Bill Text: IL SB2150 | 2009-2010 | 96th General Assembly | Enrolled

---

Bill Title: Amends the Electric Service Customer Choice and Rate Relief Law of 1997 in the Public Utilities Act. Provides that an alternative retail electric supplier shall be responsible for procuring cost-effective renewable energy resources as required under specified provisions of the Act in a specified manner. Provides that an alternative retail electric supplier shall comply with the renewable energy portfolio standards by any one or a combination of specified means. Contains provisions concerning the use of renewable energy certificates. Contains provisions concerning alternative compliance payments for alternative retail electric suppliers. Provides that each alternative retail electric supplier shall, by September 1, 2011 and by September 1 of each year thereafter, prepare, and submit to the Illinois Commerce Commission a report that provides information certifying compliance by the alternative retail electric supplier with specified provisions. Provides that upon complaint or the Commission's own motion, the Commission may conduct a contested case to review allegations that the alternative retail electric supplier has violated specified provisions. Contains an exemption from specified requirements for electric utilities that meet certain criteria. Provides that biennially, the Commission shall submit to the General Assembly a report that discusses the status of renewable energy in the State and the effect of certain provisions on electricity prices and retail and wholesale electric markets.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2009-08-10 - Public Act . . . . . . . . . 96-0159 [SB2150 Detail]

Download: Illinois-2009-SB2150-Enrolled.html

---

SB2150 Enrolled LRB096 08714 MJR 18846 b
AN ACT concerning utilities.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Power Agency Act is amended by
changing Sections 1-10 and 1-75 and by adding Section 1-56 as
follows:
(20 ILCS 3855/1-10)
(Text of Section before amendment by P.A. 95-1027)
Sec. 1-10. Definitions.
"Agency" means the Illinois Power Agency.
"Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of revenue bonds issued with respect to a project to
the Agency upon terms providing for loan repayment installments
at least sufficient to pay when due all principal of, interest
and premium, if any, on those revenue bonds, and providing for
maintenance, insurance, and other matters in respect of the
project.
"Authority" means the Illinois Finance Authority.
"Commission" means the Illinois Commerce Commission.
"Costs incurred in connection with the development and
construction of a facility" means:
(1) the cost of acquisition of all real property and

SB2150 Enrolled - 2 - LRB096 08714 MJR 18846 b
improvements in connection therewith and equipment and
other property, rights, and easements acquired that are
deemed necessary for the operation and maintenance of the
facility;
(2) financing costs with respect to bonds, notes, and
other evidences of indebtedness of the Agency;
(3) all origination, commitment, utilization,
facility, placement, underwriting, syndication, credit
enhancement, and rating agency fees;
(4) engineering, design, procurement, consulting,
legal, accounting, title insurance, survey, appraisal,
escrow, trustee, collateral agency, interest rate hedging,
interest rate swap, capitalized interest and other
financing costs, and other expenses for professional
services; and
(5) the costs of plans, specifications, site study and
investigation, installation, surveys, other Agency costs
and estimates of costs, and other expenses necessary or
incidental to determining the feasibility of any project,
together with such other expenses as may be necessary or
incidental to the financing, insuring, acquisition, and
construction of a specific project and placing that project
in operation.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of the Illinois Power Agency.

SB2150 Enrolled - 3 - LRB096 08714 MJR 18846 b
"Demand-response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.
"Energy efficiency" means measures that reduce the amount
of electricity required to achieve a given end use.
"Electric utility" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
"Governmental aggregator" means one or more units of local
government that individually or collectively procure
electricity to serve residential retail electrical loads
located within its or their jurisdiction.
"Local government" means a unit of local government as
defined in Article VII of Section 1 of the Illinois
Constitution.
"Municipality" means a city, village, or incorporated
town.
"Person" means any natural person, firm, partnership,
corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association
and includes any trustee, receiver, assignee, or personal
representative thereof.
"Project" means the planning, bidding, and construction of

SB2150 Enrolled - 4 - LRB096 08714 MJR 18846 b
a facility.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.
"Real property" means any interest in land together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other
interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.
"Renewable energy credit" means a tradable credit that
represents the environmental attributes of a certain amount of
energy produced from a renewable energy resource.
"Renewable energy resources" includes energy and its
associated renewable energy credit or renewable energy credits
from wind, solar thermal energy, photovoltaic cells and panels,
biodiesel, crops and untreated and unadulterated organic waste
biomass, trees and tree waste trimmings, hydropower that does
not involve new construction or significant expansion of
hydropower dams, and other alternative sources of
environmentally preferable energy. For purposes of this Act,
landfill gas produced in the State is considered a renewable
energy resource. "Renewable energy resources" does not include
the incineration or burning of tires, garbage, general
household, institutional, and commercial waste, industrial
lunchroom or office waste, landscape waste other than trees and
tree waste trimmings, railroad crossties, utility poles, or

SB2150 Enrolled - 5 - LRB096 08714 MJR 18846 b
construction or demolition debris, other than untreated and
unadulterated waste wood.
"Revenue bond" means any bond, note, or other evidence of
indebtedness issued by the Authority, the principal and
interest of which is payable solely from revenues or income
derived from any project or activity of the Agency.
"Total resource cost test" or "TRC test" means a standard
that is met if, for an investment in energy efficiency or
demand-response measures, the benefit-cost ratio is greater
than one. The benefit-cost ratio is the ratio of the net
present value of the total benefits of the program to the net
present value of the total costs as calculated over the
lifetime of the measures. A total resource cost test compares
the sum of avoided electric utility costs, representing the
benefits that accrue to the system and the participant in the
delivery of those efficiency measures, to the sum of all
incremental costs of end-use measures that are implemented due
to the program (including both utility and participant
contributions), plus costs to administer, deliver, and
evaluate each demand-side program, to quantify the net savings
obtained by substituting the demand-side program for supply
resources. In calculating avoided costs of power and energy
that an electric utility would otherwise have had to acquire,
reasonable estimates shall be included of financial costs
likely to be imposed by future regulations and legislation on
emissions of greenhouse gases.

SB2150 Enrolled - 6 - LRB096 08714 MJR 18846 b
(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09.)
(Text of Section after amendment by P.A. 95-1027)
Sec. 1-10. Definitions.
"Agency" means the Illinois Power Agency.
"Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of revenue bonds issued with respect to a project to
the Agency upon terms providing for loan repayment installments
at least sufficient to pay when due all principal of, interest
and premium, if any, on those revenue bonds, and providing for
maintenance, insurance, and other matters in respect of the
project.
"Authority" means the Illinois Finance Authority.
"Clean coal facility" means an electric generating
facility that uses primarily coal as a feedstock and that
captures and sequesters carbon emissions at the following
levels: at least 50% of the total carbon emissions that the
facility would otherwise emit if, at the time construction
commences, the facility is scheduled to commence operation
before 2016, at least 70% of the total carbon emissions that
the facility would otherwise emit if, at the time construction
commences, the facility is scheduled to commence operation
during 2016 or 2017, and at least 90% of the total carbon
emissions that the facility would otherwise emit if, at the
time construction commences, the facility is scheduled to

SB2150 Enrolled - 7 - LRB096 08714 MJR 18846 b
commence operation after 2017. The power block of the clean
coal facility shall not exceed allowable emission rates for
sulfur dioxide, nitrogen oxides, carbon monoxide, particulates
and mercury for a natural gas-fired combined-cycle facility the
same size as and in the same location as the clean coal
facility at the time the clean coal facility obtains an
approved air permit. All coal used by a clean coal facility
shall have high volatile bituminous rank and greater than 1.7
pounds of sulfur per million btu content, unless the clean coal
facility does not use gasification technology and was operating
as a conventional coal-fired electric generating facility on
June 1, 2009 (the effective date of Public Act 95-1027) this
amendatory Act of the 95th General Assembly.
"Clean coal SNG facility" means a facility that uses a
gasification process to produce substitute natural gas, that
sequesters at least 90% of the total carbon emissions that the
facility would otherwise emit and that uses coal as a
feedstock, with all such coal having a high bituminous rank and
greater than 1.7 pounds of sulfur per million btu content.
"Commission" means the Illinois Commerce Commission.
"Costs incurred in connection with the development and
construction of a facility" means:
(1) the cost of acquisition of all real property and
improvements in connection therewith and equipment and
other property, rights, and easements acquired that are
deemed necessary for the operation and maintenance of the

SB2150 Enrolled - 8 - LRB096 08714 MJR 18846 b
facility;
(2) financing costs with respect to bonds, notes, and
other evidences of indebtedness of the Agency;
(3) all origination, commitment, utilization,
facility, placement, underwriting, syndication, credit
enhancement, and rating agency fees;
(4) engineering, design, procurement, consulting,
legal, accounting, title insurance, survey, appraisal,
escrow, trustee, collateral agency, interest rate hedging,
interest rate swap, capitalized interest and other
financing costs, and other expenses for professional
services; and
(5) the costs of plans, specifications, site study and
investigation, installation, surveys, other Agency costs
and estimates of costs, and other expenses necessary or
incidental to determining the feasibility of any project,
together with such other expenses as may be necessary or
incidental to the financing, insuring, acquisition, and
construction of a specific project and placing that project
in operation.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of the Illinois Power Agency.
"Demand-response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.

SB2150 Enrolled - 9 - LRB096 08714 MJR 18846 b
"Energy efficiency" means measures that reduce the amount
of electricity required to achieve a given end use.
"Electric utility" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
"Governmental aggregator" means one or more units of local
government that individually or collectively procure
electricity to serve residential retail electrical loads
located within its or their jurisdiction.
"Local government" means a unit of local government as
defined in Article VII of Section 1 of the Illinois
Constitution.
"Municipality" means a city, village, or incorporated
town.
"Person" means any natural person, firm, partnership,
corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association
and includes any trustee, receiver, assignee, or personal
representative thereof.
"Project" means the planning, bidding, and construction of
a facility.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.

SB2150 Enrolled - 10 - LRB096 08714 MJR 18846 b
"Real property" means any interest in land together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other
interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.
"Renewable energy credit" means a tradable credit that
represents the environmental attributes of a certain amount of
energy produced from a renewable energy resource.
"Renewable energy resources" includes energy and its
associated renewable energy credit or renewable energy credits
from wind, solar thermal energy, photovoltaic cells and panels,
biodiesel, crops and untreated and unadulterated organic waste
biomass, trees and tree waste trimmings, hydropower that does
not involve new construction or significant expansion of
hydropower dams, and other alternative sources of
environmentally preferable energy. For purposes of this Act,
landfill gas produced in the State is considered a renewable
energy resource. "Renewable energy resources" does not include
the incineration or burning of tires, garbage, general
household, institutional, and commercial waste, industrial
lunchroom or office waste, landscape waste other than trees and
tree waste trimmings, railroad crossties, utility poles, or
construction or demolition debris, other than untreated and
unadulterated waste wood.
"Revenue bond" means any bond, note, or other evidence of

SB2150 Enrolled - 11 - LRB096 08714 MJR 18846 b
indebtedness issued by the Authority, the principal and
interest of which is payable solely from revenues or income
derived from any project or activity of the Agency.
"Sequester" means permanent storage of carbon dioxide by
injecting it into a saline aquifer, a depleted gas reservoir,
or an oil reservoir, directly or through an enhanced oil
recovery process that may involve intermediate storage in a
salt dome.
"Servicing agreement" means (i) in the case of an electric
utility, an agreement between the owner of a clean coal
facility and such electric utility, which agreement shall have
terms and conditions meeting the requirements of paragraph (3)
of subsection (d) of Section 1-75, and (ii) in the case of an
alternative retail electric supplier, an agreement between the
owner of a clean coal facility and such alternative retail
electric supplier, which agreement shall have terms and
conditions meeting the requirements of Section 16-115(d)(5) of
the Public Utilities Act.
"Substitute natural gas" or "SNG" means a gas manufactured
by gasification of hydrocarbon feedstock, which is
substantially interchangeable in use and distribution with
conventional natural gas.
"Total resource cost test" or "TRC test" means a standard
that is met if, for an investment in energy efficiency or
demand-response measures, the benefit-cost ratio is greater
than one. The benefit-cost ratio is the ratio of the net

SB2150 Enrolled - 12 - LRB096 08714 MJR 18846 b
present value of the total benefits of the program to the net
present value of the total costs as calculated over the
lifetime of the measures. A total resource cost test compares
the sum of avoided electric utility costs, representing the
benefits that accrue to the system and the participant in the
delivery of those efficiency measures, to the sum of all
incremental costs of end-use measures that are implemented due
to the program (including both utility and participant
contributions), plus costs to administer, deliver, and
evaluate each demand-side program, to quantify the net savings
obtained by substituting the demand-side program for supply
resources. In calculating avoided costs of power and energy
that an electric utility would otherwise have had to acquire,
reasonable estimates shall be included of financial costs
likely to be imposed by future regulations and legislation on
emissions of greenhouse gases.
(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09;
95-1027, eff. 6-1-09; revised 1-14-09.)
(20 ILCS 3855/1-56 new)
Sec. 1-56. Illinois Power Agency Renewable Energy
Resources Fund.
(a) The Illinois Power Agency Renewable Energy Resources
Fund is created as a special fund in the State treasury.
(b) The Illinois Power Agency Renewable Energy Resources
Fund shall be administered by the Agency to procure renewable

SB2150 Enrolled - 13 - LRB096 08714 MJR 18846 b
energy resources. Prior to June 1, 2011, resources procured
pursuant to this Section shall be procured from facilities
located in Illinois, provided the resources are available from
those facilities. If resources are not available in Illinois,
then they shall be procured in states that adjoin Illinois. If
resources are not available in Illinois or in states that
adjoin Illinois, then they may be purchased elsewhere.
Beginning June 1, 2011, resources procured pursuant to this
Section shall be procured from facilities located in Illinois
or states that adjoin Illinois. If resources are not available
in Illinois or in states that adjoin Illinois, then they may be
procured elsewhere. To the extent available, at least 75% of
these renewable energy resources shall come from wind
generation and, starting June 1, 2015, at least 6% of the
renewable energy resources used to meet these standards shall
come from solar photovoltaics.
(c) The Agency shall procure renewable energy resources at
least once each year in conjunction with a procurement event
for electric utilities required to comply with Section 1-75 of
the Act and shall, whenever possible, enter into long-term
contracts.
(d) The price paid to procure renewable energy credits
using monies from the Illinois Power Agency Renewable Energy
Resources Fund shall not exceed the winning bid prices paid for
like resources procured for electric utilities required to
comply with Section 1-75 of this Act.

SB2150 Enrolled - 14 - LRB096 08714 MJR 18846 b
(e) All renewable energy credits procured using monies from
the Illinois Power Agency Renewable Energy Resources Fund shall
be permanently retired.
(f) The procurement process described in this Section is
exempt from the requirements of the Illinois Procurement Code,
pursuant to Section 20-10 of that Code.
(g) All disbursements from the Illinois Power Agency
Renewable Energy Resources Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer as
custodian of the Fund upon vouchers signed by the Director or
by the person or persons designated by the Director for that
purpose. The Comptroller is authorized to draw the warrant upon
vouchers so signed. The Treasurer shall accept all warrants so
signed and shall be released from liability for all payments
made on those warrants.
(h) The Illinois Power Agency Renewable Energy Resources
Fund shall not be subject to sweeps, administrative charges, or
chargebacks, including, but not limited to, those authorized
under Section 8h of the State Finance Act, that would in any
way result in the transfer of any funds from this Fund to any
other fund of this State or in having any such funds utilized
for any purpose other than the express purposes set forth in
this Section.
(20 ILCS 3855/1-75)
(Text of Section before amendment by P.A. 95-1027)

SB2150 Enrolled - 15 - LRB096 08714 MJR 18846 b
Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each
year, beginning in 2008, develop procurement plans and
conduct competitive procurement processes in accordance
with the requirements of Section 16-111.5 of the Public
Utilities Act for the eligible retail customers of electric
utilities that on December 31, 2005 provided electric
service to at least 100,000 customers in Illinois. For the
purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
(1) The Agency shall each year, beginning in 2008,
as needed, issue a request for qualifications for
experts or expert consulting firms to develop the
procurement plans in accordance with Section 16-111.5
of the Public Utilities Act. In order to qualify an
expert or expert consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics,
mathematics, engineering, risk management, or a
related area of study;
(C) 10 years of experience in the electricity

SB2150 Enrolled - 16 - LRB096 08714 MJR 18846 b
sector, including managing supply risk;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional
transmission organizations;
(E) expertise in credit protocols and
familiarity with contract protocols;
(F) adequate resources to perform and fulfill
the required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential
bidders or the affected electric utilities.
(2) The Agency shall each year, as needed, issue a
request for qualifications for a procurement
administrator to conduct the competitive procurement
processes in accordance with Section 16-111.5 of the
Public Utilities Act. In order to qualify an expert or
expert consulting firm must have:
(A) direct previous experience administering a
large-scale competitive procurement process;
(B) an advanced degree in economics,
mathematics, engineering, or a related area of
study;
(C) 10 years of experience in the electricity
sector, including risk management experience;
(D) expertise in wholesale electricity market

SB2150 Enrolled - 17 - LRB096 08714 MJR 18846 b
rules, including those established by the Federal
Energy Regulatory Commission and regional
transmission organizations;
(E) expertise in credit and contract
protocols;
(F) adequate resources to perform and fulfill
the required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential
bidders or the affected electric utilities.
(3) The Agency shall provide affected utilities
and other interested parties with the lists of
qualified experts or expert consulting firms
identified through the request for qualifications
processes that are under consideration to develop the
procurement plans and to serve as the procurement
administrator. The Agency shall also provide each
qualified expert's or expert consulting firm's
response to the request for qualifications. All
information provided under this subparagraph shall
also be provided to the Commission. The Agency may
provide by rule for fees associated with supplying the
information to utilities and other interested parties.
These parties shall, within 5 business days, notify the
Agency in writing if they object to any experts or
expert consulting firms on the lists. Objections shall

SB2150 Enrolled - 18 - LRB096 08714 MJR 18846 b
be based on:
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest;
or
(C) evidence of inappropriate bias for or
against potential bidders or the affected
utilities.
The Agency shall remove experts or expert
consulting firms from the lists within 10 days if there
is a reasonable basis for an objection and provide the
updated lists to the affected utilities and other
interested parties. If the Agency fails to remove an
expert or expert consulting firm from a list, an
objecting party may seek review by the Commission
within 5 days thereafter by filing a petition, and the
Commission shall render a ruling on the petition within
10 days. There is no right of appeal of the
Commission's ruling.
(4) The Agency shall issue requests for proposals
to the qualified experts or expert consulting firms to
develop a procurement plan for the affected utilities
and to serve as procurement administrator.
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on
the proposals submitted and shall award one-year
contracts to those selected with an option for the

SB2150 Enrolled - 19 - LRB096 08714 MJR 18846 b
Agency for a one-year renewal.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to
serve as procurement administrator based on the
proposals submitted. If the Commission rejects, within
5 days, the Agency's selection, the Agency shall submit
another recommendation within 3 days based on the
proposals submitted. The Agency shall award a one-year
contract to the expert or expert consulting firm so
selected with Commission approval with an option for
the Agency for a one-year renewal.
(b) The experts or expert consulting firms retained by
the Agency shall, as appropriate, prepare procurement
plans, and conduct a competitive procurement process as
prescribed in Section 16-111.5 of the Public Utilities Act,
to ensure adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for eligible retail customers of electric
utilities that on December 31, 2005 provided electric
service to at least 100,000 customers in the State of
Illinois.
(c) Renewable portfolio standard.
(1) The procurement plans shall include
cost-effective renewable energy resources. A minimum
percentage of each utility's total supply to serve the

SB2150 Enrolled - 20 - LRB096 08714 MJR 18846 b
load of eligible retail customers, as defined in
Section 16-111.5(a) of the Public Utilities Act,
procured for each of the following years shall be
generated from cost-effective renewable energy
resources: at least 2% by June 1, 2008; at least 4% by
June 1, 2009; at least 5% by June 1, 2010; at least 6%
by June 1, 2011; at least 7% by June 1, 2012; at least
8% by June 1, 2013; at least 9% by June 1, 2014; at
least 10% by June 1, 2015; and increasing by at least
1.5% each year thereafter to at least 25% by June 1,
2025. To the extent that it is available, at least 75%
of the renewable energy resources used to meet these
standards shall come from wind generation and,
beginning on June 1, 2015, at least 6% of the renewable
energy resources used to meet these standards shall
come from photovoltaics. For purposes of this Section,
"cost-effective" means that the costs of procuring
renewable energy resources do not cause the limit
stated in paragraph (2) of this subsection (c) to be
exceeded.
(2) For purposes of this subsection (c), the
required procurement of cost-effective renewable
energy resources for a particular year shall be
measured as a percentage of the actual amount of
electricity (megawatt-hours) supplied by the electric
utility to eligible retail customers in the planning

SB2150 Enrolled - 21 - LRB096 08714 MJR 18846 b
year ending immediately prior to the procurement. For
purposes of this subsection (c), the amount per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid
for electric service includes without limitation
amounts paid for supply, transmission, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this
subsection (c), the total of renewable energy
resources procured pursuant to the procurement plan
for any single year shall be reduced by an amount
necessary to limit the annual estimated average net
increase due to the costs of these resources included
in the amounts paid by eligible retail customers in
connection with electric service to:
(A) in 2008, no more than 0.5% of the amount
paid per kilowatthour by those customers during
the year ending May 31, 2007;
(B) in 2009, the greater of an additional 0.5%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2008 or 1%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2007;
(C) in 2010, the greater of an additional 0.5%
of the amount paid per kilowatthour by those

SB2150 Enrolled - 22 - LRB096 08714 MJR 18846 b
customers during the year ending May 31, 2009 or
1.5% of the amount paid per kilowatthour by those
customers during the year ending May 31, 2007;
(D) in 2011, the greater of an additional 0.5%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2010 or 2%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2007; and
(E) thereafter, the amount of renewable energy
resources procured pursuant to the procurement
plan for any single year shall be reduced by an
amount necessary to limit the estimated average
net increase due to the cost of these resources
included in the amounts paid by eligible retail
customers in connection with electric service to
no more than the greater of 2.015% of the amount
paid per kilowatthour by those customers during
the year ending May 31, 2007 or the incremental
amount per kilowatthour paid for these resources
in 2011.
No later than June 30, 2011, the Commission shall
review the limitation on the amount of renewable energy
resources procured pursuant to this subsection (c) and
report to the General Assembly its findings as to
whether that limitation unduly constrains the
procurement of cost-effective renewable energy

