|
Rep. Ann Williams
Filed: 5/23/2011
| | 09700SB1653ham001 | | LRB097 05721 ASK 56016 a |
|
|
1 | | AMENDMENT TO SENATE BILL 1653
|
2 | | AMENDMENT NO. ______. Amend Senate Bill 1653 by replacing |
3 | | everything after the enacting clause with the following:
|
4 | | "Section 1. Short title. This amendatory Act may be |
5 | | referred to as the Illinois Renewable Electricity Resources |
6 | | Act. |
7 | | Section 5. The Illinois Power Agency Act is amended by |
8 | | changing Sections 1-10, 1-20, 1-56, and 1-75 and by adding |
9 | | Sections 1-76, 1-76.5, 1-77, 1-78, and 1-79 as follows:
|
10 | | (20 ILCS 3855/1-10)
|
11 | | Sec. 1-10. Definitions. |
12 | | "Agency" means the Illinois Power Agency. |
13 | | "Agency loan agreement" means any agreement pursuant to |
14 | | which the Illinois Finance Authority agrees to loan the |
15 | | proceeds of revenue bonds issued with respect to a project to |
|
| | 09700SB1653ham001 | - 2 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the Agency upon terms providing for loan repayment installments |
2 | | at least sufficient to pay when due all principal of, interest |
3 | | and premium, if any, on those revenue bonds, and providing for |
4 | | maintenance, insurance, and other matters in respect of the |
5 | | project. |
6 | | "Authority" means the Illinois Finance Authority. |
7 | | "Bundled renewable energy resources" means electricity |
8 | | generated by a renewable energy resource and its associated |
9 | | renewable energy credit. |
10 | | "Clean coal electricity buyer" means (1) each electric |
11 | | utility and (2) each alternative electric retail supplier that |
12 | | is subject to the requirements of subsection (d) of Section |
13 | | 1-75 of this Act and paragraph (5) of subsection (d) of Section |
14 | | 16-115 of the Public Utilities Act. |
15 | | "Clean coal energy" means all energy produced by the |
16 | | initial clean coal facility. |
17 | | "Clean coal facility" means an electric generating |
18 | | facility that uses primarily coal as a feedstock and that |
19 | | captures and sequesters carbon dioxide emissions at the |
20 | | following levels: at least 50% of the total carbon dioxide |
21 | | emissions that the facility would otherwise emit if, at the |
22 | | time construction commences, the facility is scheduled to |
23 | | commence operation before 2016, at least 70% of the total |
24 | | carbon dioxide emissions that the facility would otherwise emit |
25 | | if, at the time construction commences, the facility is |
26 | | scheduled to commence operation during 2016 or 2017, and at |
|
| | 09700SB1653ham001 | - 3 - | LRB097 05721 ASK 56016 a |
|
|
1 | | least 90% of the total carbon dioxide emissions that the |
2 | | facility would otherwise emit if, at the time construction |
3 | | commences, the facility is scheduled to commence operation |
4 | | after 2017. The power block of the clean coal facility shall |
5 | | not exceed allowable emission rates for sulfur dioxide, |
6 | | nitrogen oxides, carbon monoxide, particulates and mercury for |
7 | | a natural gas-fired combined-cycle facility the same size as |
8 | | and in the same location as the clean coal facility at the time |
9 | | the clean coal facility obtains an approved air permit. All |
10 | | coal used by a clean coal facility shall have high volatile |
11 | | bituminous rank and greater than 1.7 pounds of sulfur per |
12 | | million btu content, unless the clean coal facility does not |
13 | | use gasification technology and was operating as a conventional |
14 | | coal-fired electric generating facility on June 1, 2009 (the |
15 | | effective date of Public Act 95-1027). |
16 | | "Clean coal fraction" means, with respect to a clean coal |
17 | | electricity buyer for a month, a fraction, the numerator of |
18 | | which is such clean coal electricity buyer's retail market |
19 | | sales of electricity (expressed in kilowatthours sold) in the |
20 | | State during the third month preceding the applicable month and |
21 | | the denominator of which is the total retail market sales of |
22 | | electricity (expressed in kilowatthours sold) in the State by |
23 | | all clean coal electricity buyers during such third month |
24 | | preceding the applicable month, as such fraction may be |
25 | | adjusted pursuant to subparagraph (E) of paragraph (2) of |
26 | | subsection (d) of Section 1-75 of this Act. |
|
| | 09700SB1653ham001 | - 4 - | LRB097 05721 ASK 56016 a |
|
|
1 | | "Clean coal SNG facility" means a facility that uses a |
2 | | gasification process to produce substitute natural gas, that |
3 | | sequesters at least 90% of the total carbon dioxide emissions |
4 | | that the facility would otherwise emit and that uses petroleum |
5 | | coke or coal as a feedstock, with all such coal having a high |
6 | | bituminous rank and greater than 1.7 pounds of sulfur per |
7 | | million btu content. |
8 | | "Commission" means the Illinois Commerce Commission. |
9 | | "Costs incurred in connection with the development and |
10 | | construction of a facility" means: |
11 | | (1) the cost of acquisition of all real property and |
12 | | improvements in connection therewith and equipment and |
13 | | other property, rights, and easements acquired that are |
14 | | deemed necessary for the operation and maintenance of the |
15 | | facility; |
16 | | (2) financing costs with respect to bonds, notes, and |
17 | | other evidences of indebtedness of the Agency; |
18 | | (3) all origination, commitment, utilization, |
19 | | facility, placement, underwriting, syndication, credit |
20 | | enhancement, and rating agency fees; |
21 | | (4) engineering, design, procurement, consulting, |
22 | | legal, accounting, title insurance, survey, appraisal, |
23 | | escrow, trustee, collateral agency, interest rate hedging, |
