Bill Text: IL SB2150 | 2009-2010 | 96th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Engrossed.html
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-Engrossed.html
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1 | AN ACT concerning utilities.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Power Agency Act is amended by | ||||||
5 | changing Sections 1-10 and 1-75 and by adding Section 1-56 as | ||||||
6 | follows:
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7 | (20 ILCS 3855/1-10) | ||||||
8 | (Text of Section before amendment by P.A. 95-1027 )
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9 | Sec. 1-10. Definitions. | ||||||
10 | "Agency" means the Illinois Power Agency. | ||||||
11 | "Agency loan agreement" means any agreement pursuant to | ||||||
12 | which the Illinois Finance Authority agrees to loan the | ||||||
13 | proceeds of revenue bonds issued with respect to a project to | ||||||
14 | the Agency upon terms providing for loan repayment installments | ||||||
15 | at least sufficient to pay when due all principal of, interest | ||||||
16 | and premium, if any, on those revenue bonds, and providing for | ||||||
17 | maintenance, insurance, and other matters in respect of the | ||||||
18 | project. | ||||||
19 | "Authority" means the Illinois Finance Authority. | ||||||
20 | "Commission" means the Illinois Commerce Commission. | ||||||
21 | "Costs incurred in connection with the development and | ||||||
22 | construction of a facility" means: | ||||||
23 | (1) the cost of acquisition of all real property and |
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1 | improvements in connection therewith and equipment and | ||||||
2 | other property, rights, and easements acquired that are | ||||||
3 | deemed necessary for the operation and maintenance of the | ||||||
4 | facility; | ||||||
5 | (2) financing costs with respect to bonds, notes, and | ||||||
6 | other evidences of indebtedness of the Agency; | ||||||
7 | (3) all origination, commitment, utilization, | ||||||
8 | facility, placement, underwriting, syndication, credit | ||||||
9 | enhancement, and rating agency fees; | ||||||
10 | (4) engineering, design, procurement, consulting, | ||||||
11 | legal, accounting, title insurance, survey, appraisal, | ||||||
12 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
13 | interest rate swap, capitalized interest and other | ||||||
14 | financing costs, and other expenses for professional | ||||||
15 | services; and | ||||||
16 | (5) the costs of plans, specifications, site study and | ||||||
17 | investigation, installation, surveys, other Agency costs | ||||||
18 | and estimates of costs, and other expenses necessary or | ||||||
19 | incidental to determining the feasibility of any project, | ||||||
20 | together with such other expenses as may be necessary or | ||||||
21 | incidental to the financing, insuring, acquisition, and | ||||||
22 | construction of a specific project and placing that project | ||||||
23 | in operation. | ||||||
24 | "Department" means the Department of Commerce and Economic | ||||||
25 | Opportunity. | ||||||
26 | "Director" means the Director of the Illinois Power Agency. |
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1 | "Demand-response" means measures that decrease peak | ||||||
2 | electricity demand or shift demand from peak to off-peak | ||||||
3 | periods. | ||||||
4 | "Energy efficiency" means measures that reduce the amount | ||||||
5 | of electricity required to achieve a given end use. | ||||||
6 | "Electric utility" has the same definition as found in | ||||||
7 | Section 16-102 of the Public Utilities Act. | ||||||
8 | "Facility" means an electric generating unit or a | ||||||
9 | co-generating unit that produces electricity along with | ||||||
10 | related equipment necessary to connect the facility to an | ||||||
11 | electric transmission or distribution system. | ||||||
12 | "Governmental aggregator" means one or more units of local | ||||||
13 | government that individually or collectively procure | ||||||
14 | electricity to serve residential retail electrical loads | ||||||
15 | located within its or their jurisdiction. | ||||||
16 | "Local government" means a unit of local government as | ||||||
17 | defined in Article VII of Section 1 of the Illinois | ||||||
18 | Constitution. | ||||||
19 | "Municipality" means a city, village, or incorporated | ||||||
20 | town. | ||||||
21 | "Person" means any natural person, firm, partnership, | ||||||
22 | corporation, either domestic or foreign, company, association, | ||||||
23 | limited liability company, joint stock company, or association | ||||||
24 | and includes any trustee, receiver, assignee, or personal | ||||||
25 | representative thereof. | ||||||
26 | "Project" means the planning, bidding, and construction of |
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1 | a facility. | ||||||
2 | "Public utility" has the same definition as found in | ||||||
3 | Section 3-105 of the Public Utilities Act. | ||||||
4 | "Real property" means any interest in land together with | ||||||
5 | all structures, fixtures, and improvements thereon, including | ||||||
6 | lands under water and riparian rights, any easements, | ||||||
7 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
8 | interests, together with any liens, judgments, mortgages, or | ||||||
9 | other claims or security interests related to real property. | ||||||
10 | "Renewable energy credit" means a tradable credit that | ||||||
11 | represents the environmental attributes of a certain amount of | ||||||
12 | energy produced from a renewable energy resource. | ||||||
13 | "Renewable energy resources" includes energy and its | ||||||
14 | associated renewable energy credit or renewable energy credits | ||||||
15 | from wind, solar thermal energy, photovoltaic cells and panels, | ||||||
16 | biodiesel, crops and untreated and unadulterated organic waste | ||||||
17 | biomass, trees and tree waste trimmings , hydropower that does | ||||||
18 | not involve new construction or significant expansion of | ||||||
19 | hydropower dams, and other alternative sources of | ||||||
20 | environmentally preferable energy. For purposes of this Act, | ||||||
21 | landfill gas produced in the State is considered a renewable | ||||||
22 | energy resource. "Renewable energy resources" does not include | ||||||
23 | the incineration or burning of tires, garbage, general | ||||||
24 | household, institutional, and commercial waste, industrial | ||||||
25 | lunchroom or office waste, landscape waste other than trees and | ||||||
26 | tree waste trimmings , railroad crossties, utility poles, or |
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1 | construction or demolition debris, other than untreated and | ||||||
2 | unadulterated waste wood. | ||||||
3 | "Revenue bond" means any bond, note, or other evidence of | ||||||
4 | indebtedness issued by the Authority, the principal and | ||||||
5 | interest of which is payable solely from revenues or income | ||||||
6 | derived from any project or activity of the Agency. | ||||||
7 | "Total resource cost test" or "TRC test" means a standard | ||||||
8 | that is met if, for an investment in energy efficiency or | ||||||
9 | demand-response measures, the benefit-cost ratio is greater | ||||||
10 | than one. The benefit-cost ratio is the ratio of the net | ||||||
11 | present value of the total benefits of the program to the net | ||||||
12 | present value of the total costs as calculated over the | ||||||
13 | lifetime of the measures. A total resource cost test compares | ||||||
14 | the sum of avoided electric utility costs, representing the | ||||||
15 | benefits that accrue to the system and the participant in the | ||||||
16 | delivery of those efficiency measures, to the sum of all | ||||||
17 | incremental costs of end-use measures that are implemented due | ||||||
18 | to the program (including both utility and participant | ||||||
19 | contributions), plus costs to administer, deliver, and | ||||||
20 | evaluate each demand-side program, to quantify the net savings | ||||||
21 | obtained by substituting the demand-side program for supply | ||||||
22 | resources. In calculating avoided costs of power and energy | ||||||
23 | that an electric utility would otherwise have had to acquire, | ||||||
24 | reasonable estimates shall be included of financial costs | ||||||
25 | likely to be imposed by future regulations and legislation on | ||||||
26 | emissions of greenhouse gases.
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1 | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09.)
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2 | (Text of Section after amendment by P.A. 95-1027 ) | ||||||
3 | Sec. 1-10. Definitions. | ||||||
4 | "Agency" means the Illinois Power Agency. | ||||||
5 | "Agency loan agreement" means any agreement pursuant to | ||||||
6 | which the Illinois Finance Authority agrees to loan the | ||||||
7 | proceeds of revenue bonds issued with respect to a project to | ||||||
8 | the Agency upon terms providing for loan repayment installments | ||||||
9 | at least sufficient to pay when due all principal of, interest | ||||||
10 | and premium, if any, on those revenue bonds, and providing for | ||||||
11 | maintenance, insurance, and other matters in respect of the | ||||||
12 | project. | ||||||
13 | "Authority" means the Illinois Finance Authority. | ||||||
14 | "Clean coal facility" means an electric generating | ||||||
15 | facility that uses primarily coal as a feedstock and that | ||||||
16 | captures and sequesters carbon emissions at the following | ||||||
17 | levels: at least 50% of the total carbon emissions that the | ||||||
18 | facility would otherwise emit if, at the time construction | ||||||
19 | commences, the facility is scheduled to commence operation | ||||||
20 | before 2016, at least 70% of the total carbon emissions that | ||||||
21 | the facility would otherwise emit if, at the time construction | ||||||
22 | commences, the facility is scheduled to commence operation | ||||||
23 | during 2016 or 2017, and at least 90% of the total carbon | ||||||
24 | emissions that the facility would otherwise emit if, at the | ||||||
25 | time construction commences, the facility is scheduled to |
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1 | commence operation after 2017. The power block of the clean | ||||||
2 | coal facility shall not exceed allowable emission rates for | ||||||
3 | sulfur dioxide, nitrogen oxides, carbon monoxide, particulates | ||||||
4 | and mercury for a natural gas-fired combined-cycle facility the | ||||||
5 | same size as and in the same location as the clean coal | ||||||
6 | facility at the time the clean coal facility obtains an | ||||||
7 | approved air permit. All coal used by a clean coal facility | ||||||
8 | shall have high volatile bituminous rank and greater than 1.7 | ||||||
9 | pounds of sulfur per million btu content, unless the clean coal | ||||||
10 | facility does not use gasification technology and was operating | ||||||
11 | as a conventional coal-fired electric generating facility on | ||||||
12 | June 1, 2009 ( the effective date of Public Act 95-1027) this | ||||||
13 | amendatory Act of the 95th General Assembly . | ||||||
14 | "Clean coal SNG facility" means a facility that uses a | ||||||
15 | gasification process to produce substitute natural gas, that | ||||||
16 | sequesters at least 90% of the total carbon emissions that the | ||||||
17 | facility would otherwise emit and that uses coal as a | ||||||
18 | feedstock, with all such coal having a high bituminous rank and | ||||||
19 | greater than 1.7 pounds of sulfur per million btu content. | ||||||
20 | "Commission" means the Illinois Commerce Commission. | ||||||
21 | "Costs incurred in connection with the development and | ||||||
22 | construction of a facility" means: | ||||||
23 | (1) the cost of acquisition of all real property and | ||||||
24 | improvements in connection therewith and equipment and | ||||||
25 | other property, rights, and easements acquired that are | ||||||
26 | deemed necessary for the operation and maintenance of the |
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1 | facility; | ||||||
2 | (2) financing costs with respect to bonds, notes, and | ||||||
3 | other evidences of indebtedness of the Agency; | ||||||
4 | (3) all origination, commitment, utilization, | ||||||
5 | facility, placement, underwriting, syndication, credit | ||||||
6 | enhancement, and rating agency fees; | ||||||
7 | (4) engineering, design, procurement, consulting, | ||||||
8 | legal, accounting, title insurance, survey, appraisal, | ||||||
9 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
10 | interest rate swap, capitalized interest and other | ||||||
11 | financing costs, and other expenses for professional | ||||||
12 | services; and | ||||||
13 | (5) the costs of plans, specifications, site study and | ||||||
14 | investigation, installation, surveys, other Agency costs | ||||||
15 | and estimates of costs, and other expenses necessary or | ||||||
16 | incidental to determining the feasibility of any project, | ||||||
17 | together with such other expenses as may be necessary or | ||||||
18 | incidental to the financing, insuring, acquisition, and | ||||||
19 | construction of a specific project and placing that project | ||||||
20 | in operation. | ||||||
21 | "Department" means the Department of Commerce and Economic | ||||||
22 | Opportunity. | ||||||
23 | "Director" means the Director of the Illinois Power Agency. | ||||||
24 | "Demand-response" means measures that decrease peak | ||||||
25 | electricity demand or shift demand from peak to off-peak | ||||||
26 | periods. |
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1 | "Energy efficiency" means measures that reduce the amount | ||||||
2 | of electricity required to achieve a given end use. | ||||||
3 | "Electric utility" has the same definition as found in | ||||||
4 | Section 16-102 of the Public Utilities Act. | ||||||
5 | "Facility" means an electric generating unit or a | ||||||
6 | co-generating unit that produces electricity along with | ||||||
7 | related equipment necessary to connect the facility to an | ||||||
8 | electric transmission or distribution system. | ||||||
9 | "Governmental aggregator" means one or more units of local | ||||||
10 | government that individually or collectively procure | ||||||
11 | electricity to serve residential retail electrical loads | ||||||
12 | located within its or their jurisdiction. | ||||||
13 | "Local government" means a unit of local government as | ||||||
14 | defined in Article VII of Section 1 of the Illinois | ||||||
15 | Constitution. | ||||||
16 | "Municipality" means a city, village, or incorporated | ||||||
17 | town. | ||||||
18 | "Person" means any natural person, firm, partnership, | ||||||
19 | corporation, either domestic or foreign, company, association, | ||||||
20 | limited liability company, joint stock company, or association | ||||||
21 | and includes any trustee, receiver, assignee, or personal | ||||||
22 | representative thereof. | ||||||
23 | "Project" means the planning, bidding, and construction of | ||||||
24 | a facility. | ||||||
25 | "Public utility" has the same definition as found in | ||||||
26 | Section 3-105 of the Public Utilities Act. |
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1 | "Real property" means any interest in land together with | ||||||
2 | all structures, fixtures, and improvements thereon, including | ||||||
3 | lands under water and riparian rights, any easements, | ||||||
4 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
5 | interests, together with any liens, judgments, mortgages, or | ||||||
6 | other claims or security interests related to real property. | ||||||
7 | "Renewable energy credit" means a tradable credit that | ||||||
8 | represents the environmental attributes of a certain amount of | ||||||
9 | energy produced from a renewable energy resource. | ||||||
10 | "Renewable energy resources" includes energy and its | ||||||
11 | associated renewable energy credit or renewable energy credits | ||||||
12 | from wind, solar thermal energy, photovoltaic cells and panels, | ||||||
13 | biodiesel, crops and untreated and unadulterated organic waste | ||||||
14 | biomass, trees and tree waste trimmings , hydropower that does | ||||||
15 | not involve new construction or significant expansion of | ||||||
16 | hydropower dams, and other alternative sources of | ||||||
17 | environmentally preferable energy. For purposes of this Act, | ||||||
18 | landfill gas produced in the State is considered a renewable | ||||||
19 | energy resource. "Renewable energy resources" does not include | ||||||
20 | the incineration or burning of tires, garbage, general | ||||||
21 | household, institutional, and commercial waste, industrial | ||||||
22 | lunchroom or office waste, landscape waste other than trees and | ||||||
23 | tree waste trimmings , railroad crossties, utility poles, or | ||||||
24 | construction or demolition debris, other than untreated and | ||||||
25 | unadulterated waste wood. | ||||||
26 | "Revenue bond" means any bond, note, or other evidence of |
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1 | indebtedness issued by the Authority, the principal and | ||||||
2 | interest of which is payable solely from revenues or income | ||||||
3 | derived from any project or activity of the Agency. | ||||||
4 | "Sequester" means permanent storage of carbon dioxide by | ||||||
5 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
6 | or an oil reservoir, directly or through an enhanced oil | ||||||
7 | recovery process that may involve intermediate storage in a | ||||||
8 | salt dome. | ||||||
9 | "Servicing agreement" means (i) in the case of an electric | ||||||
10 | utility, an agreement between the owner of a clean coal | ||||||
11 | facility and such electric utility, which agreement shall have | ||||||
12 | terms and conditions meeting the requirements of paragraph (3) | ||||||
13 | of subsection (d) of Section 1-75, and (ii) in the case of an | ||||||
14 | alternative retail electric supplier, an agreement between the | ||||||
15 | owner of a clean coal facility and such alternative retail | ||||||
16 | electric supplier, which agreement shall have terms and | ||||||
17 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
18 | the Public Utilities Act. | ||||||
19 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
20 | by gasification of hydrocarbon feedstock, which is | ||||||
21 | substantially interchangeable in use and distribution with | ||||||
22 | conventional natural gas. | ||||||
23 | "Total resource cost test" or "TRC test" means a standard | ||||||
24 | that is met if, for an investment in energy efficiency or | ||||||
25 | demand-response measures, the benefit-cost ratio is greater | ||||||
26 | than one. The benefit-cost ratio is the ratio of the net |
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1 | present value of the total benefits of the program to the net | ||||||
2 | present value of the total costs as calculated over the | ||||||
3 | lifetime of the measures. A total resource cost test compares | ||||||
4 | the sum of avoided electric utility costs, representing the | ||||||
5 | benefits that accrue to the system and the participant in the | ||||||
6 | delivery of those efficiency measures, to the sum of all | ||||||
7 | incremental costs of end-use measures that are implemented due | ||||||
8 | to the program (including both utility and participant | ||||||
9 | contributions), plus costs to administer, deliver, and | ||||||
10 | evaluate each demand-side program, to quantify the net savings | ||||||
11 | obtained by substituting the demand-side program for supply | ||||||
12 | resources. In calculating avoided costs of power and energy | ||||||
13 | that an electric utility would otherwise have had to acquire, | ||||||
14 | reasonable estimates shall be included of financial costs | ||||||
15 | likely to be imposed by future regulations and legislation on | ||||||
16 | emissions of greenhouse gases.
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17 | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; | ||||||
18 | 95-1027, eff. 6-1-09; revised 1-14-09.)
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19 | (20 ILCS 3855/1-56 new) | ||||||
20 | Sec. 1-56. Illinois Power Agency Renewable Energy | ||||||
21 | Resources Fund. | ||||||
22 | (a) The Illinois Power Agency Renewable Energy Resources | ||||||
23 | Fund is created as a special fund in the State treasury. | ||||||
24 | (b) The Illinois Power Agency Renewable Energy Resources | ||||||
25 | Fund shall be administered by the Agency to procure renewable |
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1 | energy resources. Prior to June 1, 2011, resources procured | ||||||
2 | pursuant to this Section shall be procured from facilities | ||||||
3 | located in Illinois, provided the resources are available from | ||||||
4 | those facilities. If resources are not available in Illinois, | ||||||
5 | then they shall be procured in states that adjoin Illinois. If | ||||||
6 | resources are not available in Illinois or in states that | ||||||
7 | adjoin Illinois, then they may be purchased elsewhere. | ||||||
8 | Beginning June 1, 2011, resources procured pursuant to this | ||||||
9 | Section shall be procured from facilities located in Illinois | ||||||
10 | or states that adjoin Illinois. If resources are not available | ||||||
11 | in Illinois or in states that adjoin Illinois, then they may be | ||||||
12 | procured elsewhere. To the extent available, at least 75% of | ||||||
13 | these renewable energy resources shall come from wind | ||||||
14 | generation and, starting June 1, 2015, at least 6% of the | ||||||
15 | renewable energy resources used to meet these standards shall | ||||||
16 | come from solar photovoltaics. | ||||||
17 | (c) The Agency shall procure renewable energy resources at | ||||||
18 | least once each year in conjunction with a procurement event | ||||||
19 | for electric utilities required to comply with Section 1-75 of | ||||||
20 | the Act and shall, whenever possible, enter into long-term | ||||||
21 | contracts. | ||||||
22 | (d) The price paid to procure renewable energy credits | ||||||
23 | using monies from the Illinois Power Agency Renewable Energy | ||||||
24 | Resources Fund shall not exceed the winning bid prices paid for | ||||||
25 | like resources procured for electric utilities required to | ||||||
26 | comply with Section 1-75 of this Act. |
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1 | (e) All renewable energy credits procured using monies from | ||||||
2 | the Illinois Power Agency Renewable Energy Resources Fund shall | ||||||
3 | be permanently retired. | ||||||
4 | (f) The procurement process described in this Section is | ||||||
5 | exempt from the requirements of the Illinois Procurement Code, | ||||||
6 | pursuant to Section 20-10 of that Code. | ||||||
7 | (g) All disbursements from the Illinois Power Agency | ||||||
8 | Renewable Energy Resources Fund shall be made only upon | ||||||
9 | warrants of the Comptroller drawn upon the Treasurer as | ||||||
10 | custodian of the Fund upon vouchers signed by the Director or | ||||||
11 | by the person or persons designated by the Director for that | ||||||
12 | purpose. The Comptroller is authorized to draw the warrant upon | ||||||
13 | vouchers so signed. The Treasurer shall accept all warrants so | ||||||
14 | signed and shall be released from liability for all payments | ||||||
15 | made on those warrants. | ||||||
16 | (h) The Illinois Power Agency Renewable Energy Resources | ||||||
17 | Fund shall not be subject to sweeps, administrative charges, or | ||||||
18 | chargebacks, including, but not limited to, those authorized | ||||||
19 | under Section 8h of the State Finance Act, that would in any | ||||||
20 | way result in the transfer of any funds from this Fund to any | ||||||
21 | other fund of this State or in having any such funds utilized | ||||||
22 | for any purpose other than the express purposes set forth in | ||||||
23 | this Section.
