Bill Text: IL HB5526 | 2019-2020 | 101st General Assembly | Introduced

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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 (Republican 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5526 Detail]

Download: Illinois-2019-HB5526-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5526 Introduced , by Rep. Ryan Spain 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.
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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 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 comparable

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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

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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,

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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

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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

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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
website, within 5 business days after entering an order

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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, the Commission
shall not be required to establish and post such estimates

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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 (d), the term "eligible retail
customers" has the same meaning as found in Section

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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 payment
rate established in item (1) of this subsection (d),

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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:
(A) the total amount of alternative compliance

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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
Power Agency, shall establish a process or proceeding to

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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 reasons
for the confidentiality and a public synopsis of the

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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
from an alternative retail electric supplier that has lost

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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
subsection (d) of Section 16-115 of this Act relating to
procurement of renewable energy resources, and the provisions

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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
service territories shall be obligated to make all alternative
compliance payments that they were obligated to pay for periods

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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.
(Source: P.A. 99-906, eff. 6-1-17.)