:
(A) a formula contractual price (the "contract

HB3293 - 35 - LRB099 11088 AMC 31490 b
price") approved pursuant to paragraph (4) of this
subsection (d), which shall:
(i) be determined using a cost of service
methodology employing either a level or deferred
capital recovery component, based on a capital
structure consisting of 45% equity and 55% debt,
and a return on equity as may be approved by the
Federal Energy Regulatory Commission, which in any
case may not exceed the lower of 11.5% or the rate
of return approved by the General Assembly
pursuant to paragraph (4) of this subsection (d);
and
(ii) provide that all miscellaneous net
revenue, including but not limited to net revenue
from the sale of emission allowances, if any,
substitute natural gas, if any, grants or other
support provided by the State of Illinois or the
United States Government, firm transmission
rights, if any, by-products produced by the
facility, energy or capacity derived from the
facility and not covered by a sourcing agreement
pursuant to paragraph (3) of this subsection (d) or
item (5) of subsection (d) of Section 16-115 of the
Public Utilities Act, whether generated from the
synthesis gas derived from coal, from SNG, or from
natural gas, shall be credited against the revenue

HB3293 - 36 - LRB099 11088 AMC 31490 b
requirement for this initial clean coal facility;
(B) power purchase provisions, which shall:
(i) provide that the utility party to such
sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour
times a fraction, the numerator of which is such
utility's retail market sales of electricity
(expressed in kilowatthours sold) in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)

HB3293 - 37 - LRB099 11088 AMC 31490 b
of Section 16-115 of the Public Utilities Act,
provided that the amount purchased by the utility
in any year will be limited by paragraph (2) of
this subsection (d); and
(iv) be considered pre-existing contracts in
such utility's procurement plans for eligible
retail customers;
(C) contract for differences provisions, which
shall:
(i) require the utility party to such sourcing
agreement to contract with the initial clean coal
facility in each hour with respect to an amount of
energy equal to all clean coal energy made
available from the initial clean coal facility
during such hour times a fraction, the numerator of
which is such utility's retail market sales of
electricity (expressed in kilowatthours sold) in
the utility's service territory in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this

HB3293 - 38 - LRB099 11088 AMC 31490 b
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in any
year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the
utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;

HB3293 - 39 - LRB099 11088 AMC 31490 b
(D) general provisions, which shall:
(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the
facility;
(ii) provide that utilities shall maintain
adequate records documenting purchases under the
sourcing agreements entered into to comply with
this subsection (d) and shall file an accounting
with the load forecast that must be filed with the
Agency by July 15 of each year, in accordance with
subsection (d) of Section 16-111.5 of the Public
Utilities Act;
(iii) provide that all costs associated with
the initial clean coal facility will be
periodically reported to the Federal Energy
Regulatory Commission and to purchasers in
accordance with applicable laws governing
cost-based wholesale power contracts;
(iv) permit the Illinois Power Agency to
assume ownership of the initial clean coal
facility, without monetary consideration and
otherwise on reasonable terms acceptable to the
Agency, if the Agency so requests no less than 3
years prior to the end of the stated contract term;
(v) require the owner of the initial clean coal
facility to provide documentation to the

HB3293 - 40 - LRB099 11088 AMC 31490 b
Commission each year, starting in the facility's
first year of commercial operation, accurately
reporting the quantity of carbon emissions from
the facility that have been captured and
sequestered and report any quantities of carbon
released from the site or sites at which carbon
emissions were sequestered in prior years, based
on continuous monitoring of such sites. If, in any
year after the first year of commercial operation,
the owner of the facility fails to demonstrate that
the initial clean coal facility captured and
sequestered at least 50% of the total carbon
emissions that the facility would otherwise emit
or that sequestration of emissions from prior
years has failed, resulting in the release of
carbon dioxide into the atmosphere, the owner of
the facility must offset excess emissions. Any
such carbon offsets must be permanent, additional,
verifiable, real, located within the State of
Illinois, and legally and practicably enforceable.
The cost of such offsets for the facility that are
not recoverable shall not exceed $15 million in any
given year. No costs of any such purchases of
carbon offsets may be recovered from a utility or
its customers. All carbon offsets purchased for
this purpose and any carbon emission credits

HB3293 - 41 - LRB099 11088 AMC 31490 b
associated with sequestration of carbon from the
facility must be permanently retired. The initial
clean coal facility shall not forfeit its
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in the
course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility wilfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing

HB3293 - 42 - LRB099 11088 AMC 31490 b
agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced in
subparagraphs (A)(i) through (A)(iii) of paragraph
(3) of this subsection (d), prior to an adjustment
in those inputs including, without limitation, the
capital structure and return on equity, fuel
costs, and other operations and maintenance costs
and (2) to approve the costs to be passed through
to customers under the sourcing agreement by which
the utility satisfies its statutory obligations.
Commission review shall occur no less than every 3
years, regardless of whether any adjustments have
been proposed, and shall be completed within 9
months;
(viii) limit the utility's obligation to such
amount as the utility is allowed to recover through
tariffs filed with the Commission, provided that
neither the clean coal facility nor the utility
waives any right to assert federal pre-emption or
any other argument in response to a purported
disallowance of recovery costs;
(ix) limit the utility's or alternative retail
electric supplier's obligation to incur any

HB3293 - 43 - LRB099 11088 AMC 31490 b
liability until such time as the facility is in
commercial operation and generating power and
energy and such power and energy is being delivered
to the facility busbar;
(x) provide that the owner or owners of the
initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or the
contract for differences provisions;
(xi) append documentation showing that the
formula rate and contract, insofar as they relate
to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to the
power purchase provisions, are subject to review
under the public interest standard applied by the
Federal Energy Regulatory Commission pursuant to
Sections 205 and 206 of the Federal Power Act; and
(xiii) conform with customary lender
requirements in power purchase agreements used as
the basis for financing non-utility generators.