24 | | interest rate swap, capitalized interest and other |
25 | | financing costs, and other expenses for professional |
26 | | services; and |
|
| | 09700SB1653ham001 | - 5 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (5) the costs of plans, specifications, site study and |
2 | | investigation, installation, surveys, other Agency costs |
3 | | and estimates of costs, and other expenses necessary or |
4 | | incidental to determining the feasibility of any project, |
5 | | together with such other expenses as may be necessary or |
6 | | incidental to the financing, insuring, acquisition, and |
7 | | construction of a specific project and placing that project |
8 | | in operation. |
9 | | "Delivery services" has the same definition as found in |
10 | | Section 16-102 of the Public Utilities Act. |
11 | | "Delivery services non-eligible retail customers" means |
12 | | the retail customers in an electric utility's service area for |
13 | | which the electric utility provides delivery services, but |
14 | | which are not eligible retail customers as defined in |
15 | | subsection (a) of Section 1-75 of this Act. |
16 | | "Department" means the Department of Commerce and Economic |
17 | | Opportunity. |
18 | | "Director" means the Director of the Illinois Power Agency. |
19 | | "Demand-response" means measures that decrease peak |
20 | | electricity demand or shift demand from peak to off-peak |
21 | | periods. |
22 | | "Distributed renewable energy generation device" means a |
23 | | device that is: |
24 | | (1) powered by wind, solar thermal energy, |
25 | | photovoltaic cells and panels, biodiesel, crops and |
26 | | untreated and unadulterated organic waste biomass, tree |
|
| | 09700SB1653ham001 | - 6 - | LRB097 05721 ASK 56016 a |
|
|
1 | | waste, and hydropower that does not involve new |
2 | | construction or significant expansion of hydropower dams; |
3 | | (2) interconnected at the distribution system level of |
4 | | either an electric utility as defined in this Section, an |
5 | | alternative retail electric supplier as defined in Section |
6 | | 16-102 of the Public Utilities Act, a municipal utility as |
7 | | defined in Section 3-105 of the Public Utilities Act, or a |
8 | | rural electric cooperative as defined in Section 3-119 of |
9 | | the Public Utilities Act; and |
10 | | (3) located on the customer side of the customer's |
11 | | electric meter and is generally used to offset that |
12 | | customer's electricity load. |
13 | | "Energy efficiency" means measures that reduce the amount |
14 | | of electricity or natural gas required to achieve a given end |
15 | | use. |
16 | | "Electric utility" has the same definition as found in |
17 | | Section 16-102 of the Public Utilities Act. |
18 | | "Excluded renewable energy resources contract costs" means |
19 | | the amount by which the costs of renewable energy resources, |
20 | | purchased for a particular year to meet the renewable energy |
21 | | resources standards of paragraph (1) of subsection (c) of |
22 | | Section 1-75 of this Act applicable to the load of an electric |
23 | | utility's eligible retail customers pursuant to a contract with |
24 | | a term greater than one year that the electric utility entered |
25 | | into in a previous year in accordance with a procurement |
26 | | approved by the Commission pursuant to Section 16-111.5 of the |
|
| | 09700SB1653ham001 | - 7 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Public Utilities Act, exceed the limitations imposed by |
2 | | paragraph (2) of subsection (c) of Section 1-75 of this Act for |
3 | | the particular year. |
4 | | "Facility" means an electric generating unit or a |
5 | | co-generating unit that produces electricity along with |
6 | | related equipment necessary to connect the facility to an |
7 | | electric transmission or distribution system. |
8 | | "Governmental aggregator" means one or more units of local |
9 | | government that individually or collectively procure |
10 | | electricity to serve residential retail electrical loads |
11 | | located within its or their jurisdiction. |
12 | | "Initial clean coal facility" means an electric generating |
13 | | facility using gasification technology that: (1) has a |
14 | | nameplate capacity of at least 500 MW; (2) irrevocably commits |
15 | | in its proposed sourcing agreement to use coal for at least 50% |
16 | | of the total feedstock over the term of a sourcing agreement, |
17 | | with all coal having high volatile bituminous rank and greater |
18 | | than 1.7 pounds of sulfur per million btu content; (3) is |
19 | | designed to capture and sequester at least 90% of the carbon |
20 | | dioxide emissions that the portion of the facility, if any, |
21 | | that produces SNG would otherwise emit and at least 50% of the |
22 | | total carbon dioxide emissions that the facility as a whole |
23 | | would otherwise emit; (4) absent an appeal of a permit or |
24 | | regulatory order, is reasonably capable of achieving |
25 | | commercial operation by no later than 5 years after the |
26 | | execution of the sourcing agreements; (5) has a feasible |
|
| | 09700SB1653ham001 | - 8 - | LRB097 05721 ASK 56016 a |
|
|
1 | | financing plan; (6) has a reliable and cost-effective |
2 | | transmission plan to deliver energy to Commonwealth Edison |
3 | | Company and Ameren Illinois; and (7) has a power block designed |
4 | | not to exceed allowable emission rates for sulfur dioxide, |
5 | | nitrogen oxides, carbon monoxide, particulates, and mercury |
6 | | for a natural gas-fired combined-cycle facility the same size |
7 | | as and in the same location as the electric generating facility |
8 | | at the time the electric generating facility obtains an |
9 | | approved air permit. |
10 | | "Large electric customer" means a customer that (1) obtains |
