Rep. Lawrence Walsh, Jr.

Filed: 3/14/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2861

2    AMENDMENT NO. ______. Amend House Bill 2861 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-10, 1-20, and 1-75 as follows:
 
6    (20 ILCS 3855/1-10)
7    Sec. 1-10. Definitions.
8    "Agency" means the Illinois Power Agency.
9    "Agency loan agreement" means any agreement pursuant to
10which the Illinois Finance Authority agrees to loan the
11proceeds of revenue bonds issued with respect to a project to
12the Agency upon terms providing for loan repayment installments
13at least sufficient to pay when due all principal of, interest
14and premium, if any, on those revenue bonds, and providing for
15maintenance, insurance, and other matters in respect of the
16project.

 

 

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1    "Authority" means the Illinois Finance Authority.
2    "Brownfield site photovoltaic project" means photovoltaics
3that are:
4        (1) interconnected to an electric utility as defined in
5    this Section, a municipal utility as defined in this
6    Section, a public utility as defined in Section 3-105 of
7    the Public Utilities Act, or an electric cooperative, as
8    defined in Section 3-119 of the Public Utilities Act; and
9        (2) located at a site that is regulated by any of the
10    following entities under the following programs:
11            (A) the United States Environmental Protection
12        Agency under the federal Comprehensive Environmental
13        Response, Compensation, and Liability Act of 1980, as
14        amended;
15            (B) the United States Environmental Protection
16        Agency under the Corrective Action Program of the
17        federal Resource Conservation and Recovery Act, as
18        amended;
19            (C) the Illinois Environmental Protection Agency
20        under the Illinois Site Remediation Program; or
21            (D) the Illinois Environmental Protection Agency
22        under the Illinois Solid Waste Program.
23    "Bundled clean capacity" means the combination of capacity
24and zero emission attributes from clean energy resources.
25    "Clean coal facility" means an electric generating
26facility that uses primarily coal as a feedstock and that

 

 

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1captures and sequesters carbon dioxide emissions at the
2following levels: at least 50% of the total carbon dioxide
3emissions that the facility would otherwise emit if, at the
4time construction commences, the facility is scheduled to
5commence operation before 2016, at least 70% of the total
6carbon dioxide emissions that the facility would otherwise emit
7if, at the time construction commences, the facility is
8scheduled to commence operation during 2016 or 2017, and at
9least 90% of the total carbon dioxide emissions that the
10facility would otherwise emit if, at the time construction
11commences, the facility is scheduled to commence operation
12after 2017. The power block of the clean coal facility shall
13not exceed allowable emission rates for sulfur dioxide,
14nitrogen oxides, carbon monoxide, particulates and mercury for
15a natural gas-fired combined-cycle facility the same size as
16and in the same location as the clean coal facility at the time
17the clean coal facility obtains an approved air permit. All
18coal used by a clean coal facility shall have high volatile
19bituminous rank and greater than 1.7 pounds of sulfur per
20million btu content, unless the clean coal facility does not
21use gasification technology and was operating as a conventional
22coal-fired electric generating facility on June 1, 2009 (the
23effective date of Public Act 95-1027).
24    "Clean coal SNG brownfield facility" means a facility that
25(1) has commenced construction by July 1, 2015 on an urban
26brownfield site in a municipality with at least 1,000,000

 

 

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1residents; (2) uses a gasification process to produce
2substitute natural gas; (3) uses coal as at least 50% of the
3total feedstock over the term of any sourcing agreement with a
4utility and the remainder of the feedstock may be either
5petroleum coke or coal, with all such coal having a high
6bituminous rank and greater than 1.7 pounds of sulfur per
7million Btu content unless the facility reasonably determines
8that it is necessary to use additional petroleum coke to
9deliver additional consumer savings, in which case the facility
10shall use coal for at least 35% of the total feedstock over the
11term of any sourcing agreement; and (4) captures and sequesters
12at least 85% of the total carbon dioxide emissions that the
13facility would otherwise emit.
14    "Clean coal SNG facility" means a facility that uses a
15gasification process to produce substitute natural gas, that
16sequesters at least 90% of the total carbon dioxide emissions
17that the facility would otherwise emit, that uses at least 90%
18coal as a feedstock, with all such coal having a high
19bituminous rank and greater than 1.7 pounds of sulfur per
20million btu content, and that has a valid and effective permit
21to construct emission sources and air pollution control
22equipment and approval with respect to the federal regulations
23for Prevention of Significant Deterioration of Air Quality
24(PSD) for the plant pursuant to the federal Clean Air Act;
25provided, however, a clean coal SNG brownfield facility shall
26not be a clean coal SNG facility.

 

 

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1    "Clean energy resources" means: (1) energy efficiency
2measures that are implemented pursuant to plans approved by the
3Commission under Sections 8-103, 8-103B, and 8-104 of the
4Public Utilities Act; (2) renewable energy resources; and (3)
5resources from zero emission facilities.
6    "Commission" means the Illinois Commerce Commission.
7    "Community renewable generation project" means an electric
8generating facility that:
9        (1) is powered by wind, solar thermal energy,
10    photovoltaic cells or panels, biodiesel, crops and
11    untreated and unadulterated organic waste biomass, tree
12    waste, and hydropower that does not involve new
13    construction or significant expansion of hydropower dams;
14        (2) is interconnected at the distribution system level
15    of an electric utility as defined in this Section, a
16    municipal utility as defined in this Section that owns or
17    operates electric distribution facilities, a public
18    utility as defined in Section 3-105 of the Public Utilities
19    Act, or an electric cooperative, as defined in Section
20    3-119 of the Public Utilities Act;
21        (3) credits the value of electricity generated by the
22    facility to the subscribers of the facility; and
23        (4) is limited in nameplate capacity to less than or
24    equal to 2,000 kilowatts.
25    "Costs incurred in connection with the development and
26construction of a facility" means:

 

 

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1        (1) the cost of acquisition of all real property,
2    fixtures, and improvements in connection therewith and
3    equipment, personal property, and other property, rights,
4    and easements acquired that are deemed necessary for the
5    operation and maintenance of the facility;
6        (2) financing costs with respect to bonds, notes, and
7    other evidences of indebtedness of the Agency;
8        (3) all origination, commitment, utilization,
9    facility, placement, underwriting, syndication, credit
10    enhancement, and rating agency fees;
11        (4) engineering, design, procurement, consulting,
12    legal, accounting, title insurance, survey, appraisal,
13    escrow, trustee, collateral agency, interest rate hedging,
14    interest rate swap, capitalized interest, contingency, as
15    required by lenders, and other financing costs, and other
16    expenses for professional services; and
17        (5) the costs of plans, specifications, site study and
18    investigation, installation, surveys, other Agency costs
19    and estimates of costs, and other expenses necessary or
20    incidental to determining the feasibility of any project,
21    together with such other expenses as may be necessary or
22    incidental to the financing, insuring, acquisition, and
23    construction of a specific project and starting up,
24    commissioning, and placing that project in operation.
25    "Delivery services" has the same definition as found in
26Section 16-102 of the Public Utilities Act.

 

 

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1    "Delivery year" means the consecutive 12-month period
2beginning June 1 of a given year and ending May 31 of the
3following year.
4    "Department" means the Department of Commerce and Economic
5Opportunity.
6    "Director" means the Director of the Illinois Power Agency.
7    "Demand-response" means measures that decrease peak
8electricity demand or shift demand from peak to off-peak
9periods.
10    "Distributed renewable energy generation device" means a
11device that is:
12        (1) powered by wind, solar thermal energy,
13    photovoltaic cells or panels, biodiesel, crops and
14    untreated and unadulterated organic waste biomass, tree
15    waste, and hydropower that does not involve new
16    construction or significant expansion of hydropower dams;
17        (2) interconnected at the distribution system level of
18    either an electric utility as defined in this Section, a
19    municipal utility as defined in this Section that owns or
20    operates electric distribution facilities, or a rural
21    electric cooperative as defined in Section 3-119 of the
22    Public Utilities Act;
23        (3) located on the customer side of the customer's
24    electric meter and is primarily used to offset that
25    customer's electricity load; and
26        (4) limited in nameplate capacity to less than or equal

 

 

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1    to 2,000 kilowatts.
2    "Energy efficiency" means measures that reduce the amount
3of electricity or natural gas consumed in order to achieve a
4given end use. "Energy efficiency" includes voltage
5optimization measures that optimize the voltage at points on
6the electric distribution voltage system and thereby reduce
7electricity consumption by electric customers' end use
8devices. "Energy efficiency" also includes measures that
9reduce the total Btus of electricity, natural gas, and other
10fuels needed to meet the end use or uses.
11    "Electric utility" has the same definition as found in
12Section 16-102 of the Public Utilities Act.
13    "Facility" means an electric generating unit or a
14co-generating unit that produces electricity along with
15related equipment necessary to connect the facility to an
16electric transmission or distribution system.
17    "Governmental aggregator" means one or more units of local
18government that individually or collectively procure
19electricity to serve residential retail electrical loads
20located within its or their jurisdiction.
21    "Local government" means a unit of local government as
22defined in Section 1 of Article VII of the Illinois
23Constitution.
24    "Municipality" means a city, village, or incorporated
25town.
26    "Municipal utility" means a public utility owned and

 

 

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1operated by any subdivision or municipal corporation of this
2State.
3    "Nameplate capacity" means the aggregate inverter
4nameplate capacity in kilowatts AC.
5    "Person" means any natural person, firm, partnership,
6corporation, either domestic or foreign, company, association,
7limited liability company, joint stock company, or association
8and includes any trustee, receiver, assignee, or personal
9representative thereof.
10    "Project" means the planning, bidding, and construction of
11a facility.
12    "Public utility" has the same definition as found in
13Section 3-105 of the Public Utilities Act.
14    "Real property" means any interest in land together with
15all structures, fixtures, and improvements thereon, including
16lands under water and riparian rights, any easements,
17covenants, licenses, leases, rights-of-way, uses, and other
18interests, together with any liens, judgments, mortgages, or
19other claims or security interests related to real property.
20    "Renewable energy credit" means a tradable credit that
21represents the environmental attributes of one megawatt hour of
22energy produced from a renewable energy resource.
23    "Renewable energy resources" includes energy and its
24associated renewable energy credit or renewable energy credits
25from wind, solar thermal energy, photovoltaic cells and panels,
26biodiesel, anaerobic digestion, crops and untreated and

 

 

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1unadulterated organic waste biomass, tree waste, and
2hydropower that does not involve new construction or
3significant expansion of hydropower dams. For purposes of this
4Act, landfill gas produced in the State is considered a
5renewable energy resource. "Renewable energy resources" does
6not include the incineration or burning of tires, garbage,
7general household, institutional, and commercial waste,
8industrial lunchroom or office waste, landscape waste other
9than tree waste, railroad crossties, utility poles, or
10construction or demolition debris, other than untreated and
11unadulterated waste wood.
12    "Retail customer" has the same definition as found in
13Section 16-102 of the Public Utilities Act.
14    "Revenue bond" means any bond, note, or other evidence of
15indebtedness issued by the Authority, the principal and
16interest of which is payable solely from revenues or income
17derived from any project or activity of the Agency.
18    "Sequester" means permanent storage of carbon dioxide by
19injecting it into a saline aquifer, a depleted gas reservoir,
20or an oil reservoir, directly or through an enhanced oil
21recovery process that may involve intermediate storage,
22regardless of whether these activities are conducted by a clean
23coal facility, a clean coal SNG facility, a clean coal SNG
24brownfield facility, or a party with which a clean coal
25facility, clean coal SNG facility, or clean coal SNG brownfield
26facility has contracted for such purposes.

 

 

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1    "Service area" has the same definition as found in Section
216-102 of the Public Utilities Act.
3    "Sourcing agreement" means (i) in the case of an electric
4utility, an agreement between the owner of a clean coal
5facility and such electric utility, which agreement shall have
6terms and conditions meeting the requirements of paragraph (3)
7of subsection (d) of Section 1-75, (ii) in the case of an
8alternative retail electric supplier, an agreement between the
9owner of a clean coal facility and such alternative retail
10electric supplier, which agreement shall have terms and
11conditions meeting the requirements of Section 16-115(d)(5) of
12the Public Utilities Act, and (iii) in case of a gas utility,
13an agreement between the owner of a clean coal SNG brownfield
14facility and the gas utility, which agreement shall have the
15terms and conditions meeting the requirements of subsection
16(h-1) of Section 9-220 of the Public Utilities Act.
17    "Subscriber" means a person who (i) takes delivery service
18from an electric utility, and (ii) has a subscription of no
19less than 200 watts to a community renewable generation project
20that is located in the electric utility's service area. No
21subscriber's subscriptions may total more than 40% of the
22nameplate capacity of an individual community renewable
23generation project. Entities that are affiliated by virtue of a
24common parent shall not represent multiple subscriptions that
25total more than 40% of the nameplate capacity of an individual
26community renewable generation project.

 

 

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1    "Subscription" means an interest in a community renewable
2generation project expressed in kilowatts, which is sized
3primarily to offset part or all of the subscriber's electricity
4usage.
5    "Substitute natural gas" or "SNG" means a gas manufactured
6by gasification of hydrocarbon feedstock, which is
7substantially interchangeable in use and distribution with
8conventional natural gas.
9    "Total resource cost test" or "TRC test" means a standard
10that is met if, for an investment in energy efficiency or
11demand-response measures, the benefit-cost ratio is greater
12than one. The benefit-cost ratio is the ratio of the net
13present value of the total benefits of the program to the net
14present value of the total costs as calculated over the
15lifetime of the measures. A total resource cost test compares
16the sum of avoided electric utility costs, representing the
17benefits that accrue to the system and the participant in the
18delivery of those efficiency measures and including avoided
19costs associated with reduced use of natural gas or other
20fuels, avoided costs associated with reduced water
21consumption, and avoided costs associated with reduced
22operation and maintenance costs, as well as other quantifiable
23societal benefits, to the sum of all incremental costs of
24end-use measures that are implemented due to the program
25(including both utility and participant contributions), plus
26costs to administer, deliver, and evaluate each demand-side

 

 

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1program, to quantify the net savings obtained by substituting
2the demand-side program for supply resources. In calculating
3avoided costs of power and energy that an electric utility
4would otherwise have had to acquire, reasonable estimates shall
5be included of financial costs likely to be imposed by future
6regulations and legislation on emissions of greenhouse gases.
7In discounting future societal costs and benefits for the
8purpose of calculating net present values, a societal discount
9rate based on actual, long-term Treasury bond yields should be
10used. Notwithstanding anything to the contrary, the TRC test
11shall not include or take into account a calculation of market
12price suppression effects or demand reduction induced price
13effects.
14    "Utility-scale solar project" means an electric generating
15facility that:
16        (1) generates electricity using photovoltaic cells;
17    and
18        (2) has a nameplate capacity that is greater than 2,000
19    kilowatts.
20    "Utility-scale wind project" means an electric generating
21facility that:
22        (1) generates electricity using wind; and
23        (2) has a nameplate capacity that is greater than 2,000
24    kilowatts.
25    "Zero emission credit" means a tradable credit that
26represents the environmental attributes of one megawatt hour of

 

 

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1energy produced from a zero emission facility.
2    "Zero emission facility" means a facility that: (1) is
3fueled by nuclear power; and (2) is interconnected with PJM
4Interconnection, LLC or the Midcontinent Independent System
5Operator, Inc., or their successors.
6(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
 
7    (20 ILCS 3855/1-20)
8    Sec. 1-20. General powers of the Agency.
9    (a) The Agency is authorized to do each of the following:
10        (1) Develop electricity procurement plans to ensure
11    adequate, reliable, affordable, efficient, and
12    environmentally sustainable electric service at the lowest
13    total cost over time, taking into account any benefits of
14    price stability, for electric utilities that on December
15    31, 2005 provided electric service to at least 100,000
16    customers in Illinois and for small multi-jurisdictional
17    electric utilities that (A) on December 31, 2005 served
18    less than 100,000 customers in Illinois and (B) request a
19    procurement plan for their Illinois jurisdictional load.
20    Except as provided in paragraph (1.5) of this subsection
21    (a), the electricity procurement plans shall be updated on
22    an annual basis and shall include electricity generated
23    from renewable resources sufficient to achieve the
24    standards specified in this Act. Beginning with the
25    delivery year commencing June 1, 2017, develop procurement

 

 

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1    plans to include zero emission credits generated from zero
2    emission facilities sufficient to achieve the standards
3    specified in this Act.
4        (1.5) Develop a long-term renewable resources
5    procurement plan in accordance with subsection (c) of
6    Section 1-75 of this Act for renewable energy credits in
7    amounts sufficient to achieve the standards specified in
8    this Act for delivery years commencing June 1, 2017 and for
9    the programs and renewable energy credits specified in
10    Section 1-56 of this Act. Electricity procurement plans for
11    delivery years commencing after May 31, 2017, shall not
12    include procurement of renewable energy resources.
13        (2) Conduct competitive procurement processes to
14    procure the supply resources identified in the electricity
15    procurement plan, pursuant to Section 16-111.5 of the
16    Public Utilities Act, and, for the delivery year commencing
17    June 1, 2017, conduct procurement processes to procure zero
18    emission credits from zero emission facilities, under
19    subsection (d-5) of Section 1-75 of this Act.
20        (2.5) Beginning with the procurement for the 2017
21    delivery year, conduct competitive procurement processes
22    and implement programs to procure renewable energy credits
23    identified in the long-term renewable resources
24    procurement plan developed and approved under subsection
25    (c) of Section 1-75 of this Act and Section 16-111.5 of the
26    Public Utilities Act.

 

 

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1        (2.10) Beginning immediately after the effective date
2    of this amendatory Act of the 101st General Assembly,
3    develop capacity procurement plans and conduct competitive
4    procurement processes for the procurement of capacity to
5    meet the capacity requirements of all retail customers of
6    electric utilities that serve at least 3,000,000 retail
7    customers in this State, as prescribed by Section 1-75 of
8    this Act and Section 16-111.5 of the Public Utilities Act.
9        (3) Develop electric generation and co-generation
10    facilities that use indigenous coal or renewable
11    resources, or both, financed with bonds issued by the
12    Illinois Finance Authority.
13        (4) Supply electricity from the Agency's facilities at
14    cost to one or more of the following: municipal electric
15    systems, governmental aggregators, or rural electric
16    cooperatives in Illinois.
17    (b) Except as otherwise limited by this Act, the Agency has
18all of the powers necessary or convenient to carry out the
19purposes and provisions of this Act, including without
20limitation, each of the following:
21        (1) To have a corporate seal, and to alter that seal at
22    pleasure, and to use it by causing it or a facsimile to be
23    affixed or impressed or reproduced in any other manner.
24        (2) To use the services of the Illinois Finance
25    Authority necessary to carry out the Agency's purposes.
26        (3) To negotiate and enter into loan agreements and

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1December 31, 2005 provided electric service to at least 100,000
2customers in Illinois. Beginning with the delivery year
3commencing on June 1, 2017, the Planning and Procurement Bureau
4shall develop plans and processes for the procurement of zero
5emission credits from zero emission facilities in accordance
6with the requirements of subsection (d-5) of this Section. The
7Planning and Procurement Bureau shall also develop procurement
8plans and conduct competitive procurement processes in
9accordance with the requirements of Section 16-111.5 of the
10Public Utilities Act for the eligible retail customers of small
11multi-jurisdictional electric utilities that (i) on December
1231, 2005 served less than 100,000 customers in Illinois and
13(ii) request a procurement plan for their Illinois
14jurisdictional load. This Section shall not apply to a small
15multi-jurisdictional utility until such time as a small
16multi-jurisdictional utility requests the Agency to prepare a
17procurement plan for their Illinois jurisdictional load. For
18the purposes of this Section, the term "eligible retail
19customers" has the same definition as found in Section
2016-111.5(a) of the Public Utilities Act.
21    Beginning with the plan or plans to be implemented in the
222017 delivery year, the Agency shall no longer include the
23procurement of renewable energy resources in the annual
24procurement plans required by this subsection (a), except as
25provided in subsection (q) of Section 16-111.5 of the Public
26Utilities Act, and shall instead develop a long-term renewable

 

 

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1resources procurement plan in accordance with subsection (c) of
2this Section and Section 16-111.5 of the Public Utilities Act.
3    It is a goal of the State that, no later than the delivery
4year commencing June 1, 2032, the Agency's procurement plans
5and processes implemented under this Section shall include
6bundled clean capacity in an amount equal to 100% of the
7electric load measured in megawatt-hours for all retail
8customers of electric utilities that serve more than 3,000,000
9customers in this State. The Agency shall, to the extent not
10inconsistent with the provisions of this Act and the Public
11Utilities Act, develop procurement plans and conduct
12competitive procurements consistent with that goal beginning
13with the delivery year commencing June 1, 2023.
14    Beginning immediately after the effective date of this
15amendatory Act of the 101st General Assembly, the Planning and
16Procurement Bureau shall develop plans and processes and
17conduct competitive procurement events to procure capacity for
18all retail customers of electric utilities that serve at least
193,000,000 retail customers in this State in accordance with
20subsection (b-5) of Section 16-111.5 of the Public Utilities
21Act that are located in the Applicable Fixed Resource
22Requirement Service Area of PJM Interconnection, LLC, or its
23successor. For purposes of this Section, "Fixed Resource
24Requirement Service Area" shall have the meaning set forth in
25the Reliability Assurance Agreement of PJM Interconnection,
26LLC, or its successor, as that Agreement may be updated from

 

 

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1time to time. For the purposes of this Section, "Applicable
2Fixed Resource Requirement Service Area" means the Fixed
3Resource Requirement Service Area within PJM Interconnection,
4LLC, or its successor, that incorporates all retail customers
5of electric utilities that serve at least 3,000,000 retail
6customers in the State.
7        (1) The Agency shall each year, beginning in 2008, as
8    needed, issue a request for qualifications for experts or
9    expert consulting firms to develop the procurement plans in
10    accordance with Section 16-111.5 of the Public Utilities
11    Act. In order to qualify an expert or expert consulting
12    firm must have:
13            (A) direct previous experience assembling
14        large-scale power supply plans or portfolios for
15        end-use customers;
16            (B) an advanced degree in economics, mathematics,
17        engineering, risk management, or a related area of
18        study;
19            (C) 10 years of experience in the electricity
20        sector, including managing supply risk;
21            (D) expertise in wholesale electricity market
22        rules, including those established by the Federal
23        Energy Regulatory Commission and regional transmission
24        organizations;
25            (E) expertise in credit protocols and familiarity
26        with contract protocols;

 

 

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

 

 

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1        the affected electric utilities.
2        (3) The Agency shall provide affected utilities and
3    other interested parties with the lists of qualified
4    experts or expert consulting firms identified through the
5    request for qualifications processes that are under
6    consideration to develop the procurement plans and to serve
7    as the procurement administrator. The Agency shall also
8    provide each qualified expert's or expert consulting
9    firm's response to the request for qualifications. All
10    information provided under this subparagraph shall also be
11    provided to the Commission. The Agency may provide by rule
12    for fees associated with supplying the information to
13    utilities and other interested parties. These parties
14    shall, within 5 business days, notify the Agency in writing
15    if they object to any experts or expert consulting firms on
16    the lists. Objections shall be based on:
17            (A) failure to satisfy qualification criteria;
18            (B) identification of a conflict of interest; or
19            (C) evidence of inappropriate bias for or against
20        potential bidders or the affected utilities.
21        The Agency shall remove experts or expert consulting
22    firms from the lists within 10 days if there is a
23    reasonable basis for an objection and provide the updated
24    lists to the affected utilities and other interested
25    parties. If the Agency fails to remove an expert or expert
26    consulting firm from a list, an objecting party may seek

 

 

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1    review by the Commission within 5 days thereafter by filing
2    a petition, and the Commission shall render a ruling on the
3    petition within 10 days. There is no right of appeal of the
4    Commission's ruling.
5        (4) The Agency shall issue requests for proposals to
6    the qualified experts or expert consulting firms to develop
7    a procurement plan for the affected utilities and to serve
8    as procurement administrator.
9        (5) The Agency shall select an expert or expert
10    consulting firm to develop procurement plans based on the
11    proposals submitted and shall award contracts of up to 5
12    years to those selected.
13        (6) The Agency shall select an expert or expert
14    consulting firm, with approval of the Commission, to serve
15    as procurement administrator based on the proposals
16    submitted. If the Commission rejects, within 5 days, the
17    Agency's selection, the Agency shall submit another
18    recommendation within 3 days based on the proposals
19    submitted. The Agency shall award a 5-year contract to the
20    expert or expert consulting firm so selected with
21    Commission approval.
22    (b) The experts or expert consulting firms retained by the
23Agency shall, as appropriate, prepare procurement plans, and
24conduct a competitive procurement process as prescribed in
25Section 16-111.5 of the Public Utilities Act, to ensure
26adequate, reliable, affordable, efficient, and environmentally

 

 

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1sustainable electric service at the lowest total cost over
2time, taking into account any benefits of price stability, for
3eligible retail customers of electric utilities that on
4December 31, 2005 provided electric service to at least 100,000
5customers in the State of Illinois, and for eligible Illinois
6retail customers of small multi-jurisdictional electric
7utilities that (i) on December 31, 2005 served less than
8100,000 customers in Illinois and (ii) request a procurement
9plan for their Illinois jurisdictional load.
10    (c) Renewable portfolio standard.
11        (1)(A) The Agency shall develop a long-term renewable
12    resources procurement plan that shall include procurement
13    programs and competitive procurement events necessary to
14    meet the goals set forth in this subsection (c). The
15    initial long-term renewable resources procurement plan
16    shall be released for comment no later than 160 days after
17    June 1, 2017 (the effective date of Public Act 99-906). The
18    Agency shall review, and may revise on an expedited basis,
19    the long-term renewable resources procurement plan at
20    least every 2 years, which shall be conducted in
21    conjunction with the procurement plan under Section
22    16-111.5 of the Public Utilities Act to the extent
23    practicable to minimize administrative expense. The
24    long-term renewable resources procurement plans shall be
25    subject to review and approval by the Commission under
26    Section 16-111.5 of the Public Utilities Act.

