Bill Text: IL SB3292 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Creates the Downstate Illinois Competitive Generation Procurement and Reliability Security Act of 2018 with legislative findings. Provides for the establishment and implementation of an Illinois-specific process for securing electric generation resource adequacy and stable pricing for electric capacity within Midcontinent Independent System Operator, Inc., (MISO) Zone 4. Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to meet the capacity requirements of the retail customers of electric utilities that serve less than 3,000,000 retail customers, but more than 500,000 retail customers in this State. Requires the Agency's Planning and Procurement Bureau to develop plans and processes and conduct competitive procurement processes for the procurement of capacity needed to meet the capacity requirements of the retail customers of electric utilities that serve less than 3,000,000 retail customers, but more than 500,000 retail customers in this State. Modifies the calculation of the projected capacity price for delivering energy under the Act. Amends the Public Utilities Act to make changes regarding capacity procurement and delivery of energy by the Illinois Power Agency and the Illinois Commerce Commission. Makes conforming changes. Defines terms. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Failed) 2019-01-09 - Session Sine Die [SB3292 Detail]

Download: Illinois-2017-SB3292-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB3292 Introduced 2/15/2018, by Sen. James F. Clayborne, Jr. SYNOPSIS AS INTRODUCED:
20 ILCS 3855/1-20
20 ILCS 3855/1-75
220 ILCS 5/16-111.5
220 ILCS 5/16-115A
Creates the Downstate Illinois Competitive Generation Procurement and Reliability Security Act of 2018 with legislative findings. Provides for the establishment and implementation of an Illinois-specific process for securing electric generation resource adequacy and stable pricing for electric capacity within Midcontinent Independent System Operator, Inc., (MISO) Zone 4. Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to meet the capacity requirements of the retail customers of electric utilities that serve less than 3,000,000 retail customers, but more than 500,000 retail customers in this State. Requires the Agency's Planning and Procurement Bureau to develop plans and processes and conduct competitive procurement processes for the procurement of capacity needed to meet the capacity requirements of the retail customers of electric utilities that serve less than 3,000,000 retail customers, but more than 500,000 retail customers in this State. Modifies the calculation of the projected capacity price for delivering energy under the Act. Amends the Public Utilities Act to make changes regarding capacity procurement and delivery of energy by the Illinois Power Agency and the Illinois Commerce Commission. Makes conforming changes. Defines terms. Effective immediately.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be referred to as the
Downstate Illinois Competitive Generation Procurement and
Reliability Security Act of 2018.
Section 5. Legislative findings. The General Assembly
finds and declares:
(1) The overall objectives of regulation of the electric
utility industry in this State, as expressed by the General
Assembly in the Illinois Power Agency Act and the Public
Utilities Act, include the provision of adequate, efficient,
reliable, environmentally safe, and least-cost utility
services at prices which accurately reflect the long-term cost
of such services and which are equitable to all citizens.
(2) Through previous enactments beginning in 1997, the
General Assembly has promoted the use of market-based
solutions, in combination with adequate regulatory oversight,
to achieve the objectives of adequate, efficient, reliable,
environmentally safe and least-cost utility services at prices
which accurately reflect the long-term cost of such services
and which are equitable to all citizens.
(3) To a significant extent, electricity, when generated,

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cannot be stored for future use. Rather, for the most part,
electricity must be generated instantaneously at the time and
in the amount that it is demanded by consumers. This requires
that there be sufficient generating capacity available and
ready to produce electricity to meet the demands of consumers
within each load zone in this State, 24 hours per day, 7 days
per week, on every day of the year. Reliable electric service
at all times is essential to the functioning of a modern
economy and of society in general. The health, welfare, and
prosperity of Illinois citizens, including the attractiveness
of the State of Illinois to business and industry, requires the
availability of sufficient electric generating capacity to
meet the demands of consumers and businesses in this State at
all times.
(4) Consistent with the overall objectives of the
regulation of the electric utility industry in this State,
regulation should ensure that sufficient generating capacity
resources are available on a long-term basis to enable the
electric utility grid to meet the demands of Illinois
electricity consumers at all times.
(5) The Midcontinent Independent System Operator, Inc., or
MISO, has been established under federal authority as the
operator of the electric transmission grid serving
substantially all of the portion of the State of Illinois
located south of, and some portions located north of,
Interstate Highway 80, which area is sometimes referred to as

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MISO Zone 4. Overall, MISO's geographic footprint and
responsibilities as operator of the electric transmission grid
covers numerous states and multiple load zones. As part of its
responsibilities, MISO imposes requirements on load-serving
entities serving electricity consumers in each of MISO's load
zones for the purpose of ensuring that the load-serving
entities have access to sufficient electrical generating
capacity to meet the demands of their customers at all times.
MISO conducts competitive auctions for the procurement of
capacity for each of MISO's load zones, which result in the
establishment of indicative prices for capacity in each load
zone.
(6) All but one of the other MISO load zones in other
states are unlike Illinois in that electric service in those
states is provided by vertically integrated electric utilities
that are subject to traditional cost-based regulation by a
state utility commission, and there is not a competitive retail
electricity market in which consumers are allowed to choose
their electricity suppliers. The processes used by MISO to
procure and price electric generating capacity in load zones
located in these other states are not suitable for Illinois,
which has a competitive retail electricity market and in which
the major electric utilities no longer own electric generating
facilities, but obtain electric capacity to meet their
requirements through competitive wholesale electricity
markets.

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(7) Prices for electric generating capacity resulting from
MISO's capacity auctions for Zone 4 have not been stable, but
have fluctuated significantly in recent years, from a high of
$150 per megawatt-day in 2015 to a low of $1.50 per
megawatt-day in 2017. Electric capacity prices that fluctuate
dramatically, by a factor of 100 to one nearly year to year,
result in retail electricity prices that impose uncertainty,
disruption, and potential hardships on consumers and
businesses in Illinois.
(8) Further, the prices for electric generating capacity in
MISO Zone 4 resulting from several of MISO's recent capacity
auctions have not been sufficient to incentivize the
development of new electric generating capacity resources that
will be committed to serve the demands of electricity consumers
in Zone 4 over the long run, and in fact, have not been
sufficient to enable some electric generating facilities
located within Zone 4 to remain in operation. Electric
generating facilities are long-lived facilities requiring
substantial capital investments. Long-term pricing stability,
at levels sufficient to support the substantial capital
investment, is necessary to encourage the development of new
electric generating facilities and to enable existing electric
generating facilities to remain in operation.
(9) Since 2015, electric generating facilities located in
Illinois within Zone 4 with generating capacity, in the
aggregate, of more than 1,100 megawatts have been permanently

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retired so that this capacity is no longer available to serve
the demands of Illinois electricity consumers. In this same
period, additional electric generating facilities with
capacity of 600 megawatts have been placed into "mothballed"
status so that this capacity presently is not available to
serve the needs of Illinois electricity consumers. It is
estimated that additional electric generating facilities
located in Illinois within Zone 4 with generating capacity, in
the aggregate, of at least 3,000 megawatts is currently at risk
of retirement in light of low prices for electric generating
capacity prevailing in Zone 4.
(10) MISO has advised the Governor of the State of Illinois
and the leadership of the General Assembly that MISO prefers
state-based solutions to achieving resource adequacy and
ensuring that sufficient electric resources continue to be
available in downstate Illinois to maintain reliable service
for consumers at times of peak electricity demand, and that
additional action is needed in downstate Illinois to maintain
reliability of electric service. MISO has further stated that
without further action to develop an Illinois-based solution
for long term adequacy of electric capacity resources in
downstate Illinois, the outlook for reliable electric service
in downstate Illinois is unclear and uncertain from year to
year.
(11) Consistent with MISO's recommendations, there is a
need to establish an Illinois-specific process for procuring

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electric capacity to meet the needs of electricity consumers in
MISO Zone 4 that are served by Illinois electric utilities and
alternative retail electric suppliers. Such a process should
(i) be consistent to the extent feasible with existing
processes of MISO; (ii) rely to the extent feasible on
competitive market-based approaches; (iii) provide for the
procurement of electric generating capacity, to the maximum
extent feasible, on a long-term forward basis of at least 3
years, rather than on a shorter-term basis, in order to provide
incentives for the development of new electric generating
facilities and the retention of existing electric generating
facilities that are and will be committed to serving the
electricity requirements of electricity consumers within MISO
Zone 4 in Illinois; (iv) be open to all forms of electric
generating capacity that meet MISO's operational and
availability requirements; and (v) be administered and
overseen by the Illinois Power Agency and the Illinois Commerce
Commission.
(12) The General Assembly therefore finds and declares that
it is necessary for the health, welfare, and prosperity of the
citizens and businesses of Illinois located within the portion
of Illinois encompassed by MISO Zone 4, to establish and
implement an Illinois-specific process for securing electric
generation resource adequacy and stable pricing for electric
capacity within MISO Zone 4, through the adoption of this Act.

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Section 10. The Illinois Power Agency Act is amended by
changing Sections 1-20 and 1-75 as follows:
(20 ILCS 3855/1-20)
Sec. 1-20. General powers of the Agency.
(a) The Agency is authorized to do each of the following:
(1) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (A) on December 31, 2005 served
less than 100,000 customers in Illinois and (B) request a
procurement plan for their Illinois jurisdictional load.
Except as provided in paragraph (1.5) of this subsection
(a), the electricity procurement plans shall be updated on
an annual basis and shall include electricity generated
from renewable resources sufficient to achieve the
standards specified in this Act. Beginning with the
delivery year commencing June 1, 2017, develop procurement
plans to include zero emission credits generated from zero
emission facilities sufficient to achieve the standards
specified in this Act.
(1.5) Develop a long-term renewable resources

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procurement plan in accordance with subsection (c) of
Section 1-75 of this Act for renewable energy credits in
amounts sufficient to achieve the standards specified in
this Act for delivery years commencing June 1, 2017 and for
the programs and renewable energy credits specified in
Section 1-56 of this Act. Electricity procurement plans for
delivery years commencing after May 31, 2017, shall not
include procurement of renewable energy resources.
(2) Conduct competitive procurement processes to
procure the supply resources identified in the electricity
procurement plan, pursuant to Section 16-111.5 of the
Public Utilities Act, and, for the delivery year commencing
June 1, 2017, conduct procurement processes to procure zero
emission credits from zero emission facilities, under
subsection (d-5) of Section 1-75 of this Act.
(2.5) Beginning with the procurement for the 2017
delivery year, conduct competitive procurement processes
and implement programs to procure renewable energy credits
identified in the long-term renewable resources
procurement plan developed and approved under subsection
(c) of Section 1-75 of this Act and Section 16-111.5 of the
Public Utilities Act.
(2.10) Beginning with the procurement for the delivery
year commencing June 1, 2019, develop capacity procurement
plans and conduct competitive procurement processes for
the procurement of capacity needed to ensure long-term

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resource adequacy at the lowest cost over time, taking into
account the benefits of price stability and the need to
ensure the reliability, adequacy, and resilience of the
bulk power generation and delivery system in the Applicable
Local Resource Zone, as defined in Section 1-75 of this
Act, to meet the capacity requirements of the retail
customers of electric utilities that serve less than
3,000,000 retail customers, but more than 500,000 retail
customers in this State.
(3) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(4) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(b) Except as otherwise limited by this Act, the Agency has
all of the powers necessary or convenient to carry out the
purposes and provisions of this Act, including without
limitation, each of the following:
(1) To have a corporate seal, and to alter that seal at
pleasure, and to use it by causing it or a facsimile to be
affixed or impressed or reproduced in any other manner.
(2) To use the services of the Illinois Finance
Authority necessary to carry out the Agency's purposes.

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(3) To negotiate and enter into loan agreements and
other agreements with the Illinois Finance Authority.
(4) To obtain and employ personnel and hire consultants
that are necessary to fulfill the Agency's purposes, and to
make expenditures for that purpose within the
appropriations for that purpose.
(5) To purchase, receive, take by grant, gift, devise,
bequest, or otherwise, lease, or otherwise acquire, own,
hold, improve, employ, use, and otherwise deal in and with,
real or personal property whether tangible or intangible,
or any interest therein, within the State.
(6) To acquire real or personal property, whether
tangible or intangible, including without limitation
property rights, interests in property, franchises,
obligations, contracts, and debt and equity securities,
and to do so by the exercise of the power of eminent domain
in accordance with Section 1-21; except that any real
property acquired by the exercise of the power of eminent
domain must be located within the State.
(7) To sell, convey, lease, exchange, transfer,
abandon, or otherwise dispose of, or mortgage, pledge, or
create a security interest in, any of its assets,
properties, or any interest therein, wherever situated.
(8) To purchase, take, receive, subscribe for, or
otherwise acquire, hold, make a tender offer for, vote,
employ, sell, lend, lease, exchange, transfer, or

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otherwise dispose of, mortgage, pledge, or grant a security
interest in, use, and otherwise deal in and with, bonds and
other obligations, shares, or other securities (or
interests therein) issued by others, whether engaged in a
similar or different business or activity.
(9) To make and execute agreements, contracts, and
other instruments necessary or convenient in the exercise
of the powers and functions of the Agency under this Act,
including contracts with any person, including personal
service contracts, or with any local government, State
agency, or other entity; and all State agencies and all
local governments are authorized to enter into and do all
things necessary to perform any such agreement, contract,
or other instrument with the Agency. No such agreement,
contract, or other instrument shall exceed 40 years.
(10) To lend money, invest and reinvest its funds in
accordance with the Public Funds Investment Act, and take
and hold real and personal property as security for the
payment of funds loaned or invested.
(11) To borrow money at such rate or rates of interest
as the Agency may determine, issue its notes, bonds, or
other obligations to evidence that indebtedness, and
secure any of its obligations by mortgage or pledge of its
real or personal property, machinery, equipment,
structures, fixtures, inventories, revenues, grants, and
other funds as provided or any interest therein, wherever

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situated.
(12) To enter into agreements with the Illinois Finance
Authority to issue bonds whether or not the income
therefrom is exempt from federal taxation.
(13) To procure insurance against any loss in
connection with its properties or operations in such amount
or amounts and from such insurers, including the federal
government, as it may deem necessary or desirable, and to
pay any premiums therefor.
(14) To negotiate and enter into agreements with
trustees or receivers appointed by United States
bankruptcy courts or federal district courts or in other
proceedings involving adjustment of debts and authorize
proceedings involving adjustment of debts and authorize
legal counsel for the Agency to appear in any such
proceedings.
(15) To file a petition under Chapter 9 of Title 11 of
the United States Bankruptcy Code or take other similar
action for the adjustment of its debts.
(16) To enter into management agreements for the
operation of any of the property or facilities owned by the
Agency.
(17) To enter into an agreement to transfer and to
transfer any land, facilities, fixtures, or equipment of
the Agency to one or more municipal electric systems,
governmental aggregators, or rural electric agencies or

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cooperatives, for such consideration and upon such terms as
the Agency may determine to be in the best interest of the
citizens of Illinois.
(18) To enter upon any lands and within any building
whenever in its judgment it may be necessary for the
purpose of making surveys and examinations to accomplish
any purpose authorized by this Act.
(19) To maintain an office or offices at such place or
places in the State as it may determine.
(20) To request information, and to make any inquiry,
investigation, survey, or study that the Agency may deem
necessary to enable it effectively to carry out the
provisions of this Act.
(21) To accept and expend appropriations.
(22) To engage in any activity or operation that is
incidental to and in furtherance of efficient operation to
accomplish the Agency's purposes, including hiring
employees that the Director deems essential for the
operations of the Agency.
(23) To adopt, revise, amend, and repeal rules with
respect to its operations, properties, and facilities as
may be necessary or convenient to carry out the purposes of
this Act, subject to the provisions of the Illinois
Administrative Procedure Act and Sections 1-22 and 1-35 of
this Act.
(24) To establish and collect charges and fees as

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described in this Act.
(25) To conduct competitive gasification feedstock
procurement processes to procure the feedstocks for the
clean coal SNG brownfield facility in accordance with the
requirements of Section 1-78 of this Act.
(26) To review, revise, and approve sourcing
agreements and mediate and resolve disputes between gas
utilities and the clean coal SNG brownfield facility
pursuant to subsection (h-1) of Section 9-220 of the Public
Utilities Act.
(27) To request, review and accept proposals, execute
contracts, purchase renewable energy credits and otherwise
dedicate funds from the Illinois Power Agency Renewable
Energy Resources Fund to create and carry out the
objectives of the Illinois Solar for All program in
accordance with Section 1-56 of this Act.
(Source: P.A. 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-75)
Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act

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for the eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least 100,000
customers in Illinois. Beginning with the delivery year
commencing on June 1, 2017, the Planning and Procurement Bureau
shall develop plans and processes for the procurement of zero
emission credits from zero emission facilities in accordance
with the requirements of subsection (d-5) of this Section. The
Planning and Procurement Bureau shall also develop procurement
plans and conduct competitive procurement processes in
accordance with the requirements of Section 16-111.5 of the
Public Utilities Act for the eligible retail customers of small
multi-jurisdictional electric utilities that (i) on December
31, 2005 served less than 100,000 customers in Illinois and
(ii) request a procurement plan for their Illinois
jurisdictional load. This Section shall not apply to a small
multi-jurisdictional utility until such time as a small
multi-jurisdictional utility requests the Agency to prepare a
procurement plan for their Illinois jurisdictional load. For
the purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public

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Utilities Act, and shall instead develop a long-term renewable
resources procurement plan in accordance with subsection (c) of
this Section and Section 16-111.5 of the Public Utilities Act.
Beginning with the procurement for the delivery year
commencing June 1, 2019, the Planning and Procurement Bureau
shall for each year develop plans and processes for and conduct
competitive procurement processes in accordance with
subsection (b-5) of Section 16-111.5 of the Public Utilities
Act and paragraph (2.10) of subsection (a) of Section 1-20 of
this Act, the results of which shall be subject to approval of
the Commission in accordance with subsection (f) of Section
16-111.5 of the Public Utilities Act, for the procurement of
capacity needed to meet the capacity requirements of the retail
customers of electric utilities that serve less than 3,000,000
retail customers, but more than 500,000 retail customers in
this State and are located in the Applicable Local Resource
Zone of the Midcontinent Independent System Operator, Inc., or
its successor. For purposes of this Section, "Local Resource
Zone" shall have the meaning set forth in the open access
transmission and energy markets tariff of the Midcontinent
Independent System Operator, Inc., or its successor, as such
tariff may be updated from time to time, and "Applicable Local
Resource Zone" means the Local Resource Zone or Zones within
the Midcontinent Independent System Operator, that incorporate
all retail customers of electric utilities that serve less than
3,000,000 retail customers, but more than 500,000 retail

