100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4285

 

Introduced , by Rep. Linda Chapa LaVia

 

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.


LRB100 16252 RJF 31375 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4285LRB100 16252 RJF 31375 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be referred to as the
5Downstate Illinois Competitive Generation Procurement and
6Reliability Security Act of 2018.
 
7    Section 5. Legislative findings. The General Assembly
8finds and declares:
9    (1) The overall objectives of regulation of the electric
10utility industry in this State, as expressed by the General
11Assembly in the Illinois Power Agency Act and the Public
12Utilities Act, include the provision of adequate, efficient,
13reliable, environmentally safe, and least-cost utility
14services at prices which accurately reflect the long-term cost
15of such services and which are equitable to all citizens.
16    (2) Through previous enactments beginning in 1997, the
17General Assembly has promoted the use of market-based
18solutions, in combination with adequate regulatory oversight,
19to achieve the objectives of adequate, efficient, reliable,
20environmentally safe and least-cost utility services at prices
21which accurately reflect the long-term cost of such services
22and which are equitable to all citizens.
23    (3) To a significant extent, electricity, when generated,

 

 

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1cannot be stored for future use. Rather, for the most part,
2electricity must be generated instantaneously at the time and
3in the amount that it is demanded by consumers. This requires
4that there be sufficient generating capacity available and
5ready to produce electricity to meet the demands of consumers
6within each load zone in this State, 24 hours per day, 7 days
7per week, on every day of the year. Reliable electric service
8at all times is essential to the functioning of a modern
9economy and of society in general. The health, welfare, and
10prosperity of Illinois citizens, including the attractiveness
11of the State of Illinois to business and industry, requires the
12availability of sufficient electric generating capacity to
13meet the demands of consumers and businesses in this State at
14all times.
15    (4) Consistent with the overall objectives of the
16regulation of the electric utility industry in this State,
17regulation should ensure that sufficient generating capacity
18resources are available on a long-term basis to enable the
19electric utility grid to meet the demands of Illinois
20electricity consumers at all times.
21    (5) The Midcontinent Independent System Operator, Inc., or
22MISO, has been established under federal authority as the
23operator of the electric transmission grid serving
24substantially all of the portion of the State of Illinois
25located south of, and some portions located north of,
26Interstate Highway 80, which area is sometimes referred to as

 

 

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1MISO Zone 4. Overall, MISO's geographic footprint and
2responsibilities as operator of the electric transmission grid
3covers numerous states and multiple load zones. As part of its
4responsibilities, MISO imposes requirements on load-serving
5entities serving electricity consumers in each of MISO's load
6zones for the purpose of ensuring that the load-serving
7entities have access to sufficient electrical generating
8capacity to meet the demands of their customers at all times.
9MISO conducts competitive auctions for the procurement of
10capacity for each of MISO's load zones, which result in the
11establishment of indicative prices for capacity in each load
12zone.
13    (6) All but one of the other MISO load zones in other
14states are unlike Illinois in that electric service in those
15states is provided by vertically integrated electric utilities
16that are subject to traditional cost-based regulation by a
17state utility commission, and there is not a competitive retail
18electricity market in which consumers are allowed to choose
19their electricity suppliers. The processes used by MISO to
20procure and price electric generating capacity in load zones
21located in these other states are not suitable for Illinois,
22which has a competitive retail electricity market and in which
23the major electric utilities no longer own electric generating
24facilities, but obtain electric capacity to meet their
25requirements through competitive wholesale electricity
26markets.

 

 

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1    (7) Prices for electric generating capacity resulting from
2MISO's capacity auctions for Zone 4 have not been stable, but
3have fluctuated significantly in recent years, from a high of
4$150 per megawatt-day in 2015 to a low of $1.50 per
5megawatt-day in 2017. Electric capacity prices that fluctuate
6dramatically, by a factor of 100 to one nearly year to year,
7result in retail electricity prices that impose uncertainty,
8disruption, and potential hardships on consumers and
9businesses in Illinois.
10    (8) Further, the prices for electric generating capacity in
11MISO Zone 4 resulting from several of MISO's recent capacity
12auctions have not been sufficient to incentivize the
13development of new electric generating capacity resources that
14will be committed to serve the demands of electricity consumers
15in Zone 4 over the long run, and in fact, have not been
16sufficient to enable some electric generating facilities
17located within Zone 4 to remain in operation. Electric
18generating facilities are long-lived facilities requiring
19substantial capital investments. Long-term pricing stability,
20at levels sufficient to support the substantial capital
21investment, is necessary to encourage the development of new
22electric generating facilities and to enable existing electric
23generating facilities to remain in operation.
24    (9) Since 2015, electric generating facilities located in
25Illinois within Zone 4 with generating capacity, in the
26aggregate, of more than 1,100 megawatts have been permanently

 

 

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1retired so that this capacity is no longer available to serve
2the demands of Illinois electricity consumers. In this same
3period, additional electric generating facilities with
4capacity of 600 megawatts have been placed into "mothballed"
5status so that this capacity presently is not available to
6serve the needs of Illinois electricity consumers. It is
7estimated that additional electric generating facilities
8located in Illinois within Zone 4 with generating capacity, in
9the aggregate, of at least 3,000 megawatts is currently at risk
10of retirement in light of low prices for electric generating
11capacity prevailing in Zone 4.
12    (10) MISO has advised the Governor of the State of Illinois
13and the leadership of the General Assembly that MISO prefers
14state-based solutions to achieving resource adequacy and
15ensuring that sufficient electric resources continue to be
16available in downstate Illinois to maintain reliable service
17for consumers at times of peak electricity demand, and that
18additional action is needed in downstate Illinois to maintain
19reliability of electric service. MISO has further stated that
20without further action to develop an Illinois-based solution
21for long term adequacy of electric capacity resources in
22downstate Illinois, the outlook for reliable electric service
23in downstate Illinois is unclear and uncertain from year to
24year.
25    (11) Consistent with MISO's recommendations, there is a
26need to establish an Illinois-specific process for procuring

 

 

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1electric capacity to meet the needs of electricity consumers in
2MISO Zone 4 that are served by Illinois electric utilities and
3alternative retail electric suppliers. Such a process should
4(i) be consistent to the extent feasible with existing
5processes of MISO; (ii) rely to the extent feasible on
6competitive market-based approaches; (iii) provide for the
7procurement of electric generating capacity, to the maximum
8extent feasible, on a long-term forward basis of at least 3
9years, rather than on a shorter-term basis, in order to provide
10incentives for the development of new electric generating
11facilities and the retention of existing electric generating
12facilities that are and will be committed to serving the
13electricity requirements of electricity consumers within MISO
14Zone 4 in Illinois; (iv) be open to all forms of electric
15generating capacity that meet MISO's operational and
16availability requirements; and (v) be administered and
17overseen by the Illinois Power Agency and the Illinois Commerce
18Commission.
19    (12) The General Assembly therefore finds and declares that
20it is necessary for the health, welfare, and prosperity of the
21citizens and businesses of Illinois located within the portion
22of Illinois encompassed by MISO Zone 4, to establish and
23implement an Illinois-specific process for securing electric
24generation resource adequacy and stable pricing for electric
25capacity within MISO Zone 4, through the adoption of this Act.
 

 

 

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1    Section 10. The Illinois Power Agency Act is amended by
2changing Sections 1-20 and 1-75 as follows:
 
3    (20 ILCS 3855/1-20)
4    Sec. 1-20. General powers of the Agency.
5    (a) The Agency is authorized to do each of the following:
6        (1) Develop electricity procurement plans to ensure
7    adequate, reliable, affordable, efficient, and
8    environmentally sustainable electric service at the lowest
9    total cost over time, taking into account any benefits of
10    price stability, for electric utilities that on December
11    31, 2005 provided electric service to at least 100,000
12    customers in Illinois and for small multi-jurisdictional
13    electric utilities that (A) on December 31, 2005 served
14    less than 100,000 customers in Illinois and (B) request a
15    procurement plan for their Illinois jurisdictional load.
16    Except as provided in paragraph (1.5) of this subsection
17    (a), the electricity procurement plans shall be updated on
18    an annual basis and shall include electricity generated
19    from renewable resources sufficient to achieve the
20    standards specified in this Act. Beginning with the
21    delivery year commencing June 1, 2017, develop procurement
22    plans to include zero emission credits generated from zero
23    emission facilities sufficient to achieve the standards
24    specified in this Act.
25        (1.5) Develop a long-term renewable resources

 

 

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1    procurement plan in accordance with subsection (c) of
2    Section 1-75 of this Act for renewable energy credits in
3    amounts sufficient to achieve the standards specified in
4    this Act for delivery years commencing June 1, 2017 and for
5    the programs and renewable energy credits specified in
6    Section 1-56 of this Act. Electricity procurement plans for
7    delivery years commencing after May 31, 2017, shall not
8    include procurement of renewable energy resources.
9        (2) Conduct competitive procurement processes to
10    procure the supply resources identified in the electricity
11    procurement plan, pursuant to Section 16-111.5 of the
12    Public Utilities Act, and, for the delivery year commencing
13    June 1, 2017, conduct procurement processes to procure zero
14    emission credits from zero emission facilities, under
15    subsection (d-5) of Section 1-75 of this Act.
16        (2.5) Beginning with the procurement for the 2017
17    delivery year, conduct competitive procurement processes
18    and implement programs to procure renewable energy credits
19    identified in the long-term renewable resources
20    procurement plan developed and approved under subsection
21    (c) of Section 1-75 of this Act and Section 16-111.5 of the
22    Public Utilities Act.
23        (2.10) Beginning with the procurement for the delivery
24    year commencing June 1, 2019, develop capacity procurement
25    plans and conduct competitive procurement processes for
26    the procurement of capacity needed to ensure long-term

 

 

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1    resource adequacy at the lowest cost over time, taking into
2    account the benefits of price stability and the need to
3    ensure the reliability, adequacy, and resilience of the
4    bulk power generation and delivery system in the Applicable
5    Local Resource Zone, as defined in Section 1-75 of this
6    Act, to meet the capacity requirements of the retail
7    customers of electric utilities that serve less than
8    3,000,000 retail customers, but more than 500,000 retail
9    customers in this State.
10        (3) Develop electric generation and co-generation
11    facilities that use indigenous coal or renewable
12    resources, or both, financed with bonds issued by the
13    Illinois Finance Authority.
14        (4) Supply electricity from the Agency's facilities at
15    cost to one or more of the following: municipal electric
16    systems, governmental aggregators, or rural electric
17    cooperatives in Illinois.
18    (b) Except as otherwise limited by this Act, the Agency has
19all of the powers necessary or convenient to carry out the
20purposes and provisions of this Act, including without
21limitation, each of the following:
22        (1) To have a corporate seal, and to alter that seal at
23    pleasure, and to use it by causing it or a facsimile to be
24    affixed or impressed or reproduced in any other manner.
25        (2) To use the services of the Illinois Finance
26    Authority necessary to carry out the Agency's purposes.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    described in this Act.
2        (25) To conduct competitive gasification feedstock
3    procurement processes to procure the feedstocks for the
4    clean coal SNG brownfield facility in accordance with the
5    requirements of Section 1-78 of this Act.
6        (26) To review, revise, and approve sourcing
7    agreements and mediate and resolve disputes between gas
8    utilities and the clean coal SNG brownfield facility
9    pursuant to subsection (h-1) of Section 9-220 of the Public
10    Utilities Act.
11        (27) To request, review and accept proposals, execute
12    contracts, purchase renewable energy credits and otherwise
13    dedicate funds from the Illinois Power Agency Renewable
14    Energy Resources Fund to create and carry out the
15    objectives of the Illinois Solar for All program in
16    accordance with Section 1-56 of this Act.
17(Source: P.A. 99-906, eff. 6-1-17.)
 
18    (20 ILCS 3855/1-75)
19    Sec. 1-75. Planning and Procurement Bureau. The Planning
20and Procurement Bureau has the following duties and
21responsibilities:
22    (a) The Planning and Procurement Bureau shall each year,
23beginning in 2008, develop procurement plans and conduct
24competitive procurement processes in accordance with the
25requirements of Section 16-111.5 of the Public Utilities Act

 

 

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1for the eligible retail customers of electric utilities that on
2December 31, 2005 provided electric service to at least 100,000
3customers in Illinois. Beginning with the delivery year
4commencing on June 1, 2017, the Planning and Procurement Bureau
5shall develop plans and processes for the procurement of zero
6emission credits from zero emission facilities in accordance
7with the requirements of subsection (d-5) of this Section. The
8Planning and Procurement Bureau shall also develop procurement
9plans and conduct competitive procurement processes in
10accordance with the requirements of Section 16-111.5 of the
11Public Utilities Act for the eligible retail customers of small
12multi-jurisdictional electric utilities that (i) on December
1331, 2005 served less than 100,000 customers in Illinois and
14(ii) request a procurement plan for their Illinois
15jurisdictional load. This Section shall not apply to a small
16multi-jurisdictional utility until such time as a small
17multi-jurisdictional utility requests the Agency to prepare a
18procurement plan for their Illinois jurisdictional load. For
19the purposes of this Section, the term "eligible retail
20customers" has the same definition as found in Section
2116-111.5(a) of the Public Utilities Act.
22    Beginning with the plan or plans to be implemented in the
232017 delivery year, the Agency shall no longer include the
24procurement of renewable energy resources in the annual
25procurement plans required by this subsection (a), except as
26provided in subsection (q) of Section 16-111.5 of the Public

 

 

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1Utilities Act, and shall instead develop a long-term renewable
2resources procurement plan in accordance with subsection (c) of
3this Section and Section 16-111.5 of the Public Utilities Act.
4    Beginning with the procurement for the delivery year
5commencing June 1, 2019, the Planning and Procurement Bureau
6shall for each year develop plans and processes for and conduct
7competitive procurement processes in accordance with
8subsection (b-5) of Section 16-111.5 of the Public Utilities
9Act and paragraph (2.10) of subsection (a) of Section 1-20 of
10this Act, the results of which shall be subject to approval of
11the Commission in accordance with subsection (f) of Section
1216-111.5 of the Public Utilities Act, for the procurement of
13capacity needed to meet the capacity requirements of the retail
14customers of electric utilities that serve less than 3,000,000
15retail customers, but more than 500,000 retail customers in
16this State and are located in the Applicable Local Resource
17Zone of the Midcontinent Independent System Operator, Inc., or
18its successor. For purposes of this Section, "Local Resource
19Zone" shall have the meaning set forth in the open access
20transmission and energy markets tariff of the Midcontinent
21Independent System Operator, Inc., or its successor, as such
22tariff may be updated from time to time, and "Applicable Local
23Resource Zone" means the Local Resource Zone or Zones within
24the Midcontinent Independent System Operator, that incorporate
25all retail customers of electric utilities that serve less than
263,000,000 retail customers, but more than 500,000 retail

 

 

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

 

 

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

 

 

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

 

 

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1    the qualified experts or expert consulting firms to develop
2    a procurement plan for the affected utilities and to serve
3    as procurement administrator.
4        (5) The Agency shall select an expert or expert
5    consulting firm to develop procurement plans based on the
6    proposals submitted and shall award contracts of up to 5
7    years to those selected.
8        (6) The Agency shall select an expert or expert
9    consulting firm, with approval of the Commission, to serve
10    as procurement administrator based on the proposals
11    submitted. If the Commission rejects, within 5 days, the
12    Agency's selection, the Agency shall submit another
13    recommendation within 3 days based on the proposals
14    submitted. The Agency shall award a 5-year contract to the
15    expert or expert consulting firm so selected with
16    Commission approval.
17    (b) The experts or expert consulting firms retained by the
18Agency shall, as appropriate, prepare procurement plans, and
19conduct a competitive procurement process as prescribed in
20Section 16-111.5 of the Public Utilities Act, to ensure
21adequate, reliable, affordable, efficient, and environmentally
22sustainable electric service at the lowest total cost over
23time, taking into account any benefits of price stability, for
24eligible retail customers of electric utilities that on
25December 31, 2005 provided electric service to at least 100,000
26customers in the State of Illinois, and for eligible Illinois

 

 

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1retail customers of small multi-jurisdictional electric
2utilities that (i) on December 31, 2005 served less than
3100,000 customers in Illinois and (ii) request a procurement
4plan for their Illinois jurisdictional load.
5    (c) Renewable portfolio standard.
6        (1)(A) The Agency shall develop a long-term renewable
7    resources procurement plan that shall include procurement
8    programs and competitive procurement events necessary to
9    meet the goals set forth in this subsection (c). The
10    initial long-term renewable resources procurement plan
11    shall be released for comment no later than 160 days after
12    June 1, 2017 (the effective date of Public Act 99-906) this
13    amendatory Act of the 99th General Assembly. The Agency
14    shall review, and may revise on an expedited basis, the
15    long-term renewable resources procurement plan at least
16    every 2 years, which shall be conducted in conjunction with
17    the procurement plan under Section 16-111.5 of the Public
18    Utilities Act to the extent practicable to minimize
19    administrative expense. The long-term renewable resources
20    procurement plans shall be subject to review and approval
21    by the Commission under Section 16-111.5 of the Public
22    Utilities Act.
23        (B) Subject to subparagraph (F) of this paragraph (1),
24    the long-term renewable resources procurement plan shall
25    include the goals for procurement of renewable energy
26    credits to meet at least the following overall percentages:

 

 

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

 

 

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1    customers who are not eligible retail customers, which
2    applicable portion shall equal 75% of the utility's load
3    for retail customers who are not eligible retail customers
4    on February 28, 2017.
5        For the delivery year beginning June 1, 2019, and for
6    each year thereafter, the procurement plans shall include
7    cost-effective renewable energy resources equal to a
8    minimum percentage of each utility's load for all retail
9    customers as follows: 16% by June 1, 2019; increasing by
10    1.5% each year thereafter to 25% by June 1, 2025; and 25%
11    by June 1, 2026 and each year thereafter.
12        For each delivery year, the Agency shall first
13    recognize each utility's obligations for that delivery
14    year under existing contracts. Any renewable energy
15    credits under existing contracts, including renewable
16    energy credits as part of renewable energy resources, shall
17    be used to meet the goals set forth in this subsection (c)
18    for the delivery year.
19        (C) Of the renewable energy credits procured under this
20    subsection (c), at least 75% shall come from wind and
21    photovoltaic projects. The long-term renewable resources
22    procurement plan described in subparagraph (A) of this
23    paragraph (1) shall include the procurement of renewable
24    energy credits in amounts equal to at least the following:
25            (i) By the end of the 2020 delivery year:
26                At least 2,000,000 renewable energy credits

 

 

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1            for each delivery year shall come from new wind
2            projects; and
3                At least 2,000,000 renewable energy credits
4            for each delivery year shall come from new
5            photovoltaic projects; of that amount, to the
6            extent possible, the Agency shall procure: at
7            least 50% from solar photovoltaic projects using
8            the program outlined in subparagraph (K) of this
9            paragraph (1) from distributed renewable energy
10            generation devices or community renewable
11            generation projects; at least 40% from
12            utility-scale solar projects; at least 2% from
13            brownfield site photovoltaic projects that are not
14            community renewable generation projects; and the
15            remainder shall be determined through the
16            long-term planning process described in
17            subparagraph (A) of this paragraph (1).
18            (ii) By the end of the 2025 delivery year:
19                At least 3,000,000 renewable energy credits
20            for each delivery year shall come from new wind
21            projects; and
22                At least 3,000,000 renewable energy credits
23            for each delivery year shall come from new
24            photovoltaic projects; of that amount, to the
25            extent possible, the Agency shall procure: at
26            least 50% from solar photovoltaic projects using