11 | | retail electric service in the State from an electric utility |
12 | | or an alternative retail electric supplier and (2) is not a |
13 | | small electric customer. |
14 | | "Local government" means a unit of local government as |
15 | | defined in Article VII of Section 1 of the Illinois |
16 | | Constitution. |
17 | | "Municipality" means a city, village, or incorporated |
18 | | town. |
19 | | "Person" means any natural person, firm, partnership, |
20 | | corporation, either domestic or foreign, company, association, |
21 | | limited liability company, joint stock company, or association |
22 | | and includes any trustee, receiver, assignee, or personal |
23 | | representative thereof. |
24 | | "Project" means the planning, bidding, and construction of |
25 | | a facility. |
26 | | "Public utility" has the same definition as found in |
|
| | 09700SB1653ham001 | - 9 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Section 3-105 of the Public Utilities Act. |
2 | | "Real property" means any interest in land together with |
3 | | all structures, fixtures, and improvements thereon, including |
4 | | lands under water and riparian rights, any easements, |
5 | | covenants, licenses, leases, rights-of-way, uses, and other |
6 | | interests, together with any liens, judgments, mortgages, or |
7 | | other claims or security interests related to real property. |
8 | | "Renewable energy credit" means a tradable credit that |
9 | | represents the environmental attributes of a certain amount of |
10 | | energy produced from a renewable energy resource. |
11 | | "Renewable energy resources" includes energy and its |
12 | | associated renewable energy credit or renewable energy credits |
13 | | from wind, solar thermal energy, photovoltaic cells and panels, |
14 | | biodiesel, crops and untreated and unadulterated organic waste |
15 | | biomass, tree waste, hydropower that does not involve new |
16 | | construction or significant expansion of hydropower dams, and |
17 | | other alternative sources of environmentally preferable |
18 | | energy. For purposes of this Act, landfill gas produced in the |
19 | | State is considered a renewable energy resource. "Renewable |
20 | | energy resources" does not include the incineration or burning |
21 | | of tires, garbage, general household, institutional, and |
22 | | commercial waste, industrial lunchroom or office waste, |
23 | | landscape waste other than tree waste, railroad crossties, |
24 | | utility poles, or construction or demolition debris, other than |
25 | | untreated and unadulterated waste wood. |
26 | | "Revenue bond" means any bond, note, or other evidence of |
|
| | 09700SB1653ham001 | - 10 - | LRB097 05721 ASK 56016 a |
|
|
1 | | indebtedness issued by the Authority, the principal and |
2 | | interest of which is payable solely from revenues or income |
3 | | derived from any project or activity of the Agency. |
4 | | "Sequester" means permanent storage of carbon dioxide by |
5 | | injecting it into a saline aquifer, a depleted gas reservoir, |
6 | | or an oil reservoir, directly or through an enhanced oil |
7 | | recovery process that may involve intermediate storage in a |
8 | | salt dome. |
9 | | "Servicing agreement" means (i) in the case of an electric |
10 | | utility, an agreement between the owner of a clean coal |
11 | | facility and such electric utility, which agreement shall have |
12 | | terms and conditions meeting the requirements of paragraph (3) |
13 | | of subsection (d) of Section 1-75, and (ii) in the case of an |
14 | | alternative retail electric supplier, an agreement between the |
15 | | owner of a clean coal facility and such alternative retail |
16 | | electric supplier, which agreement shall have terms and |
17 | | conditions meeting the requirements of Section 16-115(d)(5) of |
18 | | the Public Utilities Act. |
19 | | "Small electric customer" means a residential retail |
20 | | electric customer that obtains electric service in the State |
21 | | from an electric utility or an alternative retail electric |
22 | | supplier. |
23 | | "Substitute natural gas" or "SNG" means a gas manufactured |
24 | | by gasification of hydrocarbon feedstock, which is |
25 | | substantially interchangeable in use and distribution with |
26 | | conventional natural gas. |
|
| | 09700SB1653ham001 | - 11 - | LRB097 05721 ASK 56016 a |
|
|
1 | | "Total resource cost test" or "TRC test" means a standard |
2 | | that is met if, for an investment in energy efficiency or |
3 | | demand-response measures, the benefit-cost ratio is greater |
4 | | than one. The benefit-cost ratio is the ratio of the net |
5 | | present value of the total benefits of the program to the net |
6 | | present value of the total costs as calculated over the |
7 | | lifetime of the measures. A total resource cost test compares |
8 | | the sum of avoided electric utility costs, representing the |
9 | | benefits that accrue to the system and the participant in the |
10 | | delivery of those efficiency measures, as well as other |
11 | | quantifiable societal benefits, including avoided natural gas |
12 | | utility costs, to the sum of all incremental costs of end-use |
13 | | measures that are implemented due to the program (including |
14 | | both utility and participant contributions), plus costs to |
15 | | administer, deliver, and evaluate each demand-side program, to |
16 | | quantify the net savings obtained by substituting the |
17 | | demand-side program for supply resources. In calculating |
18 | | avoided costs of power and energy that an electric utility |
19 | | would otherwise have had to acquire, reasonable estimates shall |
20 | | be included of financial costs likely to be imposed by future |
21 | | regulations and legislation on emissions of greenhouse gases.