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

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

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consideration to develop the procurement plans and to serve
as the procurement administrator. The Agency shall also
provide each qualified expert's or expert consulting
firm's response to the request for qualifications. All
information provided under this subparagraph shall also be
provided to the Commission. The Agency may provide by rule
for fees associated with supplying the information to
utilities and other interested parties. These parties
shall, within 5 business days, notify the Agency in writing
if they object to any experts or expert consulting firms on
the lists. Objections shall be based on:
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest; or
(C) evidence of inappropriate bias for or against
potential bidders or the affected utilities.
The Agency shall remove experts or expert consulting
firms from the lists within 10 days if there is a
reasonable basis for an objection and provide the updated
lists to the affected utilities and other interested
parties. If the Agency fails to remove an expert or expert
consulting firm from a list, an objecting party may seek
review by the Commission within 5 days thereafter by filing
a petition, and the Commission shall render a ruling on the
petition within 10 days. There is no right of appeal of the
Commission's ruling.
(4) The Agency shall issue requests for proposals to

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the qualified experts or expert consulting firms to develop
a procurement plan for the affected utilities and to serve
as procurement administrator.
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on the
proposals submitted and shall award contracts of up to 5
years to those selected.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to serve
as procurement administrator based on the proposals
submitted. If the Commission rejects, within 5 days, the
Agency's selection, the Agency shall submit another
recommendation within 3 days based on the proposals
submitted. The Agency shall award a 5-year contract to the
expert or expert consulting firm so selected with
Commission approval.
(b) The experts or expert consulting firms retained by the
Agency shall, as appropriate, prepare procurement plans, and
conduct a competitive procurement process as prescribed in
Section 16-111.5 of the Public Utilities Act, to ensure
adequate, reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability, for
eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least 100,000
customers in the State of Illinois, and for eligible Illinois

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retail customers of small multi-jurisdictional electric
utilities that (i) on December 31, 2005 served less than
100,000 customers in Illinois and (ii) request a procurement
plan for their Illinois jurisdictional load.
(c) Renewable portfolio standard.
(1)(A) The Agency shall develop a long-term renewable
resources procurement plan that shall include procurement
programs and competitive procurement events necessary to
meet the goals set forth in this subsection (c). The
initial long-term renewable resources procurement plan
shall be released for comment no later than 160 days after
June 1, 2017 (the effective date of Public Act 99-906) this
amendatory Act of the 99th General Assembly. The Agency
shall review, and may revise on an expedited basis, the
long-term renewable resources procurement plan at least
every 2 years, which shall be conducted in conjunction with
the procurement plan under Section 16-111.5 of the Public
Utilities Act to the extent practicable to minimize
administrative expense. The long-term renewable resources
procurement plans shall be subject to review and approval
by the Commission under Section 16-111.5 of the Public
Utilities Act.
(B) Subject to subparagraph (F) of this paragraph (1),
the long-term renewable resources procurement plan shall
include the goals for procurement of renewable energy
credits to meet at least the following overall percentages:

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13% by the 2017 delivery year; increasing by at least 1.5%
each delivery year thereafter to at least 25% by the 2025
delivery year; and continuing at no less than 25% for each
delivery year thereafter. In the event of a conflict
between these goals and the new wind and new photovoltaic
procurement requirements described in items (i) through
(iii) of subparagraph (C) of this paragraph (1), the
long-term plan shall prioritize compliance with the new
wind and new photovoltaic procurement requirements
described in items (i) through (iii) of subparagraph (C) of
this paragraph (1) over the annual percentage targets
described in this subparagraph (B).
For the delivery year beginning June 1, 2017, the
procurement plan shall include cost-effective renewable
energy resources equal to at least 13% of each utility's
load for eligible retail customers and 13% of the
applicable portion of each utility's load for retail
customers who are not eligible retail customers, which
applicable portion shall equal 50% of the utility's load
for retail customers who are not eligible retail customers
on February 28, 2017.
For the delivery year beginning June 1, 2018, the
procurement plan shall include cost-effective renewable
energy resources equal to at least 14.5% of each utility's
load for eligible retail customers and 14.5% of the
applicable portion of each utility's load for retail

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customers who are not eligible retail customers, which
applicable portion shall equal 75% of the utility's load
for retail customers who are not eligible retail customers
on February 28, 2017.
For the delivery year beginning June 1, 2019, and for
each year thereafter, the procurement plans shall include
cost-effective renewable energy resources equal to a
minimum percentage of each utility's load for all retail
customers as follows: 16% by June 1, 2019; increasing by
1.5% each year thereafter to 25% by June 1, 2025; and 25%
by June 1, 2026 and each year thereafter.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery
year under existing contracts. Any renewable energy
credits under existing contracts, including renewable
energy credits as part of renewable energy resources, shall
be used to meet the goals set forth in this subsection (c)
for the delivery year.
(C) Of the renewable energy credits procured under this
subsection (c), at least 75% shall come from wind and
photovoltaic projects. The long-term renewable resources
procurement plan described in subparagraph (A) of this
paragraph (1) shall include the procurement of renewable
energy credits in amounts equal to at least the following:
(i) By the end of the 2020 delivery year:
At least 2,000,000 renewable energy credits

SB3292 - 24 - LRB100 20042 SMS 35324 b
for each delivery year shall come from new wind
projects; and
At least 2,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
generation devices or community renewable
generation projects; at least 40% from
utility-scale solar projects; at least 2% from
brownfield site photovoltaic projects that are not
community renewable generation projects; and the
remainder shall be determined through the
long-term planning process described in
subparagraph (A) of this paragraph (1).
(ii) By the end of the 2025 delivery year:
At least 3,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 3,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using

SB3292 - 25 - LRB100 20042 SMS 35324 b
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
devices or community renewable generation
projects; at least 40% from utility-scale solar
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
(iii) By the end of the 2030 delivery year:
At least 4,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 4,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
devices or community renewable generation
projects; at least 40% from utility-scale solar
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder

SB3292 - 26 - LRB100 20042 SMS 35324 b
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
For purposes of this Section:
"New wind projects" means wind renewable
energy facilities that are energized after June 1,
2017 for the delivery year commencing June 1, 2017
or within 3 years after the date the Commission
approves contracts for subsequent delivery years.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized
after June 1, 2017. Photovoltaic projects
developed under Section 1-56 of this Act shall not
apply towards the new photovoltaic project
requirements in this subparagraph (C).
(D) Renewable energy credits shall be cost effective.
For purposes of this subsection (c), "cost effective" means
that the costs of procuring renewable energy resources do
not cause the limit stated in subparagraph (E) of this
paragraph (1) to be exceeded and, for renewable energy
credits procured through a competitive procurement event,
do not exceed benchmarks based on market prices for like
products in the region. For purposes of this subsection
(c), "like products" means contracts for renewable energy
credits from the same or substantially similar technology,
same or substantially similar vintage (new or existing),

SB3292 - 27 - LRB100 20042 SMS 35324 b
the same or substantially similar quantity, and the same or
substantially similar contract length and structure.
Benchmarks shall be developed by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval. If price
benchmarks for like products in the region are not
available, the procurement administrator shall establish
price benchmarks based on publicly available data on
regional technology costs and expected current and future
regional energy prices. The benchmarks in this Section
shall not be used to curtail or otherwise reduce
contractual obligations entered into by or through the
Agency prior to June 1, 2017 (the effective date of Public
Act 99-906) this amendatory Act of the 99th General
Assembly.
(E) For purposes of this subsection (c), the required
procurement of cost-effective renewable energy resources
for a particular year commencing prior to June 1, 2017
shall be measured as a percentage of the actual amount of
electricity (megawatt-hours) supplied by the electric
utility to eligible retail customers in the delivery year
ending immediately prior to the procurement, and, for
delivery years commencing on and after June 1, 2017, the
required procurement of cost-effective renewable energy
resources for a particular year shall be measured as a

SB3292 - 28 - LRB100 20042 SMS 35324 b
percentage of the actual amount of electricity
(megawatt-hours) delivered by the electric utility in the
delivery year ending immediately prior to the procurement,
to all retail customers in its service territory. For
purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For purposes
of this subsection (c), the total amount paid for electric
service includes without limitation amounts paid for
supply, transmission, distribution, surcharges, and add-on
taxes.
Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured under
the procurement plan for any single year shall be subject
to the limitations of this subparagraph (E). Such
procurement shall be reduced for all retail customers based
on the amount necessary to limit the annual estimated
average net increase due to the costs of these resources
included in the amounts paid by eligible retail customers
in connection with electric service to no more than the
greater of 2.015% of the amount paid per kilowatthour by
those customers during the year ending May 31, 2007 or the
incremental amount per kilowatthour paid for these
resources in 2011. To arrive at a maximum dollar amount of
renewable energy resources to be procured for the
particular delivery year, the resulting per kilowatthour

SB3292 - 29 - LRB100 20042 SMS 35324 b
amount shall be applied to the actual amount of
kilowatthours of electricity delivered, or applicable
portion of such amount as specified in paragraph (1) of
this subsection (c), as applicable, by the electric utility
in the delivery year immediately prior to the procurement
to all retail customers in its service territory. The
calculations required by this subparagraph (E) shall be
made only once for each delivery year at the time that the
renewable energy resources are procured. Once the
determination as to the amount of renewable energy
resources to procure is made based on the calculations set
forth in this subparagraph (E) and the contracts procuring
those amounts are executed, no subsequent rate impact
determinations shall be made and no adjustments to those
contract amounts shall be allowed. All costs incurred under
such contracts shall be fully recoverable by the electric
utility as provided in this Section.
(F) If the limitation on the amount of renewable energy
resources procured in subparagraph (E) of this paragraph
(1) prevents the Agency from meeting all of the goals in
this subsection (c), the Agency's long-term plan shall
prioritize compliance with the requirements of this
subsection (c) regarding renewable energy credits in the
following order:
(i) renewable energy credits under existing
contractual obligations;

SB3292 - 30 - LRB100 20042 SMS 35324 b
(i-5) funding for the Illinois Solar for All
Program, as described in subparagraph (O) of this
paragraph (1);
(ii) renewable energy credits necessary to comply
with the new wind and new photovoltaic procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1); and
(iii) renewable energy credits necessary to meet
the remaining requirements of this subsection (c).
(G) The following provisions shall apply to the
Agency's procurement of renewable energy credits under
this subsection (c):
(i) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
wind projects within 160 days after June 1, 2017 (the
effective date of Public Act 99-906) this amendatory
Act of the 99th General Assembly. For the purposes of
this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale wind projects to begin delivery on June
1, 2019, if available, but not later than June 1, 2021.
Payments to suppliers of renewable energy credits
shall commence upon delivery. Renewable energy credits

SB3292 - 31 - LRB100 20042 SMS 35324 b
procured under this initial procurement shall be
included in the Agency's long-term plan and shall apply
to all renewable energy goals in this subsection (c).
(ii) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
solar projects and brownfield site photovoltaic
projects within one year after June 1, 2017 (the
effective date of Public Act 99-906) this amendatory
Act of the 99th General Assembly. For the purposes of
this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale solar projects and brownfield site
photovoltaic projects to begin delivery on June 1,
2019, if available, but not later than June 1, 2021.
The Agency may structure this initial procurement in
one or more discrete procurement events. Payments to
suppliers of renewable energy credits shall commence
upon delivery. Renewable energy credits procured under
this initial procurement shall be included in the
Agency's long-term plan and shall apply to all
renewable energy goals in this subsection (c).
(iii) Subsequent forward procurements for
utility-scale wind projects shall solicit at least

SB3292 - 32 - LRB100 20042 SMS 35324 b
1,000,000 renewable energy credits delivered annually
per procurement event and shall be planned, scheduled,
and designed such that the cumulative amount of
renewable energy credits delivered from all new wind
projects in each delivery year shall not exceed the
Agency's projection of the cumulative amount of
renewable energy credits that will be delivered from
all new photovoltaic projects, including utility-scale
and distributed photovoltaic devices, in the same
delivery year at the time scheduled for wind contract
delivery.
(iv) If, at any time after the time set for
delivery of renewable energy credits pursuant to the
initial procurements in items (i) and (ii) of this
subparagraph (G), the cumulative amount of renewable
energy credits projected to be delivered from all new
wind projects in a given delivery year exceeds the
cumulative amount of renewable energy credits
projected to be delivered from all new photovoltaic
projects in that delivery year by 200,000 or more
renewable energy credits, then the Agency shall within
60 days adjust the procurement programs in the
long-term renewable resources procurement plan to
ensure that the projected cumulative amount of
renewable energy credits to be delivered from all new
wind projects does not exceed the projected cumulative

SB3292 - 33 - LRB100 20042 SMS 35324 b
amount of renewable energy credits to be delivered from
all new photovoltaic projects by 200,000 or more
renewable energy credits, provided that nothing in
this Section shall preclude the projected cumulative
amount of renewable energy credits to be delivered from
all new photovoltaic projects from exceeding the
projected cumulative amount of renewable energy
credits to be delivered from all new wind projects in
each delivery year and provided further that nothing in
this item (iv) shall require the curtailment of an
executed contract. The Agency shall update, on a
quarterly basis, its projection of the renewable
energy credits to be delivered from all projects in
each delivery year. Notwithstanding anything to the
contrary, the Agency may adjust the timing of
procurement events conducted under this subparagraph
(G). The long-term renewable resources procurement
plan shall set forth the process by which the
adjustments may be made.
(v) All procurements under this subparagraph (G)
shall comply with the geographic requirements in
subparagraph (I) of this paragraph (1) and shall follow
the procurement processes and procedures described in
this Section and Section 16-111.5 of the Public
Utilities Act to the extent practicable, and these
processes and procedures may be expedited to

SB3292 - 34 - LRB100 20042 SMS 35324 b
accommodate the schedule established by this
subparagraph (G).
(H) The procurement of renewable energy resources for a
given delivery year shall be reduced as described in this
subparagraph (H) if an alternative alternate retail
electric supplier meets the requirements described in this
subparagraph (H).
(i) Within 45 days after June 1, 2017 (the
effective date of Public Act 99-906) this amendatory
Act of the 99th General Assembly, an alternative retail
electric supplier or its successor shall submit an
informational filing to the Illinois Commerce
Commission certifying that, as of December 31, 2015,
the alternative retail electric supplier owned one or
more electric generating facilities that generates
renewable energy resources as defined in Section 1-10
of this Act, provided that such facilities are not
powered by wind or photovoltaics, and the facilities
generate one renewable energy credit for each
megawatthour of energy produced from the facility.
The informational filing shall identify each
facility that was eligible to satisfy the alternative
retail electric supplier's obligations under Section
16-115D of the Public Utilities Act as described in
this item (i).
(ii) For a given delivery year, the alternative

SB3292 - 35 - LRB100 20042 SMS 35324 b
retail electric supplier may elect to supply its retail
customers with renewable energy credits from the
facility or facilities described in item (i) of this
subparagraph (H) that continue to be owned by the
alternative retail electric supplier.
(iii) The alternative retail electric supplier
shall notify the Agency and the applicable utility, no
later than February 28 of the year preceding the
applicable delivery year or 15 days after June 1, 2017
(the effective date of Public Act 99-906) this
amendatory Act of the 99th General Assembly, whichever
is later, of its election under item (ii) of this
subparagraph (H) to supply renewable energy credits to
retail customers of the utility. Such election shall
identify the amount of renewable energy credits to be
supplied by the alternative retail electric supplier
to the utility's retail customers and the source of the
renewable energy credits identified in the
informational filing as described in item (i) of this
subparagraph (H), subject to the following
limitations:
For the delivery year beginning June 1, 2018,
the maximum amount of renewable energy credits to
be supplied by an alternative retail electric
supplier under this subparagraph (H) shall be 68%
multiplied by 25% multiplied by 14.5% multiplied

SB3292 - 36 - LRB100 20042 SMS 35324 b
by the amount of metered electricity
(megawatt-hours) delivered by the alternative
retail electric supplier to Illinois retail
customers during the delivery year ending May 31,
2016.
For delivery years beginning June 1, 2019 and
each year thereafter, the maximum amount of
renewable energy credits to be supplied by an
alternative retail electric supplier under this
subparagraph (H) shall be 68% multiplied by 50%
multiplied by 16% multiplied by the amount of
metered electricity (megawatt-hours) delivered by
the alternative retail electric supplier to
Illinois retail customers during the delivery year
ending May 31, 2016, provided that the 16% value
shall increase by 1.5% each delivery year
thereafter to 25% by the delivery year beginning
June 1, 2025, and thereafter the 25% value shall
apply to each delivery year.
For each delivery year, the total amount of
renewable energy credits supplied by all alternative
retail electric suppliers under this subparagraph (H)
shall not exceed 9% of the Illinois target renewable
energy credit quantity. The Illinois target renewable
energy credit quantity for the delivery year beginning
June 1, 2018 is 14.5% multiplied by the total amount of

SB3292 - 37 - LRB100 20042 SMS 35324 b
metered electricity (megawatt-hours) delivered in the
delivery year immediately preceding that delivery
year, provided that the 14.5% shall increase by 1.5%
each delivery year thereafter to 25% by the delivery
year beginning June 1, 2025, and thereafter the 25%
value shall apply to each delivery year.
If the requirements set forth in items (i) through
(iii) of this subparagraph (H) are met, the charges
that would otherwise be applicable to the retail
customers of the alternative retail electric supplier
under paragraph (6) of this subsection (c) for the
applicable delivery year shall be reduced by the ratio
of the quantity of renewable energy credits supplied by
the alternative retail electric supplier compared to
that supplier's target renewable energy credit
quantity. The supplier's target renewable energy
credit quantity for the delivery year beginning June 1,
2018 is 14.5% multiplied by the total amount of metered
electricity (megawatt-hours) delivered by the
alternative retail supplier in that delivery year,
provided that the 14.5% shall increase by 1.5% each
delivery year thereafter to 25% by the delivery year
beginning June 1, 2025, and thereafter the 25% value
shall apply to each delivery year.
On or before April 1 of each year, the Agency shall
annually publish a report on its website that