 

 

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1            the program outlined in subparagraph (K) of this
2            paragraph (1) from distributed renewable energy
3            devices or community renewable generation
4            projects; at least 40% from utility-scale solar
5            projects; at least 2% from brownfield site
6            photovoltaic projects that are not community
7            renewable generation projects; and the remainder
8            shall be determined through the long-term planning
9            process described in subparagraph (A) of this
10            paragraph (1).
11            (iii) By the end of the 2030 delivery year:
12                At least 4,000,000 renewable energy credits
13            for each delivery year shall come from new wind
14            projects; and
15                At least 4,000,000 renewable energy credits
16            for each delivery year shall come from new
17            photovoltaic projects; of that amount, to the
18            extent possible, the Agency shall procure: at
19            least 50% from solar photovoltaic projects using
20            the program outlined in subparagraph (K) of this
21            paragraph (1) from distributed renewable energy
22            devices or community renewable generation
23            projects; at least 40% from utility-scale solar
24            projects; at least 2% from brownfield site
25            photovoltaic projects that are not community
26            renewable generation projects; and the remainder

 

 

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1            shall be determined through the long-term planning
2            process described in subparagraph (A) of this
3            paragraph (1).
4            For purposes of this Section:
5                "New wind projects" means wind renewable
6            energy facilities that are energized after June 1,
7            2017 for the delivery year commencing June 1, 2017
8            or within 3 years after the date the Commission
9            approves contracts for subsequent delivery years.
10                "New photovoltaic projects" means photovoltaic
11            renewable energy facilities that are energized
12            after June 1, 2017. Photovoltaic projects
13            developed under Section 1-56 of this Act shall not
14            apply towards the new photovoltaic project
15            requirements in this subparagraph (C).
16        (D) Renewable energy credits shall be cost effective.
17    For purposes of this subsection (c), "cost effective" means
18    that the costs of procuring renewable energy resources do
19    not cause the limit stated in subparagraph (E) of this
20    paragraph (1) to be exceeded and, for renewable energy
21    credits procured through a competitive procurement event,
22    do not exceed benchmarks based on market prices for like
23    products in the region. For purposes of this subsection
24    (c), "like products" means contracts for renewable energy
25    credits from the same or substantially similar technology,
26    same or substantially similar vintage (new or existing),

 

 

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1    the same or substantially similar quantity, and the same or
2    substantially similar contract length and structure.
3    Benchmarks shall be developed by the procurement
4    administrator, in consultation with the Commission staff,
5    Agency staff, and the procurement monitor and shall be
6    subject to Commission review and approval. If price
7    benchmarks for like products in the region are not
8    available, the procurement administrator shall establish
9    price benchmarks based on publicly available data on
10    regional technology costs and expected current and future
11    regional energy prices. The benchmarks in this Section
12    shall not be used to curtail or otherwise reduce
13    contractual obligations entered into by or through the
14    Agency prior to June 1, 2017 (the effective date of Public
15    Act 99-906) this amendatory Act of the 99th General
16    Assembly.
17        (E) For purposes of this subsection (c), the required
18    procurement of cost-effective renewable energy resources
19    for a particular year commencing prior to June 1, 2017
20    shall be measured as a percentage of the actual amount of
21    electricity (megawatt-hours) supplied by the electric
22    utility to eligible retail customers in the delivery year
23    ending immediately prior to the procurement, and, for
24    delivery years commencing on and after June 1, 2017, the
25    required procurement of cost-effective renewable energy
26    resources for a particular year shall be measured as a

 

 

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1    percentage of the actual amount of electricity
2    (megawatt-hours) delivered by the electric utility in the
3    delivery year ending immediately prior to the procurement,
4    to all retail customers in its service territory. For
5    purposes of this subsection (c), the amount paid per
6    kilowatthour means the total amount paid for electric
7    service expressed on a per kilowatthour basis. For purposes
8    of this subsection (c), the total amount paid for electric
9    service includes without limitation amounts paid for
10    supply, transmission, distribution, surcharges, and add-on
11    taxes.
12        Notwithstanding the requirements of this subsection
13    (c), the total of renewable energy resources procured under
14    the procurement plan for any single year shall be subject
15    to the limitations of this subparagraph (E). Such
16    procurement shall be reduced for all retail customers based
17    on the amount necessary to limit the annual estimated
18    average net increase due to the costs of these resources
19    included in the amounts paid by eligible retail customers
20    in connection with electric service to no more than the
21    greater of 2.015% of the amount paid per kilowatthour by
22    those customers during the year ending May 31, 2007 or the
23    incremental amount per kilowatthour paid for these
24    resources in 2011. To arrive at a maximum dollar amount of
25    renewable energy resources to be procured for the
26    particular delivery year, the resulting per kilowatthour

 

 

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1    amount shall be applied to the actual amount of
2    kilowatthours of electricity delivered, or applicable
3    portion of such amount as specified in paragraph (1) of
4    this subsection (c), as applicable, by the electric utility
5    in the delivery year immediately prior to the procurement
6    to all retail customers in its service territory. The
7    calculations required by this subparagraph (E) shall be
8    made only once for each delivery year at the time that the
9    renewable energy resources are procured. Once the
10    determination as to the amount of renewable energy
11    resources to procure is made based on the calculations set
12    forth in this subparagraph (E) and the contracts procuring
13    those amounts are executed, no subsequent rate impact
14    determinations shall be made and no adjustments to those
15    contract amounts shall be allowed. All costs incurred under
16    such contracts shall be fully recoverable by the electric
17    utility as provided in this Section.
18        (F) If the limitation on the amount of renewable energy
19    resources procured in subparagraph (E) of this paragraph
20    (1) prevents the Agency from meeting all of the goals in
21    this subsection (c), the Agency's long-term plan shall
22    prioritize compliance with the requirements of this
23    subsection (c) regarding renewable energy credits in the
24    following order:
25            (i) renewable energy credits under existing
26        contractual obligations;

 

 

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1            (i-5) funding for the Illinois Solar for All
2        Program, as described in subparagraph (O) of this
3        paragraph (1);
4            (ii) renewable energy credits necessary to comply
5        with the new wind and new photovoltaic procurement
6        requirements described in items (i) through (iii) of
7        subparagraph (C) of this paragraph (1); and
8            (iii) renewable energy credits necessary to meet
9        the remaining requirements of this subsection (c).
10        (G) The following provisions shall apply to the
11    Agency's procurement of renewable energy credits under
12    this subsection (c):
13            (i) Notwithstanding whether a long-term renewable
14        resources procurement plan has been approved, the
15        Agency shall conduct an initial forward procurement
16        for renewable energy credits from new utility-scale
17        wind projects within 160 days after June 1, 2017 (the
18        effective date of Public Act 99-906) this amendatory
19        Act of the 99th General Assembly. For the purposes of
20        this initial forward procurement, the Agency shall
21        solicit 15-year contracts for delivery of 1,000,000
22        renewable energy credits delivered annually from new
23        utility-scale wind projects to begin delivery on June
24        1, 2019, if available, but not later than June 1, 2021.
25        Payments to suppliers of renewable energy credits
26        shall commence upon delivery. Renewable energy credits

 

 

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1        procured under this initial procurement shall be
2        included in the Agency's long-term plan and shall apply
3        to all renewable energy goals in this subsection (c).
4            (ii) Notwithstanding whether a long-term renewable
5        resources procurement plan has been approved, the
6        Agency shall conduct an initial forward procurement
7        for renewable energy credits from new utility-scale
8        solar projects and brownfield site photovoltaic
9        projects within one year after June 1, 2017 (the
10        effective date of Public Act 99-906) this amendatory
11        Act of the 99th General Assembly. For the purposes of
12        this initial forward procurement, the Agency shall
13        solicit 15-year contracts for delivery of 1,000,000
14        renewable energy credits delivered annually from new
15        utility-scale solar projects and brownfield site
16        photovoltaic projects to begin delivery on June 1,
17        2019, if available, but not later than June 1, 2021.
18        The Agency may structure this initial procurement in
19        one or more discrete procurement events. Payments to
20        suppliers of renewable energy credits shall commence
21        upon delivery. Renewable energy credits procured under
22        this initial procurement shall be included in the
23        Agency's long-term plan and shall apply to all
24        renewable energy goals in this subsection (c).
25            (iii) Subsequent forward procurements for
26        utility-scale wind projects shall solicit at least

 

 

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1        1,000,000 renewable energy credits delivered annually
2        per procurement event and shall be planned, scheduled,
3        and designed such that the cumulative amount of
4        renewable energy credits delivered from all new wind
5        projects in each delivery year shall not exceed the
6        Agency's projection of the cumulative amount of
7        renewable energy credits that will be delivered from
8        all new photovoltaic projects, including utility-scale
9        and distributed photovoltaic devices, in the same
10        delivery year at the time scheduled for wind contract
11        delivery.
12            (iv) If, at any time after the time set for
13        delivery of renewable energy credits pursuant to the
14        initial procurements in items (i) and (ii) of this
15        subparagraph (G), the cumulative amount of renewable
16        energy credits projected to be delivered from all new
17        wind projects in a given delivery year exceeds the
18        cumulative amount of renewable energy credits
19        projected to be delivered from all new photovoltaic
20        projects in that delivery year by 200,000 or more
21        renewable energy credits, then the Agency shall within
22        60 days adjust the procurement programs in the
23        long-term renewable resources procurement plan to
24        ensure that the projected cumulative amount of
25        renewable energy credits to be delivered from all new
26        wind projects does not exceed the projected cumulative

 

 

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1        amount of renewable energy credits to be delivered from
2        all new photovoltaic projects by 200,000 or more
3        renewable energy credits, provided that nothing in
4        this Section shall preclude the projected cumulative
5        amount of renewable energy credits to be delivered from
6        all new photovoltaic projects from exceeding the
7        projected cumulative amount of renewable energy
8        credits to be delivered from all new wind projects in
9        each delivery year and provided further that nothing in
10        this item (iv) shall require the curtailment of an
11        executed contract. The Agency shall update, on a
12        quarterly basis, its projection of the renewable
13        energy credits to be delivered from all projects in
14        each delivery year. Notwithstanding anything to the
15        contrary, the Agency may adjust the timing of
16        procurement events conducted under this subparagraph
17        (G). The long-term renewable resources procurement
18        plan shall set forth the process by which the
19        adjustments may be made.
20            (v) All procurements under this subparagraph (G)
21        shall comply with the geographic requirements in
22        subparagraph (I) of this paragraph (1) and shall follow
23        the procurement processes and procedures described in
24        this Section and Section 16-111.5 of the Public
25        Utilities Act to the extent practicable, and these
26        processes and procedures may be expedited to

 

 

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1        accommodate the schedule established by this
2        subparagraph (G).
3        (H) The procurement of renewable energy resources for a
4    given delivery year shall be reduced as described in this
5    subparagraph (H) if an alternative alternate retail
6    electric supplier meets the requirements described in this
7    subparagraph (H).
8            (i) Within 45 days after June 1, 2017 (the
9        effective date of Public Act 99-906) this amendatory
10        Act of the 99th General Assembly, an alternative retail
11        electric supplier or its successor shall submit an
12        informational filing to the Illinois Commerce
13        Commission certifying that, as of December 31, 2015,
14        the alternative retail electric supplier owned one or
15        more electric generating facilities that generates
16        renewable energy resources as defined in Section 1-10
17        of this Act, provided that such facilities are not
18        powered by wind or photovoltaics, and the facilities
19        generate one renewable energy credit for each
20        megawatthour of energy produced from the facility.
21            The informational filing shall identify each
22        facility that was eligible to satisfy the alternative
23        retail electric supplier's obligations under Section
24        16-115D of the Public Utilities Act as described in
25        this item (i).
26            (ii) For a given delivery year, the alternative

 

 

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1        retail electric supplier may elect to supply its retail
2        customers with renewable energy credits from the
3        facility or facilities described in item (i) of this
4        subparagraph (H) that continue to be owned by the
5        alternative retail electric supplier.
6            (iii) The alternative retail electric supplier
7        shall notify the Agency and the applicable utility, no
8        later than February 28 of the year preceding the
9        applicable delivery year or 15 days after June 1, 2017
10        (the effective date of Public Act 99-906) this
11        amendatory Act of the 99th General Assembly, whichever
12        is later, of its election under item (ii) of this
13        subparagraph (H) to supply renewable energy credits to
14        retail customers of the utility. Such election shall
15        identify the amount of renewable energy credits to be
16        supplied by the alternative retail electric supplier
17        to the utility's retail customers and the source of the
18        renewable energy credits identified in the
19        informational filing as described in item (i) of this
20        subparagraph (H), subject to the following
21        limitations:
22                For the delivery year beginning June 1, 2018,
23            the maximum amount of renewable energy credits to
24            be supplied by an alternative retail electric
25            supplier under this subparagraph (H) shall be 68%
26            multiplied by 25% multiplied by 14.5% multiplied

 

 

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1            by the amount of metered electricity
2            (megawatt-hours) delivered by the alternative
3            retail electric supplier to Illinois retail
4            customers during the delivery year ending May 31,
5            2016.
6                For delivery years beginning June 1, 2019 and
7            each year thereafter, the maximum amount of
8            renewable energy credits to be supplied by an
9            alternative retail electric supplier under this
10            subparagraph (H) shall be 68% multiplied by 50%
11            multiplied by 16% multiplied by the amount of
12            metered electricity (megawatt-hours) delivered by
13            the alternative retail electric supplier to
14            Illinois retail customers during the delivery year
15            ending May 31, 2016, provided that the 16% value
16            shall increase by 1.5% each delivery year
17            thereafter to 25% by the delivery year beginning
18            June 1, 2025, and thereafter the 25% value shall
19            apply to each delivery year.
20            For each delivery year, the total amount of
21        renewable energy credits supplied by all alternative
22        retail electric suppliers under this subparagraph (H)
23        shall not exceed 9% of the Illinois target renewable
24        energy credit quantity. The Illinois target renewable
25        energy credit quantity for the delivery year beginning
26        June 1, 2018 is 14.5% multiplied by the total amount of

 

 

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1        metered electricity (megawatt-hours) delivered in the
2        delivery year immediately preceding that delivery
3        year, provided that the 14.5% shall increase by 1.5%
4        each delivery year thereafter to 25% by the delivery
5        year beginning June 1, 2025, and thereafter the 25%
6        value shall apply to each delivery year.
7            If the requirements set forth in items (i) through
8        (iii) of this subparagraph (H) are met, the charges
9        that would otherwise be applicable to the retail
10        customers of the alternative retail electric supplier
11        under paragraph (6) of this subsection (c) for the
12        applicable delivery year shall be reduced by the ratio
13        of the quantity of renewable energy credits supplied by
14        the alternative retail electric supplier compared to
15        that supplier's target renewable energy credit
16        quantity. The supplier's target renewable energy
17        credit quantity for the delivery year beginning June 1,
18        2018 is 14.5% multiplied by the total amount of metered
19        electricity (megawatt-hours) delivered by the
20        alternative retail supplier in that delivery year,
21        provided that the 14.5% shall increase by 1.5% each
22        delivery year thereafter to 25% by the delivery year
23        beginning June 1, 2025, and thereafter the 25% value
24        shall apply to each delivery year.
25            On or before April 1 of each year, the Agency shall
26        annually publish a report on its website that

 

 

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1        identifies the aggregate amount of renewable energy
2        credits supplied by alternative retail electric
3        suppliers under this subparagraph (H).
4        (I) The Agency shall design its long-term renewable
5    energy procurement plan to maximize the State's interest in
6    the health, safety, and welfare of its residents, including
7    but not limited to minimizing sulfur dioxide, nitrogen
8    oxide, particulate matter and other pollution that
9    adversely affects public health in this State, increasing
10    fuel and resource diversity in this State, enhancing the
11    reliability and resiliency of the electricity distribution
12    system in this State, meeting goals to limit carbon dioxide
13    emissions under federal or State law, and contributing to a
14    cleaner and healthier environment for the citizens of this
15    State. In order to further these legislative purposes,
16    renewable energy credits shall be eligible to be counted
17    toward the renewable energy requirements of this
18    subsection (c) if they are generated from facilities
19    located in this State. The Agency may qualify renewable
20    energy credits from facilities located in states adjacent
21    to Illinois if the generator demonstrates and the Agency
22    determines that the operation of such facility or
23    facilities will help promote the State's interest in the
24    health, safety, and welfare of its residents based on the
25    public interest criteria described above. To ensure that
26    the public interest criteria are applied to the procurement

 

 

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1    and given full effect, the Agency's long-term procurement
2    plan shall describe in detail how each public interest
3    factor shall be considered and weighted for facilities
4    located in states adjacent to Illinois.
5        (J) In order to promote the competitive development of
6    renewable energy resources in furtherance of the State's
7    interest in the health, safety, and welfare of its
8    residents, renewable energy credits shall not be eligible
9    to be counted toward the renewable energy requirements of
10    this subsection (c) if they are sourced from a generating
11    unit whose costs were being recovered through rates
12    regulated by this State or any other state or states on or
13    after January 1, 2017. Each contract executed to purchase
14    renewable energy credits under this subsection (c) shall
15    provide for the contract's termination if the costs of the
16    generating unit supplying the renewable energy credits
17    subsequently begin to be recovered through rates regulated
18    by this State or any other state or states; and each
19    contract shall further provide that, in that event, the
20    supplier of the credits must return 110% of all payments
21    received under the contract. Amounts returned under the
22    requirements of this subparagraph (J) shall be retained by
23    the utility and all of these amounts shall be used for the
24    procurement of additional renewable energy credits from
25    new wind or new photovoltaic resources as defined in this
26    subsection (c). The long-term plan shall provide that these

 

 

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1    renewable energy credits shall be procured in the next
2    procurement event.
3        Notwithstanding the limitations of this subparagraph
4    (J), renewable energy credits sourced from generating
5    units that are constructed, purchased, owned, or leased by
6    an electric utility as part of an approved project,
7    program, or pilot under Section 1-56 of this Act shall be
8    eligible to be counted toward the renewable energy
9    requirements of this subsection (c), regardless of how the
10    costs of these units are recovered.
11        (K) The long-term renewable resources procurement plan
12    developed by the Agency in accordance with subparagraph (A)
13    of this paragraph (1) shall include an Adjustable Block
14    program for the procurement of renewable energy credits
15    from new photovoltaic projects that are distributed
16    renewable energy generation devices or new photovoltaic
17    community renewable generation projects. The Adjustable
18    Block program shall be designed to provide a transparent
19    schedule of prices and quantities to enable the
20    photovoltaic market to scale up and for renewable energy
21    credit prices to adjust at a predictable rate over time.
22    The prices set by the Adjustable Block program can be
23    reflected as a set value or as the product of a formula.
24        The Adjustable Block program shall include for each
25    category of eligible projects: a schedule of standard block
26    purchase prices to be offered; a series of steps, with

 

 

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1    associated nameplate capacity and purchase prices that
2    adjust from step to step; and automatic opening of the next
3    step as soon as the nameplate capacity and available
4    purchase prices for an open step are fully committed or
5    reserved. Only projects energized on or after June 1, 2017
6    shall be eligible for the Adjustable Block program. For
7    each block group the Agency shall determine the number of
8    blocks, the amount of generation capacity in each block,
9    and the purchase price for each block, provided that the
10    purchase price provided and the total amount of generation
11    in all blocks for all block groups shall be sufficient to
12    meet the goals in this subsection (c). The Agency may
13    periodically review its prior decisions establishing the
14    number of blocks, the amount of generation capacity in each
15    block, and the purchase price for each block, and may
16    propose, on an expedited basis, changes to these previously
17    set values, including but not limited to redistributing
18    these amounts and the available funds as necessary and
19    appropriate, subject to Commission approval as part of the
20    periodic plan revision process described in Section
21    16-111.5 of the Public Utilities Act. The Agency may define
22    different block sizes, purchase prices, or other distinct
23    terms and conditions for projects located in different
24    utility service territories if the Agency deems it
25    necessary to meet the goals in this subsection (c).
26        The Adjustable Block program shall include at least the

 

 

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1    following block groups in at least the following amounts,
2    which may be adjusted upon review by the Agency and
3    approval by the Commission as described in this
4    subparagraph (K):
5            (i) At least 25% from distributed renewable energy
6        generation devices with a nameplate capacity of no more
7        than 10 kilowatts.
8            (ii) At least 25% from distributed renewable
9        energy generation devices with a nameplate capacity of
10        more than 10 kilowatts and no more than 2,000
11        kilowatts. The Agency may create sub-categories within
12        this category to account for the differences between
13        projects for small commercial customers, large
14        commercial customers, and public or non-profit
15        customers.
16            (iii) At least 25% from photovoltaic community
17        renewable generation projects.
18            (iv) The remaining 25% shall be allocated as
19        specified by the Agency in the long-term renewable
20        resources procurement plan.
21        The Adjustable Block program shall be designed to
22    ensure that renewable energy credits are procured from
23    photovoltaic distributed renewable energy generation
24    devices and new photovoltaic community renewable energy
25    generation projects in diverse locations and are not
26    concentrated in a few geographic areas.