 

 

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

 

 

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1    procurement plan shall include cost-effective renewable
2    energy resources equal to at least 14.5% of each utility's
3    load for eligible retail customers and 14.5% of the
4    applicable portion of each utility's load for retail
5    customers who are not eligible retail customers, which
6    applicable portion shall equal 75% of the utility's load
7    for retail customers who are not eligible retail customers
8    on February 28, 2017.
9        For the delivery year beginning June 1, 2019, and for
10    each year thereafter, the procurement plans shall include
11    cost-effective renewable energy resources equal to a
12    minimum percentage of each utility's load for all retail
13    customers as follows: 16% by June 1, 2019; increasing by
14    1.5% each year thereafter to 25% by June 1, 2025; and 25%
15    by June 1, 2026 and each year thereafter.
16        For each delivery year, the Agency shall first
17    recognize each utility's obligations for that delivery
18    year under existing contracts. Any renewable energy
19    credits under existing contracts, including renewable
20    energy credits as part of renewable energy resources, shall
21    be used to meet the goals set forth in this subsection (c)
22    for the delivery year.
23        (C) Of the renewable energy credits procured under this
24    subsection (c), at least 75% shall come from wind and
25    photovoltaic projects. The long-term renewable resources
26    procurement plan described in subparagraph (A) of this

 

 

10100HB2861ham001- 31 -LRB101 07685 RJF 57277 a

1    paragraph (1) shall include the procurement of renewable
2    energy credits in amounts equal to at least the following:
3            (i) By the end of the 2020 delivery year:
4                At least 2,000,000 renewable energy credits
5            for each delivery year shall come from new wind
6            projects; and
7                At least 2,000,000 renewable energy credits
8            for each delivery year shall come from new
9            photovoltaic projects; of that amount, to the
10            extent possible, the Agency shall procure: at
11            least 50% from solar photovoltaic projects using
12            the program outlined in subparagraph (K) of this
13            paragraph (1) from distributed renewable energy
14            generation devices or community renewable
15            generation projects; at least 40% from
16            utility-scale solar projects; at least 2% from
17            brownfield site photovoltaic projects that are not
18            community renewable generation projects; and the
19            remainder shall be determined through the
20            long-term planning process described in
21            subparagraph (A) of this paragraph (1).
22            (ii) By the end of the 2025 delivery year:
23                At least 3,000,000 renewable energy credits
24            for each delivery year shall come from new wind
25            projects; and
26                At least 3,000,000 renewable energy credits

 

 

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

 

 

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1            projects; at least 40% from utility-scale solar
2            projects; at least 2% from brownfield site
3            photovoltaic projects that are not community
4            renewable generation projects; and the remainder
5            shall be determined through the long-term planning
6            process described in subparagraph (A) of this
7            paragraph (1).
8            (iv) By the end of the 2032 delivery year,
9        renewable energy credits for each delivery year shall
10        come from new wind projects and from new photovoltaic
11        projects in sufficient quantities to meet the clean
12        capacity requirements for electric utilities that
13        serve more than 3,000,000 customers established under
14        subsection (a).
15            For purposes of this Section:
16                "New wind projects" means wind renewable
17            energy facilities that are energized after June 1,
18            2017 for the delivery year commencing June 1, 2017
19            or within 3 years after the date the Commission
20            approves contracts for subsequent delivery years.
21                "New photovoltaic projects" means photovoltaic
22            renewable energy facilities that are energized
23            after June 1, 2017. Photovoltaic projects
24            developed under Section 1-56 of this Act shall not
25            apply towards the new photovoltaic project
26            requirements in this subparagraph (C).

 

 

10100HB2861ham001- 34 -LRB101 07685 RJF 57277 a

1        (D) Renewable energy credits shall be cost effective.
2    For purposes of this subsection (c), "cost effective" means
3    that the costs of procuring renewable energy resources do
4    not cause the limit stated in subparagraph (E) of this
5    paragraph (1) to be exceeded and, for renewable energy
6    credits procured through a competitive procurement event,
7    do not exceed benchmarks based on market prices for like
8    products in the region. For purposes of this subsection
9    (c), "like products" means contracts for renewable energy
10    credits from the same or substantially similar technology,
11    same or substantially similar vintage (new or existing),
12    the same or substantially similar quantity, and the same or
13    substantially similar contract length and structure.
14    Benchmarks shall be developed by the procurement
15    administrator, in consultation with the Commission staff,
16    Agency staff, and the procurement monitor and shall be
17    subject to Commission review and approval. If price
18    benchmarks for like products in the region are not
19    available, the procurement administrator shall establish
20    price benchmarks based on publicly available data on
21    regional technology costs and expected current and future
22    regional energy prices. The benchmarks in this Section
23    shall not be used to curtail or otherwise reduce
24    contractual obligations entered into by or through the
25    Agency prior to June 1, 2017 (the effective date of Public
26    Act 99-906).

 

 

10100HB2861ham001- 35 -LRB101 07685 RJF 57277 a

1        (E) For purposes of this subsection (c), the required
2    procurement of cost-effective renewable energy resources
3    for a particular year commencing prior to June 1, 2017
4    shall be measured as a percentage of the actual amount of
5    electricity (megawatt-hours) supplied by the electric
6    utility to eligible retail customers in the delivery year
7    ending immediately prior to the procurement, and, for
8    delivery years commencing on and after June 1, 2017, the
9    required procurement of cost-effective renewable energy
10    resources for a particular year shall be measured as a
11    percentage of the actual amount of electricity
12    (megawatt-hours) delivered by the electric utility in the
13    delivery year ending immediately prior to the procurement,
14    to all retail customers in its service territory. For
15    purposes of this subsection (c), the amount paid per
16    kilowatthour means the total amount paid for electric
17    service expressed on a per kilowatthour basis. For purposes
18    of this subsection (c), the total amount paid for electric
19    service includes without limitation amounts paid for
20    supply, transmission, distribution, surcharges, and add-on
21    taxes.
22        Notwithstanding the requirements of this subsection
23    (c), the total of renewable energy resources procured under
24    the procurement plan for any single year shall be subject
25    to the limitations of this subparagraph (E). Such
26    procurement shall be reduced for all retail customers based

 

 

10100HB2861ham001- 36 -LRB101 07685 RJF 57277 a

1    on the amount necessary to limit the annual estimated
2    average net increase due to the costs of these resources
3    included in the amounts paid by eligible retail customers
4    in connection with electric service to no more than the
5    greater of 2.015% of the amount paid per kilowatthour by
6    those customers during the year ending May 31, 2007 or the
7    incremental amount per kilowatthour paid for these
8    resources in 2011. To arrive at a maximum dollar amount of
9    renewable energy resources to be procured for the
10    particular delivery year, the resulting per kilowatthour
11    amount shall be applied to the actual amount of
12    kilowatthours of electricity delivered, or applicable
13    portion of such amount as specified in paragraph (1) of
14    this subsection (c), as applicable, by the electric utility
15    in the delivery year immediately prior to the procurement
16    to all retail customers in its service territory. The
17    calculations required by this subparagraph (E) shall be
18    made only once for each delivery year at the time that the
19    renewable energy resources are procured. Once the
20    determination as to the amount of renewable energy
21    resources to procure is made based on the calculations set
22    forth in this subparagraph (E) and the contracts procuring
23    those amounts are executed, no subsequent rate impact
24    determinations shall be made and no adjustments to those
25    contract amounts shall be allowed. All costs incurred under
26    such contracts shall be fully recoverable by the electric

 

 

10100HB2861ham001- 37 -LRB101 07685 RJF 57277 a

1    utility as provided in this Section.
2        (F) If the limitation on the amount of renewable energy
3    resources procured in subparagraph (E) of this paragraph
4    (1) prevents the Agency from meeting all of the goals in
5    this subsection (c), the Agency's long-term plan shall
6    prioritize compliance with the requirements of this
7    subsection (c) regarding renewable energy credits in the
8    following order:
9            (i) renewable energy credits under existing
10        contractual obligations;
11            (i-5) funding for the Illinois Solar for All
12        Program, as described in subparagraph (O) of this
13        paragraph (1);
14            (ii) renewable energy credits necessary to comply
15        with the new wind and new photovoltaic procurement
16        requirements described in items (i) through (iii) of
17        subparagraph (C) of this paragraph (1); and
18            (iii) renewable energy credits necessary to meet
19        the remaining requirements of this subsection (c).
20        (G) The following provisions shall apply to the
21    Agency's procurement of renewable energy credits under
22    this subsection (c):
23            (i) Notwithstanding whether a long-term renewable
24        resources procurement plan has been approved, the
25        Agency shall conduct an initial forward procurement
26        for renewable energy credits from new utility-scale

 

 

10100HB2861ham001- 38 -LRB101 07685 RJF 57277 a

1        wind projects within 160 days after June 1, 2017 (the
2        effective date of Public Act 99-906). For the purposes
3        of this initial forward procurement, the Agency shall
4        solicit 15-year contracts for delivery of 1,000,000
5        renewable energy credits delivered annually from new
6        utility-scale wind projects to begin delivery on June
7        1, 2019, if available, but not later than June 1, 2021.
8        Payments to suppliers of renewable energy credits
9        shall commence upon delivery. Renewable energy credits
10        procured under this initial procurement shall be
11        included in the Agency's long-term plan and shall apply
12        to all renewable energy goals in this subsection (c).
13            (ii) 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        solar projects and brownfield site photovoltaic
18        projects within one year after June 1, 2017 (the
19        effective date of Public Act 99-906). For the purposes
20        of 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 solar projects and brownfield site
24        photovoltaic projects to begin delivery on June 1,
25        2019, if available, but not later than June 1, 2021.
26        The Agency may structure this initial procurement in

 

 

10100HB2861ham001- 39 -LRB101 07685 RJF 57277 a

1        one or more discrete procurement events. Payments to
2        suppliers of renewable energy credits shall commence
3        upon delivery. Renewable energy credits procured under
4        this initial procurement shall be included in the
5        Agency's long-term plan and shall apply to all
6        renewable energy goals in this subsection (c).
7            (iii) Subsequent forward procurements for
8        utility-scale wind projects shall solicit at least
9        1,000,000 renewable energy credits delivered annually
10        per procurement event and shall be planned, scheduled,
11        and designed such that the cumulative amount of
12        renewable energy credits delivered from all new wind
13        projects in each delivery year shall not exceed the
14        Agency's projection of the cumulative amount of
15        renewable energy credits that will be delivered from
16        all new photovoltaic projects, including utility-scale
17        and distributed photovoltaic devices, in the same
18        delivery year at the time scheduled for wind contract
19        delivery.
20            (iv) If, at any time after the time set for
21        delivery of renewable energy credits pursuant to the
22        initial procurements in items (i) and (ii) of this
23        subparagraph (G), the cumulative amount of renewable
24        energy credits projected to be delivered from all new
25        wind projects in a given delivery year exceeds the
26        cumulative amount of renewable energy credits

 

 

10100HB2861ham001- 40 -LRB101 07685 RJF 57277 a

1        projected to be delivered from all new photovoltaic
2        projects in that delivery year by 200,000 or more
3        renewable energy credits, then the Agency shall within
4        60 days adjust the procurement programs in the
5        long-term renewable resources procurement plan to
6        ensure that the projected cumulative amount of
7        renewable energy credits to be delivered from all new
8        wind projects does not exceed the projected cumulative
9        amount of renewable energy credits to be delivered from
10        all new photovoltaic projects by 200,000 or more
11        renewable energy credits, provided that nothing in
12        this Section shall preclude the projected cumulative
13        amount of renewable energy credits to be delivered from
14        all new photovoltaic projects from exceeding the
15        projected cumulative amount of renewable energy
16        credits to be delivered from all new wind projects in
17        each delivery year and provided further that nothing in
18        this item (iv) shall require the curtailment of an
19        executed contract. The Agency shall update, on a
20        quarterly basis, its projection of the renewable
21        energy credits to be delivered from all projects in
22        each delivery year. Notwithstanding anything to the
23        contrary, the Agency may adjust the timing of
24        procurement events conducted under this subparagraph
25        (G). The long-term renewable resources procurement
26        plan shall set forth the process by which the

 

 

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1        adjustments may be made.
2            (v) All procurements under this subparagraph (G)
3        shall comply with the geographic requirements in
4        subparagraph (I) of this paragraph (1) and shall follow
5        the procurement processes and procedures described in
6        this Section and Section 16-111.5 of the Public
7        Utilities Act to the extent practicable, and these
8        processes and procedures may be expedited to
9        accommodate the schedule established by this
10        subparagraph (G).
11        (H) The procurement of renewable energy resources for a
12    given delivery year shall be reduced as described in this
13    subparagraph (H) if an alternative retail electric
14    supplier meets the requirements described in this
15    subparagraph (H).
16            (i) Within 45 days after June 1, 2017 (the
17        effective date of Public Act 99-906), an alternative
18        retail electric supplier or its successor shall submit
19        an informational filing to the Illinois Commerce
20        Commission certifying that, as of December 31, 2015,
21        the alternative retail electric supplier owned one or
22        more electric generating facilities that generates
23        renewable energy resources as defined in Section 1-10
24        of this Act, provided that such facilities are not
25        powered by wind or photovoltaics, and the facilities
26        generate one renewable energy credit for each

 

 

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1        megawatthour of energy produced from the facility.
2            The informational filing shall identify each
3        facility that was eligible to satisfy the alternative
4        retail electric supplier's obligations under Section
5        16-115D of the Public Utilities Act as described in
6        this item (i).
7            (ii) For a given delivery year, the alternative
8        retail electric supplier may elect to supply its retail
9        customers with renewable energy credits from the
10        facility or facilities described in item (i) of this
11        subparagraph (H) that continue to be owned by the
12        alternative retail electric supplier.
13            (iii) The alternative retail electric supplier
14        shall notify the Agency and the applicable utility, no
15        later than February 28 of the year preceding the
16        applicable delivery year or 15 days after June 1, 2017
17        (the effective date of Public Act 99-906), whichever is
18        later, of its election under item (ii) of this
19        subparagraph (H) to supply renewable energy credits to
20        retail customers of the utility. Such election shall
21        identify the amount of renewable energy credits to be
22        supplied by the alternative retail electric supplier
23        to the utility's retail customers and the source of the
24        renewable energy credits identified in the
25        informational filing as described in item (i) of this
26        subparagraph (H), subject to the following

 

 

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1        limitations:
2                For the delivery year beginning June 1, 2018,
3            the maximum amount of renewable energy credits to
4            be supplied by an alternative retail electric
5            supplier under this subparagraph (H) shall be 68%
6            multiplied by 25% multiplied by 14.5% multiplied
7            by the amount of metered electricity
8            (megawatt-hours) delivered by the alternative
9            retail electric supplier to Illinois retail
10            customers during the delivery year ending May 31,
11            2016.
12                For delivery years beginning June 1, 2019 and
13            each year thereafter, the maximum amount of
14            renewable energy credits to be supplied by an
15            alternative retail electric supplier under this
16            subparagraph (H) shall be 68% multiplied by 50%
17            multiplied by 16% multiplied by the amount of
18            metered electricity (megawatt-hours) delivered by
19            the alternative retail electric supplier to
20            Illinois retail customers during the delivery year
21            ending May 31, 2016, provided that the 16% value
22            shall increase by 1.5% each delivery year
23            thereafter to 25% by the delivery year beginning
24            June 1, 2025, and thereafter the 25% value shall
25            apply to each delivery year.
26            For each delivery year, the total amount of

 

 

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1        renewable energy credits supplied by all alternative
2        retail electric suppliers under this subparagraph (H)
3        shall not exceed 9% of the Illinois target renewable
4        energy credit quantity. The Illinois target renewable
5        energy credit quantity for the delivery year beginning
6        June 1, 2018 is 14.5% multiplied by the total amount of
7        metered electricity (megawatt-hours) delivered in the
8        delivery year immediately preceding that delivery
9        year, provided that the 14.5% shall increase by 1.5%
10        each delivery year thereafter to 25% by the delivery
11        year beginning June 1, 2025, and thereafter the 25%
12        value shall apply to each delivery year.
13            If the requirements set forth in items (i) through
14        (iii) of this subparagraph (H) are met, the charges
15        that would otherwise be applicable to the retail
16        customers of the alternative retail electric supplier
17        under paragraph (6) of this subsection (c) for the
18        applicable delivery year shall be reduced by the ratio
19        of the quantity of renewable energy credits supplied by
20        the alternative retail electric supplier compared to
21        that supplier's target renewable energy credit
22        quantity. The supplier's target renewable energy
23        credit quantity for the delivery year beginning June 1,
24        2018 is 14.5% multiplied by the total amount of metered
25        electricity (megawatt-hours) delivered by the
26        alternative retail supplier in that delivery year,

 

 

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1        provided that the 14.5% shall increase by 1.5% each
2        delivery year thereafter to 25% by the delivery year
3        beginning June 1, 2025, and thereafter the 25% value
4        shall apply to each delivery year.
5            On or before April 1 of each year, the Agency shall
6        annually publish a report on its website that
7        identifies the aggregate amount of renewable energy
8        credits supplied by alternative retail electric
9        suppliers under this subparagraph (H).
10        (I) The Agency shall design its long-term renewable
11    energy procurement plan to maximize the State's interest in
12    the health, safety, and welfare of its residents, including
13    but not limited to minimizing sulfur dioxide, nitrogen
14    oxide, particulate matter and other pollution that
15    adversely affects public health in this State, increasing
16    fuel and resource diversity in this State, enhancing the
17    reliability and resiliency of the electricity distribution
18    system in this State, meeting goals to limit carbon dioxide
19    emissions under federal or State law, and contributing to a
20    cleaner and healthier environment for the citizens of this
21    State. In order to further these legislative purposes,
22    renewable energy credits shall be eligible to be counted
23    toward the renewable energy requirements of this
24    subsection (c) if they are generated from facilities
25    located in this State. The Agency may qualify renewable
26    energy credits from facilities located in states adjacent

 

 

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

 

 

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1    received under the contract. Amounts returned under the
2    requirements of this subparagraph (J) shall be retained by
3    the utility and all of these amounts shall be used for the
4    procurement of additional renewable energy credits from
5    new wind or new photovoltaic resources as defined in this
6    subsection (c). The long-term plan shall provide that these
7    renewable energy credits shall be procured in the next
8    procurement event.
9        Notwithstanding the limitations of this subparagraph
10    (J), renewable energy credits sourced from generating
11    units that are constructed, purchased, owned, or leased by
12    an electric utility as part of an approved project,
13    program, or pilot under Section 1-56 of this Act shall be
14    eligible to be counted toward the renewable energy
15    requirements of this subsection (c), regardless of how the
16    costs of these units are recovered.
17        (K) The long-term renewable resources procurement plan
18    developed by the Agency in accordance with subparagraph (A)
19    of this paragraph (1) shall include an Adjustable Block
20    program for the procurement of renewable energy credits
21    from new photovoltaic projects that are distributed
22    renewable energy generation devices or new photovoltaic
23    community renewable generation projects. The Adjustable
24    Block program shall be designed to provide a transparent
25    schedule of prices and quantities to enable the
26    photovoltaic market to scale up and for renewable energy

 

 

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1    credit prices to adjust at a predictable rate over time.
2    The prices set by the Adjustable Block program can be
3    reflected as a set value or as the product of a formula.
4        The Adjustable Block program shall include for each
5    category of eligible projects: a schedule of standard block
6    purchase prices to be offered; a series of steps, with
7    associated nameplate capacity and purchase prices that
8    adjust from step to step; and automatic opening of the next
9    step as soon as the nameplate capacity and available
10    purchase prices for an open step are fully committed or
11    reserved. Only projects energized on or after June 1, 2017
12    shall be eligible for the Adjustable Block program. For
13    each block group the Agency shall determine the number of
14    blocks, the amount of generation capacity in each block,
15    and the purchase price for each block, provided that the
16    purchase price provided and the total amount of generation
17    in all blocks for all block groups shall be sufficient to
18    meet the goals in this subsection (c). The Agency may
19    periodically review its prior decisions establishing the
20    number of blocks, the amount of generation capacity in each
21    block, and the purchase price for each block, and may
22    propose, on an expedited basis, changes to these previously
23    set values, including but not limited to redistributing
24    these amounts and the available funds as necessary and
25    appropriate, subject to Commission approval as part of the
26    periodic plan revision process described in Section

 

 

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1    16-111.5 of the Public Utilities Act. The Agency may define
2    different block sizes, purchase prices, or other distinct
3    terms and conditions for projects located in different
4    utility service territories if the Agency deems it
5    necessary to meet the goals in this subsection (c).
6        The Adjustable Block program shall include at least the
7    following block groups in at least the following amounts,
8    which may be adjusted upon review by the Agency and
9    approval by the Commission as described in this
10    subparagraph (K):
11            (i) At least 25% from distributed renewable energy
12        generation devices with a nameplate capacity of no more
13        than 10 kilowatts.
14            (ii) At least 25% from distributed renewable
15        energy generation devices with a nameplate capacity of
16        more than 10 kilowatts and no more than 2,000
17        kilowatts. The Agency may create sub-categories within
18        this category to account for the differences between
19        projects for small commercial customers, large
20        commercial customers, and public or non-profit
21        customers.
22            (iii) At least 25% from photovoltaic community
23        renewable generation projects.
24            (iv) The remaining 25% shall be allocated as
25        specified by the Agency in the long-term renewable
26        resources procurement plan.

 

 

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1        The Adjustable Block program shall be designed to
2    ensure that renewable energy credits are procured from
3    photovoltaic distributed renewable energy generation
4    devices and new photovoltaic community renewable energy
5    generation projects in diverse locations and are not
6    concentrated in a few geographic areas.
7        (L) The procurement of photovoltaic renewable energy
8    credits under items (i) through (iv) of subparagraph (K) of
9    this paragraph (1) shall be subject to the following
10    contract and payment terms:
11            (i) The Agency shall procure contracts of at least
12        15 years in length.
13            (ii) For those renewable energy credits that
14        qualify and are procured under item (i) of subparagraph
15        (K) of this paragraph (1), the renewable energy credit
16        purchase price shall be paid in full by the contracting
17        utilities at the time that the facility producing the
18        renewable energy credits is interconnected at the
19        distribution system level of the utility and
20        energized. The electric utility shall receive and
21        retire all renewable energy credits generated by the
22        project for the first 15 years of operation.
23            (iii) For those renewable energy credits that
24        qualify and are procured under item (ii) and (iii) of
25        subparagraph (K) of this paragraph (1) and any
26        additional categories of distributed generation

 

 

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1        included in the long-term renewable resources
2        procurement plan and approved by the Commission, 20
3        percent of the renewable energy credit purchase price
4        shall be paid by the contracting utilities at the time
5        that the facility producing the renewable energy
6        credits is interconnected at the distribution system
7        level of the utility and energized. The remaining
8        portion shall be paid ratably over the subsequent
9        4-year period. The electric utility shall receive and
10        retire all renewable energy credits generated by the
11        project for the first 15 years of operation.
12            (iv) Each contract shall include provisions to
13        ensure the delivery of the renewable energy credits for
14        the full term of the contract.
15            (v) The utility shall be the counterparty to the
16        contracts executed under this subparagraph (L) that
17        are approved by the Commission under the process
18        described in Section 16-111.5 of the Public Utilities
19        Act. No contract shall be executed for an amount that
20        is less than one renewable energy credit per year.
21            (vi) If, at any time, approved applications for the
22        Adjustable Block program exceed funds collected by the
23        electric utility or would cause the Agency to exceed
24        the limitation described in subparagraph (E) of this
25        paragraph (1) on the amount of renewable energy
26        resources that may be procured, then the Agency shall

 

 

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1        consider future uncommitted funds to be reserved for
2        these contracts on a first-come, first-served basis,
3        with the delivery of renewable energy credits required
4        beginning at the time that the reserved funds become
5        available.
6            (vii) Nothing in this Section shall require the
7        utility to advance any payment or pay any amounts that
8        exceed the actual amount of revenues collected by the
9        utility under paragraph (6) of this subsection (c) and
10        subsection (k) of Section 16-108 of the Public
11        Utilities Act, and contracts executed under this
12        Section shall expressly incorporate this limitation.
13        (M) The Agency shall be authorized to retain one or
14    more experts or expert consulting firms to develop,
15    administer, implement, operate, and evaluate the
16    Adjustable Block program described in subparagraph (K) of
17    this paragraph (1), and the Agency shall retain the
18    consultant or consultants in the same manner, to the extent
19    practicable, as the Agency retains others to administer
20    provisions of this Act, including, but not limited to, the
21    procurement administrator. The selection of experts and
22    expert consulting firms and the procurement process
23    described in this subparagraph (M) are exempt from the
24    requirements of Section 20-10 of the Illinois Procurement
25    Code, under Section 20-10 of that Code. The Agency shall
26    strive to minimize administrative expenses in the

 

 

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1    implementation of the Adjustable Block program.
2        The Agency and its consultant or consultants shall
3    monitor block activity, share program activity with
4    stakeholders and conduct regularly scheduled meetings to
5    discuss program activity and market conditions. If
6    necessary, the Agency may make prospective administrative
7    adjustments to the Adjustable Block program design, such as
8    redistributing available funds or making adjustments to
9    purchase prices as necessary to achieve the goals of this
10    subsection (c). Program modifications to any price,
11    capacity block, or other program element that do not
12    deviate from the Commission's approved value by more than
13    25% shall take effect immediately and are not subject to
14    Commission review and approval. Program modifications to
15    any price, capacity block, or other program element that
16    deviate more than 25% from the Commission's approved value
17    must be approved by the Commission as a long-term plan
18    amendment under Section 16-111.5 of the Public Utilities
19    Act. The Agency shall consider stakeholder feedback when
20    making adjustments to the Adjustable Block design and shall
21    notify stakeholders in advance of any planned changes.
22        (N) The long-term renewable resources procurement plan
23    required by this subsection (c) shall include a community
24    renewable generation program. The Agency shall establish
25    the terms, conditions, and program requirements for
26    community renewable generation projects with a goal to

 

 

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1    expand renewable energy generating facility access to a
2    broader group of energy consumers, to ensure robust
3    participation opportunities for residential and small
4    commercial customers and those who cannot install
5    renewable energy on their own properties. Any plan approved
6    by the Commission shall allow subscriptions to community
7    renewable generation projects to be portable and
8    transferable. For purposes of this subparagraph (N),
9    "portable" means that subscriptions may be retained by the
10    subscriber even if the subscriber relocates or changes its
11    address within the same utility service territory; and
12    "transferable" means that a subscriber may assign or sell
13    subscriptions to another person within the same utility
14    service territory.
15        Electric utilities shall provide a monetary credit to a
16    subscriber's subsequent bill for service for the
17    proportional output of a community renewable generation
18    project attributable to that subscriber as specified in
19    Section 16-107.5 of the Public Utilities Act.
20        The Agency shall purchase renewable energy credits
21    from subscribed shares of photovoltaic community renewable
22    generation projects through the Adjustable Block program
23    described in subparagraph (K) of this paragraph (1) or
24    through the Illinois Solar for All Program described in
25    Section 1-56 of this Act. The electric utility shall
26    purchase any unsubscribed energy from community renewable

 

 

