HB1368 EnrolledLRB097 09296 ASK 49431 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-75 and 1-125 as follows:
 
6    (20 ILCS 3855/1-75)
7    Sec. 1-75. Planning and Procurement Bureau. The Planning
8and Procurement Bureau has the following duties and
9responsibilities:
10        (a) The Planning and Procurement Bureau shall each
11    year, beginning in 2008, develop procurement plans and
12    conduct competitive procurement processes in accordance
13    with the requirements of Section 16-111.5 of the Public
14    Utilities Act for the eligible retail customers of electric
15    utilities that on December 31, 2005 provided electric
16    service to at least 100,000 customers in Illinois. For the
17    purposes of this Section, the term "eligible retail
18    customers" has the same definition as found in Section
19    16-111.5(a) of the Public Utilities Act.
20            (1) The Agency shall each year, beginning in 2008,
21        as needed, issue a request for qualifications for
22        experts or expert consulting firms to develop the
23        procurement plans in accordance with Section 16-111.5

 

 

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

 

 

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

 

 

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

 

 

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1        Commission's ruling.
2            (4) The Agency shall issue requests for proposals
3        to the qualified experts or expert consulting firms to
4        develop a procurement plan for the affected utilities
5        and to serve as procurement administrator.
6            (5) The Agency shall select an expert or expert
7        consulting firm to develop procurement plans based on
8        the proposals submitted and shall award one-year
9        contracts to those selected with an option for the
10        Agency for a one-year renewal.
11            (6) The Agency shall select an expert or expert
12        consulting firm, with approval of the Commission, to
13        serve as procurement administrator based on the
14        proposals submitted. If the Commission rejects, within
15        5 days, the Agency's selection, the Agency shall submit
16        another recommendation within 3 days based on the
17        proposals submitted. The Agency shall award a one-year
18        contract to the expert or expert consulting firm so
19        selected with Commission approval with an option for
20        the Agency for a one-year renewal.
21        (b) The experts or expert consulting firms retained by
22    the Agency shall, as appropriate, prepare procurement
23    plans, and conduct a competitive procurement process as
24    prescribed in Section 16-111.5 of the Public Utilities Act,
25    to ensure 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, for eligible retail customers of electric
3    utilities that on December 31, 2005 provided electric
4    service to at least 100,000 customers in the State of
5    Illinois.
6        (c) Renewable portfolio standard.
7            (1) The procurement plans shall include
8        cost-effective renewable energy resources. A minimum
9        percentage of each utility's total supply to serve the
10        load of eligible retail customers, as defined in
11        Section 16-111.5(a) of the Public Utilities Act,
12        procured for each of the following years shall be
13        generated from cost-effective renewable energy
14        resources: at least 2% by June 1, 2008; at least 4% by
15        June 1, 2009; at least 5% by June 1, 2010; at least 6%
16        by June 1, 2011; at least 7% by June 1, 2012; at least
17        8% by June 1, 2013; at least 9% by June 1, 2014; at
18        least 10% by June 1, 2015; and increasing by at least
19        1.5% each year thereafter to at least 25% by June 1,
20        2025. To the extent that it is available, at least 75%
21        of the renewable energy resources used to meet these
22        standards shall come from wind generation and,
23        beginning on June 1, 2011, at least the following
24        percentages of the renewable energy resources used to
25        meet these standards shall come from photovoltaics on
26        the following schedule: 0.5% by June 1, 2012, 1.5% by

 

 

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1        June 1, 2013; 3% by June 1, 2014; and 6% by June 1,
2        2015 and thereafter. For purposes of this subsection
3        (c), "cost-effective" means that the costs of
4        procuring renewable energy resources do not cause the
5        limit stated in paragraph (2) of this subsection (c) to
6        be exceeded and do not exceed benchmarks based on
7        market prices for renewable energy resources in the
8        region, which shall be developed by the procurement
9        administrator, in consultation with the Commission
10        staff, Agency staff, and the procurement monitor and
11        shall be subject to Commission review and approval.
12            (2) For purposes of this subsection (c), the
13        required procurement of cost-effective renewable
14        energy resources for a particular year shall be
15        measured as a percentage of the actual amount of
16        electricity (megawatt-hours) supplied by the electric
17        utility to eligible retail customers in the planning
18        year ending immediately prior to the procurement. For
19        purposes of this subsection (c), the amount paid per
20        kilowatthour means the total amount paid for electric
21        service expressed on a per kilowatthour basis. For
22        purposes of this subsection (c), the total amount paid
23        for electric service includes without limitation
24        amounts paid for supply, transmission, distribution,
25        surcharges, and add-on taxes.
26            Notwithstanding the requirements of this

