Bill Text: IL HB5168 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB5168 Detail]

Download: Illinois-2023-HB5168-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5168 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED:
220 ILCS 5/16-115D
Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities.
LRB103 38021 CES 68153 b
A BILL FOR
HB5168 LRB103 38021 CES 68153 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 16-115D as follows:
(220 ILCS 5/16-115D)
Sec. 16-115D. Renewable portfolio standard for alternative
retail electric suppliers and electric utilities operating
outside their service territories.
(a) An alternative retail electric supplier shall be
responsible for procuring cost-effective renewable energy
resources as required under item (5) of subsection (d) of
Section 16-115 of this Act as outlined herein:
(1) The definition of renewable energy resources
contained in Section 1-10 of the Illinois Power Agency Act
applies to all renewable energy resources required to be
procured by alternative retail electric suppliers.
(2) Through May 31, 2017, the quantity of renewable
energy resources shall be measured as a percentage of the
actual amount of metered electricity (megawatt-hours)
delivered by the alternative retail electric supplier to
Illinois retail customers during the 12-month period June
1 through May 31, commencing June 1, 2009, and the

HB5168 - 2 - LRB103 38021 CES 68153 b
comparable 12-month period in each year thereafter except
as provided in item (6) of this subsection (a).
(3) Through May 31, 2017, the quantity of renewable
energy resources shall be in amounts at least equal to the
annual percentages set forth in item (1) of subsection (c)
of Section 1-75 of the Illinois Power Agency Act. At least
60% of the renewable energy resources procured pursuant to
items (1) and (3) of subsection (b) of this Section shall
come from wind generation and, starting June 1, 2015, at
least 6% of the renewable energy resources procured
pursuant to items (1) and (3) of subsection (b) of this
Section shall come from solar photovoltaics. If, in any
given year, an alternative retail electric supplier does
not purchase at least these levels of renewable energy
resources, then the alternative retail electric supplier
shall make alternative compliance payments, as described
in subsection (d) of this Section.
(3.5) For the delivery year commencing June 1, 2017,
the quantity of renewable energy resources shall be at
least 13.0% of the uncovered amount of metered electricity
(megawatt-hours) delivered by the alternative retail
electric supplier to Illinois retail customers during the
delivery year, which uncovered amount shall equal 50% of
such metered electricity delivered by the alternative
retail electric supplier. For the delivery year commencing
June 1, 2018, the quantity of renewable energy resources

HB5168 - 3 - LRB103 38021 CES 68153 b
shall be at least 14.5% of the uncovered amount of metered
electricity (megawatt-hours) delivered by the alternative
retail electric supplier to Illinois retail customers
during the delivery year, which uncovered amount shall
equal 25% of such metered electricity delivered by the
alternative retail electric supplier. At least 32% of the
renewable energy resources procured by the alternative
retail electric supplier for its uncovered portion under
this paragraph (3.5) shall come from wind or photovoltaic
generation. The renewable energy resources procured under
this paragraph (3.5) shall not include any resources from
a facility whose costs were being recovered through rates
regulated by any state or states on or after January 1,
2017.
(4) The quantity and source of renewable energy
resources shall be independently verified through the PJM
Environmental Information System Generation Attribute
Tracking System (PJM-GATS) or the Midwest Renewable Energy
Tracking System (M-RETS), which shall document the
location of generation, resource type, month, and year of
generation for all qualifying renewable energy resources
that an alternative retail electric supplier uses to
comply with this Section. No later than June 1, 2009, the
Illinois Power Agency shall provide PJM-GATS, M-RETS, and
alternative retail electric suppliers with all information
necessary to identify resources located in Illinois,

HB5168 - 4 - LRB103 38021 CES 68153 b
within states that adjoin Illinois or within portions of
the PJM and MISO footprint in the United States that
qualify under the definition of renewable energy resources
in Section 1-10 of the Illinois Power Agency Act for
compliance with this Section 16-115D. Alternative retail
electric suppliers shall not be subject to the
requirements in item (3) of subsection (c) of Section 1-75
of the Illinois Power Agency Act.
(5) All renewable energy credits used to comply with
this Section shall be permanently retired.
(6) The required procurement of renewable energy
resources by an alternative retail electric supplier shall
apply to all metered electricity delivered to Illinois
retail customers by the alternative retail electric
supplier pursuant to contracts executed or extended after
March 15, 2009.
(b) Compliance obligations.
(1) Through May 31, 2017, an alternative retail
electric supplier shall comply with the renewable energy
portfolio standards by making an alternative compliance
payment, as described in subsection (d) of this Section,
to cover at least one-half of the alternative retail
electric supplier's compliance obligation for the period
prior to June 1, 2017.
(2) For the delivery years beginning June 1, 2017 and
June 1, 2018, an alternative retail electric supplier need