HB3293 - 44 - LRB099 11088 AMC 31490 b
(4) Effective date of sourcing agreements with the
initial clean coal facility.
Any proposed sourcing agreement with the initial clean
coal facility shall not become effective unless the
following reports are prepared and submitted and
authorizations and approvals obtained:
(i) Facility cost report. The owner of the initial
clean coal facility shall submit to the Commission, the
Agency, and the General Assembly a front-end
engineering and design study, a facility cost report,
method of financing (including but not limited to
structure and associated costs), and an operating and
maintenance cost quote for the facility (collectively
"facility cost report"), which shall be prepared in
accordance with the requirements of this paragraph (4)
of subsection (d) of this Section, and shall provide
the Commission and the Agency access to the work
papers, relied upon documents, and any other backup
documentation related to the facility cost report.
(ii) Commission report. Within 6 months following
receipt of the facility cost report, the Commission, in
consultation with the Agency, shall submit a report to
the General Assembly setting forth its analysis of the
facility cost report. Such report shall include, but
not be limited to, a comparison of the costs associated
with electricity generated by the initial clean coal

HB3293 - 45 - LRB099 11088 AMC 31490 b
facility to the costs associated with electricity
generated by other types of generation facilities, an
analysis of the rate impacts on residential and small
business customers over the life of the sourcing
agreements, and an analysis of the likelihood that the
initial clean coal facility will commence commercial
operation by and be delivering power to the facility's
busbar by 2016. To assist in the preparation of its
report, the Commission, in consultation with the
Agency, may hire one or more experts or consultants,
the costs of which shall be paid for by the owner of
the initial clean coal facility. The Commission and
Agency may begin the process of selecting such experts
or consultants prior to receipt of the facility cost
report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,
based on the facility cost report and the Commission's
report, the General Assembly enacts authorizing
legislation approving (A) the projected price, stated
in cents per kilowatthour, to be charged for
electricity generated by the initial clean coal
facility, (B) the projected impact on residential and
small business customers' bills over the life of the
sourcing agreements, and (C) the maximum allowable
return on equity for the project; and

HB3293 - 46 - LRB099 11088 AMC 31490 b
(iv) Commission review. If the General Assembly
enacts authorizing legislation pursuant to
subparagraph (iii) approving a sourcing agreement, the
Commission shall, within 90 days of such enactment,
complete a review of such sourcing agreement. During
such time period, the Commission shall implement any
directive of the General Assembly, resolve any
disputes between the parties to the sourcing agreement
concerning the terms of such agreement, approve the
form of such agreement, and issue an order finding that
the sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one or
more contractors or suppliers for the engineering,
procurement and construction of the components
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the core
plant based on one or more front end engineering
and design studies for the gasification island and
related facilities. The core plant shall include
all civil, structural, mechanical, electrical,
control, and safety systems.

HB3293 - 47 - LRB099 11088 AMC 31490 b
(ii) an estimate of the capital cost of the
balance of the plant, including any capital costs
associated with sequestration of carbon dioxide
emissions and all interconnects and interfaces
required to operate the facility, such as
transmission of electricity, construction or
backfeed power supply, pipelines to transport
substitute natural gas or carbon dioxide, potable
water supply, natural gas supply, water supply,
water discharge, landfill, access roads, and coal
delivery.
The quoted construction costs shall be expressed
in nominal dollars as of the date that the quote is
prepared and shall include capitalized financing costs
during construction, taxes, insurance, and other
owner's costs, and an assumed escalation in materials
and labor beyond the date as of which the construction
cost quote is expressed.
(B) The front end engineering and design study for
the gasification island and the cost study for the
balance of plant shall include sufficient design work
to permit quantification of major categories of
materials, commodities and labor hours, and receipt of
quotes from vendors of major equipment required to
construct and operate the clean coal facility.
(C) The facility cost report shall also include an

HB3293 - 48 - LRB099 11088 AMC 31490 b
operating and maintenance cost quote that will provide
the estimated cost of delivered fuel, personnel,
maintenance contracts, chemicals, catalysts,
consumables, spares, and other fixed and variable
operations and maintenance costs. The delivered fuel
cost estimate will be provided by a recognized third
party expert or experts in the fuel and transportation
industries. The balance of the operating and
maintenance cost quote, excluding delivered fuel
costs, will be developed based on the inputs provided
by duly licensed engineering and construction firms
performing the construction cost quote, potential
vendors under long-term service agreements and plant
operating agreements, or recognized third party plant
operator or operators.
The operating and maintenance cost quote
(including the cost of the front end engineering and
design study) shall be expressed in nominal dollars as
of the date that the quote is prepared and shall
include taxes, insurance, and other owner's costs, and
an assumed escalation in materials and labor beyond the
date as of which the operating and maintenance cost
quote is expressed.
(D) The facility cost report shall also include an
analysis of the initial clean coal facility's ability
to deliver power and energy into the applicable

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regional transmission organization markets and an
analysis of the expected capacity factor for the
initial clean coal facility.
(E) Amounts paid to third parties unrelated to the
owner or owners of the initial clean coal facility to
prepare the core plant construction cost quote,
including the front end engineering and design study,
and the operating and maintenance cost quote will be
reimbursed through Coal Development Bonds.
(5) Re-powering and retrofitting coal-fired power
plants previously owned by Illinois utilities to qualify as
clean coal facilities. During the 2009 procurement
planning process and thereafter, the Agency and the
Commission shall consider sourcing agreements covering
electricity generated by power plants that were previously
owned by Illinois utilities and that have been or will be
converted into clean coal facilities, as defined by Section
1-10 of this Act. Pursuant to such procurement planning
process, the owners of such facilities may propose to the
Agency sourcing agreements with utilities and alternative
retail electric suppliers required to comply with
subsection (d) of this Section and item (5) of subsection
(d) of Section 16-115 of the Public Utilities Act, covering
electricity generated by such facilities. In the case of
sourcing agreements that are power purchase agreements,
the contract price for electricity sales shall be

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established on a cost of service basis. In the case of
sourcing agreements that are contracts for differences,
the contract price from which the reference price is
subtracted shall be established on a cost of service basis.
The Agency and the Commission may approve any such utility
sourcing agreements that do not exceed cost-based
benchmarks developed by the procurement administrator, in
consultation with the Commission staff, Agency staff and
the procurement monitor, subject to Commission review and
approval. The Commission shall have authority to inspect
all books and records associated with these clean coal
facilities during the term of any such contract.
(6) Costs incurred under this subsection (d) or
pursuant to a contract entered into under this subsection
(d) shall be deemed prudently incurred and reasonable in
amount and the electric utility shall be entitled to full
cost recovery pursuant to the tariffs filed with the
Commission.
(d-5) Low carbon portfolio standard.
(1) Beginning with the partial planning year
commencing on January 1, 2016, the procurement plans shall
include cost-effective low carbon energy credits from low
carbon energy resources in an amount equal to 70% of each
electric utility's annual retail sales of electricity to
retail customers in the State during the planning year
immediately prior to the development of the procurement