SB3292 - 38 - LRB100 20042 SMS 35324 b
identifies the aggregate amount of renewable energy
credits supplied by alternative retail electric
suppliers under this subparagraph (H).
(I) The Agency shall design its long-term renewable
energy procurement plan to maximize the State's interest in
the health, safety, and welfare of its residents, including
but not limited to minimizing sulfur dioxide, nitrogen
oxide, particulate matter and other pollution that
adversely affects public health in this State, increasing
fuel and resource diversity in this State, enhancing the
reliability and resiliency of the electricity distribution
system in this State, meeting goals to limit carbon dioxide
emissions under federal or State law, and contributing to a
cleaner and healthier environment for the citizens of this
State. In order to further these legislative purposes,
renewable energy credits shall be eligible to be counted
toward the renewable energy requirements of this
subsection (c) if they are generated from facilities
located in this State. The Agency may qualify renewable
energy credits from facilities located in states adjacent
to Illinois if the generator demonstrates and the Agency
determines that the operation of such facility or
facilities will help promote the State's interest in the
health, safety, and welfare of its residents based on the
public interest criteria described above. To ensure that
the public interest criteria are applied to the procurement

SB3292 - 39 - LRB100 20042 SMS 35324 b
and given full effect, the Agency's long-term procurement
plan shall describe in detail how each public interest
factor shall be considered and weighted for facilities
located in states adjacent to Illinois.
(J) In order to promote the competitive development of
renewable energy resources in furtherance of the State's
interest in the health, safety, and welfare of its
residents, renewable energy credits shall not be eligible
to be counted toward the renewable energy requirements of
this subsection (c) if they are sourced from a generating
unit whose costs were being recovered through rates
regulated by this State or any other state or states on or
after January 1, 2017. Each contract executed to purchase
renewable energy credits under this subsection (c) shall
provide for the contract's termination if the costs of the
generating unit supplying the renewable energy credits
subsequently begin to be recovered through rates regulated
by this State or any other state or states; and each
contract shall further provide that, in that event, the
supplier of the credits must return 110% of all payments
received under the contract. Amounts returned under the
requirements of this subparagraph (J) shall be retained by
the utility and all of these amounts shall be used for the
procurement of additional renewable energy credits from
new wind or new photovoltaic resources as defined in this
subsection (c). The long-term plan shall provide that these

SB3292 - 40 - LRB100 20042 SMS 35324 b
renewable energy credits shall be procured in the next
procurement event.
Notwithstanding the limitations of this subparagraph
(J), renewable energy credits sourced from generating
units that are constructed, purchased, owned, or leased by
an electric utility as part of an approved project,
program, or pilot under Section 1-56 of this Act shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c), regardless of how the
costs of these units are recovered.
(K) The long-term renewable resources procurement plan
developed by the Agency in accordance with subparagraph (A)
of this paragraph (1) shall include an Adjustable Block
program for the procurement of renewable energy credits
from new photovoltaic projects that are distributed
renewable energy generation devices or new photovoltaic
community renewable generation projects. The Adjustable
Block program shall be designed to provide a transparent
schedule of prices and quantities to enable the
photovoltaic market to scale up and for renewable energy
credit prices to adjust at a predictable rate over time.
The prices set by the Adjustable Block program can be
reflected as a set value or as the product of a formula.
The Adjustable Block program shall include for each
category of eligible projects: a schedule of standard block
purchase prices to be offered; a series of steps, with

SB3292 - 41 - LRB100 20042 SMS 35324 b
associated nameplate capacity and purchase prices that
adjust from step to step; and automatic opening of the next
step as soon as the nameplate capacity and available
purchase prices for an open step are fully committed or
reserved. Only projects energized on or after June 1, 2017
shall be eligible for the Adjustable Block program. For
each block group the Agency shall determine the number of
blocks, the amount of generation capacity in each block,
and the purchase price for each block, provided that the
purchase price provided and the total amount of generation
in all blocks for all block groups shall be sufficient to
meet the goals in this subsection (c). The Agency may
periodically review its prior decisions establishing the
number of blocks, the amount of generation capacity in each
block, and the purchase price for each block, and may
propose, on an expedited basis, changes to these previously
set values, including but not limited to redistributing
these amounts and the available funds as necessary and
appropriate, subject to Commission approval as part of the
periodic plan revision process described in Section
16-111.5 of the Public Utilities Act. The Agency may define
different block sizes, purchase prices, or other distinct
terms and conditions for projects located in different
utility service territories if the Agency deems it
necessary to meet the goals in this subsection (c).
The Adjustable Block program shall include at least the

SB3292 - 42 - LRB100 20042 SMS 35324 b
following block groups in at least the following amounts,
which may be adjusted upon review by the Agency and
approval by the Commission as described in this
subparagraph (K):
(i) At least 25% from distributed renewable energy
generation devices with a nameplate capacity of no more
than 10 kilowatts.
(ii) At least 25% from distributed renewable
energy generation devices with a nameplate capacity of
more than 10 kilowatts and no more than 2,000
kilowatts. The Agency may create sub-categories within
this category to account for the differences between
projects for small commercial customers, large
commercial customers, and public or non-profit
customers.
(iii) At least 25% from photovoltaic community
renewable generation projects.
(iv) The remaining 25% shall be allocated as
specified by the Agency in the long-term renewable
resources procurement plan.
The Adjustable Block program shall be designed to
ensure that renewable energy credits are procured from
photovoltaic distributed renewable energy generation
devices and new photovoltaic community renewable energy
generation projects in diverse locations and are not
concentrated in a few geographic areas.

SB3292 - 43 - LRB100 20042 SMS 35324 b
(L) The procurement of photovoltaic renewable energy
credits under items (i) through (iv) of subparagraph (K) of
this paragraph (1) shall be subject to the following
contract and payment terms:
(i) The Agency shall procure contracts of at least
15 years in length.
(ii) For those renewable energy credits that
qualify and are procured under item (i) of subparagraph
(K) of this paragraph (1), the renewable energy credit
purchase price shall be paid in full by the contracting
utilities at the time that the facility producing the
renewable energy credits is interconnected at the
distribution system level of the utility and
energized. The electric utility shall receive and
retire all renewable energy credits generated by the
project for the first 15 years of operation.
(iii) For those renewable energy credits that
qualify and are procured under item (ii) and (iii) of
subparagraph (K) of this paragraph (1) and any
additional categories of distributed generation
included in the long-term renewable resources
procurement plan and approved by the Commission, 20
percent of the renewable energy credit purchase price
shall be paid by the contracting utilities at the time
that the facility producing the renewable energy
credits is interconnected at the distribution system

SB3292 - 44 - LRB100 20042 SMS 35324 b
level of the utility and energized. The remaining
portion shall be paid ratably over the subsequent
4-year period. The electric utility shall receive and
retire all renewable energy credits generated by the
project for the first 15 years of operation.
(iv) Each contract shall include provisions to
ensure the delivery of the renewable energy credits for
the full term of the contract.
(v) The utility shall be the counterparty to the
contracts executed under this subparagraph (L) that
are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vi) If, at any time, approved applications for the
Adjustable Block program exceed funds collected by the
electric utility or would cause the Agency to exceed
the limitation described in subparagraph (E) of this
paragraph (1) on the amount of renewable energy
resources that may be procured, then the Agency shall
consider future uncommitted funds to be reserved for
these contracts on a first-come, first-served basis,
with the delivery of renewable energy credits required
beginning at the time that the reserved funds become
available.
(vii) Nothing in this Section shall require the

SB3292 - 45 - LRB100 20042 SMS 35324 b
utility to advance any payment or pay any amounts that
exceed the actual amount of revenues collected by the
utility under paragraph (6) of this subsection (c) and
subsection (k) of Section 16-108 of the Public
Utilities Act, and contracts executed under this
Section shall expressly incorporate this limitation.
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the
Adjustable Block program described in subparagraph (K) of
this paragraph (1), and the Agency shall retain the
consultant or consultants in the same manner, to the extent
practicable, as the Agency retains others to administer
provisions of this Act, including, but not limited to, the
procurement administrator. The selection of experts and
expert consulting firms and the procurement process
described in this subparagraph (M) are exempt from the
requirements of Section 20-10 of the Illinois Procurement
Code, under Section 20-10 of that Code. The Agency shall
strive to minimize administrative expenses in the
implementation of the Adjustable Block program.
The Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct regularly scheduled meetings to
discuss program activity and market conditions. If
necessary, the Agency may make prospective administrative

SB3292 - 46 - LRB100 20042 SMS 35324 b
adjustments to the Adjustable Block program design, such as
redistributing available funds or making adjustments to
purchase prices as necessary to achieve the goals of this
subsection (c). Program modifications to any price,
capacity block, or other program element that do not
deviate from the Commission's approved value by more than
25% shall take effect immediately and are not subject to
Commission review and approval. Program modifications to
any price, capacity block, or other program element that
deviate more than 25% from the Commission's approved value
must be approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public Utilities
Act. The Agency shall consider stakeholder feedback when
making adjustments to the Adjustable Block design and shall
notify stakeholders in advance of any planned changes.
(N) The long-term renewable resources procurement plan
required by this subsection (c) shall include a community
renewable generation program. The Agency shall establish
the terms, conditions, and program requirements for
community renewable generation projects with a goal to
expand renewable energy generating facility access to a
broader group of energy consumers, to ensure robust
participation opportunities for residential and small
commercial customers and those who cannot install
renewable energy on their own properties. Any plan approved
by the Commission shall allow subscriptions to community

SB3292 - 47 - LRB100 20042 SMS 35324 b
renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N),
"portable" means that subscriptions may be retained by the
subscriber even if the subscriber relocates or changes its
address within the same utility service territory; and
"transferable" means that a subscriber may assign or sell
subscriptions to another person within the same utility
service territory.
Electric utilities shall provide a monetary credit to a
subscriber's subsequent bill for service for the
proportional output of a community renewable generation
project attributable to that subscriber as specified in
Section 16-107.5 of the Public Utilities Act.
The Agency shall purchase renewable energy credits
from subscribed shares of photovoltaic community renewable
generation projects through the Adjustable Block program
described in subparagraph (K) of this paragraph (1) or
through the Illinois Solar for All Program described in
Section 1-56 of this Act. The electric utility shall
purchase any unsubscribed energy from community renewable
generation projects that are Qualifying Facilities ("QF")
under the electric utility's tariff for purchasing the
output from QFs under Public Utilities Regulatory Policies
Act of 1978.
The owners of and any subscribers to a community
renewable generation project shall not be considered

SB3292 - 48 - LRB100 20042 SMS 35324 b
public utilities or alternative retail electricity
suppliers under the Public Utilities Act solely as a result
of their interest in or subscription to a community
renewable generation project and shall not be required to
become an alternative retail electric supplier by
participating in a community renewable generation project
with a public utility.
(O) For the delivery year beginning June 1, 2018, the
long-term renewable resources procurement plan required by
this subsection (c) shall provide for the Agency to procure
contracts to continue offering the Illinois Solar for All
Program described in subsection (b) of Section 1-56 of this
Act, and the contracts approved by the Commission shall be
executed by the utilities that are subject to this
subsection (c). The long-term renewable resources
procurement plan shall allocate 5% of the funds available
under the plan for the applicable delivery year, or
$10,000,000 per delivery year, whichever is greater, to
fund the programs, and the plan shall determine the amount
of funding to be apportioned to the programs identified in
subsection (b) of Section 1-56 of this Act; provided that
for the delivery years beginning June 1, 2017, June 1,
2021, and June 1, 2025, the long-term renewable resources
procurement plan shall allocate 10% of the funds available
under the plan for the applicable delivery year, or
$20,000,000 per delivery year, whichever is greater, and

SB3292 - 49 - LRB100 20042 SMS 35324 b
$10,000,000 of such funds in such year shall be used by an
electric utility that serves more than 3,000,000 retail
customers in the State to implement a Commission-approved
plan under Section 16-108.12 of the Public Utilities Act.
In making the determinations required under this
subparagraph (O), the Commission shall consider the
experience and performance under the programs and any
evaluation reports. The Commission shall also provide for
an independent evaluation of those programs on a periodic
basis that are funded under this subparagraph (O).
(2) (Blank).
(3) (Blank).
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the 2010 delivery year and ending
June 1, 2017, an electric utility subject to this
subsection (c) shall apply the lesser of the maximum
alternative compliance payment rate or the most recent
estimated alternative compliance payment rate for its
service territory for the corresponding compliance period,
established pursuant to subsection (d) of Section 16-115D
of the Public Utilities Act to its retail customers that
take service pursuant to the electric utility's hourly
pricing tariff or tariffs. The electric utility shall
retain all amounts collected as a result of the application
of the alternative compliance payment rate or rates to such

SB3292 - 50 - LRB100 20042 SMS 35324 b
customers, and, beginning in 2011, the utility shall
include in the information provided under item (1) of
subsection (d) of Section 16-111.5 of the Public Utilities
Act the amounts collected under the alternative compliance
payment rate or rates for the prior year ending May 31.
Notwithstanding any limitation on the procurement of
renewable energy resources imposed by item (2) of this
subsection (c), the Agency shall increase its spending on
the purchase of renewable energy resources to be procured
by the electric utility for the next plan year by an amount
equal to the amounts collected by the utility under the
alternative compliance payment rate or rates in the prior
year ending May 31.
(6) The electric utility shall be entitled to recover
all of its costs associated with the procurement of
renewable energy credits under plans approved under this
Section and Section 16-111.5 of the Public Utilities Act.
These costs shall include associated reasonable expenses
for implementing the procurement programs, including, but
not limited to, the costs of administering and evaluating
the Adjustable Block program, through an automatic
adjustment clause tariff in accordance with subsection (k)
of Section 16-108 of the Public Utilities Act.
(7) Renewable energy credits procured from new
photovoltaic projects or new distributed renewable energy
generation devices under this Section after June 1, 2017

SB3292 - 51 - LRB100 20042 SMS 35324 b
(the effective date of Public Act 99-906) this amendatory
Act of the 99th General Assembly must be procured from
devices installed by a qualified person in compliance with
the requirements of Section 16-128A of the Public Utilities
Act and any rules or regulations adopted thereunder.
In meeting the renewable energy requirements of this
subsection (c), to the extent feasible and consistent with
State and federal law, the renewable energy credit
procurements, Adjustable Block solar program, and
community renewable generation program shall provide
employment opportunities for all segments of the
population and workforce, including minority-owned and
female-owned business enterprises, and shall not,
consistent with State and federal law, discriminate based
on race or socioeconomic status.
(d) Clean coal portfolio standard.
(1) The procurement plans shall include electricity
generated using clean coal. Each utility shall enter into
one or more sourcing agreements with the initial clean coal
facility, as provided in paragraph (3) of this subsection
(d), covering electricity generated by the initial clean
coal facility representing at least 5% of each utility's
total supply to serve the load of eligible retail customers
in 2015 and each year thereafter, as described in paragraph
(3) of this subsection (d), subject to the limits specified
in paragraph (2) of this subsection (d). It is the goal of

SB3292 - 52 - LRB100 20042 SMS 35324 b
the State that by January 1, 2025, 25% of the electricity
used in the State shall be generated by cost-effective
clean coal facilities. For purposes of this subsection (d),
"cost-effective" means that the expenditures pursuant to
such sourcing agreements do not cause the limit stated in
paragraph (2) of this subsection (d) to be exceeded and do
not exceed cost-based benchmarks, which shall be developed
to assess all expenditures pursuant to such sourcing
agreements covering electricity generated by clean coal
facilities, other than the initial clean coal facility, by
the procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor and shall be subject to Commission review and
approval.
A utility party to a sourcing agreement shall
immediately retire any emission credits that it receives in
connection with the electricity covered by such agreement.
Utilities shall maintain adequate records documenting
the purchases under the sourcing agreement to comply with
this subsection (d) and shall file an accounting with the
load forecast that must be filed with the Agency by July 15
of each year, in accordance with subsection (d) of Section
16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the
clean coal portfolio standard specified in this subsection
(d) if the utility enters into a sourcing agreement as

SB3292 - 53 - LRB100 20042 SMS 35324 b
required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending
immediately prior to the agreement's execution. For
purposes of this subsection (d), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For purposes
of this subsection (d), the total amount paid for electric
service includes without limitation amounts paid for
supply, transmission, distribution, surcharges and add-on
taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2009;

SB3292 - 54 - LRB100 20042 SMS 35324 b
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2011 or 1.5% of the
amount paid per kilowatthour by those customers during
the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2012 or 2% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009; and
(E) thereafter, the total amount paid under
sourcing agreements with clean coal facilities
pursuant to the procurement plan for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of these
resources included in the amounts paid by eligible
retail customers in connection with electric service
to no more than the greater of (i) 2.015% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009 or (ii) the incremental amount
per kilowatthour paid for these resources in 2013.