HB5168 - 5 - LRB103 38021 CES 68153 b
not make any alternative compliance payment to meet any
portion of its compliance obligation, as set forth in
paragraph (3.5) of subsection (a) of this Section.
(3) An alternative retail electric supplier shall use
any one or combination of the following means to cover the
remainder of the alternative retail electric supplier's
compliance obligation, as set forth in paragraphs (3) and
(3.5) of subsection (a) of this Section, not covered by an
alternative compliance payment made under paragraphs (1)
and (2) of this subsection (b) of this Section:
(A) Generating electricity using renewable energy
resources identified pursuant to item (4) of
subsection (a) of this Section.
(B) Purchasing electricity generated using
renewable energy resources identified pursuant to item
(4) of subsection (a) of this Section through an
energy contract.
(C) Purchasing renewable energy credits from
renewable energy resources identified pursuant to item
(4) of subsection (a) of this Section.
(D) Making an alternative compliance payment as
described in subsection (d) of this Section.
(c) Use of renewable energy credits.
(1) Renewable energy credits that are not used by an
alternative retail electric supplier to comply with a
renewable portfolio standard in a compliance year may be

HB5168 - 6 - LRB103 38021 CES 68153 b
banked and carried forward up to 2 12-month compliance
periods after the compliance period in which the credit
was generated for the purpose of complying with a
renewable portfolio standard in those 2 subsequent
compliance periods. For the 2009-2010 and 2010-2011
compliance periods, an alternative retail electric
supplier may use renewable credits generated after
December 31, 2008 and before June 1, 2009 to comply with
this Section.
(2) An alternative retail electric supplier is
responsible for demonstrating that a renewable energy
credit used to comply with a renewable portfolio standard
is derived from a renewable energy resource and that the
alternative retail electric supplier has not used, traded,
sold, or otherwise transferred the credit.
(3) The same renewable energy credit may be used by an
alternative retail electric supplier to comply with a
federal renewable portfolio standard and a renewable
portfolio standard established under this Act. An
alternative retail electric supplier that uses a renewable
energy credit to comply with a renewable portfolio
standard imposed by any other state may not use the same
credit to comply with a renewable portfolio standard
established under this Act.
(d) Alternative compliance payments.
(1) The Commission shall establish and post on its

HB5168 - 7 - LRB103 38021 CES 68153 b
website, within 5 business days after entering an order
approving a procurement plan pursuant to Section 1-75 of
the Illinois Power Agency Act, maximum alternative
compliance payment rates, expressed on a per kilowatt-hour
basis, that will be applicable in the first compliance
period following the plan approval. A separate maximum
alternative compliance payment rate shall be established
for the service territory of each electric utility that is
subject to subsection (c) of Section 1-75 of the Illinois
Power Agency Act. Each maximum alternative compliance
payment rate shall be equal to the maximum allowable
annual estimated average net increase due to the costs of
the utility's purchase of renewable energy resources
included in the amounts paid by eligible retail customers
in connection with electric service, as described in item
(2) of subsection (c) of Section 1-75 of the Illinois
Power Agency Act for the compliance period, and as
established in the approved procurement plan. Following
each procurement event through which renewable energy
resources are purchased for one or more of these utilities
for the compliance period, the Commission shall establish
and post on its website estimates of the alternative
compliance payment rates, expressed on a per kilowatt-hour
basis, that shall apply for that compliance period.
Posting of the estimates shall occur no later than 10
business days following the procurement event, however,

HB5168 - 8 - LRB103 38021 CES 68153 b
the Commission shall not be required to establish and post
such estimates more often than once per calendar month. By
July 1 of each year, the Commission shall establish and
post on its website the actual alternative compliance
payment rates for the preceding compliance year. For
compliance years beginning prior to June 1, 2014, each
alternative compliance payment rate shall be equal to the
total amount of dollars that the utility contracted to
spend on renewable resources, excepting the additional
incremental cost attributable to solar resources, for the
compliance period divided by the forecasted load of
eligible retail customers, at the customers' meters, as
previously established in the Commission-approved
procurement plan for that compliance year. For compliance
years commencing on or after June 1, 2014, each
alternative compliance payment rate shall be equal to the
total amount of dollars that the utility contracted to
spend on all renewable resources for the compliance period
divided by the forecasted load of retail customers for
which the utility is procuring renewable energy resources
in a given delivery year, at the customers' meters, as
previously established in the Commission-approved
procurement plan for that compliance year. The actual
alternative compliance payment rates may not exceed the
maximum alternative compliance payment rates established
for the compliance period. For purposes of this subsection