 

 

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1        (L) The procurement of photovoltaic renewable energy
2    credits under items (i) through (iv) of subparagraph (K) of
3    this paragraph (1) shall be subject to the following
4    contract and payment terms:
5            (i) The Agency shall procure contracts of at least
6        15 years in length.
7            (ii) For those renewable energy credits that
8        qualify and are procured under item (i) of subparagraph
9        (K) of this paragraph (1), the renewable energy credit
10        purchase price shall be paid in full by the contracting
11        utilities at the time that the facility producing the
12        renewable energy credits is interconnected at the
13        distribution system level of the utility and
14        energized. The electric utility shall receive and
15        retire all renewable energy credits generated by the
16        project for the first 15 years of operation.
17            (iii) For those renewable energy credits that
18        qualify and are procured under item (ii) and (iii) of
19        subparagraph (K) of this paragraph (1) and any
20        additional categories of distributed generation
21        included in the long-term renewable resources
22        procurement plan and approved by the Commission, 20
23        percent of the renewable energy credit purchase price
24        shall be paid by the contracting utilities at the time
25        that the facility producing the renewable energy
26        credits is interconnected at the distribution system

 

 

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1        level of the utility and energized. The remaining
2        portion shall be paid ratably over the subsequent
3        4-year period. The electric utility shall receive and
4        retire all renewable energy credits generated by the
5        project for the first 15 years of operation.
6            (iv) Each contract shall include provisions to
7        ensure the delivery of the renewable energy credits for
8        the full term of the contract.
9            (v) The utility shall be the counterparty to the
10        contracts executed under this subparagraph (L) that
11        are approved by the Commission under the process
12        described in Section 16-111.5 of the Public Utilities
13        Act. No contract shall be executed for an amount that
14        is less than one renewable energy credit per year.
15            (vi) If, at any time, approved applications for the
16        Adjustable Block program exceed funds collected by the
17        electric utility or would cause the Agency to exceed
18        the limitation described in subparagraph (E) of this
19        paragraph (1) on the amount of renewable energy
20        resources that may be procured, then the Agency shall
21        consider future uncommitted funds to be reserved for
22        these contracts on a first-come, first-served basis,
23        with the delivery of renewable energy credits required
24        beginning at the time that the reserved funds become
25        available.
26            (vii) Nothing in this Section shall require the

 

 

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

 

 

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1    adjustments to the Adjustable Block program design, such as
2    redistributing available funds or making adjustments to
3    purchase prices as necessary to achieve the goals of this
4    subsection (c). Program modifications to any price,
5    capacity block, or other program element that do not
6    deviate from the Commission's approved value by more than
7    25% shall take effect immediately and are not subject to
8    Commission review and approval. Program modifications to
9    any price, capacity block, or other program element that
10    deviate more than 25% from the Commission's approved value
11    must be approved by the Commission as a long-term plan
12    amendment under Section 16-111.5 of the Public Utilities
13    Act. The Agency shall consider stakeholder feedback when
14    making adjustments to the Adjustable Block design and shall
15    notify stakeholders in advance of any planned changes.
16        (N) The long-term renewable resources procurement plan
17    required by this subsection (c) shall include a community
18    renewable generation program. The Agency shall establish
19    the terms, conditions, and program requirements for
20    community renewable generation projects with a goal to
21    expand renewable energy generating facility access to a
22    broader group of energy consumers, to ensure robust
23    participation opportunities for residential and small
24    commercial customers and those who cannot install
25    renewable energy on their own properties. Any plan approved
26    by the Commission shall allow subscriptions to community

 

 

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1    renewable generation projects to be portable and
2    transferable. For purposes of this subparagraph (N),
3    "portable" means that subscriptions may be retained by the
4    subscriber even if the subscriber relocates or changes its
5    address within the same utility service territory; and
6    "transferable" means that a subscriber may assign or sell
7    subscriptions to another person within the same utility
8    service territory.
9        Electric utilities shall provide a monetary credit to a
10    subscriber's subsequent bill for service for the
11    proportional output of a community renewable generation
12    project attributable to that subscriber as specified in
13    Section 16-107.5 of the Public Utilities Act.
14        The Agency shall purchase renewable energy credits
15    from subscribed shares of photovoltaic community renewable
16    generation projects through the Adjustable Block program
17    described in subparagraph (K) of this paragraph (1) or
18    through the Illinois Solar for All Program described in
19    Section 1-56 of this Act. The electric utility shall
20    purchase any unsubscribed energy from community renewable
21    generation projects that are Qualifying Facilities ("QF")
22    under the electric utility's tariff for purchasing the
23    output from QFs under Public Utilities Regulatory Policies
24    Act of 1978.
25        The owners of and any subscribers to a community
26    renewable generation project shall not be considered

 

 

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1    public utilities or alternative retail electricity
2    suppliers under the Public Utilities Act solely as a result
3    of their interest in or subscription to a community
4    renewable generation project and shall not be required to
5    become an alternative retail electric supplier by
6    participating in a community renewable generation project
7    with a public utility.
8        (O) For the delivery year beginning June 1, 2018, the
9    long-term renewable resources procurement plan required by
10    this subsection (c) shall provide for the Agency to procure
11    contracts to continue offering the Illinois Solar for All
12    Program described in subsection (b) of Section 1-56 of this
13    Act, and the contracts approved by the Commission shall be
14    executed by the utilities that are subject to this
15    subsection (c). The long-term renewable resources
16    procurement plan shall allocate 5% of the funds available
17    under the plan for the applicable delivery year, or
18    $10,000,000 per delivery year, whichever is greater, to
19    fund the programs, and the plan shall determine the amount
20    of funding to be apportioned to the programs identified in
21    subsection (b) of Section 1-56 of this Act; provided that
22    for the delivery years beginning June 1, 2017, June 1,
23    2021, and June 1, 2025, the long-term renewable resources
24    procurement plan shall allocate 10% of the funds available
25    under the plan for the applicable delivery year, or
26    $20,000,000 per delivery year, whichever is greater, and

 

 

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

 

 

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

 

 

HB4285- 51 -LRB100 16252 RJF 31375 b

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

 

 

HB4285- 52 -LRB100 16252 RJF 31375 b

1    the State that by January 1, 2025, 25% of the electricity
2    used in the State shall be generated by cost-effective
3    clean coal facilities. For purposes of this subsection (d),
4    "cost-effective" means that the expenditures pursuant to
5    such sourcing agreements do not cause the limit stated in
6    paragraph (2) of this subsection (d) to be exceeded and do
7    not exceed cost-based benchmarks, which shall be developed
8    to assess all expenditures pursuant to such sourcing
9    agreements covering electricity generated by clean coal
10    facilities, other than the initial clean coal facility, by
11    the procurement administrator, in consultation with the
12    Commission staff, Agency staff, and the procurement
13    monitor and shall be subject to Commission review and
14    approval.
15        A utility party to a sourcing agreement shall
16    immediately retire any emission credits that it receives in
17    connection with the electricity covered by such agreement.
18        Utilities shall maintain adequate records documenting
19    the purchases under the sourcing agreement to comply with
20    this subsection (d) and shall file an accounting with the
21    load forecast that must be filed with the Agency by July 15
22    of each year, in accordance with subsection (d) of Section
23    16-111.5 of the Public Utilities Act.
24        A utility shall be deemed to have complied with the
25    clean coal portfolio standard specified in this subsection
26    (d) if the utility enters into a sourcing agreement as

 

 

HB4285- 53 -LRB100 16252 RJF 31375 b

1    required by this subsection (d).
2        (2) For purposes of this subsection (d), the required
3    execution of sourcing agreements with the initial clean
4    coal facility for a particular year shall be measured as a
5    percentage of the actual amount of electricity
6    (megawatt-hours) supplied by the electric utility to
7    eligible retail customers in the planning year ending
8    immediately prior to the agreement's execution. For
9    purposes of this subsection (d), the amount paid per
10    kilowatthour means the total amount paid for electric
11    service expressed on a per kilowatthour basis. For purposes
12    of this subsection (d), the total amount paid for electric
13    service includes without limitation amounts paid for
14    supply, transmission, distribution, surcharges and add-on
15    taxes.
16        Notwithstanding the requirements of this subsection
17    (d), the total amount paid under sourcing agreements with
18    clean coal facilities pursuant to the procurement plan for
19    any given year shall be reduced by an amount necessary to
20    limit the annual estimated average net increase due to the
21    costs of these resources included in the amounts paid by
22    eligible retail customers in connection with electric
23    service to:
24            (A) in 2010, no more than 0.5% of the amount paid
25        per kilowatthour by those customers during the year
26        ending May 31, 2009;

 

 

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1            (B) in 2011, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2010 or 1% of the amount
4        paid per kilowatthour by those customers during the
5        year ending May 31, 2009;
6            (C) in 2012, the greater of an additional 0.5% of
7        the amount paid per kilowatthour by those customers
8        during the year ending May 31, 2011 or 1.5% of the
9        amount paid per kilowatthour by those customers during
10        the year ending May 31, 2009;
11            (D) in 2013, the greater of an additional 0.5% of
12        the amount paid per kilowatthour by those customers
13        during the year ending May 31, 2012 or 2% of the amount
14        paid per kilowatthour by those customers during the
15        year ending May 31, 2009; and
16            (E) thereafter, the total amount paid under
17        sourcing agreements with clean coal facilities
18        pursuant to the procurement plan for any single year
19        shall be reduced by an amount necessary to limit the
20        estimated average net increase due to the cost of these
21        resources included in the amounts paid by eligible
22        retail customers in connection with electric service
23        to no more than the greater of (i) 2.015% of the amount
24        paid per kilowatthour by those customers during the
25        year ending May 31, 2009 or (ii) the incremental amount
26        per kilowatthour paid for these resources in 2013.

 

 

HB4285- 55 -LRB100 16252 RJF 31375 b

1        These requirements may be altered only as provided by
2        statute.
3        No later than June 30, 2015, the Commission shall
4    review the limitation on the total amount paid under
5    sourcing agreements, if any, with clean coal facilities
6    pursuant to this subsection (d) and report to the General
7    Assembly its findings as to whether that limitation unduly
8    constrains the amount of electricity generated by
9    cost-effective clean coal facilities that is covered by
10    sourcing agreements.
11        (3) Initial clean coal facility. In order to promote
12    development of clean coal facilities in Illinois, each
13    electric utility subject to this Section shall execute a
14    sourcing agreement to source electricity from a proposed
15    clean coal facility in Illinois (the "initial clean coal
16    facility") that will have a nameplate capacity of at least
17    500 MW when commercial operation commences, that has a
18    final Clean Air Act permit on June 1, 2009 (the effective
19    date of Public Act 95-1027) this amendatory Act of the 95th
20    General Assembly, and that will meet the definition of
21    clean coal facility in Section 1-10 of this Act when
22    commercial operation commences. The sourcing agreements
23    with this initial clean coal facility shall be subject to
24    both approval of the initial clean coal facility by the
25    General Assembly and satisfaction of the requirements of
26    paragraph (4) of this subsection (d) and shall be executed

 

 

HB4285- 56 -LRB100 16252 RJF 31375 b

1    within 90 days after any such approval by the General
2    Assembly. The Agency and the Commission shall have
3    authority to inspect all books and records associated with
4    the initial clean coal facility during the term of such a
5    sourcing agreement. A utility's sourcing agreement for
6    electricity produced by the initial clean coal facility
7    shall include:
8            (A) a formula contractual price (the "contract
9        price") approved pursuant to paragraph (4) of this
10        subsection (d), which shall:
11                (i) be determined using a cost of service
12            methodology employing either a level or deferred
13            capital recovery component, based on a capital
14            structure consisting of 45% equity and 55% debt,
15            and a return on equity as may be approved by the
16            Federal Energy Regulatory Commission, which in any
17            case may not exceed the lower of 11.5% or the rate
18            of return approved by the General Assembly
19            pursuant to paragraph (4) of this subsection (d);
20            and
21                (ii) provide that all miscellaneous net
22            revenue, including but not limited to net revenue
23            from the sale of emission allowances, if any,
24            substitute natural gas, if any, grants or other
25            support provided by the State of Illinois or the
26            United States Government, firm transmission

 

 

HB4285- 57 -LRB100 16252 RJF 31375 b

1            rights, if any, by-products produced by the
2            facility, energy or capacity derived from the
3            facility and not covered by a sourcing agreement
4            pursuant to paragraph (3) of this subsection (d) or
5            item (5) of subsection (d) of Section 16-115 of the
6            Public Utilities Act, whether generated from the
7            synthesis gas derived from coal, from SNG, or from
8            natural gas, shall be credited against the revenue
9            requirement for this initial clean coal facility;
10            (B) power purchase provisions, which shall:
11                (i) provide that the utility party to such
12            sourcing agreement shall pay the contract price
13            for electricity delivered under such sourcing
14            agreement;
15                (ii) require delivery of electricity to the
16            regional transmission organization market of the
17            utility that is party to such sourcing agreement;
18                (iii) require the utility party to such
19            sourcing agreement to buy from the initial clean
20            coal facility in each hour an amount of energy
21            equal to all clean coal energy made available from
22            the initial clean coal facility during such hour
23            times a fraction, the numerator of which is such
24            utility's retail market sales of electricity
25            (expressed in kilowatthours sold) in the State
26            during the prior calendar month and the

 

 

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1            denominator of which is the total retail market
2            sales of electricity (expressed in kilowatthours
3            sold) in the State by utilities during such prior
4            month and the sales of electricity (expressed in
5            kilowatthours sold) in the State by alternative
6            retail electric suppliers during such prior month
7            that are subject to the requirements of this
8            subsection (d) and paragraph (5) of subsection (d)
9            of Section 16-115 of the Public Utilities Act,
10            provided that the amount purchased by the utility
11            in any year will be limited by paragraph (2) of
12            this subsection (d); and
13                (iv) be considered pre-existing contracts in
14            such utility's procurement plans for eligible
15            retail customers;
16            (C) contract for differences provisions, which
17        shall:
18                (i) require the utility party to such sourcing
19            agreement to contract with the initial clean coal
20            facility in each hour with respect to an amount of
21            energy equal to all clean coal energy made
22            available from the initial clean coal facility
23            during such hour times a fraction, the numerator of
24            which is such utility's retail market sales of
25            electricity (expressed in kilowatthours sold) in
26            the utility's service territory in the State

 

 

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1            during the prior calendar month and the
2            denominator of which is the total retail market
3            sales of electricity (expressed in kilowatthours
4            sold) in the State by utilities during such prior
5            month and the sales of electricity (expressed in
6            kilowatthours sold) in the State by alternative
7            retail electric suppliers during such prior month
8            that are subject to the requirements of this
9            subsection (d) and paragraph (5) of subsection (d)
10            of Section 16-115 of the Public Utilities Act,
11            provided that the amount paid by the utility in any
12            year will be limited by paragraph (2) of this
13            subsection (d);
14                (ii) provide that the utility's payment
15            obligation in respect of the quantity of
16            electricity determined pursuant to the preceding
17            clause (i) shall be limited to an amount equal to
18            (1) the difference between the contract price
19            determined pursuant to subparagraph (A) of
20            paragraph (3) of this subsection (d) and the
21            day-ahead price for electricity delivered to the
22            regional transmission organization market of the
23            utility that is party to such sourcing agreement
24            (or any successor delivery point at which such
25            utility's supply obligations are financially
26            settled on an hourly basis) (the "reference

 

 

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1            price") on the day preceding the day on which the
2            electricity is delivered to the initial clean coal
3            facility busbar, multiplied by (2) the quantity of
4            electricity determined pursuant to the preceding
5            clause (i); and
6                (iii) not require the utility to take physical
7            delivery of the electricity produced by the
8            facility;
9            (D) general provisions, which shall:
10                (i) specify a term of no more than 30 years,
11            commencing on the commercial operation date of the
12            facility;
13                (ii) provide that utilities shall maintain
14            adequate records documenting purchases under the
15            sourcing agreements entered into to comply with
16            this subsection (d) and shall file an accounting
17            with the load forecast that must be filed with the
18            Agency by July 15 of each year, in accordance with
19            subsection (d) of Section 16-111.5 of the Public
20            Utilities Act;
21                (iii) provide that all costs associated with
22            the initial clean coal facility will be
23            periodically reported to the Federal Energy
24            Regulatory Commission and to purchasers in
25            accordance with applicable laws governing
26            cost-based wholesale power contracts;

 

 

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1                (iv) permit the Illinois Power Agency to
2            assume ownership of the initial clean coal
3            facility, without monetary consideration and
4            otherwise on reasonable terms acceptable to the
5            Agency, if the Agency so requests no less than 3
6            years prior to the end of the stated contract term;
7                (v) require the owner of the initial clean coal
8            facility to provide documentation to the
9            Commission each year, starting in the facility's
10            first year of commercial operation, accurately
11            reporting the quantity of carbon emissions from
12            the facility that have been captured and
13            sequestered and report any quantities of carbon
14            released from the site or sites at which carbon
15            emissions were sequestered in prior years, based
16            on continuous monitoring of such sites. If, in any
17            year after the first year of commercial operation,
18            the owner of the facility fails to demonstrate that
19            the initial clean coal facility captured and
20            sequestered at least 50% of the total carbon
21            emissions that the facility would otherwise emit
22            or that sequestration of emissions from prior
23            years has failed, resulting in the release of
24            carbon dioxide into the atmosphere, the owner of
25            the facility must offset excess emissions. Any
26            such carbon offsets must be permanent, additional,

 

 

