Bill Text: IL SB1789 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Public Utilities Act. Makes a grammatical correction in provisions relating to the procurement of power and energy, zero emission credits, and renewable energy resources by electric utilities. Effective immediately.
Spectrum: Bipartisan Bill
Status: (Failed) 2021-01-13 - Session Sine Die [SB1789 Detail]
Download: Illinois-2019-SB1789-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by changing | |||||||||||||||||||
5 | Section 16-111.5 as follows:
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6 | (220 ILCS 5/16-111.5) | |||||||||||||||||||
7 | Sec. 16-111.5. Provisions relating to procurement. | |||||||||||||||||||
8 | (a) An electric utility that on December 31, 2005 served at | |||||||||||||||||||
9 | least 100,000 customers in Illinois shall procure power and | |||||||||||||||||||
10 | energy for its eligible retail customers in accordance with the | |||||||||||||||||||
11 | applicable provisions set forth in Section 1-75 of the Illinois | |||||||||||||||||||
12 | Power Agency Act and this Section. Beginning with the delivery | |||||||||||||||||||
13 | year commencing on June 1, 2017, such electric utility shall | |||||||||||||||||||
14 | also procure zero emission credits from zero emission | |||||||||||||||||||
15 | facilities in accordance with the applicable provisions set | |||||||||||||||||||
16 | forth in Section 1-75 of the Illinois Power Agency Act, and, | |||||||||||||||||||
17 | for years beginning on or after June 1, 2017, the utility shall | |||||||||||||||||||
18 | procure renewable energy resources in accordance with the | |||||||||||||||||||
19 | applicable provisions set forth in Section 1-75 of the Illinois | |||||||||||||||||||
20 | Power Agency Act and this Section. | |||||||||||||||||||
21 | A small multi-jurisdictional electric utility that on | |||||||||||||||||||
22 | December 31, 2005 served less than 100,000 customers in | |||||||||||||||||||
23 | Illinois may elect to procure power and energy for all or a |
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1 | portion of its eligible Illinois retail customers in accordance | ||||||
2 | with the applicable provisions set forth in this Section and | ||||||
3 | Section 1-75 of the Illinois Power Agency Act. This Section | ||||||
4 | shall not apply to a small multi-jurisdictional utility until | ||||||
5 | such time as a small multi-jurisdictional utility requests the | ||||||
6 | Illinois Power Agency to prepare a procurement plan for its | ||||||
7 | eligible retail customers. "Eligible retail customers" for the | ||||||
8 | purposes of this Section means those retail customers that | ||||||
9 | purchase power and energy from the electric utility under | ||||||
10 | fixed-price bundled service tariffs, other than those retail | ||||||
11 | customers whose service is declared or deemed competitive under | ||||||
12 | Section 16-113 and those other customer groups specified in | ||||||
13 | this Section, including self-generating customers, customers | ||||||
14 | electing hourly pricing, or those customers who are otherwise | ||||||
15 | ineligible for fixed-price bundled tariff service. For those | ||||||
16 | customers that are excluded from the procurement plan's | ||||||
17 | electric supply service requirements, and the utility shall | ||||||
18 | procure any supply requirements, including capacity, ancillary | ||||||
19 | services, and hourly priced energy, in the applicable markets | ||||||
20 | as needed to serve those customers, provided that the utility | ||||||
21 | may include in its procurement plan load requirements for the | ||||||
22 | load that is associated with those retail customers whose | ||||||
23 | service has been declared or deemed competitive pursuant to | ||||||
24 | Section 16-113 of this Act to the extent that those customers | ||||||
25 | are purchasing power and energy during one of the transition | ||||||
26 | periods identified in subsection (b) of Section 16-113 of this |
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1 | Act. | ||||||
2 | (b) A procurement plan shall be prepared for each electric | ||||||
3 | utility consistent with the applicable requirements of the | ||||||
4 | Illinois Power Agency Act and this Section. For purposes of | ||||||
5 | this Section, Illinois electric utilities that are affiliated | ||||||
6 | by virtue of a common parent company are considered to be a | ||||||
7 | single electric utility. Small multi-jurisdictional utilities | ||||||
8 | may request a procurement plan for a portion of or all of its | ||||||
9 | Illinois load. Each procurement plan shall analyze the | ||||||
10 | projected balance of supply and demand for those retail | ||||||
11 | customers to be included in the plan's electric supply service | ||||||
12 | requirements over a 5-year period, with the first planning year | ||||||
13 | beginning on June 1 of the year following the year in which the | ||||||
14 | plan is filed. The plan shall specifically identify the | ||||||
15 | wholesale products to be procured following plan approval, and | ||||||
16 | shall follow all the requirements set forth in the Public | ||||||
17 | Utilities Act and all applicable State and federal laws, | ||||||
18 | statutes, rules, or regulations, as well as Commission orders. | ||||||
19 | Nothing in this Section precludes consideration of contracts | ||||||
20 | longer than 5 years and related forecast data. Unless specified | ||||||
21 | otherwise in this Section, in the procurement plan or in the | ||||||
22 | implementing tariff, any procurement occurring in accordance | ||||||
23 | with this plan shall be competitively bid through a request for | ||||||
24 | proposals process. Approval and implementation of the | ||||||
25 | procurement plan shall be subject to review and approval by the | ||||||
26 | Commission according to the provisions set forth in this |
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1 | Section. A procurement plan shall include each of the following | ||||||
2 | components: | ||||||
3 | (1) Hourly load analysis. This analysis shall include: | ||||||
4 | (i) multi-year historical analysis of hourly | ||||||
5 | loads; | ||||||
6 | (ii) switching trends and competitive retail | ||||||
7 | market analysis; | ||||||
8 | (iii) known or projected changes to future loads; | ||||||
9 | and | ||||||
10 | (iv) growth forecasts by customer class. | ||||||