HB5168 - 9 - LRB103 38021 CES 68153 b
(d), the term "eligible retail customers" has the same
meaning as found in Section 16-111.5 of this Act.
(2) In any given compliance year, an alternative
retail electric supplier may elect to use alternative
compliance payments to comply with all or a part of the
applicable renewable portfolio standard. In the event that
an alternative retail electric supplier elects to make
alternative compliance payments to comply with all or a
part of the applicable renewable portfolio standard, such
payments shall be made by September 1, 2010 for the period
of June 1, 2009 to May 1, 2010 and by September 1 of each
year thereafter for the subsequent compliance period, in
the manner and form as determined by the Commission. Any
election by an alternative retail electric supplier to use
alternative compliance payments is subject to review by
the Commission under subsection (e) of this Section.
(3) An alternative retail electric supplier's
alternative compliance payments shall be computed
separately for each electric utility's service territory
within which the alternative retail electric supplier
provided retail service during the compliance period,
provided that the electric utility was subject to
subsection (c) of Section 1-75 of the Illinois Power
Agency Act. For each service territory, the alternative
retail electric supplier's alternative compliance payment
shall be equal to (i) the actual alternative compliance

HB5168 - 10 - LRB103 38021 CES 68153 b
payment rate established in item (1) of this subsection
(d), multiplied by (ii) the actual amount of metered
electricity delivered by the alternative retail electric
supplier to retail customers for which the supplier has a
compliance obligation within the service territory during
the compliance period, multiplied by (iii) the result of
one minus the ratios of the quantity of renewable energy
resources used by the alternative retail electric supplier
to comply with the requirements of this Section within the
service territory to the product of the percentage of
renewable energy resources required under item (3) or
(3.5) of subsection (a) of this Section and the actual
amount of metered electricity delivered by the alternative
retail electrical supplier to retail customers for which
the supplier has a compliance obligation within the
service territory during the compliance period.
(4) Through May 31, 2017, all alternative compliance
payments by alternative retail electric suppliers shall be
deposited in the Illinois Power Agency Renewable Energy
Resources Fund and used to purchase renewable energy
credits, in accordance with Section 1-56 of the Illinois
Power Agency Act. Beginning April 1, 2012 and by April 1 of
each year thereafter, the Illinois Power Agency shall
submit an annual report to the General Assembly, the
Commission, and alternative retail electric suppliers that
shall include, but not be limited to:

HB5168 - 11 - LRB103 38021 CES 68153 b
(A) the total amount of alternative compliance
payments received in aggregate from alternative retail
electric suppliers by planning year for all previous
planning years in which the alternative compliance
payment was in effect;
(B) the amount of those payments utilized to
purchased renewable energy credits itemized by the
date of each procurement in which the payments were
utilized; and
(C) the unused and remaining balance in the Agency
Renewable Energy Resources Fund attributable to those
payments.
(4.5) Beginning with the delivery year commencing June
1, 2017, all alternative compliance payments by
alternative retail electric suppliers shall be remitted to
the applicable electric utility. To facilitate this
remittance, each electric utility shall file a tariff with
the Commission no later than 30 days following the
effective date of this amendatory Act of the 99th General
Assembly, which the Commission shall approve, after notice
and hearing, no later than 45 days after its filing. The
Illinois Power Agency shall use such payments to increase
the amount of renewable energy resources otherwise to be
procured under subsection (c) of Section 1-75 of the
Illinois Power Agency Act.
(5) The Commission, in consultation with the Illinois

HB5168 - 12 - LRB103 38021 CES 68153 b
Power Agency, shall establish a process or proceeding to
consider the impact of a federal renewable portfolio
standard, if enacted, on the operation of the alternative
compliance mechanism, which shall include, but not be
limited to, developing, to the extent permitted by the
applicable federal statute, an appropriate methodology to
apportion renewable energy credits retired as a result of
alternative compliance payments made in accordance with
this Section. The Commission shall commence any such
process or proceeding within 35 days after enactment of a
federal renewable portfolio standard.
(e) Each alternative retail electric supplier shall, by
September 1, 2010 and by September 1 of each year thereafter,
prepare and submit to the Commission a report, in a format to
be specified by the Commission, that provides information
certifying compliance by the alternative retail electric
supplier with this Section, including copies of all PJM-GATS
and M-RETS reports, and documentation relating to banking,
retiring renewable energy credits, and any other information
that the Commission determines necessary to ensure compliance
with this Section.
An alternative retail electric supplier may file
commercially or financially sensitive information or trade
secrets with the Commission as provided under the rules of the
Commission. To be filed confidentially, the information shall
be accompanied by an affidavit that sets forth both the