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24 | (20 ILCS 3855/1-75) | ||||||
25 | (Text of Section before amendment by P.A. 95-1027 )
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1 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
2 | and Procurement Bureau has the following duties and | ||||||
3 | responsibilities: | ||||||
4 | (a) The Planning and Procurement Bureau shall each | ||||||
5 | year, beginning in 2008, develop procurement plans and | ||||||
6 | conduct competitive procurement processes in accordance | ||||||
7 | with the requirements of Section 16-111.5 of the Public | ||||||
8 | Utilities Act for the eligible retail customers of electric | ||||||
9 | utilities that on December 31, 2005 provided electric | ||||||
10 | service to at least 100,000 customers in Illinois. For the | ||||||
11 | purposes of this Section, the term "eligible retail | ||||||
12 | customers" has the same definition as found in Section | ||||||
13 | 16-111.5(a) of the Public Utilities Act. | ||||||
14 | (1) The Agency shall each year, beginning in 2008, | ||||||
15 | as needed, issue a request for qualifications for | ||||||
16 | experts or expert consulting firms to develop the | ||||||
17 | procurement plans in accordance with Section 16-111.5 | ||||||
18 | of the Public Utilities Act. In order to qualify an | ||||||
19 | expert or expert consulting firm must have: | ||||||
20 | (A) direct previous experience assembling | ||||||
21 | large-scale power supply plans or portfolios for | ||||||
22 | end-use customers; | ||||||
23 | (B) an advanced degree in economics, | ||||||
24 | mathematics, engineering, risk management, or a | ||||||
25 | related area of study; | ||||||
26 | (C) 10 years of experience in the electricity |
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1 | sector, including managing supply risk; | ||||||
2 | (D) expertise in wholesale electricity market | ||||||
3 | rules, including those established by the Federal | ||||||
4 | Energy Regulatory Commission and regional | ||||||
5 | transmission organizations; | ||||||
6 | (E) expertise in credit protocols and | ||||||
7 | familiarity with contract protocols; | ||||||
8 | (F) adequate resources to perform and fulfill | ||||||
9 | the required functions and responsibilities; and | ||||||
10 | (G) the absence of a conflict of interest and | ||||||
11 | inappropriate bias for or against potential | ||||||
12 | bidders or the affected electric utilities. | ||||||
13 | (2) The Agency shall each year, as needed, issue a | ||||||
14 | request for qualifications for a procurement | ||||||
15 | administrator to conduct the competitive procurement | ||||||
16 | processes in accordance with Section 16-111.5 of the | ||||||
17 | Public Utilities Act. In order to qualify an expert or | ||||||
18 | expert consulting firm must have: | ||||||
19 | (A) direct previous experience administering a | ||||||
20 | large-scale competitive procurement process; | ||||||
21 | (B) an advanced degree in economics, | ||||||
22 | mathematics, engineering, or a related area of | ||||||
23 | study; | ||||||
24 | (C) 10 years of experience in the electricity | ||||||
25 | sector, including risk management experience; | ||||||
26 | (D) expertise in wholesale electricity market |
| |||||||
| |||||||
1 | rules, including those established by the Federal | ||||||
2 | Energy Regulatory Commission and regional | ||||||
3 | transmission organizations; | ||||||
4 | (E) expertise in credit and contract | ||||||
5 | protocols; | ||||||
6 | (F) adequate resources to perform and fulfill | ||||||
7 | the required functions and responsibilities; and | ||||||
8 | (G) the absence of a conflict of interest and | ||||||
9 | inappropriate bias for or against potential | ||||||
10 | bidders or the affected electric utilities. | ||||||
11 | (3) The Agency shall provide affected utilities | ||||||
12 | and other interested parties with the lists of | ||||||
13 | qualified experts or expert consulting firms | ||||||
14 | identified through the request for qualifications | ||||||
15 | processes that are under consideration to develop the | ||||||
16 | procurement plans and to serve as the procurement | ||||||
17 | administrator. The Agency shall also provide each | ||||||
18 | qualified expert's or expert consulting firm's | ||||||
19 | response to the request for qualifications. All | ||||||
20 | information provided under this subparagraph shall | ||||||
21 | also be provided to the Commission. The Agency may | ||||||
22 | provide by rule for fees associated with supplying the | ||||||
23 | information to utilities and other interested parties. | ||||||
24 | These parties shall, within 5 business days, notify the | ||||||
25 | Agency in writing if they object to any experts or | ||||||
26 | expert consulting firms on the lists. Objections shall |
| |||||||
| |||||||
1 | be based on: | ||||||
2 | (A) failure to satisfy qualification criteria; | ||||||
3 | (B) identification of a conflict of interest; | ||||||
4 | or | ||||||
5 | (C) evidence of inappropriate bias for or | ||||||
6 | against potential bidders or the affected | ||||||
7 | utilities. | ||||||
8 | The Agency shall remove experts or expert | ||||||
9 | consulting firms from the lists within 10 days if there | ||||||
10 | is a reasonable basis for an objection and provide the | ||||||
11 | updated lists to the affected utilities and other | ||||||
12 | interested parties. If the Agency fails to remove an | ||||||
13 | expert or expert consulting firm from a list, an | ||||||
14 | objecting party may seek review by the Commission | ||||||
15 | within 5 days thereafter by filing a petition, and the | ||||||
16 | Commission shall render a ruling on the petition within | ||||||
17 | 10 days. There is no right of appeal of the | ||||||
18 | Commission's ruling. | ||||||
19 | (4) The Agency shall issue requests for proposals | ||||||
20 | to the qualified experts or expert consulting firms to | ||||||
21 | develop a procurement plan for the affected utilities | ||||||
22 | and to serve as procurement administrator. | ||||||
23 | (5) The Agency shall select an expert or expert | ||||||
24 | consulting firm to develop procurement plans based on | ||||||
25 | the proposals submitted and shall award one-year | ||||||
26 | contracts to those selected with an option for the |
| |||||||
| |||||||
1 | Agency for a one-year renewal. | ||||||
2 | (6) The Agency shall select an expert or expert | ||||||
3 | consulting firm, with approval of the Commission, to | ||||||
4 | serve as procurement administrator based on the | ||||||
5 | proposals submitted. If the Commission rejects, within | ||||||
6 | 5 days, the Agency's selection, the Agency shall submit | ||||||
7 | another recommendation within 3 days based on the | ||||||
8 | proposals submitted. The Agency shall award a one-year | ||||||
9 | contract to the expert or expert consulting firm so | ||||||
10 | selected with Commission approval with an option for | ||||||
11 | the Agency for a one-year renewal. | ||||||
12 | (b) The experts or expert consulting firms retained by | ||||||
13 | the Agency shall, as appropriate, prepare procurement | ||||||
14 | plans, and conduct a competitive procurement process as | ||||||
15 | prescribed in Section 16-111.5 of the Public Utilities Act, | ||||||
16 | to ensure adequate, reliable, affordable, efficient, and | ||||||
17 | environmentally sustainable electric service at the lowest | ||||||
18 | total cost over time, taking into account any benefits of | ||||||
19 | price stability, for eligible retail customers of electric | ||||||
20 | utilities that on December 31, 2005 provided electric | ||||||
21 | service to at least 100,000 customers in the State of | ||||||
22 | Illinois. | ||||||
23 | (c) Renewable portfolio standard. | ||||||
24 | (1) The procurement plans shall include | ||||||
25 | cost-effective renewable energy resources. A minimum | ||||||
26 | percentage of each utility's total supply to serve the |
| |||||||
| |||||||
1 | load of eligible retail customers, as defined in | ||||||
2 | Section 16-111.5(a) of the Public Utilities Act, | ||||||
3 | procured for each of the following years shall be | ||||||
4 | generated from cost-effective renewable energy | ||||||
5 | resources: at least 2% by June 1, 2008; at least 4% by | ||||||
6 | June 1, 2009; at least 5% by June 1, 2010; at least 6% | ||||||
7 | by June 1, 2011; at least 7% by June 1, 2012; at least | ||||||
8 | 8% by June 1, 2013; at least 9% by June 1, 2014; at | ||||||
9 | least 10% by June 1, 2015; and increasing by at least | ||||||
10 | 1.5% each year thereafter to at least 25% by June 1, | ||||||
11 | 2025. To the extent that it is available, at least 75% | ||||||
12 | of the renewable energy resources used to meet these | ||||||
13 | standards shall come from wind generation and, | ||||||
14 | beginning on June 1, 2015, at least 6% of the renewable | ||||||
15 | energy resources used to meet these standards shall | ||||||
16 | come from photovoltaics . For purposes of this Section, | ||||||
17 | "cost-effective" means that the costs of procuring | ||||||
18 | renewable energy resources do not cause the limit | ||||||
19 | stated in paragraph (2) of this subsection (c) to be | ||||||
20 | exceeded. | ||||||
21 | (2) For purposes of this subsection (c), the | ||||||
22 | required procurement of cost-effective renewable | ||||||
23 | energy resources for a particular year shall be | ||||||
24 | measured as a percentage of the actual amount of | ||||||
25 | electricity (megawatt-hours) supplied by the electric | ||||||
26 | utility to eligible retail customers in the planning |
| |||||||
| |||||||
1 | year ending immediately prior to the procurement. For | ||||||
2 | purposes of this subsection (c), the amount per | ||||||
3 | kilowatthour means the total amount paid for electric | ||||||
4 | service expressed on a per kilowatthour basis. For | ||||||
5 | purposes of this subsection (c), the total amount paid | ||||||
6 | for electric service includes without limitation | ||||||
7 | amounts paid for supply, transmission, distribution, | ||||||
8 | surcharges, and add-on taxes. | ||||||
9 | Notwithstanding the requirements of this | ||||||
10 | subsection (c), the total of renewable energy | ||||||
11 | resources procured pursuant to the procurement plan | ||||||
12 | for any single year shall be reduced by an amount | ||||||
13 | necessary to limit the annual estimated average net | ||||||
14 | increase due to the costs of these resources included | ||||||
15 | in the amounts paid by eligible retail customers in | ||||||
16 | connection with electric service to: | ||||||
17 | (A) in 2008, no more than 0.5% of the amount | ||||||
18 | paid per kilowatthour by those customers during | ||||||
19 | the year ending May 31, 2007; | ||||||
20 | (B) in 2009, the greater of an additional 0.5% | ||||||
21 | of the amount paid per kilowatthour by those | ||||||
22 | customers during the year ending May 31, 2008 or 1% | ||||||
23 | of the amount paid per kilowatthour by those | ||||||
24 | customers during the year ending May 31, 2007; | ||||||
25 | (C) in 2010, the greater of an additional 0.5% | ||||||
26 | of the amount paid per kilowatthour by those |
| |||||||
| |||||||
1 | customers during the year ending May 31, 2009 or | ||||||
2 | 1.5% of the amount paid per kilowatthour by those | ||||||
3 | customers during the year ending May 31, 2007; | ||||||
4 | (D) in 2011, the greater of an additional 0.5% | ||||||
5 | of the amount paid per kilowatthour by those | ||||||
6 | customers during the year ending May 31, 2010 or 2% | ||||||
7 | of the amount paid per kilowatthour by those | ||||||
8 | customers during the year ending May 31, 2007; and | ||||||
9 | (E) thereafter, the amount of renewable energy | ||||||
10 | resources procured pursuant to the procurement | ||||||
11 | plan for any single year shall be reduced by an | ||||||
12 | amount necessary to limit the estimated average | ||||||
13 | net increase due to the cost of these resources | ||||||
14 | included in the amounts paid by eligible retail | ||||||
15 | customers in connection with electric service to | ||||||
16 | no more than the greater of 2.015% of the amount | ||||||
17 | paid per kilowatthour by those customers during | ||||||
18 | the year ending May 31, 2007 or the incremental | ||||||
19 | amount per kilowatthour paid for these resources | ||||||
20 | in 2011. | ||||||
21 | No later than June 30, 2011, the Commission shall | ||||||
22 | review the limitation on the amount of renewable energy | ||||||
23 | resources procured pursuant to this subsection (c) and | ||||||
24 | report to the General Assembly its findings as to | ||||||
25 | whether that limitation unduly constrains the | ||||||
26 | procurement of cost-effective renewable energy |
| |||||||
| |||||||
1 | resources. | ||||||
2 | (3) Through June 1, 2011, renewable energy | ||||||
3 | resources shall be counted for the purpose of meeting | ||||||
4 | the renewable energy standards set forth in paragraph | ||||||
5 | (1) of this subsection (c) only if they are generated | ||||||
6 | from facilities located in the State, provided that | ||||||
7 | cost-effective renewable energy resources are | ||||||
8 | available from those facilities. If those | ||||||
9 | cost-effective resources are not available in | ||||||
10 | Illinois, they shall be procured in states that adjoin | ||||||
11 | Illinois and may be counted towards compliance. If | ||||||
12 | those cost-effective resources are not available in | ||||||
13 | Illinois or in states that adjoin Illinois, they shall | ||||||
14 | be purchased elsewhere and shall be counted towards | ||||||
15 | compliance. After June 1, 2011, cost-effective | ||||||
16 | renewable energy resources located in Illinois and in | ||||||
17 | states that adjoin Illinois may be counted towards | ||||||
18 | compliance with the standards set forth in paragraph | ||||||
19 | (1) of this subsection (c). If those cost-effective | ||||||
20 | resources are not available in Illinois or in states | ||||||
21 | that adjoin Illinois, they shall be purchased | ||||||
22 | elsewhere and shall be counted towards compliance. | ||||||
23 | (4) The electric utility shall retire all | ||||||
24 | renewable energy credits used to comply with the | ||||||
25 | standard. | ||||||
26 | (5) Beginning with the year commencing June 1, |
| |||||||
| |||||||
1 | 2010, an electric utility subject to this subsection | ||||||
2 | (c) shall apply the lesser of the maximum alternative | ||||||
3 | compliance payment rate or the most recent estimated | ||||||
4 | alternative compliance payment rate for its service | ||||||
5 | territory for the corresponding compliance period, | ||||||
6 | established pursuant to subsection (d) of Section | ||||||
7 | 16-115D of the Public Utilities Act to its retail | ||||||
8 | customers that take service pursuant to the electric | ||||||
9 | utility's hourly pricing tariff or tariffs. The | ||||||
10 | electric utility shall retain all amounts collected as | ||||||
11 | a result of the application of the alternative | ||||||
12 | compliance payment rate or rates to such customers, | ||||||
13 | and, beginning in 2011, the utility shall include in | ||||||
14 | the information provided under item (1) of subsection | ||||||
15 | (d) of Section 16-111.5 of the Public Utilities Act the | ||||||
16 | amounts collected under the alternative compliance | ||||||
17 | payment rate or rates for the prior year ending May 31. | ||||||
18 | Notwithstanding any limitation on the procurement of | ||||||
19 | renewable energy resources imposed by item (2) of this | ||||||
20 | subsection (c), the Agency shall increase its spending | ||||||
21 | on the purchase of renewable energy resources to be | ||||||
22 | procured by the electric utility for the next plan year | ||||||
23 | by an amount equal to the amounts collected by the | ||||||
24 | utility under the alternative compliance payment rate | ||||||
25 | or rates in the prior year ending May 31. | ||||||
26 | (d) The draft procurement plans are subject to public |
| |||||||
| |||||||
1 | comment, as required by Section 16-111.5 of the Public | ||||||
2 | Utilities Act. | ||||||
3 | (e) The Agency shall submit the final procurement plan | ||||||
4 | to the Commission. The Agency shall revise a procurement | ||||||
5 | plan if the Commission determines that it does not meet the | ||||||
6 | standards set forth in Section 16-111.5 of the Public | ||||||
7 | Utilities Act. | ||||||
8 | (f) The Agency shall assess fees to each affected | ||||||
9 | utility to recover the costs incurred in preparation of the | ||||||
10 | annual procurement plan for the utility. | ||||||
11 | (g) The Agency shall assess fees to each bidder to | ||||||
12 | recover the costs incurred in connection with a competitive | ||||||
13 | procurement process.
| ||||||
14 | (Source: P.A. 95-481, eff. 8-28-07.)