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1            verifiable, real, located within the State of
2            Illinois, and legally and practicably enforceable.
3            The cost of such offsets for the facility that are
4            not recoverable shall not exceed $15 million in any
5            given year. No costs of any such purchases of
6            carbon offsets may be recovered from a utility or
7            its customers. All carbon offsets purchased for
8            this purpose and any carbon emission credits
9            associated with sequestration of carbon from the
10            facility must be permanently retired. The initial
11            clean coal facility shall not forfeit its
12            designation as a clean coal facility if the
13            facility fails to fully comply with the applicable
14            carbon sequestration requirements in any given
15            year, provided the requisite offsets are
16            purchased. However, the Attorney General, on
17            behalf of the People of the State of Illinois, may
18            specifically enforce the facility's sequestration
19            requirement and the other terms of this contract
20            provision. Compliance with the sequestration
21            requirements and offset purchase requirements
22            specified in paragraph (3) of this subsection (d)
23            shall be reviewed annually by an independent
24            expert retained by the owner of the initial clean
25            coal facility, with the advance written approval
26            of the Attorney General. The Commission may, in the

 

 

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1            course of the review specified in item (vii),
2            reduce the allowable return on equity for the
3            facility if the facility wilfully fails to comply
4            with the carbon capture and sequestration
5            requirements set forth in this item (v);
6                (vi) include limits on, and accordingly
7            provide for modification of, the amount the
8            utility is required to source under the sourcing
9            agreement consistent with paragraph (2) of this
10            subsection (d);
11                (vii) require Commission review: (1) to
12            determine the justness, reasonableness, and
13            prudence of the inputs to the formula referenced in
14            subparagraphs (A)(i) through (A)(iii) of paragraph
15            (3) of this subsection (d), prior to an adjustment
16            in those inputs including, without limitation, the
17            capital structure and return on equity, fuel
18            costs, and other operations and maintenance costs
19            and (2) to approve the costs to be passed through
20            to customers under the sourcing agreement by which
21            the utility satisfies its statutory obligations.
22            Commission review shall occur no less than every 3
23            years, regardless of whether any adjustments have
24            been proposed, and shall be completed within 9
25            months;
26                (viii) limit the utility's obligation to such

 

 

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1            amount as the utility is allowed to recover through
2            tariffs filed with the Commission, provided that
3            neither the clean coal facility nor the utility
4            waives any right to assert federal pre-emption or
5            any other argument in response to a purported
6            disallowance of recovery costs;
7                (ix) limit the utility's or alternative retail
8            electric supplier's obligation to incur any
9            liability until such time as the facility is in
10            commercial operation and generating power and
11            energy and such power and energy is being delivered
12            to the facility busbar;
13                (x) provide that the owner or owners of the
14            initial clean coal facility, which is the
15            counterparty to such sourcing agreement, shall
16            have the right from time to time to elect whether
17            the obligations of the utility party thereto shall
18            be governed by the power purchase provisions or the
19            contract for differences provisions;
20                (xi) append documentation showing that the
21            formula rate and contract, insofar as they relate
22            to the power purchase provisions, have been
23            approved by the Federal Energy Regulatory
24            Commission pursuant to Section 205 of the Federal
25            Power Act;
26                (xii) provide that any changes to the terms of

 

 

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1            the contract, insofar as such changes relate to the
2            power purchase provisions, are subject to review
3            under the public interest standard applied by the
4            Federal Energy Regulatory Commission pursuant to
5            Sections 205 and 206 of the Federal Power Act; and
6                (xiii) conform with customary lender
7            requirements in power purchase agreements used as
8            the basis for financing non-utility generators.
9        (4) Effective date of sourcing agreements with the
10    initial clean coal facility.
11        Any proposed sourcing agreement with the initial clean
12    coal facility shall not become effective unless the
13    following reports are prepared and submitted and
14    authorizations and approvals obtained:
15            (i) Facility cost report. The owner of the initial
16        clean coal facility shall submit to the Commission, the
17        Agency, and the General Assembly a front-end
18        engineering and design study, a facility cost report,
19        method of financing (including but not limited to
20        structure and associated costs), and an operating and
21        maintenance cost quote for the facility (collectively
22        "facility cost report"), which shall be prepared in
23        accordance with the requirements of this paragraph (4)
24        of subsection (d) of this Section, and shall provide
25        the Commission and the Agency access to the work
26        papers, relied upon documents, and any other backup

 

 

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1        documentation related to the facility cost report.
2            (ii) Commission report. Within 6 months following
3        receipt of the facility cost report, the Commission, in
4        consultation with the Agency, shall submit a report to
5        the General Assembly setting forth its analysis of the
6        facility cost report. Such report shall include, but
7        not be limited to, a comparison of the costs associated
8        with electricity generated by the initial clean coal
9        facility to the costs associated with electricity
10        generated by other types of generation facilities, an
11        analysis of the rate impacts on residential and small
12        business customers over the life of the sourcing
13        agreements, and an analysis of the likelihood that the
14        initial clean coal facility will commence commercial
15        operation by and be delivering power to the facility's
16        busbar by 2016. To assist in the preparation of its
17        report, the Commission, in consultation with the
18        Agency, may hire one or more experts or consultants,
19        the costs of which shall be paid for by the owner of
20        the initial clean coal facility. The Commission and
21        Agency may begin the process of selecting such experts
22        or consultants prior to receipt of the facility cost
23        report.
24            (iii) General Assembly approval. The proposed
25        sourcing agreements shall not take effect unless,
26        based on the facility cost report and the Commission's

 

 

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1        report, the General Assembly enacts authorizing
2        legislation approving (A) the projected price, stated
3        in cents per kilowatthour, to be charged for
4        electricity generated by the initial clean coal
5        facility, (B) the projected impact on residential and
6        small business customers' bills over the life of the
7        sourcing agreements, and (C) the maximum allowable
8        return on equity for the project; and
9            (iv) Commission review. If the General Assembly
10        enacts authorizing legislation pursuant to
11        subparagraph (iii) approving a sourcing agreement, the
12        Commission shall, within 90 days of such enactment,
13        complete a review of such sourcing agreement. During
14        such time period, the Commission shall implement any
15        directive of the General Assembly, resolve any
16        disputes between the parties to the sourcing agreement
17        concerning the terms of such agreement, approve the
18        form of such agreement, and issue an order finding that
19        the sourcing agreement is prudent and reasonable.
20        The facility cost report shall be prepared as follows:
21            (A) The facility cost report shall be prepared by
22        duly licensed engineering and construction firms
23        detailing the estimated capital costs payable to one or
24        more contractors or suppliers for the engineering,
25        procurement and construction of the components
26        comprising the initial clean coal facility and the

 

 

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1        estimated costs of operation and maintenance of the
2        facility. The facility cost report shall include:
3                (i) an estimate of the capital cost of the core
4            plant based on one or more front end engineering
5            and design studies for the gasification island and
6            related facilities. The core plant shall include
7            all civil, structural, mechanical, electrical,
8            control, and safety systems.
9                (ii) an estimate of the capital cost of the
10            balance of the plant, including any capital costs
11            associated with sequestration of carbon dioxide
12            emissions and all interconnects and interfaces
13            required to operate the facility, such as
14            transmission of electricity, construction or
15            backfeed power supply, pipelines to transport
16            substitute natural gas or carbon dioxide, potable
17            water supply, natural gas supply, water supply,
18            water discharge, landfill, access roads, and coal
19            delivery.
20            The quoted construction costs shall be expressed
21        in nominal dollars as of the date that the quote is
22        prepared and shall include capitalized financing costs
23        during construction, taxes, insurance, and other
24        owner's costs, and an assumed escalation in materials
25        and labor beyond the date as of which the construction
26        cost quote is expressed.

 

 

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1            (B) The front end engineering and design study for
2        the gasification island and the cost study for the
3        balance of plant shall include sufficient design work
4        to permit quantification of major categories of
5        materials, commodities and labor hours, and receipt of
6        quotes from vendors of major equipment required to
7        construct and operate the clean coal facility.
8            (C) The facility cost report shall also include an
9        operating and maintenance cost quote that will provide
10        the estimated cost of delivered fuel, personnel,
11        maintenance contracts, chemicals, catalysts,
12        consumables, spares, and other fixed and variable
13        operations and maintenance costs. The delivered fuel
14        cost estimate will be provided by a recognized third
15        party expert or experts in the fuel and transportation
16        industries. The balance of the operating and
17        maintenance cost quote, excluding delivered fuel
18        costs, will be developed based on the inputs provided
19        by duly licensed engineering and construction firms
20        performing the construction cost quote, potential
21        vendors under long-term service agreements and plant
22        operating agreements, or recognized third party plant
23        operator or operators.
24            The operating and maintenance cost quote
25        (including the cost of the front end engineering and
26        design study) shall be expressed in nominal dollars as

 

 

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1        of the date that the quote is prepared and shall
2        include taxes, insurance, and other owner's costs, and
3        an assumed escalation in materials and labor beyond the
4        date as of which the operating and maintenance cost
5        quote is expressed.
6            (D) The facility cost report shall also include an
7        analysis of the initial clean coal facility's ability
8        to deliver power and energy into the applicable
9        regional transmission organization markets and an
10        analysis of the expected capacity factor for the
11        initial clean coal facility.
12            (E) Amounts paid to third parties unrelated to the
13        owner or owners of the initial clean coal facility to
14        prepare the core plant construction cost quote,
15        including the front end engineering and design study,
16        and the operating and maintenance cost quote will be
17        reimbursed through Coal Development Bonds.
18        (5) Re-powering and retrofitting coal-fired power
19    plants previously owned by Illinois utilities to qualify as
20    clean coal facilities. During the 2009 procurement
21    planning process and thereafter, the Agency and the
22    Commission shall consider sourcing agreements covering
23    electricity generated by power plants that were previously
24    owned by Illinois utilities and that have been or will be
25    converted into clean coal facilities, as defined by Section
26    1-10 of this Act. Pursuant to such procurement planning

 

 

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1    process, the owners of such facilities may propose to the
2    Agency sourcing agreements with utilities and alternative
3    retail electric suppliers required to comply with
4    subsection (d) of this Section and item (5) of subsection
5    (d) of Section 16-115 of the Public Utilities Act, covering
6    electricity generated by such facilities. In the case of
7    sourcing agreements that are power purchase agreements,
8    the contract price for electricity sales shall be
9    established on a cost of service basis. In the case of
10    sourcing agreements that are contracts for differences,
11    the contract price from which the reference price is
12    subtracted shall be established on a cost of service basis.
13    The Agency and the Commission may approve any such utility
14    sourcing agreements that do not exceed cost-based
15    benchmarks developed by the procurement administrator, in
16    consultation with the Commission staff, Agency staff and
17    the procurement monitor, subject to Commission review and
18    approval. The Commission shall have authority to inspect
19    all books and records associated with these clean coal
20    facilities during the term of any such contract.
21        (6) Costs incurred under this subsection (d) or
22    pursuant to a contract entered into under this subsection
23    (d) shall be deemed prudently incurred and reasonable in
24    amount and the electric utility shall be entitled to full
25    cost recovery pursuant to the tariffs filed with the
26    Commission.

 

 

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1    (d-5) Zero emission standard.
2        (1) Beginning with the delivery year commencing on June
3    1, 2017, the Agency shall, for electric utilities that
4    serve at least 100,000 retail customers in this State,
5    procure contracts with zero emission facilities that are
6    reasonably capable of generating cost-effective zero
7    emission credits in an amount approximately equal to 16% of
8    the actual amount of electricity delivered by each electric
9    utility to retail customers in the State during calendar
10    year 2014. For an electric utility serving fewer than
11    100,000 retail customers in this State that requested,
12    under Section 16-111.5 of the Public Utilities Act, that
13    the Agency procure power and energy for all or a portion of
14    the utility's Illinois load for the delivery year
15    commencing June 1, 2016, the Agency shall procure contracts
16    with zero emission facilities that are reasonably capable
17    of generating cost-effective zero emission credits in an
18    amount approximately equal to 16% of the portion of power
19    and energy to be procured by the Agency for the utility.
20    The duration of the contracts procured under this
21    subsection (d-5) shall be for a term of 10 years ending May
22    31, 2027. The quantity of zero emission credits to be
23    procured under the contracts shall be all of the zero
24    emission credits generated by the zero emission facility in
25    each delivery year; however, if the zero emission facility
26    is owned by more than one entity, then the quantity of zero

 

 

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1    emission credits to be procured under the contracts shall
2    be the amount of zero emission credits that are generated
3    from the portion of the zero emission facility that is
4    owned by the winning supplier.
5        The 16% value identified in this paragraph (1) is the
6    average of the percentage targets in subparagraph (B) of
7    paragraph (1) of subsection (c) of Section 1-75 of this Act
8    for the 5 delivery years beginning June 1, 2017.
9        The procurement process shall be subject to the
10    following provisions:
11            (A) Those zero emission facilities that intend to
12        participate in the procurement shall submit to the
13        Agency the following eligibility information for each
14        zero emission facility on or before the date
15        established by the Agency:
16                (i) the in-service date and remaining useful
17            life of the zero emission facility;
18                (ii) the amount of power generated annually
19            for each of the years 2005 through 2015, and the
20            projected zero emission credits to be generated
21            over the remaining useful life of the zero emission
22            facility, which shall be used to determine the
23            capability of each facility;
24                (iii) the annual zero emission facility cost
25            projections, expressed on a per megawatthour
26            basis, over the next 6 delivery years, which shall

 

 

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1            include the following: operation and maintenance
2            expenses; fully allocated overhead costs, which
3            shall be allocated using the methodology developed
4            by the Institute for Nuclear Power Operations;
5            fuel expenditures; non-fuel capital expenditures;
6            spent fuel expenditures; a return on working
7            capital; the cost of operational and market risks
8            that could be avoided by ceasing operation; and any
9            other costs necessary for continued operations,
10            provided that "necessary" means, for purposes of
11            this item (iii), that the costs could reasonably be
12            avoided only by ceasing operations of the zero
13            emission facility; and
14                (iv) a commitment to continue operating, for
15            the duration of the contract or contracts executed
16            under the procurement held under this subsection
17            (d-5), the zero emission facility that produces
18            the zero emission credits to be procured in the
19            procurement.
20        The information described in item (iii) of this
21    subparagraph (A) may be submitted on a confidential basis
22    and shall be treated and maintained by the Agency, the
23    procurement administrator, and the Commission as
24    confidential and proprietary and exempt from disclosure
25    under subparagraphs (a) and (g) of paragraph (1) of Section
26    7 of the Freedom of Information Act. The Office of Attorney

 

 

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1    General shall have access to, and maintain the
2    confidentiality of, such information pursuant to Section
3    6.5 of the Attorney General Act.
4            (B) The price for each zero emission credit
5        procured under this subsection (d-5) for each delivery
6        year shall be in an amount that equals the Social Cost
7        of Carbon, expressed on a price per megawatthour basis.
8        However, to ensure that the procurement remains
9        affordable to retail customers in this State if
10        electricity prices increase, the price in an
11        applicable delivery year shall be reduced below the
12        Social Cost of Carbon by the amount ("Price
13        Adjustment") by which the market price index for the
14        applicable delivery year exceeds the baseline market
15        price index for the consecutive 12-month period ending
16        May 31, 2016. If the Price Adjustment is greater than
17        or equal to the Social Cost of Carbon in an applicable
18        delivery year, then no payments shall be due in that
19        delivery year. The components of this calculation are
20        defined as follows:
21                (i) Social Cost of Carbon: The Social Cost of
22            Carbon is $16.50 per megawatthour, which is based
23            on the U.S. Interagency Working Group on Social
24            Cost of Carbon's price in the August 2016 Technical
25            Update using a 3% discount rate, adjusted for
26            inflation for each year of the program. Beginning

 

 

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1            with the delivery year commencing June 1, 2023, the
2            price per megawatthour shall increase by $1 per
3            megawatthour, and continue to increase by an
4            additional $1 per megawatthour each delivery year
5            thereafter.
6                (ii) Baseline market price index: The baseline
7            market price index for the consecutive 12-month
8            period ending May 31, 2016 is $31.40 per
9            megawatthour, which is based on the sum of (aa) the
10            average day-ahead energy price across all hours of
11            such 12-month period at the PJM Interconnection
12            LLC Northern Illinois Hub, (bb) 50% multiplied by
13            the Base Residual Auction, or its successor,
14            capacity price for the rest of the RTO zone group
15            determined by PJM Interconnection LLC, divided by
16            24 hours per day, and (cc) 50% multiplied by the
17            Planning Resource Auction, or its successor,
18            capacity price for Zone 4 determined by the
19            Midcontinent Independent System Operator, Inc.,
20            divided by 24 hours per day.
21                (iii) Market price index: The market price
22            index for a delivery year shall be the sum of
23            projected energy prices and projected capacity
24            prices determined as follows:
25                    (aa) Projected energy prices: the
26                projected energy prices for the applicable

 

 

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1                delivery year shall be calculated once for the
2                year using the forward market price for the PJM
3                Interconnection, LLC Northern Illinois Hub.
4                The forward market price shall be calculated as
5                follows: the energy forward prices for each
6                month of the applicable delivery year averaged
7                for each trade date during the calendar year
8                immediately preceding that delivery year to
9                produce a single energy forward price for the
10                delivery year. The forward market price
11                calculation shall use data published by the
12                Intercontinental Exchange, or its successor.
13                    (bb) Projected capacity prices:
14                        (I) For the delivery year years
15                    commencing June 1, 2017, June 1, 2018, and
16                    June 1, 2019, the projected capacity price
17                    shall be equal to the sum of (1) 50%
18                    multiplied by the Base Residual Auction,
19                    or its successor, price for the rest of the
20                    RTO zone group as determined by PJM
21                    Interconnection LLC, divided by 24 hours
22                    per day and, (2) 50% multiplied by the
23                    resource auction price determined in the
24                    resource auction administered by the
25                    Midcontinent Independent System Operator,
26                    Inc., in which the largest percentage of

 

 

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1                    load cleared for Local Resource Zone 4,
2                    divided by 24 hours per day, and where such
3                    price is determined by the Midcontinent
4                    Independent System Operator, Inc.
5                        (I-5) For the delivery years
6                    commencing June 1, 2019, and June 1, 2020,
7                    the projected capacity price shall be
8                    equal to the sum of (1) 50% multiplied by
9                    the Base Residual Auction, or its
10                    successor, price for the rest of the RTO
11                    zone group as determined by PJM
12                    Interconnection LLC, divided by 24 hours
13                    per day and (2) 50% multiplied by the
14                    weighted average price for capacity in
15                    capacity contracts awarded in procurement
16                    events conducted by the Agency under
17                    subsection (b-5) of Section 16-111.5 of
18                    the Public Utilities Act, divided by 24
19                    hours per day, with such price to be
20                    determined by the Agency.
21                        (II) For the delivery year commencing
22                    June 1, 2020, and each year thereafter, the
23                    projected capacity price shall be equal to
24                    the sum of (1) 50% multiplied by the Base
25                    Residual Auction, or its successor, price
26                    for the ComEd zone as determined by PJM

 

 

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

 

 

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1        publish its proposed zero emission standard
2        procurement plan. The plan shall be consistent with the
3        provisions of this paragraph (1) and shall provide that
4        winning bids shall be selected based on public interest
5        criteria that include, but are not limited to,
6        minimizing carbon dioxide emissions that result from
7        electricity consumed in Illinois and minimizing sulfur
8        dioxide, nitrogen oxide, and particulate matter
9        emissions that adversely affect the citizens of this
10        State. In particular, the selection of winning bids
11        shall take into account the incremental environmental
12        benefits resulting from the procurement, such as any
13        existing environmental benefits that are preserved by
14        the procurements held under Public Act 99-906 this
15        amendatory Act of the 99th General Assembly and would
16        cease to exist if the procurements were not held,
17        including the preservation of zero emission
18        facilities. The plan shall also describe in detail how
19        each public interest factor shall be considered and
20        weighted in the bid selection process to ensure that
21        the public interest criteria are applied to the
22        procurement and given full effect.
23            For purposes of developing the plan, the Agency
24        shall consider any reports issued by a State agency,
25        board, or commission under House Resolution 1146 of the
26        98th General Assembly and paragraph (4) of subsection