HB5168 - 13 - LRB103 38021 CES 68153 b
reasons for the confidentiality and a public synopsis of the
information.
(f) The Commission may initiate a contested case to review
allegations that the alternative retail electric supplier has
violated this Section, including an order issued or rule
promulgated under this Section. In any such proceeding, the
alternative retail electric supplier shall have the burden of
proof. If the Commission finds, after notice and hearing, that
an alternative retail electric supplier has violated this
Section, then the Commission shall issue an order requiring
the alternative retail electric supplier to:
(1) immediately comply with this Section; and
(2) if the violation involves a failure to procure the
requisite quantity of renewable energy resources or pay
the applicable alternative compliance payment by the
annual deadline, the Commission shall require the
alternative retail electric supplier to double the
applicable alternative compliance payment that would
otherwise be required to bring the alternative retail
electric supplier into compliance with this Section.
If an alternative retail electric supplier fails to comply
with the renewable energy resource portfolio requirement in
this Section more than once in a 5-year period, then the
Commission shall revoke the alternative electric supplier's
certificate of service authority. The Commission shall not
accept an application for a certificate of service authority

HB5168 - 14 - LRB103 38021 CES 68153 b
from an alternative retail electric supplier that has lost
certification under this subsection (f), or any corporate
affiliate thereof, for at least one year after the date of
revocation.
(g) All of the provisions of this Section apply to
electric utilities operating outside their service area except
under item (2) of subsection (a) of this Section the quantity
of renewable energy resources shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied in the State outside of the
utility's service territory during the 12-month period June 1
through May 31, commencing June 1, 2009, and the comparable
12-month period in each year thereafter except as provided in
item (6) of subsection (a) of this Section.
If any such utility fails to procure the requisite
quantity of renewable energy resources by the annual deadline,
then the Commission shall require the utility to double the
alternative compliance payment that would otherwise be
required to bring the utility into compliance with this
Section.
If any such utility fails to comply with the renewable
energy resource portfolio requirement in this Section more
than once in a 5-year period, then the Commission shall order
the utility to cease all sales outside of the utility's
service territory for a period of at least one year.
(h) The provisions of this Section and the provisions of

HB5168 - 15 - LRB103 38021 CES 68153 b
subsection (d) of Section 16-115 of this Act relating to
procurement of renewable energy resources, and the provisions
of paragraph (6) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act relating to the payments by retail
customers of a utility for the purpose of recovering the
utility's costs for procuring renewable energy credits, shall
not apply to an alternative retail electric supplier, or the
retail customers of an alternative retail electric supplier,
that operates a combined heat and power system in this State or
that has a corporate affiliate that operates such a combined
heat and power system in this State that supplies electricity
primarily to or for the benefit of: (i) facilities owned by the
supplier, its subsidiary, or other corporate affiliate; (ii)
facilities electrically integrated with the electrical system
of facilities owned by the supplier, its subsidiary, or other
corporate affiliate; or (iii) facilities that are adjacent to
the site on which the combined heat and power system is
located.
(i) The obligations of alternative retail electric
suppliers and electric utilities operating outside their
service territories to procure renewable energy resources,
make alternative compliance payments, and file annual reports,
and the obligations of the Commission to determine and post
alternative compliance payment rates, shall terminate after
May 31, 2019, provided that alternative retail electric
suppliers and electric utilities operating outside their

HB5168 - 16 - LRB103 38021 CES 68153 b
service territories shall be obligated to make all alternative
compliance payments that they were obligated to pay for
periods through and including May 31, 2019, but were not paid
as of that date. The Commission shall continue to enforce the
payment of unpaid alternative compliance payments in
accordance with subsections (f) and (g) of this Section. All
alternative compliance payments made after May 31, 2016 shall
be remitted to the applicable electric utility and used to
purchase renewable energy credits, in accordance with Section
1-75 of the Illinois Power Agency Act.
This subsection (i) is intended to accommodate the
transition to the procurement of renewable energy resources
for all retail customers in the amounts specified under
subsection (c) of Section 1-75 of the Illinois Power Agency
Act and Section 16-111.5 of this Act, including but not
limited to the transition to a single charge applicable to all
retail customers to recover the costs of these resources. Each
alternative retail electric supplier shall certify in its
annual reports filed pursuant to subsection (e) of this
Section after May 31, 2019, that its retail customers are not
paying the costs of alternative compliance payments or
renewable energy resources that the alternative retail
electric supplier is not required to remit or purchase under
this Section. The Commission shall have the authority to
initiate an emergency rulemaking to adopt rules regarding such
certification.

HB5168 - 17 - LRB103 38021 CES 68153 b