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plan. Provided, however, that the LCE credits must be
procured from generating units consistent with the Minimum
Internal Resource Requirements for capacity established by
the applicable regional transmission organization.
The initial procurement described in this paragraph
(1) shall procure the LCE credits needed during the time
period January 1, 2016 through May 31, 2021 by entering
into contracts between one and 5 years in length.
Notwithstanding whether a procurement event is conducted
pursuant to Section 16-111.5 of the Public Utilities Act,
the Agency and Commission shall immediately initiate an
initial procurement process upon the effective date of this
amendatory Act of the 99th General Assembly, which shall
procure cost-effective LCE credits from LCE resources for
the period January 1, 2016 through May 31, 2021, in an
amount equal to, for each planning year, 70% of each
electric utility's annual retail sales of electricity to
retail customers in the State during those same months in
the planning year immediately prior to the procurement.
Provided, however, that for the partial planning year
commencing January 1, 2016, the procurement process shall
procure cost-effective LCE credits from LCE resources for
the period January 1, 2016 through May 31, 2016, in an
amount equal to 70% of each electric utility's annual
retail sales of electricity to retail customers in the
State during those same months in the planning year

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immediately prior to the procurement. No later than October
1, 2015, the Agency shall submit to the Commission a
proposed initial procurement plan for the period January 1,
2016 through May 31, 2021 consistent with the provisions of
this paragraph (1). The Commission shall, after notice and
hearing, but no later than November 1, 2015, approve the
plan or approve with modification. The Agency shall conduct
the request for proposals process no later than December 1,
2015, and each utility shall enter into binding contractual
arrangements with the winning suppliers. The procurement
shall be completed no later than January 1, 2016.
Following the initial procurement event described in
this paragraph (1), the Agency and Commission shall
initiate additional procurement processes, as necessary,
to replace any LCE credits that were not delivered due to a
supplier default or in the event that additional LCE
credits must be procured for a time period commencing after
May 31, 2021. In the event that LCE credits must be
procured for a period after May 31, 2021, such credits
shall be procured in planning year increments. Any such
processes shall be conducted regardless of whether a
procurement event is conducted pursuant to Section
16-111.5 of the Public Utilities Act. Each utility shall
enter into binding contractual arrangements with the
winning suppliers.
For the purposes of this subsection (d-5),

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"cost-effective" means that the costs of procuring LCE
credits do not cause the limit stated in paragraph (2) of
this subsection (d-5) to be exceeded and do not exceed
benchmarks based on market prices for renewable energy
resources in the region, which shall be developed by the
procurement administrator, in consultation with the
Commission staff, the Agency, and the procurement monitor
and shall be subject to Commission review and approval.
To further ensure that customers benefit from the
procurement of LCE credits, winning suppliers must commit
to reimburse the cost of LCE credits for each planning year
that the forecasted average revenue for the LCE resource or
resources that produced such credits exceeds a set a price
per megawatthour. For the purposes of this paragraph (1),
revenue shall be based on actual forward market prices. If
a winning supplier's LCE credits are produced from more
than one LCE resource, the computation required by this
paragraph shall be performed by aggregating all of the LCE
resources that produced the winning supplier's LCE credits
and calculating a single value. The electric utilities
shall credit such amounts to customers through the
automatic adjustment clause authorized by subsection (k)
of Section 16-108 of the Public Utilities Act. Such credits
shall appear as a separate line item on customers' bills.
(2) For the purposes of this subsection (d-5), the
required procurement of cost-effective LCE credits for a

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particular period shall be measured as a percentage of the
actual amount of electricity (megawatthours) delivered by
the electric utility to all retail customers in the
planning year ending immediately prior to the procurement,
as incorporated in the procurement plan approved by the
Commission. For the purposes of this subsection (d-5), the
amount paid per kilowatthour means the total amount paid
for electric service expressed on a per kilowatthour basis.
For the purposes of this subsection (d-5), the total amount
paid for electric service includes without limitation
amounts paid for supply, transmission, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(d-5), the total of LCE credits procured pursuant to the
procurement plan for any single year shall be subject to
the limitations of this paragraph (2). Such procurement
shall be reduced for all retail customers based on the
amount necessary to limit the annual estimated average net
increase due to the costs of these credits included in the
amounts paid by eligible retail customers in connection
with electric service to no more than 2.015% of the amount
paid per kilowatthour by eligible retail customers during
the year ending May 31, 2009. The result of this
computation shall apply to and reduce the procurement for
all retail customers, and all such customers shall pay the
same single, uniform cents per kilowatthour charge

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pursuant to subsection (k) of Section 16-108 of the Public
Utilities Act.
The calculations required by this paragraph (2) shall
be made only once for each procurement plan year at the
time that the LCE credits are procured. Once the
determination as to the amount of LCE credits to procure is
made based on the calculations set forth in this paragraph
(2) and the utility executes contracts procuring those
amounts, no subsequent rate impact determinations shall be
made and no adjustments to those contract amounts shall be
allowed. All costs incurred under such contracts and in
implementing this subsection (d-5) shall be recovered by
the electric utility as provided in this Section.
No later than June 30, 2018, the Commission shall
review the limitation on the amount of LCE credits procured
pursuant to this subsection (d-5) and report to the General
Assembly its findings as to whether that limitation unduly
constrains the procurement of cost-effective LCE credits.
(3) Cost-effective LCE credits procured from LCE
resources located in Illinois and in states that adjoin
Illinois may be counted towards compliance with the
standards set forth in paragraph (1) of this subsection
(d-5). If those cost-effective resources are not available
in Illinois or in states that adjoin Illinois, they shall
be purchased elsewhere and shall be counted towards
compliance. Notwithstanding the location from which

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cost-effective LCE credits are purchased or procured, such
credits shall satisfy the applicable definitions set forth
in Section 1-10 of this Act.
(4) The electric utility shall retire all LCE credits
used to comply with the requirements of this subsection
(d-5).
(5) Beginning April 1, 2018, and each year thereafter,
the Agency shall prepare a public report for the General
Assembly and Illinois Commerce Commission that shall
include, but not necessarily be limited to:
(A) a comparison of the costs associated with the
Agency's procurement of LCE credits to (1) the Agency's
costs associated with electricity generated by other
types of generation facilities and (2) the benefits
associated with the Agency's procurement of LCE
credits; and
(B) an analysis of the rate impacts associated with
the Illinois Power Agency's procurement of LCE
credits, including, but not limited to, any long-term
contracts, on the retail customers of electric
utilities.
(6) Electric utilities shall be entitled to recover all
of the costs associated with the procurement of LCE credits
through an automatic adjustment clause tariff in
accordance with subsection (k) of Section 16-108 of the
Public Utilities Act.