|
22 | | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; |
23 | | 95-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff. |
24 | | 8-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)
|
25 | | (20 ILCS 3855/1-20)
|
|
| | 09700SB1653ham001 | - 12 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Sec. 1-20. General powers of the Agency. |
2 | | (a) The Agency is authorized to do each of the following: |
3 | | (1) Develop electricity procurement plans to ensure |
4 | | adequate, reliable, affordable, efficient, and |
5 | | environmentally sustainable electric service at the lowest |
6 | | total cost over time, taking into account any benefits of |
7 | | price stability, for electric utilities that on December |
8 | | 31, 2005 provided electric service to at least 100,000 |
9 | | customers in Illinois. The procurement plans shall be |
10 | | updated on an annual basis and shall include electricity |
11 | | generated from renewable resources sufficient to achieve |
12 | | the standards specified in this Act. For periods beginning |
13 | | on and after June 1, 2012, the procurement plans shall also |
14 | | include procurement of renewable energy credits, in |
15 | | accordance with subsection (c) of Section 1-75 of this Act, |
16 | | in amounts projected to be sufficient to meet the renewable |
17 | | energy resources standard specified in subsection (c) of |
18 | | Section 1-75 of this Act with respect to the kilowatthour |
19 | | usage of delivery services non-eligible retail customers |
20 | | in such electric utilities' service areas. |
21 | | (2) Conduct competitive procurement processes to |
22 | | procure the supply resources identified in the procurement |
23 | | plan, pursuant to Section 16-111.5 of the Public Utilities |
24 | | Act. |
25 | | (3) Develop electric generation and co-generation |
26 | | facilities that use indigenous coal or renewable |
|
| | 09700SB1653ham001 | - 13 - | LRB097 05721 ASK 56016 a |
|
|
1 | | resources, or both, financed with bonds issued by the |
2 | | Illinois Finance Authority. |
3 | | (4) Supply electricity from the Agency's facilities at |
4 | | cost to one or more of the following: municipal electric |
5 | | systems, governmental aggregators, or rural electric |
6 | | cooperatives in Illinois. |
7 | | (b) Except as otherwise limited by this Act, the Agency has |
8 | | all of the powers necessary or convenient to carry out the |
9 | | purposes and provisions of this Act, including without |
10 | | limitation, each of the following: |
11 | | (1) To have a corporate seal, and to alter that seal at |
12 | | pleasure, and to use it by causing it or a facsimile to be |
13 | | affixed or impressed or reproduced in any other manner. |
14 | | (2) To use the services of the Illinois Finance |
15 | | Authority necessary to carry out the Agency's purposes. |
16 | | (3) To negotiate and enter into loan agreements and |
17 | | other agreements with the Illinois Finance Authority. |
18 | | (4) To obtain and employ personnel and hire consultants |
19 | | that are necessary to fulfill the Agency's purposes, and to |
20 | | make expenditures for that purpose within the |
21 | | appropriations for that purpose. |
22 | | (5) To purchase, receive, take by grant, gift, devise, |
23 | | bequest, or otherwise, lease, or otherwise acquire, own, |
24 | | hold, improve, employ, use, and otherwise deal in and with, |
25 | | real or personal property whether tangible or intangible, |
26 | | or any interest therein, within the State. |
|
| | 09700SB1653ham001 | - 14 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (6) To acquire real or personal property, whether |
2 | | tangible or intangible, including without limitation |
3 | | property rights, interests in property, franchises, |
4 | | obligations, contracts, and debt and equity securities, |
5 | | and to do so by the exercise of the power of eminent domain |
6 | | in accordance with Section 1-21; except that any real |
7 | | property acquired by the exercise of the power of eminent |
8 | | domain must be located within the State. |
9 | | (7) To sell, convey, lease, exchange, transfer, |
10 | | abandon, or otherwise dispose of, or mortgage, pledge, or |
11 | | create a security interest in, any of its assets, |
12 | | properties, or any interest therein, wherever situated. |
13 | | (8) To purchase, take, receive, subscribe for, or |
14 | | otherwise acquire, hold, make a tender offer for, vote, |
15 | | employ, sell, lend, lease, exchange, transfer, or |
16 | | otherwise dispose of, mortgage, pledge, or grant a security |
17 | | interest in, use, and otherwise deal in and with, bonds and |
18 | | other obligations, shares, or other securities (or |
19 | | interests therein) issued by others, whether engaged in a |
20 | | similar or different business or activity. |
21 | | (9) To make and execute agreements, contracts, and |
22 | | other instruments necessary or convenient in the exercise |
23 | | of the powers and functions of the Agency under this Act, |
24 | | including contracts with any person, local government, |
25 | | State agency, or other entity; and all State agencies and |
26 | | all local governments are authorized to enter into and do |
|
| | 09700SB1653ham001 | - 15 - | LRB097 05721 ASK 56016 a |
|
|
1 | | all things necessary to perform any such agreement, |
2 | | contract, or other instrument with the Agency. No such |
3 | | agreement, contract, or other instrument shall exceed 40 |
4 | | years. |
5 | | (10) To lend money, invest and reinvest its funds in |
6 | | accordance with the Public Funds Investment Act, and take |
7 | | and hold real and personal property as security for the |
8 | | payment of funds loaned or invested. |
9 | | (11) To borrow money at such rate or rates of interest |
10 | | as the Agency may determine, issue its notes, bonds, or |
11 | | other obligations to evidence that indebtedness, and |
12 | | secure any of its obligations by mortgage or pledge of its |
13 | | real or personal property, machinery, equipment, |
14 | | structures, fixtures, inventories, revenues, grants, and |
15 | | other funds as provided or any interest therein, wherever |
16 | | situated. |
17 | | (12) To enter into agreements with the Illinois Finance |
18 | | Authority to issue bonds whether or not the income |
19 | | therefrom is exempt from federal taxation. |
20 | | (13) To procure insurance against any loss in |
21 | | connection with its properties or operations in such amount |
22 | | or amounts and from such insurers, including the federal |
23 | | government, as it may deem necessary or desirable, and to |
24 | | pay any premiums therefor. |
25 | | (14) To negotiate and enter into agreements with |
26 | | trustees or receivers appointed by United States |
|
| | 09700SB1653ham001 | - 16 - | LRB097 05721 ASK 56016 a |
|
|
1 | | bankruptcy courts or federal district courts or in other |
2 | | proceedings involving adjustment of debts and authorize |
3 | | proceedings involving adjustment of debts and authorize |
4 | | legal counsel for the Agency to appear in any such |
5 | | proceedings. |
6 | | (15) To file a petition under Chapter 9 of Title 11 of |
7 | | the United States Bankruptcy Code or take other similar |
8 | | action for the adjustment of its debts. |
9 | | (16) To enter into management agreements for the |
10 | | operation of any of the property or facilities owned by the |
11 | | Agency. |
12 | | (17) To enter into an agreement to transfer and to |
13 | | transfer any land, facilities, fixtures, or equipment of |
14 | | the Agency to one or more municipal electric systems, |
15 | | governmental aggregators, or rural electric agencies or |
16 | | cooperatives, for such consideration and upon such terms as |
17 | | the Agency may determine to be in the best interest of the |
18 | | citizens of Illinois. |
19 | | (18) To enter upon any lands and within any building |
20 | | whenever in its judgment it may be necessary for the |
21 | | purpose of making surveys and examinations to accomplish |
22 | | any purpose authorized by this Act. |
23 | | (19) To maintain an office or offices at such place or |
24 | | places in the State as it may determine. |
25 | | (20) To request information, and to make any inquiry, |
26 | | investigation, survey, or study that the Agency may deem |
|
| | 09700SB1653ham001 | - 17 - | LRB097 05721 ASK 56016 a |
|
|
1 | | necessary to enable it effectively to carry out the |
2 | | provisions of this Act. |
3 | | (21) To accept and expend appropriations. |
4 | | (22) To engage in any activity or operation that is |
5 | | incidental to and in furtherance of efficient operation to |
6 | | accomplish the Agency's purposes. |
7 | | (23) To adopt, revise, amend, and repeal rules with |
8 | | respect to its operations, properties, and facilities as |
9 | | may be necessary or convenient to carry out the purposes of |
10 | | this Act, subject to the provisions of the Illinois |
11 | | Administrative Procedure Act and Sections 1-22 and 1-35 of |
12 | | this Act. |
13 | | (24) To establish and collect charges and fees as |
14 | | described in this Act.