 

 

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1        subsection (c), the total of renewable energy
2        resources procured pursuant to the procurement plan
3        for any single year shall be reduced by an amount
4        necessary to limit the annual estimated average net
5        increase due to the costs of these resources included
6        in the amounts paid by eligible retail customers in
7        connection with electric service to:
8                (A) in 2008, no more than 0.5% of the amount
9            paid per kilowatthour by those customers during
10            the year ending May 31, 2007;
11                (B) in 2009, the greater of an additional 0.5%
12            of the amount paid per kilowatthour by those
13            customers during the year ending May 31, 2008 or 1%
14            of the amount paid per kilowatthour by those
15            customers during the year ending May 31, 2007;
16                (C) in 2010, the greater of an additional 0.5%
17            of the amount paid per kilowatthour by those
18            customers during the year ending May 31, 2009 or
19            1.5% of the amount paid per kilowatthour by those
20            customers during the year ending May 31, 2007;
21                (D) in 2011, the greater of an additional 0.5%
22            of the amount paid per kilowatthour by those
23            customers during the year ending May 31, 2010 or 2%
24            of the amount paid per kilowatthour by those
25            customers during the year ending May 31, 2007; and
26                (E) thereafter, the amount of renewable energy

 

 

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1            resources procured pursuant to the procurement
2            plan for any single year shall be reduced by an
3            amount necessary to limit the estimated average
4            net increase due to the cost of these resources
5            included in the amounts paid by eligible retail
6            customers in connection with electric service to
7            no more than the greater of 2.015% of the amount
8            paid per kilowatthour by those customers during
9            the year ending May 31, 2007 or the incremental
10            amount per kilowatthour paid for these resources
11            in 2011.
12            No later than June 30, 2011, the Commission shall
13        review the limitation on the amount of renewable energy
14        resources procured pursuant to this subsection (c) and
15        report to the General Assembly its findings as to
16        whether that limitation unduly constrains the
17        procurement of cost-effective renewable energy
18        resources.
19            (3) Through June 1, 2011, renewable energy
20        resources shall be counted for the purpose of meeting
21        the renewable energy standards set forth in paragraph
22        (1) of this subsection (c) only if they are generated
23        from facilities located in the State, provided that
24        cost-effective renewable energy resources are
25        available from those facilities. If those
26        cost-effective resources are not available in

 

 

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1        Illinois, they shall be procured in states that adjoin
2        Illinois and may be counted towards compliance. If
3        those cost-effective resources are not available in
4        Illinois or in states that adjoin Illinois, they shall
5        be purchased elsewhere and shall be counted towards
6        compliance. After June 1, 2011, cost-effective
7        renewable energy resources located in Illinois and in
8        states that adjoin Illinois may be counted towards
9        compliance with the standards set forth in paragraph
10        (1) of this subsection (c). If those cost-effective
11        resources are not available in Illinois or in states
12        that adjoin Illinois, they shall be purchased
13        elsewhere and shall be counted towards compliance.
14            (4) The electric utility shall retire all
15        renewable energy credits used to comply with the
16        standard.
17            (5) Beginning with the year commencing June 1,
18        2010, an electric utility subject to this subsection
19        (c) shall apply the lesser of the maximum alternative
20        compliance payment rate or the most recent estimated
21        alternative compliance payment rate for its service
22        territory for the corresponding compliance period,
23        established pursuant to subsection (d) of Section
24        16-115D of the Public Utilities Act to its retail
25        customers that take service pursuant to the electric
26        utility's hourly pricing tariff or tariffs. The

 

 