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(7) This subsection (d-5) is inoperative after
December 31, 2021 so long as the State has adopted and
implemented a plan pursuant to the provisions of Section
111(d) of the federal Clean Air Act, 42 U.S.C. 7411(d), as
amended. If such a plan has not been adopted and
implemented by December 31, 2021, this Section is
inoperative after December 31 of the year in which the
State adopts and implements such a plan.
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards
set forth in Section 16-111.5 of the Public Utilities Act.
(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive procurement
process.
(i) A renewable energy credit, carbon emission credit, or
LCE credit can only be used once to comply with a single
portfolio standard as set forth in subsection (c), subsection
(d), or subsection (d-5) of this Section, respectively. A
renewable energy credit, carbon emission credit, or LCE credit

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cannot be used to satisfy the requirements of more than one
portfolio standard. In the event more than one type of credit
is issued for the same megawatthour of energy, only one credit
can be used to satisfy the requirements of a single portfolio
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatthour of
energy.
(Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11;
97-618, eff. 10-26-11; 97-658, eff. 1-13-12; 97-813, eff.
7-13-12; 98-463, eff. 8-16-13.)
Section 10. The Public Utilities Act is amended by changing
Sections 16-108, 16-111.5, and 16-127 as follows:
(220 ILCS 5/16-108)
Sec. 16-108. Recovery of costs associated with the
provision of delivery and other services.
(a) An electric utility shall file a delivery services
tariff with the Commission at least 210 days prior to the date
that it is required to begin offering such services pursuant to
this Act. An electric utility shall provide the components of
delivery services that are subject to the jurisdiction of the
Federal Energy Regulatory Commission at the same prices, terms
and conditions set forth in its applicable tariff as approved
or allowed into effect by that Commission. The Commission shall
otherwise have the authority pursuant to Article IX to review,

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approve, and modify the prices, terms and conditions of those
components of delivery services not subject to the jurisdiction
of the Federal Energy Regulatory Commission, including the
authority to determine the extent to which such delivery
services should be offered on an unbundled basis. In making any
such determination the Commission shall consider, at a minimum,
the effect of additional unbundling on (i) the objective of
just and reasonable rates, (ii) electric utility employees, and
(iii) the development of competitive markets for electric
energy services in Illinois.
(b) The Commission shall enter an order approving, or
approving as modified, the delivery services tariff no later
than 30 days prior to the date on which the electric utility
must commence offering such services. The Commission may
subsequently modify such tariff pursuant to this Act.
(c) The electric utility's tariffs shall define the classes
of its customers for purposes of delivery services charges.
Delivery services shall be priced and made available to all
retail customers electing delivery services in each such class
on a nondiscriminatory basis regardless of whether the retail
customer chooses the electric utility, an affiliate of the
electric utility, or another entity as its supplier of electric
power and energy. Charges for delivery services shall be cost
based, and shall allow the electric utility to recover the
costs of providing delivery services through its charges to its
delivery service customers that use the facilities and services

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associated with such costs. Such costs shall include the costs
of owning, operating and maintaining transmission and
distribution facilities. The Commission shall also be
authorized to consider whether, and if so to what extent, the
following costs are appropriately included in the electric
utility's delivery services rates: (i) the costs of that
portion of generation facilities used for the production and
absorption of reactive power in order that retail customers
located in the electric utility's service area can receive
electric power and energy from suppliers other than the
electric utility, and (ii) the costs associated with the use
and redispatch of generation facilities to mitigate
constraints on the transmission or distribution system in order
that retail customers located in the electric utility's service
area can receive electric power and energy from suppliers other
than the electric utility. Nothing in this subsection shall be
construed as directing the Commission to allocate any of the
costs described in (i) or (ii) that are found to be
appropriately included in the electric utility's delivery
services rates to any particular customer group or geographic
area in setting delivery services rates.
(d) The Commission shall establish charges, terms and
conditions for delivery services that are just and reasonable
and shall take into account customer impacts when establishing
such charges. In establishing charges, terms and conditions for
delivery services, the Commission shall take into account

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voltage level differences. A retail customer shall have the
option to request to purchase electric service at any delivery
service voltage reasonably and technically feasible from the
electric facilities serving that customer's premises provided
that there are no significant adverse impacts upon system
reliability or system efficiency. A retail customer shall also
have the option to request to purchase electric service at any
point of delivery that is reasonably and technically feasible
provided that there are no significant adverse impacts on
system reliability or efficiency. Such requests shall not be
unreasonably denied.
(e) Electric utilities shall recover the costs of
installing, operating or maintaining facilities for the
particular benefit of one or more delivery services customers,
including without limitation any costs incurred in complying
with a customer's request to be served at a different voltage
level, directly from the retail customer or customers for whose
benefit the costs were incurred, to the extent such costs are
not recovered through the charges referred to in subsections
(c) and (d) of this Section.
(f) An electric utility shall be entitled but not required
to implement transition charges in conjunction with the
offering of delivery services pursuant to Section 16-104. If an
electric utility implements transition charges, it shall
implement such charges for all delivery services customers and
for all customers described in subsection (h), but shall not

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implement transition charges for power and energy that a retail
customer takes from cogeneration or self-generation facilities
located on that retail customer's premises, if such facilities
meet the following criteria:
(i) the cogeneration or self-generation facilities
serve a single retail customer and are located on that
retail customer's premises (for purposes of this
subparagraph and subparagraph (ii), an industrial or
manufacturing retail customer and a third party contractor
that is served by such industrial or manufacturing customer
through such retail customer's own electrical distribution
facilities under the circumstances described in subsection
(vi) of the definition of "alternative retail electric
supplier" set forth in Section 16-102, shall be considered
a single retail customer);
(ii) the cogeneration or self-generation facilities
either (A) are sized pursuant to generally accepted
engineering standards for the retail customer's electrical
load at that premises (taking into account standby or other
reliability considerations related to that retail
customer's operations at that site) or (B) if the facility
is a cogeneration facility located on the retail customer's
premises, the retail customer is the thermal host for that
facility and the facility has been designed to meet that
retail customer's thermal energy requirements resulting in
electrical output beyond that retail customer's electrical

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demand at that premises, comply with the operating and
efficiency standards applicable to "qualifying facilities"
specified in title 18 Code of Federal Regulations Section
292.205 as in effect on the effective date of this
amendatory Act of 1999;
(iii) the retail customer on whose premises the
facilities are located either has an exclusive right to
receive, and corresponding obligation to pay for, all of
the electrical capacity of the facility, or in the case of
a cogeneration facility that has been designed to meet the
retail customer's thermal energy requirements at that
premises, an identified amount of the electrical capacity
of the facility, over a minimum 5-year period; and
(iv) if the cogeneration facility is sized for the
retail customer's thermal load at that premises but exceeds
the electrical load, any sales of excess power or energy
are made only at wholesale, are subject to the jurisdiction
of the Federal Energy Regulatory Commission, and are not
for the purpose of circumventing the provisions of this
subsection (f).
If a generation facility located at a retail customer's
premises does not meet the above criteria, an electric utility
implementing transition charges shall implement a transition
charge until December 31, 2006 for any power and energy taken
by such retail customer from such facility as if such power and
energy had been delivered by the electric utility. Provided,