|
15 | | (25) To conduct competitive gasification feedstock |
16 | | procurement processes to procure the feedstocks for the |
17 | | initial clean coal facility in accordance with the |
18 | | requirements of Section 1-78 of this Act. To manage |
19 | | procurement of substitute natural gas from a facility that |
20 | | meets the criteria specified in subsection (a) of Section |
21 | | 1-58 of this Act, on terms and conditions that may be |
22 | | approved by the Agency pursuant to subsection (d) of |
23 | | Section 1-58 of this Act, to support the operations of |
24 | | State agencies and local governments that agree to such |
25 | | terms and conditions. This procurement process is not |
26 | | subject to the Procurement Code. |
|
| | 09700SB1653ham001 | - 18 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (26) To review, revise, and approve sourcing |
2 | | agreements and mediate and resolve disputes between |
3 | | electric utilities or alternative retail electric |
4 | | suppliers and the initial clean coal facility pursuant to |
5 | | paragraph (4) of subsection (d) of Section 1-75 of this |
6 | | Act. |
7 | | (Source: P.A. 95-481, eff. 8-28-07; 96-784, eff. 8-28-09; |
8 | | 96-1000, eff. 7-2-10.) |
9 | | (20 ILCS 3855/1-56) |
10 | | Sec. 1-56. Illinois Power Agency Renewable Energy |
11 | | Resources Fund. |
12 | | (a) The Illinois Power Agency Renewable Energy Resources |
13 | | Fund is created as a special fund in the State treasury. |
14 | | (b) The Illinois Power Agency Renewable Energy Resources |
15 | | Fund shall be administered by the Agency to procure renewable |
16 | | energy resources. Prior to June 1, 2011, resources procured |
17 | | pursuant to this Section shall be procured from facilities |
18 | | located in Illinois, provided the resources are available from |
19 | | those facilities. If resources are not available in Illinois, |
20 | | then they shall be procured in states that adjoin Illinois. If |
21 | | resources are not available in Illinois or in states that |
22 | | adjoin Illinois, then they may be purchased elsewhere. |
23 | | Beginning June 1, 2011, resources procured pursuant to this |
24 | | Section shall be procured from facilities located in Illinois |
25 | | or states that adjoin Illinois. If resources are not available |
|
| | 09700SB1653ham001 | - 19 - | LRB097 05721 ASK 56016 a |
|
|
1 | | in Illinois or in states that adjoin Illinois, then they may be |
2 | | procured elsewhere. To the extent available, at least 75% of |
3 | | these renewable energy resources shall come from wind |
4 | | generation. Of the renewable energy resources procured |
5 | | pursuant to this Section at least the following specified |
6 | | percentages shall come from photovoltaics on the following |
7 | | schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by |
8 | | June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the |
9 | | renewable energy resources procured pursuant to this Section at |
10 | | least the following percentages shall come from distributed |
11 | | renewable energy generation devices: 0.5% by June 1, 2013, |
12 | | 0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. |
13 | | To the extent available, half of the renewable energy resources |
14 | | procured from distributed renewable energy generation shall |
15 | | come from devices of less than 25 kilowatts in nameplate |
16 | | capacity. Renewable energy resources procured from distributed |
17 | | generation devices may also count towards the required |
18 | | percentages for wind and solar photovoltaics. Procurement of |
19 | | renewable energy resources from distributed renewable energy |
20 | | generation devices shall be done on an annual basis through |
21 | | multi-year contracts of no less than 5 years. |
22 | | The Agency shall create credit requirements for suppliers |
23 | | of distributed renewable energy. In order to minimize the |
24 | | administrative burden on contracting entities, the Agency |
25 | | shall solicit the use of third-party organizations to aggregate |
26 | | distributed renewable energy into groups of no less than one |
|
| | 09700SB1653ham001 | - 20 - | LRB097 05721 ASK 56016 a |
|
|
1 | | megawatt in installed capacity. These third-party |
2 | | organizations shall administer contracts with individual |
3 | | distributed renewable energy generation device owners. An |
4 | | individual distributed renewable energy generation device |
5 | | owner shall have the ability to measure the output of his or |
6 | | her distributed renewable energy generation device. |
7 | | (c) The Agency shall procure renewable energy resources at |
8 | | least once each year in conjunction with a procurement event |
9 | | for electric utilities required to comply with Section 1-75 of |
10 | | the Act and shall, whenever possible, enter into long-term |
11 | | contracts on an annual basis for a portion of the incremental |
12 | | requirement for the given procurement year . For periods |
13 | | beginning on and after June 1, 2012, the Agency shall use the |
14 | | Illinois Power Agency Renewable Energy Resources Fund, until |
15 | | depleted, to procure renewable energy credits for the purposes |
16 | | specified in paragraphs (2) and (6) of subsection (c) of |
17 | | Section 1-75 of this Act. For each procurement of renewable |
18 | | energy credits pursuant to this Section for periods beginning |
19 | | on and after June 1, 2012, the Agency shall designate an |
20 | | electric utility service area to which the procurement |
21 | | pertains. |
22 | | (d) The price paid to procure renewable energy credits |
23 | | using monies from the Illinois Power Agency Renewable Energy |
24 | | Resources Fund shall not exceed the winning bid prices paid for |
25 | | like resources procured for electric utilities required to |
26 | | comply with Section 1-75 of this Act. |
|