SB3292 - 55 - LRB100 20042 SMS 35324 b
These requirements may be altered only as provided by
statute.
No later than June 30, 2015, the Commission shall
review the limitation on the total amount paid under
sourcing agreements, if any, with clean coal facilities
pursuant to this subsection (d) and report to the General
Assembly its findings as to whether that limitation unduly
constrains the amount of electricity generated by
cost-effective clean coal facilities that is covered by
sourcing agreements.
(3) Initial clean coal facility. In order to promote
development of clean coal facilities in Illinois, each
electric utility subject to this Section shall execute a
sourcing agreement to source electricity from a proposed
clean coal facility in Illinois (the "initial clean coal
facility") that will have a nameplate capacity of at least
500 MW when commercial operation commences, that has a
final Clean Air Act permit on June 1, 2009 (the effective
date of Public Act 95-1027) this amendatory Act of the 95th
General Assembly, and that will meet the definition of
clean coal facility in Section 1-10 of this Act when
commercial operation commences. The sourcing agreements
with this initial clean coal facility shall be subject to
both approval of the initial clean coal facility by the
General Assembly and satisfaction of the requirements of
paragraph (4) of this subsection (d) and shall be executed

SB3292 - 56 - LRB100 20042 SMS 35324 b
within 90 days after any such approval by the General
Assembly. The Agency and the Commission shall have
authority to inspect all books and records associated with
the initial clean coal facility during the term of such a
sourcing agreement. A utility's sourcing agreement for
electricity produced by the initial clean coal facility
shall include:
(A) a formula contractual price (the "contract
price") approved pursuant to paragraph (4) of this
subsection (d), which shall:
(i) be determined using a cost of service
methodology employing either a level or deferred
capital recovery component, based on a capital
structure consisting of 45% equity and 55% debt,
and a return on equity as may be approved by the
Federal Energy Regulatory Commission, which in any
case may not exceed the lower of 11.5% or the rate
of return approved by the General Assembly
pursuant to paragraph (4) of this subsection (d);
and
(ii) provide that all miscellaneous net
revenue, including but not limited to net revenue
from the sale of emission allowances, if any,
substitute natural gas, if any, grants or other
support provided by the State of Illinois or the
United States Government, firm transmission

SB3292 - 57 - LRB100 20042 SMS 35324 b
rights, if any, by-products produced by the
facility, energy or capacity derived from the
facility and not covered by a sourcing agreement
pursuant to paragraph (3) of this subsection (d) or
item (5) of subsection (d) of Section 16-115 of the
Public Utilities Act, whether generated from the
synthesis gas derived from coal, from SNG, or from
natural gas, shall be credited against the revenue
requirement for this initial clean coal facility;
(B) power purchase provisions, which shall:
(i) provide that the utility party to such
sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour
times a fraction, the numerator of which is such
utility's retail market sales of electricity
(expressed in kilowatthours sold) in the State
during the prior calendar month and the

SB3292 - 58 - LRB100 20042 SMS 35324 b
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount purchased by the utility
in any year will be limited by paragraph (2) of
this subsection (d); and
(iv) be considered pre-existing contracts in
such utility's procurement plans for eligible
retail customers;
(C) contract for differences provisions, which
shall:
(i) require the utility party to such sourcing
agreement to contract with the initial clean coal
facility in each hour with respect to an amount of
energy equal to all clean coal energy made
available from the initial clean coal facility
during such hour times a fraction, the numerator of
which is such utility's retail market sales of
electricity (expressed in kilowatthours sold) in
the utility's service territory in the State

SB3292 - 59 - LRB100 20042 SMS 35324 b
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in any
year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the
utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference

SB3292 - 60 - LRB100 20042 SMS 35324 b
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;
(D) general provisions, which shall:
(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the
facility;
(ii) provide that utilities shall maintain
adequate records documenting purchases under the
sourcing agreements entered into to comply with
this subsection (d) and shall file an accounting
with the load forecast that must be filed with the
Agency by July 15 of each year, in accordance with
subsection (d) of Section 16-111.5 of the Public
Utilities Act;
(iii) provide that all costs associated with
the initial clean coal facility will be
periodically reported to the Federal Energy
Regulatory Commission and to purchasers in
accordance with applicable laws governing
cost-based wholesale power contracts;

SB3292 - 61 - LRB100 20042 SMS 35324 b
(iv) permit the Illinois Power Agency to
assume ownership of the initial clean coal
facility, without monetary consideration and
otherwise on reasonable terms acceptable to the
Agency, if the Agency so requests no less than 3
years prior to the end of the stated contract term;
(v) require the owner of the initial clean coal
facility to provide documentation to the
Commission each year, starting in the facility's
first year of commercial operation, accurately
reporting the quantity of carbon emissions from
the facility that have been captured and
sequestered and report any quantities of carbon
released from the site or sites at which carbon
emissions were sequestered in prior years, based
on continuous monitoring of such sites. If, in any
year after the first year of commercial operation,
the owner of the facility fails to demonstrate that
the initial clean coal facility captured and
sequestered at least 50% of the total carbon
emissions that the facility would otherwise emit
or that sequestration of emissions from prior
years has failed, resulting in the release of
carbon dioxide into the atmosphere, the owner of
the facility must offset excess emissions. Any
such carbon offsets must be permanent, additional,

SB3292 - 62 - LRB100 20042 SMS 35324 b
verifiable, real, located within the State of
Illinois, and legally and practicably enforceable.
The cost of such offsets for the facility that are
not recoverable shall not exceed $15 million in any
given year. No costs of any such purchases of
carbon offsets may be recovered from a utility or
its customers. All carbon offsets purchased for
this purpose and any carbon emission credits
associated with sequestration of carbon from the
facility must be permanently retired. The initial
clean coal facility shall not forfeit its
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in the

SB3292 - 63 - LRB100 20042 SMS 35324 b
course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility willfully wilfully fails
to comply with the carbon capture and
sequestration requirements set forth in this item
(v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing
agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced in
subparagraphs (A)(i) through (A)(iii) of paragraph
(3) of this subsection (d), prior to an adjustment
in those inputs including, without limitation, the
capital structure and return on equity, fuel
costs, and other operations and maintenance costs
and (2) to approve the costs to be passed through
to customers under the sourcing agreement by which
the utility satisfies its statutory obligations.
Commission review shall occur no less than every 3
years, regardless of whether any adjustments have
been proposed, and shall be completed within 9
months;

SB3292 - 64 - LRB100 20042 SMS 35324 b
(viii) limit the utility's obligation to such
amount as the utility is allowed to recover through
tariffs filed with the Commission, provided that
neither the clean coal facility nor the utility
waives any right to assert federal pre-emption or
any other argument in response to a purported
disallowance of recovery costs;
(ix) limit the utility's or alternative retail
electric supplier's obligation to incur any
liability until such time as the facility is in
commercial operation and generating power and
energy and such power and energy is being delivered
to the facility busbar;
(x) provide that the owner or owners of the
initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or the
contract for differences provisions;
(xi) append documentation showing that the
formula rate and contract, insofar as they relate
to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;

SB3292 - 65 - LRB100 20042 SMS 35324 b
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to the
power purchase provisions, are subject to review
under the public interest standard applied by the
Federal Energy Regulatory Commission pursuant to
Sections 205 and 206 of the Federal Power Act; and
(xiii) conform with customary lender
requirements in power purchase agreements used as
the basis for financing non-utility generators.
(4) Effective date of sourcing agreements with the
initial clean coal facility.
Any proposed sourcing agreement with the initial clean
coal facility shall not become effective unless the
following reports are prepared and submitted and
authorizations and approvals obtained:
(i) Facility cost report. The owner of the initial
clean coal facility shall submit to the Commission, the
Agency, and the General Assembly a front-end
engineering and design study, a facility cost report,
method of financing (including but not limited to
structure and associated costs), and an operating and
maintenance cost quote for the facility (collectively
"facility cost report"), which shall be prepared in
accordance with the requirements of this paragraph (4)
of subsection (d) of this Section, and shall provide
the Commission and the Agency access to the work

SB3292 - 66 - LRB100 20042 SMS 35324 b
papers, relied upon documents, and any other backup
documentation related to the facility cost report.
(ii) Commission report. Within 6 months following
receipt of the facility cost report, the Commission, in
consultation with the Agency, shall submit a report to
the General Assembly setting forth its analysis of the
facility cost report. Such report shall include, but
not be limited to, a comparison of the costs associated
with electricity generated by the initial clean coal
facility to the costs associated with electricity
generated by other types of generation facilities, an
analysis of the rate impacts on residential and small
business customers over the life of the sourcing
agreements, and an analysis of the likelihood that the
initial clean coal facility will commence commercial
operation by and be delivering power to the facility's
busbar by 2016. To assist in the preparation of its
report, the Commission, in consultation with the
Agency, may hire one or more experts or consultants,
the costs of which shall be paid for by the owner of
the initial clean coal facility. The Commission and
Agency may begin the process of selecting such experts
or consultants prior to receipt of the facility cost
report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,

SB3292 - 67 - LRB100 20042 SMS 35324 b
based on the facility cost report and the Commission's
report, the General Assembly enacts authorizing
legislation approving (A) the projected price, stated
in cents per kilowatthour, to be charged for
electricity generated by the initial clean coal
facility, (B) the projected impact on residential and
small business customers' bills over the life of the
sourcing agreements, and (C) the maximum allowable
return on equity for the project; and
(iv) Commission review. If the General Assembly
enacts authorizing legislation pursuant to
subparagraph (iii) approving a sourcing agreement, the
Commission shall, within 90 days of such enactment,
complete a review of such sourcing agreement. During
such time period, the Commission shall implement any
directive of the General Assembly, resolve any
disputes between the parties to the sourcing agreement
concerning the terms of such agreement, approve the
form of such agreement, and issue an order finding that
the sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one or
more contractors or suppliers for the engineering,
procurement and construction of the components

SB3292 - 68 - LRB100 20042 SMS 35324 b
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the core
plant based on one or more front end engineering
and design studies for the gasification island and
related facilities. The core plant shall include
all civil, structural, mechanical, electrical,
control, and safety systems.
(ii) an estimate of the capital cost of the
balance of the plant, including any capital costs
associated with sequestration of carbon dioxide
emissions and all interconnects and interfaces
required to operate the facility, such as
transmission of electricity, construction or
backfeed power supply, pipelines to transport
substitute natural gas or carbon dioxide, potable
water supply, natural gas supply, water supply,
water discharge, landfill, access roads, and coal
delivery.
The quoted construction costs shall be expressed
in nominal dollars as of the date that the quote is
prepared and shall include capitalized financing costs
during construction, taxes, insurance, and other
owner's costs, and an assumed escalation in materials
and labor beyond the date as of which the construction

SB3292 - 69 - LRB100 20042 SMS 35324 b
cost quote is expressed.
(B) The front end engineering and design study for
the gasification island and the cost study for the
balance of plant shall include sufficient design work
to permit quantification of major categories of
materials, commodities and labor hours, and receipt of
quotes from vendors of major equipment required to
construct and operate the clean coal facility.
(C) The facility cost report shall also include an
operating and maintenance cost quote that will provide
the estimated cost of delivered fuel, personnel,
maintenance contracts, chemicals, catalysts,
consumables, spares, and other fixed and variable
operations and maintenance costs. The delivered fuel
cost estimate will be provided by a recognized third
party expert or experts in the fuel and transportation
industries. The balance of the operating and
maintenance cost quote, excluding delivered fuel
costs, will be developed based on the inputs provided
by duly licensed engineering and construction firms
performing the construction cost quote, potential
vendors under long-term service agreements and plant
operating agreements, or recognized third party plant
operator or operators.
The operating and maintenance cost quote
(including the cost of the front end engineering and

SB3292 - 70 - LRB100 20042 SMS 35324 b
design study) shall be expressed in nominal dollars as
of the date that the quote is prepared and shall
include taxes, insurance, and other owner's costs, and
an assumed escalation in materials and labor beyond the
date as of which the operating and maintenance cost
quote is expressed.
(D) The facility cost report shall also include an
analysis of the initial clean coal facility's ability
to deliver power and energy into the applicable
regional transmission organization markets and an
analysis of the expected capacity factor for the
initial clean coal facility.
(E) Amounts paid to third parties unrelated to the
owner or owners of the initial clean coal facility to
prepare the core plant construction cost quote,
including the front end engineering and design study,
and the operating and maintenance cost quote will be
reimbursed through Coal Development Bonds.
(5) Re-powering and retrofitting coal-fired power
plants previously owned by Illinois utilities to qualify as
clean coal facilities. During the 2009 procurement
planning process and thereafter, the Agency and the
Commission shall consider sourcing agreements covering
electricity generated by power plants that were previously
owned by Illinois utilities and that have been or will be
converted into clean coal facilities, as defined by Section

SB3292 - 71 - LRB100 20042 SMS 35324 b
1-10 of this Act. Pursuant to such procurement planning
process, the owners of such facilities may propose to the
Agency sourcing agreements with utilities and alternative
retail electric suppliers required to comply with
subsection (d) of this Section and item (5) of subsection
(d) of Section 16-115 of the Public Utilities Act, covering
electricity generated by such facilities. In the case of
sourcing agreements that are power purchase agreements,
the contract price for electricity sales shall be
established on a cost of service basis. In the case of
sourcing agreements that are contracts for differences,
the contract price from which the reference price is
subtracted shall be established on a cost of service basis.
The Agency and the Commission may approve any such utility
sourcing agreements that do not exceed cost-based
benchmarks developed by the procurement administrator, in
consultation with the Commission staff, Agency staff and
the procurement monitor, subject to Commission review and
approval. The Commission shall have authority to inspect
all books and records associated with these clean coal
facilities during the term of any such contract.
(6) Costs incurred under this subsection (d) or
pursuant to a contract entered into under this subsection
(d) shall be deemed prudently incurred and reasonable in
amount and the electric utility shall be entitled to full
cost recovery pursuant to the tariffs filed with the

SB3292 - 72 - LRB100 20042 SMS 35324 b
Commission.
(d-5) Zero emission standard.
(1) Beginning with the delivery year commencing on June
1, 2017, the Agency shall, for electric utilities that
serve at least 100,000 retail customers in this State,
procure contracts with zero emission facilities that are
reasonably capable of generating cost-effective zero
emission credits in an amount approximately equal to 16% of
the actual amount of electricity delivered by each electric
utility to retail customers in the State during calendar
year 2014. For an electric utility serving fewer than
100,000 retail customers in this State that requested,
under Section 16-111.5 of the Public Utilities Act, that
the Agency procure power and energy for all or a portion of
the utility's Illinois load for the delivery year
commencing June 1, 2016, the Agency shall procure contracts
with zero emission facilities that are reasonably capable
of generating cost-effective zero emission credits in an
amount approximately equal to 16% of the portion of power
and energy to be procured by the Agency for the utility.
The duration of the contracts procured under this
subsection (d-5) shall be for a term of 10 years ending May
31, 2027. The quantity of zero emission credits to be
procured under the contracts shall be all of the zero
emission credits generated by the zero emission facility in
each delivery year; however, if the zero emission facility

SB3292 - 73 - LRB100 20042 SMS 35324 b
is owned by more than one entity, then the quantity of zero
emission credits to be procured under the contracts shall
be the amount of zero emission credits that are generated
from the portion of the zero emission facility that is
owned by the winning supplier.
The 16% value identified in this paragraph (1) is the
average of the percentage targets in subparagraph (B) of
paragraph (1) of subsection (c) of Section 1-75 of this Act
for the 5 delivery years beginning June 1, 2017.
The procurement process shall be subject to the
following provisions:
(A) Those zero emission facilities that intend to
participate in the procurement shall submit to the
Agency the following eligibility information for each
zero emission facility on or before the date
established by the Agency:
(i) the in-service date and remaining useful
life of the zero emission facility;
(ii) the amount of power generated annually
for each of the years 2005 through 2015, and the
projected zero emission credits to be generated
over the remaining useful life of the zero emission
facility, which shall be used to determine the
capability of each facility;
(iii) the annual zero emission facility cost
projections, expressed on a per megawatthour

SB3292 - 74 - LRB100 20042 SMS 35324 b
basis, over the next 6 delivery years, which shall
include the following: operation and maintenance
expenses; fully allocated overhead costs, which
shall be allocated using the methodology developed
by the Institute for Nuclear Power Operations;
fuel expenditures; non-fuel capital expenditures;
spent fuel expenditures; a return on working
capital; the cost of operational and market risks
that could be avoided by ceasing operation; and any
other costs necessary for continued operations,
provided that "necessary" means, for purposes of
this item (iii), that the costs could reasonably be
avoided only by ceasing operations of the zero
emission facility; and
(iv) a commitment to continue operating, for
the duration of the contract or contracts executed
under the procurement held under this subsection
(d-5), the zero emission facility that produces
the zero emission credits to be procured in the
procurement.
The information described in item (iii) of this
subparagraph (A) may be submitted on a confidential basis
and shall be treated and maintained by the Agency, the
procurement administrator, and the Commission as
confidential and proprietary and exempt from disclosure
under subparagraphs (a) and (g) of paragraph (1) of Section

SB3292 - 75 - LRB100 20042 SMS 35324 b
7 of the Freedom of Information Act. The Office of Attorney
General shall have access to, and maintain the
confidentiality of, such information pursuant to Section
6.5 of the Attorney General Act.
(B) The price for each zero emission credit
procured under this subsection (d-5) for each delivery
year shall be in an amount that equals the Social Cost
of Carbon, expressed on a price per megawatthour basis.
However, to ensure that the procurement remains
affordable to retail customers in this State if
electricity prices increase, the price in an
applicable delivery year shall be reduced below the
Social Cost of Carbon by the amount ("Price
Adjustment") by which the market price index for the
applicable delivery year exceeds the baseline market
price index for the consecutive 12-month period ending
May 31, 2016. If the Price Adjustment is greater than
or equal to the Social Cost of Carbon in an applicable
delivery year, then no payments shall be due in that
delivery year. The components of this calculation are
defined as follows:
(i) Social Cost of Carbon: The Social Cost of
Carbon is $16.50 per megawatthour, which is based
on the U.S. Interagency Working Group on Social
Cost of Carbon's price in the August 2016 Technical
Update using a 3% discount rate, adjusted for

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inflation for each year of the program. Beginning
with the delivery year commencing June 1, 2023, the
price per megawatthour shall increase by $1 per
megawatthour, and continue to increase by an
additional $1 per megawatthour each delivery year
thereafter.
(ii) Baseline market price index: The baseline
market price index for the consecutive 12-month
period ending May 31, 2016 is $31.40 per
megawatthour, which is based on the sum of (aa) the
average day-ahead energy price across all hours of
such 12-month period at the PJM Interconnection
LLC Northern Illinois Hub, (bb) 50% multiplied by
the Base Residual Auction, or its successor,
capacity price for the rest of the RTO zone group
determined by PJM Interconnection LLC, divided by
24 hours per day, and (cc) 50% multiplied by the
Planning Resource Auction, or its successor,
capacity price for Zone 4 determined by the
Midcontinent Independent System Operator, Inc.,
divided by 24 hours per day.
(iii) Market price index: The market price
index for a delivery year shall be the sum of
projected energy prices and projected capacity
prices determined as follows:
(aa) Projected energy prices: the

SB3292 - 77 - LRB100 20042 SMS 35324 b
projected energy prices for the applicable
delivery year shall be calculated once for the
year using the forward market price for the PJM
Interconnection, LLC Northern Illinois Hub.
The forward market price shall be calculated as
follows: the energy forward prices for each
month of the applicable delivery year averaged
for each trade date during the calendar year
immediately preceding that delivery year to
produce a single energy forward price for the
delivery year. The forward market price
calculation shall use data published by the
Intercontinental Exchange, or its successor.
(bb) Projected capacity prices:
(I) For the delivery year years
commencing June 1, 2017, June 1, 2018, and
June 1, 2019, the projected capacity price
shall be equal to the sum of (1) 50%
multiplied by the Base Residual Auction,
or its successor, price for the rest of the
RTO zone group as determined by PJM
Interconnection LLC, divided by 24 hours
per day and, (2) 50% multiplied by the
resource auction price determined in the
resource auction administered by the
Midcontinent Independent System Operator,