11 | (2) Analysis of the impact of any demand side and | ||||||
12 | renewable energy initiatives. This analysis shall include: | ||||||
13 | (i) the impact of demand response programs and | ||||||
14 | energy efficiency programs, both current and | ||||||
15 | projected; for small multi-jurisdictional utilities, | ||||||
16 | the impact of demand response and energy efficiency | ||||||
17 | programs approved pursuant to Section 8-408 of this | ||||||
18 | Act, both current and projected; and | ||||||
19 | (ii) supply side needs that are projected to be | ||||||
20 | offset by purchases of renewable energy resources, if | ||||||
21 | any. | ||||||
22 | (3) A plan for meeting the expected load requirements | ||||||
23 | that will not be met through preexisting contracts. This | ||||||
24 | plan shall include: | ||||||
25 | (i) definitions of the different Illinois retail | ||||||
26 | customer classes for which supply is being purchased; |
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1 | (ii) the proposed mix of demand-response products | ||||||
2 | for which contracts will be executed during the next | ||||||
3 | year. For small multi-jurisdictional electric | ||||||
4 | utilities that on December 31, 2005 served fewer than | ||||||
5 | 100,000 customers in Illinois, these shall be defined | ||||||
6 | as demand-response products offered in an energy | ||||||
7 | efficiency plan approved pursuant to Section 8-408 of | ||||||
8 | this Act. The cost-effective demand-response measures | ||||||
9 | shall be procured whenever the cost is lower than | ||||||
10 | procuring comparable capacity products, provided that | ||||||
11 | such products shall: | ||||||
12 | (A) be procured by a demand-response provider | ||||||
13 | from those retail customers included in the plan's | ||||||
14 | electric supply service requirements; | ||||||
15 | (B) at least satisfy the demand-response | ||||||
16 | requirements of the regional transmission | ||||||
17 | organization market in which the utility's service | ||||||
18 | territory is located, including, but not limited | ||||||
19 | to, any applicable capacity or dispatch | ||||||
20 | requirements; | ||||||
21 | (C) provide for customers' participation in | ||||||
22 | the stream of benefits produced by the | ||||||
23 | demand-response products; | ||||||
24 | (D) provide for reimbursement by the | ||||||
25 | demand-response provider of the utility for any | ||||||
26 | costs incurred as a result of the failure of the |
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1 | supplier of such products to perform its | ||||||
2 | obligations thereunder; and | ||||||
3 | (E) meet the same credit requirements as apply | ||||||
4 | to suppliers of capacity, in the applicable | ||||||
5 | regional transmission organization market; | ||||||
6 | (iii) monthly forecasted system supply | ||||||
7 | requirements, including expected minimum, maximum, and | ||||||
8 | average values for the planning period; | ||||||
9 | (iv) the proposed mix and selection of standard | ||||||
10 | wholesale products for which contracts will be | ||||||
11 | executed during the next year, separately or in | ||||||
12 | combination, to meet that portion of its load | ||||||
13 | requirements not met through pre-existing contracts, | ||||||
14 | including but not limited to monthly 5 x 16 peak period | ||||||
15 | block energy, monthly off-peak wrap energy, monthly 7 x | ||||||
16 | 24 energy, annual 5 x 16 energy, annual off-peak wrap | ||||||
17 | energy, annual 7 x 24 energy, monthly capacity, annual | ||||||
18 | capacity, peak load capacity obligations, capacity | ||||||
19 | purchase plan, and ancillary services; | ||||||
20 | (v) proposed term structures for each wholesale | ||||||
21 | product type included in the proposed procurement plan | ||||||
22 | portfolio of products; and | ||||||
23 | (vi) an assessment of the price risk, load | ||||||
24 | uncertainty, and other factors that are associated | ||||||
25 | with the proposed procurement plan; this assessment, | ||||||
26 | to the extent possible, shall include an analysis of |
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1 | the following factors: contract terms, time frames for | ||||||
2 | securing products or services, fuel costs, weather | ||||||
3 | patterns, transmission costs, market conditions, and | ||||||
4 | the governmental regulatory environment; the proposed | ||||||
5 | procurement plan shall also identify alternatives for | ||||||
6 | those portfolio measures that are identified as having | ||||||
7 | significant price risk. | ||||||
8 | (4) Proposed procedures for balancing loads. The | ||||||
9 | procurement plan shall include, for load requirements | ||||||
10 | included in the procurement plan, the process for (i) | ||||||
11 | hourly balancing of supply and demand and (ii) the criteria | ||||||
12 | for portfolio re-balancing in the event of significant | ||||||
13 | shifts in load. | ||||||
14 | (5) Long-Term Renewable Resources Procurement Plan. | ||||||
15 | The Agency shall prepare a long-term renewable resources | ||||||
16 | procurement plan for the procurement of renewable energy | ||||||
17 | credits under Sections 1-56 and 1-75 of the Illinois Power | ||||||
18 | Agency Act for delivery beginning in the 2017 delivery | ||||||
19 | year. | ||||||
20 | (i) The initial long-term renewable resources | ||||||
21 | procurement plan and all subsequent revisions shall be | ||||||
22 | subject to review and approval by the Commission. For | ||||||
23 | the purposes of this Section, "delivery year" has the | ||||||
24 | same meaning as in Section 1-10 of the Illinois Power | ||||||
25 | Agency Act. For purposes of this Section, "Agency" | ||||||
26 | shall mean the Illinois Power Agency. |
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1 | (ii) The long-term renewable resources planning | ||||||
2 | process shall be conducted as follows: | ||||||
3 | (A) Electric utilities shall provide a range | ||||||
4 | of load forecasts to the Illinois Power Agency | ||||||
5 | within 45 days of the Agency's request for | ||||||
6 | forecasts, which request shall specify the length | ||||||
7 | and conditions for the forecasts including, but | ||||||
8 | not limited to, the quantity of distributed | ||||||
9 | generation expected to be interconnected for each | ||||||
10 | year. | ||||||
11 | (B) The Agency shall publish for comment the | ||||||