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1    generation projects that are Qualifying Facilities ("QF")
2    under the electric utility's tariff for purchasing the
3    output from QFs under Public Utilities Regulatory Policies
4    Act of 1978.
5        The owners of and any subscribers to a community
6    renewable generation project shall not be considered
7    public utilities or alternative retail electricity
8    suppliers under the Public Utilities Act solely as a result
9    of their interest in or subscription to a community
10    renewable generation project and shall not be required to
11    become an alternative retail electric supplier by
12    participating in a community renewable generation project
13    with a public utility.
14        (O) For the delivery year beginning June 1, 2018, the
15    long-term renewable resources procurement plan required by
16    this subsection (c) shall provide for the Agency to procure
17    contracts to continue offering the Illinois Solar for All
18    Program described in subsection (b) of Section 1-56 of this
19    Act, and the contracts approved by the Commission shall be
20    executed by the utilities that are subject to this
21    subsection (c). The long-term renewable resources
22    procurement plan shall allocate 5% of the funds available
23    under the plan for the applicable delivery year, or
24    $10,000,000 per delivery year, whichever is greater, to
25    fund the programs, and the plan shall determine the amount
26    of funding to be apportioned to the programs identified in

 

 

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1    subsection (b) of Section 1-56 of this Act; provided that
2    for the delivery years beginning June 1, 2017, June 1,
3    2021, and June 1, 2025, the long-term renewable resources
4    procurement plan shall allocate 10% of the funds available
5    under the plan for the applicable delivery year, or
6    $20,000,000 per delivery year, whichever is greater, and
7    $10,000,000 of such funds in such year shall be used by an
8    electric utility that serves more than 3,000,000 retail
9    customers in the State to implement a Commission-approved
10    plan under Section 16-108.12 of the Public Utilities Act.
11    In making the determinations required under this
12    subparagraph (O), the Commission shall consider the
13    experience and performance under the programs and any
14    evaluation reports. The Commission shall also provide for
15    an independent evaluation of those programs on a periodic
16    basis that are funded under this subparagraph (O).
17        (2) (Blank).
18        (3) (Blank).
19        (4) The electric utility shall retire all renewable
20    energy credits used to comply with the renewable portfolio
21    standard.
22        (5) Beginning with the 2010 delivery year and ending
23    June 1, 2017, an electric utility subject to this
24    subsection (c) shall apply the lesser of the maximum
25    alternative compliance payment rate or the most recent
26    estimated alternative compliance payment rate for its

 

 

10100HB2861ham001- 57 -LRB101 07685 RJF 57277 a

1    service territory for the corresponding compliance period,
2    established pursuant to subsection (d) of Section 16-115D
3    of the Public Utilities Act to its retail customers that
4    take service pursuant to the electric utility's hourly
5    pricing tariff or tariffs. The electric utility shall
6    retain all amounts collected as a result of the application
7    of the alternative compliance payment rate or rates to such
8    customers, and, beginning in 2011, the utility shall
9    include in the information provided under item (1) of
10    subsection (d) of Section 16-111.5 of the Public Utilities
11    Act the amounts collected under the alternative compliance
12    payment rate or rates for the prior year ending May 31.
13    Notwithstanding any limitation on the procurement of
14    renewable energy resources imposed by item (2) of this
15    subsection (c), the Agency shall increase its spending on
16    the purchase of renewable energy resources to be procured
17    by the electric utility for the next plan year by an amount
18    equal to the amounts collected by the utility under the
19    alternative compliance payment rate or rates in the prior
20    year ending May 31.
21        (6) The electric utility shall be entitled to recover
22    all of its costs associated with the procurement of
23    renewable energy credits under plans approved under this
24    Section and Section 16-111.5 of the Public Utilities Act.
25    These costs shall include associated reasonable expenses
26    for implementing the procurement programs, including, but

 

 

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1    not limited to, the costs of administering and evaluating
2    the Adjustable Block program, through an automatic
3    adjustment clause tariff in accordance with subsection (k)
4    of Section 16-108 of the Public Utilities Act.
5        (7) Renewable energy credits procured from new
6    photovoltaic projects or new distributed renewable energy
7    generation devices under this Section after June 1, 2017
8    (the effective date of Public Act 99-906) must be procured
9    from devices installed by a qualified person in compliance
10    with the requirements of Section 16-128A of the Public
11    Utilities Act and any rules or regulations adopted
12    thereunder.
13        In meeting the renewable energy requirements of this
14    subsection (c), to the extent feasible and consistent with
15    State and federal law, the renewable energy credit
16    procurements, Adjustable Block solar program, and
17    community renewable generation program shall provide
18    employment opportunities for all segments of the
19    population and workforce, including minority-owned and
20    female-owned business enterprises, and shall not,
21    consistent with State and federal law, discriminate based
22    on race or socioeconomic status.
23    (d) Clean coal portfolio standard.
24        (1) The procurement plans shall include electricity
25    generated using clean coal. Each utility shall enter into
26    one or more sourcing agreements with the initial clean coal

 

 

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1    facility, as provided in paragraph (3) of this subsection
2    (d), covering electricity generated by the initial clean
3    coal facility representing at least 5% of each utility's
4    total supply to serve the load of eligible retail customers
5    in 2015 and each year thereafter, as described in paragraph
6    (3) of this subsection (d), subject to the limits specified
7    in paragraph (2) of this subsection (d). It is the goal of
8    the State that by January 1, 2025, 25% of the electricity
9    used in the State shall be generated by cost-effective
10    clean coal facilities. For purposes of this subsection (d),
11    "cost-effective" means that the expenditures pursuant to
12    such sourcing agreements do not cause the limit stated in
13    paragraph (2) of this subsection (d) to be exceeded and do
14    not exceed cost-based benchmarks, which shall be developed
15    to assess all expenditures pursuant to such sourcing
16    agreements covering electricity generated by clean coal
17    facilities, other than the initial clean coal facility, by
18    the procurement administrator, in consultation with the
19    Commission staff, Agency staff, and the procurement
20    monitor and shall be subject to Commission review and
21    approval.
22        A utility party to a sourcing agreement shall
23    immediately retire any emission credits that it receives in
24    connection with the electricity covered by such agreement.
25        Utilities shall maintain adequate records documenting
26    the purchases under the sourcing agreement to comply with

 

 

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1    this subsection (d) and shall file an accounting with the
2    load forecast that must be filed with the Agency by July 15
3    of each year, in accordance with subsection (d) of Section
4    16-111.5 of the Public Utilities Act.
5        A utility shall be deemed to have complied with the
6    clean coal portfolio standard specified in this subsection
7    (d) if the utility enters into a sourcing agreement as
8    required by this subsection (d).
9        (2) For purposes of this subsection (d), the required
10    execution of sourcing agreements with the initial clean
11    coal facility for a particular year shall be measured as a
12    percentage of the actual amount of electricity
13    (megawatt-hours) supplied by the electric utility to
14    eligible retail customers in the planning year ending
15    immediately prior to the agreement's execution. For
16    purposes of this subsection (d), the amount paid per
17    kilowatthour means the total amount paid for electric
18    service expressed on a per kilowatthour basis. For purposes
19    of this subsection (d), the total amount paid for electric
20    service includes without limitation amounts paid for
21    supply, transmission, distribution, surcharges and add-on
22    taxes.
23        Notwithstanding the requirements of this subsection
24    (d), the total amount paid under sourcing agreements with
25    clean coal facilities pursuant to the procurement plan for
26    any given year shall be reduced by an amount necessary to

 

 

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

 

 

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1        estimated average net increase due to the cost of these
2        resources included in the amounts paid by eligible
3        retail customers in connection with electric service
4        to no more than the greater of (i) 2.015% of the amount
5        paid per kilowatthour by those customers during the
6        year ending May 31, 2009 or (ii) the incremental amount
7        per kilowatthour paid for these resources in 2013.
8        These requirements may be altered only as provided by
9        statute.
10        No later than June 30, 2015, the Commission shall
11    review the limitation on the total amount paid under
12    sourcing agreements, if any, with clean coal facilities
13    pursuant to this subsection (d) and report to the General
14    Assembly its findings as to whether that limitation unduly
15    constrains the amount of electricity generated by
16    cost-effective clean coal facilities that is covered by
17    sourcing agreements.
18        (3) Initial clean coal facility. In order to promote
19    development of clean coal facilities in Illinois, each
20    electric utility subject to this Section shall execute a
21    sourcing agreement to source electricity from a proposed
22    clean coal facility in Illinois (the "initial clean coal
23    facility") that will have a nameplate capacity of at least
24    500 MW when commercial operation commences, that has a
25    final Clean Air Act permit on June 1, 2009 (the effective
26    date of Public Act 95-1027), and that will meet the

 

 

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1    definition of clean coal facility in Section 1-10 of this
2    Act when commercial operation commences. The sourcing
3    agreements with this initial clean coal facility shall be
4    subject to both approval of the initial clean coal facility
5    by the General Assembly and satisfaction of the
6    requirements of paragraph (4) of this subsection (d) and
7    shall be executed within 90 days after any such approval by
8    the General Assembly. The Agency and the Commission shall
9    have authority to inspect all books and records associated
10    with the initial clean coal facility during the term of
11    such a sourcing agreement. A utility's sourcing agreement
12    for electricity produced by the initial clean coal facility
13    shall include:
14            (A) a formula contractual price (the "contract
15        price") approved pursuant to paragraph (4) of this
16        subsection (d), which shall:
17                (i) be determined using a cost of service
18            methodology employing either a level or deferred
19            capital recovery component, based on a capital
20            structure consisting of 45% equity and 55% debt,
21            and a return on equity as may be approved by the
22            Federal Energy Regulatory Commission, which in any
23            case may not exceed the lower of 11.5% or the rate
24            of return approved by the General Assembly
25            pursuant to paragraph (4) of this subsection (d);
26            and

 

 

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1                (ii) provide that all miscellaneous net
2            revenue, including but not limited to net revenue
3            from the sale of emission allowances, if any,
4            substitute natural gas, if any, grants or other
5            support provided by the State of Illinois or the
6            United States Government, firm transmission
7            rights, if any, by-products produced by the
8            facility, energy or capacity derived from the
9            facility and not covered by a sourcing agreement
10            pursuant to paragraph (3) of this subsection (d) or
11            item (5) of subsection (d) of Section 16-115 of the
12            Public Utilities Act, whether generated from the
13            synthesis gas derived from coal, from SNG, or from
14            natural gas, shall be credited against the revenue
15            requirement for this initial clean coal facility;
16            (B) power purchase provisions, which shall:
17                (i) provide that the utility party to such
18            sourcing agreement shall pay the contract price
19            for electricity delivered under such sourcing
20            agreement;
21                (ii) require delivery of electricity to the
22            regional transmission organization market of the
23            utility that is party to such sourcing agreement;
24                (iii) require the utility party to such
25            sourcing agreement to buy from the initial clean
26            coal facility in each hour an amount of energy

 

 

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

 

 

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1            energy equal to all clean coal energy made
2            available from the initial clean coal facility
3            during such hour times a fraction, the numerator of
4            which is such utility's retail market sales of
5            electricity (expressed in kilowatthours sold) in
6            the utility's service territory in the State
7            during the prior calendar month and the
8            denominator of which is the total retail market
9            sales of electricity (expressed in kilowatthours
10            sold) in the State by utilities during such prior
11            month and the sales of electricity (expressed in
12            kilowatthours sold) in the State by alternative
13            retail electric suppliers during such prior month
14            that are subject to the requirements of this
15            subsection (d) and paragraph (5) of subsection (d)
16            of Section 16-115 of the Public Utilities Act,
17            provided that the amount paid by the utility in any
18            year will be limited by paragraph (2) of this
19            subsection (d);
20                (ii) provide that the utility's payment
21            obligation in respect of the quantity of
22            electricity determined pursuant to the preceding
23            clause (i) shall be limited to an amount equal to
24            (1) the difference between the contract price
25            determined pursuant to subparagraph (A) of
26            paragraph (3) of this subsection (d) and the

 

 

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1            day-ahead price for electricity delivered to the
2            regional transmission organization market of the
3            utility that is party to such sourcing agreement
4            (or any successor delivery point at which such
5            utility's supply obligations are financially
6            settled on an hourly basis) (the "reference
7            price") on the day preceding the day on which the
8            electricity is delivered to the initial clean coal
9            facility busbar, multiplied by (2) the quantity of
10            electricity determined pursuant to the preceding
11            clause (i); and
12                (iii) not require the utility to take physical
13            delivery of the electricity produced by the
14            facility;
15            (D) general provisions, which shall:
16                (i) specify a term of no more than 30 years,
17            commencing on the commercial operation date of the
18            facility;
19                (ii) provide that utilities shall maintain
20            adequate records documenting purchases under the
21            sourcing agreements entered into to comply with
22            this subsection (d) and shall file an accounting
23            with the load forecast that must be filed with the
24            Agency by July 15 of each year, in accordance with
25            subsection (d) of Section 16-111.5 of the Public
26            Utilities Act;

 

 

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1                (iii) provide that all costs associated with
2            the initial clean coal facility will be
3            periodically reported to the Federal Energy
4            Regulatory Commission and to purchasers in
5            accordance with applicable laws governing
6            cost-based wholesale power contracts;
7                (iv) permit the Illinois Power Agency to
8            assume ownership of the initial clean coal
9            facility, without monetary consideration and
10            otherwise on reasonable terms acceptable to the
11            Agency, if the Agency so requests no less than 3
12            years prior to the end of the stated contract term;
13                (v) require the owner of the initial clean coal
14            facility to provide documentation to the
15            Commission each year, starting in the facility's
16            first year of commercial operation, accurately
17            reporting the quantity of carbon emissions from
18            the facility that have been captured and
19            sequestered and report any quantities of carbon
20            released from the site or sites at which carbon
21            emissions were sequestered in prior years, based
22            on continuous monitoring of such sites. If, in any
23            year after the first year of commercial operation,
24            the owner of the facility fails to demonstrate that
25            the initial clean coal facility captured and
26            sequestered at least 50% of the total carbon

 

 

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1            emissions that the facility would otherwise emit
2            or that sequestration of emissions from prior
3            years has failed, resulting in the release of
4            carbon dioxide into the atmosphere, the owner of
5            the facility must offset excess emissions. Any
6            such carbon offsets must be permanent, additional,
7            verifiable, real, located within the State of
8            Illinois, and legally and practicably enforceable.
9            The cost of such offsets for the facility that are
10            not recoverable shall not exceed $15 million in any
11            given year. No costs of any such purchases of
12            carbon offsets may be recovered from a utility or
13            its customers. All carbon offsets purchased for
14            this purpose and any carbon emission credits
15            associated with sequestration of carbon from the
16            facility must be permanently retired. The initial
17            clean coal facility shall not forfeit its
18            designation as a clean coal facility if the
19            facility fails to fully comply with the applicable
20            carbon sequestration requirements in any given
21            year, provided the requisite offsets are
22            purchased. However, the Attorney General, on
23            behalf of the People of the State of Illinois, may
24            specifically enforce the facility's sequestration
25            requirement and the other terms of this contract
26            provision. Compliance with the sequestration

 

 

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1            requirements and offset purchase requirements
2            specified in paragraph (3) of this subsection (d)
3            shall be reviewed annually by an independent
4            expert retained by the owner of the initial clean
5            coal facility, with the advance written approval
6            of the Attorney General. The Commission may, in the
7            course of the review specified in item (vii),
8            reduce the allowable return on equity for the
9            facility if the facility willfully fails to comply
10            with the carbon capture and sequestration
11            requirements set forth in this item (v);
12                (vi) include limits on, and accordingly
13            provide for modification of, the amount the
14            utility is required to source under the sourcing
15            agreement consistent with paragraph (2) of this
16            subsection (d);
17                (vii) require Commission review: (1) to
18            determine the justness, reasonableness, and
19            prudence of the inputs to the formula referenced in
20            subparagraphs (A)(i) through (A)(iii) of paragraph
21            (3) of this subsection (d), prior to an adjustment
22            in those inputs including, without limitation, the
23            capital structure and return on equity, fuel
24            costs, and other operations and maintenance costs
25            and (2) to approve the costs to be passed through
26            to customers under the sourcing agreement by which

 

 

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1            the utility satisfies its statutory obligations.
2            Commission review shall occur no less than every 3
3            years, regardless of whether any adjustments have
4            been proposed, and shall be completed within 9
5            months;
6                (viii) limit the utility's obligation to such
7            amount as the utility is allowed to recover through
8            tariffs filed with the Commission, provided that
9            neither the clean coal facility nor the utility
10            waives any right to assert federal pre-emption or
11            any other argument in response to a purported
12            disallowance of recovery costs;
13                (ix) limit the utility's or alternative retail
14            electric supplier's obligation to incur any
15            liability until such time as the facility is in
16            commercial operation and generating power and
17            energy and such power and energy is being delivered
18            to the facility busbar;
19                (x) provide that the owner or owners of the
20            initial clean coal facility, which is the
21            counterparty to such sourcing agreement, shall
22            have the right from time to time to elect whether
23            the obligations of the utility party thereto shall
24            be governed by the power purchase provisions or the
25            contract for differences provisions;
26                (xi) append documentation showing that the

 

 

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

 

 

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

 

 

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1        or consultants prior to receipt of the facility cost
2        report.
3            (iii) General Assembly approval. The proposed
4        sourcing agreements shall not take effect unless,
5        based on the facility cost report and the Commission's
6        report, the General Assembly enacts authorizing
7        legislation approving (A) the projected price, stated
8        in cents per kilowatthour, to be charged for
9        electricity generated by the initial clean coal
10        facility, (B) the projected impact on residential and
11        small business customers' bills over the life of the
12        sourcing agreements, and (C) the maximum allowable
13        return on equity for the project; and
14            (iv) Commission review. If the General Assembly
15        enacts authorizing legislation pursuant to
16        subparagraph (iii) approving a sourcing agreement, the
17        Commission shall, within 90 days of such enactment,
18        complete a review of such sourcing agreement. During
19        such time period, the Commission shall implement any
20        directive of the General Assembly, resolve any
21        disputes between the parties to the sourcing agreement
22        concerning the terms of such agreement, approve the
23        form of such agreement, and issue an order finding that
24        the sourcing agreement is prudent and reasonable.
25        The facility cost report shall be prepared as follows:
26            (A) The facility cost report shall be prepared by

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    31, 2027. The quantity of zero emission credits to be
2    procured under the contracts shall be all of the zero
3    emission credits generated by the zero emission facility in
4    each delivery year; however, if the zero emission facility
5    is owned by more than one entity, then the quantity of zero
6    emission credits to be procured under the contracts shall
7    be the amount of zero emission credits that are generated
8    from the portion of the zero emission facility that is
9    owned by the winning supplier.
10        The 16% value identified in this paragraph (1) is the
11    average of the percentage targets in subparagraph (B) of
12    paragraph (1) of subsection (c) of this Section 1-75 of
13    this Act for the 5 delivery years beginning June 1, 2017.
14        The procurement process shall be subject to the
15    following provisions:
16            (A) Those zero emission facilities that intend to
17        participate in the procurement shall submit to the
18        Agency the following eligibility information for each
19        zero emission facility on or before the date
20        established by the Agency:
21                (i) the in-service date and remaining useful
22            life of the zero emission facility;
23                (ii) the amount of power generated annually
24            for each of the years 2005 through 2015, and the
25            projected zero emission credits to be generated
26            over the remaining useful life of the zero emission

 

 

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1            facility, which shall be used to determine the
2            capability of each facility;
3                (iii) the annual zero emission facility cost
4            projections, expressed on a per megawatthour
5            basis, over the next 6 delivery years, which shall
6            include the following: operation and maintenance
7            expenses; fully allocated overhead costs, which
8            shall be allocated using the methodology developed
9            by the Institute for Nuclear Power Operations;
10            fuel expenditures; non-fuel capital expenditures;
11            spent fuel expenditures; a return on working
12            capital; the cost of operational and market risks
13            that could be avoided by ceasing operation; and any
14            other costs necessary for continued operations,
15            provided that "necessary" means, for purposes of
16            this item (iii), that the costs could reasonably be
17            avoided only by ceasing operations of the zero
18            emission facility; and
19                (iv) a commitment to continue operating, for
20            the duration of the contract or contracts executed
21            under the procurement held under this subsection
22            (d-5), the zero emission facility that produces
23            the zero emission credits to be procured in the
24            procurement.
25            The information described in item (iii) of this
26        subparagraph (A) may be submitted on a confidential

 

 

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1        basis and shall be treated and maintained by the
2        Agency, the procurement administrator, and the
3        Commission as confidential and proprietary and exempt
4        from disclosure under subparagraphs (a) and (g) of
5        paragraph (1) of Section 7 of the Freedom of
6        Information Act. The Office of Attorney General shall
7        have access to, and maintain the confidentiality of,
8        such information pursuant to Section 6.5 of the
9        Attorney General Act.
10            (B) The price for each zero emission credit
11        procured under this subsection (d-5) for each delivery
12        year shall be in an amount that equals the Social Cost
13        of Carbon, expressed on a price per megawatthour basis.
14        However, to ensure that the procurement remains
15        affordable to retail customers in this State if
16        electricity prices increase, the price in an
17        applicable delivery year shall be reduced below the
18        Social Cost of Carbon by the amount ("Price
19        Adjustment") by which the market price index for the
20        applicable delivery year exceeds the baseline market
21        price index for the consecutive 12-month period ending
22        May 31, 2016. If the Price Adjustment is greater than
23        or equal to the Social Cost of Carbon in an applicable
24        delivery year, then no payments shall be due in that
25        delivery year. The components of this calculation are
26        defined as follows:

 

 

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1                (i) Social Cost of Carbon: The Social Cost of
2            Carbon is $16.50 per megawatthour, which is based
3            on the U.S. Interagency Working Group on Social
4            Cost of Carbon's price in the August 2016 Technical
5            Update using a 3% discount rate, adjusted for
6            inflation for each year of the program. Beginning
7            with the delivery year commencing June 1, 2023, the
8            price per megawatthour shall increase by $1 per
9            megawatthour, and continue to increase by an
10            additional $1 per megawatthour each delivery year
11            thereafter.
12                (ii) Baseline market price index: The baseline
13            market price index for the consecutive 12-month
14            period ending May 31, 2016 is $31.40 per
15            megawatthour, which is based on the sum of (aa) the
16            average day-ahead energy price across all hours of
17            such 12-month period at the PJM Interconnection
18            LLC Northern Illinois Hub, (bb) 50% multiplied by
19            the Base Residual Auction, or its successor,
20            capacity price for the rest of the RTO zone group
21            determined by PJM Interconnection LLC, divided by
22            24 hours per day, and (cc) 50% multiplied by the
23            Planning Resource Auction, or its successor,
24            capacity price for Zone 4 determined by the
25            Midcontinent Independent System Operator, Inc.,
26            divided by 24 hours per day.

 

 

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1                (iii) Market price index: The market price
2            index for a delivery year shall be the sum of
3            projected energy prices and projected capacity
4            prices determined as follows:
5                    (aa) Projected energy prices: the
6                projected energy prices for the applicable
7                delivery year shall be calculated once for the
8                year using the forward market price for the PJM
9                Interconnection, LLC Northern Illinois Hub.
10                The forward market price shall be calculated as
11                follows: the energy forward prices for each
12                month of the applicable delivery year averaged
13                for each trade date during the calendar year
14                immediately preceding that delivery year to
15                produce a single energy forward price for the
16                delivery year. The forward market price
17                calculation shall use data published by the
18                Intercontinental Exchange, or its successor.
19                    (bb) Projected capacity prices:
20                        (I) For the delivery years commencing
21                    June 1, 2017, June 1, 2018, and June 1,
22                    2019, the projected capacity price shall
23                    be equal to the sum of (1) 50% multiplied
24                    by the Base Residual Auction, or its
25                    successor, price for the rest of the RTO
26                    zone group 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                    resource auction price determined in the
4                    resource auction administered by the
5                    Midcontinent Independent System Operator,
6                    Inc., in which the largest percentage of
7                    load cleared for Local Resource Zone 4,
8                    divided by 24 hours per day, and where such
9                    price is determined by the Midcontinent
10                    Independent System Operator, Inc.
11                        (II) For the delivery year commencing
12                    June 1, 2020, and each year thereafter, the
13                    projected capacity price shall be equal to
14                    the sum of (1) 50% multiplied by the Base
15                    Residual Auction, or its successor, price
16                    for the ComEd zone as determined by PJM
17                    Interconnection LLC, divided by 24 hours
18                    per day, and (2) 50% multiplied by the
19                    resource auction price determined in the
20                    resource auction administered by the
21                    Midcontinent Independent System Operator,
22                    Inc., in which the largest percentage of
23                    load cleared for Local Resource Zone 4,
24                    divided by 24 hours per day, and where such
25                    price is determined by the Midcontinent
26                    Independent System Operator, Inc.