| | 09700SB1653ham001 | - 21 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (e) All renewable energy credits procured using monies from |
2 | | the Illinois Power Agency Renewable Energy Resources Fund shall |
3 | | be permanently retired. |
4 | | (f) The procurement process described in this Section is |
5 | | exempt from the requirements of the Illinois Procurement Code, |
6 | | pursuant to Section 20-10 of that Code. |
7 | | (g) All disbursements from the Illinois Power Agency |
8 | | Renewable Energy Resources Fund shall be made only upon |
9 | | warrants of the Comptroller drawn upon the Treasurer as |
10 | | custodian of the Fund upon vouchers signed by the Director or |
11 | | by the person or persons designated by the Director for that |
12 | | purpose. The Comptroller is authorized to draw the warrant upon |
13 | | vouchers so signed. The Treasurer shall accept all warrants so |
14 | | signed and shall be released from liability for all payments |
15 | | made on those warrants. |
16 | | (h) The Illinois Power Agency Renewable Energy Resources |
17 | | Fund shall not be subject to sweeps, administrative charges, or |
18 | | chargebacks, including, but not limited to, those authorized |
19 | | under Section 8h of the State Finance Act, that would in any |
20 | | way result in the transfer of any funds from this Fund to any |
21 | | other fund of this State or in having any such funds utilized |
22 | | for any purpose other than the express purposes set forth in |
23 | | this Section.
|
24 | | (i) The Illinois Power Agency Renewable Energy Resources |
25 | | Fund shall be terminated upon depletion of all funds therein |
26 | | through the purchase of renewable energy credits. |
|
| | 09700SB1653ham001 | - 22 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10; |
2 | | 96-1437, eff. 8-17-10.) |
3 | | (20 ILCS 3855/1-75) |
4 | | Sec. 1-75. Planning and Procurement Bureau. The Planning |
5 | | and Procurement Bureau has the following duties and |
6 | | responsibilities: |
7 | | (a) The Planning and Procurement Bureau shall each year, |
8 | | beginning in 2008, develop procurement plans and conduct |
9 | | competitive procurement processes in accordance with the |
10 | | requirements of Section 16-111.5 of the Public Utilities Act |
11 | | for the eligible retail customers of electric utilities that on |
12 | | December 31, 2005 provided electric service to at least 100,000 |
13 | | customers in Illinois , and for years beginning on and after |
14 | | June 1, 2012, for the procurement of renewable energy credits |
15 | | in respect of the kilowatthour usage of delivery services |
16 | | non-eligible retail customers in such electric utilities' |
17 | | service areas . For the purposes of this Section, the term |
18 | | "eligible retail customers" has the same definition as found in |
19 | | Section 16-111.5(a) of the Public Utilities Act. |
20 | | (1) The Agency shall each year, beginning in 2008, as |
21 | | needed, issue a request for qualifications for experts or |
22 | | expert consulting firms to develop the procurement plans in |
23 | | accordance with Section 16-111.5 of the Public Utilities |
24 | | Act. In order to qualify an expert or expert consulting |
25 | | firm must have: |
|
| | 09700SB1653ham001 | - 23 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (A) direct previous experience assembling |
2 | | large-scale power supply plans or portfolios for |
3 | | end-use customers; |
4 | | (B) an advanced degree in economics, mathematics, |
5 | | engineering, risk management, or a related area of |
6 | | study; |
7 | | (C) 10 years of experience in the electricity |
8 | | sector, including managing supply risk; |
9 | | (D) expertise in wholesale electricity market |
10 | | rules, including those established by the Federal |
11 | | Energy Regulatory Commission and regional transmission |
12 | | organizations; |
13 | | (E) expertise in credit protocols and familiarity |
14 | | with contract protocols; |
15 | | (F) adequate resources to perform and fulfill the |
16 | | required functions and responsibilities; and |
17 | | (G) the absence of a conflict of interest and |
18 | | inappropriate bias for or against potential bidders or |
19 | | the affected electric utilities. |
20 | | (2) The Agency shall each year, as needed, issue a |
21 | | request for qualifications for a procurement administrator |
22 | | to conduct the competitive procurement processes in |
23 | | accordance with Section 16-111.5 of the Public Utilities |
24 | | Act. In order to qualify an expert or expert consulting |
25 | | firm must have: |
26 | | (A) direct previous experience administering a |
|
| | 09700SB1653ham001 | - 24 - | LRB097 05721 ASK 56016 a |
|
|
1 | | large-scale competitive procurement process; |
2 | | (B) an advanced degree in economics, mathematics, |
3 | | engineering, or a related area of study; |
4 | | (C) 10 years of experience in the electricity |
5 | | sector, including risk management experience; |
6 | | (D) expertise in wholesale electricity market |
7 | | rules, including those established by the Federal |
8 | | Energy Regulatory Commission and regional transmission |
9 | | organizations; |
10 | | (E) expertise in credit and contract protocols; |
11 | | (F) adequate resources to perform and fulfill the |
12 | | required functions and responsibilities; and |
13 | | (G) the absence of a conflict of interest and |
14 | | inappropriate bias for or against potential bidders or |
15 | | the affected electric utilities. |
16 | | (3) The Agency shall provide affected utilities and |
17 | | other interested parties with the lists of qualified |
18 | | experts or expert consulting firms identified through the |
19 | | request for qualifications processes that are under |
20 | | consideration to develop the procurement plans and to serve |
21 | | as the procurement administrator. The Agency shall also |