 

 

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

 

 

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1        (2) of this subsection to be exceeded.
2            (C-5) As part of the Commission's review and
3        acceptance or rejection of the procurement results,
4        the Commission shall, in its public notice of
5        successful bidders:
6                (i) identify how the winning bids satisfy the
7            public interest criteria described in subparagraph
8            (C) of this paragraph (1) of minimizing carbon
9            dioxide emissions that result from electricity
10            consumed in Illinois and minimizing sulfur
11            dioxide, nitrogen oxide, and particulate matter
12            emissions that adversely affect the citizens of
13            this State;
14                (ii) specifically address how the selection of
15            winning bids takes into account the incremental
16            environmental benefits resulting from the
17            procurement, including any existing environmental
18            benefits that are preserved by the procurements
19            held under Public Act 99-906 this amendatory Act of
20            the 99th General Assembly and would have ceased to
21            exist if the procurements had not been held, such
22            as the preservation of zero emission facilities;
23                (iii) quantify the environmental benefit of
24            preserving the resources identified in item (ii)
25            of this subparagraph (C-5), including the
26            following:

 

 

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1                    (aa) the value of avoided greenhouse gas
2                emissions measured as the product of the zero
3                emission facilities' output over the contract
4                term multiplied by the U.S. Environmental
5                Protection Agency eGrid subregion carbon
6                dioxide emission rate and the U.S. Interagency
7                Working Group on Social Cost of Carbon's price
8                in the August 2016 Technical Update using a 3%
9                discount rate, adjusted for inflation for each
10                delivery year; and
11                    (bb) the costs of replacement with other
12                zero carbon dioxide resources, including wind
13                and photovoltaic, based upon the simple
14                average of the following:
15                        (I) the price, or if there is more than
16                    one price, the average of the prices, paid
17                    for renewable energy credits from new
18                    utility-scale wind projects in the
19                    procurement events specified in item (i)
20                    of subparagraph (G) of paragraph (1) of
21                    subsection (c) of Section 1-75 of this Act;
22                    and
23                        (II) the price, or if there is more
24                    than one price, the average of the prices,
25                    paid for renewable energy credits from new
26                    utility-scale solar projects and

 

 

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1                    brownfield site photovoltaic projects in
2                    the procurement events specified in item
3                    (ii) of subparagraph (G) of paragraph (1)
4                    of subsection (c) of Section 1-75 of this
5                    Act and, after January 1, 2015, renewable
6                    energy credits from photovoltaic
7                    distributed generation projects in
8                    procurement events held under subsection
9                    (c) of Section 1-75 of this Act.
10            Each utility shall enter into binding contractual
11        arrangements with the winning suppliers.
12            The procurement described in this subsection
13        (d-5), including, but not limited to, the execution of
14        all contracts procured, shall be completed no later
15        than May 10, 2017. Based on the effective date of
16        Public Act 99-906 this amendatory Act of the 99th
17        General Assembly, the Agency and Commission may, as
18        appropriate, modify the various dates and timelines
19        under this subparagraph and subparagraphs (C) and (D)
20        of this paragraph (1). The procurement and plan
21        approval processes required by this subsection (d-5)
22        shall be conducted in conjunction with the procurement
23        and plan approval processes required by subsection (c)
24        of this Section and Section 16-111.5 of the Public
25        Utilities Act, to the extent practicable.
26        Notwithstanding whether a procurement event is

 

 

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

 

 

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1            shortage, sabotage, acts of public enemy,
2            explosions, orders, regulations or restrictions
3            imposed by governmental, military, or lawfully
4            established civilian authorities, which, in any of
5            the foregoing cases, by exercise of commercially
6            reasonable efforts the zero emission facility
7            could not reasonably have been expected to avoid,
8            and which, by the exercise of commercially
9            reasonable efforts, it has been unable to
10            overcome. In such event, the zero emission
11            facility shall be excused from performance for the
12            duration of the event, including, but not limited
13            to, delivery of zero emission credits, and no
14            payment shall be due to the zero emission facility
15            during the duration of the event.
16                (ii) A zero emission facility shall be
17            permitted to terminate the contract if legislation
18            is enacted into law by the General Assembly that
19            imposes or authorizes a new tax, special
20            assessment, or fee on the generation of
21            electricity, the ownership or leasehold of a
22            generating unit, or the privilege or occupation of
23            such generation, ownership, or leasehold of
24            generation units by a zero emission facility.
25            However, the provisions of this item (ii) do not
26            apply to any generally applicable tax, special

 

 

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1            assessment or fee, or requirements imposed by
2            federal law.
3                (iii) A zero emission facility shall be
4            permitted to terminate the contract in the event
5            that the resource requires capital expenditures in
6            excess of $40,000,000 that were neither known nor
7            reasonably foreseeable at the time it executed the
8            contract and that a prudent owner or operator of
9            such resource would not undertake.
10                (iv) A zero emission facility shall be
11            permitted to terminate the contract in the event
12            the Nuclear Regulatory Commission terminates the
13            resource's license.
14            (F) If the zero emission facility elects to
15        terminate a contract under this subparagraph (E, of
16        this paragraph (1), then the Commission shall reopen
17        the docket in which the Commission approved the zero
18        emission standard procurement plan under subparagraph
19        (C) of this paragraph (1) and, after notice and
20        hearing, enter an order acknowledging the contract
21        termination election if such termination is consistent
22        with the provisions of this subsection (d-5).
23        (2) For purposes of this subsection (d-5), the amount
24    paid per kilowatthour means the total amount paid for
25    electric service expressed on a per kilowatthour basis. For
26    purposes of this subsection (d-5), the total amount paid

 

 

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

 

 

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

 

 

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1    under subparagraph (E) of paragraph (1) of this subsection
2    (d-5), then the Agency shall determine whether the actual
3    zero emission credit payments received by the supplier over
4    the term of the contract exceed the Average ZEC Payment,
5    after taking into account any amounts previously credited
6    back to the utility under this paragraph (3). If the Agency
7    determines that the actual zero emission credit payments
8    received by the supplier over the relevant period exceed
9    the Average ZEC Payment, then the supplier shall credit the
10    difference back to the utility. The amount of the credit
11    shall be remitted to the applicable electric utility no
12    later than 120 days after the Agency's determination, which
13    the utility shall reflect as a credit on its retail
14    customer bills as soon as practicable; however, the credit
15    remitted to the utility shall not exceed the total amount
16    of payments received by the facility under its contract.
17        For purposes of this Section, the Average ZEC Payment
18    shall be calculated by multiplying the quantity of zero
19    emission credits delivered under the contract times the
20    average contract price. The average contract price shall be
21    determined by subtracting the amount calculated under
22    subparagraph (B) of this paragraph (3) from the amount
23    calculated under subparagraph (A) of this paragraph (3), as
24    follows:
25            (A) The average of the Social Cost of Carbon, as
26        defined in subparagraph (B) of paragraph (1) of this

 

 

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1        subsection (d-5), during the term of the contract.
2            (B) The average of the market price indices, as
3        defined in subparagraph (B) of paragraph (1) of this
4        subsection (d-5), during the term of the contract,
5        minus the baseline market price index, as defined in
6        subparagraph (B) of paragraph (1) of this subsection
7        (d-5).
8    If the subtraction yields a negative number, then the
9Average ZEC Payment shall be zero.
10        (4) Cost-effective zero emission credits procured from
11    zero emission facilities shall satisfy the applicable
12    definitions set forth in Section 1-10 of this Act.
13        (5) The electric utility shall retire all zero emission
14    credits used to comply with the requirements of this
15    subsection (d-5).
16        (6) Electric utilities shall be entitled to recover all
17    of the costs associated with the procurement of zero
18    emission credits through an automatic adjustment clause
19    tariff in accordance with subsection (k) and (m) of Section
20    16-108 of the Public Utilities Act, and the contracts
21    executed under this subsection (d-5) shall provide that the
22    utilities' payment obligations under such contracts shall
23    be reduced if an adjustment is required under subsection
24    (m) of Section 16-108 of the Public Utilities Act.
25        (7) This subsection (d-5) shall become inoperative on
26    January 1, 2028.

 

 

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1    (e) The draft procurement plans are subject to public
2comment, as required by Section 16-111.5 of the Public
3Utilities Act.
4    (f) The Agency shall submit the final procurement plan to
5the Commission. The Agency shall revise a procurement plan if
6the Commission determines that it does not meet the standards
7set forth in Section 16-111.5 of the Public Utilities Act.
8    (g) The Agency shall assess fees to each affected utility
9to recover the costs incurred in preparation of the annual
10procurement plan for the utility.
11    (h) The Agency shall assess fees to each bidder to recover
12the costs incurred in connection with a competitive procurement
13process.
14    (i) A renewable energy credit, carbon emission credit, or
15zero emission credit can only be used once to comply with a
16single portfolio or other standard as set forth in subsection
17(c), subsection (d), or subsection (d-5) of this Section,
18respectively. A renewable energy credit, carbon emission
19credit, or zero emission credit cannot be used to satisfy the
20requirements of more than one standard. If more than one type
21of credit is issued for the same megawatt hour of energy, only
22one credit can be used to satisfy the requirements of a single
23standard. After such use, the credit must be retired together
24with any other credits issued for the same megawatt hour of
25energy.
26(Source: P.A. 98-463, eff. 8-16-13; 99-536, eff. 7-8-16;

 

 

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199-906, eff. 6-1-17; revised 9-25-17.)
 
2    Section 15. The Public Utilities Act is amended by changing
3Sections 16-111.5 and 16-115A as follows:
 
4    (220 ILCS 5/16-111.5)
5    Sec. 16-111.5. Provisions relating to procurement.
6    (a) An electric utility that on December 31, 2005 served at
7least 100,000 customers in Illinois shall procure power and
8energy for its eligible retail customers in accordance with the
9applicable provisions set forth in Section 1-75 of the Illinois
10Power Agency Act and this Section; provided, that beginning
11with the delivery year commencing June 1, 2019, an electric
12utility that serves fewer than 3,000,000 retail customers, but
13more than 500,000 retail customers in Illinois shall procure
14capacity, including any demand response products, in
15accordance with subsection (b-5) of this Section. Beginning
16with the delivery year commencing on June 1, 2017, an such
17electric utility that on December 31, 2005 served at least
18100,000 customers in Illinois shall also procure zero emission
19credits from zero emission facilities in accordance with the
20applicable provisions set forth in Section 1-75 of the Illinois
21Power Agency Act, and, for years beginning on or after June 1,
222017, the utility shall procure renewable energy resources in
23accordance with the applicable provisions set forth in Section
241-75 of the Illinois Power Agency Act and this Section. A small

 

 

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1multi-jurisdictional electric utility that on December 31,
22005 served less than 100,000 customers in Illinois may elect
3to procure power and energy for all or a portion of its
4eligible Illinois retail customers in accordance with the
5applicable provisions set forth in this Section and Section
61-75 of the Illinois Power Agency Act. This Section shall not
7apply to a small multi-jurisdictional utility until such time
8as a small multi-jurisdictional utility requests the Illinois
9Power Agency to prepare a procurement plan for its eligible
10retail customers. "Eligible retail customers" for the purposes
11of this Section means those retail customers that purchase
12power and energy from the electric utility under fixed-price
13bundled service tariffs, other than those retail customers
14whose service is declared or deemed competitive under Section
1516-113 and those other customer groups specified in this
16Section, including self-generating customers, customers
17electing hourly pricing, or those customers who are otherwise
18ineligible for fixed-price bundled tariff service. For those
19customers that are excluded from the procurement plan's
20electric supply service requirements, and the utility shall
21procure any supply requirements, including capacity, ancillary
22services, and hourly priced energy, in the applicable markets
23as needed to serve those customers, provided that the utility
24may include in its procurement plan load requirements for the
25load that is associated with those retail customers whose
26service has been declared or deemed competitive pursuant to

 

 

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1Section 16-113 of this Act to the extent that those customers
2are purchasing power and energy during one of the transition
3periods identified in subsection (b) of Section 16-113 of this
4Act.
5    (b) Procurement plans A procurement plan shall be prepared
6for each electric utility consistent with the applicable
7requirements of the Illinois Power Agency Act and this Section.
8For purposes of this Section, Illinois electric utilities that
9are affiliated by virtue of a common parent company are
10considered to be a single electric utility. Small
11multi-jurisdictional utilities may request a procurement plan
12for a portion of or all of its Illinois load. Each procurement
13plan shall analyze the projected balance of supply and demand
14for those retail customers to be included in the plan's
15electric supply service requirements over a 5-year period, with
16the first planning year beginning on June 1 of the year
17following the year in which the plan is filed. The plan shall
18specifically identify the wholesale products to be procured
19following plan approval, and shall follow all the requirements
20set forth in the Public Utilities Act and all applicable State
21and federal laws, statutes, rules, or regulations, as well as
22Commission orders. Nothing in this Section precludes
23consideration of contracts longer than 5 years and related
24forecast data. Unless specified otherwise in this Section, in
25the procurement plan or in the implementing tariff, any
26procurement occurring in accordance with this plan shall be

 

 

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1competitively bid through a request for proposals process.
2Approval and implementation of the procurement plan shall be
3subject to review and approval by the Commission according to
4the provisions set forth in this Section. A procurement plan
5shall include each of the following components:
6        (1) Hourly load analysis. This analysis shall include:
7            (i) multi-year historical analysis of hourly
8        loads;
9            (ii) switching trends and competitive retail
10        market analysis;
11            (iii) known or projected changes to future loads;
12        and
13            (iv) growth forecasts by customer class.
14        (2) Analysis of the impact of any demand side and
15    renewable energy initiatives. This analysis shall include:
16            (i) the impact of demand response programs and
17        energy efficiency programs, both current and
18        projected; for small multi-jurisdictional utilities,
19        the impact of demand response and energy efficiency
20        programs approved pursuant to Section 8-408 of this
21        Act, both current and projected; and
22            (ii) supply side needs that are projected to be
23        offset by purchases of renewable energy resources, if
24        any.
25        (3) A plan for meeting the expected load requirements
26    that will not be met through preexisting contracts. This

 

 

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1    plan shall include:
2            (i) definitions of the different Illinois retail
3        customer classes for which supply is being purchased;
4            (ii) the proposed mix of demand-response products
5        for which contracts will be executed during the next
6        year. For small multi-jurisdictional electric
7        utilities that on December 31, 2005 served fewer than
8        100,000 customers in Illinois, these shall be defined
9        as demand-response products offered in an energy
10        efficiency plan approved pursuant to Section 8-408 of
11        this Act. The cost-effective demand-response measures
12        shall be procured whenever the cost is lower than
13        procuring comparable capacity products, provided that
14        such products shall:
15                (A) be procured by a demand-response provider
16            from those retail customers included in the plan's
17            electric supply service requirements;
18                (B) at least satisfy the demand-response
19            requirements of the regional transmission
20            organization market in which the utility's service
21            territory is located, including, but not limited
22            to, any applicable capacity or dispatch
23            requirements;
24                (C) provide for customers' participation in
25            the stream of benefits produced by the
26            demand-response products;

 

 

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1                (D) provide for reimbursement by the
2            demand-response provider of the utility for any
3            costs incurred as a result of the failure of the
4            supplier of such products to perform its
5            obligations thereunder; and
6                (E) meet the same credit requirements as apply
7            to suppliers of capacity, in the applicable
8            regional transmission organization market;
9            (iii) monthly forecasted system supply
10        requirements, including expected minimum, maximum, and
11        average values for the planning period;
12            (iv) the proposed mix and selection of standard
13        wholesale products for which contracts will be
14        executed during the next year, separately or in
15        combination, to meet that portion of its load
16        requirements not met through pre-existing contracts,
17        including but not limited to monthly 5 x 16 peak period
18        block energy, monthly off-peak wrap energy, monthly 7 x
19        24 energy, annual 5 x 16 energy, annual off-peak wrap
20        energy, annual 7 x 24 energy, monthly capacity, annual
21        capacity, peak load capacity obligations, capacity
22        purchase plan, and ancillary services;
23            (v) proposed term structures for each wholesale
24        product type included in the proposed procurement plan
25        portfolio of products; and
26            (vi) an assessment of the price risk, load

 

 

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

 

 

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1        same meaning as in Section 1-10 of the Illinois Power
2        Agency Act. For purposes of this Section, "Agency"
3        shall mean the Illinois Power Agency.
4            (ii) The long-term renewable resources planning
5        process shall be conducted as follows:
6                (A) Electric utilities shall provide a range
7            of load forecasts to the Illinois Power Agency
8            within 45 days of the Agency's request for
9            forecasts, which request shall specify the length
10            and conditions for the forecasts including, but
11            not limited to, the quantity of distributed
12            generation expected to be interconnected for each
13            year.
14                (B) The Agency shall publish for comment the
15            initial long-term renewable resources procurement
16            plan no later than 120 days after the effective
17            date of this amendatory Act of the 99th General
18            Assembly and shall review, and may revise, the plan
19            at least every 2 years thereafter. To the extent
20            practicable, the Agency shall review and propose
21            any revisions to the long-term renewable energy
22            resources procurement plan in conjunction with the
23            Agency's other planning and approval processes
24            conducted under this Section. The initial
25            long-term renewable resources procurement plan
26            shall:

 

 

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

 

 

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1            the Agency on the initial long-term renewable
2            resources procurement plan and all subsequent
3            revisions. All comments submitted to the Agency
4            shall be specific, supported by data or other
5            detailed analyses, and, if objecting to all or a
6            portion of the procurement plan, accompanied by
7            specific alternative wording or proposals. All
8            comments shall be posted on the Agency's and
9            Commission's websites. During this 45-day comment
10            period, the Agency shall hold at least one public
11            hearing within each utility's service area that is
12            subject to the requirements of this paragraph (5)
13            for the purpose of receiving public comment.
14            Within 21 days following the end of the 45-day
15            review period, the Agency may revise the long-term
16            renewable resources procurement plan based on the
17            comments received and shall file the plan with the
18            Commission for review and approval.
19                (C) Within 14 days after the filing of the
20            initial long-term renewable resources procurement
21            plan or any subsequent revisions, any person
22            objecting to the plan may file an objection with
23            the Commission. Within 21 days after the filing of
24            the plan, the Commission shall determine whether a
25            hearing is necessary. The Commission shall enter
26            its order confirming or modifying the initial

 

 

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1            long-term renewable resources procurement plan or
2            any subsequent revisions within 120 days after the
3            filing of the plan by the Illinois Power Agency.
4                (D) The Commission shall approve the initial
5            long-term renewable resources procurement plan and
6            any subsequent revisions, including expressly the
7            forecast used in the plan and taking into account
8            that funding will be limited to the amount of
9            revenues actually collected by the utilities, if
10            the Commission determines that the plan will
11            reasonably and prudently accomplish the
12            requirements of Section 1-56 and subsection (c) of
13            Section 1-75 of the Illinois Power Agency Act. The
14            Commission shall also approve the process for the
15            submission, review, and approval of the proposed
16            contracts to procure renewable energy credits or
17            implement the programs authorized by the
18            Commission pursuant to a long-term renewable
19            resources procurement plan approved under this
20            Section.
21            (iii) The Agency or third parties contracted by the
22        Agency shall implement all programs authorized by the
23        Commission in an approved long-term renewable
24        resources procurement plan without further review and
25        approval by the Commission. Third parties shall not
26        begin implementing any programs or receive any payment