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1        electric utility shall retain all amounts collected as
2        a result of the application of the alternative
3        compliance payment rate or rates to such customers,
4        and, beginning in 2011, the utility shall include in
5        the information provided under item (1) of subsection
6        (d) of Section 16-111.5 of the Public Utilities Act the
7        amounts collected under the alternative compliance
8        payment rate or rates for the prior year ending May 31.
9        Notwithstanding any limitation on the procurement of
10        renewable energy resources imposed by item (2) of this
11        subsection (c), the Agency shall increase its spending
12        on the purchase of renewable energy resources to be
13        procured by the electric utility for the next plan year
14        by an amount equal to the amounts collected by the
15        utility under the alternative compliance payment rate
16        or rates in the prior year ending May 31. Beginning
17        April 1, 2012, and each year thereafter, the Agency
18        shall prepare a public report for the General Assembly
19        and Illinois Commerce Commission that shall include,
20        but not necessarily be limited to:
21                (A) a comparison of the costs associated with
22            the Agency's procurement of renewable energy
23            resources to (1) the Agency's costs associated
24            with electricity generated by other types of
25            generation facilities and (2) the benefits
26            associated with the Agency's procurement of

 

 

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1            renewable energy resources; and
2                (B) an analysis of the rate impacts associated
3            with the Illinois Power Agency's procurement of
4            renewable resources, including, but not limited
5            to, any long-term contracts, on the eligible
6            retail customers of electric utilities.
7            The analysis shall include the Agency's estimate
8        of the total dollar impact that the Agency's
9        procurement of renewable resources has had on the
10        annual electricity bills of the customer classes that
11        comprise each eligible retail customer class taking
12        service from an electric utility. The Agency's report
13        shall also analyze how the operation of the alternative
14        compliance payment mechanism, any long-term contracts,
15        or other aspects of the applicable renewable portfolio
16        standards impacts the rates of customers of
17        alternative retail electric suppliers.
18    (d) Clean coal portfolio standard.
19        (1) The procurement plans shall include electricity
20    generated using clean coal. Each utility shall enter into
21    one or more sourcing agreements with the initial clean coal
22    facility, as provided in paragraph (3) of this subsection
23    (d), covering electricity generated by the initial clean
24    coal facility representing at least 5% of each utility's
25    total supply to serve the load of eligible retail customers
26    in 2015 and each year thereafter, as described in paragraph

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB1368 Enrolled- 21 -LRB097 09296 ASK 49431 b

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

 

 

HB1368 Enrolled- 22 -LRB097 09296 ASK 49431 b

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

 

 

HB1368 Enrolled- 23 -LRB097 09296 ASK 49431 b

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

 

 

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1            shall be reviewed annually by an independent
2            expert retained by the owner of the initial clean
3            coal facility, with the advance written approval
4            of the Attorney General. The Commission may, in the
5            course of the review specified in item (vii),
6            reduce the allowable return on equity for the
7            facility if the facility wilfully fails to comply
8            with the carbon capture and sequestration
9            requirements set forth in this item (v);
10                (vi) include limits on, and accordingly
11            provide for modification of, the amount the
12            utility is required to source under the sourcing
13            agreement consistent with paragraph (2) of this
14            subsection (d);
15                (vii) require Commission review: (1) to
16            determine the justness, reasonableness, and
17            prudence of the inputs to the formula referenced in
18            subparagraphs (A)(i) through (A)(iii) of paragraph
19            (3) of this subsection (d), prior to an adjustment
20            in those inputs including, without limitation, the
21            capital structure and return on equity, fuel
22            costs, and other operations and maintenance costs
23            and (2) to approve the costs to be passed through
24            to customers under the sourcing agreement by which
25            the utility satisfies its statutory obligations.
26            Commission review shall occur no less than every 3

 

 

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

 

 

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

 

 

HB1368 Enrolled- 27 -LRB097 09296 ASK 49431 b

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

 

 

HB1368 Enrolled- 28 -LRB097 09296 ASK 49431 b

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

 

 

HB1368 Enrolled- 29 -LRB097 09296 ASK 49431 b

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

 

 

HB1368 Enrolled- 30 -LRB097 09296 ASK 49431 b

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

 

 