| ||||||
15 | (Text of Section after amendment by P.A. 95-1027 ) | ||||||
16 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
17 | and Procurement Bureau has the following duties and | ||||||
18 | responsibilities: | ||||||
19 | (a) The Planning and Procurement Bureau shall each | ||||||
20 | year, beginning in 2008, develop procurement plans and | ||||||
21 | conduct competitive procurement processes in accordance | ||||||
22 | with the requirements of Section 16-111.5 of the Public | ||||||
23 | Utilities Act for the eligible retail customers of electric | ||||||
24 | utilities that on December 31, 2005 provided electric | ||||||
25 | service to at least 100,000 customers in Illinois. For the |
| |||||||
| |||||||
1 | purposes of this Section, the term "eligible retail | ||||||
2 | customers" has the same definition as found in Section | ||||||
3 | 16-111.5(a) of the Public Utilities Act. | ||||||
4 | (1) The Agency shall each year, beginning in 2008, | ||||||
5 | as needed, issue a request for qualifications for | ||||||
6 | experts or expert consulting firms to develop the | ||||||
7 | procurement plans in accordance with Section 16-111.5 | ||||||
8 | of the Public Utilities Act. In order to qualify an | ||||||
9 | expert or expert consulting firm must have: | ||||||
10 | (A) direct previous experience assembling | ||||||
11 | large-scale power supply plans or portfolios for | ||||||
12 | end-use customers; | ||||||
13 | (B) an advanced degree in economics, | ||||||
14 | mathematics, engineering, risk management, or a | ||||||
15 | related area of study; | ||||||
16 | (C) 10 years of experience in the electricity | ||||||
17 | sector, including managing supply risk; | ||||||
18 | (D) expertise in wholesale electricity market | ||||||
19 | rules, including those established by the Federal | ||||||
20 | Energy Regulatory Commission and regional | ||||||
21 | transmission organizations; | ||||||
22 | (E) expertise in credit protocols and | ||||||
23 | familiarity with contract protocols; | ||||||
24 | (F) adequate resources to perform and fulfill | ||||||
25 | the required functions and responsibilities; and | ||||||
26 | (G) the absence of a conflict of interest and |
| |||||||
| |||||||
1 | inappropriate bias for or against potential | ||||||
2 | bidders or the affected electric utilities. | ||||||
3 | (2) The Agency shall each year, as needed, issue a | ||||||
4 | request for qualifications for a procurement | ||||||
5 | administrator to conduct the competitive procurement | ||||||
6 | processes in accordance with Section 16-111.5 of the | ||||||
7 | Public Utilities Act. In order to qualify an expert or | ||||||
8 | expert consulting firm must have: | ||||||
9 | (A) direct previous experience administering a | ||||||
10 | large-scale competitive procurement process; | ||||||
11 | (B) an advanced degree in economics, | ||||||
12 | mathematics, engineering, or a related area of | ||||||
13 | study; | ||||||
14 | (C) 10 years of experience in the electricity | ||||||
15 | sector, including risk management experience; | ||||||
16 | (D) expertise in wholesale electricity market | ||||||
17 | rules, including those established by the Federal | ||||||
18 | Energy Regulatory Commission and regional | ||||||
19 | transmission organizations; | ||||||
20 | (E) expertise in credit and contract | ||||||
21 | protocols; | ||||||
22 | (F) adequate resources to perform and fulfill | ||||||
23 | the required functions and responsibilities; and | ||||||
24 | (G) the absence of a conflict of interest and | ||||||
25 | inappropriate bias for or against potential | ||||||
26 | bidders or the affected electric utilities. |
| |||||||
| |||||||
1 | (3) The Agency shall provide affected utilities | ||||||
2 | and other interested parties with the lists of | ||||||
3 | qualified experts or expert consulting firms | ||||||
4 | identified through the request for qualifications | ||||||
5 | processes that are under consideration to develop the | ||||||
6 | procurement plans and to serve as the procurement | ||||||
7 | administrator. The Agency shall also provide each | ||||||
8 | qualified expert's or expert consulting firm's | ||||||
9 | response to the request for qualifications. All | ||||||
10 | information provided under this subparagraph shall | ||||||
11 | also be provided to the Commission. The Agency may | ||||||
12 | provide by rule for fees associated with supplying the | ||||||
13 | information to utilities and other interested parties. | ||||||
14 | These parties shall, within 5 business days, notify the | ||||||
15 | Agency in writing if they object to any experts or | ||||||
16 | expert consulting firms on the lists. Objections shall | ||||||
17 | be based on: | ||||||
18 | (A) failure to satisfy qualification criteria; | ||||||
19 | (B) identification of a conflict of interest; | ||||||
20 | or | ||||||
21 | (C) evidence of inappropriate bias for or | ||||||
22 | against potential bidders or the affected | ||||||
23 | utilities. | ||||||
24 | The Agency shall remove experts or expert | ||||||
25 | consulting firms from the lists within 10 days if there | ||||||
26 | is a reasonable basis for an objection and provide the |
| |||||||
| |||||||
1 | updated lists to the affected utilities and other | ||||||
2 | interested parties. If the Agency fails to remove an | ||||||
3 | expert or expert consulting firm from a list, an | ||||||
4 | objecting party may seek review by the Commission | ||||||
5 | within 5 days thereafter by filing a petition, and the | ||||||
6 | Commission shall render a ruling on the petition within | ||||||
7 | 10 days. There is no right of appeal of the | ||||||
8 | Commission's ruling. | ||||||
9 | (4) The Agency shall issue requests for proposals | ||||||
10 | to the qualified experts or expert consulting firms to | ||||||
11 | develop a procurement plan for the affected utilities | ||||||
12 | and to serve as procurement administrator. | ||||||
13 | (5) The Agency shall select an expert or expert | ||||||
14 | consulting firm to develop procurement plans based on | ||||||
15 | the proposals submitted and shall award one-year | ||||||
16 | contracts to those selected with an option for the | ||||||
17 | Agency for a one-year renewal. | ||||||
18 | (6) The Agency shall select an expert or expert | ||||||
19 | consulting firm, with approval of the Commission, to | ||||||
20 | serve as procurement administrator based on the | ||||||
21 | proposals submitted. If the Commission rejects, within | ||||||
22 | 5 days, the Agency's selection, the Agency shall submit | ||||||
23 | another recommendation within 3 days based on the | ||||||
24 | proposals submitted. The Agency shall award a one-year | ||||||
25 | contract to the expert or expert consulting firm so | ||||||
26 | selected with Commission approval with an option for |
| |||||||
| |||||||
1 | the Agency for a one-year renewal. | ||||||
2 | (b) The experts or expert consulting firms retained by | ||||||
3 | the Agency shall, as appropriate, prepare procurement | ||||||
4 | plans, and conduct a competitive procurement process as | ||||||
5 | prescribed in Section 16-111.5 of the Public Utilities Act, | ||||||
6 | to ensure adequate, reliable, affordable, efficient, and | ||||||
7 | environmentally sustainable electric service at the lowest | ||||||
8 | total cost over time, taking into account any benefits of | ||||||
9 | price stability, for eligible retail customers of electric | ||||||
10 | utilities that on December 31, 2005 provided electric | ||||||
11 | service to at least 100,000 customers in the State of | ||||||
12 | Illinois. | ||||||
13 | (c) Renewable portfolio standard. | ||||||
14 | (1) The procurement plans shall include | ||||||
15 | cost-effective renewable energy resources. A minimum | ||||||
16 | percentage of each utility's total supply to serve the | ||||||
17 | load of eligible retail customers, as defined in | ||||||
18 | Section 16-111.5(a) of the Public Utilities Act, | ||||||
19 | procured for each of the following years shall be | ||||||
20 | generated from cost-effective renewable energy | ||||||
21 | resources: at least 2% by June 1, 2008; at least 4% by | ||||||
22 | June 1, 2009; at least 5% by June 1, 2010; at least 6% | ||||||
23 | by June 1, 2011; at least 7% by June 1, 2012; at least | ||||||
24 | 8% by June 1, 2013; at least 9% by June 1, 2014; at | ||||||
25 | least 10% by June 1, 2015; and increasing by at least | ||||||
26 | 1.5% each year thereafter to at least 25% by June 1, |
| |||||||
| |||||||
1 | 2025. To the extent that it is available, at least 75% | ||||||
2 | of the renewable energy resources used to meet these | ||||||
3 | standards shall come from wind generation and, | ||||||
4 | beginning on June 1, 2015, at least 6% of the renewable | ||||||
5 | energy resources used to meet these standards shall | ||||||
6 | come from photovoltaics . For purposes of this | ||||||
7 | subsection (c), "cost-effective" means that the costs | ||||||
8 | of procuring renewable energy resources do not cause | ||||||
9 | the limit stated in paragraph (2) of this subsection | ||||||
10 | (c) to be exceeded and do not exceed benchmarks based | ||||||
11 | on market prices for renewable energy resources in the | ||||||
12 | region, which shall be developed by the procurement | ||||||
13 | administrator, in consultation with the Commission | ||||||
14 | staff, Agency staff, and the procurement monitor and | ||||||
15 | shall be subject to Commission review and approval. | ||||||
16 | (2) For purposes of this subsection (c), the | ||||||
17 | required procurement of cost-effective renewable | ||||||
18 | energy resources for a particular year shall be | ||||||
19 | measured as a percentage of the actual amount of | ||||||
20 | electricity (megawatt-hours) supplied by the electric | ||||||
21 | utility to eligible retail customers in the planning | ||||||
22 | year ending immediately prior to the procurement. For | ||||||
23 | purposes of this subsection (c), the amount paid per | ||||||
24 | kilowatthour means the total amount paid for electric | ||||||
25 | service expressed on a per kilowatthour basis. For | ||||||
26 | purposes of this subsection (c), the total amount paid |
| |||||||
| |||||||
1 | for electric service includes without limitation | ||||||
2 | amounts paid for supply, transmission, distribution, | ||||||
3 | surcharges, and add-on taxes. | ||||||
4 | Notwithstanding the requirements of this | ||||||
5 | subsection (c), the total of renewable energy | ||||||
6 | resources procured pursuant to the procurement plan | ||||||
7 | for any single year shall be reduced by an amount | ||||||
8 | necessary to limit the annual estimated average net | ||||||
9 | increase due to the costs of these resources included | ||||||
10 | in the amounts paid by eligible retail customers in | ||||||
11 | connection with electric service to: | ||||||
12 | (A) in 2008, no more than 0.5% of the amount | ||||||
13 | paid per kilowatthour by those customers during | ||||||
14 | the year ending May 31, 2007; | ||||||
15 | (B) in 2009, the greater of an additional 0.5% | ||||||
16 | of the amount paid per kilowatthour by those | ||||||
17 | customers during the year ending May 31, 2008 or 1% | ||||||
18 | of the amount paid per kilowatthour by those | ||||||
19 | customers during the year ending May 31, 2007; | ||||||
20 | (C) in 2010, the greater of an additional 0.5% | ||||||
21 | of the amount paid per kilowatthour by those | ||||||
22 | customers during the year ending May 31, 2009 or | ||||||
23 | 1.5% of the amount paid per kilowatthour by those | ||||||
24 | customers during the year ending May 31, 2007; | ||||||
25 | (D) in 2011, the greater of an additional 0.5% | ||||||
26 | of the amount paid per kilowatthour by those |
| |||||||
| |||||||
1 | customers during the year ending May 31, 2010 or 2% | ||||||
2 | of the amount paid per kilowatthour by those | ||||||
3 | customers during the year ending May 31, 2007; and | ||||||
4 | (E) thereafter, the amount of renewable energy | ||||||
5 | resources procured pursuant to the procurement | ||||||
6 | plan for any single year shall be reduced by an | ||||||
7 | amount necessary to limit the estimated average | ||||||
8 | net increase due to the cost of these resources | ||||||
9 | included in the amounts paid by eligible retail | ||||||
10 | customers in connection with electric service to | ||||||
11 | no more than the greater of 2.015% of the amount | ||||||
12 | paid per kilowatthour by those customers during | ||||||
13 | the year ending May 31, 2007 or the incremental | ||||||
14 | amount per kilowatthour paid for these resources | ||||||
15 | in 2011. | ||||||
16 | No later than June 30, 2011, the Commission shall | ||||||
17 | review the limitation on the amount of renewable energy | ||||||
18 | resources procured pursuant to this subsection (c) and | ||||||
19 | report to the General Assembly its findings as to | ||||||
20 | whether that limitation unduly constrains the | ||||||
21 | procurement of cost-effective renewable energy | ||||||
22 | resources. | ||||||
23 | (3) Through June 1, 2011, renewable energy | ||||||
24 | resources shall be counted for the purpose of meeting | ||||||
25 | the renewable energy standards set forth in paragraph | ||||||
26 | (1) of this subsection (c) only if they are generated |
| |||||||
| |||||||
1 | from facilities located in the State, provided that | ||||||
2 | cost-effective renewable energy resources are | ||||||
3 | available from those facilities. If those | ||||||
4 | cost-effective resources are not available in | ||||||
5 | Illinois, they shall be procured in states that adjoin | ||||||
6 | Illinois and may be counted towards compliance. If | ||||||
7 | those cost-effective resources are not available in | ||||||
8 | Illinois or in states that adjoin Illinois, they shall | ||||||
9 | be purchased elsewhere and shall be counted towards | ||||||
10 | compliance. After June 1, 2011, cost-effective | ||||||
11 | renewable energy resources located in Illinois and in | ||||||
12 | states that adjoin Illinois may be counted towards | ||||||
13 | compliance with the standards set forth in paragraph | ||||||
14 | (1) of this subsection (c). If those cost-effective | ||||||
15 | resources are not available in Illinois or in states | ||||||
16 | that adjoin Illinois, they shall be purchased | ||||||
17 | elsewhere and shall be counted towards compliance. | ||||||
18 | (4) The electric utility shall retire all | ||||||
19 | renewable energy credits used to comply with the | ||||||
20 | standard. | ||||||
21 | (5) Beginning with the year commencing June 1, | ||||||
22 | 2010, an electric utility subject to this subsection | ||||||
23 | (c) shall apply the lesser of the maximum alternative | ||||||
24 | compliance payment rate or the most recent estimated | ||||||
25 | alternative compliance payment rate for its service | ||||||
26 | territory for the corresponding compliance period, |
| |||||||
| |||||||
1 | established pursuant to subsection (d) of Section | ||||||
2 | 16-115D of the Public Utilities Act to its retail | ||||||
3 | customers that take service pursuant to the electric | ||||||
4 | utility's hourly pricing tariff or tariffs. The | ||||||
5 | electric utility shall retain all amounts collected as | ||||||
6 | a result of the application of the alternative | ||||||
7 | compliance payment rate or rates to such customers, | ||||||
8 | and, beginning in 2011, the utility shall include in | ||||||
9 | the information provided under item (1) of subsection | ||||||
10 | (d) of Section 16-111.5 of the Public Utilities Act the | ||||||
11 | amounts collected under the alternative compliance | ||||||
12 | payment rate or rates for the prior year ending May 31. | ||||||
13 | Notwithstanding any limitation on the procurement of | ||||||
14 | renewable energy resources imposed by item (2) of this | ||||||
15 | subsection (c), the Agency shall increase its spending | ||||||
16 | on the purchase of renewable energy resources to be | ||||||
17 | procured by the electric utility for the next plan year | ||||||
18 | by an amount equal to the amounts collected by the | ||||||
19 | utility under the alternative compliance payment rate | ||||||
20 | or rates in the prior year ending May 31. | ||||||
21 | (d) Clean coal portfolio standard. | ||||||
22 | (1) The procurement plans shall include electricity | ||||||
23 | generated using clean coal. Each utility shall enter into | ||||||
24 | one or more sourcing agreements with the initial clean coal | ||||||
25 | facility, as provided in paragraph (3) of this subsection | ||||||
26 | (d), covering electricity generated by the initial clean |
| |||||||
| |||||||
1 | coal facility representing at least 5% of each utility's | ||||||
2 | total supply to serve the load of eligible retail customers | ||||||
3 | in 2015 and each year thereafter, as described in paragraph | ||||||
4 | (3) of this subsection (d), subject to the limits specified | ||||||
5 | in paragraph (2) of this subsection (d). It is the goal of | ||||||
6 | the State that by January 1, 2025, 25% of the electricity | ||||||
7 | used in the State shall be generated by cost-effective | ||||||
8 | clean coal facilities. For purposes of this subsection (d), | ||||||
9 | "cost-effective" means that the expenditures pursuant to | ||||||
10 | such sourcing agreements do not cause the limit stated in | ||||||
11 | paragraph (2) of this subsection (d) to be exceeded and do | ||||||
12 | not exceed cost-based benchmarks, which shall be developed | ||||||
13 | to assess all expenditures pursuant to such sourcing | ||||||
14 | agreements covering electricity generated by clean coal | ||||||
15 | facilities, other than the initial clean coal facility, by | ||||||
16 | the procurement administrator, in consultation with the | ||||||
17 | Commission staff, Agency staff, and the procurement | ||||||
18 | monitor and shall be subject to Commission review and | ||||||
19 | approval. | ||||||
20 | (A) A utility party to a sourcing agreement shall | ||||||
21 | immediately retire any emission credits that it | ||||||
22 | receives in connection with the electricity covered by | ||||||
23 | such agreement. | ||||||
24 | (B) Utilities shall maintain adequate records | ||||||
25 | documenting the purchases under the sourcing agreement | ||||||
26 | to comply with this subsection (d) and shall file an |
| |||||||
| |||||||
1 | accounting with the load forecast that must be filed | ||||||
2 | with the Agency by July 15 of each year, in accordance | ||||||
3 | with subsection (d) of Section 16-111.5 of the Public | ||||||
4 | Utilities Act. | ||||||
5 | (C) A utility shall be deemed to have complied with | ||||||
6 | the clean coal portfolio standard specified in this | ||||||
7 | subsection (d) if the utility enters into a sourcing | ||||||
8 | agreement as required by this subsection (d). | ||||||
9 | (2) For purposes of this subsection (d), the required | ||||||
10 | execution of sourcing agreements with the initial clean | ||||||
11 | coal facility for a particular year shall be measured as a | ||||||
12 | percentage of the actual amount of electricity | ||||||
13 | (megawatt-hours) supplied by the electric utility to | ||||||
14 | eligible retail customers in the planning year ending | ||||||
15 | immediately prior to the agreement's execution. For | ||||||
16 | purposes of this subsection (d), the amount paid per | ||||||
17 | kilowatthour means the total amount paid for electric | ||||||
18 | service expressed on a per kilowatthour basis. For purposes | ||||||
19 | of this subsection (d), the total amount paid for electric | ||||||
20 | service includes without limitation amounts paid for | ||||||
21 | supply, transmission, distribution, surcharges and add-on | ||||||
22 | taxes. | ||||||
23 | Notwithstanding the requirements of this subsection | ||||||
24 | (d), the total amount paid under sourcing agreements with | ||||||
25 | clean coal facilities pursuant to the procurement plan for | ||||||
26 | any given year shall be reduced by an amount necessary to |
| |||||||
| |||||||
1 | limit the annual estimated average net increase due to the | ||||||
2 | costs of these resources included in the amounts paid by | ||||||
3 | eligible retail customers in connection with electric | ||||||
4 | service to: | ||||||
5 | (A) in 2010, no more than 0.5% of the amount | ||||||
6 | paid per kilowatthour by those customers during | ||||||
7 | the year ending May 31, 2009; | ||||||
8 | (B) in 2011, the greater of an additional 0.5% | ||||||
9 | of the amount paid per kilowatthour by those | ||||||
10 | customers during the year ending May 31, 2010 or 1% | ||||||
11 | of the amount paid per kilowatthour by those | ||||||
12 | customers during the year ending May 31, 2009; | ||||||
13 | (C) in 2012, the greater of an additional 0.5% | ||||||
14 | of the amount paid per kilowatthour by those | ||||||
15 | customers during the year ending May 31, 2011 or | ||||||
16 | 1.5% of the amount paid per kilowatthour by those | ||||||
17 | customers during the year ending May 31, 2009; | ||||||
18 | (D) in 2013, the greater of an additional 0.5% | ||||||
19 | of the amount paid per kilowatthour by those | ||||||
20 | customers during the year ending May 31, 2012 or 2% | ||||||
21 | of the amount paid per kilowatthour by those | ||||||
22 | customers during the year ending May 31, 2009; and | ||||||
23 | (E) thereafter, the total amount paid under | ||||||
24 | sourcing agreements with clean coal facilities | ||||||
25 | pursuant to the procurement plan for any single | ||||||
26 | year shall be reduced by an amount necessary to |
| |||||||
| |||||||
1 | limit the estimated average net increase due to the | ||||||
2 | cost of these resources included in the amounts | ||||||
3 | paid by eligible retail customers in connection | ||||||
4 | with electric service to no more than the greater | ||||||
5 | of (i) 2.015% of the amount paid per kilowatthour | ||||||
6 | by those customers during the year ending May 31, | ||||||
7 | 2009 or (ii) the incremental amount per | ||||||
8 | kilowatthour paid for these resources in 2013. | ||||||
9 | These requirements may be altered only as provided | ||||||
10 | by statute.