 

 

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1            For purposes of this subsection (d-5):
2                "Rest of the RTO" and "ComEd Zone" shall have
3            the meaning ascribed to them by PJM
4            Interconnection, LLC.
5                "RTO" means regional transmission
6            organization.
7            (C) No later than 45 days after June 1, 2017 (the
8        effective date of Public Act 99-906), the Agency shall
9        publish its proposed zero emission standard
10        procurement plan. The plan shall be consistent with the
11        provisions of this paragraph (1) and shall provide that
12        winning bids shall be selected based on public interest
13        criteria that include, but are not limited to,
14        minimizing carbon dioxide emissions that result from
15        electricity consumed in Illinois and minimizing sulfur
16        dioxide, nitrogen oxide, and particulate matter
17        emissions that adversely affect the citizens of this
18        State. In particular, the selection of winning bids
19        shall take into account the incremental environmental
20        benefits resulting from the procurement, such as any
21        existing environmental benefits that are preserved by
22        the procurements held under Public Act 99-906 and would
23        cease to exist if the procurements were not held,
24        including the preservation of zero emission
25        facilities. The plan shall also describe in detail how
26        each public interest factor shall be considered and

 

 

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1        weighted in the bid selection process to ensure that
2        the public interest criteria are applied to the
3        procurement and given full effect.
4            For purposes of developing the plan, the Agency
5        shall consider any reports issued by a State agency,
6        board, or commission under House Resolution 1146 of the
7        98th General Assembly and paragraph (4) of subsection
8        (d) of this Section 1-75 of this Act, as well as
9        publicly available analyses and studies performed by
10        or for regional transmission organizations that serve
11        the State and their independent market monitors.
12            Upon publishing of the zero emission standard
13        procurement plan, copies of the plan shall be posted
14        and made publicly available on the Agency's website.
15        All interested parties shall have 10 days following the
16        date of posting to provide comment to the Agency on the
17        plan. All comments shall be posted to the Agency's
18        website. Following the end of the comment period, but
19        no more than 60 days later than June 1, 2017 (the
20        effective date of Public Act 99-906), the Agency shall
21        revise the plan as necessary based on the comments
22        received and file its zero emission standard
23        procurement plan with the Commission.
24            If the Commission determines that the plan will
25        result in the procurement of cost-effective zero
26        emission credits, then the Commission shall, after

 

 

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1        notice and hearing, but no later than 45 days after the
2        Agency filed the plan, approve the plan or approve with
3        modification. For purposes of this subsection (d-5),
4        "cost effective" means the projected costs of
5        procuring zero emission credits from zero emission
6        facilities do not cause the limit stated in paragraph
7        (2) of this subsection to be exceeded.
8            (C-5) As part of the Commission's review and
9        acceptance or rejection of the procurement results,
10        the Commission shall, in its public notice of
11        successful bidders:
12                (i) identify how the winning bids satisfy the
13            public interest criteria described in subparagraph
14            (C) of this paragraph (1) of minimizing carbon
15            dioxide emissions that result from electricity
16            consumed in Illinois and minimizing sulfur
17            dioxide, nitrogen oxide, and particulate matter
18            emissions that adversely affect the citizens of
19            this State;
20                (ii) specifically address how the selection of
21            winning bids takes into account the incremental
22            environmental benefits resulting from the
23            procurement, including any existing environmental
24            benefits that are preserved by the procurements
25            held under Public Act 99-906 and would have ceased
26            to exist if the procurements had not been held,

 

 

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

 

 

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

 

 

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1        shall be conducted in conjunction with the procurement
2        and plan approval processes required by subsection (c)
3        of this Section and Section 16-111.5 of the Public
4        Utilities Act, to the extent practicable.
5        Notwithstanding whether a procurement event is
6        conducted under Section 16-111.5 of the Public
7        Utilities Act, the Agency shall immediately initiate a
8        procurement process on June 1, 2017 (the effective date
9        of Public Act 99-906).
10            (D) Following the procurement event described in
11        this paragraph (1) and consistent with subparagraph
12        (B) of this paragraph (1), the Agency shall calculate
13        the payments to be made under each contract for the
14        next delivery year based on the market price index for
15        that delivery year. The Agency shall publish the
16        payment calculations no later than May 25, 2017 and
17        every May 25 thereafter.
18            (E) Notwithstanding the requirements of this
19        subsection (d-5), the contracts executed under this
20        subsection (d-5) shall provide that the zero emission
21        facility may, as applicable, suspend or terminate
22        performance under the contracts in the following
23        instances:
24                (i) A zero emission facility shall be excused
25            from its performance under the contract for any
26            cause beyond the control of the resource,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    be reduced if an adjustment is required under subsection
2    (m) of Section 16-108 of the Public Utilities Act.
3        (7) This subsection (d-5) shall become inoperative on
4    January 1, 2028.
5    (e) The draft procurement plans are subject to public
6comment, as required by Section 16-111.5 of the Public
7Utilities Act.
8    (f) The Agency shall submit the final procurement plan to
9the Commission. The Agency shall revise a procurement plan if
10the Commission determines that it does not meet the standards
11set forth in Section 16-111.5 of the Public Utilities Act.
12    (g) The Agency shall assess fees to each affected utility
13to recover the costs incurred in preparation of the annual
14procurement plan for the utility.
15    (h) The Agency shall assess fees to each bidder to recover
16the costs incurred in connection with a competitive procurement
17process.
18    (i) A renewable energy credit, carbon emission credit, or
19zero emission credit can only be used once to comply with a
20single portfolio or other standard as set forth in subsection
21(c), subsection (d), or subsection (d-5) of this Section,
22respectively. A renewable energy credit, carbon emission
23credit, or zero emission credit cannot be used to satisfy the
24requirements of more than one standard. If more than one type
25of credit is issued for the same megawatt hour of energy, only
26one credit can be used to satisfy the requirements of a single

 

 

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1standard. After such use, the credit must be retired together
2with any other credits issued for the same megawatt hour of
3energy.
4(Source: P.A. 99-536, eff. 7-8-16; 99-906, eff. 6-1-17;
5100-863, eff. 8-14-18; revised 10-18-18.)
 
6    Section 10. The Public Utilities Act is amended by changing
7Sections 16-111.5, 16-115, 16-115A, 16-115B, 16-115C, 16-118,
816-120, 19-110, 19-115, and 19-120 and by adding Sections
916-115E, 19-116, 19-117, and 20-140 as follows:
 
10    (220 ILCS 5/16-111.5)
11    Sec. 16-111.5. Provisions relating to procurement.
12    (a) An electric utility that on December 31, 2005 served at
13least 100,000 customers in Illinois shall procure power and
14energy for its eligible retail customers in accordance with the
15applicable provisions set forth in Section 1-75 of the Illinois
16Power Agency Act and this Section. Beginning with the delivery
17year commencing on June 1, 2017, such electric utility shall
18also procure zero emission credits from zero emission
19facilities in accordance with the applicable provisions set
20forth in Section 1-75 of the Illinois Power Agency Act, and,
21for years beginning on or after June 1, 2017, the utility shall
22procure renewable energy resources in accordance with the
23applicable provisions set forth in Section 1-75 of the Illinois
24Power Agency Act and this Section. Pursuant to the procurement

 

 

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1plans and processes approved by the Commission under subsection
2(b-5), an electric utility that serves at least 3,000,000
3retail customers in Illinois shall procure capacity in
4accordance with subsection (b-5) for the delivery year
5commencing June 1, 2023, and each delivery year thereafter
6through the delivery year commencing June 1, 2032.
7    A small multi-jurisdictional electric utility that on
8December 31, 2005 served less than 100,000 customers in
9Illinois may elect to procure power and energy for all or a
10portion of its eligible Illinois retail customers in accordance
11with the applicable provisions set forth in this Section and
12Section 1-75 of the Illinois Power Agency Act. This Section
13shall not apply to a small multi-jurisdictional utility until
14such time as a small multi-jurisdictional utility requests the
15Illinois Power Agency to prepare a procurement plan for its
16eligible retail customers. "Eligible retail customers" for the
17purposes of this Section means those retail customers that
18purchase power and energy from the electric utility under
19fixed-price bundled service tariffs, other than those retail
20customers whose service is declared or deemed competitive under
21Section 16-113 and those other customer groups specified in
22this Section, including self-generating customers, customers
23electing hourly pricing, or those customers who are otherwise
24ineligible for fixed-price bundled tariff service. For those
25customers that are excluded from the procurement plan's
26electric supply service requirements, and the utility shall

 

 

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1procure any supply requirements, including capacity, ancillary
2services, and hourly priced energy, in the applicable markets
3as needed to serve those customers, provided that the utility
4may include in its procurement plan load requirements for the
5load that is associated with those retail customers whose
6service has been declared or deemed competitive pursuant to
7Section 16-113 of this Act to the extent that those customers
8are purchasing power and energy during one of the transition
9periods identified in subsection (b) of Section 16-113 of this
10Act.
11    (b) A procurement plan shall be prepared for each electric
12utility consistent with the applicable requirements of the
13Illinois Power Agency Act and this Section. For purposes of
14this Section, Illinois electric utilities that are affiliated
15by virtue of a common parent company are considered to be a
16single electric utility. Small multi-jurisdictional utilities
17may request a procurement plan for a portion of or all of its
18Illinois load. Each procurement plan shall analyze the
19projected balance of supply and demand for those retail
20customers to be included in the plan's electric supply service
21requirements over a 5-year period, with the first planning year
22beginning on June 1 of the year following the year in which the
23plan is filed. The plan shall specifically identify the
24wholesale products to be procured following plan approval, and
25shall follow all the requirements set forth in the Public
26Utilities Act and all applicable State and federal laws,

 

 

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1statutes, rules, or regulations, as well as Commission orders.
2Nothing in this Section precludes consideration of contracts
3longer than 5 years and related forecast data. Unless specified
4otherwise in this Section, in the procurement plan or in the
5implementing tariff, any procurement occurring in accordance
6with this plan shall be competitively bid through a request for
7proposals process. Approval and implementation of the
8procurement plan shall be subject to review and approval by the
9Commission according to the provisions set forth in this
10Section. A procurement plan shall include each of the following
11components:
12        (1) Hourly load analysis. This analysis shall include:
13            (i) multi-year historical analysis of hourly
14        loads;
15            (ii) switching trends and competitive retail
16        market analysis;
17            (iii) known or projected changes to future loads;
18        and
19            (iv) growth forecasts by customer class.
20        (2) Analysis of the impact of any demand side and
21    renewable energy initiatives. This analysis shall include:
22            (i) the impact of demand response programs and
23        energy efficiency programs, both current and
24        projected; for small multi-jurisdictional utilities,
25        the impact of demand response and energy efficiency
26        programs approved pursuant to Section 8-408 of this

 

 

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1        Act, both current and projected; and
2            (ii) supply side needs that are projected to be
3        offset by purchases of renewable energy resources, if
4        any.
5        (3) A plan for meeting the expected load requirements
6    that will not be met through preexisting contracts. This
7    plan shall include:
8            (i) definitions of the different Illinois retail
9        customer classes for which supply is being purchased;
10            (ii) the proposed mix of demand-response products
11        for which contracts will be executed during the next
12        year. For small multi-jurisdictional electric
13        utilities that on December 31, 2005 served fewer than
14        100,000 customers in Illinois, these shall be defined
15        as demand-response products offered in an energy
16        efficiency plan approved pursuant to Section 8-408 of
17        this Act. The cost-effective demand-response measures
18        shall be procured whenever the cost is lower than
19        procuring comparable capacity products, provided that
20        such products shall:
21                (A) be procured by a demand-response provider
22            from those retail customers included in the plan's
23            electric supply service requirements;
24                (B) at least satisfy the demand-response
25            requirements of the regional transmission
26            organization market in which the utility's service

 

 

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

 

 

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1        capacity, peak load capacity obligations, capacity
2        purchase plan, and ancillary services;
3            (v) proposed term structures for each wholesale
4        product type included in the proposed procurement plan
5        portfolio of products; and
6            (vi) an assessment of the price risk, load
7        uncertainty, and other factors that are associated
8        with the proposed procurement plan; this assessment,
9        to the extent possible, shall include an analysis of
10        the following factors: contract terms, time frames for
11        securing products or services, fuel costs, weather
12        patterns, transmission costs, market conditions, and
13        the governmental regulatory environment; the proposed
14        procurement plan shall also identify alternatives for
15        those portfolio measures that are identified as having
16        significant price risk.
17        (4) Proposed procedures for balancing loads. The
18    procurement plan shall include, for load requirements
19    included in the procurement plan, the process for (i)
20    hourly balancing of supply and demand and (ii) the criteria
21    for portfolio re-balancing in the event of significant
22    shifts in load.
23        (5) Long-Term Renewable Resources Procurement Plan.
24    The Agency shall prepare a long-term renewable resources
25    procurement plan for the procurement of renewable energy
26    credits under Sections 1-56 and 1-75 of the Illinois Power

 

 

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1    Agency Act for delivery beginning in the 2017 delivery
2    year.
3            (i) The initial long-term renewable resources
4        procurement plan and all subsequent revisions shall be
5        subject to review and approval by the Commission. For
6        the purposes of this Section, "delivery year" has the
7        same meaning as in Section 1-10 of the Illinois Power
8        Agency Act. For purposes of this Section, "Agency"
9        shall mean the Illinois Power Agency.
10            (ii) The long-term renewable resources planning
11        process shall be conducted as follows:
12                (A) Electric utilities shall provide a range
13            of load forecasts to the Illinois Power Agency
14            within 45 days of the Agency's request for
15            forecasts, which request shall specify the length
16            and conditions for the forecasts including, but
17            not limited to, the quantity of distributed
18            generation expected to be interconnected for each
19            year.
20                (B) The Agency shall publish for comment the
21            initial long-term renewable resources procurement
22            plan no later than 120 days after the effective
23            date of this amendatory Act of the 99th General
24            Assembly and shall review, and may revise, the plan
25            at least every 2 years thereafter. To the extent
26            practicable, the Agency shall review and propose

 

 

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1            any revisions to the long-term renewable energy
2            resources procurement plan in conjunction with the
3            Agency's other planning and approval processes
4            conducted under this Section. The initial
5            long-term renewable resources procurement plan
6            shall:
7                    (aa) Identify the procurement programs and
8                competitive procurement events consistent with
9                the applicable requirements of the Illinois
10                Power Agency Act and shall be designed to
11                achieve the goals set forth in subsection (c)
12                of Section 1-75 of that Act.
13                    (bb) Include a schedule for procurements
14                for renewable energy credits from
15                utility-scale wind projects, utility-scale
16                solar projects, and brownfield site
17                photovoltaic projects consistent with
18                subparagraph (G) of paragraph (1) of
19                subsection (c) of Section 1-75 of the Illinois
20                Power Agency Act.
21                    (cc) Identify the process whereby the
22                Agency will submit to the Commission for review
23                and approval the proposed contracts to
24                implement the programs required by such plan.
25                Copies of the initial long-term renewable
26            resources procurement plan and all subsequent

 

 

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

 

 

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1            plan or any subsequent revisions, any person
2            objecting to the plan may file an objection with
3            the Commission. Within 21 days after the filing of
4            the plan, the Commission shall determine whether a
5            hearing is necessary. The Commission shall enter
6            its order confirming or modifying the initial
7            long-term renewable resources procurement plan or
8            any subsequent revisions within 120 days after the
9            filing of the plan by the Illinois Power Agency.
10                (D) The Commission shall approve the initial
11            long-term renewable resources procurement plan and
12            any subsequent revisions, including expressly the
13            forecast used in the plan and taking into account
14            that funding will be limited to the amount of
15            revenues actually collected by the utilities, if
16            the Commission determines that the plan will
17            reasonably and prudently accomplish the
18            requirements of Section 1-56 and subsection (c) of
19            Section 1-75 of the Illinois Power Agency Act. The
20            Commission shall also approve the process for the
21            submission, review, and approval of the proposed
22            contracts to procure renewable energy credits or
23            implement the programs authorized by the
24            Commission pursuant to a long-term renewable
25            resources procurement plan approved under this
26            Section.

 

 

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1            (iii) The Agency or third parties contracted by the
2        Agency shall implement all programs authorized by the
3        Commission in an approved long-term renewable
4        resources procurement plan without further review and
5        approval by the Commission. Third parties shall not
6        begin implementing any programs or receive any payment
7        under this Section until the Commission has approved
8        the contract or contracts under the process authorized
9        by the Commission in item (D) of subparagraph (ii) of
10        paragraph (5) of this subsection (b) and the third
11        party and the Agency or utility, as applicable, have
12        executed the contract. For those renewable energy
13        credits subject to procurement through a competitive
14        bid process under the plan or under the initial forward
15        procurements for wind and solar resources described in
16        subparagraph (G) of paragraph (1) of subsection (c) of
17        Section 1-75 of the Illinois Power Agency Act, the
18        Agency shall follow the procurement process specified
19        in the provisions relating to electricity procurement
20        in subsections (e) through (i) of this Section.
21            (iv) An electric utility shall recover its costs
22        associated with the procurement of renewable energy
23        credits under this Section through an automatic
24        adjustment clause tariff under subsection (k) of
25        Section 16-108 of this Act. A utility shall not be
26        required to advance any payment or pay any amounts

 

 

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1        under this Section that exceed the actual amount of
2        revenues collected by the utility under paragraph (6)
3        of subsection (c) of Section 1-75 of the Illinois Power
4        Agency Act and subsection (k) of Section 16-108 of this
5        Act, and contracts executed under this Section shall
6        expressly incorporate this limitation.
7            (v) For the public interest, safety, and welfare,
8        the Agency and the Commission may adopt rules to carry
9        out the provisions of this Section on an emergency
10        basis immediately following the effective date of this
11        amendatory Act of the 99th General Assembly.
12            (vi) On or before July 1 of each year, the
13        Commission shall hold an informal hearing for the
14        purpose of receiving comments on the prior year's
15        procurement process and any recommendations for
16        change.
17    (b-5)(1) Notwithstanding any other provision of this Act or
18the Illinois Power Agency Act, the Agency shall, for each
19electric utility that serves at least 3,000,000 retail
20customers in this State, procure contracts for capacity for all
21of the utility's retail customers located in the Applicable
22Fixed Resource Requirement Service Area of PJM
23Interconnection, LLC, or its successor, in accordance with this
24subsection (b-5). Capacity procured under this subsection
25(b-5) shall not include capacity for the load associated with
26customers served by a municipal utility or electric

 

 

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1cooperative.
2    If PJM Interconnection, LLC tariffs permit a
3resource-specific Fixed Resource Requirement, the Illinois
4Power Agency shall procure contracts for clean capacity as
5provided in this subsection (b-5). Additionally, the Illinois
6Power Agency's procurement plan shall evaluate whether a
7supplemental capacity procurement, in an amount sufficient to
8meet such electric utility's Unforced Capacity Obligation, is
9in the public interest. Upon a Commission determination that it
10is in the public interest to pursue a Fixed Resource
11Requirement rather than a resource-specific Fixed Resource
12Requirement, the Illinois Power Agency shall conduct
13procurements for such additional capacity. The Commission, the
14Illinois Power Agency, and the utility shall take all necessary
15steps in accordance with the PJM Interconnection, LLC tariffs
16to effectuate the Commission determination to pursue a
17resource-specific Fixed Resource Requirement, or a Fixed
18Resource Requirement.
19        (i) Prior to the Base Residual Auction of PJM
20    Interconnection, LLC for the procurement of capacity for
21    the delivery year commencing June 1, 2023, each such
22    electric utility shall make timely written notification to
23    PJM Interconnection, LLC, or its successor, that it is
24    electing the Fixed Resource Requirement Alternative under
25    the Reliability Assurance Agreement of PJM
26    Interconnection, LLC, or its successor, by which the

 

 

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1    electric utility will procure its Unforced Capacity
2    Obligation for the delivery year commencing June 1, 2023,
3    and ending with the delivery year commencing June 1, 2032,
4    as prescribed by this subsection (b-5).
5        (ii) Following PJM Interconnection, LLC's, or its
6    successor's, validation of the electric utility's
7    eligibility to participate in the Fixed Resource
8    Requirement, the utility shall timely submit its Fixed
9    Resource Requirement Capacity Plan under the requirements
10    set forth in, and as defined by, the Reliability Assurance
11    Agreement of PJM Interconnection, LLC, or its successor, as
12    the Agreement may be updated from time to time. The utility
13    shall timely update its Plan on an annual basis, as
14    required by the Agreement. The utility's submission of its
15    Fixed Resource Requirement Capacity Plan, and updates
16    thereto, under this paragraph (1) and the Agreement shall
17    be consistent with the results of the Illinois Power
18    Agency's procurement or procurements of capacity for the
19    applicable delivery year.
20        (iii) For purposes of this subsection (b-5), "Agency",
21    "bundled clean capacity", "clean energy resources", "zero
22    emission credit", and "zero emission facility" shall have
23    the meanings set forth in Section 1-10 of the Illinois
24    Power Agency Act. "Applicable Fixed Resource Requirement
25    Service Area" shall have the meaning set forth in
26    subsection (a) of Section 1-75 of the Illinois Power Agency

 

 

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1    Act. "Obligation Peak Load" shall have the meaning set
2    forth in PJM Manual 18: PJM Capacity Market, of PJM
3    Interconnection, LLC, or its successor, as such Manual may
4    be updated from time to time. "Fixed Resource Requirement
5    Alternative", "Fixed Resource Requirement Capacity Plan",
6    "Fixed Resource Requirement Service Area", "Load Serving
7    Entities", "Locational Deliverability Area", "Open Access
8    Transmission Tariff", and "Unforced Capacity Obligation"
9    shall have the meanings set forth in the Reliability
10    Assurance Agreement of PJM Interconnection, LLC, or its
11    successor, as that Agreement may be updated from time to
12    time.
13    (2)(i) The Agency shall prepare capacity procurement plans
14and conduct capacity procurement events to procure capacity to
15satisfy the Unforced Capacity Obligation attributable to the
16electric load of all of the retail customers of electric
17utilities that serve at least 3,000,000 retail customers in
18this State and that are located in the Applicable Fixed
19Resource Requirement Service Area. This obligation shall
20commence with the procurement of capacity for the delivery year
21beginning June 1, 2023, and shall require that the Agency hold
22one or more procurement events no later than January 31, 2020
23to procure capacity for that delivery year. Except as provided
24in paragraph (1), the Agency's obligation to procure capacity
25shall continue in force and effect for each delivery year
26thereafter until the obligation terminates with the delivery

 

 

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1year commencing June 1, 2032. To the extent practicable, the
2procurements should be conducted in conjunction with the other
3procurement processes and events set forth in this Section. If
4the effective date of this amendatory Act of the 101st General
5Assembly would make coordination with other procurement
6planning, processes, and events impracticable for the initial
7capacity procurement to be held under this subsection (b-5),
8then the Agency is authorized to conduct a separate procurement
9process and events no later than January 2020 to procure
10capacity for the delivery year commencing June 1, 2023, or as
11required to meet PJM requirements.
12    (ii) The capacity procured for the delivery year commencing
13June 1, 2023 shall include at least 55% of the applicable
14electric utility's 2018 peak of unforced bundled clean
15capacity.
16    If the Agency is unable to procure contracts for bundled
17clean capacity in the full amounts specified in this
18subparagraph (ii), then the Agency shall procure the additional
19capacity as is necessary to satisfy its Unforced Capacity
20Obligations.
21    (3) Capacity resources are eligible to participate in the
22capacity procurements conducted by the Agency pursuant to this
23subsection (b-5) provided that they meet all applicable
24requirements related to participating in a Fixed Resource
25Requirement as set forth in the approved Fixed Resource
26Requirement Plan, Reliability Assurance Agreement, and any

 

 

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1other requirements of PJM Interconnection LLC, or its
2successor, as that Plan and Agreement may be updated from time
3to time.
4    The owner of any electric generating unit or resource that
5participates in a capacity procurement conducted under this
6subsection (b-5) must commit to pay any fees assessed by the
7Agency to recover the Agency's costs of conducting the
8procurement events and any related activities.
9    (4) Clean energy resources that satisfy the requirements of
10this subsection (b-5) may offer their bundled clean capacity
11into the bundled clean capacity procurements conducted by the
12Agency to satisfy the requirements of subparagraph (ii) of
13paragraph (2). Bundled clean capacity selection shall be based
14on the following:
15        (i) For the delivery year commencing June 1, 2023, the
16    Agency shall procure bundled clean capacity from clean
17    capacity from the following clean energy resources, unless
18    such resource has notified the Agency that it wishes to opt
19    out of the procurement: (A) resources that have contracted
20    to sell zero emission credits and (B) renewable resources
21    that have contracted to sell renewable energy credits
22    through Agency procurements prior to the date of this
23    amendatory Act.
24        For the delivery year commencing June 1, 2023, the
25    Agency shall procure bundled clean capacity from
26    additional clean energy resources, based on the following

 

 

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1    public interest criteria, as well as price. The public
2    interest criteria include, but are not limited to,
3    minimizing carbon dioxide emissions that result from
4    electricity consumed in Illinois and minimizing sulfur
5    dioxide, nitrogen oxide, and particulate matter emissions
6    that adversely affect the citizens of this State.
7        (ii) The Agency shall conduct additional clean
8    capacity procurements for delivery years commencing after
9    June 1, 2023. The Agency shall procure all bundled clean
10    capacity from renewable resources that are capable of
11    meeting the Fixed Resource Requirements for a utility that
12    serves at least 3,000,000 customers in Illinois, and has
13    contracted to sell renewable energy credits through Agency
14    procurements conducted after the effective date of this
15    amendatory Act of the 101st General Assembly, subject to
16    the customer protection mechanisms in paragraph (5),
17    unless such resource has notified the Agency that it wishes
18    to opt out of the procurement.
19        (iii) The price for all bundled clean capacity from
20    selected clean energy resources in the initial capacity
21    procurement that do not separately receive payment for zero
22    emission credits under subsection (d-5) of Section 1-75 of
23    the Illinois Power Agency Act and that have not separately
24    received payment for renewable energy credits prior to the
25    effective date of this amendatory Act of the 101st General
26    Assembly, shall be the resource's offer price, expressed on

 

 

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1    a dollar per megawatt-day basis, and subject to the
2    customer protection mechanisms in paragraph (5).
3        Resources that opt to sell capacity when executing
4    contracts to sell renewable energy credits through Agency
5    procurements after the effective date of this amendatory
6    Act of the 101st General Assembly shall be paid the
7    weighted average price of selected bundled clean capacity
8    offers in the initial capacity procurement for the delivery
9    year commencing June 1, 2023, expressed on a dollar per
10    megawatt-day basis, and subject to the customer protection
11    mechanisms in paragraph (5), as applicable.
12        Renewable resources that have sold renewable energy
13    credits prior to the effective date of this amendatory Act
14    of the 101st General Assembly, shall receive the price from
15    the Base Residual Auction or its successor, for the
16    applicable utility zone as determined by PJM
17    Interconnection, LLC or its successor.
18        Clean energy resources that have sold zero emission
19    credits shall receive the price from the Base Residual
20    Auction or its successor, for the applicable utility zone
21    as determined by PJM Interconnection, LLC or its successor,
22    for the delivery year commencing June 1, 2023 and
23    continuing through the delivery year commencing June 1,
24    2026. For the delivery year commencing June 1, 2027 and
25    thereafter, the resource shall be paid the weighted average
26    price of selected bundled clean capacity offers in the

 

 

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1    procurement for the delivery year commencing June 1, 2023,
2    expressed on a dollar per megawatt-day basis, and subject
3    to customer protection mechanisms in paragraph (5), as
4    applicable.
5    (5) Customer protections and prudence review.
6        (i) Clean energy resources shall be subject to a bid
7    cap.
8        (ii) Clean capacity resources shall be cost effective.
9    Payments to procured bundled clean capacity resources
10    shall be subject to a cap.
11        (iii) The sum of total capacity costs plus projected
12    energy costs for each delivery year commencing June 1, 2023
13    through the delivery year commencing June 1, 2032, for the
14    Applicable Fixed Resource Requirement Service Area shall
15    be a minimum of a fixed percentage less than the capacity
16    costs plus energy costs for the Locational Deliverability
17    Area for the delivery year commencing June 1, 2018,
18    adjusted for inflation beginning with the delivery year
19    commencing June 1, 2024.
20    For purposes of this subsection (b-5), "total capacity
21costs" includes all capacity and bundled clean capacity
22procured for the Applicable Fixed Resource Requirement Service
23Area for a given delivery year pursuant to procurements
24conducted under this subsection (b-5).
25    (6) The capacity procurement plans described in this
26subsection (b-5) and approved by the Commission shall address

 

 

