Bill Text: IL HB4876 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. In provisions concerning the certification of alternative retail electric suppliers, provides that the alternative retail electric supplier shall publish notice of its application in the official State newspaper within 14 days (rather than 10 days) following the date of its filing. Provides that, no later than 60 days (rather than 45 days) after a complete application is properly filed with the Illinois Commerce Commission, and such notice is published, the Commission shall issue its order granting or denying the application. Provides that, in determining the level of technical, financial, and managerial resources and abilities which an applicant must demonstrate, the Commission shall consider the applicant's commitment of resources to the management of its sales and marketing staff through affirmative managerial policies, independent audits, technology, hands-on field monitoring, and training and, for applicants who have sales personnel or sales agents within the State, the applicant's managerial presence within the State. Provides that the Commission shall grant the application for a certificate of service authority if it finds, among other things, that the applicant will comply with all applicable federal, State, regional, and industry rules, policies, practices, procedures, and tariffs for the use, operation, and maintenance of the safety, integrity, and reliability, of the interconnected electric transmission system.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2026-04-17 - Rule 19(a) / Re-referred to Rules Committee [HB4876 Detail]

Download: Illinois-2025-HB4876-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4876 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
220 ILCS 5/16-115
Amends the Public Utilities Act. In provisions concerning the certification of alternative retail electric suppliers, provides that the alternative retail electric supplier shall publish notice of its application in the official State newspaper within 14 days (rather than 10 days) following the date of its filing. Provides that, no later than 60 days (rather than 45 days) after a complete application is properly filed with the Illinois Commerce Commission, and such notice is published, the Commission shall issue its order granting or denying the application. Provides that, in determining the level of technical, financial, and managerial resources and abilities which an applicant must demonstrate, the Commission shall consider the applicant's commitment of resources to the management of its sales and marketing staff through affirmative managerial policies, independent audits, technology, hands-on field monitoring, and training and, for applicants who have sales personnel or sales agents within the State, the applicant's managerial presence within the State. Provides that the Commission shall grant the application for a certificate of service authority if it finds, among other things, that the applicant will comply with all applicable federal, State, regional, and industry rules, policies, practices, procedures, and tariffs for the use, operation, and maintenance of the safety, integrity, and reliability, of the interconnected electric transmission system.
LRB104 19124 AAS 32569 b
A BILL FOR
HB4876 LRB104 19124 AAS 32569 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by changing
Section 16-115 as follows:
(220 ILCS 5/16-115)
Sec. 16-115. Certification of alternative retail electric
suppliers.
(a) Any alternative retail electric supplier must obtain a
certificate of service authority from the Commission in
accordance with this Section before serving any retail
customer or other user located in this State. An alternative
retail electric supplier may request, and the Commission may
grant, a certificate of service authority for the entire State
or for a specified geographic area of the State. A certificate
granted pursuant to this Section is not property, and the
grant of a certificate to an entity does not create a property
interest in the certificate. This Section does not diminish
the existing rights of a certificate holder to notice and
hearing as proscribed by the Illinois Administrative Procedure
Act and in rules adopted by the Commission.
(b) An alternative retail electric supplier seeking a
certificate of service authority shall file with the

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Commission a verified application containing information
showing that the applicant meets the requirements of this
Section. The alternative retail electric supplier shall
publish notice of its application in the official State
newspaper within 14 10 days following the date of its filing.
No later than 60 45 days after a complete application is
properly filed with the Commission, and such notice is
published, the Commission shall issue its order granting or
denying the application.
(c) An application for a certificate of service authority
shall identify the area or areas in which the applicant
intends to offer service and the types of services it intends
to offer. Applicants that seek to serve residential or small
commercial retail customers within a geographic area that is
smaller than an electric utility's service area shall submit
evidence demonstrating that the designation of this smaller
area does not violate Section 16-115A. An applicant that seeks
to serve residential or small commercial retail customers may
state in its application for certification any limitations
that will be imposed on the number of customers or maximum load
to be served.
(d) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application and
such other information as the applicant may submit:
(1) That the applicant possesses sufficient technical,

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financial, and managerial resources and abilities to
provide the service for which it seeks a certificate of
service authority. In determining the level of technical,
financial, and managerial resources and abilities which
the applicant must demonstrate, the Commission shall
consider (i) the characteristics, including the size and
financial sophistication, of the customers that the
applicant seeks to serve, and (ii) whether the applicant
seeks to provide electric power and energy using property,
plant, and equipment which it owns, controls, or operates,
and (iii) the applicant's commitment of resources to the
management of its sales and marketing staff through
affirmative managerial policies, independent audits,
technology, hands-on field monitoring, and training and,
for applicants who have sales personnel or sales agents
within this State, the applicant's managerial presence
within this State;
(2) That the applicant will comply with all applicable
federal, State, regional, and industry rules, policies,
practices, and procedures, and tariffs for the use,
operation, and maintenance of the safety, integrity, and
reliability, of the interconnected electric transmission
system;
(3) That the applicant will only provide service to
retail customers in an electric utility's service area
that are eligible to take delivery services under this