No later than June 30, 2015, the | ||||||
11 | Commission shall review the limitation on the | ||||||
12 | total amount paid under sourcing agreements, if | ||||||
13 | any, with clean coal facilities pursuant to this | ||||||
14 | subsection (d) and report to the General Assembly | ||||||
15 | its findings as to whether that limitation unduly | ||||||
16 | constrains the amount of electricity generated by | ||||||
17 | cost-effective clean coal facilities that is | ||||||
18 | covered by sourcing agreements. | ||||||
19 | (3) Initial clean coal facility. In order to promote | ||||||
20 | development of clean coal facilities in Illinois, each | ||||||
21 | electric utility subject to this Section shall execute a | ||||||
22 | sourcing agreement to source electricity from a proposed | ||||||
23 | clean coal facility in Illinois (the "initial clean coal | ||||||
24 | facility") that will have a nameplate capacity of at least | ||||||
25 | 500 MW when commercial operation commences, that has a | ||||||
26 | final Clean Air Act permit on the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 95th General Assembly, and that will | ||||||
2 | meet the definition of clean coal facility in Section 1-10 | ||||||
3 | of this Act when commercial operation commences. The | ||||||
4 | sourcing agreements with this initial clean coal facility | ||||||
5 | shall be subject to both approval of the initial clean coal | ||||||
6 | facility by the General Assembly and satisfaction of the | ||||||
7 | requirements of paragraph (4) of this subsection (d) and | ||||||
8 | shall be executed within 90 days after any such approval by | ||||||
9 | the General Assembly. The Agency and the Commission shall | ||||||
10 | have authority to inspect all books and records associated | ||||||
11 | with the initial clean coal facility during the term of | ||||||
12 | such a sourcing agreement. A utility's sourcing agreement | ||||||
13 | for electricity produced by the initial clean coal facility | ||||||
14 | shall include: | ||||||
15 | (A) a formula contractual price (the "contract | ||||||
16 | price") approved pursuant to paragraph (4) of this | ||||||
17 | subsection (d), which shall: | ||||||
18 | (i) be determined using a cost of service | ||||||
19 | methodology employing either a level or deferred | ||||||
20 | capital recovery component, based on a capital | ||||||
21 | structure consisting of 45% equity and 55% debt, | ||||||
22 | and a return on equity as may be approved by the | ||||||
23 | Federal Energy Regulatory Commission, which in any | ||||||
24 | case may not exceed the lower of 11.5% or the rate | ||||||
25 | of return approved by the General Assembly | ||||||
26 | pursuant to paragraph (4) of this subsection (d); |
| |||||||
| |||||||
1 | and | ||||||
2 | (ii) provide that all miscellaneous net | ||||||
3 | revenue, including but not limited to net revenue | ||||||
4 | from the sale of emission allowances, if any, | ||||||
5 | substitute natural gas, if any, grants or other | ||||||
6 | support provided by the State of Illinois or the | ||||||
7 | United States Government, firm transmission | ||||||
8 | rights, if any, by-products produced by the | ||||||
9 | facility, energy or capacity derived from the | ||||||
10 | facility and not covered by a sourcing agreement | ||||||
11 | pursuant to paragraph (3) of this subsection (d) or | ||||||
12 | item (5) of subsection (d) of Section 16-115 of the | ||||||
13 | Public Utilities Act, whether generated from the | ||||||
14 | synthesis gas derived from coal, from SNG, or from | ||||||
15 | natural gas, shall be credited against the revenue | ||||||
16 | requirement for this initial clean coal facility; | ||||||
17 | (B) power purchase provisions, which shall: | ||||||
18 | (i) provide that the utility party to such | ||||||
19 | sourcing agreement shall pay the contract price | ||||||
20 | for electricity delivered under such sourcing | ||||||
21 | agreement; | ||||||
22 | (ii) require delivery of electricity to the | ||||||
23 | regional transmission organization market of the | ||||||
24 | utility that is party to such sourcing agreement; | ||||||
25 | (iii) require the utility party to such | ||||||
26 | sourcing agreement to buy from the initial clean |
| |||||||
| |||||||
1 | coal facility in each hour an amount of energy | ||||||
2 | equal to all clean coal energy made available from | ||||||
3 | the initial clean coal facility during such hour | ||||||
4 | times a fraction, the numerator of which is such | ||||||
5 | utility's retail market sales of electricity | ||||||
6 | (expressed in kilowatthours sold) in the State | ||||||
7 | during the prior calendar month and the | ||||||
8 | denominator of which is the total retail market | ||||||
9 | sales of electricity (expressed in kilowatthours | ||||||
10 | sold) in the State by utilities during such prior | ||||||
11 | month and the sales of electricity (expressed in | ||||||
12 | kilowatthours sold) in the State by alternative | ||||||
13 | retail electric suppliers during such prior month | ||||||
14 | that are subject to the requirements of this | ||||||
15 | subsection (d) and paragraph (5) of subsection (d) | ||||||
16 | of Section 16-115 of the Public Utilities Act, | ||||||
17 | provided that the amount purchased by the utility | ||||||
18 | in any year will be limited by paragraph (2) of | ||||||
19 | this subsection (d); and | ||||||
20 | (iv) be considered pre-existing contracts in | ||||||
21 | such utility's procurement plans for eligible | ||||||
22 | retail customers; | ||||||
23 | (C) contract for differences provisions, which | ||||||
24 | shall: | ||||||
25 | (i) require the utility party to such sourcing | ||||||
26 | agreement to contract with the initial clean coal |
| |||||||
| |||||||
1 | facility in each hour with respect to an amount of | ||||||
2 | energy equal to all clean coal energy made | ||||||
3 | available from the initial clean coal facility | ||||||
4 | during such hour times a fraction, the numerator of | ||||||
5 | which is such utility's retail market sales of | ||||||
6 | electricity (expressed in kilowatthours sold) in | ||||||
7 | the utility's service territory in the State | ||||||
8 | during the prior calendar month and the | ||||||
9 | denominator of which is the total retail market | ||||||
10 | sales of electricity (expressed in kilowatthours | ||||||
11 | sold) in the State by utilities during such prior | ||||||
12 | month and the sales of electricity (expressed in | ||||||
13 | kilowatthours sold) in the State by alternative | ||||||
14 | retail electric suppliers during such prior month | ||||||
15 | that are subject to the requirements of this | ||||||
16 | subsection (d) and paragraph (5) of subsection (d) | ||||||
17 | of Section 16-115 of the Public Utilities Act, | ||||||
18 | provided that the amount paid by the utility in any | ||||||
19 | year will be limited by paragraph (2) of this | ||||||
20 | subsection (d); | ||||||
21 | (ii) provide that the utility's payment | ||||||
22 | obligation in respect of the quantity of | ||||||
23 | electricity determined pursuant to the preceding | ||||||
24 | clause (i) shall be limited to an amount equal to | ||||||
25 | (1) the difference between the contract price | ||||||
26 | determined pursuant to subparagraph (A) of |
| |||||||
| |||||||
1 | paragraph (3) of this subsection (d) and the | ||||||
2 | day-ahead price for electricity delivered to the | ||||||
3 | regional transmission organization market of the | ||||||
4 | utility that is party to such sourcing agreement | ||||||
5 | (or any successor delivery point at which such | ||||||
6 | utility's supply obligations are financially | ||||||
7 | settled on an hourly basis) (the "reference | ||||||
8 | price") on the day preceding the day on which the | ||||||
9 | electricity is delivered to the initial clean coal | ||||||
10 | facility busbar, multiplied by (2) the quantity of | ||||||
11 | electricity determined pursuant to the preceding | ||||||
12 | clause (i); and | ||||||
13 | (iii) not require the utility to take physical | ||||||
14 | delivery of the electricity produced by the | ||||||
15 | facility; | ||||||
16 | (D) general provisions, which shall: | ||||||
17 | (i) specify a term of no more than 30 years, | ||||||
18 | commencing on the commercial operation date of the | ||||||
19 | facility; | ||||||
20 | (ii) provide that utilities shall maintain | ||||||
21 | adequate records documenting purchases under the | ||||||
22 | sourcing agreements entered into to comply with | ||||||
23 | this subsection (d) and shall file an accounting | ||||||
24 | with the load forecast that must be filed with the | ||||||
25 | Agency by July 15 of each year, in accordance with | ||||||
26 | subsection (d) of Section 16-111.5 of the Public |
| |||||||
| |||||||
1 | Utilities Act. | ||||||
2 | (iii) provide that all costs associated with | ||||||
3 | the initial clean coal facility will be | ||||||
4 | periodically reported to the Federal Energy | ||||||
5 | Regulatory Commission and to purchasers in | ||||||
6 | accordance with applicable laws governing | ||||||
7 | cost-based wholesale power contracts; | ||||||
8 | (iv) permit the Illinois Power Agency to | ||||||
9 | assume ownership of the initial clean coal | ||||||
10 | facility, without monetary consideration and | ||||||
11 | otherwise on reasonable terms acceptable to the | ||||||
12 | Agency, if the Agency so requests no less than 3 | ||||||
13 | years prior to the end of the stated contract term; | ||||||
14 | (v) require the owner of the initial clean coal | ||||||
15 | facility to provide documentation to the | ||||||
16 | Commission each year, starting in the facility's | ||||||
17 | first year of commercial operation, accurately | ||||||
18 | reporting the quantity of carbon emissions from | ||||||
19 | the facility that have been captured and | ||||||
20 | sequestered and report any quantities of carbon | ||||||
21 | released from the site or sites at which carbon | ||||||
22 | emissions were sequestered in prior years, based | ||||||
23 | on continuous monitoring of such sites. If, in any | ||||||
24 | year after the first year of commercial operation, | ||||||
25 | the owner of the facility fails to demonstrate that | ||||||
26 | the initial clean coal facility captured and |
| |||||||
| |||||||
1 | sequestered at least 50% of the total carbon | ||||||
2 | emissions that the facility would otherwise emit | ||||||
3 | or that sequestration of emissions from prior | ||||||
4 | years has failed, resulting in the release of | ||||||
5 | carbon dioxide into the atmosphere, the owner of | ||||||
6 | the facility must offset excess emissions. Any | ||||||
7 | such carbon offsets must be permanent, additional, | ||||||
8 | verifiable, real, located within the State of | ||||||
9 | Illinois, and legally and practicably enforceable. | ||||||
10 | The cost of such offsets for the facility that are | ||||||
11 | not recoverable shall not exceed $15 million in any | ||||||
12 | given year. No costs of any such purchases of | ||||||
13 | carbon offsets may be recovered from a utility or | ||||||
14 | its customers. All carbon offsets purchased for | ||||||
15 | this purpose and any carbon emission credits | ||||||
16 | associated with sequestration of carbon from the | ||||||
17 | facility must be permanently retired. The initial | ||||||
18 | clean coal facility shall not forfeit its | ||||||
19 | designation as a clean coal facility if the | ||||||
20 | facility fails to fully comply with the applicable | ||||||
21 | carbon sequestration requirements in any given | ||||||
22 | year, provided the requisite offsets are | ||||||
23 | purchased. However, the Attorney General, on | ||||||
24 | behalf of the People of the State of Illinois, may | ||||||
25 | specifically enforce the facility's sequestration | ||||||
26 | requirement and the other terms of this contract |
| |||||||
| |||||||
1 | provision. Compliance with the sequestration | ||||||
2 | requirements and offset purchase requirements | ||||||
3 | specified in paragraph (3) of this subsection (d) | ||||||
4 | shall be reviewed annually by an independent | ||||||
5 | expert retained by the owner of the initial clean | ||||||
6 | coal facility, with the advance written approval | ||||||
7 | of the Attorney General. The Commission may, in the | ||||||
8 | course of the review specified in item (vii), | ||||||
9 | reduce the allowable return on equity for the | ||||||
10 | facility if the facility wilfully fails to comply | ||||||
11 | with the carbon capture and sequestration | ||||||
12 | requirements set forth in this item (v); | ||||||
13 | (vi) include limits on, and accordingly | ||||||
14 | provide for modification of, the amount the | ||||||
15 | utility is required to source under the sourcing | ||||||
16 | agreement consistent with paragraph (2) of this | ||||||
17 | subsection (d); | ||||||
18 | (vii) require Commission review: (1) to | ||||||
19 | determine the justness, reasonableness, and | ||||||
20 | prudence of the inputs to the formula referenced in | ||||||
21 | subparagraphs (A)(i) through (A)(iii) of paragraph | ||||||
22 | (3) of this subsection (d), prior to an adjustment | ||||||
23 | in those inputs including, without limitation, the | ||||||
24 | capital structure and return on equity, fuel | ||||||
25 | costs, and other operations and maintenance costs | ||||||
26 | and (2) to approve the costs to be passed through |
| |||||||
| |||||||
1 | to customers under the sourcing agreement by which | ||||||
2 | the utility satisfies its statutory obligations. | ||||||
3 | Commission review shall occur no less than every 3 | ||||||
4 | years, regardless of whether any adjustments have | ||||||
5 | been proposed, and shall be completed within 9 | ||||||
6 | months; | ||||||
7 | (viii) limit the utility's obligation to such | ||||||
8 | amount as the utility is allowed to recover through | ||||||
9 | tariffs filed with the Commission, provided that | ||||||
10 | neither the clean coal facility nor the utility | ||||||
11 | waives any right to assert federal pre-emption or | ||||||
12 | any other argument in response to a purported | ||||||
13 | disallowance of recovery costs; | ||||||
14 | (ix) limit the utility's or alternative retail | ||||||
15 | electric supplier's obligation to incur any | ||||||
16 | liability until such time as the facility is in | ||||||
17 | commercial operation and generating power and | ||||||
18 | energy and such power and energy is being delivered | ||||||
19 | to the facility busbar; | ||||||
20 | (x) provide that the owner or owners of the | ||||||
21 | initial clean coal facility, which is the | ||||||
22 | counterparty to such sourcing agreement, shall | ||||||
23 | have the right from time to time to elect whether | ||||||
24 | the obligations of the utility party thereto shall | ||||||
25 | be governed by the power purchase provisions or the | ||||||
26 | contract for differences provisions; |
| |||||||
| |||||||
1 | (xi) append documentation showing that the | ||||||
2 | formula rate and contract, insofar as they relate | ||||||
3 | to the power purchase provisions, have been | ||||||
4 | approved by the Federal Energy Regulatory | ||||||
5 | Commission pursuant to Section 205 of the Federal | ||||||
6 | Power Act; | ||||||
7 | (xii) provide that any changes to the terms of | ||||||
8 | the contract, insofar as such changes relate to the | ||||||
9 | power purchase provisions, are subject to review | ||||||
10 | under the public interest standard applied by the | ||||||
11 | Federal Energy Regulatory Commission pursuant to | ||||||
12 | Sections 205 and 206 of the Federal Power Act; and | ||||||
13 | (xiii) conform with customary lender | ||||||
14 | requirements in power purchase agreements used as | ||||||
15 | the basis for financing non-utility generators. | ||||||
16 | (4) Effective date of sourcing agreements with the | ||||||
17 | initial clean coal facility. Any proposed sourcing | ||||||
18 | agreement with the initial clean coal facility shall not | ||||||
19 | become effective unless the following reports are prepared | ||||||
20 | and submitted and authorizations and approvals obtained: | ||||||
21 | (i) Facility cost report. The owner of the | ||||||
22 | initial clean coal facility shall submit to the | ||||||
23 | Commission, the Agency, and the General Assembly a | ||||||
24 | front-end engineering and design study, a facility | ||||||
25 | cost report, method of financing (including but | ||||||
26 | not limited to structure and associated costs), |
| |||||||
| |||||||
1 | and an operating and maintenance cost quote for the | ||||||
2 | facility (collectively "facility cost report"), | ||||||
3 | which shall be prepared in accordance with the | ||||||
4 | requirements of this paragraph (4) of subsection | ||||||
5 | (d) of this Section, and shall provide the | ||||||
6 | Commission and the Agency access to the work | ||||||
7 | papers, relied upon documents, and any other | ||||||
8 | backup documentation related to the facility cost | ||||||
9 | report. | ||||||
10 | (ii) Commission report. Within 6 months | ||||||
11 | following receipt of the facility cost report, the | ||||||
12 | Commission, in consultation with the Agency, shall | ||||||
13 | submit a report to the General Assembly setting | ||||||
14 | forth its analysis of the facility cost report. | ||||||
15 | Such report shall include, but not be limited to, a | ||||||
16 | comparison of the costs associated with | ||||||
17 | electricity generated by the initial clean coal | ||||||
18 | facility to the costs associated with electricity | ||||||
19 | generated by other types of generation facilities, | ||||||
20 | an analysis of the rate impacts on residential and | ||||||
21 | small business customers over the life of the | ||||||
22 | sourcing agreements, and an analysis of the | ||||||
23 | likelihood that the initial clean coal facility | ||||||
24 | will commence commercial operation by and be | ||||||
25 | delivering power to the facility's busbar by 2016. | ||||||
26 | To assist in the preparation of its report, the |
| |||||||
| |||||||
1 | Commission, in consultation with the Agency, may | ||||||
2 | hire one or more experts or consultants, the costs | ||||||
3 | of which shall be paid for by the owner of the | ||||||
4 | initial clean coal facility. The Commission and | ||||||
5 | Agency may begin the process of selecting such | ||||||
6 | experts or consultants prior to receipt of the | ||||||
7 | facility cost report. | ||||||
8 | (iii) General Assembly approval. The proposed | ||||||
9 | sourcing agreements shall not take effect unless, | ||||||
10 | based on the facility cost report and the | ||||||
11 | Commission's report, the General Assembly enacts | ||||||
12 | authorizing legislation approving (A) the | ||||||
13 | projected price, stated in cents per kilowatthour, | ||||||
14 | to be charged for electricity generated by the | ||||||
15 | initial clean coal facility, (B) the projected | ||||||
16 | impact on residential and small business | ||||||
17 | customers' bills over the life of the sourcing | ||||||
18 | agreements, and (C) the maximum allowable return | ||||||
19 | on equity for the project; and | ||||||
20 | (iv) Commission review. If the General | ||||||
21 | Assembly enacts authorizing legislation pursuant | ||||||
22 | to subparagraph (iii) approving a sourcing | ||||||
23 | agreement, the Commission shall, within 90 days of | ||||||
24 | such enactment, complete a review of such sourcing | ||||||
25 | agreement. During such time period, the Commission | ||||||
26 | shall implement any directive of the General |
| |||||||
| |||||||
1 | Assembly, resolve any disputes between the parties | ||||||
2 | to the sourcing agreement concerning the terms of | ||||||
3 | such agreement, approve the form of such | ||||||
4 | agreement, and issue an order finding that the | ||||||
5 | sourcing agreement is prudent and reasonable. | ||||||
6 | The facility cost report shall be prepared as follows: | ||||||
7 | (A) The facility cost report shall be prepared by | ||||||
8 | duly licensed engineering and construction firms | ||||||
9 | detailing the estimated capital costs payable to one or | ||||||
10 | more contractors or suppliers for the engineering, | ||||||
11 | procurement and construction of the components | ||||||
12 | comprising the initial clean coal facility and the | ||||||
13 | estimated costs of operation and maintenance of the | ||||||
14 | facility. The facility cost report shall include: | ||||||
15 | (i) an estimate of the capital cost of the core | ||||||
16 | plant based on one or more front end engineering | ||||||
17 | and design studies for the gasification island and | ||||||
18 | related facilities. The core plant shall include | ||||||
19 | all civil, structural, mechanical, electrical, | ||||||
20 | control, and safety systems. | ||||||
21 | (ii) an estimate of the capital cost of the | ||||||
22 | balance of the plant, including any capital costs | ||||||
23 | associated with sequestration of carbon dioxide | ||||||
24 | emissions and all interconnects and interfaces | ||||||
25 | required to operate the facility, such as | ||||||
26 | transmission of electricity, construction or |
| |||||||
| |||||||
1 | backfeed power supply, pipelines to transport | ||||||
2 | substitute natural gas or carbon dioxide, potable | ||||||
3 | water supply, natural gas supply, water supply, | ||||||
4 | water discharge, landfill, access roads, and coal | ||||||
5 | delivery. | ||||||
6 | The quoted construction costs shall be expressed | ||||||
7 | in nominal dollars as of the date that the quote is | ||||||
8 | prepared and shall include (1) capitalized financing | ||||||
9 | costs during construction,
(2) taxes, insurance, and | ||||||
10 | other owner's costs, and (3) an assumed escalation in | ||||||
11 | materials and labor beyond the date as of which the | ||||||
12 | construction cost quote is expressed. | ||||||
13 | (B) The front end engineering and design study for | ||||||
14 | the gasification island and the cost study for the | ||||||
15 | balance of plant shall include sufficient design work | ||||||
16 | to permit quantification of major categories of | ||||||
17 | materials, commodities and labor hours, and receipt of | ||||||
18 | quotes from vendors of major equipment required to | ||||||
19 | construct and operate the clean coal facility. | ||||||
20 | (C) The facility cost report shall also include an | ||||||
21 | operating and maintenance cost quote that will provide | ||||||
22 | the estimated cost of delivered fuel, personnel, | ||||||
23 | maintenance contracts, chemicals, catalysts, | ||||||
24 | consumables, spares, and other fixed and variable | ||||||
25 | operations and maintenance costs. | ||||||
26 | (a) The delivered fuel cost estimate will be |
| |||||||
| |||||||
1 | provided by a recognized third party expert or | ||||||
2 | experts in the fuel and transportation industries. | ||||||
3 | (b) The balance of the operating and | ||||||
4 | maintenance cost quote, excluding delivered fuel | ||||||
5 | costs will be developed based on the inputs | ||||||
6 | provided by duly licensed engineering and | ||||||
7 | construction firms performing the construction | ||||||
8 | cost quote, potential vendors under long-term | ||||||
9 | service agreements and plant operating agreements, | ||||||
10 | or recognized third party plant operator or | ||||||
11 | operators. | ||||||
12 | The operating and maintenance cost quote | ||||||
13 | (including the cost of the front end engineering | ||||||
14 | and design study) shall be expressed in nominal | ||||||
15 | dollars as of the date that the quote is prepared | ||||||
16 | and shall include (1) taxes, insurance, and other | ||||||
17 | owner's costs, and (2) an assumed escalation in | ||||||
18 | materials and labor beyond the date as of which the | ||||||
19 | operating and maintenance cost quote is expressed. | ||||||
20 | (D) The facility cost report shall also include (i) | ||||||
21 | an analysis of the initial clean coal facility's | ||||||
22 | ability to deliver power and energy into the applicable | ||||||
23 | regional transmission organization markets and (ii) an | ||||||
24 | analysis of the expected capacity factor for the | ||||||
25 | initial clean coal facility. | ||||||
26 | (E) Amounts paid to third parties unrelated to the |
| |||||||
| |||||||
1 | owner or owners of the initial clean coal facility to | ||||||
2 | prepare the core plant construction cost quote, | ||||||
3 | including the front end engineering and design study, | ||||||
4 | and the operating and maintenance cost quote will be | ||||||
5 | reimbursed through Coal Development Bonds. | ||||||
6 | (5) Re-powering and retrofitting coal-fired power | ||||||
7 | plants previously owned by Illinois utilities to qualify as | ||||||
8 | clean coal facilities. During the 2009 procurement | ||||||
9 | planning process and thereafter, the Agency and the | ||||||
10 | Commission shall consider sourcing agreements covering | ||||||
11 | electricity generated by power plants that were previously | ||||||
12 | owned by Illinois utilities and that have been or will be | ||||||
13 | converted into clean coal facilities, as defined by Section | ||||||
14 | 1-10 of this Act. Pursuant to such procurement planning | ||||||
15 | process, the owners of such facilities may propose to the | ||||||
16 | Agency sourcing agreements with utilities and alternative | ||||||
17 | retail electric suppliers required to comply with | ||||||
18 | subsection (d) of this Section and item (5) of subsection | ||||||
19 | (d) of Section 16-115 of the Public Utilities Act, covering | ||||||
20 | electricity generated by such facilities. In the case of | ||||||
21 | sourcing agreements that are power purchase agreements, | ||||||
22 | the contract price for electricity sales shall be | ||||||
23 | established on a cost of service basis. In the case of | ||||||
24 | sourcing agreements that are contracts for differences, | ||||||
25 | the contract price from which the reference price is | ||||||
26 | subtracted shall be established on a cost of service basis. |
| |||||||
| |||||||
1 | The Agency and the Commission may approve any such utility | ||||||
2 | sourcing agreements that do not exceed cost-based | ||||||
3 | benchmarks developed by the procurement administrator, in | ||||||
4 | consultation with the Commission staff, Agency staff and | ||||||
5 | the procurement monitor, subject to Commission review and | ||||||
6 | approval. The Commission shall have authority to inspect | ||||||
7 | all books and records associated with these clean coal | ||||||
8 | facilities during the term of any such contract. | ||||||
9 | (6) Costs incurred under this subsection (d) or | ||||||
10 | pursuant to a contract entered into under this subsection | ||||||
11 | (d) shall be deemed prudently incurred and reasonable in | ||||||
12 | amount and the electric utility shall be entitled to full | ||||||
13 | cost recovery pursuant to the tariffs filed with the | ||||||
14 | Commission. | ||||||
15 | (e) The draft procurement plans are subject to public | ||||||
16 | comment, as required by Section 16-111.5 of the Public | ||||||
17 | Utilities Act. | ||||||
18 | (f) The Agency shall submit the final procurement plan | ||||||
19 | to the Commission. The Agency shall revise a procurement | ||||||
20 | plan if the Commission determines that it does not meet the | ||||||
21 | standards set forth in Section 16-111.5 of the Public | ||||||
22 | Utilities Act. | ||||||
23 | (g) The Agency shall assess fees to each affected | ||||||
24 | utility to recover the costs incurred in preparation of the | ||||||
25 | annual procurement plan for the utility. | ||||||
26 | (h) The Agency shall assess fees to each bidder to |
| |||||||
| |||||||
1 | recover the costs incurred in connection with a competitive | ||||||
2 | procurement process.