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1load forecasting, billing, and settlement as follows:
2        (i) The plan shall identify whether PJM
3    Interconnection, LLC or the electric utility for which the
4    capacity is being procured shall serve as the administrator
5    for billing and settlement purposes. PJM Interconnection,
6    LLC, or its successor, shall be given the right of first
7    refusal to serve as the administrator for billing and
8    settlement purposes. The administrator for billing and
9    settlement purposes shall perform its role in a
10    competitively neutral manner among all Load Serving
11    Entities.
12        (ii) Electric utilities subject to the requirements of
13    this subsection (b-5) shall forecast the capacity
14    requirements to be covered by the procurement.
15    (7) No later than 45 days after the effective date of this
16amendatory Act of the 101st General Assembly, the Agency shall
17publish its proposed capacity procurement plan for the delivery
18year commencing June 1, 2023. The plan shall be consistent with
19the provisions of this subsection (b-5) and shall describe in
20detail how each public interest factor shall be considered and
21weighted in the bid selection process to ensure that the public
22interest criteria are applied to the procurement and given full
23effect.
24    Upon publishing of the capacity procurement plan, copies of
25the plan shall be posted and made publicly available on the
26Illinois Power Agency's website. All interested parties shall

 

 

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1have 10 days following the date of posting to provide comment
2to the Agency on the plan. All comments shall be posted to the
3Agency's website. Following the end of the comment period, but
4no more than 60 days later than the effective date of this
5amendatory Act of the 101st General Assembly, the Agency shall
6revise the plan as necessary based on the comments received and
7file its capacity procurement plan with the Commission.
8    If the Commission determines that the plan will result in
9the procurement of capacity consistent with the requirements of
10this subsection (b-5), then the Commission shall, after notice
11and hearing, but no later than 45 days after the Illinois Power
12Agency filed the plan, approve the plan or approve with
13modification.
14    Those capacity procurement plans applicable to delivery
15years commencing after June 1, 2023, shall be published, filed,
16and approved consistent with the timelines and dates set forth
17in subsection (d).
18    (8) The Illinois Power Agency shall procure contracts for
19capacity as required under this subsection (b-5) pursuant to
20the procurement events described in paragraph (2), and the
21results of each procurement event shall be subject to approval
22by the Commission. Upon Commission approval of the results of a
23procurement event, the electric utility shall enter into
24binding contractual arrangements with the winning suppliers.
25Contracts for capacity shall conform to any terms and
26conditions established by PJM Interconnection, LLC, or its

 

 

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1successor, for a Fixed Resource Requirement Capacity Plan.
2    Bundled clean capacity contracts for renewable resources
3that have executed contracts to sell renewable energy credits
4through Agency procurements after the effective date of this
5amendatory Act shall have a term of 10 years unless the
6electric utility that serves at least 3,000,000 retail
7customers in this State is no longer operating pursuant to a
8Fixed Resource Requirement election. Other contracts for
9capacity under this subsection (b-5) shall terminate at the end
10of the delivery year commencing June 1, 2032, or the date upon
11which any federal authorization to operate the clean energy
12resource expires, whichever is earlier.
13    (9) It is the intent of this subsection (b-5) that the
14Agency's and the Commission's implementation of this
15subsection (b-5), including, but not limited to, the timing and
16number of procurement events and the duration of contracts,
17shall conform, at a minimum, to any applicable requirements of
18the Open Access Transmission Tariff, Reliability Assurance
19Agreement, Operating Agreement, and Capacity Market Manual of
20PJM Interconnection LLC, or its successor, as such Tariff,
21Agreements, and Manuals may be changed, replaced, or superseded
22from time to time, that are necessary for Load Serving Entities
23to exercise and implement the Fixed Resource Requirement
24Alternative capacity procurement option, or a successor
25capacity procurement mechanism. Notwithstanding anything to
26the contrary, the Agency and the Commission shall have the

 

 

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1authority to take all steps necessary to implement this
2subsection (b-5) consistent with applicable federal tariffs,
3and as those tariffs may be changed, replaced, or superseded
4from time to time, to procure capacity for the electric load of
5all retail customers of electric utilities subject to the
6requirements of this subsection (b-5).
7    (c) The procurement process set forth in Section 1-75 of
8the Illinois Power Agency Act and subsection (e) of this
9Section shall be administered by a procurement administrator
10and monitored by a procurement monitor.
11        (1) The procurement administrator shall:
12            (i) design the final procurement process in
13        accordance with Section 1-75 of the Illinois Power
14        Agency Act and subsection (e) of this Section following
15        Commission approval of the procurement plan;
16            (ii) develop benchmarks in accordance with
17        subsection (e)(3) to be used to evaluate bids; these
18        benchmarks shall be submitted to the Commission for
19        review and approval on a confidential basis prior to
20        the procurement event;
21            (iii) serve as the interface between the electric
22        utility and suppliers;
23            (iv) manage the bidder pre-qualification and
24        registration process;
25            (v) obtain the electric utilities' agreement to
26        the final form of all supply contracts and credit

 

 

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1        collateral agreements;
2            (vi) administer the request for proposals process;
3            (vii) have the discretion to negotiate to
4        determine whether bidders are willing to lower the
5        price of bids that meet the benchmarks approved by the
6        Commission; any post-bid negotiations with bidders
7        shall be limited to price only and shall be completed
8        within 24 hours after opening the sealed bids and shall
9        be conducted in a fair and unbiased manner; in
10        conducting the negotiations, there shall be no
11        disclosure of any information derived from proposals
12        submitted by competing bidders; if information is
13        disclosed to any bidder, it shall be provided to all
14        competing bidders;
15            (viii) maintain confidentiality of supplier and
16        bidding information in a manner consistent with all
17        applicable laws, rules, regulations, and tariffs;
18            (ix) submit a confidential report to the
19        Commission recommending acceptance or rejection of
20        bids;
21            (x) notify the utility of contract counterparties
22        and contract specifics; and
23            (xi) administer related contingency procurement
24        events.
25        (2) The procurement monitor, who shall be retained by
26    the Commission, shall:

 

 

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1            (i) monitor interactions among the procurement
2        administrator, suppliers, and utility;
3            (ii) monitor and report to the Commission on the
4        progress of the procurement process;
5            (iii) provide an independent confidential report
6        to the Commission regarding the results of the
7        procurement event;
8            (iv) assess compliance with the procurement plans
9        approved by the Commission for each utility that on
10        December 31, 2005 provided electric service to at least
11        100,000 customers in Illinois and for each small
12        multi-jurisdictional utility that on December 31, 2005
13        served less than 100,000 customers in Illinois;
14            (v) preserve the confidentiality of supplier and
15        bidding information in a manner consistent with all
16        applicable laws, rules, regulations, and tariffs;
17            (vi) provide expert advice to the Commission and
18        consult with the procurement administrator regarding
19        issues related to procurement process design, rules,
20        protocols, and policy-related matters; and
21            (vii) consult with the procurement administrator
22        regarding the development and use of benchmark
23        criteria, standard form contracts, credit policies,
24        and bid documents.
25    (d) Except as provided in subsection (j), the planning
26process shall be conducted as follows:

 

 

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

 

 

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1    plan. All comments submitted to the Agency shall be
2    specific, supported by data or other detailed analyses,
3    and, if objecting to all or a portion of the procurement
4    plan, accompanied by specific alternative wording or
5    proposals. All comments shall be posted on the Agency's and
6    Commission's websites. During this 30-day comment period,
7    the Agency shall hold at least one public hearing within
8    each utility's service area for the purpose of receiving
9    public comment on the procurement plan. Within 14 days
10    following the end of the 30-day review period, the Agency
11    shall revise the procurement plan as necessary based on the
12    comments received and file the procurement plan with the
13    Commission and post the procurement plan on the websites.
14        (3) Within 5 days after the filing of the procurement
15    plan, any person objecting to the procurement plan shall
16    file an objection with the Commission. Within 10 days after
17    the filing, the Commission shall determine whether a
18    hearing is necessary. The Commission shall enter its order
19    confirming or modifying the procurement plan within 90 days
20    after the filing of the procurement plan by the Illinois
21    Power Agency.
22        (4) The Commission shall approve the procurement plan,
23    including expressly the forecast used in the procurement
24    plan, if the Commission determines that it will ensure
25    adequate, reliable, affordable, efficient, and
26    environmentally sustainable electric service at the lowest

 

 

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1    total cost over time, taking into account any benefits of
2    price stability.
3    (e) The procurement process shall include each of the
4following components:
5        (1) Solicitation, pre-qualification, and registration
6    of bidders. The procurement administrator shall
7    disseminate information to potential bidders to promote a
8    procurement event, notify potential bidders that the
9    procurement administrator may enter into a post-bid price
10    negotiation with bidders that meet the applicable
11    benchmarks, provide supply requirements, and otherwise
12    explain the competitive procurement process. In addition
13    to such other publication as the procurement administrator
14    determines is appropriate, this information shall be
15    posted on the Illinois Power Agency's and the Commission's
16    websites. The procurement administrator shall also
17    administer the prequalification process, including
18    evaluation of credit worthiness, compliance with
19    procurement rules, and agreement to the standard form
20    contract developed pursuant to paragraph (2) of this
21    subsection (e). The procurement administrator shall then
22    identify and register bidders to participate in the
23    procurement event.
24        (2) Standard contract forms and credit terms and
25    instruments. The procurement administrator, in
26    consultation with the utilities, the Commission, and other

 

 

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1    interested parties and subject to Commission oversight,
2    shall develop and provide standard contract forms for the
3    supplier contracts that meet generally accepted industry
4    practices. Standard credit terms and instruments that meet
5    generally accepted industry practices shall be similarly
6    developed. The procurement administrator shall make
7    available to the Commission all written comments it
8    receives on the contract forms, credit terms, or
9    instruments. If the procurement administrator cannot reach
10    agreement with the applicable electric utility as to the
11    contract terms and conditions, the procurement
12    administrator must notify the Commission of any disputed
13    terms and the Commission shall resolve the dispute. The
14    terms of the contracts shall not be subject to negotiation
15    by winning bidders, and the bidders must agree to the terms
16    of the contract in advance so that winning bids are
17    selected solely on the basis of price.
18        (3) Establishment of a market-based price benchmark.
19    As part of the development of the procurement process, the
20    procurement administrator, in consultation with the
21    Commission staff, Agency staff, and the procurement
22    monitor, shall establish benchmarks for evaluating the
23    final prices in the contracts for each of the products that
24    will be procured through the procurement process. The
25    benchmarks shall be based on price data for similar
26    products for the same delivery period and same delivery

 

 

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1    hub, or other delivery hubs after adjusting for that
2    difference. The price benchmarks may also be adjusted to
3    take into account differences between the information
4    reflected in the underlying data sources and the specific
5    products and procurement process being used to procure
6    power for the Illinois utilities. The benchmarks shall be
7    confidential but shall be provided to, and will be subject
8    to Commission review and approval, prior to a procurement
9    event.
10        (4) Request for proposals competitive procurement
11    process. The procurement administrator shall design and
12    issue a request for proposals to supply electricity in
13    accordance with each utility's procurement plan, as
14    approved by the Commission. The request for proposals shall
15    set forth a procedure for sealed, binding commitment
16    bidding with pay-as-bid settlement, and provision for
17    selection of bids on the basis of price.
18        (5) A plan for implementing contingencies in the event
19    of supplier default or failure of the procurement process
20    to fully meet the expected load requirement due to
21    insufficient supplier participation, Commission rejection
22    of results, or any other cause.
23            (i) Event of supplier default: In the event of
24        supplier default, the utility shall review the
25        contract of the defaulting supplier to determine if the
26        amount of supply is 200 megawatts or greater, and if

 

 

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1        there are more than 60 days remaining of the contract
2        term. If both of these conditions are met, and the
3        default results in termination of the contract, the
4        utility shall immediately notify the Illinois Power
5        Agency that a request for proposals must be issued to
6        procure replacement power, and the procurement
7        administrator shall run an additional procurement
8        event. If the contracted supply of the defaulting
9        supplier is less than 200 megawatts or there are less
10        than 60 days remaining of the contract term, the
11        utility shall procure power and energy from the
12        applicable regional transmission organization market,
13        including ancillary services, capacity, and day-ahead
14        or real time energy, or both, for the duration of the
15        contract term to replace the contracted supply;
16        provided, however, that if a needed product is not
17        available through the regional transmission
18        organization market it shall be purchased from the
19        wholesale market.
20            (ii) Failure of the procurement process to fully
21        meet the expected load requirement: If the procurement
22        process fails to fully meet the expected load
23        requirement due to insufficient supplier participation
24        or due to a Commission rejection of the procurement
25        results, the procurement administrator, the
26        procurement monitor, and the Commission staff shall

 

 

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1        meet within 10 days to analyze potential causes of low
2        supplier interest or causes for the Commission
3        decision. If changes are identified that would likely
4        result in increased supplier participation, or that
5        would address concerns causing the Commission to
6        reject the results of the prior procurement event, the
7        procurement administrator may implement those changes
8        and rerun the request for proposals process according
9        to a schedule determined by those parties and
10        consistent with Section 1-75 of the Illinois Power
11        Agency Act and this subsection. In any event, a new
12        request for proposals process shall be implemented by
13        the procurement administrator within 90 days after the
14        determination that the procurement process has failed
15        to fully meet the expected load requirement.
16            (iii) In all cases where there is insufficient
17        supply provided under contracts awarded through the
18        procurement process to fully meet the electric
19        utility's load requirement, the utility shall meet the
20        load requirement by procuring power and energy from the
21        applicable regional transmission organization market,
22        including ancillary services, capacity, and day-ahead
23        or real time energy, or both; provided, however, that
24        if a needed product is not available through the
25        regional transmission organization market it shall be
26        purchased from the wholesale market.

 

 

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1        (6) The procurement process described in this
2    subsection is exempt from the requirements of the Illinois
3    Procurement Code, pursuant to Section 20-10 of that Code.
4    (f) Within 2 business days after opening the sealed bids,
5the procurement administrator shall submit a confidential
6report to the Commission. The report shall contain the results
7of the bidding for each of the products along with the
8procurement administrator's recommendation for the acceptance
9and rejection of bids based on the price benchmark criteria and
10other factors observed in the process. The procurement monitor
11also shall submit a confidential report to the Commission
12within 2 business days after opening the sealed bids. The
13report shall contain the procurement monitor's assessment of
14bidder behavior in the process as well as an assessment of the
15procurement administrator's compliance with the procurement
16process and rules. The Commission shall review the confidential
17reports submitted by the procurement administrator and
18procurement monitor, and shall accept or reject the
19recommendations of the procurement administrator within 2
20business days after receipt of the reports.
21    (g) Within 3 business days after the Commission decision
22approving the results of a procurement event, the utility shall
23enter into binding contractual arrangements with the winning
24suppliers using the standard form contracts; except that the
25utility shall not be required either directly or indirectly to
26execute the contracts if a tariff that is consistent with

 

 

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

 

 

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1the tariffs filed pursuant to subsection (l) of this Section
2and approved by the Commission.
3    (j) Within 60 days following August 28, 2007 (the effective
4date of Public Act 95-481), each electric utility that on
5December 31, 2005 provided electric service to at least 100,000
6customers in Illinois shall prepare and file with the
7Commission an initial procurement plan, which shall conform in
8all material respects to the requirements of the procurement
9plan set forth in subsection (b); provided, however, that the
10Illinois Power Agency Act shall not apply to the initial
11procurement plan prepared pursuant to this subsection. The
12initial procurement plan shall identify the portfolio of power
13and energy products to be procured and delivered for the period
14June 2008 through May 2009, and shall identify the proposed
15procurement administrator, who shall have the same experience
16and expertise as is required of a procurement administrator
17hired pursuant to Section 1-75 of the Illinois Power Agency
18Act. Copies of the procurement plan shall be posted and made
19publicly available on the Commission's website. The initial
20procurement plan may include contracts for renewable resources
21that extend beyond May 2009.
22        (i) Within 14 days following filing of the initial
23    procurement plan, any person may file a detailed objection
24    with the Commission contesting the procurement plan
25    submitted by the electric utility. All objections to the
26    electric utility's plan shall be specific, supported by

 

 

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

 

 

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

 

 

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1this Section shall not be subject to review under, or in any
2way limited by, Section 16-111(i) of this Act. All of the costs
3incurred by the electric utility associated with the purchase
4of zero emission credits in accordance with subsection (d-5) of
5Section 1-75 of the Illinois Power Agency Act and, beginning
6June 1, 2017, all of the costs incurred by the electric utility
7associated with the purchase of renewable energy resources in
8accordance with Sections 1-56 and 1-75 of the Illinois Power
9Agency Act, shall be recovered through the electric utility's
10tariffed charges applicable to all of its retail customers, as
11specified in subsection (k) of Section 16-108 of this Act, and
12shall not be recovered through the electric utility's tariffed
13charges for electric power and energy supply to its eligible
14retail customers.
15    (m) The Commission has the authority to adopt rules to
16carry out the provisions of this Section. For the public
17interest, safety, and welfare, the Commission also has
18authority to adopt rules to carry out the provisions of this
19Section on an emergency basis immediately following August 28,
202007 (the effective date of Public Act 95-481).
21    (n) Notwithstanding any other provision of this Act, any
22affiliated electric utilities that submit a single procurement
23plan covering their combined needs may procure for those
24combined needs in conjunction with that plan, and may enter
25jointly into power supply contracts, purchases, and other
26procurement arrangements, and allocate capacity and energy and

 

 

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

 

 

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1requirements. Cost recovery for facilities included in the
2utility's procurement plan pursuant to this subsection shall
3not be subject to review under or in any way limited by the
4provisions of Section 16-111(i) of this Act. Nothing in this
5Section is intended to prohibit a utility from filing for a
6fuel adjustment clause as is otherwise permitted under Section
79-220 of this Act.
8    (q) If the Illinois Power Agency filed with the Commission,
9under Section 16-111.5 of this Act, its proposed procurement
10plan for the period commencing June 1, 2017, and the Commission
11has not yet entered its final order approving the plan on or
12before the effective date of this amendatory Act of the 99th
13General Assembly, then the Illinois Power Agency shall file a
14notice of withdrawal with the Commission, after the effective
15date of this amendatory Act of the 99th General Assembly, to
16withdraw the proposed procurement of renewable energy
17resources to be approved under the plan, other than the
18procurement of renewable energy credits from distributed
19renewable energy generation devices using funds previously
20collected from electric utilities' retail customers that take
21service pursuant to electric utilities' hourly pricing tariff
22or tariffs and, for an electric utility that serves less than
23100,000 retail customers in the State, other than the
24procurement of renewable energy credits from distributed
25renewable energy generation devices. Upon receipt of the
26notice, the Commission shall enter an order that approves the

 

 

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1withdrawal of the proposed procurement of renewable energy
2resources from the plan. The initially proposed procurement of
3renewable energy resources shall not be approved or be the
4subject of any further hearing, investigation, proceeding, or
5order of any kind.
6    This amendatory Act of the 99th General Assembly preempts
7and supersedes any order entered by the Commission that
8approved the Illinois Power Agency's procurement plan for the
9period commencing June 1, 2017, to the extent it is
10inconsistent with the provisions of this amendatory Act of the
1199th General Assembly. To the extent any previously entered
12order approved the procurement of renewable energy resources,
13the portion of that order approving the procurement shall be
14void, other than the procurement of renewable energy credits
15from distributed renewable energy generation devices using
16funds previously collected from electric utilities' retail
17customers that take service under electric utilities' hourly
18pricing tariff or tariffs and, for an electric utility that
19serves less than 100,000 retail customers in the State, other
20than the procurement of renewable energy credits for
21distributed renewable energy generation devices.
22(Source: P.A. 99-906, eff. 6-1-17.)
 
23    (220 ILCS 5/16-115)
24    Sec. 16-115. Certification of alternative retail electric
25suppliers.

 

 

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1    (a) Any alternative retail electric supplier must obtain a
2certificate of service authority from the Commission in
3accordance with this Section before serving any retail customer
4or other user located in this State. An alternative retail
5electric supplier may request, and the Commission may grant, a
6certificate of service authority for the entire State or for a
7specified geographic area of the State.
8    (b) An alternative retail electric supplier seeking a
9certificate of service authority shall file with the Commission
10a verified application containing information showing that the
11applicant meets the requirements of this Section. The
12alternative retail electric supplier shall publish notice of
13its application in the official State newspaper within 10 days
14following the date of its filing. No later than 45 days after
15the application is properly filed with the Commission, and such
16notice is published, the Commission shall issue its order
17granting or denying the application.
18    (c) An application for a certificate of service authority
19shall identify the area or areas in which the applicant intends
20to offer service and the types of services it intends to offer.
21Applicants that seek to serve residential or small commercial
22retail customers within a geographic area that is smaller than
23an electric utility's service area shall submit evidence
24demonstrating that the designation of this smaller area does
25not violate Section 16-115A. An applicant that seeks to serve
26residential or small commercial retail customers may state in

 

 

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1its application for certification any limitations that will be
2imposed on the number of customers or maximum load to be
3served.
4    (d) The Commission shall grant the application for a
5certificate of service authority if it makes the findings set
6forth in this subsection based on the verified application and
7such other information as the applicant may submit:
8        (1) That the applicant possesses sufficient technical,
9    financial and managerial resources and abilities to
10    provide the service for which it seeks a certificate of
11    service authority. In determining the level of technical,
12    financial and managerial resources and abilities which the
13    applicant must demonstrate, the Commission shall consider
14    (i) the characteristics, including the size and financial
15    sophistication, of the customers that the applicant seeks
16    to serve, and (ii) whether the applicant seeks to provide
17    electric power and energy using property, plant and
18    equipment which it owns, controls or operates;
19        (2) That the applicant will comply with all applicable
20    federal, State, regional and industry rules, policies,
21    practices and procedures for the use, operation, and
22    maintenance of the safety, integrity and reliability, of
23    the interconnected electric transmission system;
24        (3) That the applicant will only provide service to
25    retail customers in an electric utility's service area that
26    are eligible to take delivery services under this Act;

 

 

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1        (4) That the applicant will comply with such
2    informational or reporting requirements as the Commission
3    may by rule establish and provide the information required
4    by Section 16-112. Any data related to contracts for the
5    purchase and sale of electric power and energy shall be
6    made available for review by the Staff of the Commission on
7    a confidential and proprietary basis and only to the extent
8    and for the purposes which the Commission determines are
9    reasonably necessary in order to carry out the purposes of
10    this Act;
11        (5) That the applicant will procure renewable energy
12    resources in accordance with Section 16-115D of this Act,
13    and will source electricity from clean coal facilities, as
14    defined in Section 1-10 of the Illinois Power Agency Act,
15    in amounts at least equal to the percentages set forth in
16    subsections (c) and (d) of Section 1-75 of the Illinois
17    Power Agency Act. For purposes of this Section:
18            (i) (Blank);
19            (ii) (Blank);
20            (iii) the required sourcing of electricity
21        generated by clean coal facilities, other than the
22        initial clean coal facility, shall be limited to the
23        amount of electricity that can be procured or sourced
24        at a price at or below the benchmarks approved by the
25        Commission each year in accordance with item (1) of
26        subsection (c) and items (1) and (5) of subsection (d)

 

 

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1        of Section 1-75 of the Illinois Power Agency Act;
2            (iv) all alternative retail electric suppliers
3        shall execute a sourcing agreement to source
4        electricity from the initial clean coal facility, on
5        the terms set forth in paragraphs (3) and (4) of
6        subsection (d) of Section 1-75 of the Illinois Power
7        Agency Act, except that in lieu of the requirements in
8        subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
9        paragraph (3) of that subsection (d), the applicant
10        shall execute one or more of the following:
11                (1) if the sourcing agreement is a power
12            purchase agreement, a contract with the initial
13            clean coal facility to purchase in each hour an
14            amount of electricity equal to all clean coal
15            energy made available from the initial clean coal
16            facility during such hour, which the utilities are
17            not required to procure under the terms of
18            subsection (d) of Section 1-75 of the Illinois
19            Power Agency Act, multiplied by a fraction, the
20            numerator of which is the alternative retail
21            electric supplier's retail market sales of
22            electricity (expressed in kilowatthours sold) in
23            the State during the prior calendar month and the
24            denominator of which is the total sales of
25            electricity (expressed in kilowatthours sold) in
26            the State by alternative retail electric suppliers

 

 

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1            during such prior month that are subject to the
2            requirements of this paragraph (5) of subsection
3            (d) of this Section and subsection (d) of Section
4            1-75 of the Illinois Power Agency Act plus the
5            total sales of electricity (expressed in
6            kilowatthours sold) by utilities outside of their
7            service areas during such prior month, pursuant to
8            subsection (c) of Section 16-116 of this Act; or
9                (2) if the sourcing agreement is a contract for
10            differences, a contract with the initial clean
11            coal facility in each hour with respect to an
12            amount of electricity equal to all clean coal
13            energy made available from the initial clean coal
14            facility during such hour, which the utilities are
15            not required to procure under the terms of
16            subsection (d) of Section 1-75 of the Illinois
17            Power Agency Act, multiplied by a fraction, the
18            numerator of which is the alternative retail
19            electric supplier's retail market sales of
20            electricity (expressed in kilowatthours sold) in
21            the State during the prior calendar month and the
22            denominator of which is the total sales of
23            electricity (expressed in kilowatthours sold) in
24            the State by alternative retail electric suppliers
25            during such prior month that are subject to the
26            requirements of this paragraph (5) of subsection

 

 

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1            (d) of this Section and subsection (d) of Section
2            1-75 of the Illinois Power Agency Act plus the
3            total sales of electricity (expressed in
4            kilowatthours sold) by utilities outside of their
5            service areas during such prior month, pursuant to
6            subsection (c) of Section 16-116 of this Act;
7            (v) if, in any year after the first year of
8        commercial operation, the owner of the clean coal
9        facility fails to demonstrate to the Commission that
10        the initial clean coal facility captured and
11        sequestered at least 50% of the total carbon emissions
12        that the facility would otherwise emit or that
13        sequestration of emissions from prior years has
14        failed, resulting in the release of carbon into the
15        atmosphere, the owner of the facility must offset
16        excess emissions. Any such carbon offsets must be
17        permanent, additional, verifiable, real, located
18        within the State of Illinois, and legally and
19        practicably enforceable. The costs of any such offsets
20        that are not recoverable shall not exceed $15 million
21        in any given year. No costs of any such purchases of
22        carbon offsets may be recovered from an alternative
23        retail electric supplier or its customers. All carbon
24        offsets purchased for this purpose and any carbon
25        emission credits associated with sequestration of
26        carbon from the facility must be permanently retired.