12 | initial long-term renewable resources procurement | ||||||
13 | plan no later than 120 days after the effective | ||||||
14 | date of this amendatory Act of the 99th General | ||||||
15 | Assembly and shall review, and may revise, the plan | ||||||
16 | at least every 2 years thereafter. To the extent | ||||||
17 | practicable, the Agency shall review and propose | ||||||
18 | any revisions to the long-term renewable energy | ||||||
19 | resources procurement plan in conjunction with the | ||||||
20 | Agency's other planning and approval processes | ||||||
21 | conducted under this Section. The initial | ||||||
22 | long-term renewable resources procurement plan | ||||||
23 | shall: | ||||||
24 | (aa) Identify the procurement programs and | ||||||
25 | competitive procurement events consistent with | ||||||
26 | the applicable requirements of the Illinois |
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1 | Power Agency Act and shall be designed to | ||||||
2 | achieve the goals set forth in subsection (c) | ||||||
3 | of Section 1-75 of that Act. | ||||||
4 | (bb) Include a schedule for procurements | ||||||
5 | for renewable energy credits from | ||||||
6 | utility-scale wind projects, utility-scale | ||||||
7 | solar projects, and brownfield site | ||||||
8 | photovoltaic projects consistent with | ||||||
9 | subparagraph (G) of paragraph (1) of | ||||||
10 | subsection (c) of Section 1-75 of the Illinois | ||||||
11 | Power Agency Act. | ||||||
12 | (cc) Identify the process whereby the | ||||||
13 | Agency will submit to the Commission for review | ||||||
14 | and approval the proposed contracts to | ||||||
15 | implement the programs required by such plan. | ||||||
16 | Copies of the initial long-term renewable | ||||||
17 | resources procurement plan and all subsequent | ||||||
18 | revisions shall be posted and made publicly | ||||||
19 | available on the Agency's and Commission's | ||||||
20 | websites, and copies shall also be provided to each | ||||||
21 | affected electric utility. An affected utility and | ||||||
22 | other interested parties shall have 45 days | ||||||
23 | following the date of posting to provide comment to | ||||||
24 | the Agency on the initial long-term renewable | ||||||
25 | resources procurement plan and all subsequent | ||||||
26 | revisions. All comments submitted to the Agency |
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1 | shall be specific, supported by data or other | ||||||
2 | detailed analyses, and, if objecting to all or a | ||||||
3 | portion of the procurement plan, accompanied by | ||||||
4 | specific alternative wording or proposals. All | ||||||
5 | comments shall be posted on the Agency's and | ||||||
6 | Commission's websites. During this 45-day comment | ||||||
7 | period, the Agency shall hold at least one public | ||||||
8 | hearing within each utility's service area that is | ||||||
9 | subject to the requirements of this paragraph (5) | ||||||
10 | for the purpose of receiving public comment. | ||||||
11 | Within 21 days following the end of the 45-day | ||||||
12 | review period, the Agency may revise the long-term | ||||||
13 | renewable resources procurement plan based on the | ||||||
14 | comments received and shall file the plan with the | ||||||
15 | Commission for review and approval. | ||||||
16 | (C) Within 14 days after the filing of the | ||||||
17 | initial long-term renewable resources procurement | ||||||
18 | plan or any subsequent revisions, any person | ||||||
19 | objecting to the plan may file an objection with | ||||||
20 | the Commission. Within 21 days after the filing of | ||||||
21 | the plan, the Commission shall determine whether a | ||||||
22 | hearing is necessary. The Commission shall enter | ||||||
23 | its order confirming or modifying the initial | ||||||
24 | long-term renewable resources procurement plan or | ||||||
25 | any subsequent revisions within 120 days after the | ||||||
26 | filing of the plan by the Illinois Power Agency. |
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1 | (D) The Commission shall approve the initial | ||||||
2 | long-term renewable resources procurement plan and | ||||||
3 | any subsequent revisions, including expressly the | ||||||
4 | forecast used in the plan and taking into account | ||||||
5 | that funding will be limited to the amount of | ||||||
6 | revenues actually collected by the utilities, if | ||||||
7 | the Commission determines that the plan will | ||||||
8 | reasonably and prudently accomplish the | ||||||
9 | requirements of Section 1-56 and subsection (c) of | ||||||
10 | Section 1-75 of the Illinois Power Agency Act. The | ||||||
11 | Commission shall also approve the process for the | ||||||
12 | submission, review, and approval of the proposed | ||||||
13 | contracts to procure renewable energy credits or | ||||||
14 | implement the programs authorized by the | ||||||
15 | Commission pursuant to a long-term renewable | ||||||
16 | resources procurement plan approved under this | ||||||
17 | Section. | ||||||
18 | (iii) The Agency or third parties contracted by the | ||||||
19 | Agency shall implement all programs authorized by the | ||||||
20 | Commission in an approved long-term renewable | ||||||
21 | resources procurement plan without further review and | ||||||
22 | approval by the Commission. Third parties shall not | ||||||
23 | begin implementing any programs or receive any payment | ||||||
24 | under this Section until the Commission has approved | ||||||
25 | the contract or contracts under the process authorized | ||||||
26 | by the Commission in item (D) of subparagraph (ii) of |
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1 | paragraph (5) of this subsection (b) and the third | ||||||
2 | party and the Agency or utility, as applicable, have | ||||||
3 | executed the contract. For those renewable energy | ||||||
4 | credits subject to procurement through a competitive | ||||||
5 | bid process under the plan or under the initial forward | ||||||
6 | procurements for wind and solar resources described in | ||||||
7 | subparagraph (G) of paragraph (1) of subsection (c) of | ||||||
8 | Section 1-75 of the Illinois Power Agency Act, the | ||||||
9 | Agency shall follow the procurement process specified | ||||||
10 | in the provisions relating to electricity procurement | ||||||
11 | in subsections (e) through (i) of this Section. | ||||||
12 | (iv) An electric utility shall recover its costs | ||||||