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however, that an industrial retail customer that is taking
power from a generation facility that does not meet the above
criteria but that is located on such customer's premises will
not be subject to a transition charge for the power and energy
taken by such retail customer from such generation facility if
the facility does not serve any other retail customer and
either was installed on behalf of the customer and for its own
use prior to January 1, 1997, or is both predominantly fueled
by byproducts of such customer's manufacturing process at such
premises and sells or offers an average of 300 megawatts or
more of electricity produced from such generation facility into
the wholesale market. Such charges shall be calculated as
provided in Section 16-102, and shall be collected on each
kilowatt-hour delivered under a delivery services tariff to a
retail customer from the date the customer first takes delivery
services until December 31, 2006 except as provided in
subsection (h) of this Section. Provided, however, that an
electric utility, other than an electric utility providing
service to at least 1,000,000 customers in this State on
January 1, 1999, shall be entitled to petition for entry of an
order by the Commission authorizing the electric utility to
implement transition charges for an additional period ending no
later than December 31, 2008. The electric utility shall file
its petition with supporting evidence no earlier than 16
months, and no later than 12 months, prior to December 31,
2006. The Commission shall hold a hearing on the electric

HB3293 - 65 - LRB099 11088 AMC 31490 b
utility's petition and shall enter its order no later than 8
months after the petition is filed. The Commission shall
determine whether and to what extent the electric utility shall
be authorized to implement transition charges for an additional
period. The Commission may authorize the electric utility to
implement transition charges for some or all of the additional
period, and shall determine the mitigation factors to be used
in implementing such transition charges; provided, that the
Commission shall not authorize mitigation factors less than
110% of those in effect during the 12 months ended December 31,
2006. In making its determination, the Commission shall
consider the following factors: the necessity to implement
transition charges for an additional period in order to
maintain the financial integrity of the electric utility; the
prudence of the electric utility's actions in reducing its
costs since the effective date of this amendatory Act of 1997;
the ability of the electric utility to provide safe, adequate
and reliable service to retail customers in its service area;
and the impact on competition of allowing the electric utility
to implement transition charges for the additional period.
(g) The electric utility shall file tariffs that establish
the transition charges to be paid by each class of customers to
the electric utility in conjunction with the provision of
delivery services. The electric utility's tariffs shall define
the classes of its customers for purposes of calculating
transition charges. The electric utility's tariffs shall

HB3293 - 66 - LRB099 11088 AMC 31490 b
provide for the calculation of transition charges on a
customer-specific basis for any retail customer whose average
monthly maximum electrical demand on the electric utility's
system during the 6 months with the customer's highest monthly
maximum electrical demands equals or exceeds 3.0 megawatts for
electric utilities having more than 1,000,000 customers, and
for other electric utilities for any customer that has an
average monthly maximum electrical demand on the electric
utility's system of one megawatt or more, and (A) for which
there exists data on the customer's usage during the 3 years
preceding the date that the customer became eligible to take
delivery services, or (B) for which there does not exist data
on the customer's usage during the 3 years preceding the date
that the customer became eligible to take delivery services, if
in the electric utility's reasonable judgment there exists
comparable usage information or a sufficient basis to develop
such information, and further provided that the electric
utility can require customers for which an individual
calculation is made to sign contracts that set forth the
transition charges to be paid by the customer to the electric
utility pursuant to the tariff.
(h) An electric utility shall also be entitled to file
tariffs that allow it to collect transition charges from retail
customers in the electric utility's service area that do not
take delivery services but that take electric power or energy
from an alternative retail electric supplier or from an

HB3293 - 67 - LRB099 11088 AMC 31490 b
electric utility other than the electric utility in whose
service area the customer is located. Such charges shall be
calculated, in accordance with the definition of transition
charges in Section 16-102, for the period of time that the
customer would be obligated to pay transition charges if it
were taking delivery services, except that no deduction for
delivery services revenues shall be made in such calculation,
and usage data from the customer's class shall be used where
historical usage data is not available for the individual
customer. The customer shall be obligated to pay such charges
on a lump sum basis on or before the date on which the customer
commences to take service from the alternative retail electric
supplier or other electric utility, provided, that the electric
utility in whose service area the customer is located shall
offer the customer the option of signing a contract pursuant to
which the customer pays such charges ratably over the period in
which the charges would otherwise have applied.
(i) An electric utility shall be entitled to add to the
bills of delivery services customers charges pursuant to
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
and Section 16-114 of this Act, Section 5-5 of the Electricity
Infrastructure Maintenance Fee Law, Section 6-5 of the
Renewable Energy, Energy Efficiency, and Coal Resources
Development Law of 1997, and Section 13 of the Energy
Assistance Act.
(j) If a retail customer that obtains electric power and

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energy from cogeneration or self-generation facilities
installed for its own use on or before January 1, 1997,
subsequently takes service from an alternative retail electric
supplier or an electric utility other than the electric utility
in whose service area the customer is located for any portion
of the customer's electric power and energy requirements
formerly obtained from those facilities (including that amount
purchased from the utility in lieu of such generation and not
as standby power purchases, under a cogeneration displacement
tariff in effect as of the effective date of this amendatory
Act of 1997), the transition charges otherwise applicable
pursuant to subsections (f), (g), or (h) of this Section shall
not be applicable in any year to that portion of the customer's
electric power and energy requirements formerly obtained from
those facilities, provided, that for purposes of this
subsection (j), such portion shall not exceed the average
number of kilowatt-hours per year obtained from the
cogeneration or self-generation facilities during the 3 years
prior to the date on which the customer became eligible for
delivery services, except as provided in subsection (f) of
Section 16-110.
(k) The electric utility shall be entitled to recover
through tariffed charges all of the costs associated with the
purchase of low carbon energy credits from low carbon energy
resources to meet the requirements of subsection (d-5) of
Section 1-75 of the Illinois Power Agency Act. Such costs shall

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be allocated across all retail customers through a single,
uniform cents per kilowatt-hour charge applicable to all retail
customers, which shall appear as a separate line item on each
customer's bill.
The electric utility shall be entitled to recover all costs
associated with the purchase of low carbon energy credits from
low carbon energy resources through an automatic adjustment
clause tariff applicable to all of the utility's retail
customers that allows the electric utility to adjust its
tariffed charges on a quarterly basis for changes in its costs
incurred to purchase such resources and credits, if any,
without the need to file a general delivery services rate case.
The electric utility's collections pursuant to such an
automatic adjustment clause tariff shall be subject to annual
review, reconciliation, and true-up against actual costs by the
Commission pursuant to a procedure that shall be specified in
the electric utility's automatic adjustment clause tariff and
that shall be approved by the Commission in connection with its
approval of such tariff. The procedure shall provide that any
difference between the electric utility's collection pursuant
to the automatic adjustment charge for an annual period and the
electric utility's actual costs of renewable energy resources
and low carbon energy credits from low carbon energy resources
for that same annual period shall be refunded to or collected
from, as applicable, the electric utility's delivery services
customers in subsequent periods.