 

 

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1        The initial clean coal facility shall not forfeit its
2        designation as a clean coal facility if the facility
3        fails to fully comply with the applicable carbon
4        sequestration requirements in any given year, provided
5        the requisite offsets are purchased. However, the
6        Attorney General, on behalf of the People of the State
7        of Illinois, may specifically enforce the facility's
8        sequestration requirement and the other terms of this
9        contract provision. Compliance with the sequestration
10        requirements and offset purchase requirements that
11        apply to the initial clean coal facility shall be
12        reviewed annually by an independent expert retained by
13        the owner of the initial clean coal facility, with the
14        advance written approval of the Attorney General;
15            (vi) The Commission shall, after notice and
16        hearing, revoke the certification of any alternative
17        retail electric supplier that fails to execute a
18        sourcing agreement with the initial clean coal
19        facility as required by item (5) of subsection (d) of
20        this Section. The sourcing agreements with this
21        initial clean coal facility shall be subject to both
22        approval of the initial clean coal facility by the
23        General Assembly and satisfaction of the requirements
24        of item (4) of subsection (d) of Section 1-75 of the
25        Illinois Power Agency Act, and shall be executed within
26        90 days after any such approval by the General

 

 

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1        Assembly. The Commission shall not accept an
2        application for certification from an alternative
3        retail electric supplier that has lost certification
4        under this subsection (d), or any corporate affiliate
5        thereof, for at least one year from the date of
6        revocation;
7        (6) With respect to an applicant that seeks to serve
8    residential or small commercial retail customers, that the
9    area to be served by the applicant and any limitations it
10    proposes on the number of customers or maximum amount of
11    load to be served meet the provisions of Section 16-115A,
12    provided, that the Commission can extend the time for
13    considering such a certificate request by up to 90 days,
14    and can schedule hearings on such a request;
15        (7) That the applicant meets the requirements of
16    subsection (a) of Section 16-128; and
17        (8) That the applicant is not the subject of any
18    lawsuit filed in a court of law or formal complaint filed
19    with a regulatory agency alleging fraud, deception, or
20    unfair marketing practices or other similar allegations
21    identifying the name, case number, and jurisdiction of each
22    such lawsuit or complaint. For the purposes of this
23    paragraph, "formal complaint" includes only those
24    complaints that seek a binding determination from a State
25    or federal regulatory body;
26        (9) That the applicant shall continue to comply with

 

 

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1    requirements for certification stated in Section 16-115;
2        (10) That the applicant shall execute and maintain a
3    license or permit bond issued by a qualifying surety or
4    insurance company authorized to transact business in this
5    State in favor of the people of this State. The amount of
6    the bond shall equal $30,000 if the applicant seeks to
7    serve only nonresidential retail customers with maximum
8    electrical demands of one megawatt or more, $150,000 if the
9    applicant seeks to serve only nonresidential retail
10    customers with annual electrical consumption greater than
11    15,000kWh, or $500,000 if the applicant seeks to serve all
12    eligible customers. An applicant is required to submit an
13    additional $500,000 bond if the applicant intends to market
14    to a residential area using in-person solicitations. The
15    bond shall be conditioned upon the full and faithful
16    performance of all duties and obligations of the applicant
17    as an alternative retail electric supplier and shall be
18    valid for a period of not less than one year. The cost of
19    the bond shall be paid by the applicant. The applicant
20    shall file a copy of this bond, with a notarized
21    verification page from the issuer, as part of its
22    application for certification under 83 Ill. Adm. Code 451;
23    and
24        (11) (8) That the applicant will comply with all other
25    applicable laws and regulations.
26    The Commission may deny, with prejudice, an application in

 

 

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1which the applicant repeatedly fails to provide the Commission
2with information sufficient for the Commission to grant the
3application.
4    (d-5) (Blank).
5    (e) A retail customer that owns a cogeneration or
6self-generation facility and that seeks certification only to
7provide electric power and energy from such facility to retail
8customers at separate locations which customers are both (i)
9owned by, or a subsidiary or other corporate affiliate of, such
10applicant and (ii) eligible for delivery services, shall be
11granted a certificate of service authority upon filing an
12application and notifying the Commission that it has entered
13into an agreement with the relevant electric utilities pursuant
14to Section 16-118. Provided, however, that if the retail
15customer owning such cogeneration or self-generation facility
16would not be charged a transition charge due to the exemption
17provided under subsection (f) of Section 16-108 prior to the
18certification, and the retail customers at separate locations
19are taking delivery services in conjunction with purchasing
20power and energy from the facility, the retail customer on
21whose premises the facility is located shall not thereafter be
22required to pay transition charges on the power and energy that
23such retail customer takes from the facility.
24    (f) The Commission shall have the authority to promulgate
25rules and regulations to carry out the provisions of this
26Section. On or before May 1, 1999, the Commission shall adopt a

 

 

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1rule or rules applicable to the certification of those
2alternative retail electric suppliers that seek to serve only
3nonresidential retail customers with maximum electrical
4demands of one megawatt or more which shall provide for (i)
5expedited and streamlined procedures for certification of such
6alternative retail electric suppliers and (ii) specific
7criteria which, if met by any such alternative retail electric
8supplier, shall constitute the demonstration of technical,
9financial and managerial resources and abilities to provide
10service required by subsection (d) (1) of this Section, such as
11a requirement to post a bond or letter of credit, from a
12responsible surety or financial institution, of sufficient
13size for the nature and scope of the services to be provided;
14demonstration of adequate insurance for the scope and nature of
15the services to be provided; and experience in providing
16similar services in other jurisdictions.
17    (g) An alternative retail electric supplier may seek
18confidential treatment for the following information by filing
19an affidavit with the Commission so long as the affidavit meets
20the requirements in this subsection (g):
21        (1) the total annual kilowatt-hours delivered and sold
22    by an alternative retail electric supplier to retail
23    customers within each utility service territory and the
24    total annual kilowatt-hours delivered and sold by an
25    alternative retail electric supplier to retail customers
26    in all utility service territories in the preceding

 

 

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1    calendar year as required by 83 Ill. Adm. Code 451.770;
2        (2) the total peak demand supplied by an alternative
3    retail electric supplier during the previous year in each
4    utility service territory as required by 83 Ill. Adm. Code
5    465.40;
6        (3) a good faith estimate of the amount an alternative
7    retail electric supplier expects to be obliged to pay the
8    utility under single billing tariffs during the next 12
9    months and the amount of any bond or letter of credit used
10    to demonstrate an alternative retail electric supplier's
11    credit worthiness to provide single billing services
12    pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
13    The affidavit must be filed contemporaneously with the
14information for which confidential treatment is sought and must
15clearly state that the affiant seeks confidential treatment
16pursuant to this subsection (g) and the information for which
17confidential treatment is sought must be clearly identified on
18the confidential version of the document filed with the
19Commission. The affidavit must be accompanied by a
20"confidential" and a "public" version of the document or
21documents containing the information for which confidential
22treatment is sought.
23    If the alternative retail electric supplier has met the
24affidavit requirements of this subsection (g), then the
25Commission shall afford confidential treatment to the
26information identified in the affidavit for a period of 2 years

 

 

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1after the date the affidavit is received by the Commission.
2    Nothing in this subsection (g) prevents an alternative
3retail electric supplier from filing a petition with the
4Commission seeking confidential treatment for information
5beyond that identified in this subsection (g) or for
6information contained in other reports or documents filed with
7the Commission.
8    Nothing in this subsection (g) prevents the Commission, on
9its own motion, or any party from filing a formal petition with
10the Commission seeking to reconsider the conferring of
11confidential status on an item of information afforded
12confidential treatment pursuant to this subsection (g).
13    The Commission, on its own motion, may at any time initiate
14a docketed proceeding to investigate the continued
15applicability of this subsection (g) to the information
16contained in items (i), (ii), and (iii) of this subsection (g).
17If, at the end of such investigation, the Commission determines
18that a particular item of information should no longer be
19eligible for the affidavit-based process outlined in this
20subsection (g), the Commission may enter an order to remove
21that item from the list of items eligible for the process set
22forth in this subsection (g). Notwithstanding any such order,
23in the event the Commission makes such a determination, nothing
24in this subsection (g) prevents an alternative retail electric
25supplier desiring confidential treatment for such information
26from filing a formal petition with the Commission seeking

 

 

10100HB2861ham001- 155 -LRB101 07685 RJF 57277 a

1confidential treatment for such information.
2(Source: P.A. 99-332, eff. 8-10-15.)
 
3    (220 ILCS 5/16-115A)
4    Sec. 16-115A. Obligations of alternative retail electric
5suppliers.
6    (a) An alternative retail electric supplier shall:
7        (i) comply with the requirements imposed on public
8    utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
9    8-507 of this Act, to the extent that these Sections have
10    application to the services being offered by the
11    alternative retail electric supplier; and
12        (ii) continue to comply with the requirements for
13    certification stated in subsection (d) of Section 16-115.
14    (b) An alternative retail electric supplier shall obtain
15verifiable authorization from a customer, in a form or manner
16approved by the Commission consistent with Section 2EE of the
17Consumer Fraud and Deceptive Business Practices Act, before the
18customer is switched from another supplier.
19    (c) No alternative retail electric supplier, or electric
20utility other than the electric utility in whose service area a
21customer is located, shall (i) enter into or employ any
22arrangements which have the effect of preventing a retail
23customer with a maximum electrical demand of less than one
24megawatt from having access to the services of the electric
25utility in whose service area the customer is located or (ii)

 

 

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1charge retail customers for such access. This subsection shall
2not be construed to prevent an arms-length agreement between a
3supplier and a retail customer that sets a term of service,
4notice period for terminating service and provisions governing
5early termination through a tariff or contract as allowed by
6Section 16-119.
7    (d) An alternative retail electric supplier that is
8certified to serve residential or small commercial retail
9customers shall not:
10        (1) deny service to a customer or group of customers
11    nor establish any differences as to prices, terms,
12    conditions, services, products, facilities, or in any
13    other respect, whereby such denial or differences are based
14    upon race, gender or income.
15        (2) deny service to a customer or group of customers
16    based on locality nor establish any unreasonable
17    difference as to prices, terms, conditions, services,
18    products, or facilities as between localities.
19    (e) An alternative retail electric supplier shall comply
20with the following requirements with respect to the marketing,
21offering and provision of products or services to residential
22and small commercial retail customers:
23        (i) All marketing materials that offer a price at which
24    a customer may enroll, or that make claims that the
25    alternative retail electric supplier's price will save a
26    customer money, including electronic marketing materials,

 

 

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1    in-person solicitations, and telephone solicitations,
2    shall disclose the prices, terms, and conditions of the
3    products or services that the alternative retail electric
4    supplier is offering or selling to the customer, including
5    the expiration date of the offer, and shall disclose the
6    current electric utility's generally applicable electric
7    utility supply rate that would apply to the customer for
8    the billing period at the time the offer is made and the
9    expiration of that electric utility supply rate. Except
10    that when there has been a recent change to the electric
11    utility supply rate, marketing materials must be updated to
12    reflect the new electric utility supply rate within 30 days
13    of any such change. All marketing materials, including, but
14    not limited to, electronic marketing materials, in-person
15    solicitations, and telephone solicitations, shall include
16    the following statement:
17            "(Name of alternative retail electric supplier) is
18        not the same entity as your electric utility delivery
19        company. You are not required to enroll with (name of
20        alternative retail electric supplier). The electric
21        utility supply rate disclosed herein does not include
22        the current Purchase Electricity Adjustment (PEA) that
23        may increase or decrease your actual electric utility
24        supply rate. For information on the PEA, as well as
25        historical comparison rates for electric utility
26        supply rate and understanding your electric supply

 

 

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1        choices, go to the Illinois Commerce Commission's free
2        website at www.pluginillinois.org.". Any marketing
3        materials which make statements concerning prices,
4        terms and conditions of service shall contain
5        information that adequately discloses the prices,
6        terms and conditions of the products or services that
7        the alternative retail electric supplier is offering
8        or selling to the customer.
9        (ii) Before any customer is switched from another
10    supplier, the alternative retail electric supplier shall
11    give the customer written information that adequately
12    discloses, in plain language, the prices, terms and
13    conditions of the products and services being offered and
14    sold to the customer.
15        (iii) An alternative retail electric supplier shall
16    provide documentation to the Commission and to customers
17    that substantiates any claims made by the alternative
18    retail electric supplier regarding the technologies and
19    fuel types used to generate the electricity offered or sold
20    to customers.
21        (iv) The alternative retail electric supplier shall
22    provide to the customer (1) itemized billing statements
23    that describe the products and services provided to the
24    customer and their prices, and (2) an additional statement,
25    at least annually, that adequately discloses the average
26    monthly prices, and the terms and conditions, of the

 

 

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1    products and services sold to the customer.
2        (v) Beginning July 1, 2019, any rate charged by an
3    alternative retail electric supplier or electric utility
4    other than the electric utility in whose service area a
5    retail customer is located to a customer at the beginning
6    of a contract term or for any renewal term, must be either:
7    (A) unchanged for no less than a term of 4 months; or (B)
8    if a month-to-month variable or time-of-use rate, such rate
9    must be tied to a specific formula that will allow a
10    customer to determine the variable or time-of-use rate, and
11    should be based on the Real Time Locational Based Marginal
12    Price for the zone in which an account is located or a
13    similar publicly available index. The alternative retail
14    electric supplier may include an adder under item (B) that
15    may increase no more than 10% during the term of the
16    contract and which must be explicitly disclosed to the
17    customer.
18        (vi) A customer on a month-to-month variable or
19    time-of-use product shall have the right to terminate his
20    or her contract with the alternative retail electric
21    supplier or electric utility other than the electric
22    utility in whose service area a retail customer is located
23    at any time without any termination fee.
24        (vii) If any component of the formula in a
25    month-to-month variable or time-of-use product is changing
26    at the end of a contract term as provided under an existing

 

 

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1    contract, an alternative retail electric supplier is
2    required to provide a written notice to the customer at
3    least 30 days, but no more than 60 days, prior to the
4    change. Such notice shall include a side-by-side
5    comparison of the current price and the price for the first
6    month of the new formula price.
7        (viii) In addition to complying with the Illinois
8    Automatic Renewal Act, in the case of an automatic renewal
9    of a contract for which the initial term is a fixed price
10    and that changes after the initial term, an alternative
11    retail electric supplier is required to provide a written
12    notice to the customer at least 30 days, but no more than
13    60 days, prior to the end of the initial contract term,
14    which shall include a side-by-side comparison of the
15    current price and the new fixed price if renewing to, or
16    continuing on, a fixed price product.
17        (ix) As of January 1, 2020, a customer enrolled under a
18    new contract shall not be renewed to a variable product. A
19    customer that is renewed to a fixed price product shall
20    have the right to terminate that fixed price product
21    without paying an early termination penalty within 10
22    business days after the date of the first bill on the new
23    rate.
24        (x) Each alternative retail electric supplier shall
25    conduct training for an individual representative engaged
26    in in-person solicitation and telemarketing to a

 

 

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1    residential customer on behalf of that alternative retail
2    electric supplier prior to conducting any such
3    solicitations on the alternative retail electric
4    supplier's behalf. Each alternative retail electric
5    supplier shall submit a copy of its training material to
6    the Commission on an annual basis and the Commission shall
7    have the right to review and require updates to the
8    material. After initial training, each alternative retail
9    electric supplier is required to conduct refresher
10    training for an individual representative every 6 months.
11    (f) An alternative retail electric supplier may limit the
12overall size or availability of a service offering by
13specifying one or more of the following: a maximum number of
14customers, maximum amount of electric load to be served, time
15period during which the offering will be available, or other
16comparable limitation, but not including the geographic
17locations of customers within the area which the alternative
18retail electric supplier is certificated to serve. The
19alternative retail electric supplier shall file the terms and
20conditions of such service offering including the applicable
21limitations with the Commission prior to making the service
22offering available to customers.
23    (g) Nothing in this Section shall be construed as
24preventing an alternative retail electric supplier, which is an
25affiliate of, or which contracts with, (i) an industry or trade
26organization or association, (ii) a membership organization or

 

 

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1association that exists for a purpose other than the purchase
2of electricity, or (iii) another organization that meets
3criteria established in a rule adopted by the Commission, from
4offering through the organization or association services at
5prices, terms and conditions that are available solely to the
6members of the organization or association.
7(Source: P.A. 90-561, eff. 12-16-97.)
 
8    (220 ILCS 5/16-115B)
9    Sec. 16-115B. Commission oversight of services provided by
10alternative retail electric suppliers.
11    (a) The Commission shall have jurisdiction in accordance
12with the provisions of Article X of this Act to entertain and
13dispose of any complaint against any alternative retail
14electric supplier alleging (i) that the alternative retail
15electric supplier has violated or is in nonconformance with any
16applicable provisions of Section 16-115 through Section
1716-115A; (ii) that an alternative retail electric supplier
18serving retail customers having maximum demands of less than
19one megawatt has failed to provide service in accordance with
20the terms of its contract or contracts with such customer or
21customers; (iii) that the alternative retail electric supplier
22has violated or is in non-conformance with the delivery
23services tariff of, or any of its agreements relating to
24delivery services with, the electric utility, municipal
25system, or electric cooperative providing delivery services;

 

 

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1or (iv) that the alternative retail electric supplier has
2violated or failed to comply with the requirements of Sections
38-201 through 8-207, 8-301, 8-505, or 8-507 of this Act as made
4applicable to alternative retail electric suppliers.
5    (b) The Commission shall have authority, after notice and
6hearing held on complaint or on the Commission's own motion:
7        (1) To order an alternative retail electric supplier to
8    cease and desist, or correct, any violation of or
9    non-conformance with the provisions of Section 16-115 or
10    16-115A;
11        (2) To impose financial penalties for violations of or
12    non-conformances with the provisions of Section 16-115 or
13    16-115A, not to exceed (i) $10,000 per occurrence or (ii)
14    $30,000 per day for those violations or non-conformances
15    which continue after the Commission issues a cease and
16    desist order; and
17        (3) To alter, modify, revoke or suspend the certificate
18    of service authority of an alternative retail electric
19    supplier for substantial or repeated violations of or
20    non-conformances with the provisions of Section 16-115 or
21    16-115A.
22    (c) In addition to other powers and authority granted to it
23under this Act, the Commission may require an alternative
24retail electric supplier to enter into a compliance plan if the
25Commission comes into possession of information causing it to
26conclude that an alternative retail electric supplier is

 

 

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1violating this Act or the Commission's rules. The Commission
2may, after concluding such violation, and after notice and
3hearing, enter an order directing the alternative retail
4electric supplier to implement such practices, procedures,
5oversight, or other measures, or refrain from such practices,
6conduct, or activities, as the Commission finds is necessary or
7reasonable to ensure the alternative retail electric
8supplier's compliance with this Act and the Commission's rules.
9Failure by an alternative retail electric supplier to implement
10or comply with a Commission-ordered compliance plan is a
11violation of this Section. The Commission may order a
12compliance plan under such circumstances as in its discretion
13it considers warranted and is not required to order a
14compliance plan prior to taking other enforcement action
15against an alternative retail electric supplier.
16    (d) The Commission shall initiate a proceeding against an
17alternative retail electric supplier for the following
18violations of a compliance plan and require the alternative
19retail electric supplier to show cause why its retail license
20should not be suspended or revoked: (1) misrepresenting that it
21is an electric utility or is part of an electric utility or
22government-approved program (unless part of a municipal
23aggregation plan); (2) misrepresenting the cost or savings of a
24contract; or (3) switching customers without authorization.
25If, after an investigation and hearing by the Commission, an
26alternative retail electric supplier is found to have violated

 

 

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1the compliance plan, the Commission: (A) may impose a financial
2penalty on the alternative retail electricity supplier; or (B)
3if the violation is found to be either intentional or based
4upon gross negligence, shall suspend or revoke the alternative
5retail electric supplier license, and may impose any financial
6penalty authorized by law.
7    (e) An alternative retail electric supplier may appeal any
8suspension or revocation or the imposition of a penalty by the
9Commission. The Commission may reduce the penalty based on the
10following: (1) the nature of the violation found and the
11history of a substantiated complaint or adjudicated violation
12against that alternative retail electric supplier; (2) the
13existence or strength of a compliance and internal monitoring
14program; (3) whether the alternative retail electric supplier
15made a good faith effort to compensate a harmed consumer; and
16(4) other facts or circumstances that the Commission deems
17relevant.
18    (f) Any financial penalty collected from an alternative
19retail electric supplier from an enforcement action shall be
20used to fund the Commission's alternative retail electric
21supplier training, oversight, and enforcement activities.
22    (g) The Commission shall conduct annual mandatory
23compliance training for each alternative retail electric
24supplier for purposes of implementing or reinforcing
25acceptable marketing practices.
26(Source: P.A. 90-561, eff. 12-16-97.)
 

 

 

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1    (220 ILCS 5/16-115C)
2    Sec. 16-115C. Licensure of agents, brokers, and
3consultants engaged in the procurement or sale of retail
4electricity supply for third parties.
5    (a) The purpose of this Section is to adopt licensing and
6code of conduct rules in a competitive retail electricity
7market to protect Illinois consumers from unfair or deceptive
8acts or practices and to provide persons acting as agents,
9brokers, and consultants engaged in the procurement or sale of
10retail electricity supply for third parties with notice of the
11illegality of those acts or practices.
12    (a-5) All third-party sales representatives engaged in the
13marketing of retail electricity supply must, prior to the
14customer signing a contract, disclose that they are not
15employed by the electric utility operating in the applicable
16service territory.
17    (b) For purposes of this Section, "agents, brokers, and
18consultants engaged in the procurement or sale of retail
19electricity supply for third parties" means any person or
20entity that attempts to procure on behalf of or sell retail
21electric service to an electric customer in the State. "Agents,
22brokers, and consultants engaged in the procurement or sale of
23retail electricity supply for third parties" does not include
24the Illinois Power Agency or any of its employees, any entity
25licensed as an alternative retail electric supplier pursuant to

 

 

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183 Ill. Adm. Code 451 offering retail electric service on its
2own behalf, any person acting exclusively on behalf of a single
3alternative retail electric supplier on condition that
4exclusivity is disclosed to any third party contracted in such
5agent capacity, any person acting exclusively on behalf of a
6retail electric supplier on condition that exclusivity is
7disclosed to any third party contracted in such agent capacity,
8any person or entity representing a municipal power agency, as
9defined in Section 11-119.1-3 of the Illinois Municipal Code,
10or any person or entity that is attempting to procure on behalf
11of or sell retail electric service to a third party that has
12aggregate billing demand of all of its affiliated electric
13service accounts in Illinois of greater than 1,500 kW.
14    (c) No person or entity shall act as an agent, broker, or
15consultant engaged in the procurement or sale of retail
16electricity supply for third parties unless that person or
17entity is licensed by the Commission under this Section or is
18offering services on their own behalf under 83 Ill. Adm. Code
19451.
20    (d) The Commission shall create requirements for licensure
21as an agent, broker, or consultant engaged in the procurement
22or sale of retail electricity supply for third parties, which
23shall include all of the following criteria:
24        (1) Technical competence.
25        (2) Managerial competence.
26        (3) Financial responsibility, including the posting of

 

 

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1    an appropriate performance bond.
2        (4) Annual reporting requirements.
3    (e) Any person or entity required to be licensed under this
4Section must:
5        (1) disclose in plain language in writing to all
6    persons it solicits (i) before July 1, 2011, the total
7    anticipated remuneration to be paid to it by any third
8    party over the period of the proposed underlying customer
9    contract and (ii) on or after July 1, 2011, the total price
10    per kilowatt-hour, and the total anticipated cost,
11    inclusive of all fees or commissions received by the
12    licensee, to be paid by the customer over the period of the
13    proposed underlying customer contract;
14        (2) disclose, if applicable, to each customer, prior to
15    the customer signing a contract, the amount of the
16    compensation being charged by the agent, broker, or
17    consultant and to all customers, prior to the customer
18    signing a contract, the fact that he or she they will be
19    receiving compensation directly from the supplier;
20        (3) not hold itself out as independent or unaffiliated
21    with any supplier, or both, or use words reasonably
22    calculated to give that impression, unless the person
23    offering service under this Section has no contractual
24    relationship with any retail electricity supplier or its
25    affiliates regarding retail electric service in Illinois;
26        (4) not utilize false, misleading, materially

 

 

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1    inaccurate, defamatory, or otherwise deceptive language or
2    materials in the soliciting or providing of its services;
3        (5) maintain copies of all marketing materials
4    disseminated to third parties for a period of not less than
5    3 years;
6        (6) not present electricity pricing information in a
7    manner that favors one supplier over another, unless a
8    valid pricing comparison is made utilizing all relevant
9    costs and terms; and
10        (7) comply with the requirements of Sections 2EE, 2FF,
11    2GG, and 2HH of the Consumer Fraud and Deceptive Business
12    Practices Act.
13    (f) Any person or entity licensed under this Section shall
14file with the Commission all of the following information no
15later than March of each year:
16        (1) A verified report detailing any and all contractual
17    relationships that it has with certified electricity
18    suppliers in the State regarding retail electric service in
19    Illinois.
20        (2) A verified report detailing the distribution of its
21    customers with the various certified electricity suppliers
22    in Illinois during the prior calendar year. A report under
23    this Section shall not be required to contain
24    customer-identifying information.
25        A public redacted version of the verified report may be
26    submitted to the Commission along with a proprietary

 

 

10100HB2861ham001- 170 -LRB101 07685 RJF 57277 a

1    version. The public redacted version may redact from the
2    verified report the name or names of every certified
3    electricity supplier contained in the report to protect
4    against disclosure of competitively sensitive market share
5    information. The information shall be afforded proprietary
6    treatment for 2 years after the date of the filing of the
7    verified report.
8        (3) A verified statement of any changes to the original
9    licensure qualifications and notice of continuing
10    compliance with all requirements.
11    (g) The Commission shall have jurisdiction over
12disciplinary proceedings and complaints for violations of this
13Section. The findings of a violation of this Section by the
14Commission shall result in a progressive disciplinary scale.
15For a first violation, the Commission may, in its discretion,
16suspend the license of the person so disciplined for a period
17of no less than one month. For a second violation within a
185-year period, the Commission shall suspend the license for the
19person so disciplined for a period of not less than 6 months.
20For a third or subsequent violation within a 5-year period, the
21Commission shall suspend the license of the disciplined person
22for a period of not less than 2 years.
23    (h) This Section shall not apply to a retail customer that
24operates or manages either directly or indirectly any
25facilities, equipment, or property used or contemplated to be
26used to distribute electric power or energy if that retail

 

 

10100HB2861ham001- 171 -LRB101 07685 RJF 57277 a

1customer is a political subdivision or public institution of
2higher education of this State, or any corporation, company,
3limited liability company, association, joint-stock company or
4association, firm, partnership, or individual, or their
5lessees, trusts, or receivers appointed by any court whatsoever
6that are owned or controlled by the political subdivision,
7public institution of higher education, or operated by any of
8its lessees or operating agents.
9(Source: P.A. 95-679, eff. 10-11-07; 96-1385, eff. 7-29-10.)
 