 

 

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

 

 

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

 

 

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1    contribution, calculated in the manner specified in the
2    MISO Tariff, of, as applicable, a retail customer, a group
3    of retail customers served by a Load Serving Entity, or all
4    retail customers of the Applicable Electric Utility in the
5    Applicable Local Resource Zone.
6        "Applicable Electric Utility" shall mean an electric
7    utility serving less than 3,000,000 retail customers and
8    more than 500,000 retail customers in this State.
9        "Applicable Local Resource Zone" shall have the
10    meaning set forth in Section 1-75 of the Illinois Power
11    Agency Act.
12        "Municipal utility" shall mean an entity described in
13    paragraph (1) of subsection (b) of Section 3-105 of this
14    Act.
15        "Electric cooperative" shall have the meaning set
16    forth in Section 3-119 of this Act.
17        "Contracted LSE Capacity" shall mean the amount of
18    capacity that a Load Serving Entity (i) has procured and
19    has under contract for the delivery year beginning June 1,
20    2019, June 1, 2020, or June 1, 2021, under a contract or
21    contracts entered into no later than the effective date of
22    this amendatory Act of the 100th General Assembly, for
23    purposes of serving retail customers of the Applicable
24    Electric Utility in the Applicable Local Resource Zone; and
25    (ii) certifies to the Agency, in a certification signed by
26    an officer of the Load Serving Entity and submitted to the

 

 

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1    Agency no later than 30 days following the effective date
2    of this amendatory Act of the 100th General Assembly, that
3    the Load Serving Entity has procured and has under
4    contract. For purposes of this definition, capacity under
5    contract shall include capacity that a supplier of capacity
6    has entered into a written commitment to provide to a Load
7    Serving Entity that is a corporate affiliate of the
8    capacity supplier.
9        (2)(A) During the period between January 1 and March 1
10    of 2019, and of each year thereafter, the Agency, and, as
11    applicable, the procurement administrator, shall conduct a
12    capacity procurement event to procure capacity that is
13    sufficient, together with capacity procured in previous
14    capacity procurement events, to meet at least 90% of the
15    portion of the projected Planning Reserve Margin
16    Requirement for the delivery year beginning the third June
17    1 following the capacity procurement event that is
18    attributable to the projected load of the retail customers
19    of each Applicable Electric Utility. Provided, that (i) the
20    initial capacity procurement event conducted in 2019 shall
21    also procure capacity that is sufficient to meet at least
22    90% of the projected Planning Reserve Margin Requirement
23    for the delivery years beginning June 1, 2020, and June 1,
24    2021, that is attributable to the projected load of the
25    retail customers of each Applicable Electric Utility; and
26    (ii) each capacity procurement event shall also procure any

 

 

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1    additional capacity that is necessary, together with
2    capacity procured in previous annual capacity procurement
3    events, to meet 100% of the portion of the Planning Reserve
4    Margin Requirement for the delivery year beginning June 1
5    of that same year that is attributable to the projected
6    load of the retail customers of each Applicable Electric
7    Utility. The capacity procurement plans developed by the
8    Agency and the capacity procurement events shall be
9    designed to procure capacity to ensure long-term resource
10    adequacy at the lowest cost over time, taking into account
11    the benefits of price stability and the need to ensure the
12    reliability, adequacy, and resilience of the bulk power
13    generation and delivery system in the Applicable Local
14    Resource Zone.
15            (B) In determining or projecting the Planning
16        Reserve Margin Requirement and the Local Clearing
17        Requirement in the Applicable Local Resource Zone
18        attributable to the retail customers of the Applicable
19        Electric Utility for a delivery year for purposes of
20        capacity procurement plans and capacity procurement
21        events under this subsection (b-5), the Agency and, as
22        applicable, the procurement administrator shall use,
23        as applicable, the Planning Reserve Margin
24        Requirement, Peak Load Contribution, and Local
25        Clearing Requirement as established or projected by
26        the Midcontinent Independent System Operator. If the

 

 

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1        Midcontinent Independent System Operator has not
2        established or released a projection of the Planning
3        Reserve Margin Requirement, Peak Load Contribution, or
4        Local Clearing Requirement for a delivery year, the
5        Agency and, as applicable, the procurement
6        administrator shall develop forecasts of the Planning
7        Reserve Margin Requirement, Peak Load Contribution,
8        and Local Clearing Requirement for that delivery year
9        based on available information, including, without
10        limiting the foregoing, the most recent Planning
11        Reserve Margin Requirement, Peak Load Contribution,
12        and Local Clearing Requirement established by the
13        Midcontinent Independent System Operator for a
14        delivery year and any other information from the
15        Midcontinent Independent System Operator and the
16        Applicable Electric Utility. If requested by the
17        Agency, the Applicable Electric Utility shall provide
18        to the Agency actual and forecasted peak electric load
19        information for the retail customers of the Applicable
20        Electric Utility in the Applicable Local Resource
21        Zone.
22        (3)(A) Each capacity procurement event may include the
23    procurement of capacity through a mix of contracts with
24    different terms and different initial delivery dates as
25    proposed by the Agency in its capacity procurement plan and
26    approved by the Commission, so long as each annual capacity

 

 

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1    procurement event results in the procurement of an amount
2    of capacity that, together with capacity procured in
3    previous capacity procurement events, is equal to the
4    portion or portions of the projected Planning Reserve
5    Margin Requirement of the retail customers of each
6    Applicable Electric Utility for the delivery year or
7    delivery years for which capacity is to be procured as
8    specified in paragraph (2) of this subsection (b-5).
9    Provided, that in the initial procurement event conducted
10    in 2019, a portion, as proposed by the Agency and approved
11    by the Commission, of the capacity shall be procured under
12    contracts with a term of at least 3 years beginning June 1,
13    2019.
14            (B) The Agency's annual capacity procurement plans
15        for the Applicable Local Resource Zone shall be
16        developed as follows: No later than July 15 of each
17        year, the Agency shall post on its website and
18        otherwise make publicly available, for public comment,
19        its draft capacity procurement plan for the capacity
20        procurement event to be held in February of the
21        following calendar year. Interested parties shall be
22        allowed 30 days from the posting of the draft capacity
23        procurement plan to submit comments to the Agency. The
24        Agency shall consider any comments received and shall
25        file its proposed capacity procurement plan with the
26        Commission within 15 days following the conclusion of

 

 

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1        the public comment period. The Commission shall open a
2        docketed proceeding for consideration and approval or
3        modification of the proposed capacity procurement
4        plan. The Commission or its administrative law judge
5        assigned to the proceeding shall establish a
6        procedural schedule for the proceeding that will
7        enable the Commission to issue an order, within 90 days
8        following the date the capacity procurement plan was
9        filed with the Commission, approving, with any
10        modifications directed by the Commission, the capacity
11        procurement plan. On or before December 1 each year,
12        the Commission shall issue its order in the proceeding
13        approving, or approving with modifications, the
14        capacity procurement plan. Provided, that for the
15        initial capacity procurement event to be conducted in
16        2019, (i) the Agency shall file its proposed capacity
17        procurement plan with the Commission within 30 days
18        following the effective date of this amendatory Act of
19        the 100th General Assembly; (ii) the Commission, after
20        notice and hearing, shall approve the capacity
21        procurement plan, with such modifications as directed
22        by the Commission, within 30 days following the date
23        that the proposed capacity procurement plan was filed
24        with the Commission; and (iii) the capacity
25        procurement event shall be held no later than March 1,
26        2019.

 

 

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1        (4) To the extent that any other provision of this
2    Section or any provision of the Illinois Power Agency Act
3    are not inconsistent with the provisions of this subsection
4    (b-5) for, and are otherwise applicable to, capacity
5    procurement events conducted under this subsection (b-5),
6    those other provisions shall be used in conducting capacity
7    procurement events conducted under this subsection (b-5).
8        (5) The capacity procurement plans prepared by, and the
9    capacity procurement events conducted by, the Agency under
10    this subsection (b-5) shall be subject to the following
11    requirements:
12            (A) The mix of capacity resources selected in any
13        procurement event conducted under this subsection
14        (b-5) must include sufficient qualified Zonal Resource
15        Credits, together with capacity procured in previous
16        capacity procurement events, to satisfy the portion
17        specified in paragraph (2) of this subsection (b-5) of
18        the Planning Reserve Margin Requirements of the MISO
19        Tariff for the Applicable Local Resource Zone, and must
20        otherwise be consistent with the Planning Reserve
21        Margin Requirements for capacity established by the
22        Midcontinent Independent System Operator. Provided,
23        that the procurement of capacity in the capacity
24        procurement events shall not include the portion of the
25        Planning Reserve Margin Requirement for the Applicable
26        Local Resource Zone associated with customers served

 

 

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1        by a municipal utility or an electric cooperative.
2            (B) The capacity to be procured for each delivery
3        year shall include an amount of capacity from capacity
4        resources physically located within the Applicable
5        Local Resource Zone that is no less than the portion of
6        the projected Local Clearing Requirement for the
7        Applicable Local Resource Zone for that delivery year
8        attributable to the load of the retail customers of the
9        Applicable Electric Utility.
10            (C) In each capacity procurement plan, the Agency
11        shall include a discussion of whether factors, other
12        than price, to support reliability in the Applicable
13        Local Resource Zone should be taken into account in
14        selecting capacity resources in the capacity
15        procurement event or events that are the subject of the
16        capacity procurement plan. The Agency may propose in
17        the capacity procurement plan to procure a specified
18        amount or amounts of capacity from capacity resources
19        located within the Applicable Local Resource Zone,
20        over and above the amount of capacity required to
21        satisfy the Local Clearing Requirement, to support
22        reliability within the Applicable Local Resource Zone,
23        including, but not limited to, for purposes of
24        transmission security, voltage support, dynamic
25        stability, frequency response, fuel security and
26        on-site fuel supply, and import transfer capability.

 

 

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1        The inclusion of any such factors in the capacity
2        procurement plan shall be subject to approval of the
3        Commission.
4            (D) Any capacity resource, including, without
5        limitation, demand response resources, energy
6        efficiency resources, and renewable energy resources,
7        that meets the other eligibility requirements of this
8        subsection (b-5), shall be eligible to participate in a
9        capacity procurement event under this subsection (b-5)
10        if, and to the extent that, the resource satisfies all
11        the requirements of the MISO Tariff to be designated as
12        a Zonal Resource Credit or other Planning Resource in a
13        Load Serving Entity's Fixed Resource Adequacy Plan or
14        successor mechanism for the Applicable Local Resource
15        Zone. Provided, that a municipal utility, an electric
16        cooperative, a municipal electric power agency or
17        other group, association, or consortium of municipal
18        utilities or electric cooperatives may participate in
19        a capacity procurement event, using capacity that it
20        owns or leases, only to the extent that the owned and
21        leased capacity of the municipal utility, electric
22        cooperative, municipal electric power agency, or
23        group, association, or consortium exceeds the Planning
24        Reserve Margin Requirement (or comparable measure in
25        the regional transmission organization in which the
26        customers of the municipal utility, electric

 

 

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1        cooperative, municipal electric power agency, or
2        members of the group, association, or consortium are
3        located) attributable to the load of the customers that
4        the municipal utility, electric cooperative, municipal
5        electric power agency, or group, association, or
6        consortium is obligated to serve. As a condition to
7        eligibility to participate in a capacity procurement
8        event conducted under this subsection (b-5), each
9        municipal utility, electric cooperative, municipal
10        electric power agency, and group, association, and
11        consortium of municipal utilities or electric
12        cooperatives shall certify its compliance with this
13        requirement to the Agency for the capacity procurement
14        event.
15            (E) As a condition to eligibility to participate in
16        a capacity procurement event conducted under this
17        subsection (b-5), a supplier of capacity resources (i)
18        must commit to pay any fees assessed by the Agency to
19        recover the Agency's costs of conducting the capacity
20        procurement event and any related activities under
21        this subsection (b-5); and (ii) must agree that, if
22        selected as a supplier in the capacity procurement
23        event, it will enter into a standard form contract
24        developed by the procurement administrator and
25        conforming to the requirements of this subsection
26        (b-5) with each Load Serving Entity for which capacity

 

 

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1        is procured in the capacity procurement event.
2            (F) For each capacity procurement event conducted
3        under this subsection (b-5), the procurement
4        administrator, in consultation with the Commission
5        staff, Agency staff, and the procurement monitor,
6        shall establish confidential market-based benchmarks,
7        in accordance with paragraph (3) of subsection (e) of
8        this Section, for evaluating the final prices in the
9        contracts for the capacity that will be procured.
10            (G) In each capacity procurement event conducted
11        under this subsection (b-5), the procurement
12        administrator shall select capacity resources in the
13        amounts offered by capacity suppliers based on each
14        capacity supplier's offer price until sufficient
15        capacity (including any capacity offered under item
16        (ii) of subparagraph (H) and subparagraph (J) of this
17        paragraph (5) of this subsection (b-5)) has been
18        selected to reach the total amount of capacity to be
19        selected for each delivery year for which capacity is
20        being procured in the capacity procurement event.
21        Provided, that in selecting capacity resources, the
22        procurement administrator shall also take into
23        account, in accordance with and to the extent and in
24        the manner specified in, the capacity procurement plan
25        approved by the Commission for the capacity
26        procurement event, other factors to support

 

 

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1        reliability in the Applicable Local Resource Zone,
2        including, but not limited to, for purposes of
3        transmission security, voltage support, dynamic
4        stability, frequency response, fuel security and
5        on-site fuel supply, and import transfer capability.
6            If the procurement administrator, or the
7        Commission upon receiving the procurement
8        administrator's recommendation submitted under item
9        (ix) of paragraph (1) of subsection (c) of this Section
10        for the immediately upcoming delivery year beginning
11        on the immediately upcoming June 1, determines that an
12        insufficient amount of capacity has been offered in
13        bids that conform to the bidding requirements for the
14        capacity procurement event and at bid prices that are
15        deemed reasonable as compared to the applicable
16        benchmarks to fulfill the capacity procurement
17        objectives of the capacity procurement event, then the
18        Agency and the procurement administrator, in their
19        discretion, shall either (i) if sufficient time
20        remains prior to March 1, expeditiously conduct an
21        additional bid solicitation to procure additional
22        capacity for the immediately upcoming delivery year;
23        or (ii) notify the Load Serving Entities in the
24        Applicable Local Resource Zone that any additional
25        capacity required to meet the Planning Reserve Margin
26        Requirement obligations of the Load Serving Entity for

 

 

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1        the immediately upcoming delivery year shall be
2        obtained through the planning reserve auction or other
3        auction conducted by the Midcontinent Independent
4        System Operator.
5            (H) For the initial capacity procurement event to
6        be conducted in 2019 to procure capacity for the
7        delivery years beginning June 1, 2019, June 1, 2020,
8        and June 1, 2021, any Load Serving Entity holding
9        Contracted LSE Capacity may, but shall not be required
10        to, participate in the capacity procurement event as a
11        supplier of capacity resources using either of the
12        following two options:
13                (i) The Load Serving Entity may bid all or a
14            portion of its Contracted LSE Capacity into the
15            capacity procurement event as a capacity resource,
16            at a specified offer price, and the Contracted LSE
17            Capacity bid shall be eligible to be selected by
18            the procurement administrator in accordance with
19            subparagraph (G) of this paragraph (5) of this
20            subsection (b-5).
21                (ii) The Load Serving Entity may designate all
22            or a portion of its Contracted LSE Capacity to be
23            selected by the procurement administrator at a
24            price equal to the weighted average offer price of
25            all other capacity resources selected by the
26            procurement administrator. Under this option, the

 

 

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1            Load Serving Entity's Contracted LSE Capacity is
2            selected as a capacity resource at a price equal to
3            the weighted average offer price of all other
4            capacity resources selected by the procurement
5            administrator.
6            Under either items (i) or (ii), the Contracted LSE
7        Capacity must be supplied from a capacity resource that
8        meets the other requirements of this subsection (b-5)
9        to participate and be selected in the capacity
10        procurement event, and the Contracted LSE Capacity
11        must be offered for a contract term lasting until the
12        end date of the Load Serving Entity's contract term for
13        the Contracted LSE Capacity or until May 31, 2022,
14        whichever occurs earlier. A Load Serving Entity shall
15        not be required to use either of the options specified
16        in this subparagraph (H) for its Contracted LSE
17        Capacity. The Agency shall maintain as confidential
18        and proprietary and exempt from disclosure the amount
19        of Contracted LSE Capacity certified by a Load Serving
20        Entity to the Agency, except to the extent that the
21        Load-Serving Entity elects to use one or both of the
22        options specified in this subparagraph (H).
23            (I) Each capacity supplier whose capacity resource
24        is selected shall enter into contracts conforming to
25        the provisions of this subsection (b-5) with the Load
26        Serving Entities serving the retail customers of the

 

 

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1        Applicable Electric Utility in the Applicable Local
2        Resource Zone for, in the aggregate, the total amount
3        of capacity selected at the price bid by the capacity
4        supplier for that amount of capacity. Provided, that
5        (i) the procurement administrator shall have authority
6        to negotiate with a capacity supplier that submitted a
7        bid price below the applicable benchmark price
8        established for the capacity procurement event to
9        lower that capacity supplier's bid price, as provided
10        in item (vii) of subparagraph (1) of subsection (c) of
11        this Section; and (ii) the selection of capacity
12        suppliers, the amounts of capacity selected from each
13        supplier, and the prices for any capacity resources
14        selected in a capacity procurement event shall be
15        subject to the approval of the Commission in accordance
16        with subsection (f) of this Section.
17            (J) Capacity awarded in the Peak Time Rewards
18        program or successor program, if any, of an Applicable
19        Electric Utility shall be included in the capacity
20        resources selected for each delivery year for which
21        capacity is procured in a capacity procurement event,
22        at a price for that delivery year equal to the weighted
23        average price of the other capacity resources selected
24        under this subsection (b-5) for the delivery year.
25        Prior to a capacity procurement event being conducted
26        under this subsection (b-5) to procure capacity for a

 

 

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1        delivery year, the Applicable Electric Utility shall
2        notify the Agency and the procurement administrator of
3        the amount of capacity awarded or forecasted to be
4        awarded in the Peak Time Rewards program for each
5        delivery year for which capacity is to be procured in
6        the capacity procurement event. For purposes of
7        contract administration and settlements, the
8        Applicable Electric Utility shall be deemed the
9        capacity supplier of capacity awarded in its Peak Time
10        Rewards program or successor program.
11        (6) Each (i) capacity supplier selected in a capacity
12    procurement event conducted by the Illinois Power Agency
13    under this subsection (b-5), including each Load Serving
14    Entity offering Contracted LSE Capacity under item (i) of
15    subparagraph (H) of paragraph (5) of this subsection (b-5)
16    that is selected in the capacity procurement event, each
17    Load Serving Entity designating Contracted LSE Capacity
18    under item (ii) of subparagraph (H) of paragraph (5) of
19    this subsection (b-5), and an Applicable Electric Utility
20    as the supplier of capacity awarded under its Peak Time
21    Rewards program or successor program in accordance with
22    subparagraph (J) of paragraph (5) of this subsection (b-5);
23    and (ii) each Load Serving Entity serving retail customers
24    of an Applicable Electric Utility in an Applicable Resource
25    Zone, shall enter into contracts for capacity developed by
26    the procurement administrator in accordance with paragraph