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Act;
(4) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish and provide the information required
by Section 16-112. Any data related to contracts for the
purchase and sale of electric power and energy shall be
made available for review by the Staff of the Commission
on a confidential and proprietary basis and only to the
extent and for the purposes which the Commission
determines are reasonably necessary in order to carry out
the purposes of this Act;
(5) That the applicant will procure renewable energy
resources in accordance with Section 16-115D of this Act,
and will source electricity from clean coal facilities, as
defined in Section 1-10 of the Illinois Power Agency Act,
in amounts at least equal to the percentages set forth in
subsections (c) and (d) of Section 1-75 of the Illinois
Power Agency Act. For purposes of this Section:
(i) (blank);
(ii) (blank);
(iii) the required sourcing of electricity
generated by clean coal facilities, other than the
initial clean coal facility, shall be limited to the
amount of electricity that can be procured or sourced
at a price at or below the benchmarks approved by the
Commission each year in accordance with item (1) of

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subsection (c) and items (1) and (5) of subsection (d)
of Section 1-75 of the Illinois Power Agency Act;
(iv) all alternative retail electric suppliers
shall execute a sourcing agreement to source
electricity from the initial clean coal facility, on
the terms set forth in paragraphs (3) and (4) of
subsection (d) of Section 1-75 of the Illinois Power
Agency Act, except that in lieu of the requirements in
subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
paragraph (3) of that subsection (d), the applicant
shall execute one or more of the following:
(1) if the sourcing agreement is a power
purchase agreement, a contract with the initial
clean coal facility to purchase in each hour an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier'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 sales of
electricity (expressed in kilowatthours sold) in

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the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act; or
(2) if the sourcing agreement is a contract
for differences, a contract with the initial clean
coal facility in each hour with respect to an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier'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 sales of
electricity (expressed in kilowatthours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the

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requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act;
(v) if, in any year after the first year of
commercial operation, the owner of the clean coal
facility fails to demonstrate to the Commission 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 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 costs of any such offsets
that are not recoverable shall not exceed $15,000,000
in any given year. No costs of any such purchases of
carbon offsets may be recovered from an alternative
retail electric supplier or its customers. All carbon
offsets purchased for this purpose and any carbon
emission credits associated with sequestration of

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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 that
apply to the initial clean coal facility 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;
(vi) The Commission shall, after notice and
hearing, revoke the certification of any alternative
retail electric supplier that fails to execute a
sourcing agreement with the initial clean coal
facility as required by item (5) of subsection (d) of
this Section. 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 item (4) of subsection (d) of Section 1-75 of the
Illinois Power Agency Act, and shall be executed

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within 90 days after any such approval by the General
Assembly. The Commission shall not accept an
application for certification from an alternative
retail electric supplier that has lost certification
under this subsection (d), or any corporate affiliate
thereof, for at least one year from the date of
revocation;
(6) With respect to an applicant that seeks to serve
residential or small commercial retail customers, that the
area to be served by the applicant and any limitations it
proposes on the number of customers or maximum amount of
load to be served meet the provisions of Section 16-115A,
provided, that the Commission can extend the time for
considering such a certificate request by up to 90 days,
and can schedule hearings on such a request;
(7) That the applicant meets the requirements of
subsection (a) of Section 16-128;
(8) That the applicant discloses whether the applicant
is the subject of any lawsuit filed in a court of law or
formal complaint filed with a regulatory agency alleging
fraud, deception, or unfair marketing practices or other
similar allegations and, if the applicant is the subject
of such lawsuit or formal complaint, the applicant shall
identify the name, case number, and jurisdiction of each
lawsuit or complaint, and that the applicant is capable of
fulfilling its obligations as an alternative retail

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electric supplier in Illinois notwithstanding any lawsuit
or complaint. For the purpose of this item (8), "formal
complaint" includes only those complaints that seek a
binding determination from a State or federal regulatory
body;
(9) That the applicant shall at all times remain in
compliance with requirements for certification stated in
this Section and as the Commission may establish by rule;
(10) That the applicant shall execute and maintain a
license or permit bond issued by a qualifying surety or
insurance company authorized to transact business in the
State of Illinois in favor of the People of the State of
Illinois. The amount of the bond shall equal $30,000 if
the applicant seeks to serve only nonresidential retail
customers with maximum electrical demands of one megawatt
or more, $150,000 if the applicant seeks to serve only
nonresidential retail customers with annual electrical
consumption greater than 15,000 kilowatt-hours, or
$500,000 if the applicant seeks to serve all eligible
customers. Applicants shall be required to submit an
additional $500,000 bond if the applicant intends to
market to residential customers using in-person
solicitations. The bonds shall be conditioned upon the
full and faithful performance of all duties and
obligations of the applicant as an alternative retail
electric supplier, shall be valid for a period of not less