10    (220 ILCS 5/16-115E new)
11    Sec. 16-115E. Alternative retail electric supplier;
12electric utility assistance recipient.
13    (a) Beginning January 1, 2020, an alternative retail
14electric supplier shall not knowingly submit an enrollment to
15change a customer's electric power and energy supplier if the
16electric utility's records indicate that the customer received
17financial assistance in the last 12 months from either the Low
18Income Home Energy Assistance Program or the Percentage of
19Income Payment Plan unless: (1) the customer's change in
20electric power and energy supplier is pursuant to a government
21aggregation program adopted in accordance with Section 1-92 of
22the Illinois Power Agency Act; or (2) the customer's change in
23electric power and energy supplier is pursuant to a
24Commission-approved savings guarantee plan as described in
25subsection (b).

 

 

10100HB2861ham001- 172 -LRB101 07685 RJF 57277 a

1    (b) Beginning January 1, 2020, an alternative retail
2electric supplier may apply to the Commission to offer a
3savings guarantee plan to a recipient of Low Income Home Energy
4Assistance Program funding or Percentage of Income Payment Plan
5funding. The Commission shall initiate a public, docketed
6proceeding to consider whether or not to approve an alternative
7retail electric supplier's application to offer a savings
8guarantee plan. At a minimum, the savings guarantee plan shall
9charge a customer for electric power and energy an amount that
10is equal to or less than the amount of the electric utility
11rate. The Commission shall adopt rules to implement this
12subsection.
13    (c) An agreement entered into between an alternative retail
14electric supplier and a customer in violation of this Section
15is void and unenforceable. Before the electric utility executes
16a change in a customer's electric power and energy supplier,
17other than a change pursuant to a government aggregation
18program adopted in accordance with Section 1-92 of the Illinois
19Power Agency Act or pursuant to a Commission-approved savings
20guarantee plan as described in subsection (b), the electric
21utility shall confirm, at the time of the request, whether its
22records indicate that the customer has received financial
23assistance from either the Low Income Home Energy Assistance
24Program or the Percentage of Income Payment Plan in the last 12
25months, and, if so, shall reject such change request.
 

 

 

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1    (220 ILCS 5/16-118)
2    Sec. 16-118. Services provided by electric utilities to
3alternative retail electric suppliers.
4    (a) It is in the best interest of Illinois energy consumers
5to promote fair and open competition in the provision of
6electric power and energy and to prevent anticompetitive
7practices in the provision of electric power and energy.
8Therefore, to the extent an electric utility provides electric
9power and energy or delivery services to alternative retail
10electric suppliers and such services are not subject to the
11jurisdiction of the Federal Energy Regulatory Commission, and
12are not competitive services, they shall be provided through
13tariffs that are filed with the Commission, pursuant to Article
14IX of this Act. Each electric utility shall permit alternative
15retail electric suppliers to interconnect facilities to those
16owned by the utility provided they meet established standards
17for such interconnection, and may provide standby or other
18services to alternative retail electric suppliers. The
19alternative retail electric supplier shall sign a contract
20setting forth the prices, terms and conditions for
21interconnection with the electric utility and the prices, terms
22and conditions for services provided by the electric utility to
23the alternative retail electric supplier in connection with the
24delivery by the electric utility of electric power and energy
25supplied by the alternative retail electric supplier.
26    (b) An electric utility shall file a tariff pursuant to

 

 

10100HB2861ham001- 174 -LRB101 07685 RJF 57277 a

1Article IX of the Act that would allow alternative retail
2electric suppliers or electric utilities other than the
3electric utility in whose service area retail customers are
4located to issue single bills to the retail customers for both
5the services provided by such alternative retail electric
6supplier or other electric utility and the delivery services
7provided by the electric utility to such customers. The tariff
8filed pursuant to this subsection shall (i) require partial
9payments made by retail customers to be credited first to the
10electric utility's tariffed services, (ii) impose commercially
11reasonable terms with respect to credit and collection,
12including requests for deposits, (iii) retain the electric
13utility's right to disconnect the retail customers, if it does
14not receive payment for its tariffed services, in the same
15manner that it would be permitted to if it had billed for the
16services itself, and (iv) require the alternative retail
17electric supplier or other electric utility that elects the
18billing option provided by this tariff to include on each bill
19to retail customers an identification of the electric utility
20providing the delivery services and a listing of the charges
21applicable to such services. The tariff filed pursuant to this
22subsection may also include other just and reasonable terms and
23conditions. In addition, an electric utility, an alternative
24retail electric supplier or electric utility other than the
25electric utility in whose service area the customer is located,
26and a customer served by such alternative retail electric

 

 

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1supplier or other electric utility, may enter into an agreement
2pursuant to which the alternative retail electric supplier or
3other electric utility pays the charges specified in Section
416-108, or other customer-related charges, including taxes and
5fees, in lieu of such charges being recovered by the electric
6utility directly from the customer.
7    (c) An electric utility with more than 100,000 customers
8shall file a tariff pursuant to Article IX of this Act that
9provides alternative retail electric suppliers, and electric
10utilities other than the electric utility in whose service area
11the retail customers are located, with the option to have the
12electric utility purchase their receivables for power and
13energy service provided to residential retail customers and
14non-residential retail customers with a non-coincident peak
15demand of less than 400 kilowatts. Receivables for power and
16energy service of alternative retail electric suppliers or
17electric utilities other than the electric utility in whose
18service area the retail customers are located shall be
19purchased by the electric utility at a just and reasonable
20discount rate to be reviewed and approved by the Commission
21after notice and hearing. The discount rate shall be based on
22the electric utility's historical bad debt and any reasonable
23start-up costs and administrative costs associated with the
24electric utility's purchase of receivables. The discounted
25rate for purchase of receivables shall be included in the
26tariff filed pursuant to this subsection (c). The discount rate

 

 

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1filed pursuant to this subsection (c) shall be subject to
2periodic Commission review. The electric utility retains the
3right to impose the same terms on retail customers with respect
4to credit and collection, including requests for deposits, and
5retain the electric utility's right to disconnect the retail
6customers, if it does not receive payment for its tariffed
7services or purchased receivables, in the same manner that it
8would be permitted to if the retail customers purchased power
9and energy from the electric utility. The tariff filed pursuant
10to this subsection (c) shall permit the electric utility to
11recover from retail customers any uncollected receivables that
12may arise as a result of the purchase of receivables under this
13subsection (c), may also include other just and reasonable
14terms and conditions, and shall provide for the prudently
15incurred costs associated with the provision of this service
16pursuant to this subsection (c). Nothing in this subsection (c)
17permits the double recovery of bad debt expenses from
18customers.
19    (d) An electric utility with more than 100,000 customers
20shall file a tariff pursuant to Article IX of this Act that
21would provide alternative retail electric suppliers or
22electric utilities other than the electric utility in whose
23service area retail customers are located with the option to
24have the electric utility produce and provide single bills to
25the retail customers for both the electric power and energy
26service provided by the alternative retail electric supplier or

 

 

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1other electric utility and the delivery services provided by
2the electric utility to the customers. The tariffs filed
3pursuant to this subsection shall require the electric utility
4to collect and remit customer payments for electric power and
5energy service provided by alternative retail electric
6suppliers or electric utilities other than the electric utility
7in whose service area retail customers are located. The tariff
8filed pursuant to this subsection shall require the electric
9utility to include on each bill to retail customers an
10identification of the alternative retail electric supplier or
11other electric utility that elects the billing option. The
12tariff filed pursuant to this subsection (d) may also include
13other just and reasonable terms and conditions and shall
14provide for the recovery of prudently incurred costs associated
15with the provision of service pursuant to this subsection (d).
16The costs associated with the provision of service pursuant to
17this Section shall be subject to periodic Commission review.
18    (e) An electric utility with more than 100,000 customers in
19this State shall file a tariff pursuant to Article IX of this
20Act that provides alternative retail electric suppliers, and
21electric utilities other than the electric utility in whose
22service area the retail customers are located, with the option
23to have the electric utility purchase 2 billing cycles worth of
24uncollectible receivables for power and energy service
25provided to residential retail customers and to
26non-residential retail customers with a non-coincident peak

 

 

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1demand of less than 400 kilowatts upon returning that customer
2to that electric utility for delivery and energy service after
3that alternative retail electric supplier, or an electric
4utility other than the electric utility in whose service area
5the retail customer is located, has made reasonable collection
6efforts on that account. Uncollectible receivables for power
7and energy service of alternative retail electric suppliers, or
8electric utilities other than the electric utility in whose
9service area the retail customers are located, shall be
10purchased by the electric utility at a just and reasonable
11discount rate to be reviewed and approved by the Commission,
12after notice and hearing. The discount rate shall be based on
13the electric utility's historical bad debt for receivables that
14are outstanding for a similar length of time and any reasonable
15start-up costs and administrative costs associated with the
16electric utility's purchase of receivables. The discounted
17rate for purchase of uncollectible receivables shall be
18included in the tariff filed pursuant to this subsection (e).
19The electric utility retains the right to impose the same terms
20on these retail customers with respect to credit and
21collection, including requests for deposits, and retains the
22right to disconnect these retail customers, if it does not
23receive payment for its tariffed services or purchased
24receivables, in the same manner that it would be permitted to
25if the retail customers had purchased power and energy from the
26electric utility. The tariff filed pursuant to this subsection

 

 

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1(e) shall permit the electric utility to recover from retail
2customers any uncollectable receivables that may arise as a
3result of the purchase of uncollectible receivables under this
4subsection (e), may also include other just and reasonable
5terms and conditions, and shall provide for the prudently
6incurred costs associated with the provision of this service
7pursuant to this subsection (e). Nothing in this subsection (e)
8permits the double recovery of utility bad debt expenses from
9customers. The electric utility may file a joint tariff for
10this subsection (e) and subsection (c) of this Section.
11    (f) Every alternative retail electric supplier or electric
12utility other than the electric utility in whose service area a
13retail customer is located that issues single bills to the
14retail customer for the services it provides by such
15alternative retail electric supplier or other electric utility
16and, for the delivery services provided by the electric utility
17to such a customer, shall include on the single bills issued to
18a residential customer the current electric utility's
19generally applicable electric utility supply rate that would
20apply to the customer for the billing period as specified in
21the Illinois Administrative Code.
22    (g) Every electric utility that provides delivery and
23supply services shall include on each bill to a residential
24customer who obtain supply from an alternative retail electric
25supplier the electric utility's generally applicable electric
26utility supply rate that would apply to the customer for the

 

 

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1billing period as specified in the Illinois Administrative
2Code.
3(Source: P.A. 95-700, eff. 11-9-07.)
 
4    (220 ILCS 5/16-120)
5    Sec. 16-120. Development of competitive market; Commission
6study and reports; investigation.
7    (a) On or before December 31, 1999 and once every 3 years
8thereafter, the Commission shall monitor and analyze patterns
9of entry and exit, applications for entry and exit, and any
10barriers to entry or participation that may exist, for services
11provided under this Article; shall analyze any impediments to
12the establishment of a fully competitive energy and power
13market in Illinois; and shall include its findings together
14with appropriate recommendations for legislative action in a
15report to the General Assembly.
16    (b) Beginning in 2001, and ending in 2006, the Commission
17shall prepare an annual report regarding the development of
18electricity markets in Illinois which shall be filed by April 1
19of each year with the Joint Committee on Legislative Support
20Services of the General Assembly and the Governor and which
21shall be publicly available. Such report shall include, at a
22minimum, the following information:
23        (1) the aggregate annual peak demand of retail
24    customers in the State of Illinois in the preceding
25    calendar year;

 

 

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1        (2) the total annual kilowatt-hours delivered and sold
2    to retail customers in the State of Illinois by each
3    electric utility within its own service territory, each
4    electric utility outside its service territory, and
5    alternative retail electric suppliers in the preceding
6    calendar year;
7        (3) the percentage of the total kilowatt-hours
8    delivered and sold to retail customers in the State of
9    Illinois in the preceding calendar year by each electric
10    utility within its service territory, each electric
11    utility outside its service territory, and each
12    alternative retail electric supplier; and
13        (4) any other information the Commission considers
14    significant in assessing the development of Illinois
15    electricity markets, which may include, to the extent
16    available, information similar to that described in items
17    1, 2 and 3 with respect to cogeneration, self-generation
18    and other sources of electric power and energy provided to
19    customers that do not take delivery services or bundled
20    electric utility services.
21    The Commission may also include such other information as
22it deems to be necessary or beneficial in describing or
23explaining the results of its Report. The Report required by
24this Section shall be adopted by a vote of the full Commission
25prior to filing. Proprietary or confidential information shall
26not be disclosed publicly. Nothing contained in this Section

 

 

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1shall prohibit the Commission from taking actions that would
2otherwise be allowed under this Act.
3    (c) The Commission shall prepare a report on the value of
4municipal aggregation of electricity customers. The report
5shall be filed with the General Assembly and the Governor no
6later than January 15, 2003 and shall be publicly available.
7The report shall, at a minimum, include:
8        (1) a description and analysis of actual and potential
9    forms of aggregation of electricity customers in Illinois
10    and in the other states, including aggregation through
11    municipal, affinity, and other organizations and through
12    aggregation of consumer purchases of electricity from
13    renewable energy sources;
14        (2) estimates of the potential benefits of municipal
15    aggregation to Illinois electricity customers in at least 5
16    specific municipal examples comparing their costs under
17    bundled rates and unbundled rates, including real-time
18    prices;
19        (3) a description of the barriers to municipal and
20    other forms of aggregation in Illinois, including legal,
21    economic, informational, and other barriers; and
22        (4) options for legislative action to foster municipal
23    and other forms of aggregation of electricity customers.
24    In preparing the report, the Commission shall consult with
25persons involved in aggregation or the study of aggregation of
26electricity customers in Illinois, including municipalities,

 

 

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1utilities, aggregators, and non-profit organizations. The
2provisions of Section 16-122 notwithstanding, the Commission
3may request and utilities shall provide such aggregated load
4data as may be necessary to perform the analyses required by
5this subsection; provided, however, proprietary or
6confidential information shall not be disclosed publicly.
7    (d) On or before July 1, 2019, the Commission shall
8initiate a rulemaking to investigate the sales and marketing
9practices of residential solar providers in an effort to create
10a uniform set of rules concerning the sale and installation of
11solar photovoltaic systems. In preparing the report, the
12Commission shall consult with persons involved in the sales and
13marketing of residential solar, including customers in
14Illinois, electric utilities, and residential solar providers.
15(Source: P.A. 92-585, eff. 6-26-02.)
 
16    (220 ILCS 5/19-110)
17    Sec. 19-110. Certification of alternative gas suppliers.
18    (a) The provisions of this Section shall apply only to
19alternative gas suppliers serving or seeking to serve
20residential or small commercial customers and only to the
21extent such alternative gas suppliers provide services to
22residential or small commercial customers.
23    (b) An alternative gas supplier must obtain a certificate
24of service authority from the Commission in accordance with
25this Section before serving any customer or other user located

 

 

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1in this State. An alternative gas supplier may request, and the
2Commission may grant, a certificate of service authority for
3the entire State or for a specified geographic area of the
4State. A person, corporation, or other entity acting as an
5alternative gas supplier on the effective date of this
6amendatory Act of the 92nd General Assembly shall have 180 days
7from the effective date of this amendatory Act of the 92nd
8General Assembly to comply with the requirements of this
9Section in order to continue to operate as an alternative gas
10supplier.
11    (c) An alternative gas supplier seeking a certificate of
12service authority shall file with the Commission a verified
13application containing information showing that the applicant
14meets the requirements of this Section. The alternative gas
15supplier shall publish notice of its application in the
16official State newspaper within 10 days following the date of
17its filing. No later than 45 days after the application is
18properly filed with the Commission, and such notice is
19published, the Commission shall issue its order granting or
20denying the application.
21    (d) An application for a certificate of service authority
22shall identify the area or areas in which the applicant intends
23to offer service and the types of services it intends to offer.
24Applicants that seek to serve residential or small commercial
25customers within a geographic area that is smaller than a gas
26utility's service area shall submit evidence demonstrating

 

 

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1that the designation of this smaller area does not violate
2Section 19-115. An applicant may state in its application for
3certification any limitations that will be imposed on the
4number of customers or maximum load to be served. The applicant
5shall submit as part of its application a statement indicating:
6        (1) Whether the applicant has been denied a natural gas
7    supplier license in any state in the United States.
8        (2) Whether the applicant has had a natural gas
9    supplier license suspended or revoked by any state in the
10    United States.
11        (3) Where, if any, other natural gas supplier license
12    applications are pending in the United States.
13        (4) Whether the applicant is the subject of any
14    lawsuits filed in a court of law or formal complaints filed
15    with a regulatory agency alleging fraud, deception or
16    unfair marketing practices, or other similar allegations,
17    identifying the name, case number, and jurisdiction of each
18    such lawsuit or complaint.
19        (5) That the applicant shall continue to comply with
20    requirements for certification stated in Section 19-110.
21        (6) That the applicant shall execute and maintain a
22    license or permit bond issued by a qualifying surety or
23    insurance company authorized to transact business in the
24    State of Illinois in favor of the people of the State of
25    Illinois. The amount of the bond shall equal $150,000 if
26    the applicant seeks to serve only nonresidential retail

 

 

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1    customers or $500,000 if the applicant seeks to serve all
2    eligible customers. An applicant is required to submit an
3    additional $500,000 bond if the applicant intends to market
4    to a residential area using in-person solicitations. The
5    bond shall be conditioned upon the full and faithful
6    performance of all duties and obligations of the applicant
7    as an alternative gas supplier and shall be valid for a
8    period of not less than one year. The cost of the bond
9    shall be paid by the applicant. The applicant shall file a
10    copy of this bond, with a notarized verification page from
11    the issuer, as part of its application for certification
12    under 83 Ill. Adm. Code 551.
13        (7) That the applicant will comply with all other
14    applicable laws and regulations.
15        (8) The Commission may deny, with prejudice, an
16    application in which the applicant repeatedly fails to
17    provide the Commission with information sufficient for the
18    Commission to grant the application.
19    For the purposes of this subsection (d), formal complaints
20include only those complaints that seek a binding determination
21from a state or federal regulatory body.
22    (e) The Commission shall grant the application for a
23certificate of service authority if it makes the findings set
24forth in this subsection based on the verified application and
25such other information as the applicant may submit.
26        (1) That the applicant possesses sufficient technical,

 

 

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1    financial, and managerial resources and abilities to
2    provide the service for which it seeks a certificate of
3    service authority. In determining the level of technical,
4    financial, and managerial resources and abilities which
5    the applicant must demonstrate, the Commission shall
6    consider:
7            (A) the characteristics, including the size and
8        financial sophistication of the customers that the
9        applicant seeks to serve;
10            (B) whether the applicant seeks to provide gas
11        using property, plant, and equipment that it owns,
12        controls, or operates; and
13            (C) the applicant's commitment of resources to the
14        management of sales and marketing staff, through
15        affirmative managerial policies, independent audits,
16        technology, hands-on field monitoring and training,
17        and, in the case of applicants who will have sales
18        personnel or sales agents within the State of Illinois,
19        the applicant's managerial presence within the State.
20        (2) That the applicant will comply with all applicable
21    federal, State, regional, and industry rules, policies,
22    practices, and procedures for the use, operation, and
23    maintenance of the safety, integrity, and reliability of
24    the gas transmission system.
25        (3) That the applicant will comply with such
26    informational or reporting requirements as the Commission

 

 

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1    may by rule establish.
2        (4) That the area to be served by the applicant and any
3    limitations it proposes on the number of customers or
4    maximum amount of load to be served meet the provisions of
5    Section 19-115, provided, that if the applicant seeks to
6    serve an area smaller than the service area of a gas
7    utility or proposes other limitations on the number of
8    customers or maximum amount of load to be served, the
9    Commission can extend the time for considering such a
10    certificate request by up to 90 days, and can schedule
11    hearings on such a request.
12        (5) That the applicant and the applicant's sales agents
13    will comply with all other applicable laws and rules.
14    (f) The Commission can extend the time for considering such
15a certificate request by up to 90 days, and can schedule
16hearings on such a request if:
17        (1) a party to the application proceeding has formally
18    requested that the Commission hold hearings in a pleading
19    that alleges that one or more of the allegations or
20    certifications in the application is false or misleading;
21    or
22        (2) other facts or circumstances exist that will
23    necessitate additional time or evidence in order to
24    determine whether a certificate should be issued.
25    (g) The Commission shall have the authority to promulgate
26rules to carry out the provisions of this Section. Within 30

 

 

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1days after the effective date of this amendatory Act of the
292nd General Assembly, the Commission shall adopt an emergency
3rule or rules applicable to the certification of those gas
4suppliers that seek to serve residential customers. Within 180
5days of the effective date of this amendatory Act of the 92nd
6General Assembly, the Commission shall adopt rules that specify
7criteria which, if met by any such alternative gas supplier,
8shall constitute the demonstration of technical, financial,
9and managerial resources and abilities to provide service
10required by item (1) of subsection (e) of this Section, such as
11a requirement to post a bond or letter of credit, from a
12responsible surety or financial institution, of sufficient
13size for the nature and scope of the services to be provided,
14demonstration of adequate insurance for the scope and nature of
15the services to be provided, and experience in providing
16similar services in other jurisdictions.
17    (h) The Commission may deny with prejudice any application
18that repeatedly fails to include the attachments,
19documentation, and affidavits required by the application form
20or that repeatedly fails to provide any other information
21required by this Section.
22    (i) An alternative gas supplier may seek confidential
23treatment for the reporting to the Commission of its total
24annual dekatherms delivered and sold by it to residential and
25small commercial customers by utility service territory during
26the preceding year via the filing of an affidavit with the

 

 

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1Commission so long as the affidavit meets the requirements of
2this subsection (i). The affidavit must be filed
3contemporaneously with the information for which confidential
4treatment is sought and must clearly state that the affiant
5seeks confidential treatment pursuant to this subsection (i)
6and the information for which confidential treatment is sought
7must be clearly identified on the confidential version of the
8document filed with the Commission. The affidavit must be
9accompanied by both a "confidential" and a "public" version of
10the document or documents containing the information for which
11confidential treatment is sought.
12    If the alternative gas supplier has met the affidavit
13requirements of this subsection (i), then the Commission shall
14afford confidential treatment to the information identified in
15the affidavit for a period of 2 years after the date the
16affidavit is received by the Commission.
17    Nothing in this subsection (i) prevents an alternative gas
18supplier from filing a petition with the Commission seeking
19confidential treatment for information beyond that identified
20in this subsection (i) or for information contained in other
21reports or documents filed with the Commission.
22    Nothing in this subsection (i) prevents the Commission, on
23its own motion, or any party from filing a formal petition with
24the Commission seeking to reconsider the conferring of
25confidential status pursuant to this subsection (i).
26    The Commission, on its own motion, may at any time initiate

 

 

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1a docketed proceeding to investigate the continued
2applicability of this affidavit-based process for seeking
3confidential treatment. If, at the end of such investigation,
4the Commission determines that this affidavit-based process
5for seeking confidential treatment for the information is no
6longer necessary, the Commission may enter an order to that
7effect. Notwithstanding any such order, in the event the
8Commission makes such a determination, nothing in this
9subsection (i) prevents an alternative gas supplier desiring
10confidential treatment for such information from filing a
11formal petition with the Commission seeking confidential
12treatment for such information.
13(Source: P.A. 99-332, eff. 8-10-15.)
 