| ||||||
3 | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09.)
| ||||||
4 | Section 10. The State Finance Act is amended by adding | ||||||
5 | Section 5.719 as follows:
| ||||||
6 | (30 ILCS 105/5.719 new) | ||||||
7 | Sec. 5.719. The Illinois Power Agency Renewable Energy | ||||||
8 | Resources Fund.
| ||||||
9 | Section 15. The Illinois Procurement Code is amended by | ||||||
10 | changing Section 20-10 as follows:
| ||||||
11 | (30 ILCS 500/20-10)
| ||||||
12 | Sec. 20-10. Competitive sealed bidding.
| ||||||
13 | (a) Conditions for use. All contracts shall be awarded by
| ||||||
14 | competitive sealed bidding
except as otherwise provided in | ||||||
15 | Section 20-5.
| ||||||
16 | (b) Invitation for bids. An invitation for bids shall be
| ||||||
17 | issued and shall include a
purchase description and the | ||||||
18 | material contractual terms and
conditions applicable to the
| ||||||
19 | procurement.
| ||||||
20 | (c) Public notice. Public notice of the invitation for bids | ||||||
21 | shall be
published in the Illinois Procurement Bulletin at | ||||||
22 | least 14 days before the date
set in the invitation for the |
| |||||||
| |||||||
1 | opening of bids.
| ||||||
2 | (d) Bid opening. Bids shall be opened publicly in the
| ||||||
3 | presence of one or more witnesses
at the time and place | ||||||
4 | designated in the invitation for bids. The
name of each bidder, | ||||||
5 | the amount
of each bid, and other relevant information as may | ||||||
6 | be specified by
rule shall be
recorded. After the award of the | ||||||
7 | contract, the winning bid and the
record of each unsuccessful | ||||||
8 | bid shall be open to
public inspection.
| ||||||
9 | (e) Bid acceptance and bid evaluation. Bids shall be
| ||||||
10 | unconditionally accepted without
alteration or correction, | ||||||
11 | except as authorized in this Code. Bids
shall be evaluated | ||||||
12 | based on the
requirements set forth in the invitation for bids, | ||||||
13 | which may
include criteria to determine
acceptability such as | ||||||
14 | inspection, testing, quality, workmanship,
delivery, and | ||||||
15 | suitability for a
particular purpose. Those criteria that will | ||||||
16 | affect the bid price
and be considered in evaluation
for award, | ||||||
17 | such as discounts, transportation costs, and total or
life | ||||||
18 | cycle costs, shall be
objectively measurable. The invitation | ||||||
19 | for bids shall set forth
the evaluation criteria to be used.
| ||||||
20 | (f) Correction or withdrawal of bids. Correction or
| ||||||
21 | withdrawal of inadvertently
erroneous bids before or after | ||||||
22 | award, or cancellation of awards of
contracts based on bid
| ||||||
23 | mistakes, shall be permitted in accordance with rules.
After | ||||||
24 | bid opening, no
changes in bid prices or other provisions of | ||||||
25 | bids prejudicial to
the interest of the State or fair
| ||||||
26 | competition shall be permitted. All decisions to permit the
|
| |||||||
| |||||||
1 | correction or withdrawal of bids
based on bid mistakes shall be | ||||||
2 | supported by written determination
made by a State purchasing | ||||||
3 | officer.
| ||||||
4 | (g) Award. The contract shall be awarded with reasonable
| ||||||
5 | promptness by written notice
to the lowest responsible and | ||||||
6 | responsive bidder whose bid meets
the requirements and criteria
| ||||||
7 | set forth in the invitation for bids, except when a State | ||||||
8 | purchasing officer
determines it is not in the best interest of | ||||||
9 | the State and by written
explanation determines another bidder | ||||||
10 | shall receive the award. The explanation
shall appear in the | ||||||
11 | appropriate volume of the Illinois Procurement Bulletin.
| ||||||
12 | (h) Multi-step sealed bidding. When it is considered
| ||||||
13 | impracticable to initially prepare
a purchase description to | ||||||
14 | support an award based on price, an
invitation for bids may be | ||||||
15 | issued
requesting the submission of unpriced offers to be | ||||||
16 | followed by an
invitation for bids limited to
those bidders | ||||||
17 | whose offers have been qualified under the criteria
set forth | ||||||
18 | in the first solicitation.
| ||||||
19 | (i) Alternative procedures. Notwithstanding any other | ||||||
20 | provision of this Act to the contrary, the Director of the | ||||||
21 | Illinois Power Agency may create alternative bidding | ||||||
22 | procedures to be used in procuring professional services under | ||||||
23 | Section 1-75(a) of the Illinois Power Agency Act and Section | ||||||
24 | 16-111.5(c) of the Public Utilities Act and to procure | ||||||
25 | renewable energy resources under Section 1-56 of the Illinois | ||||||
26 | Power Agency Act . These alternative procedures shall be set |
| |||||||
| |||||||
1 | forth together with the other criteria contained in the | ||||||
2 | invitation for bids, and shall appear in the appropriate volume | ||||||
3 | of the Illinois Procurement Bulletin.
| ||||||
4 | (Source: P.A. 95-481, eff. 8-28-07.)
| ||||||
5 | Section 20. The Public Utilities Act is amended by changing | ||||||
6 | Sections 8-103 and 16-115 and by adding Section 16-115D as | ||||||
7 | follows:
| ||||||
8 | (220 ILCS 5/8-103) | ||||||
9 | Sec. 8-103. Energy efficiency and demand-response | ||||||
10 | measures. | ||||||
11 | (a) It is the policy of the State that electric utilities | ||||||
12 | are required to use cost-effective energy efficiency and | ||||||
13 | demand-response measures to reduce delivery load. Requiring | ||||||
14 | investment in cost-effective energy efficiency and | ||||||
15 | demand-response measures will reduce direct and indirect costs | ||||||
16 | to consumers by decreasing environmental impacts and by | ||||||
17 | avoiding or delaying the need for new generation, transmission, | ||||||
18 | and distribution infrastructure. It serves the public interest | ||||||
19 | to allow electric utilities to recover costs for reasonably and | ||||||
20 | prudently incurred expenses for energy efficiency and | ||||||
21 | demand-response measures. As used in this Section, | ||||||
22 | "cost-effective" means that the measures satisfy the total | ||||||
23 | resource cost test. The low-income measures described in | ||||||
24 | subsection (f)(4) of this Section shall not be required to meet |
| |||||||
| |||||||
1 | the total resource cost test. For purposes of this Section, the | ||||||
2 | terms "energy-efficiency", "demand-response", "electric | ||||||
3 | utility", and "total resource cost test" shall have the | ||||||
4 | meanings set forth in the Illinois Power Agency Act. For | ||||||
5 | purposes of this Section, the amount per kilowatthour means the | ||||||
6 | total amount paid for electric service expressed on a per | ||||||
7 | kilowatthour basis. For purposes of this Section, the total | ||||||
8 | amount paid for electric service includes without limitation | ||||||
9 | estimated amounts paid for supply, transmission, distribution, | ||||||
10 | surcharges, and add-on-taxes. | ||||||
11 | (b) Electric utilities shall implement cost-effective | ||||||
12 | energy efficiency measures to meet the following incremental | ||||||
13 | annual energy savings goals: | ||||||
14 | (1) 0.2% of energy delivered in the year commencing | ||||||
15 | June 1, 2008; | ||||||
16 | (2) 0.4% of energy delivered in the year commencing | ||||||
17 | June 1, 2009; | ||||||
18 | (3) 0.6% of energy delivered in the year commencing | ||||||
19 | June 1, 2010; | ||||||
20 | (4) 0.8% of energy delivered in the year commencing | ||||||
21 | June 1, 2011; | ||||||
22 | (5) 1% of energy delivered in the year commencing June | ||||||
23 | 1, 2012; | ||||||
24 | (6) 1.4% of energy delivered in the year commencing | ||||||
25 | June 1, 2013; | ||||||
26 | (7) 1.8% of energy delivered in the year commencing |
| |||||||
| |||||||
1 | June 1, 2014; and | ||||||
2 | (8) 2% of energy delivered in the year commencing June | ||||||
3 | 1, 2015 and each year thereafter. | ||||||
4 | (c) Electric utilities shall implement cost-effective | ||||||
5 | demand-response measures to reduce peak demand by 0.1% over the | ||||||
6 | prior year for eligible retail customers, as defined in Section | ||||||
7 | 16-111.5 of this Act , and for customers that elect hourly | ||||||
8 | service from the utility pursuant to Section 16-107 of this | ||||||
9 | Act, provided those customers have not been declared | ||||||
10 | competitive . This requirement commences June 1, 2008 and | ||||||
11 | continues for 10 years. | ||||||
12 | (d) Notwithstanding the requirements of subsections (b) | ||||||
13 | and (c) of this Section, an electric utility shall reduce the | ||||||
14 | amount of energy efficiency and demand-response measures | ||||||
15 | implemented in any single year by an amount necessary to limit | ||||||
16 | the estimated average increase in the amounts paid by retail | ||||||
17 | customers in connection with electric service due to the cost | ||||||
18 | of those measures to: | ||||||
19 | (1) in 2008, no more than 0.5% of the amount paid per | ||||||
20 | kilowatthour by those customers during the year ending May | ||||||
21 | 31, 2007; | ||||||
22 | (2) in 2009, the greater of an additional 0.5% of the | ||||||
23 | amount paid per kilowatthour by those customers during the | ||||||
24 | year ending May 31, 2008 or 1% of the amount paid per | ||||||
25 | kilowatthour by those customers during the year ending May | ||||||
26 | 31, 2007; |
| |||||||
| |||||||
1 | (3) in 2010, the greater of an additional 0.5% of the | ||||||
2 | amount paid per kilowatthour by those customers during the | ||||||
3 | year ending May 31, 2009 or 1.5% of the amount paid per | ||||||
4 | kilowatthour by those customers during the year ending May | ||||||
5 | 31, 2007; | ||||||
6 | (4) in 2011, the greater of an additional 0.5% of the | ||||||
7 | amount paid per kilowatthour by those customers during the | ||||||
8 | year ending May 31, 2010 or 2% of the amount paid per | ||||||
9 | kilowatthour by those customers during the year ending May | ||||||
10 | 31, 2007; and
| ||||||
11 | (5) thereafter, the amount of energy efficiency and | ||||||
12 | demand-response measures implemented for any single year | ||||||
13 | shall be reduced by an amount necessary to limit the | ||||||
14 | estimated average net increase due to the cost of these | ||||||
15 | measures included in the amounts paid by eligible retail | ||||||
16 | customers in connection with electric service to no more | ||||||
17 | than the greater of 2.015% of the amount paid per | ||||||
18 | kilowatthour by those customers during the year ending May | ||||||
19 | 31, 2007 or the incremental amount per kilowatthour paid | ||||||
20 | for these measures in 2011.