13 | associated with the procurement of renewable energy | ||||||
14 | credits under this Section through an automatic | ||||||
15 | adjustment clause tariff under subsection (k) of | ||||||
16 | Section 16-108 of this Act. A utility shall not be | ||||||
17 | required to advance any payment or pay any amounts | ||||||
18 | under this Section that exceed the actual amount of | ||||||
19 | revenues collected by the utility under paragraph (6) | ||||||
20 | of subsection (c) of Section 1-75 of the Illinois Power | ||||||
21 | Agency Act and subsection (k) of Section 16-108 of this | ||||||
22 | Act, and contracts executed under this Section shall | ||||||
23 | expressly incorporate this limitation. | ||||||
24 | (v) For the public interest, safety, and welfare, | ||||||
25 | the Agency and the Commission may adopt rules to carry | ||||||
26 | out the provisions of this Section on an emergency |
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1 | basis immediately following the effective date of this | ||||||
2 | amendatory Act of the 99th General Assembly. | ||||||
3 | (vi) On or before July 1 of each year, the | ||||||
4 | Commission shall hold an informal hearing for the | ||||||
5 | purpose of receiving comments on the prior year's | ||||||
6 | procurement process and any recommendations for | ||||||
7 | change. | ||||||
8 | (c) The procurement process set forth in Section 1-75 of | ||||||
9 | the Illinois Power Agency Act and subsection (e) of this | ||||||
10 | Section shall be administered by a procurement administrator | ||||||
11 | and monitored by a procurement monitor. | ||||||
12 | (1) The procurement administrator shall: | ||||||
13 | (i) design the final procurement process in | ||||||
14 | accordance with Section 1-75 of the Illinois Power | ||||||
15 | Agency Act and subsection (e) of this Section following | ||||||
16 | Commission approval of the procurement plan; | ||||||
17 | (ii) develop benchmarks in accordance with | ||||||
18 | subsection (e)(3) to be used to evaluate bids; these | ||||||
19 | benchmarks shall be submitted to the Commission for | ||||||
20 | review and approval on a confidential basis prior to | ||||||
21 | the procurement event; | ||||||
22 | (iii) serve as the interface between the electric | ||||||
23 | utility and suppliers; | ||||||
24 | (iv) manage the bidder pre-qualification and | ||||||
25 | registration process; | ||||||
26 | (v) obtain the electric utilities' agreement to |
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1 | the final form of all supply contracts and credit | ||||||
2 | collateral agreements; | ||||||
3 | (vi) administer the request for proposals process; | ||||||
4 | (vii) have the discretion to negotiate to | ||||||
5 | determine whether bidders are willing to lower the | ||||||
6 | price of bids that meet the benchmarks approved by the | ||||||
7 | Commission; any post-bid negotiations with bidders | ||||||
8 | shall be limited to price only and shall be completed | ||||||
9 | within 24 hours after opening the sealed bids and shall | ||||||
10 | be conducted in a fair and unbiased manner; in | ||||||
11 | conducting the negotiations, there shall be no | ||||||
12 | disclosure of any information derived from proposals | ||||||
13 | submitted by competing bidders; if information is | ||||||
14 | disclosed to any bidder, it shall be provided to all | ||||||
15 | competing bidders; | ||||||
16 | (viii) maintain confidentiality of supplier and | ||||||
17 | bidding information in a manner consistent with all | ||||||
18 | applicable laws, rules, regulations, and tariffs; | ||||||
19 | (ix) submit a confidential report to the | ||||||
20 | Commission recommending acceptance or rejection of | ||||||
21 | bids; | ||||||
22 | (x) notify the utility of contract counterparties | ||||||
23 | and contract specifics; and | ||||||
24 | (xi) administer related contingency procurement | ||||||
25 | events. | ||||||
26 | (2) The procurement monitor, who shall be retained by |
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1 | the Commission, shall: | ||||||
2 | (i) monitor interactions among the procurement | ||||||
3 | administrator, suppliers, and utility; | ||||||
4 | (ii) monitor and report to the Commission on the | ||||||
5 | progress of the procurement process; | ||||||
6 | (iii) provide an independent confidential report | ||||||
7 | to the Commission regarding the results of the | ||||||
8 | procurement event; | ||||||
9 | (iv) assess compliance with the procurement plans | ||||||
10 | approved by the Commission for each utility that on | ||||||
11 | December 31, 2005 provided electric service to at least | ||||||
12 | 100,000 customers in Illinois and for each small | ||||||
13 | multi-jurisdictional utility that on December 31, 2005 | ||||||
14 | served less than 100,000 customers in Illinois; | ||||||
15 | (v) preserve the confidentiality of supplier and | ||||||
16 | bidding information in a manner consistent with all | ||||||
17 | applicable laws, rules, regulations, and tariffs; | ||||||
18 | (vi) provide expert advice to the Commission and | ||||||
19 | consult with the procurement administrator regarding | ||||||
20 | issues related to procurement process design, rules, | ||||||
21 | protocols, and policy-related matters; and | ||||||
22 | (vii) consult with the procurement administrator | ||||||
23 | regarding the development and use of benchmark | ||||||
24 | criteria, standard form contracts, credit policies, | ||||||
25 | and bid documents. | ||||||
26 | (d) Except as provided in subsection (j), the planning |
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1 | process shall be conducted as follows: | ||||||
2 | (1) Beginning in 2008, each Illinois utility procuring | ||||||
3 | power pursuant to this Section shall annually provide a | ||||||
4 | range of load forecasts to the Illinois Power Agency by | ||||||
5 | July 15 of each year, or such other date as may be required | ||||||
6 | by the Commission or Agency. The load forecasts shall cover | ||||||
7 | the 5-year procurement planning period for the next | ||||||
8 | procurement plan and shall include hourly data | ||||||
9 | representing a high-load, low-load, and expected-load | ||||||
10 | scenario for the load of those retail customers included in | ||||||
11 | the plan's electric supply service requirements. The | ||||||
12 | utility shall provide supporting data and assumptions for | ||||||
13 | each of the scenarios.
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14 | (2) Beginning in 2008, the Illinois Power Agency shall | ||||||
15 | prepare a procurement plan by August 15th of each year, or | ||||||
16 | such other date as may be required by the Commission. The | ||||||
17 | procurement plan shall identify the portfolio of | ||||||
18 | demand-response and power and energy products to be | ||||||
19 | procured. Cost-effective demand-response measures shall be | ||||||
20 | procured as set forth in item (iii) of subsection (b) of | ||||||
21 | this Section. Copies of the procurement plan shall be | ||||||
22 | posted and made publicly available on the Agency's and | ||||||
23 | Commission's websites, and copies shall also be provided to | ||||||
24 | each affected electric utility. An affected utility shall | ||||||
25 | have 30 days following the date of posting to provide | ||||||
26 | comment to the Agency on the procurement plan. Other |
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1 | interested entities also may comment on the procurement | ||||||
2 | plan. All comments submitted to the Agency shall be | ||||||
3 | specific, supported by data or other detailed analyses, | ||||||
4 | and, if objecting to all or a portion of the procurement | ||||||
5 | plan, accompanied by specific alternative wording or | ||||||
6 | proposals. All comments shall be posted on the Agency's and | ||||||
7 | Commission's websites. During this 30-day comment period, | ||||||
8 | the Agency shall hold at least one public hearing within | ||||||
9 | each utility's service area for the purpose of receiving | ||||||
10 | public comment on the procurement plan. Within 14 days | ||||||
11 | following the end of the 30-day review period, the Agency | ||||||
12 | shall revise the procurement plan as necessary based on the | ||||||
13 | comments received and file the procurement plan with the | ||||||
14 | Commission and post the procurement plan on the websites. | ||||||
15 | (3) Within 5 days after the filing of the procurement | ||||||
16 | plan, any person objecting to the procurement plan shall | ||||||
17 | file an objection with the Commission. Within 10 days after | ||||||
18 | the filing, the Commission shall determine whether a | ||||||
19 | hearing is necessary. The Commission shall enter its order | ||||||
20 | confirming or modifying the procurement plan within 90 days | ||||||
21 | after the filing of the procurement plan by the Illinois | ||||||
22 | Power Agency. | ||||||
23 | (4) The Commission shall approve the procurement plan, | ||||||
24 | including expressly the forecast used in the procurement | ||||||
25 | plan, if the Commission determines that it will ensure | ||||||
26 | adequate, reliable, affordable, efficient, and |
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1 | environmentally sustainable electric service at the lowest | ||||||
2 | total cost over time, taking into account any benefits of | ||||||
3 | price stability. | ||||||
4 | (e) The procurement process shall include each of the | ||||||
5 | following components: | ||||||
6 | (1) Solicitation, pre-qualification, and registration | ||||||
7 | of bidders. The procurement administrator shall | ||||||
8 | disseminate information to potential bidders to promote a | ||||||
9 | procurement event, notify potential bidders that the | ||||||
10 | procurement administrator may enter into a post-bid price | ||||||
11 | negotiation with bidders that meet the applicable | ||||||
12 | benchmarks, provide supply requirements, and otherwise | ||||||
13 | explain the competitive procurement process. In addition | ||||||
14 | to such other publication as the procurement administrator | ||||||
15 | determines is appropriate, this information shall be | ||||||
16 | posted on the Illinois Power Agency's and the Commission's | ||||||
17 | websites. The procurement administrator shall also | ||||||
18 | administer the prequalification process, including | ||||||
19 | evaluation of credit worthiness, compliance with | ||||||
20 | procurement rules, and agreement to the standard form | ||||||
21 | contract developed pursuant to paragraph (2) of this | ||||||
22 | subsection (e). The procurement administrator shall then | ||||||
23 | identify and register bidders to participate in the | ||||||
24 | procurement event. | ||||||
25 | (2) Standard contract forms and credit terms and | ||||||
26 | instruments. The procurement administrator, in |
| |||||||
| |||||||
1 | consultation with the utilities, the Commission, and other | ||||||
2 | interested parties and subject to Commission oversight, | ||||||
3 | shall develop and provide standard contract forms for the | ||||||
4 | supplier contracts that meet generally accepted industry | ||||||
5 | practices. Standard credit terms and instruments that meet | ||||||
6 | generally accepted industry practices shall be similarly | ||||||
7 | developed. The procurement administrator shall make | ||||||
8 | available to the Commission all written comments it | ||||||
9 | receives on the contract forms, credit terms, or | ||||||
10 | instruments. If the procurement administrator cannot reach | ||||||
11 | agreement with the applicable electric utility as to the | ||||||
12 | contract terms and conditions, the procurement | ||||||
13 | administrator must notify the Commission of any disputed | ||||||
14 | terms and the Commission shall resolve the dispute. The | ||||||
15 | terms of the contracts shall not be subject to negotiation | ||||||
16 | by winning bidders, and the bidders must agree to the terms | ||||||
17 | of the contract in advance so that winning bids are | ||||||
18 | selected solely on the basis of price. | ||||||
19 | (3) Establishment of a market-based price benchmark. | ||||||
20 | As part of the development of the procurement process, the | ||||||
21 | procurement administrator, in consultation with the | ||||||
22 | Commission staff, Agency staff, and the procurement | ||||||
23 | monitor, shall establish benchmarks for evaluating the | ||||||
24 | final prices in the contracts for each of the products that | ||||||
25 | will be procured through the procurement process. The | ||||||
26 | benchmarks shall be based on price data for similar |
| |||||||
| |||||||
1 | products for the same delivery period and same delivery | ||||||
2 | hub, or other delivery hubs after adjusting for that | ||||||
3 | difference. The price benchmarks may also be adjusted to | ||||||
4 | take into account differences between the information | ||||||
5 | reflected in the underlying data sources and the specific | ||||||
6 | products and procurement process being used to procure | ||||||
7 | power for the Illinois utilities. The benchmarks shall be | ||||||
8 | confidential but shall be provided to, and will be subject | ||||||
9 | to Commission review and approval, prior to a procurement | ||||||
10 | event. | ||||||
11 | (4) Request for proposals competitive procurement | ||||||
12 | process. The procurement administrator shall design and | ||||||
13 | issue a request for proposals to supply electricity in | ||||||
14 | accordance with each utility's procurement plan, as | ||||||
15 | approved by the Commission. The request for proposals shall | ||||||
16 | set forth a procedure for sealed, binding commitment | ||||||
17 | bidding with pay-as-bid settlement, and provision for | ||||||
18 | selection of bids on the basis of price. | ||||||
19 | (5) A plan for implementing contingencies in the event | ||||||
20 | of supplier default or failure of the procurement process | ||||||
21 | to fully meet the expected load requirement due to | ||||||