HB1368 Enrolled- 31 -LRB097 09296 ASK 49431 b

1            maintenance cost quote, excluding delivered fuel
2            costs will be developed based on the inputs
3            provided by duly licensed engineering and
4            construction firms performing the construction
5            cost quote, potential vendors under long-term
6            service agreements and plant operating agreements,
7            or recognized third party plant operator or
8            operators.
9                The operating and maintenance cost quote
10            (including the cost of the front end engineering
11            and design study) shall be expressed in nominal
12            dollars as of the date that the quote is prepared
13            and shall include (1) taxes, insurance, and other
14            owner's costs, and (2) an assumed escalation in
15            materials and labor beyond the date as of which the
16            operating and maintenance cost quote is expressed.
17            (D) The facility cost report shall also include (i)
18        an analysis of the initial clean coal facility's
19        ability to deliver power and energy into the applicable
20        regional transmission organization markets and (ii) an
21        analysis of the expected capacity factor for the
22        initial clean coal facility.
23            (E) Amounts paid to third parties unrelated to the
24        owner or owners of the initial clean coal facility to
25        prepare the core plant construction cost quote,
26        including the front end engineering and design study,

 

 

HB1368 Enrolled- 32 -LRB097 09296 ASK 49431 b

1        and the operating and maintenance cost quote will be
2        reimbursed through Coal Development Bonds.
3        (5) Re-powering and retrofitting coal-fired power
4    plants previously owned by Illinois utilities to qualify as
5    clean coal facilities. During the 2009 procurement
6    planning process and thereafter, the Agency and the
7    Commission shall consider sourcing agreements covering
8    electricity generated by power plants that were previously
9    owned by Illinois utilities and that have been or will be
10    converted into clean coal facilities, as defined by Section
11    1-10 of this Act. Pursuant to such procurement planning
12    process, the owners of such facilities may propose to the
13    Agency sourcing agreements with utilities and alternative
14    retail electric suppliers required to comply with
15    subsection (d) of this Section and item (5) of subsection
16    (d) of Section 16-115 of the Public Utilities Act, covering
17    electricity generated by such facilities. In the case of
18    sourcing agreements that are power purchase agreements,
19    the contract price for electricity sales shall be
20    established on a cost of service basis. In the case of
21    sourcing agreements that are contracts for differences,
22    the contract price from which the reference price is
23    subtracted shall be established on a cost of service basis.
24    The Agency and the Commission may approve any such utility
25    sourcing agreements that do not exceed cost-based
26    benchmarks developed by the procurement administrator, in

 

 

HB1368 Enrolled- 33 -LRB097 09296 ASK 49431 b

1    consultation with the Commission staff, Agency staff and
2    the procurement monitor, subject to Commission review and
3    approval. The Commission shall have authority to inspect
4    all books and records associated with these clean coal
5    facilities during the term of any such contract.
6        (6) Costs incurred under this subsection (d) or
7    pursuant to a contract entered into under this subsection
8    (d) shall be deemed prudently incurred and reasonable in
9    amount and the electric utility shall be entitled to full
10    cost recovery pursuant to the tariffs filed with the
11    Commission.
12        (e) The draft procurement plans are subject to public
13    comment, as required by Section 16-111.5 of the Public
14    Utilities Act.
15        (f) The Agency shall submit the final procurement plan
16    to the Commission. The Agency shall revise a procurement
17    plan if the Commission determines that it does not meet the
18    standards set forth in Section 16-111.5 of the Public
19    Utilities Act.
20        (g) The Agency shall assess fees to each affected
21    utility to recover the costs incurred in preparation of the
22    annual procurement plan for the utility.
23        (h) The Agency shall assess fees to each bidder to
24    recover the costs incurred in connection with a competitive
25    procurement process.
26(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09;

 

 

HB1368 Enrolled- 34 -LRB097 09296 ASK 49431 b

196-159, eff. 8-10-09; 96-1437, eff. 8-17-10.)
 