SB2150 Enrolled - 23 - LRB096 08714 MJR 18846 b
resources.
(3) Through June 1, 2011, renewable energy
resources shall be counted for the purpose of meeting
the renewable energy standards set forth in paragraph
(1) of this subsection (c) only if they are generated
from facilities located in the State, provided that
cost-effective renewable energy resources are
available from those facilities. If those
cost-effective resources are not available in
Illinois, they shall be procured in states that adjoin
Illinois and may be counted towards compliance. If
those cost-effective resources are not available in
Illinois or in states that adjoin Illinois, they shall
be purchased elsewhere and shall be counted towards
compliance. After June 1, 2011, cost-effective
renewable energy resources located in Illinois and in
states that adjoin Illinois may be counted towards
compliance with the standards set forth in paragraph
(1) of this subsection (c). If those cost-effective
resources are not available in Illinois or in states
that adjoin Illinois, they shall be purchased
elsewhere and shall be counted towards compliance.
(4) The electric utility shall retire all
renewable energy credits used to comply with the
standard.
(5) Beginning with the year commencing June 1,

SB2150 Enrolled - 24 - LRB096 08714 MJR 18846 b
2010, an electric utility subject to this subsection
(c) shall apply the lesser of the maximum alternative
compliance payment rate or the most recent estimated
alternative compliance payment rate for its service
territory for the corresponding compliance period,
established pursuant to subsection (d) of Section
16-115D of the Public Utilities Act to its retail
customers that take service pursuant to the electric
utility's hourly pricing tariff or tariffs. The
electric utility shall retain all amounts collected as
a result of the application of the alternative
compliance payment rate or rates to such customers,
and, beginning in 2011, the utility shall include in
the information provided under item (1) of subsection
(d) of Section 16-111.5 of the Public Utilities Act the
amounts collected under the alternative compliance
payment rate or rates for the prior year ending May 31.
Notwithstanding any limitation on the procurement of
renewable energy resources imposed by item (2) of this
subsection (c), the Agency shall increase its spending
on the purchase of renewable energy resources to be
procured by the electric utility for the next plan year
by an amount equal to the amounts collected by the
utility under the alternative compliance payment rate
or rates in the prior year ending May 31.
(d) The draft procurement plans are subject to public

SB2150 Enrolled - 25 - LRB096 08714 MJR 18846 b
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(e) The Agency shall submit the final procurement plan
to the Commission. The Agency shall revise a procurement
plan if the Commission determines that it does not meet the
standards set forth in Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall assess fees to each affected
utility to recover the costs incurred in preparation of the
annual procurement plan for the utility.
(g) The Agency shall assess fees to each bidder to
recover the costs incurred in connection with a competitive
procurement process.
(Source: P.A. 95-481, eff. 8-28-07.)
(Text of Section after amendment by P.A. 95-1027)
Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each
year, beginning in 2008, develop procurement plans and
conduct competitive procurement processes in accordance
with the requirements of Section 16-111.5 of the Public
Utilities Act for the eligible retail customers of electric
utilities that on December 31, 2005 provided electric
service to at least 100,000 customers in Illinois. For the

SB2150 Enrolled - 26 - LRB096 08714 MJR 18846 b
purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
(1) The Agency shall each year, beginning in 2008,
as needed, issue a request for qualifications for
experts or expert consulting firms to develop the
procurement plans in accordance with Section 16-111.5
of the Public Utilities Act. In order to qualify an
expert or expert consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics,
mathematics, engineering, risk management, or a
related area of study;
(C) 10 years of experience in the electricity
sector, including managing supply risk;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional
transmission organizations;
(E) expertise in credit protocols and
familiarity with contract protocols;
(F) adequate resources to perform and fulfill
the required functions and responsibilities; and
(G) the absence of a conflict of interest and

SB2150 Enrolled - 27 - LRB096 08714 MJR 18846 b
inappropriate bias for or against potential
bidders or the affected electric utilities.
(2) The Agency shall each year, as needed, issue a
request for qualifications for a procurement
administrator to conduct the competitive procurement
processes in accordance with Section 16-111.5 of the
Public Utilities Act. In order to qualify an expert or
expert consulting firm must have:
(A) direct previous experience administering a
large-scale competitive procurement process;
(B) an advanced degree in economics,
mathematics, engineering, or a related area of
study;
(C) 10 years of experience in the electricity
sector, including risk management experience;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional
transmission organizations;
(E) expertise in credit and contract
protocols;
(F) adequate resources to perform and fulfill
the required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential
bidders or the affected electric utilities.

SB2150 Enrolled - 28 - LRB096 08714 MJR 18846 b
(3) The Agency shall provide affected utilities
and other interested parties with the lists of
qualified experts or expert consulting firms
identified through the request for qualifications
processes that are under consideration to develop the
procurement plans and to serve as the procurement
administrator. The Agency shall also provide each
qualified expert's or expert consulting firm's
response to the request for qualifications. All
information provided under this subparagraph shall
also be provided to the Commission. The Agency may
provide by rule for fees associated with supplying the
information to utilities and other interested parties.
These parties shall, within 5 business days, notify the
Agency in writing if they object to any experts or
expert consulting firms on the lists. Objections shall
be based on:
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest;
or
(C) evidence of inappropriate bias for or
against potential bidders or the affected
utilities.
The Agency shall remove experts or expert
consulting firms from the lists within 10 days if there
is a reasonable basis for an objection and provide the

SB2150 Enrolled - 29 - LRB096 08714 MJR 18846 b
updated lists to the affected utilities and other
interested parties. If the Agency fails to remove an
expert or expert consulting firm from a list, an
objecting party may seek review by the Commission
within 5 days thereafter by filing a petition, and the
Commission shall render a ruling on the petition within
10 days. There is no right of appeal of the
Commission's ruling.
(4) The Agency shall issue requests for proposals
to the qualified experts or expert consulting firms to
develop a procurement plan for the affected utilities
and to serve as procurement administrator.
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on
the proposals submitted and shall award one-year
contracts to those selected with an option for the
Agency for a one-year renewal.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to
serve as procurement administrator based on the
proposals submitted. If the Commission rejects, within
5 days, the Agency's selection, the Agency shall submit
another recommendation within 3 days based on the
proposals submitted. The Agency shall award a one-year
contract to the expert or expert consulting firm so
selected with Commission approval with an option for

SB2150 Enrolled - 30 - LRB096 08714 MJR 18846 b
the Agency for a one-year renewal.
(b) The experts or expert consulting firms retained by
the Agency shall, as appropriate, prepare procurement
plans, and conduct a competitive procurement process as
prescribed in Section 16-111.5 of the Public Utilities Act,
to ensure adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for eligible retail customers of electric
utilities that on December 31, 2005 provided electric
service to at least 100,000 customers in the State of
Illinois.
(c) Renewable portfolio standard.
(1) The procurement plans shall include
cost-effective renewable energy resources. A minimum
percentage of each utility's total supply to serve the
load of eligible retail customers, as defined in
Section 16-111.5(a) of the Public Utilities Act,
procured for each of the following years shall be
generated from cost-effective renewable energy
resources: at least 2% by June 1, 2008; at least 4% by
June 1, 2009; at least 5% by June 1, 2010; at least 6%
by June 1, 2011; at least 7% by June 1, 2012; at least
8% by June 1, 2013; at least 9% by June 1, 2014; at
least 10% by June 1, 2015; and increasing by at least
1.5% each year thereafter to at least 25% by June 1,

SB2150 Enrolled - 31 - LRB096 08714 MJR 18846 b
2025. To the extent that it is available, at least 75%
of the renewable energy resources used to meet these
standards shall come from wind generation and,
beginning on June 1, 2015, at least 6% of the renewable
energy resources used to meet these standards shall
come from photovoltaics. For purposes of this
subsection (c), "cost-effective" means that the costs
of procuring renewable energy resources do not cause
the limit stated in paragraph (2) of this subsection
(c) to be exceeded and do not exceed benchmarks based
on market prices for renewable energy resources in the
region, which shall be developed by the procurement
administrator, in consultation with the Commission
staff, Agency staff, and the procurement monitor and
shall be subject to Commission review and approval.
(2) For purposes of this subsection (c), the
required procurement of cost-effective renewable
energy resources for a particular year shall be
measured as a percentage of the actual amount of
electricity (megawatt-hours) supplied by the electric
utility to eligible retail customers in the planning
year ending immediately prior to the procurement. For
purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid

SB2150 Enrolled - 32 - LRB096 08714 MJR 18846 b
for electric service includes without limitation
amounts paid for supply, transmission, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this
subsection (c), the total of renewable energy
resources procured pursuant to the procurement plan
for any single year shall be reduced by an amount
necessary to limit the annual estimated average net
increase due to the costs of these resources included
in the amounts paid by eligible retail customers in
connection with electric service to:
(A) in 2008, no more than 0.5% of the amount
paid per kilowatthour by those customers during
the year ending May 31, 2007;
(B) in 2009, the greater of an additional 0.5%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2008 or 1%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2007;
(C) in 2010, the greater of an additional 0.5%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2009 or
1.5% of the amount paid per kilowatthour by those
customers during the year ending May 31, 2007;
(D) in 2011, the greater of an additional 0.5%
of the amount paid per kilowatthour by those

SB2150 Enrolled - 33 - LRB096 08714 MJR 18846 b
customers during the year ending May 31, 2010 or 2%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2007; and
(E) thereafter, the amount of renewable energy
resources procured pursuant to the procurement
plan for any single year shall be reduced by an
amount necessary to limit the estimated average
net increase due to the cost of these resources
included in the amounts paid by eligible retail
customers in connection with electric service to
no more than the greater of 2.015% of the amount
paid per kilowatthour by those customers during
the year ending May 31, 2007 or the incremental
amount per kilowatthour paid for these resources
in 2011.
No later than June 30, 2011, the Commission shall
review the limitation on the amount of renewable energy
resources procured pursuant to this subsection (c) and
report to the General Assembly its findings as to
whether that limitation unduly constrains the
procurement of cost-effective renewable energy
resources.
(3) Through June 1, 2011, renewable energy
resources shall be counted for the purpose of meeting
the renewable energy standards set forth in paragraph
(1) of this subsection (c) only if they are generated

SB2150 Enrolled - 34 - LRB096 08714 MJR 18846 b
from facilities located in the State, provided that
cost-effective renewable energy resources are
available from those facilities. If those
cost-effective resources are not available in
Illinois, they shall be procured in states that adjoin
Illinois and may be counted towards compliance. If
those cost-effective resources are not available in
Illinois or in states that adjoin Illinois, they shall
be purchased elsewhere and shall be counted towards
compliance. After June 1, 2011, cost-effective
renewable energy resources located in Illinois and in
states that adjoin Illinois may be counted towards
compliance with the standards set forth in paragraph
(1) of this subsection (c). If those cost-effective
resources are not available in Illinois or in states
that adjoin Illinois, they shall be purchased
elsewhere and shall be counted towards compliance.
(4) The electric utility shall retire all
renewable energy credits used to comply with the
standard.
(5) Beginning with the year commencing June 1,
2010, an electric utility subject to this subsection
(c) shall apply the lesser of the maximum alternative
compliance payment rate or the most recent estimated
alternative compliance payment rate for its service
territory for the corresponding compliance period,

SB2150 Enrolled - 35 - LRB096 08714 MJR 18846 b
established pursuant to subsection (d) of Section
16-115D of the Public Utilities Act to its retail
customers that take service pursuant to the electric
utility's hourly pricing tariff or tariffs. The
electric utility shall retain all amounts collected as
a result of the application of the alternative
compliance payment rate or rates to such customers,
and, beginning in 2011, the utility shall include in
the information provided under item (1) of subsection
(d) of Section 16-111.5 of the Public Utilities Act the
amounts collected under the alternative compliance
payment rate or rates for the prior year ending May 31.
Notwithstanding any limitation on the procurement of
renewable energy resources imposed by item (2) of this
subsection (c), the Agency shall increase its spending
on the purchase of renewable energy resources to be
procured by the electric utility for the next plan year
by an amount equal to the amounts collected by the
utility under the alternative compliance payment rate
or rates in the prior year ending May 31.
(d) Clean coal portfolio standard.
(1) The procurement plans shall include electricity
generated using clean coal. Each utility shall enter into
one or more sourcing agreements with the initial clean coal
facility, as provided in paragraph (3) of this subsection
(d), covering electricity generated by the initial clean

SB2150 Enrolled - 36 - LRB096 08714 MJR 18846 b
coal facility representing at least 5% of each utility's
total supply to serve the load of eligible retail customers
in 2015 and each year thereafter, as described in paragraph
(3) of this subsection (d), subject to the limits specified
in paragraph (2) of this subsection (d). It is the goal of
the State that by January 1, 2025, 25% of the electricity
used in the State shall be generated by cost-effective
clean coal facilities. For purposes of this subsection (d),
"cost-effective" means that the expenditures pursuant to
such sourcing agreements do not cause the limit stated in
paragraph (2) of this subsection (d) to be exceeded and do
not exceed cost-based benchmarks, which shall be developed
to assess all expenditures pursuant to such sourcing
agreements covering electricity generated by clean coal
facilities, other than the initial clean coal facility, by
the procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor and shall be subject to Commission review and
approval.
(A) A utility party to a sourcing agreement shall
immediately retire any emission credits that it
receives in connection with the electricity covered by
such agreement.
(B) Utilities shall maintain adequate records
documenting the purchases under the sourcing agreement
to comply with this subsection (d) and shall file an

SB2150 Enrolled - 37 - LRB096 08714 MJR 18846 b
accounting with the load forecast that must be filed
with the Agency by July 15 of each year, in accordance
with subsection (d) of Section 16-111.5 of the Public
Utilities Act.
(C) A utility shall be deemed to have complied with
the clean coal portfolio standard specified in this
subsection (d) if the utility enters into a sourcing
agreement as required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending
immediately prior to the agreement's execution. For
purposes of this subsection (d), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For purposes
of this subsection (d), the total amount paid for electric
service includes without limitation amounts paid for
supply, transmission, distribution, surcharges and add-on
taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to

SB2150 Enrolled - 38 - LRB096 08714 MJR 18846 b
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount
paid per kilowatthour by those customers during
the year ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2010 or 1%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2011 or
1.5% of the amount paid per kilowatthour by those
customers during the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2012 or 2%
of the amount paid per kilowatthour by those
customers during the year ending May 31, 2009; and
(E) thereafter, the total amount paid under
sourcing agreements with clean coal facilities
pursuant to the procurement plan for any single
year shall be reduced by an amount necessary to

SB2150 Enrolled - 39 - LRB096 08714 MJR 18846 b
limit the estimated average net increase due to the
cost of these resources included in the amounts
paid by eligible retail customers in connection
with electric service to no more than the greater
of (i) 2.015% of the amount paid per kilowatthour
by those customers during the year ending May 31,
2009 or (ii) the incremental amount per
kilowatthour paid for these resources in 2013.
These requirements may be altered only as provided
by statute. No later than June 30, 2015, the
Commission shall review the limitation on the
total amount paid under sourcing agreements, if
any, with clean coal facilities pursuant to this
subsection (d) and report to the General Assembly
its findings as to whether that limitation unduly
constrains the amount of electricity generated by
cost-effective clean coal facilities that is
covered by sourcing agreements.
(3) Initial clean coal facility. In order to promote
development of clean coal facilities in Illinois, each
electric utility subject to this Section shall execute a
sourcing agreement to source electricity from a proposed
clean coal facility in Illinois (the "initial clean coal
facility") that will have a nameplate capacity of at least
500 MW when commercial operation commences, that has a
final Clean Air Act permit on the effective date of this

SB2150 Enrolled - 40 - LRB096 08714 MJR 18846 b
amendatory Act of the 95th General Assembly, and that will
meet the definition of clean coal facility in Section 1-10
of this Act when commercial operation commences. The
sourcing agreements with this initial clean coal facility
shall be subject to both approval of the initial clean coal
facility by the General Assembly and satisfaction of the
requirements of paragraph (4) of this subsection (d) and
shall be executed within 90 days after any such approval by
the General Assembly. The Agency and the Commission shall
have authority to inspect all books and records associated
with the initial clean coal facility during the term of
such a sourcing agreement. A utility's sourcing agreement
for electricity produced by the initial clean coal facility
shall include:
(A) a formula contractual price (the "contract
price") approved pursuant to paragraph (4) of this
subsection (d), which shall:
(i) be determined using a cost of service
methodology employing either a level or deferred
capital recovery component, based on a capital
structure consisting of 45% equity and 55% debt,
and a return on equity as may be approved by the
Federal Energy Regulatory Commission, which in any
case may not exceed the lower of 11.5% or the rate
of return approved by the General Assembly
pursuant to paragraph (4) of this subsection (d);

SB2150 Enrolled - 41 - LRB096 08714 MJR 18846 b
and
(ii) provide that all miscellaneous net
revenue, including but not limited to net revenue
from the sale of emission allowances, if any,
substitute natural gas, if any, grants or other
support provided by the State of Illinois or the
United States Government, firm transmission
rights, if any, by-products produced by the
facility, energy or capacity derived from the
facility and not covered by a sourcing agreement
pursuant to paragraph (3) of this subsection (d) or
item (5) of subsection (d) of Section 16-115 of the
Public Utilities Act, whether generated from the
synthesis gas derived from coal, from SNG, or from
natural gas, shall be credited against the revenue
requirement for this initial clean coal facility;
(B) power purchase provisions, which shall:
(i) provide that the utility party to such
sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean

SB2150 Enrolled - 42 - LRB096 08714 MJR 18846 b
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour
times a fraction, the numerator of which is such
utility's retail market sales of electricity
(expressed in kilowatthours sold) in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount purchased by the utility
in any year will be limited by paragraph (2) of
this subsection (d); and
(iv) be considered pre-existing contracts in
such utility's procurement plans for eligible
retail customers;
(C) contract for differences provisions, which
shall:
(i) require the utility party to such sourcing
agreement to contract with the initial clean coal

SB2150 Enrolled - 43 - LRB096 08714 MJR 18846 b
facility in each hour with respect to an amount of
energy equal to all clean coal energy made
available from the initial clean coal facility
during such hour times a fraction, the numerator of
which is such utility's retail market sales of
electricity (expressed in kilowatthours sold) in
the utility's service territory in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in any
year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of

SB2150 Enrolled - 44 - LRB096 08714 MJR 18846 b
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the
utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;
(D) general provisions, which shall:
(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the
facility;
(ii) provide that utilities shall maintain
adequate records documenting purchases under the
sourcing agreements entered into to comply with
this subsection (d) and shall file an accounting
with the load forecast that must be filed with the
Agency by July 15 of each year, in accordance with
subsection (d) of Section 16-111.5 of the Public

SB2150 Enrolled - 45 - LRB096 08714 MJR 18846 b
Utilities Act.
(iii) provide that all costs associated with
the initial clean coal facility will be
periodically reported to the Federal Energy
Regulatory Commission and to purchasers in
accordance with applicable laws governing
cost-based wholesale power contracts;
(iv) permit the Illinois Power Agency to
assume ownership of the initial clean coal
facility, without monetary consideration and
otherwise on reasonable terms acceptable to the
Agency, if the Agency so requests no less than 3
years prior to the end of the stated contract term;
(v) require the owner of the initial clean coal
facility to provide documentation to the
Commission each year, starting in the facility's
first year of commercial operation, accurately
reporting the quantity of carbon emissions from
the facility that have been captured and
sequestered and report any quantities of carbon
released from the site or sites at which carbon
emissions were sequestered in prior years, based
on continuous monitoring of such sites. If, in any
year after the first year of commercial operation,
the owner of the facility fails to demonstrate that
the initial clean coal facility captured and

SB2150 Enrolled - 46 - LRB096 08714 MJR 18846 b
sequestered at least 50% of the total carbon
emissions that the facility would otherwise emit
or that sequestration of emissions from prior
years has failed, resulting in the release of
carbon dioxide into the atmosphere, the owner of
the facility must offset excess emissions. Any
such carbon offsets must be permanent, additional,
verifiable, real, located within the State of
Illinois, and legally and practicably enforceable.
The cost of such offsets for the facility that are
not recoverable shall not exceed $15 million in any
given year. No costs of any such purchases of
carbon offsets may be recovered from a utility or
its customers. All carbon offsets purchased for
this purpose and any carbon emission credits
associated with sequestration of carbon from the
facility must be permanently retired. The initial
clean coal facility shall not forfeit its
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract

SB2150 Enrolled - 47 - LRB096 08714 MJR 18846 b
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in the
course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility wilfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing
agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced in
subparagraphs (A)(i) through (A)(iii) of paragraph
(3) of this subsection (d), prior to an adjustment
in those inputs including, without limitation, the
capital structure and return on equity, fuel
costs, and other operations and maintenance costs
and (2) to approve the costs to be passed through

SB2150 Enrolled - 48 - LRB096 08714 MJR 18846 b
to customers under the sourcing agreement by which
the utility satisfies its statutory obligations.
Commission review shall occur no less than every 3
years, regardless of whether any adjustments have
been proposed, and shall be completed within 9
months;
(viii) limit the utility's obligation to such
amount as the utility is allowed to recover through
tariffs filed with the Commission, provided that
neither the clean coal facility nor the utility
waives any right to assert federal pre-emption or
any other argument in response to a purported
disallowance of recovery costs;
(ix) limit the utility's or alternative retail
electric supplier's obligation to incur any
liability until such time as the facility is in
commercial operation and generating power and
energy and such power and energy is being delivered
to the facility busbar;
(x) provide that the owner or owners of the
initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or the
contract for differences provisions;

SB2150 Enrolled - 49 - LRB096 08714 MJR 18846 b
(xi) append documentation showing that the
formula rate and contract, insofar as they relate
to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to the
power purchase provisions, are subject to review
under the public interest standard applied by the
Federal Energy Regulatory Commission pursuant to
Sections 205 and 206 of the Federal Power Act; and
(xiii) conform with customary lender
requirements in power purchase agreements used as
the basis for financing non-utility generators.
(4) Effective date of sourcing agreements with the
initial clean coal facility. Any proposed sourcing
agreement with the initial clean coal facility shall not
become effective unless the following reports are prepared
and submitted and authorizations and approvals obtained:
(i) Facility cost report. The owner of the
initial clean coal facility shall submit to the
Commission, the Agency, and the General Assembly a
front-end engineering and design study, a facility
cost report, method of financing (including but
not limited to structure and associated costs),

SB2150 Enrolled - 50 - LRB096 08714 MJR 18846 b
and an operating and maintenance cost quote for the
facility (collectively "facility cost report"),
which shall be prepared in accordance with the
requirements of this paragraph (4) of subsection
(d) of this Section, and shall provide the
Commission and the Agency access to the work
papers, relied upon documents, and any other
backup documentation related to the facility cost
report.
(ii) Commission report. Within 6 months
following receipt of the facility cost report, the
Commission, in consultation with the Agency, shall
submit a report to the General Assembly setting
forth its analysis of the facility cost report.
Such report shall include, but not be limited to, a
comparison of the costs associated with
electricity generated by the initial clean coal
facility to the costs associated with electricity
generated by other types of generation facilities,
an analysis of the rate impacts on residential and
small business customers over the life of the
sourcing agreements, and an analysis of the
likelihood that the initial clean coal facility
will commence commercial operation by and be
delivering power to the facility's busbar by 2016.
To assist in the preparation of its report, the

SB2150 Enrolled - 51 - LRB096 08714 MJR 18846 b
Commission, in consultation with the Agency, may
hire one or more experts or consultants, the costs
of which shall be paid for by the owner of the
initial clean coal facility. The Commission and
Agency may begin the process of selecting such
experts or consultants prior to receipt of the
facility cost report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,
based on the facility cost report and the
Commission's report, the General Assembly enacts
authorizing legislation approving (A) the
projected price, stated in cents per kilowatthour,
to be charged for electricity generated by the
initial clean coal facility, (B) the projected
impact on residential and small business
customers' bills over the life of the sourcing
agreements, and (C) the maximum allowable return
on equity for the project; and
(iv) Commission review. If the General
Assembly enacts authorizing legislation pursuant
to subparagraph (iii) approving a sourcing
agreement, the Commission shall, within 90 days of
such enactment, complete a review of such sourcing
agreement. During such time period, the Commission
shall implement any directive of the General

SB2150 Enrolled - 52 - LRB096 08714 MJR 18846 b
Assembly, resolve any disputes between the parties
to the sourcing agreement concerning the terms of
such agreement, approve the form of such
agreement, and issue an order finding that the
sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one or
more contractors or suppliers for the engineering,
procurement and construction of the components
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the core
plant based on one or more front end engineering
and design studies for the gasification island and
related facilities. The core plant shall include
all civil, structural, mechanical, electrical,
control, and safety systems.
(ii) an estimate of the capital cost of the
balance of the plant, including any capital costs
associated with sequestration of carbon dioxide
emissions and all interconnects and interfaces
required to operate the facility, such as
transmission of electricity, construction or

SB2150 Enrolled - 53 - LRB096 08714 MJR 18846 b
backfeed power supply, pipelines to transport
substitute natural gas or carbon dioxide, potable
water supply, natural gas supply, water supply,
water discharge, landfill, access roads, and coal
delivery.
The quoted construction costs shall be expressed
in nominal dollars as of the date that the quote is
prepared and shall include (1) capitalized financing
costs during construction, (2) taxes, insurance, and
other owner's costs, and (3) an assumed escalation in
materials and labor beyond the date as of which the
construction cost quote is expressed.
(B) The front end engineering and design study for
the gasification island and the cost study for the
balance of plant shall include sufficient design work
to permit quantification of major categories of
materials, commodities and labor hours, and receipt of
quotes from vendors of major equipment required to
construct and operate the clean coal facility.
(C) The facility cost report shall also include an
operating and maintenance cost quote that will provide
the estimated cost of delivered fuel, personnel,
maintenance contracts, chemicals, catalysts,
consumables, spares, and other fixed and variable
operations and maintenance costs.
(a) The delivered fuel cost estimate will be

SB2150 Enrolled - 54 - LRB096 08714 MJR 18846 b
provided by a recognized third party expert or
experts in the fuel and transportation industries.
(b) The balance of the operating and
maintenance cost quote, excluding delivered fuel
costs will be developed based on the inputs
provided by duly licensed engineering and
construction firms performing the construction
cost quote, potential vendors under long-term
service agreements and plant operating agreements,
or recognized third party plant operator or
operators.
The operating and maintenance cost quote
(including the cost of the front end engineering
and design study) shall be expressed in nominal
dollars as of the date that the quote is prepared
and shall include (1) taxes, insurance, and other
owner's costs, and (2) an assumed escalation in
materials and labor beyond the date as of which the
operating and maintenance cost quote is expressed.
(D) The facility cost report shall also include (i)
an analysis of the initial clean coal facility's
ability to deliver power and energy into the applicable
regional transmission organization markets and (ii) an
analysis of the expected capacity factor for the
initial clean coal facility.
(E) Amounts paid to third parties unrelated to the

SB2150 Enrolled - 55 - LRB096 08714 MJR 18846 b
owner or owners of the initial clean coal facility to
prepare the core plant construction cost quote,
including the front end engineering and design study,
and the operating and maintenance cost quote will be
reimbursed through Coal Development Bonds.
(5) Re-powering and retrofitting coal-fired power
plants previously owned by Illinois utilities to qualify as
clean coal facilities. During the 2009 procurement
planning process and thereafter, the Agency and the
Commission shall consider sourcing agreements covering
electricity generated by power plants that were previously
owned by Illinois utilities and that have been or will be
converted into clean coal facilities, as defined by Section
1-10 of this Act. Pursuant to such procurement planning
process, the owners of such facilities may propose to the
Agency sourcing agreements with utilities and alternative
retail electric suppliers required to comply with
subsection (d) of this Section and item (5) of subsection
(d) of Section 16-115 of the Public Utilities Act, covering
electricity generated by such facilities. In the case of
sourcing agreements that are power purchase agreements,
the contract price for electricity sales shall be
established on a cost of service basis. In the case of
sourcing agreements that are contracts for differences,
the contract price from which the reference price is
subtracted shall be established on a cost of service basis.

SB2150 Enrolled - 56 - LRB096 08714 MJR 18846 b
The Agency and the Commission may approve any such utility
sourcing agreements that do not exceed cost-based
benchmarks developed by the procurement administrator, in
consultation with the Commission staff, Agency staff and
the procurement monitor, subject to Commission review and
approval. The Commission shall have authority to inspect
all books and records associated with these clean coal
facilities during the term of any such contract.
(6) Costs incurred under this subsection (d) or
pursuant to a contract entered into under this subsection
(d) shall be deemed prudently incurred and reasonable in
amount and the electric utility shall be entitled to full
cost recovery pursuant to the tariffs filed with the
Commission.
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan
to the Commission. The Agency shall revise a procurement
plan if the Commission determines that it does not meet the
standards set forth in Section 16-111.5 of the Public
Utilities Act.
(g) The Agency shall assess fees to each affected
utility to recover the costs incurred in preparation of the
annual procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to

SB2150 Enrolled - 57 - LRB096 08714 MJR 18846 b
recover the costs incurred in connection with a competitive
procurement process.
(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09.)
Section 10. The State Finance Act is amended by adding
Section 5.719 as follows:
(30 ILCS 105/5.719 new)
Sec. 5.719. The Illinois Power Agency Renewable Energy
Resources Fund.
Section 15. The Illinois Procurement Code is amended by
changing Section 20-10 as follows:
(30 ILCS 500/20-10)
Sec. 20-10. Competitive sealed bidding.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for bids
shall be published in the Illinois Procurement Bulletin at
least 14 days before the date set in the invitation for the

SB2150 Enrolled - 58 - LRB096 08714 MJR 18846 b
opening of bids.
(d) Bid opening. Bids shall be opened publicly in the
presence of one or more witnesses at the time and place
designated in the invitation for bids. The name of each bidder,
the amount of each bid, and other relevant information as may
be specified by rule shall be recorded. After the award of the
contract, the winning bid and the record of each unsuccessful
bid shall be open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for bids,
which may include criteria to determine acceptability such as
inspection, testing, quality, workmanship, delivery, and
suitability for a particular purpose. Those criteria that will
affect the bid price and be considered in evaluation for award,
such as discounts, transportation costs, and total or life
cycle costs, shall be objectively measurable. The invitation
for bids shall set forth the evaluation criteria to be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the

SB2150 Enrolled - 59 - LRB096 08714 MJR 18846 b
correction or withdrawal of bids based on bid mistakes shall be
supported by written determination made by a State purchasing
officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and criteria
set forth in the invitation for bids, except when a State
purchasing officer determines it is not in the best interest of
the State and by written explanation determines another bidder
shall receive the award. The explanation shall appear in the
appropriate volume of the Illinois Procurement Bulletin.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
Section 1-75(a) of the Illinois Power Agency Act and Section
16-111.5(c) of the Public Utilities Act and to procure
renewable energy resources under Section 1-56 of the Illinois
Power Agency Act. These alternative procedures shall be set

SB2150 Enrolled - 60 - LRB096 08714 MJR 18846 b
forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate volume
of the Illinois Procurement Bulletin.
(Source: P.A. 95-481, eff. 8-28-07.)
Section 20. The Public Utilities Act is amended by changing
Sections 8-103 and 16-115 and by adding Section 16-115D as
follows:
(220 ILCS 5/8-103)
Sec. 8-103. Energy efficiency and demand-response
measures.
(a) It is the policy of the State that electric utilities
are required to use cost-effective energy efficiency and
demand-response measures to reduce delivery load. Requiring
investment in cost-effective energy efficiency and
demand-response measures will reduce direct and indirect costs
to consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation, transmission,
and distribution infrastructure. It serves the public interest
to allow electric utilities to recover costs for reasonably and
prudently incurred expenses for energy efficiency and
demand-response measures. As used in this Section,
"cost-effective" means that the measures satisfy the total
resource cost test. The low-income measures described in
subsection (f)(4) of this Section shall not be required to meet

SB2150 Enrolled - 61 - LRB096 08714 MJR 18846 b
the total resource cost test. For purposes of this Section, the
terms "energy-efficiency", "demand-response", "electric
utility", and "total resource cost test" shall have the
meanings set forth in the Illinois Power Agency Act. For
purposes of this Section, the amount per kilowatthour means the
total amount paid for electric service expressed on a per
kilowatthour basis. For purposes of this Section, the total
amount paid for electric service includes without limitation
estimated amounts paid for supply, transmission, distribution,
surcharges, and add-on-taxes.
(b) Electric utilities shall implement cost-effective
energy efficiency measures to meet the following incremental
annual energy savings goals:
(1) 0.2% of energy delivered in the year commencing
June 1, 2008;
(2) 0.4% of energy delivered in the year commencing
June 1, 2009;
(3) 0.6% of energy delivered in the year commencing
June 1, 2010;
(4) 0.8% of energy delivered in the year commencing
June 1, 2011;
(5) 1% of energy delivered in the year commencing June
1, 2012;
(6) 1.4% of energy delivered in the year commencing
June 1, 2013;
(7) 1.8% of energy delivered in the year commencing

SB2150 Enrolled - 62 - LRB096 08714 MJR 18846 b
June 1, 2014; and
(8) 2% of energy delivered in the year commencing June
1, 2015 and each year thereafter.
(c) Electric utilities shall implement cost-effective
demand-response measures to reduce peak demand by 0.1% over the
prior year for eligible retail customers, as defined in Section
16-111.5 of this Act, and for customers that elect hourly
service from the utility pursuant to Section 16-107 of this
Act, provided those customers have not been declared
competitive. This requirement commences June 1, 2008 and
continues for 10 years.
(d) Notwithstanding the requirements of subsections (b)
and (c) of this Section, an electric utility shall reduce the
amount of energy efficiency and demand-response measures
implemented in any single year by an amount necessary to limit
the estimated average increase in the amounts paid by retail
customers in connection with electric service due to the cost
of those measures to:
(1) in 2008, no more than 0.5% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007;
(2) in 2009, the greater of an additional 0.5% of the
amount paid per kilowatthour by those customers during the
year ending May 31, 2008 or 1% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007;

SB2150 Enrolled - 63 - LRB096 08714 MJR 18846 b
(3) in 2010, the greater of an additional 0.5% of the
amount paid per kilowatthour by those customers during the
year ending May 31, 2009 or 1.5% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007;
(4) in 2011, the greater of an additional 0.5% of the
amount paid per kilowatthour by those customers during the
year ending May 31, 2010 or 2% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007; and
(5) thereafter, the amount of energy efficiency and
demand-response measures implemented for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of these
measures included in the amounts paid by eligible retail
customers in connection with electric service to no more
than the greater of 2.015% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007 or the incremental amount per kilowatthour paid
for these measures in 2011.
No later than June 30, 2011, the Commission shall review
the limitation on the amount of energy efficiency and
demand-response measures implemented pursuant to this Section
and report to the General Assembly its findings as to whether
that limitation unduly constrains the procurement of energy
efficiency and demand-response measures.

SB2150 Enrolled - 64 - LRB096 08714 MJR 18846 b
(e) Electric utilities shall be responsible for overseeing
the design, development, and filing of energy efficiency and
demand-response plans with the Commission. Electric utilities
shall implement 100% of the demand-response measures in the
plans. Electric utilities shall implement 75% of the energy
efficiency measures approved by the Commission, and may, as
part of that implementation, outsource various aspects of
program development and implementation. The remaining 25% of
those energy efficiency measures approved by the Commission
shall be implemented by the Department of Commerce and Economic
Opportunity, and must be designed in conjunction with the
utility and the filing process. The Department may outsource
development and implementation of energy efficiency measures.
A minimum of 10% of the entire portfolio of cost-effective
energy efficiency measures shall be procured from units of
local government, municipal corporations, school districts,
and community college districts. The Department shall
coordinate the implementation of these measures.
The apportionment of the dollars to cover the costs to
implement the Department's share of the portfolio of energy
efficiency measures shall be made to the Department once the
Department has executed grants or contracts for energy
efficiency measures and provided supporting documentation for
those grants and the contracts to the utility.
The details of the measures implemented by the Department
shall be submitted by the Department to the Commission in

SB2150 Enrolled - 65 - LRB096 08714 MJR 18846 b
connection with the utility's filing regarding the energy
efficiency and demand-response measures that the utility
implements.
A utility providing approved energy efficiency and
demand-response measures in the State shall be permitted to
recover costs of those measures through an automatic adjustment
clause tariff filed with and approved by the Commission. The
tariff shall be established outside the context of a general
rate case. Each year the Commission shall initiate a review to
reconcile any amounts collected with the actual costs and to
determine the required adjustment to the annual tariff factor
to match annual expenditures.
Each utility shall include, in its recovery of costs, the
costs estimated for both the utility's and the Department's
implementation of energy efficiency and demand-response
measures. Costs collected by the utility for measures
implemented by the Department shall be submitted to the
Department pursuant to Section 605-323 of the Civil
Administrative Code of Illinois and shall be used by the
Department solely for the purpose of implementing these
measures. A utility shall not be required to advance any moneys
to the Department but only to forward such funds as it has
collected. The Department shall report to the Commission on an
annual basis regarding the costs actually incurred by the
Department in the implementation of the measures. Any changes
to the costs of energy efficiency measures as a result of plan

SB2150 Enrolled - 66 - LRB096 08714 MJR 18846 b
modifications shall be appropriately reflected in amounts
recovered by the utility and turned over to the Department.
The portfolio of measures, administered by both the
utilities and the Department, shall, in combination, be
designed to achieve the annual savings targets described in
subsections (b) and (c) of this Section, as modified by
subsection (d) of this Section.
The utility and the Department shall agree upon a
reasonable portfolio of measures and determine the measurable
corresponding percentage of the savings goals associated with
measures implemented by the utility or Department.
No utility shall be assessed a penalty under subsection (f)
of this Section for failure to make a timely filing if that
failure is the result of a lack of agreement with the
Department with respect to the allocation of responsibilities
or related costs or target assignments. In that case, the
Department and the utility shall file their respective plans
with the Commission and the Commission shall determine an
appropriate division of measures and programs that meets the
requirements of this Section.
If the Department is unable to meet incremental annual
performance goals for the portion of the portfolio implemented
by the Department, then the utility and the Department shall
jointly submit a modified filing to the Commission explaining
the performance shortfall and recommending an appropriate
course going forward, including any program modifications that

SB2150 Enrolled - 67 - LRB096 08714 MJR 18846 b
may be appropriate in light of the evaluations conducted under
item (7) of subsection (f) of this Section. In this case, the
utility obligation to collect the Department's costs and turn
over those funds to the Department under this subsection (e)
shall continue only if the Commission approves the
modifications to the plan proposed by the Department.
(f) No later than November 15, 2007, each electric utility
shall file an energy efficiency and demand-response plan with
the Commission to meet the energy efficiency and
demand-response standards for 2008 through 2010. Every 3 years
thereafter, each electric utility shall file an energy
efficiency and demand-response plan with the Commission. If a
utility does not file such a plan, it shall face a penalty of
$100,000 per day until the plan is filed. Each utility's plan
shall set forth the utility's proposals to meet the utility's
portion of the energy efficiency standards identified in
subsection (b) and the demand-response standards identified in
subsection (c) of this Section as modified by subsections (d)
and (e), taking into account the unique circumstances of the
utility's service territory. The Commission shall seek public
comment on the utility's plan and shall issue an order
approving or disapproving each plan within 3 months after its
submission. If the Commission disapproves a plan, the
Commission shall, within 30 days, describe in detail the
reasons for the disapproval and describe a path by which the
utility may file a revised draft of the plan to address the

SB2150 Enrolled - 68 - LRB096 08714 MJR 18846 b
Commission's concerns satisfactorily. If the utility does not
refile with the Commission within 60 days, the utility shall be
subject to penalties at a rate of $100,000 per day until the
plan is filed. This process shall continue, and penalties shall
accrue, until the utility has successfully filed a portfolio of
energy efficiency and demand-response measures. Penalties
shall be deposited into the Energy Efficiency Trust Fund. In
submitting proposed energy efficiency and demand-response
plans and funding levels to meet the savings goals adopted by
this Act the utility shall:
(1) Demonstrate that its proposed energy efficiency
and demand-response measures will achieve the requirements
that are identified in subsections (b) and (c) of this
Section, as modified by subsections (d) and (e).
(2) Present specific proposals to implement new
building and appliance standards that have been placed into
effect.
(3) Present estimates of the total amount paid for
electric service expressed on a per kilowatthour basis
associated with the proposed portfolio of measures
designed to meet the requirements that are identified in
subsections (b) and (c) of this Section, as modified by
subsections (d) and (e).
(4) Coordinate with the Department and the Department
of Healthcare and Family Services to present a portfolio of
energy efficiency measures targeted to households at or

SB2150 Enrolled - 69 - LRB096 08714 MJR 18846 b
below 150% of the poverty level at a level proportionate to
the those households' share of total annual utility
revenues in Illinois from households at or below 150% of
the poverty level. The energy efficiency programs shall be
targeted to households with incomes at or below 80% of area
median income.
(5) Demonstrate that its overall portfolio of energy
efficiency and demand-response measures, not including
programs covered by item (4) of this subsection (f), are
cost-effective using the total resource cost test and
represent a diverse cross-section of opportunities for
customers of all rate classes to participate in the
programs.
(6) Include a proposed cost-recovery tariff mechanism
to fund the proposed energy efficiency and demand-response
measures and to ensure the recovery of the prudently and
reasonably incurred costs of Commission-approved programs.
(7) Provide for an annual independent evaluation of the
performance of the cost-effectiveness of the utility's
portfolio of measures and the Department's portfolio of
measures, as well as a full review of the 3-year results of
the broader net program impacts and, to the extent
practical, for adjustment of the measures on a
going-forward basis as a result of the evaluations. The
resources dedicated to evaluation shall not exceed 3% of
portfolio resources in any given year.

SB2150 Enrolled - 70 - LRB096 08714 MJR 18846 b
(g) No more than 3% of energy efficiency and
demand-response program revenue may be allocated for
demonstration of breakthrough equipment and devices.
(h) This Section does not apply to an electric utility that
on December 31, 2005 provided electric service to fewer than
100,000 customers in Illinois.
(i) If, after 2 years, an electric utility fails to meet
the efficiency standard specified in subsection (b) of this
Section, as modified by subsections (d) and (e), it shall make
a contribution to the Low-Income Home Energy Assistance
Program. The combined total liability for failure to meet the
goal shall be $1,000,000, which shall be assessed as follows: a
large electric utility shall pay $665,000, and a medium
electric utility shall pay $335,000. If, after 3 years, an
electric utility fails to meet the efficiency standard
specified in subsection (b) of this Section, as modified by
subsections (d) and (e), it shall make a contribution to the
Low-Income Home Energy Assistance Program. The combined total
liability for failure to meet the goal shall be $1,000,000,
which shall be assessed as follows: a large electric utility
shall pay $665,000, and a medium electric utility shall pay
$335,000. In addition, the responsibility for implementing the
energy efficiency measures of the utility making the payment
shall be transferred to the Illinois Power Agency if, after 3
years, or in any subsequent 3-year period, the utility fails to
meet the efficiency standard specified in subsection (b) of

SB2150 Enrolled - 71 - LRB096 08714 MJR 18846 b
this Section, as modified by subsections (d) and (e). The
Agency shall implement a competitive procurement program to
procure resources necessary to meet the standards specified in
this Section as modified by subsections (d) and (e), with costs
for those resources to be recovered in the same manner as
products purchased through the procurement plan as provided in
Section 16-111.5. The Director shall implement this
requirement in connection with the procurement plan as provided
in Section 16-111.5.
For purposes of this Section, (i) a "large electric
utility" is an electric utility that, on December 31, 2005,
served more than 2,000,000 electric customers in Illinois; (ii)
a "medium electric utility" is an electric utility that, on
December 31, 2005, served 2,000,000 or fewer but more than
100,000 electric customers in Illinois; and (iii) Illinois
electric utilities that are affiliated by virtue of a common
parent company are considered a single electric utility.
(j) If, after 3 years, or any subsequent 3-year period, the
Department fails to implement the Department's share of energy
efficiency measures required by the standards in subsection
(b), then the Illinois Power Agency may assume responsibility
for and control of the Department's share of the required
energy efficiency measures. The Agency shall implement a
competitive procurement program to procure resources necessary
to meet the standards specified in this Section, with the costs
of these resources to be recovered in the same manner as

SB2150 Enrolled - 72 - LRB096 08714 MJR 18846 b
provided for the Department in this Section.
(k) No electric utility shall be deemed to have failed to
meet the energy efficiency standards to the extent any such
failure is due to a failure of the Department or the Agency.
(Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08.)
(220 ILCS 5/16-115)
(Text of Section before amendment by P.A. 95-1027)
Sec. 16-115. Certification of alternative retail electric
suppliers.
(a) Any alternative retail electric supplier must obtain a
certificate of service authority from the Commission in
accordance with this Section before serving any retail customer
or other user located in this State. An alternative retail
electric supplier may request, and the Commission may grant, a
certificate of service authority for the entire State or for a
specified geographic area of the State.
(b) An alternative retail electric supplier seeking a
certificate of service authority shall file with the Commission
a verified application containing information showing that the
applicant meets the requirements of this Section. The
alternative retail electric supplier shall publish notice of
its application in the official State newspaper within 10 days
following the date of its filing. No later than 45 days after
the application is properly filed with the Commission, and such
notice is published, the Commission shall issue its order

SB2150 Enrolled - 73 - LRB096 08714 MJR 18846 b
granting or denying the application.
(c) An application for a certificate of service authority
shall identify the area or areas in which the applicant intends
to offer service and the types of services it intends to offer.
Applicants that seek to serve residential or small commercial
retail customers within a geographic area that is smaller than
an electric utility's service area shall submit evidence
demonstrating that the designation of this smaller area does
not violate Section 16-115A. An applicant that seeks to serve
residential or small commercial retail customers may state in
its application for certification any limitations that will be
imposed on the number of customers or maximum load to be
served.
(d) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application and
such other information as the applicant may submit:
(1) That the applicant possesses sufficient technical,
financial and managerial resources and abilities to
provide the service for which it seeks a certificate of
service authority. In determining the level of technical,
financial and managerial resources and abilities which the
applicant must demonstrate, the Commission shall consider
(i) the characteristics, including the size and financial
sophistication, of the customers that the applicant seeks
to serve, and (ii) whether the applicant seeks to provide

SB2150 Enrolled - 74 - LRB096 08714 MJR 18846 b
electric power and energy using property, plant and
equipment which it owns, controls or operates;
(2) That the applicant will comply with all applicable
federal, State, regional and industry rules, policies,
practices and procedures for the use, operation, and
maintenance of the safety, integrity and reliability, of
the interconnected electric transmission system;
(3) That the applicant will only provide service to
retail customers in an electric utility's service area that
are eligible to take delivery services under this Act;
(4) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish and provide the information required
by Section 16-112. Any data related to contracts for the
purchase and sale of electric power and energy shall be
made available for review by the Staff of the Commission on
a confidential and proprietary basis and only to the extent
and for the purposes which the Commission determines are
reasonably necessary in order to carry out the purposes of
this Act;
(5) That the applicant will procure renewable energy
resources in accordance with Section 16-115D of this Act,
and will source electricity from clean coal facilities, as
defined in Section 1-10 of the Illinois Power Agency Act,
in amounts at least equal to the percentages set forth in
subsections (c) and (d) of Section 1-75 of the Illinois

SB2150 Enrolled - 75 - LRB096 08714 MJR 18846 b
Power Agency Act. For purposes of this Section:
(i) (Blank);
(ii) (Blank);
(iii) the required sourcing of electricity
generated by clean coal facilities, other than the
initial clean coal facility, shall be limited to the
amount of electricity that can be procured or sourced
at a price at or below the benchmarks approved by the
Commission each year in accordance with item (1) of
subsection (c) and items (1) and (5) of subsection (d)
of Section 1-75 of the Illinois Power Agency Act;
(iv) all alternative retail electric suppliers
shall execute a sourcing agreement to source
electricity from the initial clean coal facility, on
the terms set forth in paragraphs (3) and (4) of
subsection (d) of Section 1-75 of the Illinois Power
Agency Act, except that in lieu of the requirements in
subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
paragraph (3) of that subsection (d), the applicant
shall execute one or more of the following:
(1) if the sourcing agreement is a power
purchase agreement, a contract with the initial
clean coal facility to purchase in each hour an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are

SB2150 Enrolled - 76 - LRB096 08714 MJR 18846 b
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatt-hours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatt-hours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatt-hours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act; or
(2) if the sourcing agreement is a contract for
differences, a contract with the initial clean
coal facility in each hour with respect to an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois

SB2150 Enrolled - 77 - LRB096 08714 MJR 18846 b
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatt-hours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatt-hours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatt-hours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act;
(v) if, in any year after the first year of
commercial operation, the owner of the clean coal
facility fails to demonstrate to the Commission that
the initial clean coal facility captured and
sequestered at least 50% of the total carbon emissions
that the facility would otherwise emit or that
sequestration of emissions from prior years has
failed, resulting in the release of carbon into the
atmosphere, the owner of the facility must offset
excess emissions. Any such carbon offsets must be

SB2150 Enrolled - 78 - LRB096 08714 MJR 18846 b
permanent, additional, verifiable, real, located
within the State of Illinois, and legally and
practicably enforceable. The costs of any such offsets
that are not recoverable shall not exceed $15 million
in any given year. No costs of any such purchases of
carbon offsets may be recovered from an alternative
retail electric supplier or its customers. All carbon
offsets purchased for this purpose and any carbon
emission credits associated with sequestration of
carbon from the facility must be permanently retired.
The initial clean coal facility shall not forfeit its
designation as a clean coal facility if the facility
fails to fully comply with the applicable carbon
sequestration requirements in any given year, provided
the requisite offsets are purchased. However, the
Attorney General, on behalf of the People of the State
of Illinois, may specifically enforce the facility's
sequestration requirement and the other terms of this
contract provision. Compliance with the sequestration
requirements and offset purchase requirements that
apply to the initial clean coal facility shall be
reviewed annually by an independent expert retained by
the owner of the initial clean coal facility, with the
advance written approval of the Attorney General;
(vi) The Commission shall, after notice and
hearing, revoke the certification of any alternative

SB2150 Enrolled - 79 - LRB096 08714 MJR 18846 b
retail electric supplier that fails to execute a
sourcing agreement with the initial clean coal
facility as required by item (5) of subsection (d) of
this Section. The sourcing agreements with this
initial clean coal facility shall be subject to both
approval of the initial clean coal facility by the
General Assembly and satisfaction of the requirements
of item (4) of subsection (d) of Section 1-75 of the
Illinois Power Agency Act, and shall be executed within
90 days after any such approval by the General
Assembly. The Commission shall not accept an
application for certification from an alternative
retail electric supplier that has lost certification
under this subsection (d), or any corporate affiliate
thereof, for at least one year from the date of
revocation;
(6) With respect to an applicant that seeks to serve
residential or small commercial retail customers, that the
area to be served by the applicant and any limitations it
proposes on the number of customers or maximum amount of
load to be served meet the provisions of Section 16-115A,
provided, that the Commission can extend the time for
considering such a certificate request by up to 90 days,
and can schedule hearings on such a request;
(7) That the applicant meets the requirements of
subsection (a) of Section 16-128; and

SB2150 Enrolled - 80 - LRB096 08714 MJR 18846 b
(8) That the applicant will comply with all other
applicable laws and regulations.
(e) A retail customer that owns a cogeneration or
self-generation facility and that seeks certification only to
provide electric power and energy from such facility to retail
customers at separate locations which customers are both (i)
owned by, or a subsidiary or other corporate affiliate of, such
applicant and (ii) eligible for delivery services, shall be
granted a certificate of service authority upon filing an
application and notifying the Commission that it has entered
into an agreement with the relevant electric utilities pursuant
to Section 16-118. Provided, however, that if the retail
customer owning such cogeneration or self-generation facility
would not be charged a transition charge due to the exemption
provided under subsection (f) of Section 16-108 prior to the
certification, and the retail customers at separate locations
are taking delivery services in conjunction with purchasing
power and energy from the facility, the retail customer on
whose premises the facility is located shall not thereafter be
required to pay transition charges on the power and energy that
such retail customer takes from the facility.
(f) The Commission shall have the authority to promulgate
rules and regulations to carry out the provisions of this
Section. On or before May 1, 1999, the Commission shall adopt a
rule or rules applicable to the certification of those
alternative retail electric suppliers that seek to serve only

SB2150 Enrolled - 81 - LRB096 08714 MJR 18846 b
nonresidential retail customers with maximum electrical
demands of one megawatt or more which shall provide for (i)
expedited and streamlined procedures for certification of such
alternative retail electric suppliers and (ii) specific
criteria which, if met by any such alternative retail electric
supplier, shall constitute the demonstration of technical,
financial and managerial resources and abilities to provide
service required by subsection (d) (1) of this Section, such as
a requirement to post a bond or letter of credit, from a
responsible surety or financial institution, of sufficient
size for the nature and scope of the services to be provided;
demonstration of adequate insurance for the scope and nature of
the services to be provided; and experience in providing
similar services in other jurisdictions.
(Source: P.A. 95-130, eff. 1-1-08.)
(Text of Section after amendment by P.A. 95-1027)
Sec. 16-115. Certification of alternative retail electric
suppliers.
(a) Any alternative retail electric supplier must obtain a
certificate of service authority from the Commission in
accordance with this Section before serving any retail customer
or other user located in this State. An alternative retail
electric supplier may request, and the Commission may grant, a
certificate of service authority for the entire State or for a
specified geographic area of the State.