22 | insufficient supplier participation, Commission rejection | ||||||
23 | of results, or any other cause. | ||||||
24 | (i) Event of supplier default: In the event of | ||||||
25 | supplier default, the utility shall review the | ||||||
26 | contract of the defaulting supplier to determine if the |
| |||||||
| |||||||
1 | amount of supply is 200 megawatts or greater, and if | ||||||
2 | there are more than 60 days remaining of the contract | ||||||
3 | term. If both of these conditions are met, and the | ||||||
4 | default results in termination of the contract, the | ||||||
5 | utility shall immediately notify the Illinois Power | ||||||
6 | Agency that a request for proposals must be issued to | ||||||
7 | procure replacement power, and the procurement | ||||||
8 | administrator shall run an additional procurement | ||||||
9 | event. If the contracted supply of the defaulting | ||||||
10 | supplier is less than 200 megawatts or there are less | ||||||
11 | than 60 days remaining of the contract term, the | ||||||
12 | utility shall procure power and energy from the | ||||||
13 | applicable regional transmission organization market, | ||||||
14 | including ancillary services, capacity, and day-ahead | ||||||
15 | or real time energy, or both, for the duration of the | ||||||
16 | contract term to replace the contracted supply; | ||||||
17 | provided, however, that if a needed product is not | ||||||
18 | available through the regional transmission | ||||||
19 | organization market it shall be purchased from the | ||||||
20 | wholesale market. | ||||||
21 | (ii) Failure of the procurement process to fully | ||||||
22 | meet the expected load requirement: If the procurement | ||||||
23 | process fails to fully meet the expected load | ||||||
24 | requirement due to insufficient supplier participation | ||||||
25 | or due to a Commission rejection of the procurement | ||||||
26 | results, the procurement administrator, the |
| |||||||
| |||||||
1 | procurement monitor, and the Commission staff shall | ||||||
2 | meet within 10 days to analyze potential causes of low | ||||||
3 | supplier interest or causes for the Commission | ||||||
4 | decision. If changes are identified that would likely | ||||||
5 | result in increased supplier participation, or that | ||||||
6 | would address concerns causing the Commission to | ||||||
7 | reject the results of the prior procurement event, the | ||||||
8 | procurement administrator may implement those changes | ||||||
9 | and rerun the request for proposals process according | ||||||
10 | to a schedule determined by those parties and | ||||||
11 | consistent with Section 1-75 of the Illinois Power | ||||||
12 | Agency Act and this subsection. In any event, a new | ||||||
13 | request for proposals process shall be implemented by | ||||||
14 | the procurement administrator within 90 days after the | ||||||
15 | determination that the procurement process has failed | ||||||
16 | to fully meet the expected load requirement. | ||||||
17 | (iii) In all cases where there is insufficient | ||||||
18 | supply provided under contracts awarded through the | ||||||
19 | procurement process to fully meet the electric | ||||||
20 | utility's load requirement, the utility shall meet the | ||||||
21 | load requirement by procuring power and energy from the | ||||||
22 | applicable regional transmission organization market, | ||||||
23 | including ancillary services, capacity, and day-ahead | ||||||
24 | or real time energy, or both; provided, however, that | ||||||
25 | if a needed product is not available through the | ||||||
26 | regional transmission organization market it shall be |
| |||||||
| |||||||
1 | purchased from the wholesale market. | ||||||
2 | (6) The procurement process described in this | ||||||
3 | subsection is exempt from the requirements of the Illinois | ||||||
4 | Procurement Code, pursuant to Section 20-10 of that Code. | ||||||
5 | (f) Within 2 business days after opening the sealed bids, | ||||||
6 | the procurement administrator shall submit a confidential | ||||||
7 | report to the Commission. The report shall contain the results | ||||||
8 | of the bidding for each of the products along with the | ||||||
9 | procurement administrator's recommendation for the acceptance | ||||||
10 | and rejection of bids based on the price benchmark criteria and | ||||||
11 | other factors observed in the process. The procurement monitor | ||||||
12 | also shall submit a confidential report to the Commission | ||||||
13 | within 2 business days after opening the sealed bids. The | ||||||
14 | report shall contain the procurement monitor's assessment of | ||||||
15 | bidder behavior in the process as well as an assessment of the | ||||||
16 | procurement administrator's compliance with the procurement | ||||||
17 | process and rules. The Commission shall review the confidential | ||||||
18 | reports submitted by the procurement administrator and | ||||||
19 | procurement monitor, and shall accept or reject the | ||||||
20 | recommendations of the procurement administrator within 2 | ||||||
21 | business days after receipt of the reports. | ||||||
22 | (g) Within 3 business days after the Commission decision | ||||||
23 | approving the results of a procurement event, the utility shall | ||||||
24 | enter into binding contractual arrangements with the winning | ||||||
25 | suppliers using the standard form contracts; except that the | ||||||
26 | utility shall not be required either directly or indirectly to |
| |||||||
| |||||||
1 | execute the contracts if a tariff that is consistent with | ||||||
2 | subsection (l) of this Section has not been approved and placed | ||||||
3 | into effect for that utility. | ||||||
4 | (h) The names of the successful bidders and the load | ||||||
5 | weighted average of the winning bid prices for each contract | ||||||
6 | type and for each contract term shall be made available to the | ||||||
7 | public at the time of Commission approval of a procurement | ||||||
8 | event. The Commission, the procurement monitor, the | ||||||
9 | procurement administrator, the Illinois Power Agency, and all | ||||||
10 | participants in the procurement process shall maintain the | ||||||
11 | confidentiality of all other supplier and bidding information | ||||||
12 | in a manner consistent with all applicable laws, rules, | ||||||
13 | regulations, and tariffs. Confidential information, including | ||||||
14 | the confidential reports submitted by the procurement | ||||||
15 | administrator and procurement monitor pursuant to subsection | ||||||
16 | (f) of this Section, shall not be made publicly available and | ||||||
17 | shall not be discoverable by any party in any proceeding, | ||||||
18 | absent a compelling demonstration of need, nor shall those | ||||||
19 | reports be admissible in any proceeding other than one for law | ||||||
20 | enforcement purposes. | ||||||
21 | (i) Within 2 business days after a Commission decision | ||||||
22 | approving the results of a procurement event or such other date | ||||||
23 | as may be required by the Commission from time to time, the | ||||||
24 | utility shall file for informational purposes with the | ||||||
25 | Commission its actual or estimated retail supply charges, as | ||||||
26 | applicable, by customer supply group reflecting the costs |
| |||||||
| |||||||
1 | associated with the procurement and computed in accordance with | ||||||
2 | the tariffs filed pursuant to subsection (l) of this Section | ||||||
3 | and approved by the Commission. | ||||||
4 | (j) Within 60 days following August 28, 2007 (the effective | ||||||
5 | date of Public Act 95-481), each electric utility that on | ||||||
6 | December 31, 2005 provided electric service to at least 100,000 | ||||||
7 | customers in Illinois shall prepare and file with the | ||||||
8 | Commission an initial procurement plan, which shall conform in | ||||||
9 | all material respects to the requirements of the procurement | ||||||
10 | plan set forth in subsection (b); provided, however, that the | ||||||
11 | Illinois Power Agency Act shall not apply to the initial | ||||||
12 | procurement plan prepared pursuant to this subsection. The | ||||||
13 | initial procurement plan shall identify the portfolio of power | ||||||
14 | and energy products to be procured and delivered for the period | ||||||
15 | June 2008 through May 2009, and shall identify the proposed | ||||||
16 | procurement administrator, who shall have the same experience | ||||||
17 | and expertise as is required of a procurement administrator | ||||||
18 | hired pursuant to Section 1-75 of the Illinois Power Agency | ||||||
19 | Act. Copies of the procurement plan shall be posted and made | ||||||
20 | publicly available on the Commission's website. The initial | ||||||
21 | procurement plan may include contracts for renewable resources | ||||||
22 | that extend beyond May 2009. | ||||||
23 | (i) Within 14 days following filing of the initial | ||||||
24 | procurement plan, any person may file a detailed objection | ||||||
25 | with the Commission contesting the procurement plan | ||||||
26 | submitted by the electric utility. All objections to the |
| |||||||
| |||||||
1 | electric utility's plan shall be specific, supported by | ||||||
2 | data or other detailed analyses. The electric utility may | ||||||
3 | file a response to any objections to its procurement plan | ||||||
4 | within 7 days after the date objections are due to be | ||||||
5 | filed. Within 7 days after the date the utility's response | ||||||
6 | is due, the Commission shall determine whether a hearing is | ||||||
7 | necessary. If it determines that a hearing is necessary, it | ||||||
8 | shall require the hearing to be completed and issue an | ||||||
9 | order on the procurement plan within 60 days after the | ||||||
10 | filing of the procurement plan by the electric utility. | ||||||
11 | (ii) The order shall approve or modify the procurement | ||||||
12 | plan, approve an independent procurement administrator, | ||||||
13 | and approve or modify the electric utility's tariffs that | ||||||
14 | are proposed with the initial procurement plan. The | ||||||
15 | Commission shall approve the procurement plan if the | ||||||
16 | Commission determines that it will ensure adequate, | ||||||
17 | reliable, affordable, efficient, and environmentally | ||||||
18 | sustainable electric service at the lowest total cost over | ||||||
19 | time, taking into account any benefits of price stability. | ||||||
20 | (k) (Blank). | ||||||
21 | (k-5) (Blank). | ||||||
22 | (l) An electric utility shall recover its costs incurred | ||||||
23 | under this Section, including, but not limited to, the costs of | ||||||
24 | procuring power and energy demand-response resources under | ||||||
25 | this Section. The utility shall file with the initial | ||||||
26 | procurement plan its proposed tariffs through which its costs |
| |||||||
| |||||||
1 | of procuring power that are incurred pursuant to a | ||||||
2 | Commission-approved procurement plan and those other costs | ||||||
3 | identified in this subsection (l), will be recovered. The | ||||||
4 | tariffs shall include a formula rate or charge designed to pass | ||||||
5 | through both the costs incurred by the utility in procuring a | ||||||
6 | supply of electric power and energy for the applicable customer | ||||||
7 | classes with no mark-up or return on the price paid by the | ||||||
8 | utility for that supply, plus any just and reasonable costs | ||||||
9 | that the utility incurs in arranging and providing for the | ||||||
10 | supply of electric power and energy. The formula rate or charge | ||||||
11 | shall also contain provisions that ensure that its application | ||||||
12 | does not result in over or under recovery due to changes in | ||||||
13 | customer usage and demand patterns, and that provide for the | ||||||
14 | correction, on at least an annual basis, of any accounting | ||||||
15 | errors that may occur. A utility shall recover through the | ||||||
16 | tariff all reasonable costs incurred to implement or comply | ||||||
17 | with any procurement plan that is developed and put into effect | ||||||
18 | pursuant to Section 1-75 of the Illinois Power Agency Act and | ||||||
19 | this Section, including any fees assessed by the Illinois Power | ||||||
20 | Agency, costs associated with load balancing, and contingency | ||||||
21 | plan costs. The electric utility shall also recover its full | ||||||
22 | costs of procuring electric supply for which it contracted | ||||||
23 | before the effective date of this Section in conjunction with | ||||||
24 | the provision of full requirements service under fixed-price | ||||||
25 | bundled service tariffs subsequent to December 31, 2006. All | ||||||
26 | such costs shall be deemed to have been prudently incurred. The |
| |||||||
| |||||||
1 | pass-through tariffs that are filed and approved pursuant to | ||||||
2 | this Section shall not be subject to review under, or in any | ||||||
3 | way limited by, Section 16-111(i) of this Act. All of the costs | ||||||
4 | incurred by the electric utility associated with the purchase | ||||||
5 | of zero emission credits in accordance with subsection (d-5) of | ||||||
6 | Section 1-75 of the Illinois Power Agency Act and, beginning | ||||||
7 | June 1, 2017, all of the costs incurred by the electric utility | ||||||
8 | associated with the purchase of renewable energy resources in | ||||||
9 | accordance with Sections 1-56 and 1-75 of the Illinois Power | ||||||
10 | Agency Act, shall be recovered through the electric utility's | ||||||
11 | tariffed charges applicable to all of its retail customers, as | ||||||
12 | specified in subsection (k) of Section 16-108 of this Act, and | ||||||
13 | shall not be recovered through the electric utility's tariffed | ||||||
14 | charges for electric power and energy supply to its eligible | ||||||
15 | retail customers. | ||||||
16 | (m) The Commission has the authority to adopt rules to | ||||||
17 | carry out the provisions of this Section. For the public | ||||||
18 | interest, safety, and welfare, the Commission also has | ||||||
19 | authority to adopt rules to carry out the provisions of this | ||||||
20 | Section on an emergency basis immediately following August 28, | ||||||
21 | 2007 (the effective date of Public Act 95-481). | ||||||
22 | (n) Notwithstanding any other provision of this Act, any | ||||||
23 | affiliated electric utilities that submit a single procurement | ||||||
24 | plan covering their combined needs may procure for those | ||||||
25 | combined needs in conjunction with that plan, and may enter | ||||||
26 | jointly into power supply contracts, purchases, and other |
| |||||||
| |||||||
1 | procurement arrangements, and allocate capacity and energy and | ||||||
2 | cost responsibility therefor among themselves in proportion to | ||||||
3 | their requirements. | ||||||
4 | (o) On or before June 1 of each year, the Commission shall | ||||||
5 | hold an informal hearing for the purpose of receiving comments | ||||||
6 | on the prior year's procurement process and any recommendations | ||||||
7 | for change.
| ||||||
8 | (p) An electric utility subject to this Section may propose | ||||||
9 | to invest, lease, own, or operate an electric generation | ||||||
10 | facility as part of its procurement plan, provided the utility | ||||||
11 | demonstrates that such facility is the least-cost option to | ||||||
12 | provide electric service to those retail customers included in | ||||||
13 | the plan's electric supply service requirements. If the | ||||||
14 | facility is shown to be the least-cost option and is included | ||||||
15 | in a procurement plan prepared in accordance with Section 1-75 | ||||||
16 | of the Illinois Power Agency Act and this Section, then the | ||||||
17 | electric utility shall make a filing pursuant to Section 8-406 | ||||||
18 | of this Act, and may request of the Commission any statutory | ||||||
19 | relief required thereunder. If the Commission grants all of the | ||||||
20 | necessary approvals for the proposed facility, such supply | ||||||
21 | shall thereafter be considered as a pre-existing contract under | ||||||
22 | subsection (b) of this Section. The Commission shall in any | ||||||
23 | order approving a proposal under this subsection specify how | ||||||
24 | the utility will recover the prudently incurred costs of | ||||||
25 | investing in, leasing, owning, or operating such generation | ||||||
26 | facility through just and reasonable rates charged to those |
| |||||||
| |||||||
1 | retail customers included in the plan's electric supply service | ||||||
2 | requirements. Cost recovery for facilities included in the | ||||||
3 | utility's procurement plan pursuant to this subsection shall | ||||||
4 | not be subject to review under or in any way limited by the | ||||||
5 | provisions of Section 16-111(i) of this Act. Nothing in this | ||||||
6 | Section is intended to prohibit a utility from filing for a | ||||||
7 | fuel adjustment clause as is otherwise permitted under Section | ||||||
8 | 9-220 of this Act.
| ||||||
9 | (q) If the Illinois Power Agency filed with the Commission, | ||||||
10 | under Section 16-111.5 of this Act, its proposed procurement | ||||||
11 | plan for the period commencing June 1, 2017, and the Commission | ||||||
12 | has not yet entered its final order approving the plan on or | ||||||
13 | before the effective date of this amendatory Act of the 99th | ||||||
14 | General Assembly, then the Illinois Power Agency shall file a | ||||||
15 | notice of withdrawal with the Commission, after the effective | ||||||
16 | date of this amendatory Act of the 99th General Assembly, to | ||||||
17 | withdraw the proposed procurement of renewable energy | ||||||
18 | resources to be approved under the plan, other than the | ||||||
19 | procurement of renewable energy credits from distributed | ||||||
20 | renewable energy generation devices using funds previously | ||||||
21 | collected from electric utilities' retail customers that take | ||||||
22 | service pursuant to electric utilities' hourly pricing tariff | ||||||
23 | or tariffs and, for an electric utility that serves less than | ||||||
24 | 100,000 retail customers in the State, other than the | ||||||
25 | procurement of renewable energy credits from distributed | ||||||
26 | renewable energy generation devices. Upon receipt of the |
| |||||||
| |||||||
1 | notice, the Commission shall enter an order that approves the | ||||||
2 | withdrawal of the proposed procurement of renewable energy | ||||||
3 | resources from the plan. The initially proposed procurement of | ||||||
4 | renewable energy resources shall not be approved or be the | ||||||
5 | subject of any further hearing, investigation, proceeding, or | ||||||
6 | order of any kind. | ||||||
7 | This amendatory Act of the 99th General Assembly preempts | ||||||
8 | and supersedes any order entered by the Commission that | ||||||
9 | approved the Illinois Power Agency's procurement plan for the | ||||||
10 | period commencing June 1, 2017, to the extent it is | ||||||
11 | inconsistent with the provisions of this amendatory Act of the | ||||||
12 | 99th General Assembly. To the extent any previously entered | ||||||
13 | order approved the procurement of renewable energy resources, | ||||||
14 | the portion of that order approving the procurement shall be | ||||||
15 | void, other than the procurement of renewable energy credits | ||||||
16 | from distributed renewable energy generation devices using | ||||||
17 | funds previously collected from electric utilities' retail | ||||||
18 | customers that take service under electric utilities' hourly | ||||||
19 | pricing tariff or tariffs and, for an electric utility that | ||||||
20 | serves less than 100,000 retail customers in the State, other | ||||||
21 | than the procurement of renewable energy credits for | ||||||
22 | distributed renewable energy generation devices. | ||||||
23 | (Source: P.A. 99-906, eff. 6-1-17 .)
| ||||||
24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
|