| ||||||
21 | No later than June 30, 2011, the Commission shall review | ||||||
22 | the limitation on the amount of energy efficiency and | ||||||
23 | demand-response measures implemented pursuant to this Section | ||||||
24 | and report to the General Assembly its findings as to whether | ||||||
25 | that limitation unduly constrains the procurement of energy | ||||||
26 | efficiency and demand-response measures. |
| |||||||
| |||||||
1 | (e) Electric utilities shall be responsible for overseeing | ||||||
2 | the design, development, and filing of energy efficiency and | ||||||
3 | demand-response plans with the Commission. Electric utilities | ||||||
4 | shall implement 100% of the demand-response measures in the | ||||||
5 | plans. Electric utilities shall implement 75% of the energy | ||||||
6 | efficiency measures approved by the Commission, and may, as | ||||||
7 | part of that implementation, outsource various aspects of | ||||||
8 | program development and implementation. The remaining 25% of | ||||||
9 | those energy efficiency measures approved by the Commission | ||||||
10 | shall be implemented by the Department of Commerce and Economic | ||||||
11 | Opportunity, and must be designed in conjunction with the | ||||||
12 | utility and the filing process. The Department may outsource | ||||||
13 | development and implementation of energy efficiency measures. | ||||||
14 | A minimum of 10% of the entire portfolio of cost-effective | ||||||
15 | energy efficiency measures shall be procured from units of | ||||||
16 | local government, municipal corporations, school districts, | ||||||
17 | and community college districts. The Department shall | ||||||
18 | coordinate the implementation of these measures. | ||||||
19 | The apportionment of the dollars to cover the costs to | ||||||
20 | implement the Department's share of the portfolio of energy | ||||||
21 | efficiency measures shall be made to the Department once the | ||||||
22 | Department has executed grants or contracts for energy | ||||||
23 | efficiency measures and provided supporting documentation for | ||||||
24 | those grants and the contracts to the utility. | ||||||
25 | The details of the measures implemented by the Department | ||||||
26 | shall be submitted by the Department to the Commission in |
| |||||||
| |||||||
1 | connection with the utility's filing regarding the energy | ||||||
2 | efficiency and demand-response measures that the utility | ||||||
3 | implements. | ||||||
4 | A utility providing approved energy efficiency and | ||||||
5 | demand-response measures in the State shall be permitted to | ||||||
6 | recover costs of those measures through an automatic adjustment | ||||||
7 | clause tariff filed with and approved by the Commission. The | ||||||
8 | tariff shall be established outside the context of a general | ||||||
9 | rate case. Each year the Commission shall initiate a review to | ||||||
10 | reconcile any amounts collected with the actual costs and to | ||||||
11 | determine the required adjustment to the annual tariff factor | ||||||
12 | to match annual expenditures. | ||||||
13 | Each utility shall include, in its recovery of costs, the | ||||||
14 | costs estimated for both the utility's and the Department's | ||||||
15 | implementation of energy efficiency and demand-response | ||||||
16 | measures. Costs collected by the utility for measures | ||||||
17 | implemented by the Department shall be submitted to the | ||||||
18 | Department pursuant to Section 605-323 of the Civil | ||||||
19 | Administrative Code of Illinois and shall be used by the | ||||||
20 | Department solely for the purpose of implementing these | ||||||
21 | measures. A utility shall not be required to advance any moneys | ||||||
22 | to the Department but only to forward such funds as it has | ||||||
23 | collected. The Department shall report to the Commission on an | ||||||
24 | annual basis regarding the costs actually incurred by the | ||||||
25 | Department in the implementation of the measures. Any changes | ||||||
26 | to the costs of energy efficiency measures as a result of plan |
| |||||||
| |||||||
1 | modifications shall be appropriately reflected in amounts | ||||||
2 | recovered by the utility and turned over to the Department. | ||||||
3 | The portfolio of measures, administered by both the | ||||||
4 | utilities and the Department, shall, in combination, be | ||||||
5 | designed to achieve the annual savings targets described in | ||||||
6 | subsections (b) and (c) of this Section, as modified by | ||||||
7 | subsection (d) of this Section. | ||||||
8 | The utility and the Department shall agree upon a | ||||||
9 | reasonable portfolio of measures and determine the measurable | ||||||
10 | corresponding percentage of the savings goals associated with | ||||||
11 | measures implemented by the utility or Department. | ||||||
12 | No utility shall be assessed a penalty under subsection (f) | ||||||
13 | of this Section for failure to make a timely filing if that | ||||||
14 | failure is the result of a lack of agreement with the | ||||||
15 | Department with respect to the allocation of responsibilities | ||||||
16 | or related costs or target assignments. In that case, the | ||||||
17 | Department and the utility shall file their respective plans | ||||||
18 | with the Commission and the Commission shall determine an | ||||||
19 | appropriate division of measures and programs that meets the | ||||||
20 | requirements of this Section. | ||||||
21 | If the Department is unable to meet incremental annual | ||||||
22 | performance goals for the portion of the portfolio implemented | ||||||
23 | by the Department, then the utility and the Department shall | ||||||
24 | jointly submit a modified filing to the Commission explaining | ||||||
25 | the performance shortfall and recommending an appropriate | ||||||
26 | course going forward, including any program modifications that |
| |||||||
| |||||||
1 | may be appropriate in light of the evaluations conducted under | ||||||
2 | item (7) of subsection (f) of this Section. In this case, the | ||||||
3 | utility obligation to collect the Department's costs and turn | ||||||
4 | over those funds to the Department under this subsection (e) | ||||||
5 | shall continue only if the Commission approves the | ||||||
6 | modifications to the plan proposed by the Department. | ||||||
7 | (f) No later than November 15, 2007, each electric utility | ||||||
8 | shall file an energy efficiency and demand-response plan with | ||||||
9 | the Commission to meet the energy efficiency and | ||||||
10 | demand-response standards for 2008 through 2010. Every 3 years | ||||||
11 | thereafter, each electric utility shall file an energy | ||||||
12 | efficiency and demand-response plan with the Commission. If a | ||||||
13 | utility does not file such a plan, it shall face a penalty of | ||||||
14 | $100,000 per day until the plan is filed. Each utility's plan | ||||||
15 | shall set forth the utility's proposals to meet the utility's | ||||||
16 | portion of the energy efficiency standards identified in | ||||||
17 | subsection (b) and the demand-response standards identified in | ||||||
18 | subsection (c) of this Section as modified by subsections (d) | ||||||
19 | and (e), taking into account the unique circumstances of the | ||||||
20 | utility's service territory. The Commission shall seek public | ||||||
21 | comment on the utility's plan and shall issue an order | ||||||
22 | approving or disapproving each plan within 3 months after its | ||||||
23 | submission. If the Commission disapproves a plan, the | ||||||
24 | Commission shall, within 30 days, describe in detail the | ||||||
25 | reasons for the disapproval and describe a path by which the | ||||||
26 | utility may file a revised draft of the plan to address the |
| |||||||
| |||||||
1 | Commission's concerns satisfactorily. If the utility does not | ||||||
2 | refile with the Commission within 60 days, the utility shall be | ||||||
3 | subject to penalties at a rate of $100,000 per day until the | ||||||
4 | plan is filed. This process shall continue, and penalties shall | ||||||
5 | accrue, until the utility has successfully filed a portfolio of | ||||||
6 | energy efficiency and demand-response measures. Penalties | ||||||
7 | shall be deposited into the Energy Efficiency Trust Fund. In | ||||||
8 | submitting proposed energy efficiency and demand-response | ||||||
9 | plans and funding levels to meet the savings goals adopted by | ||||||
10 | this Act the utility shall: | ||||||
11 | (1) Demonstrate that its proposed energy efficiency | ||||||
12 | and demand-response measures will achieve the requirements | ||||||
13 | that are identified in subsections (b) and (c) of this | ||||||
14 | Section, as modified by subsections (d) and (e). | ||||||
15 | (2) Present specific proposals to implement new | ||||||
16 | building and appliance standards that have been placed into | ||||||
17 | effect. | ||||||
18 | (3) Present estimates of the total amount paid for | ||||||
19 | electric service expressed on a per kilowatthour basis | ||||||
20 | associated with the proposed portfolio of measures | ||||||
21 | designed to meet the requirements that are identified in | ||||||
22 | subsections (b) and (c) of this Section, as modified by | ||||||
23 | subsections (d) and (e). | ||||||
24 | (4) Coordinate with the Department and the Department | ||||||
25 | of Healthcare and Family Services to present a portfolio of | ||||||
26 | energy efficiency measures targeted to households at or |
| |||||||
| |||||||
1 | below 150% of the poverty level at a level proportionate to | ||||||
2 | the those households' share of total annual utility | ||||||
3 | revenues in Illinois from households at or below 150% of | ||||||
4 | the poverty level. The energy efficiency programs shall be | ||||||
5 | targeted to households with incomes at or below 80% of area | ||||||
6 | median income . | ||||||
7 | (5) Demonstrate that its overall portfolio of energy | ||||||
8 | efficiency and demand-response measures, not including | ||||||
9 | programs covered by item (4) of this subsection (f), are | ||||||
10 | cost-effective using the total resource cost test and | ||||||
11 | represent a diverse cross-section of opportunities for | ||||||
12 | customers of all rate classes to participate in the | ||||||
13 | programs. | ||||||
14 | (6) Include a proposed cost-recovery tariff mechanism | ||||||
15 | to fund the proposed energy efficiency and demand-response | ||||||
16 | measures and to ensure the recovery of the prudently and | ||||||
17 | reasonably incurred costs of Commission-approved programs. | ||||||
18 | (7) Provide for an annual independent evaluation of the | ||||||
19 | performance of the cost-effectiveness of the utility's | ||||||
20 | portfolio of measures and the Department's portfolio of | ||||||
21 | measures, as well as a full review of the 3-year results of | ||||||
22 | the broader net program impacts and, to the extent | ||||||
23 | practical, for adjustment of the measures on a | ||||||
24 | going-forward basis as a result of the evaluations. The | ||||||
25 | resources dedicated to evaluation shall not exceed 3% of | ||||||
26 | portfolio resources in any given year. |
| |||||||
| |||||||
1 | (g) No more than 3% of energy efficiency and | ||||||
2 | demand-response program revenue may be allocated for | ||||||
3 | demonstration of breakthrough equipment and devices. | ||||||
4 | (h) This Section does not apply to an electric utility that | ||||||
5 | on December 31, 2005 provided electric service to fewer than | ||||||
6 | 100,000 customers in Illinois. | ||||||
7 | (i) If, after 2 years, an electric utility fails to meet | ||||||
8 | the efficiency standard specified in subsection (b) of this | ||||||
9 | Section, as modified by subsections (d) and (e), it shall make | ||||||
10 | a contribution to the Low-Income Home Energy Assistance | ||||||
11 | Program. The combined total liability for failure to meet the | ||||||
12 | goal shall be $1,000,000, which shall be assessed as follows: a | ||||||
13 | large electric utility shall pay $665,000, and a medium | ||||||
14 | electric utility shall pay $335,000. If, after 3 years, an | ||||||
15 | electric utility fails to meet the efficiency standard | ||||||
16 | specified in subsection (b) of this Section, as modified by | ||||||
17 | subsections (d) and (e), it shall make a contribution to the | ||||||
18 | Low-Income Home Energy Assistance Program. The combined total | ||||||
19 | liability for failure to meet the goal shall be $1,000,000, | ||||||
20 | which shall be assessed as follows: a large electric utility | ||||||
21 | shall pay $665,000, and a medium electric utility shall pay | ||||||
22 | $335,000. In addition, the responsibility for implementing the | ||||||
23 | energy efficiency measures of the utility making the payment | ||||||
24 | shall be transferred to the Illinois Power Agency if, after 3 | ||||||
25 | years, or in any subsequent 3-year period, the utility fails to | ||||||
26 | meet the efficiency standard specified in subsection (b) of |
| |||||||
| |||||||
1 | this Section, as modified by subsections (d) and (e). The | ||||||
2 | Agency shall implement a competitive procurement program to | ||||||
3 | procure resources necessary to meet the standards specified in | ||||||
4 | this Section as modified by subsections (d) and (e), with costs | ||||||
5 | for those resources to be recovered in the same manner as | ||||||
6 | products purchased through the procurement plan as provided in | ||||||
7 | Section 16-111.5. The Director shall implement this | ||||||
8 | requirement in connection with the procurement plan as provided | ||||||
9 | in Section 16-111.5. | ||||||
10 | For purposes of this Section, (i) a "large electric | ||||||
11 | utility" is an electric utility that, on December 31, 2005, | ||||||
12 | served more than 2,000,000 electric customers in Illinois; (ii) | ||||||
13 | a "medium electric utility" is an electric utility that, on | ||||||
14 | December 31, 2005, served 2,000,000 or fewer but more than | ||||||
15 | 100,000 electric customers in Illinois; and (iii) Illinois | ||||||
16 | electric utilities that are affiliated by virtue of a common | ||||||
17 | parent company are considered a single electric utility. | ||||||
18 | (j) If, after 3 years, or any subsequent 3-year period, the | ||||||
19 | Department fails to implement the Department's share of energy | ||||||
20 | efficiency measures required by the standards in subsection | ||||||
21 | (b), then the Illinois Power Agency may assume responsibility | ||||||
22 | for and control of the Department's share of the required | ||||||
23 | energy efficiency measures. The Agency shall implement a | ||||||
24 | competitive procurement program to procure resources necessary | ||||||
25 | to meet the standards specified in this Section, with the costs | ||||||
26 | of these resources to be recovered in the same manner as |
| |||||||
| |||||||
1 | provided for the Department in this Section.
| ||||||
2 | (k) No electric utility shall be deemed to have failed to | ||||||
3 | meet the energy efficiency standards to the extent any such | ||||||
4 | failure is due to a failure of the Department or the Agency.
| ||||||
5 | (Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08.)
| ||||||
6 | (220 ILCS 5/16-115)
| ||||||
7 | (Text of Section before amendment by P.A. 95-1027 )
| ||||||
8 | Sec. 16-115. Certification of alternative retail
electric | ||||||
9 | suppliers. | ||||||
10 | (a) Any alternative retail electric supplier must obtain
a | ||||||
11 | certificate of service authority from the Commission in
| ||||||
12 | accordance with this Section before serving any retail
customer | ||||||
13 | or other user located in this State. An alternative
retail | ||||||
14 | electric supplier may request, and the Commission may
grant, a | ||||||
15 | certificate of service authority for the entire State
or for a | ||||||
16 | specified geographic area of the State.
| ||||||
17 | (b) An alternative retail electric supplier seeking a
| ||||||
18 | certificate of service authority shall file with the
Commission | ||||||
19 | a verified application containing information
showing that the | ||||||
20 | applicant meets the requirements of this
Section. The | ||||||
21 | alternative retail electric supplier shall
publish notice of | ||||||
22 | its application in the official State
newspaper within 10 days | ||||||
23 | following the date of its filing. No
later than 45 days after | ||||||
24 | the application is properly filed
with the Commission, and such | ||||||
25 | notice is published, the
Commission shall issue its order |
| |||||||
| |||||||
1 | granting or denying the
application.
| ||||||
2 | (c) An application for a certificate of service
authority | ||||||
3 | shall identify the area or areas in which the
applicant intends | ||||||
4 | to offer service and the types of services
it intends to offer. | ||||||
5 | Applicants that seek to serve
residential or small commercial | ||||||
6 | retail customers within a
geographic area that is smaller than | ||||||
7 | an electric utility's
service area shall submit evidence | ||||||
8 | demonstrating that the
designation of this smaller area does | ||||||
9 | not violate Section 16-115A. An applicant
that seeks to serve | ||||||
10 | residential or small
commercial retail customers may state in | ||||||
11 | its application for
certification any limitations that will be | ||||||
12 | imposed on the
number of customers or maximum load to be | ||||||
13 | served.
| ||||||
14 | (d) The Commission shall grant the application for a
| ||||||
15 | certificate of service authority if it makes the findings set
| ||||||
16 | forth in this subsection
based on the verified
application and | ||||||
17 | such other information as the applicant may
submit:
| ||||||
18 | (1) That the applicant possesses sufficient
technical, | ||||||
19 | financial and managerial resources and
abilities to | ||||||
20 | provide the service for which it seeks a
certificate of | ||||||
21 | service authority. In determining the
level of technical, | ||||||
22 | financial and managerial resources
and abilities which the | ||||||
23 | applicant must demonstrate, the
Commission shall consider | ||||||
24 | (i) the characteristics,
including the size and financial | ||||||
25 | sophistication, of the
customers that the applicant seeks | ||||||
26 | to serve, and (ii)
whether the applicant seeks to provide |
| |||||||
| |||||||
1 | electric power and
energy using property, plant and | ||||||
2 | equipment which it owns,
controls or operates;
| ||||||
3 | (2) That the applicant will comply with all
applicable | ||||||
4 | federal, State, regional and industry rules,
policies, | ||||||
5 | practices and procedures for the use,
operation, and | ||||||
6 | maintenance of the safety, integrity and
reliability, of | ||||||
7 | the interconnected electric transmission
system;
| ||||||
8 | (3) That the applicant will only provide service to
| ||||||
9 | retail customers in an electric utility's service area
that | ||||||
10 | are eligible to take delivery services under this
Act;
| ||||||
11 | (4) That the applicant will comply with such
| ||||||
12 | informational or reporting requirements as the Commission
| ||||||
13 | may by rule establish and provide the information required | ||||||
14 | by Section 16-112.
Any data related to
contracts for the | ||||||
15 | purchase and sale of electric power and
energy shall be | ||||||
16 | made available for review by the Staff of
the Commission on | ||||||
17 | a confidential and proprietary basis
and only to the extent | ||||||
18 | and for the purposes which the
Commission determines are | ||||||
19 | reasonably necessary in order
to carry out the purposes of | ||||||
20 | this Act;
| ||||||
21 | (5) That the applicant will procure renewable energy | ||||||
22 | resources in accordance with Section 16-115D of this Act, | ||||||
23 | and will source electricity from clean coal facilities, as | ||||||
24 | defined in Section 1-10 of the Illinois Power Agency Act, | ||||||
25 | in amounts at least equal to the percentages set forth in | ||||||
26 | subsections (c) and (d) of Section 1-75 of the Illinois |
| |||||||
| |||||||
1 | Power Agency Act. For purposes of this Section: | ||||||
2 | (i) (Blank); | ||||||
3 | (ii) (Blank); | ||||||
4 | (iii) the required sourcing of electricity | ||||||
5 | generated by clean coal facilities, other than the | ||||||
6 | initial clean coal facility, shall be limited to the | ||||||
7 | amount of electricity that can be procured or sourced | ||||||
8 | at a price at or below the benchmarks approved by the | ||||||
9 | Commission each year in accordance with item (1) of | ||||||
10 | subsection (c) and items (1) and (5) of subsection (d) | ||||||
11 | of Section 1-75 of the Illinois Power Agency Act; | ||||||
12 | (iv) all alternative retail electric suppliers | ||||||
13 | shall execute a sourcing agreement to source | ||||||
14 | electricity from the initial clean coal facility, on | ||||||
15 | the terms set forth in paragraphs (3) and (4) of | ||||||
16 | subsection (d) of Section 1-75 of the Illinois Power | ||||||
17 | Agency Act, except that in lieu of the requirements in | ||||||
18 | subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of | ||||||
19 | paragraph (3) of that subsection (d), the applicant | ||||||
20 | shall execute one or more of the following: | ||||||
21 | (1) if the sourcing agreement is a power | ||||||
22 | purchase agreement, a contract with the initial | ||||||
23 | clean coal facility to purchase in each hour an | ||||||
24 | amount of electricity equal to all clean coal | ||||||
25 | energy made available from the initial clean coal | ||||||
26 | facility during such hour, which the utilities are |
| |||||||
| |||||||
1 | not required to procure under the terms of | ||||||
2 | subsection (d) of Section 1-75 of the Illinois | ||||||
3 | Power Agency Act, multiplied by a fraction, the | ||||||
4 | numerator of which is the alternative retail | ||||||
5 | electric supplier's retail market sales of | ||||||
6 | electricity (expressed in kilowatt-hours sold) in | ||||||
7 | the State during the prior calendar month and the | ||||||
8 | denominator of which is the total sales of | ||||||
9 | electricity (expressed in kilowatt-hours sold) in | ||||||
10 | the State by alternative retail electric suppliers | ||||||
11 | during such prior month that are subject to the | ||||||
12 | requirements of this paragraph (5) of subsection | ||||||
13 | (d) of this Section and subsection (d) of Section | ||||||
14 | 1-75 of the Illinois Power Agency Act plus the | ||||||
15 | total sales of electricity (expressed in | ||||||
16 | kilowatt-hours sold) by utilities outside of their | ||||||
17 | service areas during such prior month, pursuant to | ||||||
18 | subsection (c) of Section 16-116 of this Act; or | ||||||
19 | (2) if the sourcing agreement is a contract for | ||||||
20 | differences, a contract with the initial clean | ||||||
21 | coal facility in each hour with respect to an | ||||||
22 | amount of electricity equal to all clean coal | ||||||
23 | energy made available from the initial clean coal | ||||||
24 | facility during such hour, which the utilities are | ||||||
25 | not required to procure under the terms of | ||||||
26 | subsection (d) of Section 1-75 of the Illinois |
| |||||||
| |||||||
1 | Power Agency Act, multiplied by a fraction, the | ||||||
2 | numerator of which is the alternative retail | ||||||
3 | electric supplier's retail market sales of | ||||||
4 | electricity (expressed in kilowatt-hours sold) in | ||||||
5 | the State during the prior calendar month and the | ||||||
6 | denominator of which is the total sales of | ||||||
7 | electricity (expressed in kilowatt-hours sold) in | ||||||
8 | the State by alternative retail electric suppliers | ||||||
9 | during such prior month that are subject to the | ||||||
10 | requirements of this paragraph (5) of subsection | ||||||
11 | (d) of this Section and subsection (d) of Section | ||||||
12 | 1-75 of the Illinois Power Agency Act plus the | ||||||
13 | total sales of electricity (expressed in | ||||||
14 | kilowatt-hours sold) by utilities outside of their | ||||||
15 | service areas during such prior month, pursuant to | ||||||
16 | subsection (c) of Section 16-116 of this Act; | ||||||
17 | (v) if, in any year after the first year of | ||||||
18 | commercial operation, the owner of the clean coal | ||||||
19 | facility fails to demonstrate to the Commission that | ||||||
20 | the initial clean coal facility captured and | ||||||
21 | sequestered at least 50% of the total carbon emissions | ||||||
22 | that the facility would otherwise emit or that | ||||||
23 | sequestration of emissions from prior years has | ||||||
24 | failed, resulting in the release of carbon into the | ||||||
25 | atmosphere, the owner of the facility must offset | ||||||
26 | excess emissions. Any such carbon offsets must be |
| |||||||
| |||||||
1 | permanent, additional, verifiable, real, located | ||||||
2 | within the State of Illinois, and legally and | ||||||
3 | practicably enforceable. The costs of any such offsets | ||||||
4 | that are not recoverable shall not exceed $15 million | ||||||
5 | in any given year. No costs of any such purchases of | ||||||
6 | carbon offsets may be recovered from an alternative | ||||||
7 | retail electric supplier or its customers. All carbon | ||||||
8 | offsets purchased for this purpose and any carbon | ||||||
9 | emission credits associated with sequestration of | ||||||
10 | carbon from the facility must be permanently retired. | ||||||
11 | The initial clean coal facility shall not forfeit its | ||||||
12 | designation as a clean coal facility if the facility | ||||||
13 | fails to fully comply with the applicable carbon | ||||||
14 | sequestration requirements in any given year, provided | ||||||
15 | the requisite offsets are purchased. However, the | ||||||
16 | Attorney General, on behalf of the People of the State | ||||||
17 | of Illinois, may specifically enforce the facility's | ||||||
18 | sequestration requirement and the other terms of this | ||||||
19 | contract provision. Compliance with the sequestration | ||||||
20 | requirements and offset purchase requirements that | ||||||
21 | apply to the initial clean coal facility shall be | ||||||
22 | reviewed annually by an independent expert retained by | ||||||
23 | the owner of the initial clean coal facility, with the | ||||||
24 | advance written approval of the Attorney General; | ||||||
25 | (vi) The Commission shall, after notice and | ||||||
26 | hearing, revoke the certification of any alternative |
| |||||||
| |||||||
1 | retail electric supplier that fails to execute a | ||||||
2 | sourcing agreement with the initial clean coal | ||||||
3 | facility as required by item (5) of subsection (d) of | ||||||
4 | this Section. The sourcing agreements with this | ||||||
5 | initial clean coal facility shall be subject to both | ||||||
6 | approval of the initial clean coal facility by the | ||||||
7 | General Assembly and satisfaction of the requirements | ||||||
8 | of item (4) of subsection (d) of Section 1-75 of the | ||||||
9 | Illinois Power Agency Act, and shall be executed within | ||||||
10 | 90 days after any such approval by the General | ||||||
11 | Assembly. The Commission shall not accept an | ||||||
12 | application for certification from an alternative | ||||||
13 | retail electric supplier that has lost certification | ||||||
14 | under this subsection (d), or any corporate affiliate | ||||||
15 | thereof, for at least one year from the date of | ||||||
16 | revocation;
| ||||||
17 | (6) With respect to an applicant that seeks to serve
| ||||||
18 | residential or small commercial retail customers, that
the | ||||||
19 | area to be served by the applicant and any
limitations it | ||||||
20 | proposes on the number of customers or
maximum amount of | ||||||
21 | load to be served meet the provisions
of Section 16-115A, | ||||||
22 | provided, that the Commission can
extend the time for | ||||||
23 | considering such a certificate
request by up to 90 days, | ||||||
24 | and can schedule hearings on
such a request;
| ||||||
25 | (7) That the applicant meets the requirements of | ||||||
26 | subsection (a) of Section
16-128; and
|
| |||||||
| |||||||
1 | (8) That the applicant will comply with all other
| ||||||
2 | applicable laws and regulations.
| ||||||
3 | (e) A retail customer that owns a cogeneration or | ||||||
4 | self-generation facility
and that seeks certification only to
| ||||||
5 | provide electric power and energy from such facility to
retail | ||||||
6 | customers at separate locations which customers are
both (i) | ||||||
7 | owned by, or a subsidiary or other corporate
affiliate of, such | ||||||
8 | applicant and
(ii) eligible for delivery services, shall be | ||||||
9 | granted a
certificate of service authority upon filing an | ||||||
10 | application
and notifying the Commission that it has entered | ||||||
11 | into an
agreement with the relevant electric utilities pursuant | ||||||
12 | to
Section 16-118.