14    (220 ILCS 5/19-115)
15    Sec. 19-115. Obligations of alternative gas suppliers.
16    (a) The provisions of this Section shall apply only to
17alternative gas suppliers serving or seeking to serve
18residential or small commercial customers and only to the
19extent such alternative gas suppliers provide services to
20residential or small commercial customers.
21    (b) An alternative gas supplier shall:
22        (1) comply with the requirements imposed on public
23    utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
24    8-507 of this Act, to the extent that these Sections have
25    application to the services being offered by the

 

 

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1    alternative gas supplier;
2        (2) continue to comply with the requirements for
3    certification stated in Section 19-110;
4        (3) comply with complaint procedures established by
5    the Commission;
6        (4) except as provided in subsection (h) of this
7    Section, file with the Chief Clerk of the Commission,
8    within 20 business days after the effective date of this
9    amendatory Act of the 95th General Assembly, a copy of bill
10    formats, standard customer contract and customer complaint
11    and resolution procedures, and the name and telephone
12    number of the company representative whom Commission
13    employees may contact to resolve customer complaints and
14    other matters. In the case of a gas supplier that engages
15    in door-to-door solicitation, the company shall file with
16    the Commission the consumer information disclosure
17    required by item (3) of subsection (c) of Section 2DDD of
18    the Consumer Fraud and Deceptive Business Practices Act and
19    shall file updated information within 10 business days
20    after changes in any of the documents or information
21    required to be filed by this item (4); and
22        (5) maintain a customer call center where customers can
23    reach a representative and receive current information. At
24    least once every 6 months, each alternative gas supplier
25    shall provide written information to customers explaining
26    how to contact the call center. The average answer time for

 

 

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1    calls placed to the call center shall not exceed 60 seconds
2    where a representative or automated system is ready to
3    render assistance and/or accept information to process
4    calls. The abandon rate for calls placed to the call center
5    shall not exceed 10%. Each alternative gas supplier shall
6    maintain records of the call center's telephone answer time
7    performance and abandon call rate. These records shall be
8    kept for a minimum of 2 years and shall be made available
9    to Commission personnel upon request. In the event that
10    answer times and/or abandon rates exceed the limits
11    established above, the reporting alternative gas supplier
12    may provide the Commission or its personnel with
13    explanatory details. At a minimum, these records shall
14    contain the following information in monthly increments:
15            (A) total number of calls received;
16            (B) number of calls answered;
17            (C) average answer time;
18            (D) number of abandoned calls; and
19            (E) abandon call rate.
20    Alternative gas suppliers that do not have electronic
21answering capability that meets these requirements shall
22notify the Manager of the Commission's Consumer Services
23Division or its successor within 30 days following the
24effective date of this amendatory Act of the 95th General
25Assembly and work with Staff to develop individualized
26reporting requirements as to the call volume and responsiveness

 

 

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1of the call center.
2    On or before March 1 of every year, each entity shall file
3a report with the Chief Clerk of the Commission for the
4preceding calendar year on its answer time and abandon call
5rate for its call center. A copy of the report shall be sent to
6the Manager of the Consumer Services Division or its successor.
7    (c) An alternative gas supplier shall not submit or execute
8a change in a customer's selection of a natural gas provider
9unless and until (i) the alternative gas supplier first
10discloses all material terms and conditions of the offer to the
11customer; (ii) the alternative gas supplier has obtained the
12customer's express agreement to accept the offer after the
13disclosure of all material terms and conditions of the offer;
14and (iii) the alternative gas supplier has confirmed the
15request for a change in accordance with one of the following
16procedures:
17        (1) The alternative gas supplier has obtained the
18    customer's written or electronically signed authorization
19    in a form that meets the following requirements:
20            (A) An alternative gas supplier shall obtain any
21        necessary written or electronically signed
22        authorization from a customer for a change in natural
23        gas service by using a letter of agency as specified in
24        this Section. Any letter of agency that does not
25        conform with this Section is invalid.
26            (B) The letter of agency shall be a separate

 

 

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1        document (or an easily separable document containing
2        only the authorization language described in item (E)
3        of this paragraph (1)) whose sole purpose is to
4        authorize a natural gas provider change. The letter of
5        agency must be signed and dated by the customer
6        requesting the natural gas provider change.
7            (C) The letter of agency shall not be combined with
8        inducements of any kind on the same document.
9            (D) Notwithstanding items (A) and (B) of this
10        paragraph (1), the letter of agency may be combined
11        with checks that contain only the required letter of
12        agency language prescribed in item (E) of this
13        paragraph (1) and the necessary information to make the
14        check a negotiable instrument. The letter of agency
15        check shall not contain any promotional language or
16        material. The letter of agency check shall contain in
17        easily readable, bold face type on the face of the
18        check a notice that the consumer is authorizing a
19        natural gas provider change by signing the check. The
20        letter of agency language also shall be placed near the
21        signature line on the back of the check.
22            (E) At a minimum, the letter of agency must be
23        printed with a print of sufficient size to be clearly
24        legible and must contain clear and unambiguous
25        language that confirms:
26                (i) the customer's billing name and address;

 

 

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1                (ii) the decision to change the natural gas
2            provider from the current provider to the
3            prospective alternative gas supplier;
4                (iii) the terms, conditions, and nature of the
5            service to be provided to the customer, including,
6            but not limited to, the rates for the service
7            contracted for by the customer; and
8                (iv) that the customer understands that any
9            natural gas provider selection the customer
10            chooses may involve a charge to the customer for
11            changing the customer's natural gas provider.
12            (F) Letters of agency shall not suggest or require
13        that a customer take some action in order to retain the
14        customer's current natural gas provider.
15            (G) If any portion of a letter of agency is
16        translated into another language, then all portions of
17        the letter of agency must be translated into that
18        language.
19        (2) An appropriately qualified independent third party
20    has obtained, in accordance with the procedures set forth
21    in this paragraph (2), the customer's oral authorization to
22    change natural gas providers that confirms and includes
23    appropriate verification data. The independent third party
24    must (i) not be owned, managed, controlled, or directed by
25    the alternative gas supplier or the alternative gas
26    supplier's marketing agent; (ii) not have any financial

 

 

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1    incentive to confirm provider change requests for the
2    alternative gas supplier or the alternative gas supplier's
3    marketing agent; and (iii) operate in a location physically
4    separate from the alternative gas supplier or the
5    alternative gas supplier's marketing agent. Automated
6    third-party verification systems and 3-way conference
7    calls may be used for verification purposes so long as the
8    other requirements of this paragraph (2) are satisfied. An
9    alternative gas supplier or alternative gas supplier's
10    sales representative initiating a 3-way conference call or
11    a call through an automated verification system must drop
12    off the call once the 3-way connection has been
13    established. All third-party verification methods shall
14    elicit, at a minimum, the following information:
15            (A) the identity of the customer;
16            (B) confirmation that the person on the call is
17        authorized to make the provider change;
18            (C) confirmation that the person on the call wants
19        to make the provider change;
20            (D) the names of the providers affected by the
21        change;
22            (E) the service address of the service to be
23        switched; and
24            (F) the price of the service to be provided and the
25        material terms and conditions of the service being
26        offered, including whether any early termination fees

 

 

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1        apply.
2        Third-party verifiers may not market the alternative
3    gas supplier's services by providing additional
4    information. All third-party verifications shall be
5    conducted in the same language that was used in the
6    underlying sales transaction and shall be recorded in their
7    entirety. Submitting alternative gas suppliers shall
8    maintain and preserve audio records of verification of
9    customer authorization for a minimum period of 2 years
10    after obtaining the verification. Automated systems must
11    provide customers with an option to speak with a live
12    person at any time during the call.
13        (3) The alternative gas supplier has obtained the
14    customer's authorization via an automated verification
15    system to change natural gas service via telephone. An
16    automated verification system is an electronic system
17    that, through pre-recorded prompts, elicits voice
18    responses, touchtone responses, or both, from the customer
19    and records both the prompts and the customer's responses.
20    Such authorization must elicit the information in
21    paragraph (2)(A) through (F) of this subsection (c).
22    Alternative gas suppliers electing to confirm sales
23    electronically through an automated verification system
24    shall establish one or more toll-free telephone numbers
25    exclusively for that purpose. Calls to the number or
26    numbers shall connect a customer to a voice response unit,

 

 

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1    or similar mechanism, that makes a date-stamped,
2    time-stamped recording of the required information
3    regarding the alternative gas supplier change.
4        The alternative gas supplier shall not use such
5    electronic authorization systems to market its services.
6        (4) When a consumer initiates the call to the
7    prospective alternative gas supplier, in order to enroll
8    the consumer as a customer, the prospective alternative gas
9    supplier must, with the consent of the customer, make a
10    date-stamped, time-stamped audio recording that elicits,
11    at a minimum, the following information:
12            (A) the identity of the customer;
13            (B) confirmation that the person on the call is
14        authorized to make the provider change;
15            (C) confirmation that the person on the call wants
16        to make the provider change;
17            (D) the names of the providers affected by the
18        change;
19            (E) the service address of the service to be
20        switched; and
21            (F) the price of the service to be supplied and the
22        material terms and conditions of the service being
23        offered, including whether any early termination fees
24        apply.
25        Submitting alternative gas suppliers shall maintain
26    and preserve the audio records containing the information

 

 

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1    set forth above for a minimum period of 2 years.
2        (5) In the event that a customer enrolls for service
3    from an alternative gas supplier via an Internet website,
4    the alternative gas supplier shall obtain an
5    electronically signed letter of agency in accordance with
6    paragraph (1) of this subsection (c) and any customer
7    information shall be protected in accordance with all
8    applicable statutes and regulations. In addition, an
9    alternative gas supplier shall provide the following when
10    marketing via an Internet website:
11            (A) The Internet enrollment website shall, at a
12        minimum, include:
13                (i) a copy of the alternative gas supplier's
14            customer contract that clearly and conspicuously
15            discloses all terms and conditions; and
16                (ii) a conspicuous prompt for the customer to
17            print or save a copy of the contract.
18            (B) Any electronic version of the contract shall be
19        identified by version number, in order to ensure the
20        ability to verify the particular contract to which the
21        customer assents.
22            (C) Throughout the duration of the alternative gas
23        supplier's contract with a customer, the alternative
24        gas supplier shall retain and, within 3 business days
25        of the customer's request, provide to the customer an
26        e-mail, paper, or facsimile of the terms and conditions

 

 

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1        of the numbered contract version to which the customer
2        assents.
3            (D) The alternative gas supplier shall provide a
4        mechanism by which both the submission and receipt of
5        the electronic letter of agency are recorded by time
6        and date.
7            (E) After the customer completes the electronic
8        letter of agency, the alternative gas supplier shall
9        disclose conspicuously through its website that the
10        customer has been enrolled, and the alternative gas
11        supplier shall provide the customer an enrollment
12        confirmation number.
13        (6) When a customer is solicited in person by the
14    alternative gas supplier's sales agent, the alternative
15    gas supplier may only obtain the customer's authorization
16    to change natural gas service through the method provided
17    for in paragraph (2) of this subsection (c).
18    Alternative gas suppliers must be in compliance with this
19subsection (c) within 90 days after the effective date of this
20amendatory Act of the 95th General Assembly.
21    (d) Complaints may be filed with the Commission under this
22Section by a customer whose natural gas service has been
23provided by an alternative gas supplier in a manner not in
24compliance with subsection (c) of this Section. If, after
25notice and hearing, the Commission finds that an alternative
26gas supplier has violated subsection (c), then the Commission

 

 

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1may in its discretion do any one or more of the following:
2        (1) Require the violating alternative gas supplier to
3    refund the customer charges collected in excess of those
4    that would have been charged by the customer's authorized
5    natural gas provider.
6        (2) Require the violating alternative gas supplier to
7    pay to the customer's authorized natural gas provider the
8    amount the authorized natural gas provider would have
9    collected for natural gas service. The Commission is
10    authorized to reduce this payment by any amount already
11    paid by the violating alternative gas supplier to the
12    customer's authorized natural gas provider.
13        (3) Require the violating alternative gas supplier to
14    pay a fine of up to $1,000 into the Public Utility Fund for
15    each repeated and intentional violation of this Section.
16        (4) Issue a cease and desist order.
17        (5) For a pattern of violation of this Section or for
18    intentionally violating a cease and desist order, revoke
19    the violating alternative gas supplier's certificate of
20    service authority.
21    (e) No alternative gas supplier shall:
22        (1) enter into or employ any arrangements which have
23    the effect of preventing any customer from having access to
24    the services of the gas utility in whose service area the
25    customer is located;
26        (2) charge customers for such access;

 

 

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1        (3) bill for goods or services not authorized by the
2    customer; or
3        (4) bill for a disputed amount where the alternative
4    gas supplier has been provided notice of such dispute. The
5    supplier shall attempt to resolve a dispute with the
6    customer. When the dispute is not resolved to the
7    customer's satisfaction, the supplier shall inform the
8    customer of the right to file an informal complaint with
9    the Commission and provide contact information. While the
10    pending dispute is active at the Commission, an alternative
11    gas supplier may bill only for the undisputed amount until
12    the Commission has taken final action on the complaint.
13    (f) An alternative gas supplier that is certified to serve
14residential or small commercial customers shall not:
15        (1) deny service to a customer or group of customers
16    nor establish any differences as to prices, terms,
17    conditions, services, products, facilities, or in any
18    other respect, whereby such denial or differences are based
19    upon race, gender, or income;
20        (2) deny service based on locality, nor establish any
21    unreasonable difference as to prices, terms, conditions,
22    services, products, or facilities as between localities;
23        (3) include in any agreement a provision that obligates
24    a customer to the terms of the agreement if the customer
25    (i) moves outside the State of Illinois; (ii) moves to a
26    location without a transportation service program; or

 

 

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1    (iii) moves to a location where the customer will not
2    require natural gas service, provided that nothing in this
3    subsection precludes an alternative gas supplier from
4    taking any action otherwise available to it to collect a
5    debt that arises out of service provided to the customer
6    before the customer moved; or
7        (4) assign the agreement to any alternative natural gas
8    supplier, unless:
9            (A) the supplier is an alternative gas supplier
10        certified by the Commission;
11            (B) the rates, terms, and conditions of the
12        agreement being assigned do not change during the
13        remainder of the time covered by the agreement;
14            (C) the customer is given no less than 30 days
15        prior written notice of the assignment and contact
16        information for the new supplier; and
17            (D) the supplier assigning the contract provides
18        contact information that a customer can use to resolve
19        a dispute.
20    (g) An alternative gas supplier shall comply with the
21following requirements with respect to the marketing,
22offering, and provision of products or services:
23        (1) All marketing materials that offer a price at which
24    a customer may enroll, or that make claims that the
25    alternative gas supplier's price will save a customer
26    money, including electronic marketing materials, in-person

 

 

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1    solicitations, and telephone solicitations, shall disclose
2    the prices, terms, and conditions of the products or
3    services that the alternative gas supplier is offering or
4    selling to the customer, including the expiration date of
5    the offer, and shall disclose the current gas utility's
6    average generally applicable gas utility supply rate for
7    the most recent 6 months at the time that the marketing
8    material was published, along with a link to the Commission
9    website where the current rates are published. Any
10    marketing materials which make statements concerning
11    prices, terms, and conditions of service shall contain
12    information that adequately discloses the prices, terms
13    and conditions of the products or services.
14        (2) Before any customer is switched from another
15    supplier, the alternative gas supplier shall give the
16    customer written information that clearly and
17    conspicuously discloses, in plain language, the prices,
18    terms, and conditions of the products and services being
19    offered and sold to the customer. Nothing in this paragraph
20    (2) may be read to relieve an alternative gas supplier from
21    the duties imposed on it by item (3) of subsection (c) of
22    Section 2DDD of the Consumer Fraud and Deceptive Business
23    Practices Act.
24        (3) The alternative gas supplier shall provide to the
25    customer:
26            (A) accurate, timely, and itemized billing

 

 

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1        statements that describe the products and services
2        provided to the customer and their prices and that
3        specify the gas consumption amount and any service
4        charges and taxes; provided that this item (g)(3)(A)
5        does not apply to small commercial customers;
6            (B) billing statements that clearly and
7        conspicuously discloses the name and contact
8        information for the alternative gas supplier;
9            (C) an additional statement, at least annually,
10        that adequately discloses the average monthly prices,
11        and the terms and conditions, of the products and
12        services sold to the customer; provided that this item
13        (g)(3)(C) does not apply to small commercial
14        customers;
15            (D) refunds of any deposits with interest within 30
16        days after the date that the customer changes gas
17        suppliers or discontinues service if the customer has
18        satisfied all of his or her outstanding financial
19        obligations to the alternative gas supplier at an
20        interest rate set by the Commission which shall be the
21        same as that required of gas utilities; and
22            (E) refunds, in a timely fashion, of all undisputed
23        overpayments upon the oral or written request of the
24        customer.
25        (4) An alternative gas supplier and its sales agents
26    shall refrain from any direct marketing or soliciting to

 

 

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1    consumers on the gas utility's "Do Not Contact List", which
2    the alternative gas supplier shall obtain on the 15th
3    calendar day of the month from the gas utility in whose
4    service area the consumer is provided with gas service. If
5    the 15th calendar day is a non-business day, then the
6    alternative gas supplier shall obtain the list on the next
7    business day following the 15th calendar day of that month.
8        (5) Early Termination.
9            (A) Any agreement that contains an early
10        termination clause shall disclose the amount of the
11        early termination fee, provided that any early
12        termination fee or penalty shall not exceed $50 total,
13        regardless of whether or not the agreement is a
14        multiyear agreement.
15            (B) In any agreement that contains an early
16        termination clause, an alternative gas supplier shall
17        provide the customer the opportunity to terminate the
18        agreement without any termination fee or penalty
19        within 10 business days after the date of the first
20        bill issued to the customer for products or services
21        provided by the alternative gas supplier. The
22        agreement shall disclose the opportunity and provide a
23        toll-free phone number that the customer may call in
24        order to terminate the agreement.
25        (6) Within 2 business days after electronic receipt of
26    a customer switch from the alternative gas supplier and

 

 

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1    confirmation of eligibility, the gas utility shall provide
2    the customer written notice confirming the switch. The gas
3    utility shall not switch the service until 10 business days
4    after the date on the notice to the customer.
5        (7) The alternative gas supplier shall provide each
6    customer the opportunity to rescind its agreement without
7    penalty within 10 business days after the date on the gas
8    utility notice to the customer. The alternative gas
9    supplier shall disclose all of the following:
10            (A) that the gas utility shall send a notice
11        confirming the switch;
12            (B) that from the date the utility issues the
13        notice confirming the switch, the customer shall have
14        10 business days to rescind the switch without penalty;
15            (C) that the customer shall contact the gas utility
16        or the alternative gas supplier to rescind the switch;
17        and
18            (D) the contact information for the gas utility.
19        The alternative gas supplier disclosure shall be
20    included in its sales solicitations, contracts, and all
21    applicable sales verification scripts.
22    (h) An alternative gas supplier may limit the overall size
23or availability of a service offering by specifying one or more
24of the following:
25        (1) a maximum number of customers and maximum amount of
26    gas load to be served;

 

 

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1        (2) time period during which the offering will be
2    available; or
3        (3) other comparable limitation, but not including the
4    geographic locations of customers within the area which the
5    alternative gas supplier is certificated to serve.
6    The alternative gas supplier shall file the terms and
7conditions of such service offering including the applicable
8limitations with the Commission prior to making the service
9offering available to customers.
10    (i) Nothing in this Section shall be construed as
11preventing an alternative gas supplier that is an affiliate of,
12or which contracts with, (i) an industry or trade organization
13or association, (ii) a membership organization or association
14that exists for a purpose other than the purchase of gas, or
15(iii) another organization that meets criteria established in a
16rule adopted by the Commission from offering through the
17organization or association services at prices, terms and
18conditions that are available solely to the members of the
19organization or association.
20(Source: P.A. 95-1051, eff. 4-10-09.)
 
21    (220 ILCS 5/19-116 new)
22    Sec. 19-116. Variable gas rate contracts.
23    (a) Beginning July 1, 2019, any rate charged by an
24alternative gas supplier or gas utility other than the gas
25utility in whose service area a retail customer is located to a

 

 

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1customer at the beginning of a contract term or for any renewal
2term, must be either: (1) fixed for no less than a term of 4
3months; or (2) if a month-to-month variable or time-of-use
4rate, such rate must be tied to a publicly available index. The
5alternative gas supplier may include an adder under item (2)
6that may increase no more than 10% during the term of the
7contract and which must be explicitly disclosed to the
8customer.
9    (b) A customer on a month-to-month variable or time-of-use
10product shall have the right to terminate his or her contract
11with the alternative gas supplier or gas utility other than the
12gas utility in whose service area a retail customer is located
13at any time without any termination fee.
14    (c) If any component of the formula in a month-to-month
15variable or time-of-use product is changed at the end of a
16contract term as provided under an existing contract, an
17alternative gas supplier is required to provide a written
18notice to the customer at least 30 days, but no more than 60
19days, prior to the change. Such notice must include a
20side-by-side comparison of the current price and the price for
21the first month of the new formula price.
22    (d) In addition to complying with the Illinois Automatic
23Renewal Act, in the case of an automatic renewal of a contract
24for which the initial term is a fixed price and which changes
25after the initial term, an alternative gas supplier is required
26to provide a written notice to the customer at least 30 days,

 

 

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1but no more than 60 days, prior to the end of the initial
2contract term, which shall include a side-by-side comparison of
3the current price and the new fixed price if renewing to, or
4continuing on, a fixed price product.
5    (e) As of January 1, 2020, a customer enrolled under a new
6contract shall not be renewed to a variable product. In
7addition, a customer that renewed to a fixed price product
8shall have the right to terminate that fixed price product
9without paying an early termination penalty within 10 business
10days after the date of the first bill on the new rate.
11    (f) Each alternative gas supplier shall conduct training
12for an individual representative engaged in in-person
13solicitation and telemarketing to a residential customer on
14behalf of that alternative gas supplier prior to conducting any
15such solicitations on the alternative gas supplier's behalf.
16Each alternative gas supplier shall submit a copy of its
17training material to the Commission on an annual basis and the
18Commission shall have the right to review and require updates
19to the material. After initial training, each alternative gas
20supplier is required to conduct refresher training for an
21individual representative every 6 months.
 
22    (220 ILCS 5/19-117 new)
23    Sec. 19-117. Alternative gas supplier; gas utility
24assistance recipient.
25    (a) Beginning January 1, 2020, an alternative gas supplier

 

 

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1shall not knowingly execute a change in a customer's natural
2gas supplier if the gas utility's records indicate that the
3customer received financial assistance in the last 12 months
4from either the Low Income Home Energy Assistance Program or
5the Percentage of Income Payment Plan unless: (1) the
6customer's change in natural gas supplier is pursuant to a
7government aggregation program (if available); or (2) the
8customer's change in natural gas supplier is pursuant to a
9Commission-approved savings guarantee plan as described in
10subsection (b).
11    (b) Beginning January 1, 2020, an alternative gas supplier
12may apply to the Commission to offer a savings guarantee plan
13to a recipient of Low Income Home Energy Assistance Program
14funding or Percentage of Income Payment Plan funding. The
15Commission shall initiate a public, docketed proceeding to
16consider whether or not to approve an alternative gas
17supplier's application to offer a savings guarantee plan. At a
18minimum, the savings guarantee plan shall charge a customer for
19gas supply an amount that is equal to or less than the amount
20the public gas utility rate for gas supply. The Commission
21shall adopt rules to implement this subsection.
22    (c) An agreement entered into between an alternative gas
23supplier and a customer in violation of this Section is void
24and unenforceable. Before the gas utility executes a change in
25a customer's natural gas supplier, other than a change pursuant
26to a government aggregation program or pursuant to a

 

 

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1Commission-approved savings guarantee plan as described in
2subsection (b), the gas utility shall confirm at the time of
3the request whether its records indicate that the customer has
4received financial assistance from either the Low Income Home
5Energy Assistance Program or the Percentage of Income Payment
6Plan in the last 12 months, and, if so, shall reject such
7change request.
 
8    (220 ILCS 5/19-120)
9    Sec. 19-120. Commission oversight of services provided by
10gas suppliers.
11    (a) The provisions of this Section shall apply only to
12alternative gas suppliers serving or seeking to serve
13residential or small commercial customers and only to the
14extent such alternative gas suppliers provide services to
15residential or small commercial customers.
16    (b) The Commission shall have jurisdiction in accordance
17with the provisions of Article X of this Act either to
18investigate on its own motion in order to determine whether or
19to entertain and dispose of any complaint against any
20alternative gas supplier alleging that:
21        (1) the alternative gas supplier has violated or is in
22    nonconformance with any applicable provisions of Section
23    19-110, 19-111, 19-112, or Section 19-115;
24        (2) an alternative gas supplier has failed to provide
25    service in accordance with the terms of its contract or

 

 

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1    contracts with a customer or customers;
2        (3) the alternative gas supplier has violated or is in
3    nonconformance with the transportation services tariff of,
4    or any of its agreements relating to transportation
5    services with, the gas utility or municipal system
6    providing transportation services; or
7        (4) the alternative gas supplier has violated or failed
8    to comply with the requirements of Sections 8-201 through
9    8-207, 8-301, 8-505, or 8-507 of this Act as made
10    applicable to alternative gas suppliers.
11    (c) The Commission shall have authority after notice and
12hearing held on complaint or on the Commission's own motion to
13order any or all of the following remedies, penalties, or forms
14of relief:
15        (1) order an alternative gas supplier to cease and
16    desist, or correct, any violation of or nonconformance with
17    the provisions of Section 19-110, 19-111, 19-112, or
18    19-115;
19        (2) impose financial penalties for violations of or
20    nonconformances with the provisions of Section 19-110,
21    19-111, 19-112, or 19-115, not to exceed (i) $10,000 per
22    occurrence or (ii) $30,000 per day for those violations or
23    nonconformances which continue after the Commission issues
24    a cease-and-desist order; and
25        (3) alter, modify, revoke, or suspend the certificate
26    of service authority of an alternative gas supplier for

 

 

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1    substantial or repeated violations of or nonconformances
2    with the provisions of Section 19-110, 19-111, 19-112, or
3    19-115.
4    (d) Nothing in this Act shall be construed to limit,
5restrict, or mitigate in any way the power and authority of the
6State's Attorneys or the Attorney General under the Consumer
7Fraud and Deceptive Business Practices Act.
8    (e) In addition to other powers and authority granted to it
9under this Act, the Commission may require an alternative gas
10supplier to enter into a compliance plan if the Commission
11comes into possession of information causing it to conclude
12that an alternative gas supplier is violating this Act or the
13Commission's rules. The Commission may, after concluding such
14violation, and after notice and hearing, enter an order
15directing the alternative gas supplier to implement such
16practices, procedures, oversight, or other measures, or
17refrain from such practices, conduct, or activities, as the
18Commission finds is necessary or reasonable to ensure the
19alternative gas supplier's compliance with the Act and the
20Commission's rules. Failure by an alternative gas supplier to
21implement or comply with a Commission-ordered compliance plan
22is a violation of this Section. The Commission may order a
23compliance plan under such circumstances as in its discretion
24it considers warranted and is not required to order a
25compliance plan prior to taking other enforcement action
26against an alternative gas supplier.

 

 

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1    (f) The Commission shall initiate a proceeding against an
2alternative gas supplier for the following violations of a
3compliance plan and require the alternative gas supplier to
4show cause why its retail license should not be suspended or
5revoked: (1) misrepresenting that it is a gas utility or is
6part of a gas utility or government-approved program (unless
7part of a municipal aggregation plan); (2) misrepresenting the
8cost or savings of a contract; or (3) switching customers
9without authorization. If, after an investigation and hearing
10by the Commission, an alternative gas supplier is found to have
11violated the compliance plan, the Commission: (A) may impose a
12financial penalty on the alternative gas supplier; or (ii) if
13the violation is found to be either intentional or based upon
14gross negligence, shall suspend or revoke the alternative gas
15supplier license, and may impose any financial penalty
16authorized by law.
17    (g) An alternative gas supplier may appeal any suspension
18or revocation, or the imposition of a penalty by the
19Commission. The Commission may reduce the penalty based on the
20following: (1) the nature of the violation found and the
21history of a substantiated complaint or adjudicated violation
22against that alternative gas supplier; (2) the existence or
23strength of a compliance and internal monitoring program; (3)
24whether the alternative gas supplier made a good faith effort
25to compensate a harmed consumer; and (4) other facts or
26circumstances that the Commission deems relevant.

 

 

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1    (h) Any financial penalty collected from an alternative gas
2supplier from an enforcement action shall be used to fund the
3Commission's alternative gas supplier training, oversight, and
4enforcement activities.
5    (i) The Commission shall conduct annual mandatory
6compliance training for each alternative gas supplier for
7purposes of implementing or reinforcing acceptable marketing
8practices.
9(Source: P.A. 95-1051, eff. 4-10-09.)
 
10    (220 ILCS 5/20-140 new)
11    Sec. 20-140. Expanded use of energy savings programs.
12    (a) The Commission may establish a program for promoting
13expanded use of energy savings programs for residential and
14small commercial customers. The program shall include the use
15of thermostats, lights, plugs, and other devices that allow a
16customer to control and reduce his or her energy usage. The
17program shall not discriminate based on brand names and shall
18include ways to promote those devices and incentives for
19residential customers, including both homeowners and renters.
20    (b) On or before September 1, 2019 and every 2 years
21thereafter, the Commission shall initiate a collaborative
22workshop for stakeholders, alternative retail electric
23suppliers, alternative gas suppliers, advocates for energy
24savings, and industry representatives to develop energy
25savings devices and other application or program requirements

 

 

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1or qualifications.
2    (c) Any recommendations arising from the workshop process
3under this Section shall be included in the annual report of
4the Office of Retail Market Development.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".