22 | | provide each qualified expert's or expert consulting |
23 | | firm's response to the request for qualifications. All |
24 | | information provided under this subparagraph shall also be |
25 | | provided to the Commission. The Agency may provide by rule |
26 | | for fees associated with supplying the information to |
|
| | 09700SB1653ham001 | - 25 - | LRB097 05721 ASK 56016 a |
|
|
1 | | utilities and other interested parties. These parties |
2 | | shall, within 5 business days, notify the Agency in writing |
3 | | if they object to any experts or expert consulting firms on |
4 | | the lists. Objections shall be based on: |
5 | | (A) failure to satisfy qualification criteria; |
6 | | (B) identification of a conflict of interest; or |
7 | | (C) evidence of inappropriate bias for or against |
8 | | potential bidders or the affected utilities. |
9 | | The Agency shall remove experts or expert consulting |
10 | | firms from the lists within 10 days if there is a |
11 | | reasonable basis for an objection and provide the updated |
12 | | lists to the affected utilities and other interested |
13 | | parties. If the Agency fails to remove an expert or expert |
14 | | consulting firm from a list, an objecting party may seek |
15 | | review by the Commission within 5 days thereafter by filing |
16 | | a petition, and the Commission shall render a ruling on the |
17 | | petition within 10 days. There is no right of appeal of the |
18 | | Commission's ruling. |
19 | | (4) The Agency shall issue requests for proposals to |
20 | | the qualified experts or expert consulting firms to develop |
21 | | a procurement plan for the affected utilities and to serve |
22 | | as procurement administrator. |
23 | | (5) The Agency shall select an expert or expert |
24 | | consulting firm to develop procurement plans based on the |
25 | | proposals submitted and shall award one-year contracts to |
26 | | those selected with an option for the Agency for a one-year |
|
| | 09700SB1653ham001 | - 26 - | LRB097 05721 ASK 56016 a |
|
|
1 | | renewal. |
2 | | (6) The Agency shall select an expert or expert |
3 | | consulting firm, with approval of the Commission, to serve |
4 | | as procurement administrator based on the proposals |
5 | | submitted. If the Commission rejects, within 5 days, the |
6 | | Agency's selection, the Agency shall submit another |
7 | | recommendation within 3 days based on the proposals |
8 | | submitted. The Agency shall award a one-year contract to |
9 | | the expert or expert consulting firm so selected with |
10 | | Commission approval with an option for the Agency for a |
11 | | one-year renewal. |
12 | | (a-5) The Planning and Procurement Bureau shall at least |
13 | | every 5 years beginning in 2012 develop feedstock procurement |
14 | | plans and conduct competitive feedstock procurement processes |
15 | | in accordance with the requirements of Section 1-78 of this |
16 | | Act. |
17 | | (1) The Agency shall, at least once every 5 years |
18 | | beginning in 2012, issue a request for qualifications for |
19 | | experts or expert consulting firms to develop the feedstock |
20 | | procurement plans in accordance with Section 1-78 of this |
21 | | Act. In order to qualify, an expert or, in the case of an |
22 | | expert consulting firm, the individual who shall be |
23 | | directly responsible for the work, must have: |
24 | | (A) direct previous experience assembling large |
25 | | scale feedstock supply plans or portfolios involving |
26 | | coal and natural gas for industrial customers; |
|
| | 09700SB1653ham001 | - 27 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (B) an advanced degree in economics, mathematics, |
2 | | engineering, risk management, or a related area of |
3 | | study; |
4 | | (C) ten years of experience in the energy sector, |
5 | | including coal and gas procurement and managing fuel |
6 | | supply risk; |
7 | | (D) expertise in the feedstock markets, which may |
8 | | be particularized to the specific type of feedstock to |
9 | | be purchased in that procurement event; |
10 | | (E) expertise in credit protocols and familiarity |
11 | | with contract protocols; |
12 | | (F) adequate resources to perform and fulfill the |
13 | | required functions and responsibilities; and |
14 | | (G) the absence of a conflict of interest and |
15 | | inappropriate bias or against potential bidders or the |
16 | | initial clean coal facility. |
17 | | (2) The Agency shall at least every 5 years beginning |
18 | | in 2012, as needed, issue a request for qualifications for |
19 | | a feedstock procurement administrator to conduct the |
20 | | competitive feedstock procurement processes in accordance |
21 | | with Section 1-78 of this Act. In order to qualify, an |
22 | | expert or, in the case of an expert consulting firm, the |
23 | | individual who shall be directly responsible for the work, |
24 | | must have: |
25 | | (A) direct previous experience administering a |
26 | | large scale competitive feedstock procurement process |
|
| | 09700SB1653ham001 | - 28 - | LRB097 05721 ASK 56016 a |
|
|
1 | | involving coal and natural gas; |
2 | | (B) an advanced degree in economics, mathematics, |
3 | | engineering, or a related area of study; |
4 | | (C) ten years of experience in the energy sector, |
5 | | including coal and gas procurement and managing fuel |
6 | | supply risk; |
7 | | (D) expertise in feedstock market rules and |
8 | | practices, which may be particularized to the specific |
9 | | type of feedstock to be purchased in that procurement |
10 | | event; |
11 | | (E) expertise in credit and contract protocols; |
12 | | (F) adequate resources to perform and fulfill the |
13 | | required functions and responsibilities; and |
14 | | (G) the absence of a conflict of interest and |
15 | | inappropriate bias for or against potential bidders or |
16 | | the initial clean coal facility. |