Provided, however, that if the retail | ||||||
13 | customer owning such cogeneration or
self-generation facility | ||||||
14 | would not be charged a transition charge due to the
exemption | ||||||
15 | provided under subsection (f) of Section 16-108 prior to the
| ||||||
16 | certification, and the retail customers at separate locations | ||||||
17 | are taking
delivery services in conjunction with purchasing | ||||||
18 | power and energy from the
facility, the retail customer on | ||||||
19 | whose premises the facility is located shall
not thereafter be | ||||||
20 | required to pay transition charges on the power and energy
that | ||||||
21 | such retail customer takes from the facility.
| ||||||
22 | (f) The Commission shall have the authority to
promulgate | ||||||
23 | rules and regulations to carry out the provisions
of this | ||||||
24 | Section. On or before May 1, 1999, the Commission
shall adopt a | ||||||
25 | rule or rules applicable to the certification of
those | ||||||
26 | alternative retail electric suppliers that seek to serve
only |
| |||||||
| |||||||
1 | nonresidential retail customers with maximum electrical
| ||||||
2 | demands of one megawatt or more which shall provide for (i)
| ||||||
3 | expedited and streamlined procedures
for certification of such | ||||||
4 | alternative
retail electric suppliers and (ii) specific | ||||||
5 | criteria which,
if met by any such alternative retail electric | ||||||
6 | supplier, shall
constitute the demonstration of technical, | ||||||
7 | financial and
managerial resources and abilities to provide | ||||||
8 | service required
by subsection (d) (1) of this Section, such as | ||||||
9 | a requirement
to post a bond or letter of credit, from a | ||||||
10 | responsible surety
or financial institution, of sufficient | ||||||
11 | size for the nature
and scope of the services to be provided; | ||||||
12 | demonstration of
adequate insurance for the scope and nature of | ||||||
13 | the services to
be provided; and experience in providing | ||||||
14 | similar services in
other jurisdictions.
| ||||||
15 | (Source: P.A. 95-130, eff. 1-1-08.)
| ||||||
16 | (Text of Section after amendment by P.A. 95-1027 )
| ||||||
17 | Sec. 16-115. Certification of alternative retail
electric | ||||||
18 | suppliers. | ||||||
19 | (a) Any alternative retail electric supplier must obtain
a | ||||||
20 | certificate of service authority from the Commission in
| ||||||
21 | accordance with this Section before serving any retail
customer | ||||||
22 | or other user located in this State. An alternative
retail | ||||||
23 | electric supplier may request, and the Commission may
grant, a | ||||||
24 | certificate of service authority for the entire State
or for a | ||||||
25 | specified geographic area of the State.
|
| |||||||
| |||||||
1 | (b) An alternative retail electric supplier seeking a
| ||||||
2 | certificate of service authority shall file with the
Commission | ||||||
3 | a verified application containing information
showing that the | ||||||
4 | applicant meets the requirements of this
Section. The | ||||||
5 | alternative retail electric supplier shall
publish notice of | ||||||
6 | its application in the official State
newspaper within 10 days | ||||||
7 | following the date of its filing. No
later than 45 days after | ||||||
8 | the application is properly filed
with the Commission, and such | ||||||
9 | notice is published, the
Commission shall issue its order | ||||||
10 | granting or denying the
application.
| ||||||
11 | (c) An application for a certificate of service
authority | ||||||
12 | shall identify the area or areas in which the
applicant intends | ||||||
13 | to offer service and the types of services
it intends to offer. | ||||||
14 | Applicants that seek to serve
residential or small commercial | ||||||
15 | retail customers within a
geographic area that is smaller than | ||||||
16 | an electric utility's
service area shall submit evidence | ||||||
17 | demonstrating that the
designation of this smaller area does | ||||||
18 | not violate Section 16-115A. An applicant
that seeks to serve | ||||||
19 | residential or small
commercial retail customers may state in | ||||||
20 | its application for
certification any limitations that will be | ||||||
21 | imposed on the
number of customers or maximum load to be | ||||||
22 | served.
| ||||||
23 | (d) The Commission shall grant the application for a
| ||||||
24 | certificate of service authority if it makes the findings set
| ||||||
25 | forth in this subsection
based on the verified
application and | ||||||
26 | such other information as the applicant may
submit:
|
| |||||||
| |||||||
1 | (1) That the applicant possesses sufficient
technical, | ||||||
2 | financial and managerial resources and
abilities to | ||||||
3 | provide the service for which it seeks a
certificate of | ||||||
4 | service authority. In determining the
level of technical, | ||||||
5 | financial and managerial resources
and abilities which the | ||||||
6 | applicant must demonstrate, the
Commission shall consider | ||||||
7 | (i) the characteristics,
including the size and financial | ||||||
8 | sophistication, of the
customers that the applicant seeks | ||||||
9 | to serve, and (ii)
whether the applicant seeks to provide | ||||||
10 | electric power and
energy using property, plant and | ||||||
11 | equipment which it owns,
controls or operates;
| ||||||
12 | (2) That the applicant will comply with all
applicable | ||||||
13 | federal, State, regional and industry rules,
policies, | ||||||
14 | practices and procedures for the use,
operation, and | ||||||
15 | maintenance of the safety, integrity and
reliability, of | ||||||
16 | the interconnected electric transmission
system;
| ||||||
17 | (3) That the applicant will only provide service to
| ||||||
18 | retail customers in an electric utility's service area
that | ||||||
19 | are eligible to take delivery services under this
Act;
| ||||||
20 | (4) That the applicant will comply with such
| ||||||
21 | informational or reporting requirements as the Commission
| ||||||
22 | may by rule establish and provide the information required | ||||||
23 | by Section 16-112.
Any data related to
contracts for the | ||||||
24 | purchase and sale of electric power and
energy shall be | ||||||
25 | made available for review by the Staff of
the Commission on | ||||||
26 | a confidential and proprietary basis
and only to the extent |
| |||||||
| |||||||
1 | and for the purposes which the
Commission determines are | ||||||
2 | reasonably necessary in order
to carry out the purposes of | ||||||
3 | this Act;
| ||||||
4 | (5) That the applicant will procure renewable energy | ||||||
5 | resources in accordance with Section 16-115D of this Act, | ||||||
6 | and will source electricity from clean coal facilities, as | ||||||
7 | defined in Section 1-10 of the Illinois Power Agency Act, | ||||||
8 | in amounts at least equal to the percentages set forth in | ||||||
9 | subsections (c) and (d) of Section 1-75 of the Illinois | ||||||
10 | Power Agency Act. For purposes of this Section:
| ||||||
11 | (i) (Blank); the required procurement of renewable | ||||||
12 | energy resources shall be measured as a percentage of | ||||||
13 | the actual amount of electricity (megawatt-hours) | ||||||
14 | supplied by the alternative retail electric supplier | ||||||
15 | in the prior calendar year, as reported for that year | ||||||
16 | to the Commission. This obligation applies to all | ||||||
17 | electricity supplied pursuant to retail contracts | ||||||
18 | executed, extended, or otherwise revised after the | ||||||
19 | effective date of this amendatory Act, provided the | ||||||
20 | alternative retail electric supplier submits all | ||||||
21 | documentation needed by the Commission to determine | ||||||
22 | the actual amount of electricity supplied under | ||||||
23 | contracts that may be excluded under this limitation; | ||||||
24 | (ii) (Blank); an alternative retail electric | ||||||
25 | supplier need not actually deliver electricity to its | ||||||
26 | customers to comply with this Section, provided that if |
| |||||||
| |||||||
1 | the alternative retail electric supplier claims credit | ||||||
2 | for such purpose, subsequent purchasers shall not | ||||||
3 | receive any emission credits or renewable energy | ||||||
4 | credits in connection with the purchase of such | ||||||
5 | electricity. Alternative retail electric suppliers | ||||||
6 | shall maintain adequate records documenting the | ||||||
7 | contractual disposition of all electricity procured to | ||||||
8 | comply with this Section and shall file an accounting | ||||||
9 | in the report which must be filed with the Commission | ||||||
10 | on April 1 of each year, starting in 2010, in | ||||||
11 | accordance with subsection (d-5) of this Section ; | ||||||
12 | (iii) the required procurement of renewable energy | ||||||
13 | resources and sourcing of electricity generated by | ||||||
14 | clean coal facilities, other than the initial clean | ||||||
15 | coal facility, shall be limited to the amount of | ||||||
16 | electricity that can be procured or sourced at a price | ||||||
17 | at or below the benchmarks approved by the Commission | ||||||
18 | each year in accordance with item (1) of subsection (c) | ||||||
19 | and items (1) and (5) of subsection (d) of Section 1-75 | ||||||
20 | of the Illinois Power Agency Act; | ||||||
21 | (iv) all alternative retail electric suppliers | ||||||
22 | shall execute a sourcing agreement to source | ||||||
23 | electricity from the initial clean coal facility, on | ||||||
24 | the terms set forth in paragraphs (3) and (4) of | ||||||
25 | subsection (d) of Section 1-75 of the Illinois Power | ||||||
26 | Agency Act, except that in lieu of the requirements in |
| |||||||
| |||||||
1 | subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of | ||||||
2 | paragraph (3) of that subsection (d), the applicant | ||||||
3 | shall execute one or more of the following: | ||||||
4 | (1) if the sourcing agreement is a power | ||||||
5 | purchase agreement, a contract with the initial | ||||||
6 | clean coal facility to purchase in each hour an | ||||||
7 | amount of electricity equal to all clean coal | ||||||
8 | energy made available from the initial clean coal | ||||||
9 | facility during such hour, which the utilities are | ||||||
10 | not required to procure under the terms of | ||||||
11 | subsection (d) of Section 1-75 of the Illinois | ||||||
12 | Power Agency Act, multiplied by a fraction, the | ||||||
13 | numerator of which is the alternative retail | ||||||
14 | electric supplier's retail market sales of | ||||||
15 | electricity (expressed in kilowatthours sold) in | ||||||
16 | the State during the prior calendar month and the | ||||||
17 | denominator of which is the total sales of | ||||||
18 | electricity (expressed in kilowatthours sold) in | ||||||
19 | the State by alternative retail electric suppliers | ||||||
20 | during such prior month that are subject to the | ||||||
21 | requirements of this paragraph (5) of subsection | ||||||
22 | (d) of this Section and subsection (d) of Section | ||||||
23 | 1-75 of the Illinois Power Agency Act plus the | ||||||
24 | total sales of electricity (expressed in | ||||||
25 | kilowatthours sold) by utilities outside of their | ||||||
26 | service areas during such prior month, pursuant to |
| |||||||
| |||||||
1 | subsection (c) of Section 16-116 of this Act; or | ||||||
2 | (2) if the sourcing agreement is a contract for | ||||||
3 | differences, a contract with the initial clean | ||||||
4 | coal facility in each hour with respect to an | ||||||
5 | amount of electricity equal to all clean coal | ||||||
6 | energy made available from the initial clean coal | ||||||
7 | facility during such hour, which the utilities are | ||||||
8 | not required to procure under the terms of | ||||||
9 | subsection (d) of Section 1-75 of the Illinois | ||||||
10 | Power Agency Act, multiplied by a fraction, the | ||||||
11 | numerator of which is the alternative retail | ||||||
12 | electric supplier's retail market sales of | ||||||
13 | electricity (expressed in kilowatthours sold) in | ||||||
14 | the State during the prior calendar month and the | ||||||
15 | denominator of which is the total sales of | ||||||
16 | electricity (expressed in kilowatthours sold) in | ||||||
17 | the State by alternative retail electric suppliers | ||||||
18 | during such prior month that are subject to the | ||||||
19 | requirements of this paragraph (5) of subsection | ||||||
20 | (d) of this Section and subsection (d) of Section | ||||||
21 | 1-75 of the Illinois Power Agency Act plus the | ||||||
22 | total sales of electricity (expressed in | ||||||
23 | kilowatthours sold) by utilities outside of their | ||||||
24 | service areas during such prior month, pursuant to | ||||||
25 | subsection (c) of Section 16-116 of this Act; | ||||||
26 | (v) if, in any year after the first year of |
| |||||||
| |||||||
1 | commercial operation, the owner of the clean coal | ||||||
2 | facility fails to demonstrate to the Commission that | ||||||
3 | the initial clean coal facility captured and | ||||||
4 | sequestered at least 50% of the total carbon emissions | ||||||
5 | that the facility would otherwise emit or that | ||||||
6 | sequestration of emissions from prior years has | ||||||
7 | failed, resulting in the release of carbon into the | ||||||
8 | atmosphere, the owner of the facility must offset | ||||||
9 | excess emissions. Any such carbon offsets must be | ||||||
10 | permanent, additional, verifiable, real, located | ||||||
11 | within the State of Illinois, and legally and | ||||||
12 | practicably enforceable. The costs of any such offsets | ||||||
13 | that are not recoverable shall not exceed $15 million | ||||||
14 | in any given year. No costs of any such purchases of | ||||||
15 | carbon offsets may be recovered from an alternative | ||||||
16 | retail electric supplier or its customers. All carbon | ||||||
17 | offsets purchased for this purpose and any carbon | ||||||
18 | emission credits associated with sequestration of | ||||||
19 | carbon from the facility must be permanently retired. | ||||||
20 | The initial clean coal facility shall not forfeit its | ||||||
21 | designation as a clean coal facility if the facility | ||||||
22 | fails to fully comply with the applicable carbon | ||||||
23 | sequestration requirements in any given year, provided | ||||||
24 | the requisite offsets are purchased. However, the | ||||||
25 | Attorney General, on behalf of the People of the State | ||||||
26 | of Illinois, may specifically enforce the facility's |
| |||||||
| |||||||
1 | sequestration requirement and the other terms of this | ||||||
2 | contract provision. Compliance with the sequestration | ||||||
3 | requirements and offset purchase requirements that | ||||||
4 | apply to the initial clean coal facility shall be | ||||||
5 | reviewed annually by an independent expert retained by | ||||||
6 | the owner of the initial clean coal facility, with the | ||||||
7 | advance written approval of the Attorney General; | ||||||
8 | (vi) The Commission shall, after notice and | ||||||
9 | hearing, revoke the certification of any alternative | ||||||
10 | retail electric supplier that fails to execute a | ||||||
11 | sourcing agreement with the initial clean coal | ||||||
12 | facility as required by item (5) of subsection (d) of | ||||||
13 | this Section. The sourcing agreements with this | ||||||
14 | initial clean coal facility shall be subject to both | ||||||
15 | approval of the initial clean coal facility by the | ||||||
16 | General Assembly and satisfaction of the requirements | ||||||
17 | of item (4) of subsection (d) of Section 1-75 of the | ||||||
18 | Illinois Power Agency Act, and shall be executed within | ||||||
19 | 90 days after any such approval by the General | ||||||
20 | Assembly. The Commission shall not accept an | ||||||
21 | application for certification from an alternative | ||||||
22 | retail electric supplier that has lost certification | ||||||
23 | under this subsection (d), or any corporate affiliate | ||||||
24 | thereof, for at least one year from the date of | ||||||
25 | revocation;
| ||||||
26 | (6) With respect to an applicant that seeks to serve
|
| |||||||
| |||||||
1 | residential or small commercial retail customers, that
the | ||||||
2 | area to be served by the applicant and any
limitations it | ||||||
3 | proposes on the number of customers or
maximum amount of | ||||||
4 | load to be served meet the provisions
of Section 16-115A, | ||||||
5 | provided, that the Commission can
extend the time for | ||||||
6 | considering such a certificate
request by up to 90 days, | ||||||
7 | and can schedule hearings on
such a request;
| ||||||
8 | (7) That the applicant meets the requirements of | ||||||
9 | subsection (a) of Section
16-128; and
| ||||||
10 | (8) That the applicant will comply with all other
| ||||||
11 | applicable laws and regulations.
| ||||||
12 | (d-5) (Blank). The Commission shall, after notice and | ||||||
13 | hearing, revoke the certification of any alternative retail | ||||||
14 | electric supplier that fails to execute a sourcing agreement | ||||||
15 | with the initial clean coal facility, as required by item (5) | ||||||
16 | of subsection (d) of this Section. The sourcing agreements with | ||||||
17 | this initial clean coal facility shall be subject to both | ||||||
18 | approval of the initial clean coal facility by the General | ||||||
19 | Assembly and satisfaction of the requirements of paragraph (4) | ||||||
20 | of subsection (d) of Section 1-75 of the Illinois Power Agency | ||||||
21 | Act, and shall be executed within 90 days after any such | ||||||
22 | approval by the General Assembly. The Commission shall also | ||||||
23 | revoke the certification of any alternative retail electric | ||||||
24 | supplier that, on April 1, 2010 or on April 1 of any year | ||||||
25 | thereafter, fails to demonstrate that the electricity provided | ||||||
26 | to the alternative retail electricity supplier's Illinois |
| |||||||
| |||||||
1 | customers during the previous year was generated by renewable | ||||||
2 | energy resources and clean coal facilities in amounts at least | ||||||
3 | equal to the percentages set forth in subsections (c) and (d) | ||||||
4 | of Section 1-75 of the Illinois Power Agency Act, as limited by | ||||||
5 | subsection (d)(5)(iii) of this Section. The Commission shall | ||||||
6 | not accept an application for certification from an alternative | ||||||
7 | retail electric supplier that has lost certification under this | ||||||
8 | subsection (d-5), or any corporate affiliate thereof, for at | ||||||
9 | least one year from the date of revocation. | ||||||
10 | (e) A retail customer that owns a cogeneration or | ||||||
11 | self-generation facility
and that seeks certification only to
| ||||||
12 | provide electric power and energy from such facility to
retail | ||||||
13 | customers at separate locations which customers are
both (i) | ||||||
14 | owned by, or a subsidiary or other corporate
affiliate of, such | ||||||
15 | applicant and
(ii) eligible for delivery services, shall be | ||||||
16 | granted a
certificate of service authority upon filing an | ||||||
17 | application
and notifying the Commission that it has entered | ||||||
18 | into an
agreement with the relevant electric utilities pursuant | ||||||
19 | to
Section 16-118.