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(Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)
(220 ILCS 5/16-111.5)
Sec. 16-111.5. Provisions relating to procurement.
(a) An electric utility that on December 31, 2005 served at
least 100,000 customers in Illinois shall procure power and
energy for its eligible retail customers in accordance with the
applicable provisions set forth in Section 1-75 of the Illinois
Power Agency Act and this Section and, beginning with the
partial planning year commencing on January 1, 2016, shall
procure low carbon energy credits from low carbon energy
resources for all retail customers in its service area in
accordance with the applicable provisions set forth in Section
1-75 of the Illinois Power Agency Act and this Section. A small
multi-jurisdictional electric utility that on December 31,
2005 served less than 100,000 customers in Illinois may elect
to procure power and energy for all or a portion of its
eligible Illinois retail customers in accordance with the
applicable provisions set forth in this Section and Section
1-75 of the Illinois Power Agency Act. This Section shall not
apply to a small multi-jurisdictional utility until such time
as a small multi-jurisdictional utility requests the Illinois
Power Agency to prepare a procurement plan for its eligible
retail customers. "Eligible retail customers" for the purposes
of this Section means those retail customers that purchase
power and energy from the electric utility under fixed-price

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bundled service tariffs, other than those retail customers
whose service is declared or deemed competitive under Section
16-113 and those other customer groups specified in this
Section, including self-generating customers, customers
electing hourly pricing, or those customers who are otherwise
ineligible for fixed-price bundled tariff service. Those
customers that are excluded from the definition of "eligible
retail customers" shall not be included in the procurement
plan's electric supply service plan load requirements, and the
utility shall procure any supply requirements, including
capacity, ancillary services, and hourly priced energy, in the
applicable markets as needed to serve those customers, provided
that the utility may include in its procurement plan load
requirements for the load that is associated with those retail
customers whose service has been declared or deemed competitive
pursuant to Section 16-113 of this Act to the extent that those
customers are purchasing power and energy during one of the
transition periods identified in subsection (b) of Section
16-113 of this Act.
(b) A procurement plan shall be prepared for each electric
utility consistent with the applicable requirements of the
Illinois Power Agency Act and this Section. For purposes of
this Section, Illinois electric utilities that are affiliated
by virtue of a common parent company are considered to be a
single electric utility. Small multi-jurisdictional utilities
may request a procurement plan for a portion of or all of its

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Illinois load. Each procurement plan shall analyze the
projected balance of supply and demand for eligible retail
customers over a 5-year period with the first planning year
beginning on June 1 of the year following the year in which the
plan is filed. The plan shall specifically identify the
wholesale products to be procured following plan approval, and
shall follow all the requirements set forth in the Public
Utilities Act and all applicable State and federal laws,
statutes, rules, or regulations, as well as Commission orders.
Nothing in this Section precludes consideration of contracts
longer than 5 years and related forecast data. Unless specified
otherwise in this Section, in the procurement plan or in the
implementing tariff, any procurement occurring in accordance
with this plan shall be competitively bid through a request for
proposals process. Approval and implementation of the
procurement plan shall be subject to review and approval by the
Commission according to the provisions set forth in this
Section. A procurement plan shall include each of the following
components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and

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(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this
Act, both current and projected; and
(ii) supply side needs that are projected to be
offset by purchases of renewable energy resources, if
any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than

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procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from eligible retail customers;
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service
territory is located, including, but not limited
to, any applicable capacity or dispatch
requirements;
(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be

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executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including but not limited to monthly 5 x 16 peak period
block energy, monthly off-peak wrap energy, monthly 7 x
24 energy, annual 5 x 16 energy, annual off-peak wrap
energy, annual 7 x 24 energy, monthly capacity, annual
capacity, peak load capacity obligations, capacity
purchase plan, and ancillary services;
(v) proposed term structures for each wholesale
product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk.
(4) Proposed procedures for balancing loads. The
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)

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hourly balancing of supply and demand and (ii) the criteria
for portfolio re-balancing in the event of significant
shifts in load.
(c) The procurement process set forth in Section 1-75 of
the Illinois Power Agency Act and subsection (e) of this
Section shall be administered by a procurement administrator
and monitored by a procurement monitor.
(1) The procurement administrator shall:
(i) design the final procurement process in
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section following
Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids; these
benchmarks shall be submitted to the Commission for
review and approval on a confidential basis prior to
the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to

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determine whether bidders are willing to lower the
price of bids that meet the benchmarks approved by the
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and shall
be conducted in a fair and unbiased manner; in
conducting the negotiations, there shall be no
disclosure of any information derived from proposals
submitted by competing bidders; if information is
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the

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progress of the procurement process;
(iii) provide an independent confidential report
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans
approved by the Commission for each utility that on
December 31, 2005 provided electric service to a least
100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and
consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), the planning
process shall be conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring
power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by

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July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall cover
the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load and expected-load
scenario for the load of the eligible retail customers. The
utility shall provide supporting data and assumptions for
each of the scenarios.
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be
procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided to
each affected electric utility. An affected utility shall
have 30 days following the date of posting to provide
comment to the Agency on the procurement plan. Other
interested entities also may comment on the procurement
plan. All comments submitted to the Agency shall be
specific, supported by data or other detailed analyses,
and, if objecting to all or a portion of the procurement
plan, accompanied by specific alternative wording or

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proposals. All comments shall be posted on the Agency's and
Commission's websites. During this 30-day comment period,
the Agency shall hold at least one public hearing within
each utility's service area for the purpose of receiving
public comment on the procurement plan. Within 14 days
following the end of the 30-day review period, the Agency
shall revise the procurement plan as necessary based on the
comments received and file the procurement plan with the
Commission and post the procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days after
the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90 days
after the filing of the procurement plan by the Illinois
Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(e) The procurement process shall include each of the
following components:

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(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also
administer the prequalification process, including
evaluation of credit worthiness, compliance with
procurement rules, and agreement to the standard form
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,
shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet

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generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation
by winning bidders, and the bidders must agree to the terms
of the contract in advance so that winning bids are
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.
As part of the development of the procurement process, the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products that
will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that
difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific

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products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals shall
set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event
of supplier default or failure of the procurement process
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if the
amount of supply is 200 megawatts or greater, and if
there are more than 60 days remaining of the contract
term. If both of these conditions are met, and the
default results in termination of the contract, the
utility shall immediately notify the Illinois Power

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Agency that a request for proposals must be issued to
procure replacement power, and the procurement
administrator shall run an additional procurement
event. If the contracted supply of the defaulting
supplier is less than 200 megawatts or there are less
than 60 days remaining of the contract term, the
utility shall procure power and energy from the
applicable regional transmission organization market,
including ancillary services, capacity, and day-ahead
or real time energy, or both, for the duration of the
contract term to replace the contracted supply;
provided, however, that if a needed product is not
available through the regional transmission
organization market it shall be purchased from the
wholesale market.
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low
supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that

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would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new
request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient
supply provided under contracts awarded through the
procurement process to fully meet the electric
utility's load requirement, the utility shall meet the
load requirement by procuring power and energy from the
applicable regional transmission organization market,
including ancillary services, capacity, and day-ahead
or real time energy or both; provided, however, that if
a needed product is not available through the regional
transmission organization market it shall be purchased
from the wholesale market.
(6) The procurement process described in this
subsection is exempt from the requirements of the Illinois
Procurement Code, pursuant to Section 20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,

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the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria and
other factors observed in the process. The procurement monitor
also shall submit a confidential report to the Commission
within 2 business days after opening the sealed bids. The
report shall contain the procurement monitor's assessment of
bidder behavior in the process as well as an assessment of the
procurement administrator's compliance with the procurement
process and rules. The Commission shall review the confidential
reports submitted by the procurement administrator and
procurement monitor, and shall accept or reject the
recommendations of the procurement administrator within 2
business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility shall
enter into binding contractual arrangements with the winning
suppliers using the standard form contracts; except that the
utility shall not be required either directly or indirectly to
execute the contracts if a tariff that is consistent with
subsection (l) of this Section has not been approved and placed
into effect for that utility.
(h) The names of the successful bidders and the load
weighted average of the winning bid prices for each contract

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type and for each contract term shall be made available to the
public at the time of Commission approval of a procurement
event. The Commission, the procurement monitor, the
procurement administrator, the Illinois Power Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding information
in a manner consistent with all applicable laws, rules,
regulations, and tariffs. Confidential information, including
the confidential reports submitted by the procurement
administrator and procurement monitor pursuant to subsection
(f) of this Section, shall not be made publicly available and
shall not be discoverable by any party in any proceeding,
absent a compelling demonstration of need, nor shall those
reports be admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other date
as may be required by the Commission from time to time, the
utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs
associated with the procurement and computed in accordance with
the tariffs filed pursuant to subsection (l) of this Section
and approved by the Commission.
(j) Within 60 days following the effective date of this
amendatory Act, each electric utility that on December 31, 2005

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provided electric service to at least 100,000 customers in
Illinois shall prepare and file with the Commission an initial
procurement plan, which shall conform in all material respects
to the requirements of the procurement plan set forth in
subsection (b); provided, however, that the Illinois Power
Agency Act shall not apply to the initial procurement plan
prepared pursuant to this subsection. The initial procurement
plan shall identify the portfolio of power and energy products
to be procured and delivered for the period June 2008 through
May 2009, and shall identify the proposed procurement
administrator, who shall have the same experience and expertise
as is required of a procurement administrator hired pursuant to
Section 1-75 of the Illinois Power Agency Act. Copies of the
procurement plan shall be posted and made publicly available on
the Commission's website. The initial procurement plan may
include contracts for renewable resources that extend beyond
May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be
filed. Within 7 days after the date the utility's response

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is due, the Commission shall determine whether a hearing is
necessary. If it determines that a hearing is necessary, it
shall require the hearing to be completed and issue an
order on the procurement plan within 60 days after the
filing of the procurement plan by the electric utility.
(ii) The order shall approve or modify the procurement
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The
Commission shall approve the procurement plan if the
Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(k) In order to promote price stability for residential and
small commercial customers during the transition to
competition in Illinois, and notwithstanding any other
provision of this Act, each electric utility subject to this
Section shall enter into one or more multi-year financial swap
contracts that become effective on the effective date of this
amendatory Act. These contracts may be executed with generators
and power marketers, including affiliated interests of the
electric utility. These contracts shall be for a term of no
more than 5 years and shall, for each respective utility or for
any Illinois electric utilities that are affiliated by virtue
of a common parent company and that are thereby considered a

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single electric utility for purposes of this subsection (k),
not exceed in the aggregate 3,000 megawatts for any hour of the
year. The contracts shall be financial contracts and not energy
sales contracts. The contracts shall be executed as
transactions under a negotiated master agreement based on the
form of master agreement for financial swap contracts sponsored
by the International Swaps and Derivatives Association, Inc.
and shall be considered pre-existing contracts in the
utilities' procurement plans for residential and small
commercial customers. Costs incurred pursuant to a contract
authorized by this subsection (k) shall be deemed prudently
incurred and reasonable in amount and the electric utility
shall be entitled to full cost recovery pursuant to the tariffs
filed with the Commission.
(k-5) In order to promote price stability for residential
and small commercial customers during the infrastructure
investment program described in subsection (b) of Section
16-108.5 of this Act, and notwithstanding any other provision
of this Act or the Illinois Power Agency Act, for each electric
utility that serves more than one million retail customers in
Illinois, the Illinois Power Agency shall conduct a procurement
event within 120 days after October 26, 2011 (the effective
date of Public Act 97-616) and may procure contracts for energy
and renewable energy credits for the period June 1, 2013
through December 31, 2017 that satisfy the requirements of this
subsection (k-5), including the benchmarks described in this

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subsection. These contracts shall be entered into as the result
of a competitive procurement event, and, to the extent that any
provisions of this Section or the Illinois Power Agency Act do
not conflict with this subsection (k-5), such provisions shall
apply to the procurement event. The energy contracts shall be
for 24 hour by 7 day supply over a term that runs from the first
delivery year through December 31, 2017. For a utility that
serves over 2 million customers, the energy contracts shall be
multi-year with pricing escalating at 2.5% per annum. The
energy contracts may be designed as financial swaps or may
require physical delivery.
Within 30 days of October 26, 2011 (the effective date of
Public Act 97-616), each such utility shall submit to the
Agency updated load forecasts for the period June 1, 2013
through December 31, 2017. The megawatt volume of the contracts
shall be based on the updated load forecasts of the minimum
monthly on-peak or off-peak average load requirements shown in
the forecasts, taking into account any existing energy
contracts in effect as well as the expected migration of the
utility's customers to alternative retail electric suppliers.
The renewable energy credit volume shall be based on the number
of credits that would satisfy the requirements of subsection
(c) of Section 1-75 of the Illinois Power Agency Act, subject
to the rate impact caps and other provisions of subsection (c)
of Section 1-75 of the Illinois Power Agency Act. The
evaluation of contract bids in the competitive procurement