2    (20 ILCS 3855/1-125)
3    Sec. 1-125. Agency annual reports. By December 1, 2011 and
4each December 1 thereafter, the The Agency shall report
5annually to the Governor and the General Assembly on the
6operations and transactions of the Agency. The annual report
7shall include, but not be limited to, each of the following:
8        (1) The quantity, price, and term of all contracts for
9    electricity procured under the procurement plans for
10    electric utilities.
11        (2) The quantity, price, and rate impact of all
12    renewable resources purchased under the electricity
13    procurement plans for electric utilities.
14        (3) The quantity, price, and rate impact of all energy
15    efficiency and demand response measures purchased for
16    electric utilities.
17        (4) The amount of power and energy produced by each
18    Agency facility.
19        (5) The quantity of electricity supplied by each Agency
20    facility to municipal electric systems, governmental
21    aggregators, or rural electric cooperatives in Illinois.
22        (6) The revenues as allocated by the Agency to each
23    facility.
24        (7) The costs as allocated by the Agency to each
25    facility.

 

 

HB1368 Enrolled- 35 -LRB097 09296 ASK 49431 b

1        (8) The accumulated depreciation for each facility.
2        (9) The status of any projects under development.
3        (10) Basic financial and operating information
4    specifically detailed for the reporting year and
5    including, but not limited to, income and expense
6    statements, balance sheets, and changes in financial
7    position, all in accordance with generally accepted
8    accounting principles, debt structure, and a summary of
9    funds on a cash basis.
10        (11) The quantity, price, and rate impact of all
11    renewable resources purchased pursuant to long-term
12    contracts under the electricity procurement plans for
13    electric utilities.
14(Source: P.A. 95-481, eff. 8-28-07.)
 
15    Section 10. The Public Utilities Act is amended by changing
16Section 16-115D as follows:
 
17    (220 ILCS 5/16-115D)
18    Sec. 16-115D. Renewable portfolio standard for alternative
19retail electric suppliers and electric utilities operating
20outside their service territories.
21    (a) An alternative retail electric supplier shall be
22responsible for procuring cost-effective renewable energy
23resources as required under item (5) of subsection (d) of
24Section 16-115 of this Act as outlined herein:

 

 

HB1368 Enrolled- 36 -LRB097 09296 ASK 49431 b

1        (1) The definition of renewable energy resources
2    contained in Section 1-10 of the Illinois Power Agency Act
3    applies to all renewable energy resources required to be
4    procured by alternative retail electric suppliers.
5        (2) The quantity of renewable energy resources shall be
6    measured as a percentage of the actual amount of metered
7    electricity (megawatt-hours) delivered by the alternative
8    retail electric supplier to Illinois retail customers
9    during the 12-month period June 1 through May 31,
10    commencing June 1, 2009, and the comparable 12-month period
11    in each year thereafter except as provided in item (6) of
12    this subsection (a).
13        (3) The quantity of renewable energy resources shall be
14    in amounts at least equal to the annual percentages set
15    forth in item (1) of subsection (c) of Section 1-75 of the
16    Illinois Power Agency Act. At least 60% of the renewable
17    energy resources procured pursuant to items (1) through (3)
18    of subsection (b) of this Section shall come from wind
19    generation and, starting June 1, 2015, at least 6% of the
20    renewable energy resources procured pursuant to items (1)
21    through (3) of subsection (b) of this Section shall come
22    from solar photovoltaics. If, in any given year, an
23    alternative retail electric supplier does not purchase at
24    least these levels of renewable energy resources, then the
25    alternative retail electric supplier shall make
26    alternative compliance payments, as described in

 

 

HB1368 Enrolled- 37 -LRB097 09296 ASK 49431 b

1    subsection (d) of this Section.
2        (4) The quantity and source of renewable energy
3    resources shall be independently verified through the PJM
4    Environmental Information System Generation Attribute
5    Tracking System (PJM-GATS) or the Midwest Renewable Energy
6    Tracking System (M-RETS), which shall document the
7    location of generation, resource type, month, and year of
8    generation for all qualifying renewable energy resources
9    that an alternative retail electric supplier uses to comply
10    with this Section. No later than June 1, 2009, the Illinois
11    Power Agency shall provide PJM-GATS, M-RETS, and
12    alternative retail electric suppliers with all information
13    necessary to identify resources located in Illinois,
14    within states that adjoin Illinois or within portions of
15    the PJM and MISO footprint in the United States that
16    qualify under the definition of renewable energy resources
17    in Section 1-10 of the Illinois Power Agency Act for
18    compliance with this Section 16-115D. Alternative retail
19    electric suppliers shall not be subject to the requirements
20    in item (3) of subsection (c) of Section 1-75 of the
21    Illinois Power Agency Act.
22        (5) All renewable energy credits used to comply with
23    this Section shall be permanently retired.
24        (6) The required procurement of renewable energy
25    resources by an alternative retail electric supplier shall
26    apply to all metered electricity delivered to Illinois

 

 

HB1368 Enrolled- 38 -LRB097 09296 ASK 49431 b

1    retail customers by the alternative retail electric
2    supplier pursuant to contracts executed or extended after
3    March 15, 2009.
4    (b) An alternative retail electric supplier shall comply
5with the renewable energy portfolio standards by making an
6alternative compliance payment, as described in subsection (d)
7of this Section, to cover at least one-half of the alternative
8retail electric supplier's compliance obligation and any one or
9combination of the following means to cover the remainder of
10the alternative retail electric supplier's compliance
11obligation:
12        (1) Generating electricity using renewable energy
13    resources identified pursuant to item (4) of subsection (a)
14    of this Section.
15        (2) Purchasing electricity generated using renewable
16    energy resources identified pursuant to item (4) of
17    subsection (a) of this Section through an energy contract.
18        (3) Purchasing renewable energy credits from renewable
19    energy resources identified pursuant to item (4) of
20    subsection (a) of this Section.
21        (4) Making an alternative compliance payment as
22    described in subsection (d) of this Section.
23    (c) Use of renewable energy credits.
24        (1) Renewable energy credits that are not used by an
25    alternative retail electric supplier to comply with a
26    renewable portfolio standard in a compliance year may be

 

 

HB1368 Enrolled- 39 -LRB097 09296 ASK 49431 b

1    banked and carried forward up to 2 12-month compliance
2    periods after the compliance period in which the credit was
3    generated for the purpose of complying with a renewable
4    portfolio standard in those 2 subsequent compliance
5    periods. For the 2009-2010 and 2010-2011 compliance
6    periods, an alternative retail electric supplier may use
7    renewable credits generated after December 31, 2008 and
8    before June 1, 2009 to comply with this Section.
9        (2) An alternative retail electric supplier is
10    responsible for demonstrating that a renewable energy
11    credit used to comply with a renewable portfolio standard
12    is derived from a renewable energy resource and that the
13    alternative retail electric supplier has not used, traded,
14    sold, or otherwise transferred the credit.
15        (3) The same renewable energy credit may be used by an
16    alternative retail electric supplier to comply with a
17    federal renewable portfolio standard and a renewable
18    portfolio standard established under this Act. An
19    alternative retail electric supplier that uses a renewable
20    energy credit to comply with a renewable portfolio standard
21    imposed by any other state may not use the same credit to
22    comply with a renewable portfolio standard established
23    under this Act.
24    (d) Alternative compliance payments.
25        (1) The Commission shall establish and post on its
26    website, within 5 business days after entering an order

 

 

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1    approving a procurement plan pursuant to Section 1-75 of
2    the Illinois Power Agency Act, maximum alternative
3    compliance payment rates, expressed on a per kilowatt-hour
4    basis, that will be applicable in the first compliance
5    period following the plan approval. A separate maximum
6    alternative compliance payment rate shall be established
7    for the service territory of each electric utility that is
8    subject to subsection (c) of Section 1-75 of the Illinois
9    Power Agency Act. Each maximum alternative compliance
10    payment rate shall be equal to the maximum allowable annual
11    estimated average net increase due to the costs of the
12    utility's purchase of renewable energy resources included
13    in the amounts paid by eligible retail customers in
14    connection with electric service, as described in item (2)
15    of subsection (c) of Section 1-75 of the Illinois Power
16    Agency Act for the compliance period, and as established in
17    the approved procurement plan. Following each procurement
18    event through which renewable energy resources are
19    purchased for one or more of these utilities for the
20    compliance period, the Commission shall establish and post
21    on its website estimates of the alternative compliance
22    payment rates, expressed on a per kilowatt-hour basis, that
23    shall apply for that compliance period. Posting of the
24    estimates shall occur no later than 10 business days
25    following the procurement event, however, the Commission
26    shall not be required to establish and post such estimates

 

 

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1    more often than once per calendar month. By July 1 of each
2    year, the Commission shall establish and post on its
3    website the actual alternative compliance payment rates
4    for the preceding compliance year. For compliance years
5    beginning prior to June 1, 2014, each alternative
6    compliance payment rate shall be equal to the total amount
7    of dollars that the utility contracted to spend on
8    renewable resources, excepting the additional incremental
9    cost attributable to solar resources, for the compliance
10    period divided by the forecasted load of eligible retail
11    customers, at the customers' meters, as previously
12    established in the Commission-approved procurement plan
13    for that compliance year. For compliance years commencing
14    on or after June 1, 2014, each alternative compliance
15    payment rate shall be equal to the total amount of dollars
16    that the utility contracted to spend on all renewable
17    resources for the compliance period divided by the
18    forecasted load of eligible retail customers, at the
19    customers' meters, as previously established in the
20    Commission-approved procurement plan for that compliance
21    year. The actual alternative compliance payment rates may
22    not exceed the maximum alternative compliance payment
23    rates established for the compliance period. For purposes
24    of this subsection (d), the term "eligible retail
25    customers" has the same meaning as found in Section
26    16-111.5 of this Act.

 

 

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1        (2) In any given compliance year, an alternative retail
2    electric supplier may elect to use alternative compliance
3    payments to comply with all or a part of the applicable
4    renewable portfolio standard. In the event that an
5    alternative retail electric supplier elects to make
6    alternative compliance payments to comply with all or a
7    part of the applicable renewable portfolio standard, such
8    payments shall be made by September 1, 2010 for the period
9    of June 1, 2009 to May 1, 2010 and by September 1 of each
10    year thereafter for the subsequent compliance period, in
11    the manner and form as determined by the Commission. Any
12    election by an alternative retail electric supplier to use
13    alternative compliance payments is subject to review by the
14    Commission under subsection (e) of this Section.
15        (3) An alternative retail electric supplier's
16    alternative compliance payments shall be computed
17    separately for each electric utility's service territory
18    within which the alternative retail electric supplier
19    provided retail service during the compliance period,
20    provided that the electric utility was subject to
21    subsection (c) of Section 1-75 of the Illinois Power Agency
22    Act. For each service territory, the alternative retail
23    electric supplier's alternative compliance payment shall
24    be equal to (i) the actual alternative compliance payment
25    rate established in item (1) of this subsection (d),
26    multiplied by (ii) the actual amount of metered electricity

 

 

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1    delivered by the alternative retail electric supplier to
2    retail customers within the service territory during the
3    compliance period, multiplied by (iii) the result of one
4    minus the ratios of the quantity of renewable energy
5    resources used by the alternative retail electric supplier
6    to comply with the requirements of this Section within the
7    service territory to the product of the percentage of
8    renewable energy resources required under item (3) of
9    subsection (a) of this Section and the actual amount of
10    metered electricity delivered by the alternative retail
11    electric supplier to retail customers within the service
12    territory during the compliance period.
13        (4) All alternative compliance payments by alternative
14    retail electric suppliers shall be deposited in the
15    Illinois Power Agency Renewable Energy Resources Fund and
16    used to purchase renewable energy credits, in accordance
17    with Section 1-56 of the Illinois Power Agency Act.
18    Beginning April 1, 2012 and by April 1 of each year
19    thereafter, the Illinois Power Agency shall submit an
20    annual report to the General Assembly, the Commission, and
21    alternative retail electric suppliers that shall include,
22    but not be limited to:
23            (A) the total amount of alternative compliance
24        payments received in aggregate from alternative retail
25        electric suppliers by planning year for all previous
26        planning years in which the alternative compliance

 

 