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Inc., in which the largest percentage of
load cleared for Local Resource Zone 4,
divided by 24 hours per day, and where such
price is determined by the Midcontinent
Independent System Operator, Inc.
(I-5) For the delivery year commencing
June 1, 2019, the projected capacity price
shall be equal to the sum of (1) 50%
multiplied by the Base Residual Auction,
or its successor, price for the rest of the
RTO zone group as determined by PJM
Interconnection LLC, divided by 24 hours
per day and (2) 50% multiplied by the
weighted average price for capacity in
capacity contracts awarded in procurement
events conducted by the Agency under
subsection (b-5) of Section 16-111.5 of
the Public Utilities Act, divided by 24
hours per day, with such price to be
determined by the Agency.
(II) For the delivery year commencing
June 1, 2020, and each year thereafter, the
projected capacity price shall be equal to
the sum of (1) 50% multiplied by the Base
Residual Auction, or its successor, price
for the ComEd zone as determined by PJM

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Interconnection LLC, divided by 24 hours
per day, and (2) 50% multiplied by the
weighted average price for capacity in
capacity contracts awarded in procurement
events conducted by the Agency under
subsection (b-5) of Section 16-111.5 of
the Public Utilities Act, divided by 24
hours per day, with such price to be
determined by the Agency 50% multiplied by
the resource auction price determined in
the resource auction administered by the
Midcontinent Independent System Operator,
Inc., in which the largest percentage of
load cleared for Local Resource Zone 4,
divided by 24 hours per day, and where such
price is determined by the Midcontinent
Independent System Operator, Inc.
For purposes of this subsection (d-5):
"Rest of the RTO" and "ComEd Zone" shall have
the meaning ascribed to them by PJM
Interconnection, LLC.
"RTO" means regional transmission
organization.
(C) No later than 45 days after June 1, 2017 (the
effective date of Public Act 99-906) this amendatory
Act of the 99th General Assembly, the Agency shall

SB3292 - 80 - LRB100 20042 SMS 35324 b
publish its proposed zero emission standard
procurement plan. The plan shall be consistent with the
provisions of this paragraph (1) and shall provide that
winning bids shall be selected based on public interest
criteria that include, but are not limited to,
minimizing carbon dioxide emissions that result from
electricity consumed in Illinois and minimizing sulfur
dioxide, nitrogen oxide, and particulate matter
emissions that adversely affect the citizens of this
State. In particular, the selection of winning bids
shall take into account the incremental environmental
benefits resulting from the procurement, such as any
existing environmental benefits that are preserved by
the procurements held under Public Act 99-906 this
amendatory Act of the 99th General Assembly and would
cease to exist if the procurements were not held,
including the preservation of zero emission
facilities. The plan shall also describe in detail how
each public interest factor shall be considered and
weighted in the bid selection process to ensure that
the public interest criteria are applied to the
procurement and given full effect.
For purposes of developing the plan, the Agency
shall consider any reports issued by a State agency,
board, or commission under House Resolution 1146 of the
98th General Assembly and paragraph (4) of subsection

SB3292 - 81 - LRB100 20042 SMS 35324 b
(d) of Section 1-75 of this Act, as well as publicly
available analyses and studies performed by or for
regional transmission organizations that serve the
State and their independent market monitors.
Upon publishing of the zero emission standard
procurement plan, copies of the plan shall be posted
and made publicly available on the Agency's website.
All interested parties shall have 10 days following the
date of posting to provide comment to the Agency on the
plan. All comments shall be posted to the Agency's
website. Following the end of the comment period, but
no more than 60 days later than June 1, 2017 (the
effective date of Public Act 99-906) this amendatory
Act of the 99th General Assembly, the Agency shall
revise the plan as necessary based on the comments
received and file its zero emission standard
procurement plan with the Commission.
If the Commission determines that the plan will
result in the procurement of cost-effective zero
emission credits, then the Commission shall, after
notice and hearing, but no later than 45 days after the
Agency filed the plan, approve the plan or approve with
modification. For purposes of this subsection (d-5),
"cost effective" means the projected costs of
procuring zero emission credits from zero emission
facilities do not cause the limit stated in paragraph

SB3292 - 82 - LRB100 20042 SMS 35324 b
(2) of this subsection to be exceeded.
(C-5) As part of the Commission's review and
acceptance or rejection of the procurement results,
the Commission shall, in its public notice of
successful bidders:
(i) identify how the winning bids satisfy the
public interest criteria described in subparagraph
(C) of this paragraph (1) of minimizing carbon
dioxide emissions that result from electricity
consumed in Illinois and minimizing sulfur
dioxide, nitrogen oxide, and particulate matter
emissions that adversely affect the citizens of
this State;
(ii) specifically address how the selection of
winning bids takes into account the incremental
environmental benefits resulting from the
procurement, including any existing environmental
benefits that are preserved by the procurements
held under Public Act 99-906 this amendatory Act of
the 99th General Assembly and would have ceased to
exist if the procurements had not been held, such
as the preservation of zero emission facilities;
(iii) quantify the environmental benefit of
preserving the resources identified in item (ii)
of this subparagraph (C-5), including the
following:

SB3292 - 83 - LRB100 20042 SMS 35324 b
(aa) the value of avoided greenhouse gas
emissions measured as the product of the zero
emission facilities' output over the contract
term multiplied by the U.S. Environmental
Protection Agency eGrid subregion carbon
dioxide emission rate and the U.S. Interagency
Working Group on Social Cost of Carbon's price
in the August 2016 Technical Update using a 3%
discount rate, adjusted for inflation for each
delivery year; and
(bb) the costs of replacement with other
zero carbon dioxide resources, including wind
and photovoltaic, based upon the simple
average of the following:
(I) the price, or if there is more than
one price, the average of the prices, paid
for renewable energy credits from new
utility-scale wind projects in the
procurement events specified in item (i)
of subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of this Act;
and
(II) the price, or if there is more
than one price, the average of the prices,
paid for renewable energy credits from new
utility-scale solar projects and

SB3292 - 84 - LRB100 20042 SMS 35324 b
brownfield site photovoltaic projects in
the procurement events specified in item
(ii) of subparagraph (G) of paragraph (1)
of subsection (c) of Section 1-75 of this
Act and, after January 1, 2015, renewable
energy credits from photovoltaic
distributed generation projects in
procurement events held under subsection
(c) of Section 1-75 of this Act.
Each utility shall enter into binding contractual
arrangements with the winning suppliers.
The procurement described in this subsection
(d-5), including, but not limited to, the execution of
all contracts procured, shall be completed no later
than May 10, 2017. Based on the effective date of
Public Act 99-906 this amendatory Act of the 99th
General Assembly, the Agency and Commission may, as
appropriate, modify the various dates and timelines
under this subparagraph and subparagraphs (C) and (D)
of this paragraph (1). The procurement and plan
approval processes required by this subsection (d-5)
shall be conducted in conjunction with the procurement
and plan approval processes required by subsection (c)
of this Section and Section 16-111.5 of the Public
Utilities Act, to the extent practicable.
Notwithstanding whether a procurement event is

SB3292 - 85 - LRB100 20042 SMS 35324 b
conducted under Section 16-111.5 of the Public
Utilities Act, the Agency shall immediately initiate a
procurement process on June 1, 2017 (the effective date
of Public Act 99-906) this amendatory Act of the 99th
General Assembly.
(D) Following the procurement event described in
this paragraph (1) and consistent with subparagraph
(B) of this paragraph (1), the Agency shall calculate
the payments to be made under each contract for the
next delivery year based on the market price index for
that delivery year. The Agency shall publish the
payment calculations no later than May 25, 2017 and
every May 25 thereafter.
(E) Notwithstanding the requirements of this
subsection (d-5), the contracts executed under this
subsection (d-5) shall provide that the zero emission
facility may, as applicable, suspend or terminate
performance under the contracts in the following
instances:
(i) A zero emission facility shall be excused
from its performance under the contract for any
cause beyond the control of the resource,
including, but not restricted to, acts of God,
flood, drought, earthquake, storm, fire,
lightning, epidemic, war, riot, civil disturbance
or disobedience, labor dispute, labor or material

SB3292 - 86 - LRB100 20042 SMS 35324 b
shortage, sabotage, acts of public enemy,
explosions, orders, regulations or restrictions
imposed by governmental, military, or lawfully
established civilian authorities, which, in any of
the foregoing cases, by exercise of commercially
reasonable efforts the zero emission facility
could not reasonably have been expected to avoid,
and which, by the exercise of commercially
reasonable efforts, it has been unable to
overcome. In such event, the zero emission
facility shall be excused from performance for the
duration of the event, including, but not limited
to, delivery of zero emission credits, and no
payment shall be due to the zero emission facility
during the duration of the event.
(ii) A zero emission facility shall be
permitted to terminate the contract if legislation
is enacted into law by the General Assembly that
imposes or authorizes a new tax, special
assessment, or fee on the generation of
electricity, the ownership or leasehold of a
generating unit, or the privilege or occupation of
such generation, ownership, or leasehold of
generation units by a zero emission facility.
However, the provisions of this item (ii) do not
apply to any generally applicable tax, special

SB3292 - 87 - LRB100 20042 SMS 35324 b
assessment or fee, or requirements imposed by
federal law.
(iii) A zero emission facility shall be
permitted to terminate the contract in the event
that the resource requires capital expenditures in
excess of $40,000,000 that were neither known nor
reasonably foreseeable at the time it executed the
contract and that a prudent owner or operator of
such resource would not undertake.
(iv) A zero emission facility shall be
permitted to terminate the contract in the event
the Nuclear Regulatory Commission terminates the
resource's license.
(F) If the zero emission facility elects to
terminate a contract under this subparagraph (E, of
this paragraph (1), then the Commission shall reopen
the docket in which the Commission approved the zero
emission standard procurement plan under subparagraph
(C) of this paragraph (1) and, after notice and
hearing, enter an order acknowledging the contract
termination election if such termination is consistent
with the provisions of this subsection (d-5).
(2) For purposes of this subsection (d-5), the amount
paid per kilowatthour means the total amount paid for
electric service expressed on a per kilowatthour basis. For
purposes of this subsection (d-5), the total amount paid

SB3292 - 88 - LRB100 20042 SMS 35324 b
for electric service includes, without limitation, amounts
paid for supply, transmission, distribution, surcharges,
and add-on taxes.
Notwithstanding the requirements of this subsection
(d-5), the contracts executed under this subsection (d-5)
shall provide that the total of zero emission credits
procured under a procurement plan shall be subject to the
limitations of this paragraph (2). For each delivery year,
the contractual volume receiving payments in such year
shall be reduced for all retail customers based on the
amount necessary to limit the net increase that delivery
year to the costs of those credits included in the amounts
paid by eligible retail customers in connection with
electric service to no more than 1.65% of the amount paid
per kilowatthour by eligible retail customers during the
year ending May 31, 2009. The result of this computation
shall apply to and reduce the procurement for all retail
customers, and all those customers shall pay the same
single, uniform cents per kilowatthour charge under
subsection (k) of Section 16-108 of the Public Utilities
Act. To arrive at a maximum dollar amount of zero emission
credits to be paid for the particular delivery year, the
resulting per kilowatthour amount shall be applied to the
actual amount of kilowatthours of electricity delivered by
the electric utility in the delivery year immediately prior
to the procurement, to all retail customers in its service

SB3292 - 89 - LRB100 20042 SMS 35324 b
territory. Unpaid contractual volume for any delivery year
shall be paid in any subsequent delivery year in which such
payments can be made without exceeding the amount specified
in this paragraph (2). The calculations required by this
paragraph (2) shall be made only once for each procurement
plan year. Once the determination as to the amount of zero
emission credits to be paid is made based on the
calculations set forth in this paragraph (2), no subsequent
rate impact determinations shall be made and no adjustments
to those contract amounts shall be allowed. All costs
incurred under those contracts and in implementing this
subsection (d-5) shall be recovered by the electric utility
as provided in this Section.
No later than June 30, 2019, the Commission shall
review the limitation on the amount of zero emission
credits procured under this subsection (d-5) and report to
the General Assembly its findings as to whether that
limitation unduly constrains the procurement of
cost-effective zero emission credits.
(3) Six years after the execution of a contract under
this subsection (d-5), the Agency shall determine whether
the actual zero emission credit payments received by the
supplier over the 6-year period exceed the Average ZEC
Payment. In addition, at the end of the term of a contract
executed under this subsection (d-5), or at the time, if
any, a zero emission facility's contract is terminated

SB3292 - 90 - LRB100 20042 SMS 35324 b
under subparagraph (E) of paragraph (1) of this subsection
(d-5), then the Agency shall determine whether the actual
zero emission credit payments received by the supplier over
the term of the contract exceed the Average ZEC Payment,
after taking into account any amounts previously credited
back to the utility under this paragraph (3). If the Agency
determines that the actual zero emission credit payments
received by the supplier over the relevant period exceed
the Average ZEC Payment, then the supplier shall credit the
difference back to the utility. The amount of the credit
shall be remitted to the applicable electric utility no
later than 120 days after the Agency's determination, which
the utility shall reflect as a credit on its retail
customer bills as soon as practicable; however, the credit
remitted to the utility shall not exceed the total amount
of payments received by the facility under its contract.
For purposes of this Section, the Average ZEC Payment
shall be calculated by multiplying the quantity of zero
emission credits delivered under the contract times the
average contract price. The average contract price shall be
determined by subtracting the amount calculated under
subparagraph (B) of this paragraph (3) from the amount
calculated under subparagraph (A) of this paragraph (3), as
follows:
(A) The average of the Social Cost of Carbon, as
defined in subparagraph (B) of paragraph (1) of this

SB3292 - 91 - LRB100 20042 SMS 35324 b
subsection (d-5), during the term of the contract.
(B) The average of the market price indices, as
defined in subparagraph (B) of paragraph (1) of this
subsection (d-5), during the term of the contract,
minus the baseline market price index, as defined in
subparagraph (B) of paragraph (1) of this subsection
(d-5).
If the subtraction yields a negative number, then the
Average ZEC Payment shall be zero.
(4) Cost-effective zero emission credits procured from
zero emission facilities shall satisfy the applicable
definitions set forth in Section 1-10 of this Act.
(5) The electric utility shall retire all zero emission
credits used to comply with the requirements of this
subsection (d-5).
(6) Electric utilities shall be entitled to recover all
of the costs associated with the procurement of zero
emission credits through an automatic adjustment clause
tariff in accordance with subsection (k) and (m) of Section
16-108 of the Public Utilities Act, and the contracts
executed under this subsection (d-5) shall provide that the
utilities' payment obligations under such contracts shall
be reduced if an adjustment is required under subsection
(m) of Section 16-108 of the Public Utilities Act.
(7) This subsection (d-5) shall become inoperative on
January 1, 2028.

SB3292 - 92 - LRB100 20042 SMS 35324 b
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards
set forth in Section 16-111.5 of the Public Utilities Act.
(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive procurement
process.
(i) A renewable energy credit, carbon emission credit, or
zero emission credit can only be used once to comply with a
single portfolio or other standard as set forth in subsection
(c), subsection (d), or subsection (d-5) of this Section,
respectively. A renewable energy credit, carbon emission
credit, or zero emission credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(Source: P.A. 98-463, eff. 8-16-13; 99-536, eff. 7-8-16;

SB3292 - 93 - LRB100 20042 SMS 35324 b
99-906, eff. 6-1-17; revised 1-22-18.)
Section 15. The Public Utilities Act is amended by changing
Sections 16-111.5 and 16-115A as follows:
(220 ILCS 5/16-111.5)
Sec. 16-111.5. Provisions relating to procurement.
(a) An electric utility that on December 31, 2005 served at
least 100,000 customers in Illinois shall procure power and
energy for its eligible retail customers in accordance with the
applicable provisions set forth in Section 1-75 of the Illinois
Power Agency Act and this Section; provided, that beginning
with the delivery year commencing June 1, 2019, an electric
utility that serves fewer than 3,000,000 retail customers, but
more than 500,000 retail customers in Illinois shall procure
capacity, including any demand response products, in
accordance with subsection (b-5) of this Section. Beginning
with the delivery year commencing on June 1, 2017, an such
electric utility that on December 31, 2005 served at least
100,000 customers in Illinois shall also procure zero emission
credits from zero emission facilities in accordance with the
applicable provisions set forth in Section 1-75 of the Illinois
Power Agency Act, and, for years beginning on or after June 1,
2017, the utility shall procure renewable energy resources in
accordance with the applicable provisions set forth in Section
1-75 of the Illinois Power Agency Act and this Section. A small

SB3292 - 94 - LRB100 20042 SMS 35324 b
multi-jurisdictional electric utility that on December 31,
2005 served less than 100,000 customers in Illinois may elect
to procure power and energy for all or a portion of its
eligible Illinois retail customers in accordance with the
applicable provisions set forth in this Section and Section
1-75 of the Illinois Power Agency Act. This Section shall not
apply to a small multi-jurisdictional utility until such time
as a small multi-jurisdictional utility requests the Illinois
Power Agency to prepare a procurement plan for its eligible
retail customers. "Eligible retail customers" for the purposes
of this Section means those retail customers that purchase
power and energy from the electric utility under fixed-price
bundled service tariffs, other than those retail customers
whose service is declared or deemed competitive under Section
16-113 and those other customer groups specified in this
Section, including self-generating customers, customers
electing hourly pricing, or those customers who are otherwise
ineligible for fixed-price bundled tariff service. For those
customers that are excluded from the procurement plan's
electric supply service requirements, and the utility shall
procure any supply requirements, including capacity, ancillary
services, and hourly priced energy, in the applicable markets
as needed to serve those customers, provided that the utility
may include in its procurement plan load requirements for the
load that is associated with those retail customers whose
service has been declared or deemed competitive pursuant to

SB3292 - 95 - LRB100 20042 SMS 35324 b
Section 16-113 of this Act to the extent that those customers
are purchasing power and energy during one of the transition
periods identified in subsection (b) of Section 16-113 of this
Act.
(b) Procurement plans A procurement plan shall be prepared
for each electric utility consistent with the applicable
requirements of the Illinois Power Agency Act and this Section.
For purposes of this Section, Illinois electric utilities that
are affiliated by virtue of a common parent company are
considered to be a single electric utility. Small
multi-jurisdictional utilities may request a procurement plan
for a portion of or all of its Illinois load. Each procurement
plan shall analyze the projected balance of supply and demand
for those retail customers to be included in the plan's
electric supply service requirements over a 5-year period, with
the first planning year beginning on June 1 of the year
following the year in which the plan is filed. The plan shall
specifically identify the wholesale products to be procured
following plan approval, and shall follow all the requirements
set forth in the Public Utilities Act and all applicable State
and federal laws, statutes, rules, or regulations, as well as
Commission orders. Nothing in this Section precludes
consideration of contracts longer than 5 years and related
forecast data. Unless specified otherwise in this Section, in
the procurement plan or in the implementing tariff, any
procurement occurring in accordance with this plan shall be

SB3292 - 96 - LRB100 20042 SMS 35324 b
competitively bid through a request for proposals process.
Approval and implementation of the procurement plan shall be
subject to review and approval by the Commission according to
the provisions set forth in this Section. A procurement plan
shall include each of the following components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and
(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this
Act, both current and projected; and
(ii) supply side needs that are projected to be
offset by purchases of renewable energy resources, if
any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This

SB3292 - 97 - LRB100 20042 SMS 35324 b
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than
procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from those retail customers included in the plan's
electric supply service requirements;
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service
territory is located, including, but not limited
to, any applicable capacity or dispatch
requirements;
(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;

SB3292 - 98 - LRB100 20042 SMS 35324 b
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be
executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including but not limited to monthly 5 x 16 peak period
block energy, monthly off-peak wrap energy, monthly 7 x
24 energy, annual 5 x 16 energy, annual off-peak wrap
energy, annual 7 x 24 energy, monthly capacity, annual
capacity, peak load capacity obligations, capacity
purchase plan, and ancillary services;
(v) proposed term structures for each wholesale
product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load

SB3292 - 99 - LRB100 20042 SMS 35324 b
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk.
(4) Proposed procedures for balancing loads. The
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)
hourly balancing of supply and demand and (ii) the criteria
for portfolio re-balancing in the event of significant
shifts in load.
(5) Long-Term Renewable Resources Procurement Plan.
The Agency shall prepare a long-term renewable resources
procurement plan for the procurement of renewable energy
credits under Sections 1-56 and 1-75 of the Illinois Power
Agency Act for delivery beginning in the 2017 delivery
year.
(i) The initial long-term renewable resources
procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
the purposes of this Section, "delivery year" has the

SB3292 - 100 - LRB100 20042 SMS 35324 b
same meaning as in Section 1-10 of the Illinois Power
Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.
(ii) The long-term renewable resources planning
process shall be conducted as follows:
(A) Electric utilities shall provide a range
of load forecasts to the Illinois Power Agency
within 45 days of the Agency's request for
forecasts, which request shall specify the length
and conditions for the forecasts including, but
not limited to, the quantity of distributed
generation expected to be interconnected for each
year.
(B) The Agency shall publish for comment the
initial long-term renewable resources procurement
plan no later than 120 days after the effective
date of this amendatory Act of the 99th General
Assembly and shall review, and may revise, the plan
at least every 2 years thereafter. To the extent
practicable, the Agency shall review and propose
any revisions to the long-term renewable energy
resources procurement plan in conjunction with the
Agency's other planning and approval processes
conducted under this Section. The initial
long-term renewable resources procurement plan
shall:

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(aa) Identify the procurement programs and
competitive procurement events consistent with
the applicable requirements of the Illinois
Power Agency Act and shall be designed to
achieve the goals set forth in subsection (c)
of Section 1-75 of that Act.
(bb) Include a schedule for procurements
for renewable energy credits from
utility-scale wind projects, utility-scale
solar projects, and brownfield site
photovoltaic projects consistent with
subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois
Power Agency Act.
(cc) Identify the process whereby the
Agency will submit to the Commission for review
and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial long-term renewable
resources procurement plan and all subsequent
revisions shall be posted and made publicly
available on the Agency's and Commission's
websites, and copies shall also be provided to each
affected electric utility. An affected utility and
other interested parties shall have 45 days
following the date of posting to provide comment to

SB3292 - 102 - LRB100 20042 SMS 35324 b
the Agency on the initial long-term renewable
resources procurement plan and all subsequent
revisions. All comments submitted to the Agency
shall be specific, supported by data or other
detailed analyses, and, if objecting to all or a
portion of the procurement plan, accompanied by
specific alternative wording or proposals. All
comments shall be posted on the Agency's and
Commission's websites. During this 45-day comment
period, the Agency shall hold at least one public
hearing within each utility's service area that is
subject to the requirements of this paragraph (5)
for the purpose of receiving public comment.
Within 21 days following the end of the 45-day
review period, the Agency may revise the long-term
renewable resources procurement plan based on the
comments received and shall file the plan with the
Commission for review and approval.
(C) Within 14 days after the filing of the
initial long-term renewable resources procurement
plan or any subsequent revisions, any person
objecting to the plan may file an objection with
the Commission. Within 21 days after the filing of
the plan, the Commission shall determine whether a
hearing is necessary. The Commission shall enter
its order confirming or modifying the initial

SB3292 - 103 - LRB100 20042 SMS 35324 b
long-term renewable resources procurement plan or
any subsequent revisions within 120 days after the
filing of the plan by the Illinois Power Agency.
(D) The Commission shall approve the initial
long-term renewable resources procurement plan and
any subsequent revisions, including expressly the
forecast used in the plan and taking into account
that funding will be limited to the amount of
revenues actually collected by the utilities, if
the Commission determines that the plan will
reasonably and prudently accomplish the
requirements of Section 1-56 and subsection (c) of
Section 1-75 of the Illinois Power Agency Act. The
Commission shall also approve the process for the
submission, review, and approval of the proposed
contracts to procure renewable energy credits or
implement the programs authorized by the
Commission pursuant to a long-term renewable
resources procurement plan approved under this
Section.
(iii) The Agency or third parties contracted by the
Agency shall implement all programs authorized by the
Commission in an approved long-term renewable
resources procurement plan without further review and
approval by the Commission. Third parties shall not
begin implementing any programs or receive any payment

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under this Section until the Commission has approved
the contract or contracts under the process authorized
by the Commission in item (D) of subparagraph (ii) of
paragraph (5) of this subsection (b) and the third
party and the Agency or utility, as applicable, have
executed the contract. For those renewable energy
credits subject to procurement through a competitive
bid process under the plan or under the initial forward
procurements for wind and solar resources described in
subparagraph (G) of paragraph (1) of subsection (c) of
Section 1-75 of the Illinois Power Agency Act, the
Agency shall follow the procurement process specified
in the provisions relating to electricity procurement
in subsections (e) through (i) of this Section.
(iv) An electric utility shall recover its costs
associated with the procurement of renewable energy
credits under this Section through an automatic
adjustment clause tariff under subsection (k) of
Section 16-108 of this Act. A utility shall not be
required to advance any payment or pay any amounts
under this Section that exceed the actual amount of
revenues collected by the utility under paragraph (6)
of subsection (c) of Section 1-75 of the Illinois Power
Agency Act and subsection (k) of Section 16-108 of this
Act, and contracts executed under this Section shall
expressly incorporate this limitation.

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(v) For the public interest, safety, and welfare,
the Agency and the Commission may adopt rules to carry
out the provisions of this Section on an emergency
basis immediately following the effective date of this
amendatory Act of the 99th General Assembly.
(vi) On or before July 1 of each year, the
Commission shall hold an informal hearing for the
purpose of receiving comments on the prior year's
procurement process and any recommendations for
change.
(b-5)(1) For purposes of this Section:
"Midcontinent Independent System Operator" shall mean
the Midcontinent Independent System Operator, Inc., or its
successor approved by the Federal Energy Regulatory
Commission as the regional transmission organization for
the Applicable Local Resource Zone.
"MISO Tariff" shall mean the open access transmission
and energy markets tariff of the Midcontinent Independent
System Operator, Inc. or its successor, as that tariff may
be updated from time to time.
"Fixed Resource Adequacy Plan", "Load Serving Entity",
"Local Clearing Requirement", "Local Resource Zone",
"Planning Resource", and "Planning Reserve Margin
Requirement" shall have the meanings set forth in the MISO
Tariff.
"Peak Load Contribution" shall mean the peak load

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contribution, calculated in the manner specified in the
MISO Tariff, of, as applicable, a retail customer, a group
of retail customers served by a Load Serving Entity, or all
retail customers of the Applicable Electric Utility in the
Applicable Local Resource Zone.
"Applicable Electric Utility" shall mean an electric
utility serving less than 3,000,000 retail customers and
more than 500,000 retail customers in this State.
"Applicable Local Resource Zone" shall have the
meaning set forth in Section 1-75 of the Illinois Power
Agency Act.
"Municipal utility" shall mean an entity described in
paragraph (1) of subsection (b) of Section 3-105 of this
Act.
"Electric cooperative" shall have the meaning set
forth in Section 3-119 of this Act.
"Contracted LSE Capacity" shall mean the amount of
capacity that a Load Serving Entity (i) has procured and
has under contract for the delivery year beginning June 1,
2019 or June 1, 2020 under a contract or contracts entered
into no later than the effective date of this amendatory
Act of the 100th General Assembly, for purposes of serving
retail customers of the Applicable Electric Utility in the
Applicable Local Resource Zone; and (ii) certifies to the
Agency, in a certification signed by an officer of the Load
Serving Entity and submitted to the Agency no later than 30

SB3292 - 107 - LRB100 20042 SMS 35324 b
days following the effective date of this amendatory Act of
the 100th General Assembly, that the Load Serving Entity
has procured and has under contract. For purposes of this
definition, capacity under contract shall include capacity
that a supplier of capacity has entered into a written
commitment to provide to a Load Serving Entity that is a
corporate affiliate of the capacity supplier.
(2)(A) During the period between January 1 and March 1
of 2019, and of each year thereafter, the Agency, and, as
applicable, the procurement administrator, shall conduct a
capacity procurement event to procure capacity that is
sufficient, together with capacity procured in previous
capacity procurement events, to meet at least 90% of the
portion of the projected Planning Reserve Margin
Requirement for the delivery year beginning the third June
1 following the capacity procurement event that is
attributable to the projected load of the retail customers
of each Applicable Electric Utility. Provided, that (i) the
initial capacity procurement event conducted in 2019 shall
also procure capacity that is sufficient to meet at least
90% of the projected Planning Reserve Margin Requirement
for the delivery years beginning June 1, 2020 that is
attributable to the projected load of the retail customers
of each Applicable Electric Utility; and (ii) each capacity
procurement event shall also procure any additional
capacity that is necessary, together with capacity

SB3292 - 108 - LRB100 20042 SMS 35324 b
procured in previous annual capacity procurement events,
to meet 100% of the portion of the Planning Reserve Margin
Requirement for the delivery year beginning June 1 of that
same year that is attributable to the projected load of the
retail customers of each Applicable Electric Utility. The
capacity procurement plans developed by the Agency and the
capacity procurement events shall be designed to procure
capacity to ensure long-term resource adequacy at the
lowest cost over time, taking into account the benefits of
price stability and the need to ensure the reliability,
adequacy, and resilience of the bulk power generation and
delivery system in the Applicable Local Resource Zone.
(B) In determining or projecting the Planning
Reserve Margin Requirement and the Local Clearing
Requirement in the Applicable Local Resource Zone
attributable to the retail customers of the Applicable
Electric Utility for a delivery year for purposes of
capacity procurement plans and capacity procurement
events under this subsection (b-5), the Agency and, as
applicable, the procurement administrator shall use,
as applicable, the Planning Reserve Margin
Requirement, Peak Load Contribution, and Local
Clearing Requirement as established or projected by
the Midcontinent Independent System Operator. If the
Midcontinent Independent System Operator has not
established or released a projection of the Planning

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Reserve Margin Requirement, Peak Load Contribution, or
Local Clearing Requirement for a delivery year, the
Agency and, as applicable, the procurement
administrator shall develop forecasts of the Planning
Reserve Margin Requirement, Peak Load Contribution,
and Local Clearing Requirement for that delivery year
based on available information, including, without
limiting the foregoing, the most recent Planning
Reserve Margin Requirement, Peak Load Contribution,
and Local Clearing Requirement established by the
Midcontinent Independent System Operator for a
delivery year and any other information from the
Midcontinent Independent System Operator and the
Applicable Electric Utility. If requested by the
Agency, the Applicable Electric Utility shall provide
to the Agency actual and forecasted peak electric load
information for the retail customers of the Applicable
Electric Utility in the Applicable Local Resource
Zone.
(3)(A) Each capacity procurement event may include the
procurement of capacity through a mix of contracts with
different terms and different initial delivery dates as
proposed by the Agency in its capacity procurement plan and
approved by the Commission, so long as each annual capacity
procurement event results in the procurement of an amount
of capacity that, together with capacity procured in

SB3292 - 110 - LRB100 20042 SMS 35324 b
previous capacity procurement events, is equal to the
portion or portions of the projected Planning Reserve
Margin Requirement of the retail customers of each
Applicable Electric Utility for the delivery year or
delivery years for which capacity is to be procured as
specified in paragraph (2) of this subsection (b-5).
Provided, that in the initial procurement event conducted
in 2019, a portion, as proposed by the Agency and approved
by the Commission, of the capacity shall be procured under
contracts with a term of at least 3 years beginning June 1,
2019.
(B) The Agency's annual capacity procurement plans
for the Applicable Local Resource Zone shall be
developed as follows: No later than July 15 of each
year, the Agency shall post on its website and
otherwise make publicly available, for public comment,
its draft capacity procurement plan for the capacity
procurement event to be held in February of the
following calendar year. Interested parties shall be
allowed 30 days from the posting of the draft capacity
procurement plan to submit comments to the Agency. The
Agency shall consider any comments received and shall
file its proposed capacity procurement plan with the
Commission within 15 days following the conclusion of
the public comment period. The Commission shall open a
docketed proceeding for consideration and approval or

SB3292 - 111 - LRB100 20042 SMS 35324 b
modification of the proposed capacity procurement
plan. The Commission or its administrative law judge
assigned to the proceeding shall establish a
procedural schedule for the proceeding that will
enable the Commission to issue an order, within 90 days
following the date the capacity procurement plan was
filed with the Commission, approving, with any
modifications directed by the Commission, the capacity
procurement plan. On or before December 1 each year,
the Commission shall issue its order in the proceeding
approving, or approving with modifications, the
capacity procurement plan.
(4) To the extent that any other provision of this
Section or any provision of the Illinois Power Agency Act
are not inconsistent with the provisions of this subsection
(b-5) for, and are otherwise applicable to, capacity
procurement events conducted under this subsection (b-5),
those other provisions shall be used in conducting capacity
procurement events conducted under this subsection (b-5).
(5) The capacity procurement plans prepared by, and the
capacity procurement events conducted by, the Agency under
this subsection (b-5) shall be subject to the following
requirements:
(A) The mix of capacity resources selected in any
procurement event conducted under this subsection
(b-5) must include sufficient qualified Zonal Resource

SB3292 - 112 - LRB100 20042 SMS 35324 b
Credits, together with capacity procured in previous
capacity procurement events, to satisfy the portion
specified in paragraph (2) of this subsection (b-5) of
the Planning Reserve Margin Requirements of the MISO
Tariff for the Applicable Local Resource Zone, and must
otherwise be consistent with the Planning Reserve
Margin Requirements for capacity established by the
Midcontinent Independent System Operator. Provided,
that the procurement of capacity in the capacity
procurement events shall not include the portion of the
Planning Reserve Margin Requirement for the Applicable
Local Resource Zone associated with customers served
by a municipal utility or an electric cooperative.
(B) The capacity to be procured for each delivery
year shall include an amount of capacity from capacity
resources physically located within the Applicable
Local Resource Zone that is no less than the portion of
the projected Local Clearing Requirement for the
Applicable Local Resource Zone for that delivery year
attributable to the load of the retail customers of the
Applicable Electric Utility.
(C) In each capacity procurement plan, the Agency
shall include a discussion of whether factors, other
than price, to support reliability in the Applicable
Local Resource Zone should be taken into account in
selecting capacity resources in the capacity

SB3292 - 113 - LRB100 20042 SMS 35324 b
procurement event or events that are the subject of the
capacity procurement plan. The Agency may propose in
the capacity procurement plan to procure a specified
amount or amounts of capacity from capacity resources
located within the Applicable Local Resource Zone,
over and above the amount of capacity required to
satisfy the Local Clearing Requirement, to support
reliability within the Applicable Local Resource Zone,
including, but not limited to, for purposes of
transmission security, voltage support, dynamic
stability, frequency response, fuel security and
on-site fuel supply, and import transfer capability.
The inclusion of any such factors in the capacity
procurement plan shall be subject to approval of the
Commission.
(D) Any capacity resource, including, without
limitation, demand response resources, energy
efficiency resources, and renewable energy resources,
that meets the other eligibility requirements of this
subsection (b-5), shall be eligible to participate in a
capacity procurement event under this subsection (b-5)
if, and to the extent that, the resource satisfies all
the requirements of the MISO Tariff to be designated as
a Zonal Resource Credit or other Planning Resource in a
Load Serving Entity's Fixed Resource Adequacy Plan or
successor mechanism for the Applicable Local Resource

SB3292 - 114 - LRB100 20042 SMS 35324 b
Zone. Provided, that a municipal utility, an electric
cooperative, a municipal electric power agency or
other group, association, or consortium of municipal
utilities or electric cooperatives may participate in
a capacity procurement event, using capacity that it
owns or leases, only to the extent that the owned and
leased capacity of the municipal utility, electric
cooperative, municipal electric power agency, or
group, association, or consortium exceeds the Planning
Reserve Margin Requirement (or comparable measure in
the regional transmission organization in which the
customers of the municipal utility, electric
cooperative, municipal electric power agency, or
members of the group, association, or consortium are
located) attributable to the load of the customers that
the municipal utility, electric cooperative, municipal
electric power agency, or group, association, or
consortium is obligated to serve. As a condition to
eligibility to participate in a capacity procurement
event conducted under this subsection (b-5), each
municipal utility, electric cooperative, municipal
electric power agency, and group, association, and
consortium of municipal utilities or electric
cooperatives shall certify its compliance with this
requirement to the Agency for the capacity procurement
event.