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than one year, and may be drawn upon in whole or in part to
satisfy any penalties imposed, and finally adjudicated, by
the Commission pursuant to Section 16-115B for a violation
of the applicant's duties or obligations, except that the
total amount of claims and penalties against the bond
shall not exceed the penal sum of the bond and shall not
include any consequential or punitive damage. The cost of
the bond shall be paid by the applicant. The applicant
shall file a copy of this bond, with a notarized
verification page from the issuer, as part of its
application for certification under 83 Ill. Adm. Code 451;
and
(11) That the applicant will comply with all other
applicable laws and regulations.
(d-3) The Commission may deny with prejudice an
application in which the applicant fails to provide the
Commission with information sufficient for the Commission to
grant the application.
(d-5) (Blank).
(e) A retail customer that owns a cogeneration or
self-generation facility and that seeks certification only to
provide electric power and energy from such facility to retail
customers at separate locations which customers are both (i)
owned by, or a subsidiary or other corporate affiliate of,
such applicant and (ii) eligible for delivery services, shall
be granted a certificate of service authority upon filing an

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application and notifying the Commission that it has entered
into an agreement with the relevant electric utilities
pursuant to Section 16-118. Provided, however, that if the
retail customer owning such cogeneration or self-generation
facility would not be charged a transition charge due to the
exemption provided under subsection (f) of Section 16-108
prior to the certification, and the retail customers at
separate locations are taking delivery services in conjunction
with purchasing power and energy from the facility, the retail
customer on whose premises the facility is located shall not
thereafter be required to pay transition charges on the power
and energy that such retail customer takes from the facility.
(f) The Commission shall have the authority to promulgate
rules and regulations to carry out the provisions of this
Section. On or before May 1, 1999, the Commission shall adopt a
rule or rules applicable to the certification of those
alternative retail electric suppliers that seek to serve only
nonresidential retail customers with maximum electrical
demands of one megawatt or more which shall provide for (i)
expedited and streamlined procedures for certification of such
alternative retail electric suppliers and (ii) specific
criteria which, if met by any such alternative retail electric
supplier, shall constitute the demonstration of technical,
financial and managerial resources and abilities to provide
service required by paragraph (1) of subsection (d) of this
Section, such as a requirement to post a bond or letter of

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credit, from a responsible surety or financial institution, of
sufficient size for the nature and scope of the services to be
provided; demonstration of adequate insurance for the scope
and nature of the services to be provided; and experience in
providing similar services in other jurisdictions.
(g) An alternative retail electric supplier may seek
confidential treatment for the following information by filing
an affidavit with the Commission so long as the affidavit
meets the requirements in this subsection (g):
(1) the total annual kilowatt-hours delivered and sold
by an alternative retail electric supplier to retail
customers within each utility service territory and the
total annual kilowatt-hours delivered and sold by an
alternative retail electric supplier to retail customers
in all utility service territories in the preceding
calendar year as required by 83 Ill. Adm. Code 451.770;
(2) the total peak demand supplied by an alternative
retail electric supplier during the previous year in each
utility service territory as required by 83 Ill. Adm. Code
465.40;
(3) a good faith estimate of the amount an alternative
retail electric supplier expects to be obliged to pay the
utility under single billing tariffs during the next 12
months and the amount of any bond or letter of credit used
to demonstrate an alternative retail electric supplier's
credit worthiness to provide single billing services

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pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
The affidavit must be filed contemporaneously with the
information for which confidential treatment is sought and
must clearly state that the affiant seeks confidential
treatment pursuant to this subsection (g) and the information
for which confidential treatment is sought must be clearly
identified on the confidential version of the document filed
with the Commission. The affidavit must be accompanied by a
"confidential" and a "public" version of the document or
documents containing the information for which confidential
treatment is sought.
If the alternative retail electric supplier has met the
affidavit requirements of this subsection (g), then the
Commission shall afford confidential treatment to the
information identified in the affidavit for a period of 2
years after the date the affidavit is received by the
Commission.
Nothing in this subsection (g) prevents an alternative
retail electric supplier from filing a petition with the
Commission seeking confidential treatment for information
beyond that identified in this subsection (g) or for
information contained in other reports or documents filed with
the Commission other than annual rate reports.
Nothing in this subsection (g) prevents the Commission, on
its own motion, or any party from filing a formal petition with
the Commission seeking to reconsider the conferring of

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confidential status on an item of information afforded
confidential treatment pursuant to this subsection (g).
The Commission, on its own motion, may at any time
initiate a docketed proceeding to investigate the continued
applicability of this subsection (g) to the information
contained in items (i), (ii), and (iii) of this subsection
(g). If, at the end of such investigation, the Commission
determines that a particular item of information should no
longer be eligible for the affidavit-based process outlined in
this subsection (g), the Commission may enter an order to
remove that item from the list of items eligible for the
process set forth in this subsection (g). Notwithstanding any
such order, in the event the Commission makes such a
determination, nothing in this subsection (g) prevents an
alternative retail electric supplier desiring confidential
treatment for such information from filing a formal petition
with the Commission seeking confidential treatment for such
information.
(Source: P.A. 101-590, eff. 1-1-20; 102-958, eff. 1-1-23.)