SB2150 Enrolled - 82 - LRB096 08714 MJR 18846 b
(b) An alternative retail electric supplier seeking a
certificate of service authority shall file with the Commission
a verified application containing information showing that the
applicant meets the requirements of this Section. The
alternative retail electric supplier shall publish notice of
its application in the official State newspaper within 10 days
following the date of its filing. No later than 45 days after
the application is properly filed with the Commission, and such
notice is published, the Commission shall issue its order
granting or denying the application.
(c) An application for a certificate of service authority
shall identify the area or areas in which the applicant intends
to offer service and the types of services it intends to offer.
Applicants that seek to serve residential or small commercial
retail customers within a geographic area that is smaller than
an electric utility's service area shall submit evidence
demonstrating that the designation of this smaller area does
not violate Section 16-115A. An applicant that seeks to serve
residential or small commercial retail customers may state in
its application for certification any limitations that will be
imposed on the number of customers or maximum load to be
served.
(d) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application and
such other information as the applicant may submit:

SB2150 Enrolled - 83 - LRB096 08714 MJR 18846 b
(1) That the applicant possesses sufficient technical,
financial and managerial resources and abilities to
provide the service for which it seeks a certificate of
service authority. In determining the level of technical,
financial and managerial resources and abilities which the
applicant must demonstrate, the Commission shall consider
(i) the characteristics, including the size and financial
sophistication, of the customers that the applicant seeks
to serve, and (ii) whether the applicant seeks to provide
electric power and energy using property, plant and
equipment which it owns, controls or operates;
(2) That the applicant will comply with all applicable
federal, State, regional and industry rules, policies,
practices and procedures for the use, operation, and
maintenance of the safety, integrity and reliability, of
the interconnected electric transmission system;
(3) That the applicant will only provide service to
retail customers in an electric utility's service area that
are eligible to take delivery services under this Act;
(4) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish and provide the information required
by Section 16-112. Any data related to contracts for the
purchase and sale of electric power and energy shall be
made available for review by the Staff of the Commission on
a confidential and proprietary basis and only to the extent

SB2150 Enrolled - 84 - LRB096 08714 MJR 18846 b
and for the purposes which the Commission determines are
reasonably necessary in order to carry out the purposes of
this Act;
(5) That the applicant will procure renewable energy
resources in accordance with Section 16-115D of this Act,
and will source electricity from clean coal facilities, as
defined in Section 1-10 of the Illinois Power Agency Act,
in amounts at least equal to the percentages set forth in
subsections (c) and (d) of Section 1-75 of the Illinois
Power Agency Act. For purposes of this Section:
(i) (Blank); the required procurement of renewable
energy resources shall be measured as a percentage of
the actual amount of electricity (megawatt-hours)
supplied by the alternative retail electric supplier
in the prior calendar year, as reported for that year
to the Commission. This obligation applies to all
electricity supplied pursuant to retail contracts
executed, extended, or otherwise revised after the
effective date of this amendatory Act, provided the
alternative retail electric supplier submits all
documentation needed by the Commission to determine
the actual amount of electricity supplied under
contracts that may be excluded under this limitation;
(ii) (Blank); an alternative retail electric
supplier need not actually deliver electricity to its
customers to comply with this Section, provided that if

SB2150 Enrolled - 85 - LRB096 08714 MJR 18846 b
the alternative retail electric supplier claims credit
for such purpose, subsequent purchasers shall not
receive any emission credits or renewable energy
credits in connection with the purchase of such
electricity. Alternative retail electric suppliers
shall maintain adequate records documenting the
contractual disposition of all electricity procured to
comply with this Section and shall file an accounting
in the report which must be filed with the Commission
on April 1 of each year, starting in 2010, in
accordance with subsection (d-5) of this Section;
(iii) the required procurement of renewable energy
resources and sourcing of electricity generated by
clean coal facilities, other than the initial clean
coal facility, shall be limited to the amount of
electricity that can be procured or sourced at a price
at or below the benchmarks approved by the Commission
each year in accordance with item (1) of subsection (c)
and items (1) and (5) of subsection (d) of Section 1-75
of the Illinois Power Agency Act;
(iv) all alternative retail electric suppliers
shall execute a sourcing agreement to source
electricity from the initial clean coal facility, on
the terms set forth in paragraphs (3) and (4) of
subsection (d) of Section 1-75 of the Illinois Power
Agency Act, except that in lieu of the requirements in

SB2150 Enrolled - 86 - LRB096 08714 MJR 18846 b
subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
paragraph (3) of that subsection (d), the applicant
shall execute one or more of the following:
(1) if the sourcing agreement is a power
purchase agreement, a contract with the initial
clean coal facility to purchase in each hour an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatthours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatthours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to

SB2150 Enrolled - 87 - LRB096 08714 MJR 18846 b
subsection (c) of Section 16-116 of this Act; or
(2) if the sourcing agreement is a contract for
differences, a contract with the initial clean
coal facility in each hour with respect to an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatthours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatthours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act;
(v) if, in any year after the first year of

SB2150 Enrolled - 88 - LRB096 08714 MJR 18846 b
commercial operation, the owner of the clean coal
facility fails to demonstrate to the Commission that
the initial clean coal facility captured and
sequestered at least 50% of the total carbon emissions
that the facility would otherwise emit or that
sequestration of emissions from prior years has
failed, resulting in the release of carbon into the
atmosphere, the owner of the facility must offset
excess emissions. Any such carbon offsets must be
permanent, additional, verifiable, real, located
within the State of Illinois, and legally and
practicably enforceable. The costs of any such offsets
that are not recoverable shall not exceed $15 million
in any given year. No costs of any such purchases of
carbon offsets may be recovered from an alternative
retail electric supplier or its customers. All carbon
offsets purchased for this purpose and any carbon
emission credits associated with sequestration of
carbon from the facility must be permanently retired.
The initial clean coal facility shall not forfeit its
designation as a clean coal facility if the facility
fails to fully comply with the applicable carbon
sequestration requirements in any given year, provided
the requisite offsets are purchased. However, the
Attorney General, on behalf of the People of the State
of Illinois, may specifically enforce the facility's

SB2150 Enrolled - 89 - LRB096 08714 MJR 18846 b
sequestration requirement and the other terms of this
contract provision. Compliance with the sequestration
requirements and offset purchase requirements that
apply to the initial clean coal facility shall be
reviewed annually by an independent expert retained by
the owner of the initial clean coal facility, with the
advance written approval of the Attorney General;
(vi) The Commission shall, after notice and
hearing, revoke the certification of any alternative
retail electric supplier that fails to execute a
sourcing agreement with the initial clean coal
facility as required by item (5) of subsection (d) of
this Section. The sourcing agreements with this
initial clean coal facility shall be subject to both
approval of the initial clean coal facility by the
General Assembly and satisfaction of the requirements
of item (4) of subsection (d) of Section 1-75 of the
Illinois Power Agency Act, and shall be executed within
90 days after any such approval by the General
Assembly. The Commission shall not accept an
application for certification from an alternative
retail electric supplier that has lost certification
under this subsection (d), or any corporate affiliate
thereof, for at least one year from the date of
revocation;
(6) With respect to an applicant that seeks to serve

SB2150 Enrolled - 90 - LRB096 08714 MJR 18846 b
residential or small commercial retail customers, that the
area to be served by the applicant and any limitations it
proposes on the number of customers or maximum amount of
load to be served meet the provisions of Section 16-115A,
provided, that the Commission can extend the time for
considering such a certificate request by up to 90 days,
and can schedule hearings on such a request;
(7) That the applicant meets the requirements of
subsection (a) of Section 16-128; and
(8) That the applicant will comply with all other
applicable laws and regulations.
(d-5) (Blank). The Commission shall, after notice and
hearing, revoke the certification of any alternative retail
electric supplier that fails to execute a sourcing agreement
with the initial clean coal facility, as required by item (5)
of subsection (d) of this Section. The sourcing agreements with
this initial clean coal facility shall be subject to both
approval of the initial clean coal facility by the General
Assembly and satisfaction of the requirements of paragraph (4)
of subsection (d) of Section 1-75 of the Illinois Power Agency
Act, and shall be executed within 90 days after any such
approval by the General Assembly. The Commission shall also
revoke the certification of any alternative retail electric
supplier that, on April 1, 2010 or on April 1 of any year
thereafter, fails to demonstrate that the electricity provided
to the alternative retail electricity supplier's Illinois

SB2150 Enrolled - 91 - LRB096 08714 MJR 18846 b
customers during the previous year was generated by renewable
energy resources and clean coal facilities in amounts at least
equal to the percentages set forth in subsections (c) and (d)
of Section 1-75 of the Illinois Power Agency Act, as limited by
subsection (d)(5)(iii) of this Section. The Commission shall
not accept an application for certification from an alternative
retail electric supplier that has lost certification under this
subsection (d-5), or any corporate affiliate thereof, for at
least one year from the date of revocation.
(e) A retail customer that owns a cogeneration or
self-generation facility and that seeks certification only to
provide electric power and energy from such facility to retail
customers at separate locations which customers are both (i)
owned by, or a subsidiary or other corporate affiliate of, such
applicant and (ii) eligible for delivery services, shall be
granted a certificate of service authority upon filing an
application and notifying the Commission that it has entered
into an agreement with the relevant electric utilities pursuant
to Section 16-118. Provided, however, that if the retail
customer owning such cogeneration or self-generation facility
would not be charged a transition charge due to the exemption
provided under subsection (f) of Section 16-108 prior to the
certification, and the retail customers at separate locations
are taking delivery services in conjunction with purchasing
power and energy from the facility, the retail customer on
whose premises the facility is located shall not thereafter be

SB2150 Enrolled - 92 - LRB096 08714 MJR 18846 b
required to pay transition charges on the power and energy that
such retail customer takes from the facility.
(f) The Commission shall have the authority to promulgate
rules and regulations to carry out the provisions of this
Section. On or before May 1, 1999, the Commission shall adopt a
rule or rules applicable to the certification of those
alternative retail electric suppliers that seek to serve only
nonresidential retail customers with maximum electrical
demands of one megawatt or more which shall provide for (i)
expedited and streamlined procedures for certification of such
alternative retail electric suppliers and (ii) specific
criteria which, if met by any such alternative retail electric
supplier, shall constitute the demonstration of technical,
financial and managerial resources and abilities to provide
service required by subsection (d) (1) of this Section, such as
a requirement to post a bond or letter of credit, from a
responsible surety or financial institution, of sufficient
size for the nature and scope of the services to be provided;
demonstration of adequate insurance for the scope and nature of
the services to be provided; and experience in providing
similar services in other jurisdictions.
(Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09.)
(220 ILCS 5/16-115D new)
Sec. 16-115D. Renewable portfolio standard for alternative
retail electric suppliers and electric utilities operating

SB2150 Enrolled - 93 - LRB096 08714 MJR 18846 b
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) 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 12-month period
in each year thereafter except as provided in item (6) of
this subsection (a).
(3) 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) through (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)
through (3) of subsection (b) of this Section shall come

SB2150 Enrolled - 94 - LRB096 08714 MJR 18846 b
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.
(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,
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.

SB2150 Enrolled - 95 - LRB096 08714 MJR 18846 b
(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) 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 and any one or
combination of the following means to cover the remainder of
the alternative retail electric supplier's compliance
obligation:
(1) Generating electricity using renewable energy
resources identified pursuant to item (4) of subsection (a)
of this Section.
(2) Purchasing electricity generated using renewable
energy resources identified pursuant to item (4) of
subsection (a) of this Section through an energy contract.
(3) Purchasing renewable energy credits from renewable
energy resources identified pursuant to item (4) of
subsection (a) of this Section.
(4) Making an alternative compliance payment as

SB2150 Enrolled - 96 - LRB096 08714 MJR 18846 b
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
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

SB2150 Enrolled - 97 - LRB096 08714 MJR 18846 b
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
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

SB2150 Enrolled - 98 - LRB096 08714 MJR 18846 b
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
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. Each alternative
compliance payment rate shall be equal to the total amount
of dollars for which the utility contracted to spend on
renewable 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. 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
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

SB2150 Enrolled - 99 - LRB096 08714 MJR 18846 b
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),
multiplied by (ii) the actual amount of metered electricity
delivered by the alternative retail electric supplier to
retail customers 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

SB2150 Enrolled - 100 - LRB096 08714 MJR 18846 b
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) of
subsection (a) of this Section and the actual amount of
metered electricity delivered by the alternative retail
electric supplier to retail customers within the service
territory during the compliance period.
(4) 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.
(5) The Commission, in consultation with the Illinois
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,

SB2150 Enrolled - 101 - LRB096 08714 MJR 18846 b
prepare and submit to the Commission a report, in a format to
be specified by the Commission on or before December 31, 2009,
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 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

SB2150 Enrolled - 102 - LRB096 08714 MJR 18846 b
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
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.

SB2150 Enrolled - 103 - LRB096 08714 MJR 18846 b
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.
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.