 

 

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1    (9) of this subsection (b-5).
2        (7) The Agency shall request that the Midcontinent
3    Independent System Operator serve as and perform the
4    responsibilities of the capacity data administrator as set
5    forth in this subsection (b-5). If the Midcontinent
6    Independent System Operator declines to serve as, or
7    resigns as, the capacity data administrator, the Agency,
8    after consultation with the Commission, shall contract
9    with a third party to serve as the capacity data
10    administrator. The costs of the capacity data
11    administrator to perform its responsibilities under this
12    subsection (b-5) shall be reimbursed by the Agency. The
13    Agency shall recover such costs through fees assessed to
14    the Load Serving Entities that enter into contracts for
15    capacity under this Section.
16        (8) The Applicable Electric Utility shall supply to the
17    capacity data administrator, on a daily basis, a report or
18    reports showing the total load of the Applicable Electric
19    Utility's retail customers in the Applicable Local
20    Resource Zone that is served by each Load Serving Entity on
21    each day. Based upon and in reliance on the information
22    provided by the Applicable Electric Utility, the capacity
23    data administrator shall issue daily reports to each
24    capacity supplier and each Load Serving Entity setting
25    forth the amount of capacity being provided by each
26    capacity supplier under its contract with each Load Serving

 

 

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1    Entity on that day, calculated in accordance with
2    subparagraph (C) of paragraph (9) of this subsection (b-5).
3        (9) The procurement administrator, in conjunction with
4    the Agency and the staff of the Commission and based on
5    consultation with prospective capacity suppliers and with
6    Load Serving Entities serving retail customers of
7    Applicable Electric Utilities in an Applicable Local
8    Resource Zone, shall promulgate, and shall revise from time
9    to time as necessary and appropriate, standard form
10    contracts to be entered into between the Load Serving
11    Entities and capacity suppliers selected in procurement
12    events conducted under this subsection (b-5). The standard
13    form contracts to be used in connection with each capacity
14    procurement event conducted under this subsection (b-5)
15    shall be made available to prospective capacity suppliers
16    prior to the capacity procurement event. Each capacity
17    supplier seeking to participate in a capacity procurement
18    event shall agree, as a condition of eligibility to
19    participate, that if selected, it will enter into the
20    standard form contract with each Load Serving Entity
21    serving retail customers of the Applicable Electric
22    Utility in the Applicable Local Resource Zone. The standard
23    form contracts shall contain, without limitation, the
24    following provisions.
25            (A) Each contract between a capacity supplier and a
26        Load Serving Entity shall specify that the amount of

 

 

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1        capacity to be provided by the capacity supplier and
2        purchased by the Load Serving Entity shall be that
3        portion of the total capacity to be supplied by the
4        capacity supplier equal to the load ratio share of the
5        Applicable Electric Utility's retail customers served
6        by the Load Serving Entity as a percentage of the total
7        Planning Reserve Margin Requirement attributable to
8        the load of the Applicable Electric Utility's retail
9        customers in the Applicable Local Resource Zone on
10        March 1 immediately preceding the first delivery year
11        for which the contract is in effect.
12            (B) The standard form contracts shall specify that
13        if the Agency determines between March 1 and June 1 of
14        a year that the aggregate amount of capacity procured
15        in capacity procurement events for the immediately
16        upcoming delivery year beginning June 1 exceeds the
17        amount of capacity needed to meet the Planning Reserve
18        Margin Requirement attributable to the load of the
19        retail customers of the Applicable Electric Utility in
20        the Applicable Local Resource Zone, and directs that
21        the capacity to be supplied by each capacity supplier
22        for the immediately upcoming delivery year beginning
23        June 1 shall be reduced on a pro rata basis so that the
24        aggregate amount of capacity to be supplied for the
25        immediately upcoming delivery year is equal to the
26        amount of capacity needed to meet the Planning Reserve

 

 

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1        Margin Requirement attributable to the load of the
2        retail customers of the Applicable Electric Utility in
3        the Applicable Local Resource Zone, then the amount of
4        capacity to be supplied and purchased under each
5        contract between a capacity supplier and a Load Serving
6        Entity shall be deemed reduced as directed by the
7        Agency. The standard form contract shall specify that
8        any such reduction in the capacity to be supplied under
9        the contract shall apply only to the immediately
10        upcoming delivery year and not to any subsequent years
11        in the contract term. The standard form contracts shall
12        provide that in the event of a reduction in the
13        capacity to be supplied in accordance with this
14        subparagraph (B), the capacity supplier may resell or
15        otherwise dispose of the capacity it is no longer
16        obligated to supply, including by offering the
17        capacity into a planning reserve auction or other
18        auction conducted by the Midcontinent Independent
19        System Operator.
20            (C) Each contract between a capacity supplier and a
21        Load Serving Entity shall specify that beginning on
22        June 1 of the first delivery year for which the
23        contract is in effect, and continuing for the term of
24        the contract, the amount of capacity being provided by
25        the capacity supplier and purchased by the Load Serving
26        Entity shall be deemed adjusted on a daily basis to be

 

 

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1        equal to that portion of the total capacity to be
2        supplied by the capacity supplier equal to the load
3        ratio share of the Applicable Electric Utility's
4        retail customers in the Applicable Local Resource Zone
5        that are served by the Load Serving Entity to the total
6        Planning Reserve Margin Requirement attributable to
7        the load of the Applicable Electric Utility's retail
8        customers in the Applicable Local Resource Zone on that
9        day.
10            (D) The standard form contracts shall specify the
11        frequency of billing periods and payment remittance
12        periods for the capacity supplier to bill the Load
13        Serving Entity, and the Load Serving Entity to remit
14        payment to the capacity supplier, for the capacity
15        provided by the capacity supplier to the Load Serving
16        Entity under the contract on each day during the
17        billing period. A capacity supplier and a Load Serving
18        Entity may agree to modify their contract to provide
19        for billing and payment remittance periods other than
20        the billing and payment dates specified in the standard
21        form contracts.
22            (E) The standard form contracts shall include
23        provisions relating to the credit, collateral,
24        performance, and dispute resolution obligations of the
25        parties, and other terms and conditions as described in
26        paragraph (2) of subsection (e) of this Section. The

 

 

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1        provisions in the standard form contracts relating to
2        credit and collateral shall determine the collateral
3        obligations of the Load Serving Entity based on
4        application of metrics relating to the Load Serving
5        Entity's financial condition and creditworthiness, the
6        frequency of billing periods and payment remittance
7        periods specified in the contract, and the legal
8        authority of the Load Serving Entity to recover its
9        costs for the capacity from its retail customers. A
10        capacity supplier and a Load Serving Entity may agree
11        to modify these terms in their contract.
12        (10) Each Load Serving Entity that is an alternative
13    retail electric supplier shall be allowed to recover and
14    shall be responsible for recovering its costs for capacity
15    incurred under contracts entered into under this
16    subsection (b-5) in accordance with its contracts and
17    arrangements entered into with its customers. A Load
18    Serving Entity that is an Applicable Electric Utility shall
19    recover its costs for capacity incurred under contracts
20    entered into under this subsection (b-5) in accordance with
21    the electric utility's tariff or other cost recovery
22    mechanism approved by the Commission under subsection (l)
23    of this Section.
24        (11) Nothing in this subsection (b-5) is intended to
25    preclude the Agency or the Commission from conducting the
26    procurement events and processes described in this

 

 

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1    subsection (b-5) in conjunction with other procurement
2    processes described in this Section or Section 1-75 of the
3    Illinois Power Agency Act, to the extent the Agency and the
4    Commission find that approach is appropriate and
5    practicable while allowing the annual capacity procurement
6    plans to be developed and submitted by the Agency and
7    approved by the Commission in accordance with the schedule
8    set forth in subparagraph (B) of paragraph (3) of this
9    subsection (b-5), and allowing the capacity procurement
10    events to be conducted within the time periods specified in
11    this subsection (b-5).
12        (12) It is the intent of this subsection (b-5) that the
13    Agency's and the Commission's implementation of this
14    subsection, including, but not limited to, the timing and
15    number of procurement events and the duration of contracts,
16    shall conform, at a minimum, to any applicable requirements
17    of the MISO Tariff, as the MISO Tariff may be changed,
18    replaced, or superseded from time to time, that are
19    necessary for Load Serving Entities serving retail
20    customers of an Applicable Electric Utility in an
21    Applicable Local Resource Zone to exercise and implement
22    the Fixed Resource Adequacy Plan capacity procurement
23    option, or a successor capacity procurement mechanism.
24    Notwithstanding anything to the contrary, the Agency and
25    the Commission shall have the authority to take all steps
26    necessary to implement this subsection (b-5) consistent

 

 

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1    with applicable federal tariffs, and as those tariffs may
2    be changed, replaced, or superseded from time to time, to
3    procure capacity for the electric load of retail customers
4    of Applicable Electric Utilities subject to the
5    requirements of this subsection (b-5).
6    (c) The procurement process set forth in Section 1-75 of
7the Illinois Power Agency Act and subsection (e) of this
8Section shall be administered by a procurement administrator
9and monitored by a procurement monitor. Provided, beginning
10with the delivery year commencing June 1, 2019, that if and to
11the extent a provision of subsection (b-5) of this Section is
12inconsistent with a provision of Section 1-75 of the Illinois
13Power Agency Act or of another subsection of this Section, the
14provision of subsection (b-5) shall control and shall be
15applied for purposes of capacity procurement plans and capacity
16procurement processes conducted under subsection (b-5).
17        (1) The procurement administrator shall:
18            (i) design the final procurement process in
19        accordance with Section 1-75 of the Illinois Power
20        Agency Act and subsection (e) of this Section following
21        Commission approval of the procurement plan;
22            (ii) develop benchmarks in accordance with
23        subsection (e)(3) to be used to evaluate bids; these
24        benchmarks shall be submitted to the Commission for
25        review and approval on a confidential basis prior to
26        the procurement event;

 

 

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1            (iii) serve as the interface between the electric
2        utility and suppliers;
3            (iv) manage the bidder pre-qualification and
4        registration process;
5            (v) obtain the electric utilities' agreement to
6        the final form of all supply contracts and credit
7        collateral agreements;
8            (vi) administer the request for proposals process;
9            (vii) have the discretion to negotiate to
10        determine whether bidders are willing to lower the
11        price of bids that meet the benchmarks approved by the
12        Commission; any post-bid negotiations with bidders
13        shall be limited to price only and shall be completed
14        within 24 hours after opening the sealed bids and shall
15        be conducted in a fair and unbiased manner; in
16        conducting the negotiations, there shall be no
17        disclosure of any information derived from proposals
18        submitted by competing bidders; if information is
19        disclosed to any bidder, it shall be provided to all
20        competing bidders;
21            (viii) maintain confidentiality of supplier and
22        bidding information in a manner consistent with all
23        applicable laws, rules, regulations, and tariffs;
24            (ix) submit a confidential report to the
25        Commission recommending acceptance or rejection of
26        bids;

 

 

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1            (x) notify the utility of contract counterparties
2        and contract specifics; and
3            (xi) administer related contingency procurement
4        events.
5        (2) The procurement monitor, who shall be retained by
6    the Commission, shall:
7            (i) monitor interactions among the procurement
8        administrator, suppliers, and utility;
9            (ii) monitor and report to the Commission on the
10        progress of the procurement process;
11            (iii) provide an independent confidential report
12        to the Commission regarding the results of the
13        procurement event;
14            (iv) assess compliance with the procurement plans
15        approved by the Commission for each utility that on
16        December 31, 2005 provided electric service to at least
17        100,000 customers in Illinois and for each small
18        multi-jurisdictional utility that on December 31, 2005
19        served less than 100,000 customers in Illinois;
20            (v) preserve the confidentiality of supplier and
21        bidding information in a manner consistent with all
22        applicable laws, rules, regulations, and tariffs;
23            (vi) provide expert advice to the Commission and
24        consult with the procurement administrator regarding
25        issues related to procurement process design, rules,
26        protocols, and policy-related matters; and

 

 

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1            (vii) consult with the procurement administrator
2        regarding the development and use of benchmark
3        criteria, standard form contracts, credit policies,
4        and bid documents.
5    (d) Except as provided in subsection (j), or as otherwise
6provided in subsection (b-5) for capacity procurement plans and
7capacity procurement processes to be developed and conducted as
8required by subsection (b-5), the planning process shall be
9conducted as follows:
10        (1) Beginning in 2008, each Illinois utility procuring
11    power pursuant to this Section shall annually provide a
12    range of load forecasts to the Illinois Power Agency by
13    July 15 of each year, or such other date as may be required
14    by the Commission or Agency. The load forecasts shall cover
15    the 5-year procurement planning period for the next
16    procurement plan and shall include hourly data
17    representing a high-load, low-load, and expected-load
18    scenario for the load of those retail customers included in
19    the plan's electric supply service requirements. The
20    utility shall provide supporting data and assumptions for
21    each of the scenarios.
22        (2) Beginning in 2008, the Illinois Power Agency shall
23    prepare a procurement plan by August 15th of each year, or
24    such other date as may be required by the Commission. The
25    procurement plan shall identify the portfolio of
26    demand-response and power and energy products to be

 

 

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1    procured. Cost-effective demand-response measures shall be
2    procured as set forth in item (iii) of subsection (b) of
3    this Section. Copies of the procurement plan shall be
4    posted and made publicly available on the Agency's and
5    Commission's websites, and copies shall also be provided to
6    each affected electric utility. An affected utility shall
7    have 30 days following the date of posting to provide
8    comment to the Agency on the procurement plan. Other
9    interested entities also may comment on the procurement
10    plan. All comments submitted to the Agency shall be
11    specific, supported by data or other detailed analyses,
12    and, if objecting to all or a portion of the procurement
13    plan, accompanied by specific alternative wording or
14    proposals. All comments shall be posted on the Agency's and
15    Commission's websites. During this 30-day comment period,
16    the Agency shall hold at least one public hearing within
17    each utility's service area for the purpose of receiving
18    public comment on the procurement plan. Within 14 days
19    following the end of the 30-day review period, the Agency
20    shall revise the procurement plan as necessary based on the
21    comments received and file the procurement plan with the
22    Commission and post the procurement plan on the websites.
23        (3) Within 5 days after the filing of the procurement
24    plan, any person objecting to the procurement plan shall
25    file an objection with the Commission. Within 10 days after
26    the filing, the Commission shall determine whether a

 

 

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1    hearing is necessary. The Commission shall enter its order
2    confirming or modifying the procurement plan within 90 days
3    after the filing of the procurement plan by the Illinois
4    Power Agency.
5        (4) The Commission shall approve the procurement plan,
6    including expressly the forecast used in the procurement
7    plan, if the Commission determines that it will ensure
8    adequate, reliable, affordable, efficient, and
9    environmentally sustainable electric service at the lowest
10    total cost over time, taking into account any benefits of
11    price stability. Provided, that for capacity procurement
12    plans developed under subsection (b-5) of this Section, the
13    Commission shall approve the capacity procurement plan, as
14    modified to the extent directed by the Commission, if the
15    Commission determines that the capacity procurement plan
16    conforms to the requirements and objectives of subsection
17    (b-5), including the objective to ensure long-term
18    resource adequacy at the lowest cost over time, taking into
19    account the benefits of price stability and the need to
20    ensure the reliability, adequacy, and resilience of the
21    bulk power generation and delivery system in the Applicable
22    Local Resource Zone.
23    (e) The procurement process shall include each of the
24following components:
25        (1) Solicitation, pre-qualification, and registration
26    of bidders. The procurement administrator shall

 

 

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1    disseminate information to potential bidders to promote a
2    procurement event, notify potential bidders that the
3    procurement administrator may enter into a post-bid price
4    negotiation with bidders that meet the applicable
5    benchmarks, provide supply requirements, and otherwise
6    explain the competitive procurement process. In addition
7    to such other publication as the procurement administrator
8    determines is appropriate, this information shall be
9    posted on the Illinois Power Agency's and the Commission's
10    websites. The procurement administrator shall also
11    administer the prequalification process, including
12    evaluation of credit worthiness, compliance with
13    procurement rules, and agreement to the standard form
14    contract developed pursuant to paragraph (2) of this
15    subsection (e). The procurement administrator shall then
16    identify and register bidders to participate in the
17    procurement event.
18        (2) Standard contract forms and credit terms and
19    instruments. The procurement administrator, in
20    consultation with the utilities, the Commission, and other
21    interested parties and subject to Commission oversight,
22    shall develop and provide standard contract forms for the
23    supplier contracts that meet generally accepted industry
24    practices. Standard credit terms and instruments that meet
25    generally accepted industry practices shall be similarly
26    developed. The procurement administrator shall make

 

 

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1    available to the Commission all written comments it
2    receives on the contract forms, credit terms, or
3    instruments. If the procurement administrator cannot reach
4    agreement with the applicable electric utility as to the
5    contract terms and conditions, the procurement
6    administrator must notify the Commission of any disputed
7    terms and the Commission shall resolve the dispute. The
8    terms of the contracts shall not be subject to negotiation
9    by winning bidders, and the bidders must agree to the terms
10    of the contract in advance so that winning bids are
11    selected solely on the basis of price.
12        (3) Establishment of a market-based price benchmark.
13    As part of the development of the procurement process, the
14    procurement administrator, in consultation with the
15    Commission staff, Agency staff, and the procurement
16    monitor, shall establish benchmarks for evaluating the
17    final prices in the contracts for each of the products that
18    will be procured through the procurement process. The
19    benchmarks shall be based on price data for similar
20    products for the same delivery period and same delivery
21    hub, or other delivery hubs after adjusting for that
22    difference. The price benchmarks may also be adjusted to
23    take into account differences between the information
24    reflected in the underlying data sources and the specific
25    products and procurement process being used to procure
26    power for the Illinois utilities. The benchmarks shall be

 

 

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1    confidential but shall be provided to, and will be subject
2    to Commission review and approval, prior to a procurement
3    event.
4        (4) Request for proposals competitive procurement
5    process. The procurement administrator shall design and
6    issue a request for proposals to supply electricity in
7    accordance with each utility's procurement plan, as
8    approved by the Commission. The request for proposals shall
9    set forth a procedure for sealed, binding commitment
10    bidding with pay-as-bid settlement, and provision for
11    selection of bids on the basis of price.
12        (5) A plan for implementing contingencies in the event
13    of supplier default or failure of the procurement process
14    to fully meet the expected load requirement due to
15    insufficient supplier participation, Commission rejection
16    of results, or any other cause.
17            (i) Event of supplier default: In the event of
18        supplier default, the utility shall review the
19        contract of the defaulting supplier to determine if the
20        amount of supply is 200 megawatts or greater, and if
21        there are more than 60 days remaining of the contract
22        term. If both of these conditions are met, and the
23        default results in termination of the contract, the
24        utility shall immediately notify the Illinois Power
25        Agency that a request for proposals must be issued to
26        procure replacement power, and the procurement

 

 