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events for energy and for renewable energy credits shall
incorporate price benchmarks set collaboratively by the
Agency, the procurement administrator, the staff of the
Commission, and the procurement monitor. If the contracts are
swap contracts, then they shall be executed as transactions
under a negotiated master agreement based on the form of master
agreement for financial swap contracts sponsored by the
International Swaps and Derivatives Association, Inc. Costs
incurred pursuant to a contract authorized by this subsection
(k-5) shall be deemed prudently incurred and reasonable in
amount and the electric utility shall be entitled to full cost
recovery pursuant to the tariffs filed with the Commission.
The cost of administering the procurement event described
in this subsection (k-5) shall be paid by the winning supplier
or suppliers to the procurement administrator through a
supplier fee. In the event that there is no winning supplier
for a particular utility, such utility will pay the procurement
administrator for the costs associated with the procurement
event, and those costs shall not be a recoverable expense.
Nothing in this subsection (k-5) is intended to alter the
recovery of costs for any other procurement event.
(l) An electric utility shall recover its costs incurred
under this Section, including, but not limited to, the costs of
procuring power and energy demand-response resources under
this Section. The utility shall file with the initial
procurement plan its proposed tariffs through which its costs

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of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to pass
through both the costs incurred by the utility in procuring a
supply of electric power and energy for the applicable customer
classes with no mark-up or return on the price paid by the
utility for that supply, plus any just and reasonable costs
that the utility incurs in arranging and providing for the
supply of electric power and energy. The formula rate or charge
shall also contain provisions that ensure that its application
does not result in over or under recovery due to changes in
customer usage and demand patterns, and that provide for the
correction, on at least an annual basis, of any accounting
errors that may occur. A utility shall recover through the
tariff all reasonable costs incurred to implement or comply
with any procurement plan that is developed and put into effect
pursuant to Section 1-75 of the Illinois Power Agency Act and
this Section, including any fees assessed by the Illinois Power
Agency, costs associated with load balancing, and contingency
plan costs. The electric utility shall also recover its full
costs of procuring electric supply for which it contracted
before the effective date of this Section in conjunction with
the provision of full requirements service under fixed-price
bundled service tariffs subsequent to December 31, 2006. All
such costs shall be deemed to have been prudently incurred. The

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pass-through tariffs that are filed and approved pursuant to
this Section shall not be subject to review under, or in any
way limited by, Section 16-111(i) of this Act. All of the costs
incurred by the electric utility associated with the purchase
of low carbon energy credits in accordance with subsection
(d-5) of Section 1-75 of the Illinois Power Agency Act shall be
recovered through a tariff or tariffs applicable to all of the
retail customers in the utility's service area pursuant to
subsection (k) of Section 16-108 of this Act and shall not be
recovered through the electric utility's tariffed charges for
electric power and energy supply to its eligible retail
customers.
(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following the
effective date of this amendatory Act.
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and
cost responsibility therefor among themselves in proportion to
their requirements.

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(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any recommendations
for change.
(p) An electric utility subject to this Section may propose
to invest, lease, own, or operate an electric generation
facility as part of its procurement plan, provided the utility
demonstrates that such facility is the least-cost option to
provide electric service to eligible retail customers. If the
facility is shown to be the least-cost option and is included
in a procurement plan prepared in accordance with Section 1-75
of the Illinois Power Agency Act and this Section, then the
electric utility shall make a filing pursuant to Section 8-406
of this Act, and may request of the Commission any statutory
relief required thereunder. If the Commission grants all of the
necessary approvals for the proposed facility, such supply
shall thereafter be considered as a pre-existing contract under
subsection (b) of this Section. The Commission shall in any
order approving a proposal under this subsection specify how
the utility will recover the prudently incurred costs of
investing in, leasing, owning, or operating such generation
facility through just and reasonable rates charged to eligible
retail customers. Cost recovery for facilities included in the
utility's procurement plan pursuant to this subsection shall
not be subject to review under or in any way limited by the
provisions of Section 16-111(i) of this Act. Nothing in this

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Section is intended to prohibit a utility from filing for a
fuel adjustment clause as is otherwise permitted under Section
9-220 of this Act.
(Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11;
97-813, eff. 7-13-12.)
(220 ILCS 5/16-127)
Sec. 16-127. Environmental disclosure.
(a) Effective January 1, 2013, every electric utility and
alternative retail electric supplier shall provide the
following information, to the maximum extent practicable, to
its customers on a quarterly basis:
(i) the known sources of electricity supplied,
broken-out by percentages, of biomass power, coal-fired
power, hydro power, natural gas-fired power, nuclear
power, oil-fired power, solar power, wind power and other
resources, respectively;
(ii) a pie-chart that graphically depicts the
percentages of the sources of the electricity supplied as
set forth in subparagraph (i) of this subsection; and
(iii) a pie-chart that graphically depicts the
quantity of renewable energy resources procured pursuant
to Section 1-75 of the Illinois Power Agency Act as a
percentage of electricity supplied to serve eligible
retail customers as defined in Section 16-111.5(a) of this
Act; and .

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(iv) after May 31, 2016, a pie-chart that graphically
depicts the quantity of low carbon energy credits from low
carbon energy resources procured pursuant to Section 1-75
of the Illinois Power Agency Act as a percentage of the
actual load of retail customers within its service area.
(b) In addition, every electric utility and alternative
retail electric supplier shall provide, to the maximum extent
practicable, to its customers on a quarterly basis, a
standardized chart in a format to be determined by the
Commission in a rule following notice and hearings which
provides the amounts of carbon dioxide, nitrogen oxides and
sulfur dioxide emissions and nuclear waste attributable to the
known sources of electricity supplied as set forth in
subparagraph (i) of subsection (a) of this Section.
(c) The electric utilities and alternative retail electric
suppliers may provide their customers with such other
information as they believe relevant to the information
required in subsections (a) and (b) of this Section. All of the
information required in subsections (a) and (b) of this Section
shall be made available by the electric utilities or
alternative retail electric suppliers either in an electronic
medium, such as on a website or by electronic mail, or through
the U.S. Postal Service.
(d) For the purposes of subsection (a) of this Section,
"biomass" means dedicated crops grown for energy production and
organic wastes.

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(e) All of the information provided in subsections (a) and
(b) of this Section shall be presented to the Commission for
inclusion in its World Wide Web Site.
(Source: P.A. 97-1092, eff. 1-1-13.)
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance