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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB2150 Introduced 2/20/2009, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
220 ILCS 5/16-132 new
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.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning utilities.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by adding
Section 16-132 as follows:
(220 ILCS 5/16-132 new)
Sec. 16-132. Renewable portfolio standards.
(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 follows:
(1) The definition of renewable energy resources
contained in Section 1-10 of the Illinois Power Agency Act
shall apply 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
electricity (megawatt-hours) supplied by the alternative
retail electric supplier in the prior calendar year, as
reported for that prior calendar year to the Commission.
(3) The quantity of renewable energy resources will be
in amounts at least equal to the percentages set forth in
item (1) of subsection (c) of Section 1-75 of the Illinois

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Power Agency Act.
(4) The required procurement of renewable energy
resources by an alternative retail electric supplier
commences with the June 1, 2010 through May 31, 2011
procurement year, and continues each year thereafter for
the comparable 12-month period; provided, however, that
retail contracts in effect prior to January 12, 2009 are
exempt from compliance with these requirements, provided
that 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. Any retail contracts
executed between January 12, 2009 and the effective date of
this amendatory Act of the 96th General Assembly shall be
exempt from compliance with these requirements for a
24-month period after the effective date of this amendatory
Act of the 96th General Assembly. Beginning with the June
1, 2012 through May 31, 2013 procurement year, all
megawatt-hours supplied by the alternative retail electric
supplier after June 1, 2011 to retail customers shall be
included in the calculation to determine the quantity of
renewable energy resources to be procured. Alternative
retail electric suppliers shall be required to submit all
documentation needed by the Commission to determine the
actual amount of electricity supplied under contracts that
may be excluded under either of the limitations included in

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this Section.
(b) An alternative retail electric supplier shall comply
with the renewable energy portfolio standards by any one or a
combination of the following means:
(1) producing electricity from renewable energy
systems;
(2) purchasing electricity through a renewable energy
contract;
(3) purchasing renewable energy credits; or
(4) making an alternative compliance payment as
described in subsection (d) of this Section.
(c) Use of renewable energy certificates.
(1) Renewable energy certificates 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 years after the year of
generation for the purpose of complying with a renewable
portfolio standard in those 2 subsequent years.
(2) An alternative retail electric supplier is
responsible for demonstrating that a renewable energy
certificate 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 certificate.
(3) The same renewable energy certificate may be used
by an alternative retail electric supplier to comply with a

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federal renewable portfolio standard and a renewable
portfolio standard established under this Act. An
alternative retail electric supplier that uses a renewable
energy certificate to comply with a renewable portfolio
standard imposed by any other state may not use the same
certificate to comply with a renewable portfolio standard
established under this Act.
(d) Alternative compliance payments.
(1) The Commission shall establish an alternative
compliance rate for each compliance year for the
alternative retail electric suppliers that are subject to a
renewable portfolio standard. The rate shall be expressed
in dollars per megawatt-hour and shall at no time exceed
the amount paid by eligible retail customers of an electric
utility to meet the renewable portfolio standards set forth
in Section 1-75 of the Illinois Power Agency Act.
(2) In establishing an alternative compliance rate,
the Commission shall set the rate at least 3 years forward
so as to provide adequate incentive for the alternative
retail electric supplier to purchase or generate
qualifying renewable energy resources in lieu of using an
alternative compliance payment to meet the renewable
portfolio standard applicable to the alternative retail
electric supplier.
(3) In any given compliance year, an alternative retail
electric supplier may elect to use an alternative

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compliance payment to comply with all or a part of the
applicable renewable portfolio standard. 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.
(4) All alternative compliance payments by alternative
retail electric suppliers shall be deposited in an account
or accounts as shall be determined by the Commission on an
annual basis; provided, however, that 20% of assessed
alternative compliance charges shall be deposited in the
Renewable Energy Resources Trust Fund, the Energy
Efficiency Trust Fund, or the Public Utility Fund. Amounts
in both of the accounts shall accrue interest at the rate
of return authorized by the Commission.
(5) Amounts in accounts established under item (4) of
this subsection (d) may be expended only for costs
associated with incentive programs for new generating
capacity from renewable energy resources or energy
conservation programs within the State of Illinois. The
Commission must approve expenditures from an account or
accounts established under item (4) of this subsection.
(6) The Commission shall establish initial alternative
compliance rates as required by this Section no later than
June 1, 2009 and shall determine the formula or process for
annually setting the alternative compliance rate for 3
years forward no later than January 1 of each year for the

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next 3-year period.
(e) Each alternative retail electric supplier shall, by
September 1, 2011 and by September 1 of each year thereafter,
prepare and submit to the Commission a report that provides
information certifying compliance by the alternative retail
electric supplier with this Section, including copies of all
PJM Environmental Information System's Generation Attribute
Tracking System ("PJM-GATS"), MISO's Midwest Renewable Energy
Tracking System ("MISO M-RETS") reports, or contracts and other
documentation relating to compliance. 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) Within 120 days after the effective date of this
amendatory Act of the 96th General Assembly, but in no event
later than October 1, 2009, the Commission shall establish
rules to implement this Section, which may include, but are not
limited to, all of the following:
(1) A standard format for the submission of annual
reports by an alternative retail electric supplier.
(2) Use of the MISO M-RETS and PJM-GATS systems for
independent verification of the location of generation,
resource type, month and year of generation for all

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eligible qualifying renewable energy facilities, including
all existing renewable energy systems eligible to receive
renewable energy credits and a procedure for certification
of new qualifying renewable energy facilities.
(3) A method for the banking, transferring, and
retiring of renewable energy certificates.
(4) A method to address the implications on the
required procurement of renewable resources when
alternative retail electric suppliers exit or enter the
Illinois market.
(5) Ensuring that alternative retail electric
suppliers are not placed at a competitive disadvantage
compared to the eligible retail customers of electric
utilities subject to Section 1-75 of the Illinois Power
Agency Act.
(6) The provision of any other information that the
Commission determines necessary.
(g) 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 this
Section, including an order issued or rule promulgated under
this Section. If the Commission finds, after notice and
hearing, that an alternative electric supplier has violated
this Section, the Commission may do one or more of the
following:
(1) issue a cease and desist order;

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(2) order the alternative retail electric supplier to
immediately come into compliance with the Act and to pay a
civil fine of not less than $5,000 or more than $50,000 for
each violation;
(3) revoke the license of the alternative electric
supplier; or
(4) impose any other penalty that the Commission deems
reasonable and appropriate.
The Commission shall not accept an application for
certification from an alternative retail electric supplier
that has lost certification under this subsection (g), or any
corporate affiliate thereof, for at least one year from the
date of revocation.
(h) All of the provisions of this Section apply to an
electric utility operating outside its service area, except
that 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 this State outside of the
utility's service territory in the prior calendar year, as
reported for that prior calendar year to the Commission.
(i) Biennially, the Commission shall submit to the General
Assembly a report that discusses the status of renewable energy
in this State and the effect of this Section on electricity
prices and retail and wholesale electric markets. In each
report, the Commission shall make any recommendations it may

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have concerning amendments to this Act.