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1        administrator shall run an additional procurement
2        event. If the contracted supply of the defaulting
3        supplier is less than 200 megawatts or there are less
4        than 60 days remaining of the contract term, the
5        utility shall procure power and energy from the
6        applicable regional transmission organization market,
7        including ancillary services, capacity, and day-ahead
8        or real time energy, or both, for the duration of the
9        contract term to replace the contracted supply;
10        provided, however, that if a needed product is not
11        available through the regional transmission
12        organization market it shall be purchased from the
13        wholesale market.
14            (ii) Failure of the procurement process to fully
15        meet the expected load requirement: If the procurement
16        process fails to fully meet the expected load
17        requirement due to insufficient supplier participation
18        or due to a Commission rejection of the procurement
19        results, the procurement administrator, the
20        procurement monitor, and the Commission staff shall
21        meet within 10 days to analyze potential causes of low
22        supplier interest or causes for the Commission
23        decision. If changes are identified that would likely
24        result in increased supplier participation, or that
25        would address concerns causing the Commission to
26        reject the results of the prior procurement event, the

 

 

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1        procurement administrator may implement those changes
2        and rerun the request for proposals process according
3        to a schedule determined by those parties and
4        consistent with Section 1-75 of the Illinois Power
5        Agency Act and this subsection. In any event, a new
6        request for proposals process shall be implemented by
7        the procurement administrator within 90 days after the
8        determination that the procurement process has failed
9        to fully meet the expected load requirement.
10            (iii) In all cases where there is insufficient
11        supply provided under contracts awarded through the
12        procurement process to fully meet the electric
13        utility's load requirement, the utility shall meet the
14        load requirement by procuring power and energy from the
15        applicable regional transmission organization market,
16        including ancillary services, capacity, and day-ahead
17        or real time energy, or both; provided, however, that
18        if a needed product is not available through the
19        regional transmission organization market it shall be
20        purchased from the wholesale market.
21        (6) The procurement process described in this
22    subsection is exempt from the requirements of the Illinois
23    Procurement Code, pursuant to Section 20-10 of that Code.
24    (f) Within 2 business days after opening the sealed bids,
25the procurement administrator shall submit a confidential
26report to the Commission. The report shall contain the results

 

 

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1of the bidding for each of the products along with the
2procurement administrator's recommendation for the acceptance
3and rejection of bids based on the price benchmark criteria and
4other factors observed in the process. The procurement monitor
5also shall submit a confidential report to the Commission
6within 2 business days after opening the sealed bids. The
7report shall contain the procurement monitor's assessment of
8bidder behavior in the process as well as an assessment of the
9procurement administrator's compliance with the procurement
10process and rules. The Commission shall review the confidential
11reports submitted by the procurement administrator and
12procurement monitor, and shall accept or reject the
13recommendations of the procurement administrator within 2
14business days after receipt of the reports.
15    (g) Within 3 business days after the Commission decision
16approving the results of a procurement event, the utility, and
17in the case of a capacity procurement event under subsection
18(b-5) of this Section, all Load-Serving Entities in the
19Applicable Local Resource Zone, shall enter into binding
20contractual arrangements with the winning suppliers using the
21standard form contracts; except that the utility shall not be
22required either directly or indirectly to execute the contracts
23if a tariff that is consistent with subsection (l) of this
24Section has not been approved and placed into effect for that
25utility.
26    (h) The names of the successful bidders and the load

 

 

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1weighted average of the winning bid prices for each contract
2type and for each contract term shall be made available to the
3public at the time of Commission approval of a procurement
4event. The Commission, the procurement monitor, the
5procurement administrator, the Illinois Power Agency, and all
6participants in the procurement process shall maintain the
7confidentiality of all other supplier and bidding information
8in a manner consistent with all applicable laws, rules,
9regulations, and tariffs. Confidential information, including
10the confidential reports submitted by the procurement
11administrator and procurement monitor pursuant to subsection
12(f) of this Section, shall not be made publicly available and
13shall not be discoverable by any party in any proceeding,
14absent a compelling demonstration of need, nor shall those
15reports be admissible in any proceeding other than one for law
16enforcement purposes.
17    (i) Within 2 business days after a Commission decision
18approving the results of a procurement event or such other date
19as may be required by the Commission from time to time, the
20utility shall file for informational purposes with the
21Commission its actual or estimated retail supply charges, as
22applicable, by customer supply group reflecting the costs
23associated with the procurement and computed in accordance with
24the tariffs filed pursuant to subsection (l) of this Section
25and approved by the Commission.
26    (j) Within 60 days following August 28, 2007 (the effective

 

 

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1date of Public Act 95-481), each electric utility that on
2December 31, 2005 provided electric service to at least 100,000
3customers in Illinois shall prepare and file with the
4Commission an initial procurement plan, which shall conform in
5all material respects to the requirements of the procurement
6plan set forth in subsection (b); provided, however, that the
7Illinois Power Agency Act shall not apply to the initial
8procurement plan prepared pursuant to this subsection. The
9initial procurement plan shall identify the portfolio of power
10and energy products to be procured and delivered for the period
11June 2008 through May 2009, and shall identify the proposed
12procurement administrator, who shall have the same experience
13and expertise as is required of a procurement administrator
14hired pursuant to Section 1-75 of the Illinois Power Agency
15Act. Copies of the procurement plan shall be posted and made
16publicly available on the Commission's website. The initial
17procurement plan may include contracts for renewable resources
18that extend beyond May 2009.
19        (i) Within 14 days following filing of the initial
20    procurement plan, any person may file a detailed objection
21    with the Commission contesting the procurement plan
22    submitted by the electric utility. All objections to the
23    electric utility's plan shall be specific, supported by
24    data or other detailed analyses. The electric utility may
25    file a response to any objections to its procurement plan
26    within 7 days after the date objections are due to be

 

 

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1    filed. Within 7 days after the date the utility's response
2    is due, the Commission shall determine whether a hearing is
3    necessary. If it determines that a hearing is necessary, it
4    shall require the hearing to be completed and issue an
5    order on the procurement plan within 60 days after the
6    filing of the procurement plan by the electric utility.
7        (ii) The order shall approve or modify the procurement
8    plan, approve an independent procurement administrator,
9    and approve or modify the electric utility's tariffs that
10    are proposed with the initial procurement plan. The
11    Commission shall approve the procurement plan if the
12    Commission determines that it will ensure adequate,
13    reliable, affordable, efficient, and environmentally
14    sustainable electric service at the lowest total cost over
15    time, taking into account any benefits of price stability.
16    (k) (Blank).
17    (k-5) (Blank).
18    (l) An electric utility shall recover its costs incurred
19under this Section, including, but not limited to, its costs
20for capacity procured under subsection (b-5) of this Section,
21and the costs of procuring power and energy demand-response
22resources under this Section. The utility shall file with the
23initial procurement plan its proposed tariffs through which its
24costs of procuring power that are incurred pursuant to a
25Commission-approved procurement plan and those other costs
26identified in this subsection (l), will be recovered. The

 

 

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1tariffs shall include a formula rate or charge designed to pass
2through both the costs incurred by the utility in procuring a
3supply of electric power and energy for the applicable customer
4classes with no mark-up or return on the price paid by the
5utility for that supply, plus any just and reasonable costs
6that the utility incurs in arranging and providing for the
7supply of electric power and energy. The formula rate or charge
8shall also contain provisions that ensure that its application
9does not result in over or under recovery due to changes in
10customer usage and demand patterns, and that provide for the
11correction, on at least an annual basis, of any accounting
12errors that may occur. A utility shall recover through the
13tariff all reasonable costs incurred to implement or comply
14with any procurement plan that is developed and put into effect
15pursuant to Section 1-75 of the Illinois Power Agency Act and
16this Section, including any fees assessed by the Illinois Power
17Agency, costs associated with load balancing, and contingency
18plan costs. The electric utility shall also recover its full
19costs of procuring electric supply for which it contracted
20before the effective date of this Section in conjunction with
21the provision of full requirements service under fixed-price
22bundled service tariffs subsequent to December 31, 2006. All
23such costs shall be deemed to have been prudently incurred. The
24pass-through tariffs that are filed and approved pursuant to
25this Section shall not be subject to review under, or in any
26way limited by, Section 16-111(i) of this Act. All of the costs

 

 

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1incurred by the electric utility associated with the purchase
2of zero emission credits in accordance with subsection (d-5) of
3Section 1-75 of the Illinois Power Agency Act and, beginning
4June 1, 2017, all of the costs incurred by the electric utility
5associated with the purchase of renewable energy resources in
6accordance with Sections 1-56 and 1-75 of the Illinois Power
7Agency Act, shall be recovered through the electric utility's
8tariffed charges applicable to all of its retail customers, as
9specified in subsection (k) of Section 16-108 of this Act, and
10shall not be recovered through the electric utility's tariffed
11charges for electric power and energy supply to its eligible
12retail customers.
13    (m) The Commission has the authority to adopt rules to
14carry out the provisions of this Section. For the public
15interest, safety, and welfare, the Commission also has
16authority to adopt rules to carry out the provisions of this
17Section on an emergency basis immediately following August 28,
182007 (the effective date of Public Act 95-481).
19    (n) Notwithstanding any other provision of this Act, any
20affiliated electric utilities that submit a single procurement
21plan covering their combined needs may procure for those
22combined needs in conjunction with that plan, and may enter
23jointly into power supply contracts, purchases, and other
24procurement arrangements, and allocate capacity and energy and
25cost responsibility therefor among themselves in proportion to
26their requirements.

 

 

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1    (o) On or before June 1 of each year, the Commission shall
2hold an informal hearing for the purpose of receiving comments
3on the prior year's procurement process and any recommendations
4for change.
5    (p) An electric utility subject to this Section may propose
6to invest, lease, own, or operate an electric generation
7facility as part of its procurement plan, provided the utility
8demonstrates that such facility is the least-cost option to
9provide electric service to those retail customers included in
10the plan's electric supply service requirements. If the
11facility is shown to be the least-cost option and is included
12in a procurement plan prepared in accordance with Section 1-75
13of the Illinois Power Agency Act and this Section, then the
14electric utility shall make a filing pursuant to Section 8-406
15of this Act, and may request of the Commission any statutory
16relief required thereunder. If the Commission grants all of the
17necessary approvals for the proposed facility, such supply
18shall thereafter be considered as a pre-existing contract under
19subsection (b) of this Section. The Commission shall in any
20order approving a proposal under this subsection specify how
21the utility will recover the prudently incurred costs of
22investing in, leasing, owning, or operating such generation
23facility through just and reasonable rates charged to those
24retail customers included in the plan's electric supply service
25requirements. Cost recovery for facilities included in the
26utility's procurement plan pursuant to this subsection shall

 

 

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1not be subject to review under or in any way limited by the
2provisions of Section 16-111(i) of this Act. Nothing in this
3Section is intended to prohibit a utility from filing for a
4fuel adjustment clause as is otherwise permitted under Section
59-220 of this Act.
6    (q) If the Illinois Power Agency filed with the Commission,
7under Section 16-111.5 of this Act, its proposed procurement
8plan for the period commencing June 1, 2017, and the Commission
9has not yet entered its final order approving the plan on or
10before the effective date of this amendatory Act of the 99th
11General Assembly, then the Illinois Power Agency shall file a
12notice of withdrawal with the Commission, after the effective
13date of this amendatory Act of the 99th General Assembly, to
14withdraw the proposed procurement of renewable energy
15resources to be approved under the plan, other than the
16procurement of renewable energy credits from distributed
17renewable energy generation devices using funds previously
18collected from electric utilities' retail customers that take
19service pursuant to electric utilities' hourly pricing tariff
20or tariffs and, for an electric utility that serves less than
21100,000 retail customers in the State, other than the
22procurement of renewable energy credits from distributed
23renewable energy generation devices. Upon receipt of the
24notice, the Commission shall enter an order that approves the
25withdrawal of the proposed procurement of renewable energy
26resources from the plan. The initially proposed procurement of

 

 

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1renewable energy resources shall not be approved or be the
2subject of any further hearing, investigation, proceeding, or
3order of any kind.
4    This amendatory Act of the 99th General Assembly preempts
5and supersedes any order entered by the Commission that
6approved the Illinois Power Agency's procurement plan for the
7period commencing June 1, 2017, to the extent it is
8inconsistent with the provisions of this amendatory Act of the
999th General Assembly. To the extent any previously entered
10order approved the procurement of renewable energy resources,
11the portion of that order approving the procurement shall be
12void, other than the procurement of renewable energy credits
13from distributed renewable energy generation devices using
14funds previously collected from electric utilities' retail
15customers that take service under electric utilities' hourly
16pricing tariff or tariffs and, for an electric utility that
17serves less than 100,000 retail customers in the State, other
18than the procurement of renewable energy credits for
19distributed renewable energy generation devices.
20(Source: P.A. 99-906, eff. 6-1-17.)
 
21    (220 ILCS 5/16-115A)
22    Sec. 16-115A. Obligations of alternative retail electric
23suppliers.
24    (a) An alternative retail electric supplier shall:
25        (i) comply with the requirements imposed on public

 

 

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1    utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
2    8-507 of this Act, to the extent that these Sections have
3    application to the services being offered by the
4    alternative retail electric supplier; and
5        (ii) continue to comply with the requirements for
6    certification stated in subsection (d) of Section 16-115;
7    and .
8        (iii) for delivery years commencing on and after June
9    1, 2019, comply with the requirements of subsection (h) of
10    this Section and of subsection (b-5) of Section 16-111.5 of
11    this Act.
12    (b) An alternative retail electric supplier shall obtain
13verifiable authorization from a customer, in a form or manner
14approved by the Commission consistent with Section 2EE of the
15Consumer Fraud and Deceptive Business Practices Act, before the
16customer is switched from another supplier.
17    (c) No alternative retail electric supplier, or electric
18utility other than the electric utility in whose service area a
19customer is located, shall (i) enter into or employ any
20arrangements which have the effect of preventing a retail
21customer with a maximum electrical demand of less than one
22megawatt from having access to the services of the electric
23utility in whose service area the customer is located or (ii)
24charge retail customers for such access. This subsection shall
25not be construed to prevent an arms-length agreement between a
26supplier and a retail customer that sets a term of service,

 

 

HB4285- 150 -LRB100 16252 RJF 31375 b

1notice period for terminating service and provisions governing
2early termination through a tariff or contract as allowed by
3Section 16-119.
4    (d) An alternative retail electric supplier that is
5certified to serve residential or small commercial retail
6customers shall not:
7        (1) deny service to a customer or group of customers
8    nor establish any differences as to prices, terms,
9    conditions, services, products, facilities, or in any
10    other respect, whereby such denial or differences are based
11    upon race, gender or income.
12        (2) deny service to a customer or group of customers
13    based on locality nor establish any unreasonable
14    difference as to prices, terms, conditions, services,
15    products, or facilities as between localities.
16    (e) An alternative retail electric supplier shall comply
17with the following requirements with respect to the marketing,
18offering and provision of products or services to residential
19and small commercial retail customers:
20        (i) Any marketing materials which make statements
21    concerning prices, terms and conditions of service shall
22    contain information that adequately discloses the prices,
23    terms and conditions of the products or services that the
24    alternative retail electric supplier is offering or
25    selling to the customer.
26        (ii) Before any customer is switched from another

 

 

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1    supplier, the alternative retail electric supplier shall
2    give the customer written information that adequately
3    discloses, in plain language, the prices, terms and
4    conditions of the products and services being offered and
5    sold to the customer.
6        (iii) An alternative retail electric supplier shall
7    provide documentation to the Commission and to customers
8    that substantiates any claims made by the alternative
9    retail electric supplier regarding the technologies and
10    fuel types used to generate the electricity offered or sold
11    to customers.
12        (iv) The alternative retail electric supplier shall
13    provide to the customer (1) itemized billing statements
14    that describe the products and services provided to the
15    customer and their prices, and (2) an additional statement,
16    at least annually, that adequately discloses the average
17    monthly prices, and the terms and conditions, of the
18    products and services sold to the customer.
19    (f) An alternative retail electric supplier may limit the
20overall size or availability of a service offering by
21specifying one or more of the following: a maximum number of
22customers, maximum amount of electric load to be served, time
23period during which the offering will be available, or other
24comparable limitation, but not including the geographic
25locations of customers within the area which the alternative
26retail electric supplier is certificated to serve. The

 

 

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1alternative retail electric supplier shall file the terms and
2conditions of such service offering including the applicable
3limitations with the Commission prior to making the service
4offering available to customers.
5    (g) Nothing in this Section shall be construed as
6preventing an alternative retail electric supplier, which is an
7affiliate of, or which contracts with, (i) an industry or trade
8organization or association, (ii) a membership organization or
9association that exists for a purpose other than the purchase
10of electricity, or (iii) another organization that meets
11criteria established in a rule adopted by the Commission, from
12offering through the organization or association services at
13prices, terms and conditions that are available solely to the
14members of the organization or association.
15    (h) Notwithstanding any provision to the contrary in this
16Act or the Illinois Power Agency Act, beginning with the
17delivery year commencing June 1, 2019, an alternative retail
18electric supplier shall use only capacity procured and
19allocated to the alternative retail electric supplier through
20the processes specified in subsection (b-5) of Section 16-111.5
21of this Act to serve retail customers of an Applicable Electric
22Utility in an Applicable Local Resource Zone in this State;
23provided, that an alternative electric retail supplier may
24procure through other means any capacity needed to serve the
25load requirements of retail customers of an Applicable Electric
26Utility in an Applicable Local Resource Zone in excess of the

 

 

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1capacity procured and allocated to the alternative retail
2electric supplier under subsection (b-5) of Section 16-111.5.
3An alternative retail electric supplier shall enter into
4contracts for capacity, in the form adopted by the procurement
5administrator and conforming to the requirements of subsection
6(b-5) of Section 16-111.5 of this Act, with capacity suppliers
7selected in capacity procurement events conducted under
8subsection (b-5) of Section 16-111.5. An alternative retail
9electric supplier shall take those actions that are necessary
10(i) to participate in capacity procurement events conducted
11under subsection (b-5) of Section 16-111.5 of this Act; and
12(ii) to participate in the Fixed Resource Adequacy Plan
13capacity procurement option, or a successor capacity
14procurement mechanism, under the MISO Tariff using the capacity
15procured in capacity procurement events conducted, and
16allocated to the alternative retail electric supplier, under
17subsection (b-5) of Section 16-111.5 of this Act.
18    As a condition of the continued effectiveness of the
19certificate of service authority of an alternative retail
20electric supplier that serves retail customers of an Applicable
21Electric Utility in an Applicable Local Resource Zone, the
22alternative retail electric supplier shall certify its
23compliance with the requirements of this subsection (h) in its
24annual reports to the Commission. The Commission shall initiate
25a proceeding to revoke the certificate of service authority of
26any alternative retail electric supplier that is required by

 

 

HB4285- 154 -LRB100 16252 RJF 31375 b

1this subsection (h) to, but does not, certify its compliance
2with the requirements of this subsection (h) in an annual
3report to the Commission or that the Commission has reason to
4believe has failed or is failing to comply with the
5requirements of this subsection (h). No certificate of service
6authority shall be revoked under this subsection (h) unless and
7until the alternative retail electric supplier has received
8notice of the proceeding and the grounds on which the
9Commission proposes to revoke the certificate of service
10authority, and has been provided opportunity for a hearing.
11    For purposes of this subsection (h), the terms "Applicable
12Electric Utility", "Fixed Resource Adequacy Plan", "Contracted
13LSE Capacity", and "MISO Tariff" shall have the meanings set
14forth in subsection (b-5) of Section 16-111.5 of this Act, and
15the term "Applicable Local Resource Zone" shall have the
16meaning set forth in Section 1-75 of the Illinois Power Agency
17Act.
18(Source: P.A. 90-561, eff. 12-16-97.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.