Provided, however, that if the retail | ||||||
20 | customer owning such cogeneration or
self-generation facility | ||||||
21 | would not be charged a transition charge due to the
exemption | ||||||
22 | provided under subsection (f) of Section 16-108 prior to the
| ||||||
23 | certification, and the retail customers at separate locations | ||||||
24 | are taking
delivery services in conjunction with purchasing | ||||||
25 | power and energy from the
facility, the retail customer on | ||||||
26 | whose premises the facility is located shall
not thereafter be |
| |||||||
| |||||||
1 | required to pay transition charges on the power and energy
that | ||||||
2 | such retail customer takes from the facility.
| ||||||
3 | (f) The Commission shall have the authority to
promulgate | ||||||
4 | rules and regulations to carry out the provisions
of this | ||||||
5 | Section. On or before May 1, 1999, the Commission
shall adopt a | ||||||
6 | rule or rules applicable to the certification of
those | ||||||
7 | alternative retail electric suppliers that seek to serve
only | ||||||
8 | nonresidential retail customers with maximum electrical
| ||||||
9 | demands of one megawatt or more which shall provide for (i)
| ||||||
10 | expedited and streamlined procedures
for certification of such | ||||||
11 | alternative
retail electric suppliers and (ii) specific | ||||||
12 | criteria which,
if met by any such alternative retail electric | ||||||
13 | supplier, shall
constitute the demonstration of technical, | ||||||
14 | financial and
managerial resources and abilities to provide | ||||||
15 | service required
by subsection (d) (1) of this Section, such as | ||||||
16 | a requirement
to post a bond or letter of credit, from a | ||||||
17 | responsible surety
or financial institution, of sufficient | ||||||
18 | size for the nature
and scope of the services to be provided; | ||||||
19 | demonstration of
adequate insurance for the scope and nature of | ||||||
20 | the services to
be provided; and experience in providing | ||||||
21 | similar services in
other jurisdictions.
| ||||||
22 | (Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09.)
| ||||||
23 | (220 ILCS 5/16-115D new) | ||||||
24 | Sec. 16-115D. Renewable portfolio standard for alternative | ||||||
25 | retail electric suppliers and electric utilities operating |
| |||||||
| |||||||
1 | outside their service territories. | ||||||
2 | (a) An alternative retail electric supplier shall be | ||||||
3 | responsible for procuring cost-effective renewable energy | ||||||
4 | resources as required under item (5) of subsection (d) of | ||||||
5 | Section 16-115 of this Act as outlined herein: | ||||||
6 | (1) The definition of renewable energy resources | ||||||
7 | contained in Section 1-10 of the Illinois Power Agency Act | ||||||
8 | applies to all renewable energy resources required to be | ||||||
9 | procured by alternative retail electric suppliers. | ||||||
10 | (2) The quantity of renewable energy resources shall be | ||||||
11 | measured as a percentage of the actual amount of metered | ||||||
12 | electricity (megawatt-hours) delivered by the alternative | ||||||
13 | retail electric supplier to Illinois retail customers | ||||||
14 | during the 12-month period June 1 through May 31, | ||||||
15 | commencing June 1, 2009, and the comparable 12-month period | ||||||
16 | in each year thereafter except as provided in item (6) of | ||||||
17 | this subsection (a). | ||||||
18 | (3) The quantity of renewable energy resources shall be | ||||||
19 | in amounts at least equal to the annual percentages set | ||||||
20 | forth in item (1) of subsection (c) of Section 1-75 of the | ||||||
21 | Illinois Power Agency Act. At least 60% of the renewable | ||||||
22 | energy resources procured pursuant to items (1) through (3) | ||||||
23 | of subsection (b) of this Section shall come from wind | ||||||
24 | generation and, starting June 1, 2015, at least 6% of the | ||||||
25 | renewable energy resources procured pursuant to items (1) | ||||||
26 | through (3) of subsection (b) of this Section shall come |
| |||||||
| |||||||
1 | from solar photovoltaics. If, in any given year, an | ||||||
2 | alternative retail electric supplier does not purchase at | ||||||
3 | least these levels of renewable energy resources, then the | ||||||
4 | alternative retail electric supplier shall make | ||||||
5 | alternative compliance payments, as described in | ||||||
6 | subsection (d) of this Section. | ||||||
7 | (4) The quantity and source of renewable energy | ||||||
8 | resources shall be independently verified through the PJM | ||||||
9 | Environmental Information System Generation Attribute | ||||||
10 | Tracking System (PJM-GATS) or the Midwest Renewable Energy | ||||||
11 | Tracking System (M-RETS), which shall document the | ||||||
12 | location of generation, resource type, month, and year of | ||||||
13 | generation for all qualifying renewable energy resources | ||||||
14 | that an alternative retail electric supplier uses to comply | ||||||
15 | with this Section. No later than June 1, 2009, the Illinois | ||||||
16 | Power Agency shall provide PJM-GATS, M-RETS, and | ||||||
17 | alternative retail electric suppliers with all information | ||||||
18 | necessary to identify resources located in Illinois, | ||||||
19 | within states that adjoin Illinois or within portions of | ||||||
20 | the PJM and MISO footprint in the United States that | ||||||
21 | qualify under the definition of renewable energy resources | ||||||
22 | in Section 1-10 of the Illinois Power Agency Act for | ||||||
23 | compliance with this Section 16-115D. Alternative retail | ||||||
24 | electric suppliers shall not be subject to the requirements | ||||||
25 | in item (3) of subsection (c) of Section 1-75 of the | ||||||
26 | Illinois Power Agency Act. |
| |||||||
| |||||||
1 | (5) All renewable energy credits used to comply with | ||||||
2 | this Section shall be permanently retired. | ||||||
3 | (6) The required procurement of renewable energy | ||||||
4 | resources by an alternative retail electric supplier shall | ||||||
5 | apply to all metered electricity delivered to Illinois | ||||||
6 | retail customers by the alternative retail electric | ||||||
7 | supplier pursuant to contracts executed or extended after | ||||||
8 | March 15, 2009. | ||||||
9 | (b) An alternative retail electric supplier shall comply | ||||||
10 | with the renewable energy portfolio standards by making an | ||||||
11 | alternative compliance payment, as described in subsection (d) | ||||||
12 | of this Section, to cover at least one-half of the alternative | ||||||
13 | retail electric supplier's compliance obligation and any one or | ||||||
14 | combination of the following means to cover the remainder of | ||||||
15 | the alternative retail electric supplier's compliance | ||||||
16 | obligation: | ||||||
17 | (1) Generating electricity using renewable energy | ||||||
18 | resources identified pursuant to item (4) of subsection (a) | ||||||
19 | of this Section. | ||||||
20 | (2) Purchasing electricity generated using renewable | ||||||
21 | energy resources identified pursuant to item (4) of | ||||||
22 | subsection (a) of this Section through an energy contract. | ||||||
23 | (3) Purchasing renewable energy credits from renewable | ||||||
24 | energy resources identified pursuant to item (4) of | ||||||
25 | subsection (a) of this Section. | ||||||
26 | (4) Making an alternative compliance payment as |
| |||||||
| |||||||
1 | described in subsection (d) of this Section. | ||||||
2 | (c) Use of renewable energy credits. | ||||||
3 | (1) Renewable energy credits that are not used by an | ||||||
4 | alternative retail electric supplier to comply with a | ||||||
5 | renewable portfolio standard in a compliance year may be | ||||||
6 | banked and carried forward up to 2 12-month compliance | ||||||
7 | periods after the compliance period in which the credit was | ||||||
8 | generated for the purpose of complying with a renewable | ||||||
9 | portfolio standard in those 2 subsequent compliance | ||||||
10 | periods. For the 2009-2010 and 2010-2011 compliance | ||||||
11 | periods, an alternative retail electric supplier may use | ||||||
12 | renewable credits generated after December 31, 2008 and | ||||||
13 | before June 1, 2009 to comply with this Section. | ||||||
14 | (2) An alternative retail electric supplier is | ||||||
15 | responsible for demonstrating that a renewable energy | ||||||
16 | credit used to comply with a renewable portfolio standard | ||||||
17 | is derived from a renewable energy resource and that the | ||||||
18 | alternative retail electric supplier has not used, traded, | ||||||
19 | sold, or otherwise transferred the credit. | ||||||
20 | (3) The same renewable energy credit may be used by an | ||||||
21 | alternative retail electric supplier to comply with a | ||||||
22 | federal renewable portfolio standard and a renewable | ||||||
23 | portfolio standard established under this Act. An | ||||||
24 | alternative retail electric supplier that uses a renewable | ||||||
25 | energy credit to comply with a renewable portfolio standard | ||||||
26 | imposed by any other state may not use the same credit to |
| |||||||
| |||||||
1 | comply with a renewable portfolio standard established | ||||||
2 | under this Act. | ||||||
3 | (d) Alternative compliance payments. | ||||||
4 | (1) The Commission shall establish and post on its | ||||||
5 | website, within 5 business days after entering an order | ||||||
6 | approving a procurement plan pursuant to Section 1-75 of | ||||||
7 | the Illinois Power Agency Act, maximum alternative | ||||||
8 | compliance payment rates, expressed on a per kilowatt-hour | ||||||
9 | basis, that will be applicable in the first compliance | ||||||
10 | period following the plan approval. A separate maximum | ||||||
11 | alternative compliance payment rate shall be established | ||||||
12 | for the service territory of each electric utility that is | ||||||
13 | subject to subsection (c) of Section 1-75 of the Illinois | ||||||
14 | Power Agency Act. Each maximum alternative compliance | ||||||
15 | payment rate shall be equal to the maximum allowable annual | ||||||
16 | estimated average net increase due to the costs of the | ||||||
17 | utility's purchase of renewable energy resources included | ||||||
18 | in the amounts paid by eligible retail customers in | ||||||
19 | connection with electric service, as described in item (2) | ||||||
20 | of subsection (c) of Section 1-75 of the Illinois Power | ||||||
21 | Agency Act for the compliance period, and as established in | ||||||
22 | the approved procurement plan. Following each procurement | ||||||
23 | event through which renewable energy resources are | ||||||
24 | purchased for one or more of these utilities for the | ||||||
25 | compliance period, the Commission shall establish and post | ||||||
26 | on its website estimates of the alternative compliance |
| |||||||
| |||||||
1 | payment rates, expressed on a per kilowatt-hour basis, that | ||||||
2 | shall apply for that compliance period. Posting of the | ||||||
3 | estimates shall occur no later than 10 business days | ||||||
4 | following the procurement event, however, the Commission | ||||||
5 | shall not be required to establish and post such estimates | ||||||
6 | more often than once per calendar month. By July 1 of each | ||||||
7 | year, the Commission shall establish and post on its | ||||||
8 | website the actual alternative compliance payment rates | ||||||
9 | for the preceding compliance year. Each alternative | ||||||
10 | compliance payment rate shall be equal to the total amount | ||||||
11 | of dollars for which the utility contracted to spend on | ||||||
12 | renewable resources for the compliance period divided by | ||||||
13 | the forecasted load of eligible retail customers, at the | ||||||
14 | customers' meters, as previously established in the | ||||||
15 | Commission-approved procurement plan for that compliance | ||||||
16 | year. The actual alternative compliance payment rates may | ||||||
17 | not exceed the maximum alternative compliance payment | ||||||
18 | rates established for the compliance period. For purposes | ||||||
19 | of this subsection (d), the term "eligible retail | ||||||
20 | customers" has the same meaning as found in Section | ||||||
21 | 16-111.5 of this Act. | ||||||
22 | (2) In any given compliance year, an alternative retail | ||||||
23 | electric supplier may elect to use alternative compliance | ||||||
24 | payments to comply with all or a part of the applicable | ||||||
25 | renewable portfolio standard. In the event that an | ||||||
26 | alternative retail electric supplier elects to make |
| |||||||
| |||||||
1 | alternative compliance payments to comply with all or a | ||||||
2 | part of the applicable renewable portfolio standard, such | ||||||
3 | payments shall be made by September 1, 2010 for the period | ||||||
4 | of June 1, 2009 to May 1, 2010 and by September 1 of each | ||||||
5 | year thereafter for the subsequent compliance period, in | ||||||
6 | the manner and form as determined by the Commission. Any | ||||||
7 | election by an alternative retail electric supplier to use | ||||||
8 | alternative compliance payments is subject to review by the | ||||||
9 | Commission under subsection (e) of this Section. | ||||||
10 | (3) An alternative retail electric supplier's | ||||||
11 | alternative compliance payments shall be computed | ||||||
12 | separately for each electric utility's service territory | ||||||
13 | within which the alternative retail electric supplier | ||||||
14 | provided retail service during the compliance period, | ||||||
15 | provided that the electric utility was subject to | ||||||
16 | subsection (c) of Section 1-75 of the Illinois Power Agency | ||||||
17 | Act. For each service territory, the alternative retail | ||||||
18 | electric supplier's alternative compliance payment shall | ||||||
19 | be equal to (i) the actual alternative compliance payment | ||||||
20 | rate established in item (1) of this subsection (d), | ||||||
21 | multiplied by (ii) the actual amount of metered electricity | ||||||
22 | delivered by the alternative retail electric supplier to | ||||||
23 | retail customers within the service territory during the | ||||||
24 | compliance period, multiplied by (iii) the result of one | ||||||
25 | minus the ratios of the quantity of renewable energy | ||||||
26 | resources used by the alternative retail electric supplier |
| |||||||
| |||||||
1 | to comply with the requirements of this Section within the | ||||||
2 | service territory to the product of the percentage of | ||||||
3 | renewable energy resources required under item (3) of | ||||||
4 | subsection (a) of this Section and the actual amount of | ||||||
5 | metered electricity delivered by the alternative retail | ||||||
6 | electric supplier to retail customers within the service | ||||||
7 | territory during the compliance period. | ||||||
8 | (4) All alternative compliance payments by alternative | ||||||
9 | retail electric suppliers shall be deposited in the | ||||||
10 | Illinois Power Agency Renewable Energy Resources Fund and | ||||||
11 | used to purchase renewable energy credits, in accordance | ||||||
12 | with Section 1-56 of the Illinois Power Agency Act. | ||||||
13 | (5) The Commission, in consultation with the Illinois | ||||||
14 | Power Agency, shall establish a process or proceeding to | ||||||
15 | consider the impact of a federal renewable portfolio | ||||||
16 | standard, if enacted, on the operation of the alternative | ||||||
17 | compliance mechanism, which shall include, but not be | ||||||
18 | limited to, developing, to the extent permitted by the | ||||||
19 | applicable federal statute, an appropriate methodology to | ||||||
20 | apportion renewable energy credits retired as a result of | ||||||
21 | alternative compliance payments made in accordance with | ||||||
22 | this Section. The Commission shall commence any such | ||||||
23 | process or proceeding within 35 days after enactment of a | ||||||
24 | federal renewable portfolio standard. | ||||||
25 | (e) Each alternative retail electric supplier shall, by | ||||||
26 | September 1, 2010 and by September 1 of each year thereafter, |
| |||||||
| |||||||
1 | prepare and submit to the Commission a report, in a format to | ||||||
2 | be specified by the Commission on or before December 31, 2009, | ||||||
3 | that provides information certifying compliance by the | ||||||
4 | alternative retail electric supplier with this Section, | ||||||
5 | including copies of all PJM-GATS and M-RETS reports, and | ||||||
6 | documentation relating to banking, retiring renewable energy | ||||||
7 | credits, and any other information that the Commission | ||||||
8 | determines necessary to ensure compliance with this Section. An | ||||||
9 | alternative retail electric supplier may file commercially or | ||||||
10 | financially sensitive information or trade secrets with the | ||||||
11 | Commission as provided under the rules of the Commission. To be | ||||||
12 | filed confidentially, the information shall be accompanied by | ||||||
13 | an affidavit that sets forth both the reasons for the | ||||||
14 | confidentiality and a public synopsis of the information. | ||||||
15 | (f) The Commission may initiate a contested case to review | ||||||
16 | allegations that the alternative retail electric supplier has | ||||||
17 | violated this Section, including an order issued or rule | ||||||
18 | promulgated under this Section. In any such proceeding, the | ||||||
19 | alternative retail electric supplier shall have the burden of | ||||||
20 | proof. If the Commission finds, after notice and hearing, that | ||||||
21 | an alternative retail electric supplier has violated this | ||||||
22 | Section, then the Commission shall issue an order requiring the | ||||||
23 | alternative retail electric supplier to: | ||||||
24 | (1) immediately comply with this Section; and | ||||||
25 | (2) if the violation involves a failure to procure the | ||||||
26 | requisite quantity of renewable energy resources or pay the |
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1 | applicable alternative compliance payment by the annual | ||||||
2 | deadline, the Commission shall require the alternative retail | ||||||
3 | electric supplier to double the applicable alternative | ||||||
4 | compliance payment that would otherwise be required to bring | ||||||
5 | the alternative retail electric supplier into compliance with | ||||||
6 | this Section. | ||||||
7 | If an alternative retail electric supplier fails to comply | ||||||
8 | with the renewable energy resource portfolio requirement in | ||||||
9 | this Section more than once in a 5-year period, then the | ||||||
10 | Commission shall revoke the alternative electric supplier's | ||||||
11 | certificate of service authority. The Commission shall not | ||||||
12 | accept an application for a certificate of service authority | ||||||
13 | from an alternative retail electric supplier that has lost | ||||||
14 | certification under this subsection (f), or any corporate | ||||||
15 | affiliate thereof, for at least one year after the date of | ||||||
16 | revocation. | ||||||
17 | (g) All of the provisions of this Section apply to electric | ||||||
18 | utilities operating outside their service area except under | ||||||
19 | item (2) of subsection (a) of this Section the quantity of | ||||||
20 | renewable energy resources shall be measured as a percentage of | ||||||
21 | the actual amount of electricity (megawatt-hours) supplied in | ||||||
22 | the State outside of the utility's service territory during the | ||||||
23 | 12-month period June 1 through May 31, commencing June 1, 2009, | ||||||
24 | and the comparable 12-month period in each year thereafter | ||||||
25 | except as provided in item (6) of subsection (a) of this | ||||||
26 | Section. |
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1 | If any such utility fails to procure the requisite quantity | ||||||
2 | of renewable energy resources by the annual deadline, then the | ||||||
3 | Commission shall require the utility to double the alternative | ||||||
4 | compliance payment that would otherwise be required to bring | ||||||
5 | the utility into compliance with this Section. | ||||||
6 | If any such utility fails to comply with the renewable | ||||||
7 | energy resource portfolio requirement in this Section more than | ||||||
8 | once in a 5-year period, then the Commission shall order the | ||||||
9 | utility to cease all sales outside of the utility's service | ||||||
10 | territory for a period of at least one year.
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11 | Section 95. No acceleration or delay. Where this Act makes | ||||||
12 | changes in a statute that is represented in this Act by text | ||||||
13 | that is not yet or no longer in effect (for example, a Section | ||||||
14 | represented by multiple versions), the use of that text does | ||||||
15 | not accelerate or delay the taking effect of (i) the changes | ||||||
16 | made by this Act or (ii) provisions derived from any other | ||||||
17 | Public Act.
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.
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