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1        payment was in effect;
2            (B) the amount of those payments utilized to
3        purchased renewable energy credits itemized by the
4        date of each procurement in which the payments were
5        utilized; and
6            (C) the unused and remaining balance in the Agency
7        Renewable Energy Resources Fund attributable to those
8        payments.
9        (5) The Commission, in consultation with the Illinois
10    Power Agency, shall establish a process or proceeding to
11    consider the impact of a federal renewable portfolio
12    standard, if enacted, on the operation of the alternative
13    compliance mechanism, which shall include, but not be
14    limited to, developing, to the extent permitted by the
15    applicable federal statute, an appropriate methodology to
16    apportion renewable energy credits retired as a result of
17    alternative compliance payments made in accordance with
18    this Section. The Commission shall commence any such
19    process or proceeding within 35 days after enactment of a
20    federal renewable portfolio standard.
21    (e) Each alternative retail electric supplier shall, by
22September 1, 2010 and by September 1 of each year thereafter,
23prepare and submit to the Commission a report, in a format to
24be specified by the Commission on or before December 31, 2009,
25that provides information certifying compliance by the
26alternative retail electric supplier with this Section,

 

 

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1including copies of all PJM-GATS and M-RETS reports, and
2documentation relating to banking, retiring renewable energy
3credits, and any other information that the Commission
4determines necessary to ensure compliance with this Section. An
5alternative retail electric supplier may file commercially or
6financially sensitive information or trade secrets with the
7Commission as provided under the rules of the Commission. To be
8filed confidentially, the information shall be accompanied by
9an affidavit that sets forth both the reasons for the
10confidentiality and a public synopsis of the information.
11    (f) The Commission may initiate a contested case to review
12allegations that the alternative retail electric supplier has
13violated this Section, including an order issued or rule
14promulgated under this Section. In any such proceeding, the
15alternative retail electric supplier shall have the burden of
16proof. If the Commission finds, after notice and hearing, that
17an alternative retail electric supplier has violated this
18Section, then the Commission shall issue an order requiring the
19alternative retail electric supplier to:
20        (1) immediately comply with this Section; and
21        (2) if the violation involves a failure to procure the
22    requisite quantity of renewable energy resources or pay the
23    applicable alternative compliance payment by the annual
24    deadline, the Commission shall require the alternative
25    retail electric supplier to double the applicable
26    alternative compliance payment that would otherwise be

 

 

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1    required to bring the alternative retail electric supplier
2    into compliance with this Section.
3    If an alternative retail electric supplier fails to comply
4with the renewable energy resource portfolio requirement in
5this Section more than once in a 5-year period, then the
6Commission shall revoke the alternative electric supplier's
7certificate of service authority. The Commission shall not
8accept an application for a certificate of service authority
9from an alternative retail electric supplier that has lost
10certification under this subsection (f), or any corporate
11affiliate thereof, for at least one year after the date of
12revocation.
13    (g) All of the provisions of this Section apply to electric
14utilities operating outside their service area except under
15item (2) of subsection (a) of this Section the quantity of
16renewable energy resources shall be measured as a percentage of
17the actual amount of electricity (megawatt-hours) supplied in
18the State outside of the utility's service territory during the
1912-month period June 1 through May 31, commencing June 1, 2009,
20and the comparable 12-month period in each year thereafter
21except as provided in item (6) of subsection (a) of this
22Section.
23    If any such utility fails to procure the requisite quantity
24of renewable energy resources by the annual deadline, then the
25Commission shall require the utility to double the alternative
26compliance payment that would otherwise be required to bring

 

 

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1the utility into compliance with this Section.
2    If any such utility fails to comply with the renewable
3energy resource portfolio requirement in this Section more than
4once in a 5-year period, then the Commission shall order the
5utility to cease all sales outside of the utility's service
6territory for a period of at least one year.
7    (h) The provisions of this Section and the provisions of
8subsection (d) of Section 16-115 of this Act relating to
9procurement of renewable energy resources shall not apply to an
10alternative retail electric supplier that operates a combined
11heat and power system in this State or that has a corporate
12affiliate that operates such a combined heat and power system
13in this State that supplies electricity primarily to or for the
14benefit of: (i) facilities owned by the supplier, its
15subsidiary, or other corporate affiliate; (ii) facilities
16electrically integrated with the electrical system of
17facilities owned by the supplier, its subsidiary, or other
18corporate affiliate; or (iii) facilities that are adjacent to
19the site on which the combined heat and power system is
20located.
21(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
2296-1437, eff. 8-17-10.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.