SB3292 - 115 - LRB100 20042 SMS 35324 b
(E) As a condition to eligibility to participate in
a capacity procurement event conducted under this
subsection (b-5), a supplier of capacity resources (i)
must commit to pay any fees assessed by the Agency to
recover the Agency's costs of conducting the capacity
procurement event and any related activities under
this subsection (b-5); (ii) must agree that, if
selected as a supplier in the capacity procurement
event, it will enter into a standard form contract
developed by the procurement administrator and
conforming to the requirements of this subsection
(b-5) with each Load Serving Entity for which capacity
is procured in the capacity procurement event; and
(iii) must agree and commit that if selected as a
supplier in the capacity procurement event, it will
operate the selected capacity resource from the date of
execution of the contract through the end of the
contract term, subject to occurrence of force majeure
events and other grounds for suspension or termination
of operation of the capacity resource or termination of
the contract in accordance with the terms of the
contract as specified in subparagraph (F) of paragraph
(9) of this subsection (b-5).
(F) For each capacity procurement event conducted
under this subsection (b-5), the procurement
administrator, in consultation with the Commission

SB3292 - 116 - LRB100 20042 SMS 35324 b
staff, Agency staff, and the procurement monitor,
shall establish confidential market-based benchmarks,
in accordance with paragraph (3) of subsection (e) of
this Section, for evaluating the final prices in the
contracts for the capacity that will be procured.
(G) In each capacity procurement event conducted
under this subsection (b-5), the procurement
administrator shall select capacity resources in the
amounts offered by capacity suppliers based on each
capacity supplier's offer price until sufficient
capacity (including any capacity offered under item
(ii) of subparagraph (H) and subparagraph (J) of this
paragraph (5) of this subsection (b-5)) has been
selected to reach the total amount of capacity to be
selected for each delivery year for which capacity is
being procured in the capacity procurement event.
Provided, that in selecting capacity resources, the
procurement administrator shall also take into
account, in accordance with and to the extent and in
the manner specified in, the capacity procurement plan
approved by the Commission for the capacity
procurement event, other factors to support
reliability in the Applicable Local Resource Zone,
including, but not limited to, for purposes of
transmission security, voltage support, dynamic
stability, frequency response, fuel security and

SB3292 - 117 - LRB100 20042 SMS 35324 b
on-site fuel supply, and import transfer capability.
If the procurement administrator, or the
Commission upon receiving the procurement
administrator's recommendation submitted under item
(ix) of paragraph (1) of subsection (c) of this Section
for the immediately upcoming delivery year beginning
on the immediately upcoming June 1, determines that an
insufficient amount of capacity has been offered in
bids that conform to the bidding requirements for the
capacity procurement event and at bid prices that are
deemed reasonable as compared to the applicable
benchmarks to fulfill the capacity procurement
objectives of the capacity procurement event, then the
Agency and the procurement administrator, in their
discretion, shall either (i) if sufficient time
remains prior to March 1, expeditiously conduct an
additional bid solicitation to procure additional
capacity for the immediately upcoming delivery year;
or (ii) notify the Load Serving Entities in the
Applicable Local Resource Zone that any additional
capacity required to meet the Planning Reserve Margin
Requirement obligations of the Load Serving Entity for
the immediately upcoming delivery year shall be
obtained through the planning reserve auction or other
auction conducted by the Midcontinent Independent
System Operator.

SB3292 - 118 - LRB100 20042 SMS 35324 b
(H) For the initial capacity procurement event to
be conducted in 2019 to procure capacity for the
delivery years beginning June 1, 2019, June 1, 2020,
and June 1, 2021, any Load Serving Entity holding
Contracted LSE Capacity may, but shall not be required
to, participate in the capacity procurement event as a
supplier of capacity resources using either of the
following two options:
(i) The Load Serving Entity may bid all or a
portion of its Contracted LSE Capacity into the
capacity procurement event as a capacity resource,
at a specified offer price, and the Contracted LSE
Capacity bid shall be eligible to be selected by
the procurement administrator in accordance with
subparagraph (G) of this paragraph (5) of this
subsection (b-5).
(ii) The Load Serving Entity may designate all
or a portion of its Contracted LSE Capacity to be
selected by the procurement administrator at a
price equal to the weighted average offer price of
all other capacity resources selected by the
procurement administrator. Under this option, the
Load Serving Entity's Contracted LSE Capacity is
selected as a capacity resource at a price equal to
the weighted average offer price of all other
capacity resources selected by the procurement

SB3292 - 119 - LRB100 20042 SMS 35324 b
administrator.
Under either items (i) or (ii), the Contracted LSE
Capacity must be supplied from a capacity resource that
meets the other requirements of this subsection (b-5)
to participate and be selected in the capacity
procurement event, and the Contracted LSE Capacity
must be offered for a contract term lasting until the
end date of the Load Serving Entity's contract term for
the Contracted LSE Capacity or until May 31, 2021,
whichever occurs earlier. A Load Serving Entity shall
not be required to use either of the options specified
in this subparagraph (H) for its Contracted LSE
Capacity. The Agency shall maintain as confidential
and proprietary and exempt from disclosure the amount
of Contracted LSE Capacity certified by a Load Serving
Entity to the Agency, except to the extent that the
Load-Serving Entity elects to use one or both of the
options specified in this subparagraph (H).
(I) Each capacity supplier whose capacity resource
is selected shall enter into contracts conforming to
the provisions of this subsection (b-5) with the Load
Serving Entities serving the retail customers of the
Applicable Electric Utility in the Applicable Local
Resource Zone for, in the aggregate, the total amount
of capacity selected at the price bid by the capacity
supplier for that amount of capacity. Provided, that

SB3292 - 120 - LRB100 20042 SMS 35324 b
(i) the procurement administrator shall have authority
to negotiate with a capacity supplier that submitted a
bid price below the applicable benchmark price
established for the capacity procurement event to
lower that capacity supplier's bid price, as provided
in item (vii) of subparagraph (1) of subsection (c) of
this Section; and (ii) the selection of capacity
suppliers, the amounts of capacity selected from each
supplier, and the prices for any capacity resources
selected in a capacity procurement event shall be
subject to the approval of the Commission in accordance
with subsection (f) of this Section.
(J) Capacity awarded in the Peak Time Rewards
program or successor program, if any, of an Applicable
Electric Utility shall be included in the capacity
resources selected for each delivery year for which
capacity is procured in a capacity procurement event,
at a price for that delivery year equal to the weighted
average price of the other capacity resources selected
under this subsection (b-5) for the delivery year.
Prior to a capacity procurement event being conducted
under this subsection (b-5) to procure capacity for a
delivery year, the Applicable Electric Utility shall
notify the Agency and the procurement administrator of
the amount of capacity awarded or forecasted to be
awarded in the Peak Time Rewards program for each

SB3292 - 121 - LRB100 20042 SMS 35324 b
delivery year for which capacity is to be procured in
the capacity procurement event. For purposes of
contract administration and settlements, the
Applicable Electric Utility shall be deemed the
capacity supplier of capacity awarded in its Peak Time
Rewards program or successor program.
(6) Each (i) capacity supplier selected in a capacity
procurement event conducted by the Illinois Power Agency
under this subsection (b-5), including each Load Serving
Entity offering Contracted LSE Capacity under item (i) of
subparagraph (H) of paragraph (5) of this subsection (b-5)
that is selected in the capacity procurement event, each
Load Serving Entity designating Contracted LSE Capacity
under item (ii) of subparagraph (H) of paragraph (5) of
this subsection (b-5), and an Applicable Electric Utility
as the supplier of capacity awarded under its Peak Time
Rewards program or successor program in accordance with
subparagraph (J) of paragraph (5) of this subsection (b-5);
and (ii) each Load Serving Entity serving retail customers
of an Applicable Electric Utility in an Applicable Resource
Zone, shall enter into contracts for capacity developed by
the procurement administrator in accordance with paragraph
(9) of this subsection (b-5).
(7) The Agency shall request that the Midcontinent
Independent System Operator serve as and perform the
responsibilities of the capacity data administrator as set

SB3292 - 122 - LRB100 20042 SMS 35324 b
forth in this subsection (b-5). If the Midcontinent
Independent System Operator declines to serve as, or
resigns as, the capacity data administrator, the Agency,
after consultation with the Commission, shall contract
with a third party to serve as the capacity data
administrator. The costs of the capacity data
administrator to perform its responsibilities under this
subsection (b-5) shall be reimbursed by the Agency. The
Agency shall recover such costs through fees assessed to
the Load Serving Entities that enter into contracts for
capacity under this Section.
(8) The Applicable Electric Utility shall supply to the
capacity data administrator, on a daily basis, a report or
reports showing the total load of the Applicable Electric
Utility's retail customers in the Applicable Local
Resource Zone that is served by each Load Serving Entity on
each day. Based upon and in reliance on the information
provided by the Applicable Electric Utility, the capacity
data administrator shall issue daily reports to each
capacity supplier and each Load Serving Entity setting
forth the amount of capacity being provided by each
capacity supplier under its contract with each Load Serving
Entity on that day, calculated in accordance with
subparagraph (C) of paragraph (9) of this subsection (b-5).
(9) The procurement administrator, in conjunction with
the Agency and the staff of the Commission and based on

SB3292 - 123 - LRB100 20042 SMS 35324 b
consultation with prospective capacity suppliers and with
Load Serving Entities serving retail customers of
Applicable Electric Utilities in an Applicable Local
Resource Zone, shall promulgate, and shall revise from time
to time as necessary and appropriate, standard form
contracts to be entered into between the Load Serving
Entities and capacity suppliers selected in procurement
events conducted under this subsection (b-5). The standard
form contracts to be used in connection with each capacity
procurement event conducted under this subsection (b-5)
shall be made available to prospective capacity suppliers
prior to the capacity procurement event. Each capacity
supplier seeking to participate in a capacity procurement
event shall agree, as a condition of eligibility to
participate, that if selected, it will enter into the
standard form contract with each Load Serving Entity
serving retail customers of the Applicable Electric
Utility in the Applicable Local Resource Zone. The standard
form contracts shall contain, without limitation, the
following provisions.
(A) Each contract between a capacity supplier and a
Load Serving Entity shall specify that the amount of
capacity to be provided by the capacity supplier and
purchased by the Load Serving Entity shall be that
portion of the total capacity to be supplied by the
capacity supplier equal to the load ratio share of the

SB3292 - 124 - LRB100 20042 SMS 35324 b
Applicable Electric Utility's retail customers served
by the Load Serving Entity as a percentage of the total
Planning Reserve Margin Requirement attributable to
the load of the Applicable Electric Utility's retail
customers in the Applicable Local Resource Zone on
March 1 immediately preceding the first delivery year
for which the contract is in effect.
(B) The standard form contracts shall specify that
if the Agency determines between March 1 and June 1 of
a year that the aggregate amount of capacity procured
in capacity procurement events for the immediately
upcoming delivery year beginning June 1 exceeds the
amount of capacity needed to meet the Planning Reserve
Margin Requirement attributable to the load of the
retail customers of the Applicable Electric Utility in
the Applicable Local Resource Zone, and directs that
the capacity to be supplied by each capacity supplier
for the immediately upcoming delivery year beginning
June 1 shall be reduced on a pro rata basis so that the
aggregate amount of capacity to be supplied for the
immediately upcoming delivery year is equal to the
amount of capacity needed to meet the Planning Reserve
Margin Requirement attributable to the load of the
retail customers of the Applicable Electric Utility in
the Applicable Local Resource Zone, then the amount of
capacity to be supplied and purchased under each

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contract between a capacity supplier and a Load Serving
Entity shall be deemed reduced as directed by the
Agency. The standard form contract shall specify that
any such reduction in the capacity to be supplied under
the contract shall apply only to the immediately
upcoming delivery year and not to any subsequent years
in the contract term. The standard form contracts shall
provide that in the event of a reduction in the
capacity to be supplied in accordance with this
subparagraph (B), the capacity supplier may resell or
otherwise dispose of the capacity it is no longer
obligated to supply, including by offering the
capacity into a planning reserve auction or other
auction conducted by the Midcontinent Independent
System Operator.
(C) Each contract between a capacity supplier and a
Load Serving Entity shall specify that beginning on
June 1 of the first delivery year for which the
contract is in effect, and continuing for the term of
the contract, the amount of capacity being provided by
the capacity supplier and purchased by the Load Serving
Entity shall be deemed adjusted on a daily basis to be
equal to that portion of the total capacity to be
supplied by the capacity supplier equal to the load
ratio share of the Applicable Electric Utility's
retail customers in the Applicable Local Resource Zone

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that are served by the Load Serving Entity to the total
Planning Reserve Margin Requirement attributable to
the load of the Applicable Electric Utility's retail
customers in the Applicable Local Resource Zone on that
day.
(D) The standard form contracts shall specify the
frequency of billing periods and payment remittance
periods for the capacity supplier to bill the Load
Serving Entity, and the Load Serving Entity to remit
payment to the capacity supplier, for the capacity
provided by the capacity supplier to the Load Serving
Entity under the contract on each day during the
billing period. A capacity supplier and a Load Serving
Entity may agree to modify their contract to provide
for billing and payment remittance periods other than
the billing and payment dates specified in the standard
form contracts.
(E) The standard form contracts shall include
provisions relating to the credit, collateral,
performance, and dispute resolution obligations of the
parties, and other terms and conditions as described in
paragraph (2) of subsection (e) of this Section. The
provisions in the standard form contracts relating to
credit and collateral shall determine the collateral
obligations of the Load Serving Entity based on
application of metrics relating to the Load Serving

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Entity's financial condition and creditworthiness, the
frequency of billing periods and payment remittance
periods specified in the contract, and the legal
authority of the Load Serving Entity to recover its
costs for the capacity from its retail customers. A
capacity supplier and a Load Serving Entity may agree
to modify these terms in their contract.
(F) The standard form contracts shall specify that
the capacity supplier shall operate the capacity
resource through the end of the contract term, subject
to the following provisions:
(i) The capacity supplier shall be excused
from its performance under the contract for any
cause beyond the reasonable control of the
capacity supplier, and affecting the capacity
resource, that is a force majeure event or
condition typically recognized in the electric
power industry, which events and conditions shall
be set forth in the standard form contract, and
which the capacity supplier, by exercise of
commercially reasonable efforts, could not
reasonably have been expected to avoid and which,
by the exercise of commercially reasonable
efforts, it has not been able to overcome. The
standard form contracts shall provide that in such
event, the capacity resource shall be excused from

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performance for the duration of the force majeure
condition, and no capacity payments shall be due to
the capacity supplier with respect to the capacity
resource for the period of non-performance.
(ii) The capacity supplier shall be permitted
to terminate the contract before the end of the
contract term if legislation is enacted into law by
the General Assembly that imposes or authorizes a
new tax, special assessment, or fee on the
generation of electricity, the ownership or
leasehold of a capacity resource, or the privilege
or occupation of such generation, ownership, or
leasehold of capacity resources by the capacity
supplier. However, the provisions of this
subdivision (ii) do not apply to any generally
applicable tax, special assessment or fee, or
requirements imposed by federal law.
(iii) The capacity supplier shall be permitted
to terminate the contract before the end of the
contract term if the capacity supplier is required
to make capital expenditures on the capacity
resource of $5,000,000 or more, or incur
additional operating expenses of $2,500,000 or
more per year, in order to comply with a federal or
State statute or regulation that is enacted
subsequent to the date of the capacity procurement

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event in which the capacity resource was selected.
(10) Each Load Serving Entity that is an alternative
retail electric supplier shall be allowed to recover and
shall be responsible for recovering its costs for capacity
incurred under contracts entered into under this
subsection (b-5) in accordance with its contracts and
arrangements entered into with its customers. A Load
Serving Entity that is an Applicable Electric Utility shall
recover its costs for capacity incurred under contracts
entered into under this subsection (b-5) in accordance with
the electric utility's tariff or other cost recovery
mechanism approved by the Commission under subsection (l)
of this Section.
(11) Nothing in this subsection (b-5) is intended to
preclude the Agency or the Commission from conducting the
procurement events and processes described in this
subsection (b-5) in conjunction with other procurement
processes described in this Section or Section 1-75 of the
Illinois Power Agency Act, to the extent the Agency and the
Commission find that approach is appropriate and
practicable while allowing the annual capacity procurement
plans to be developed and submitted by the Agency and
approved by the Commission in accordance with the schedule
set forth in subparagraph (B) of paragraph (3) of this
subsection (b-5), and allowing the capacity procurement
events to be conducted within the time periods specified in

SB3292 - 130 - LRB100 20042 SMS 35324 b
this subsection (b-5).
(12) It is the intent of this subsection (b-5) that the
Agency's and the Commission's implementation of this
subsection, including, but not limited to, the timing and
number of procurement events and the duration of contracts,
shall conform, at a minimum, to any applicable requirements
of the MISO Tariff, as the MISO Tariff may be changed,
replaced, or superseded from time to time, that are
necessary for Load Serving Entities serving retail
customers of an Applicable Electric Utility in an
Applicable Local Resource Zone to exercise and implement
the Fixed Resource Adequacy Plan capacity procurement
option, or a successor capacity procurement mechanism.
Notwithstanding anything to the contrary, the Agency and
the Commission shall have the authority to take all steps
necessary to implement this subsection (b-5) consistent
with applicable federal tariffs, and as those tariffs may
be changed, replaced, or superseded from time to time, to
procure capacity for the electric load of retail customers
of Applicable Electric Utilities subject to the
requirements of this subsection (b-5).
(c) The procurement process set forth in Section 1-75 of
the Illinois Power Agency Act and subsection (e) of this
Section shall be administered by a procurement administrator
and monitored by a procurement monitor. Provided, beginning
with the delivery year commencing June 1, 2019, that if and to

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the extent a provision of subsection (b-5) of this Section is
inconsistent with a provision of Section 1-75 of the Illinois
Power Agency Act or of another subsection of this Section, the
provision of subsection (b-5) shall control and shall be
applied for purposes of capacity procurement plans and capacity
procurement processes conducted under subsection (b-5).
(1) The procurement administrator shall:
(i) design the final procurement process in
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section following
Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids; these
benchmarks shall be submitted to the Commission for
review and approval on a confidential basis prior to
the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to
determine whether bidders are willing to lower the

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price of bids that meet the benchmarks approved by the
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and shall
be conducted in a fair and unbiased manner; in
conducting the negotiations, there shall be no
disclosure of any information derived from proposals
submitted by competing bidders; if information is
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the
progress of the procurement process;

SB3292 - 133 - LRB100 20042 SMS 35324 b
(iii) provide an independent confidential report
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans
approved by the Commission for each utility that on
December 31, 2005 provided electric service to at least
100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and
consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), or as otherwise
provided in subsection (b-5) for capacity procurement plans and
capacity procurement processes to be developed and conducted as
required by subsection (b-5), the planning process shall be
conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring

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power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by
July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall cover
the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load, and expected-load
scenario for the load of those retail customers included in
the plan's electric supply service requirements. The
utility shall provide supporting data and assumptions for
each of the scenarios.
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be
procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided to
each affected electric utility. An affected utility shall
have 30 days following the date of posting to provide
comment to the Agency on the procurement plan. Other
interested entities also may comment on the procurement
plan. All comments submitted to the Agency shall be

SB3292 - 135 - LRB100 20042 SMS 35324 b
specific, supported by data or other detailed analyses,
and, if objecting to all or a portion of the procurement
plan, accompanied by specific alternative wording or
proposals. All comments shall be posted on the Agency's and
Commission's websites. During this 30-day comment period,
the Agency shall hold at least one public hearing within
each utility's service area for the purpose of receiving
public comment on the procurement plan. Within 14 days
following the end of the 30-day review period, the Agency
shall revise the procurement plan as necessary based on the
comments received and file the procurement plan with the
Commission and post the procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days after
the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90 days
after the filing of the procurement plan by the Illinois
Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of

SB3292 - 136 - LRB100 20042 SMS 35324 b
price stability. Provided, that for capacity procurement
plans developed under subsection (b-5) of this Section, the
Commission shall approve the capacity procurement plan, as
modified to the extent directed by the Commission, if the
Commission determines that the capacity procurement plan
conforms to the requirements and objectives of subsection
(b-5), including the objective to ensure long-term
resource adequacy at the lowest cost over time, taking into
account the benefits of price stability and the need to
ensure the reliability, adequacy, and resilience of the
bulk power generation and delivery system in the Applicable
Local Resource Zone.
(e) The procurement process shall include each of the
following components:
(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also

SB3292 - 137 - LRB100 20042 SMS 35324 b
administer the prequalification process, including
evaluation of credit worthiness, compliance with
procurement rules, and agreement to the standard form
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,
shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet
generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation
by winning bidders, and the bidders must agree to the terms
of the contract in advance so that winning bids are

SB3292 - 138 - LRB100 20042 SMS 35324 b
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.
As part of the development of the procurement process, the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products that
will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that
difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific
products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals shall
set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for

SB3292 - 139 - LRB100 20042 SMS 35324 b
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event
of supplier default or failure of the procurement process
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if the
amount of supply is 200 megawatts or greater, and if
there are more than 60 days remaining of the contract
term. If both of these conditions are met, and the
default results in termination of the contract, the
utility shall immediately notify the Illinois Power
Agency that a request for proposals must be issued to
procure replacement power, and the procurement
administrator shall run an additional procurement
event. If the contracted supply of the defaulting
supplier is less than 200 megawatts or there are less
than 60 days remaining of the contract term, the
utility shall procure power and energy from the
applicable regional transmission organization market,
including ancillary services, capacity, and day-ahead
or real time energy, or both, for the duration of the
contract term to replace the contracted supply;
provided, however, that if a needed product is not

SB3292 - 140 - LRB100 20042 SMS 35324 b
available through the regional transmission
organization market it shall be purchased from the
wholesale market.
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low
supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that
would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new
request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient

SB3292 - 141 - LRB100 20042 SMS 35324 b
supply provided under contracts awarded through the
procurement process to fully meet the electric
utility's load requirement, the utility shall meet the
load requirement by procuring power and energy from the
applicable regional transmission organization market,
including ancillary services, capacity, and day-ahead
or real time energy, or both; provided, however, that
if a needed product is not available through the
regional transmission organization market it shall be
purchased from the wholesale market.
(6) The procurement process described in this
subsection is exempt from the requirements of the Illinois
Procurement Code, pursuant to Section 20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,
the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria and
other factors observed in the process. The procurement monitor
also shall submit a confidential report to the Commission
within 2 business days after opening the sealed bids. The
report shall contain the procurement monitor's assessment of
bidder behavior in the process as well as an assessment of the
procurement administrator's compliance with the procurement
process and rules. The Commission shall review the confidential

SB3292 - 142 - LRB100 20042 SMS 35324 b
reports submitted by the procurement administrator and
procurement monitor, and shall accept or reject the
recommendations of the procurement administrator within 2
business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility, and
in the case of a capacity procurement event under subsection
(b-5) of this Section, all Load-Serving Entities in the
Applicable Local Resource Zone, shall enter into binding
contractual arrangements with the winning suppliers using the
standard form contracts; except that the utility shall not be
required either directly or indirectly to execute the contracts
if a tariff that is consistent with subsection (l) of this
Section has not been approved and placed into effect for that
utility.
(h) The names of the successful bidders and the load
weighted average of the winning bid prices for each contract
type and for each contract term shall be made available to the
public at the time of Commission approval of a procurement
event. The Commission, the procurement monitor, the
procurement administrator, the Illinois Power Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding information
in a manner consistent with all applicable laws, rules,
regulations, and tariffs. Confidential information, including
the confidential reports submitted by the procurement

SB3292 - 143 - LRB100 20042 SMS 35324 b
administrator and procurement monitor pursuant to subsection
(f) of this Section, shall not be made publicly available and
shall not be discoverable by any party in any proceeding,
absent a compelling demonstration of need, nor shall those
reports be admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other date
as may be required by the Commission from time to time, the
utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs
associated with the procurement and computed in accordance with
the tariffs filed pursuant to subsection (l) of this Section
and approved by the Commission.
(j) Within 60 days following August 28, 2007 (the effective
date of Public Act 95-481), each electric utility that on
December 31, 2005 provided electric service to at least 100,000
customers in Illinois shall prepare and file with the
Commission an initial procurement plan, which shall conform in
all material respects to the requirements of the procurement
plan set forth in subsection (b); provided, however, that the
Illinois Power Agency Act shall not apply to the initial
procurement plan prepared pursuant to this subsection. The
initial procurement plan shall identify the portfolio of power
and energy products to be procured and delivered for the period

SB3292 - 144 - LRB100 20042 SMS 35324 b
June 2008 through May 2009, and shall identify the proposed
procurement administrator, who shall have the same experience
and expertise as is required of a procurement administrator
hired pursuant to Section 1-75 of the Illinois Power Agency
Act. Copies of the procurement plan shall be posted and made
publicly available on the Commission's website. The initial
procurement plan may include contracts for renewable resources
that extend beyond May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be
filed. Within 7 days after the date the utility's response
is due, the Commission shall determine whether a hearing is
necessary. If it determines that a hearing is necessary, it
shall require the hearing to be completed and issue an
order on the procurement plan within 60 days after the
filing of the procurement plan by the electric utility.
(ii) The order shall approve or modify the procurement
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The

SB3292 - 145 - LRB100 20042 SMS 35324 b
Commission shall approve the procurement plan if the
Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(k) (Blank).
(k-5) (Blank).
(l) An electric utility shall recover its costs incurred
under this Section, including, but not limited to, its costs
for capacity procured under subsection (b-5) of this Section,
and the costs of procuring power and energy demand-response
resources under this Section. The utility shall file with the
initial procurement plan its proposed tariffs through which its
costs of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to pass
through both the costs incurred by the utility in procuring a
supply of electric power and energy for the applicable customer
classes with no mark-up or return on the price paid by the
utility for that supply, plus any just and reasonable costs
that the utility incurs in arranging and providing for the
supply of electric power and energy. The formula rate or charge
shall also contain provisions that ensure that its application
does not result in over or under recovery due to changes in
customer usage and demand patterns, and that provide for the

SB3292 - 146 - LRB100 20042 SMS 35324 b
correction, on at least an annual basis, of any accounting
errors that may occur. A utility shall recover through the
tariff all reasonable costs incurred to implement or comply
with any procurement plan that is developed and put into effect
pursuant to Section 1-75 of the Illinois Power Agency Act and
this Section, including any fees assessed by the Illinois Power
Agency, costs associated with load balancing, and contingency
plan costs. The electric utility shall also recover its full
costs of procuring electric supply for which it contracted
before the effective date of this Section in conjunction with
the provision of full requirements service under fixed-price
bundled service tariffs subsequent to December 31, 2006. All
such costs shall be deemed to have been prudently incurred. The
pass-through tariffs that are filed and approved pursuant to
this Section shall not be subject to review under, or in any
way limited by, Section 16-111(i) of this Act. All of the costs
incurred by the electric utility associated with the purchase
of zero emission credits in accordance with subsection (d-5) of
Section 1-75 of the Illinois Power Agency Act and, beginning
June 1, 2017, all of the costs incurred by the electric utility
associated with the purchase of renewable energy resources in
accordance with Sections 1-56 and 1-75 of the Illinois Power
Agency Act, shall be recovered through the electric utility's
tariffed charges applicable to all of its retail customers, as
specified in subsection (k) of Section 16-108 of this Act, and
shall not be recovered through the electric utility's tariffed

SB3292 - 147 - LRB100 20042 SMS 35324 b
charges for electric power and energy supply to its eligible
retail customers.
(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following August 28,
2007 (the effective date of Public Act 95-481).
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and
cost responsibility therefor among themselves in proportion to
their requirements.
(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any recommendations
for change.
(p) An electric utility subject to this Section may propose
to invest, lease, own, or operate an electric generation
facility as part of its procurement plan, provided the utility
demonstrates that such facility is the least-cost option to
provide electric service to those retail customers included in
the plan's electric supply service requirements. If the

SB3292 - 148 - LRB100 20042 SMS 35324 b
facility is shown to be the least-cost option and is included
in a procurement plan prepared in accordance with Section 1-75
of the Illinois Power Agency Act and this Section, then the
electric utility shall make a filing pursuant to Section 8-406
of this Act, and may request of the Commission any statutory
relief required thereunder. If the Commission grants all of the
necessary approvals for the proposed facility, such supply
shall thereafter be considered as a pre-existing contract under
subsection (b) of this Section. The Commission shall in any
order approving a proposal under this subsection specify how
the utility will recover the prudently incurred costs of
investing in, leasing, owning, or operating such generation
facility through just and reasonable rates charged to those
retail customers included in the plan's electric supply service
requirements. Cost recovery for facilities included in the
utility's procurement plan pursuant to this subsection shall
not be subject to review under or in any way limited by the
provisions of Section 16-111(i) of this Act. Nothing in this
Section is intended to prohibit a utility from filing for a
fuel adjustment clause as is otherwise permitted under Section
9-220 of this Act.
(q) If the Illinois Power Agency filed with the Commission,
under Section 16-111.5 of this Act, its proposed procurement
plan for the period commencing June 1, 2017, and the Commission
has not yet entered its final order approving the plan on or
before the effective date of this amendatory Act of the 99th

SB3292 - 149 - LRB100 20042 SMS 35324 b
General Assembly, then the Illinois Power Agency shall file a
notice of withdrawal with the Commission, after the effective
date of this amendatory Act of the 99th General Assembly, to
withdraw the proposed procurement of renewable energy
resources to be approved under the plan, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices using funds previously
collected from electric utilities' retail customers that take
service pursuant to electric utilities' hourly pricing tariff
or tariffs and, for an electric utility that serves less than
100,000 retail customers in the State, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices. Upon receipt of the
notice, the Commission shall enter an order that approves the
withdrawal of the proposed procurement of renewable energy
resources from the plan. The initially proposed procurement of
renewable energy resources shall not be approved or be the
subject of any further hearing, investigation, proceeding, or
order of any kind.
This amendatory Act of the 99th General Assembly preempts
and supersedes any order entered by the Commission that
approved the Illinois Power Agency's procurement plan for the
period commencing June 1, 2017, to the extent it is
inconsistent with the provisions of this amendatory Act of the
99th General Assembly. To the extent any previously entered
order approved the procurement of renewable energy resources,

SB3292 - 150 - LRB100 20042 SMS 35324 b
the portion of that order approving the procurement shall be
void, other than the procurement of renewable energy credits
from distributed renewable energy generation devices using
funds previously collected from electric utilities' retail
customers that take service under electric utilities' hourly
pricing tariff or tariffs and, for an electric utility that
serves less than 100,000 retail customers in the State, other
than the procurement of renewable energy credits for
distributed renewable energy generation devices.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-115A)
Sec. 16-115A. Obligations of alternative retail electric
suppliers.
(a) An alternative retail electric supplier shall:
(i) comply with the requirements imposed on public
utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
8-507 of this Act, to the extent that these Sections have
application to the services being offered by the
alternative retail electric supplier; and
(ii) continue to comply with the requirements for
certification stated in subsection (d) of Section 16-115;
and .
(iii) for delivery years commencing on and after June
1, 2019, comply with the requirements of subsection (h) of
this Section and of subsection (b-5) of Section 16-111.5 of

SB3292 - 151 - LRB100 20042 SMS 35324 b
this Act.
(b) An alternative retail electric supplier shall obtain
verifiable authorization from a customer, in a form or manner
approved by the Commission consistent with Section 2EE of the
Consumer Fraud and Deceptive Business Practices Act, before the
customer is switched from another supplier.
(c) No alternative retail electric supplier, or electric
utility other than the electric utility in whose service area a
customer is located, shall (i) enter into or employ any
arrangements which have the effect of preventing a retail
customer with a maximum electrical demand of less than one
megawatt from having access to the services of the electric
utility in whose service area the customer is located or (ii)
charge retail customers for such access. This subsection shall
not be construed to prevent an arms-length agreement between a
supplier and a retail customer that sets a term of service,
notice period for terminating service and provisions governing
early termination through a tariff or contract as allowed by
Section 16-119.
(d) An alternative retail electric supplier that is
certified to serve residential or small commercial retail
customers shall not:
(1) deny service to a customer or group of customers
nor establish any differences as to prices, terms,
conditions, services, products, facilities, or in any
other respect, whereby such denial or differences are based

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upon race, gender or income.
(2) deny service to a customer or group of customers
based on locality nor establish any unreasonable
difference as to prices, terms, conditions, services,
products, or facilities as between localities.
(e) An alternative retail electric supplier shall comply
with the following requirements with respect to the marketing,
offering and provision of products or services to residential
and small commercial retail customers:
(i) Any marketing materials which make statements
concerning prices, terms and conditions of service shall
contain information that adequately discloses the prices,
terms and conditions of the products or services that the
alternative retail electric supplier is offering or
selling to the customer.
(ii) Before any customer is switched from another
supplier, the alternative retail electric supplier shall
give the customer written information that adequately
discloses, in plain language, the prices, terms and
conditions of the products and services being offered and
sold to the customer.
(iii) An alternative retail electric supplier shall
provide documentation to the Commission and to customers
that substantiates any claims made by the alternative
retail electric supplier regarding the technologies and
fuel types used to generate the electricity offered or sold

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to customers.
(iv) The alternative retail electric supplier shall
provide to the customer (1) itemized billing statements
that describe the products and services provided to the
customer and their prices, and (2) an additional statement,
at least annually, that adequately discloses the average
monthly prices, and the terms and conditions, of the
products and services sold to the customer.
(f) An alternative retail electric supplier may limit the
overall size or availability of a service offering by
specifying one or more of the following: a maximum number of
customers, maximum amount of electric load to be served, time
period during which the offering will be available, or other
comparable limitation, but not including the geographic
locations of customers within the area which the alternative
retail electric supplier is certificated to serve. The
alternative retail electric supplier shall file the terms and
conditions of such service offering including the applicable
limitations with the Commission prior to making the service
offering available to customers.
(g) Nothing in this Section shall be construed as
preventing an alternative retail electric supplier, which is an
affiliate of, or which contracts with, (i) an industry or trade
organization or association, (ii) a membership organization or
association that exists for a purpose other than the purchase
of electricity, or (iii) another organization that meets

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criteria established in a rule adopted by the Commission, from
offering through the organization or association services at
prices, terms and conditions that are available solely to the
members of the organization or association.
(h) Notwithstanding any provision to the contrary in this
Act or the Illinois Power Agency Act, beginning with the
delivery year commencing June 1, 2019, an alternative retail
electric supplier shall use only capacity procured and
allocated to the alternative retail electric supplier through
the processes specified in subsection (b-5) of Section 16-111.5
of this Act to serve retail customers of an Applicable Electric
Utility in an Applicable Local Resource Zone in this State;
provided, that an alternative electric retail supplier may
procure through other means any capacity needed to serve the
load requirements of retail customers of an Applicable Electric
Utility in an Applicable Local Resource Zone in excess of the
capacity procured and allocated to the alternative retail
electric supplier under subsection (b-5) of Section 16-111.5.
An alternative retail electric supplier shall enter into
contracts for capacity, in the form adopted by the procurement
administrator and conforming to the requirements of subsection
(b-5) of Section 16-111.5 of this Act, with capacity suppliers
selected in capacity procurement events conducted under
subsection (b-5) of Section 16-111.5. An alternative retail
electric supplier shall take those actions that are necessary
(i) to participate in capacity procurement events conducted

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under subsection (b-5) of Section 16-111.5 of this Act; and
(ii) to participate in the Fixed Resource Adequacy Plan
capacity procurement option, or a successor capacity
procurement mechanism, under the MISO Tariff using the capacity
procured in capacity procurement events conducted, and
allocated to the alternative retail electric supplier, under
subsection (b-5) of Section 16-111.5 of this Act.
As a condition of the continued effectiveness of the
certificate of service authority of an alternative retail
electric supplier that serves retail customers of an Applicable
Electric Utility in an Applicable Local Resource Zone, the
alternative retail electric supplier shall certify its
compliance with the requirements of this subsection (h) in its
annual reports to the Commission. The Commission shall initiate
a proceeding to revoke the certificate of service authority of
any alternative retail electric supplier that is required by
this subsection (h) to, but does not, certify its compliance
with the requirements of this subsection (h) in an annual
report to the Commission or that the Commission has reason to
believe has failed or is failing to comply with the
requirements of this subsection (h). No certificate of service
authority shall be revoked under this subsection (h) unless and
until the alternative retail electric supplier has received
notice of the proceeding and the grounds on which the
Commission proposes to revoke the certificate of service
authority, and has been provided opportunity for a hearing.

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For purposes of this subsection (h), the terms "Applicable
Electric Utility", "Fixed Resource Adequacy Plan", "Contracted
LSE Capacity", and "MISO Tariff" shall have the meanings set
forth in subsection (b-5) of Section 16-111.5 of this Act, and
the term "Applicable Local Resource Zone" shall have the
meaning set forth in Section 1-75 of the Illinois Power Agency
Act.
(Source: P.A. 90-561, eff. 12-16-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.