17 | | (3) The Agency shall provide the initial clean coal |
18 | | facility and other interested parties with the lists of |
19 | | qualified experts or expert consulting firms identified |
20 | | through the request for qualifications processes that are |
21 | | under consideration to develop the feedstock procurement |
22 | | plans and to serve as the feedstock procurement |
23 | | administrator. The Agency shall also provide the initial |
24 | | clean coal facility and other interested parties with each |
25 | | qualified expert's or expert consulting firm's response to |
26 | | the request for qualifications. All information provided |
|
| | 09700SB1653ham001 | - 29 - | LRB097 05721 ASK 56016 a |
|
|
1 | | under this subparagraph (3) shall also be provided to the |
2 | | Commission. The Agency may provide by rule for fees |
3 | | associated with supplying the information to the initial |
4 | | clean coal facility and other interested parties. The |
5 | | initial clean coal facility and other interested parties |
6 | | shall, within 5 business days after receiving the lists and |
7 | | information, notify the Agency in writing if they object to |
8 | | any experts or expert consulting firms on the lists. |
9 | | Objections shall be based on: |
10 | | (A) failure to satisfy qualification criteria; |
11 | | (B) identification of a conflict of interest; or |
12 | | (C) evidence of inappropriate bias for or against |
13 | | potential bidders or the initial clean coal facility. |
14 | | The Agency shall remove experts or expert consulting |
15 | | firms from the lists within 10 days after receiving the |
16 | | objections if there is a reasonable basis for an objection |
17 | | and provide the updated lists to the initial clean coal |
18 | | facility and other interested parties. If the Agency fails |
19 | | to remove an expert or expert consulting firm from a list, |
20 | | then an objecting party may seek review by the Commission |
21 | | within 5 days thereafter by filing a petition, and the |
22 | | Commission shall render a ruling on the petition within 10 |
23 | | days. There is no right of appeal of the Commission's |
24 | | ruling. |
25 | | (4) The Agency shall issue requests for proposals to |
26 | | the qualified experts or expert consulting firms to develop |
|
| | 09700SB1653ham001 | - 30 - | LRB097 05721 ASK 56016 a |
|
|
1 | | a feedstock procurement plan for the initial clean coal |
2 | | facility and to serve as feedstock procurement |
3 | | administrator. |
4 | | (5) The Agency shall select an expert or expert |
5 | | consulting firm to develop feedstock procurement plans |
6 | | based on the proposals submitted and shall award at least |
7 | | one-year contracts to those selected with an option for the |
8 | | Agency for renewal for an additional length of time equal |
9 | | to the term of the contract. |
10 | | (6) The Agency shall select, with approval of the |
11 | | Commission, an expert or expert consulting firm to serve as |
12 | | feedstock procurement administrator based on the proposals |
13 | | submitted. If the Commission rejects the Agency's |
14 | | selection within 5 days after being notified of the |
15 | | Agency's selection, then the Agency shall submit another |
16 | | recommendation within 3 days after the Commission's |
17 | | rejection based on the proposals submitted. The Agency |
18 | | shall award a 5-year contract to the expert or expert |
19 | | consulting firm so selected with Commission approval with |
20 | | an option for the Agency for a 5-year renewal. |
21 | | (b) The experts or expert consulting firms retained by the |
22 | | Agency under subsection (a) of this Section shall, as |
23 | | appropriate, prepare procurement plans, and conduct a |
24 | | competitive procurement process as prescribed in Section |
25 | | 16-111.5 of the Public Utilities Act, to ensure adequate, |
26 | | reliable, affordable, efficient, and environmentally |
|
| | 09700SB1653ham001 | - 31 - | LRB097 05721 ASK 56016 a |
|
|
1 | | sustainable electric service at the lowest total cost over |
2 | | time, taking into account any benefits of price stability, for |
3 | | eligible retail customers of electric utilities that on |
4 | | December 31, 2005 provided electric service to at least 100,000 |
5 | | customers in the State of Illinois. |
6 | | (b-5) The experts or expert consulting firms retained by |
7 | | the Agency pursuant to subsection (a-5) shall, as appropriate, |
8 | | prepare feedstock procurement plans and conduct a competitive |
9 | | feedstock procurement process as prescribed in Section 1-78 of |
10 | | this Act to ensure adequate, reliable, affordable feedstocks, |
11 | | taking into account any benefits of price stability, for the |
12 | | initial clean coal facility. |
13 | | (c) Renewable portfolio standard. |
14 | | (1) The procurement plans shall include cost-effective |
15 | | renewable energy resources. A minimum percentage of each |
16 | | utility's total supply to serve the load of eligible retail |
17 | | customers, as defined in Section 16-111.5(a) of the Public |
18 | | Utilities Act, procured for each of the following years |
19 | | shall be generated from cost-effective renewable energy |
20 | | resources: at least 2% by June 1, 2008; at least 4% by June |
21 | | 1, 2009; at least 5% by June 1, 2010; at least 6% by June 1, |
22 | | 2011; at least 7% by June 1, 2012; at least 8% by June 1, |
23 | | 2013; at least 9% by June 1, 2014; at least 10% by June 1, |
24 | | 2015; and increasing by at least 1.5% each year thereafter |
25 | | to at least 25% by June 1, 2025. For periods beginning on |
26 | | and after June 1, 2012, the procurement plans shall include |
|
| | 09700SB1653ham001 | - 32 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the procurement of renewable energy credits equal to the |
2 | | projected kilowatthour usage of the delivery services |
3 | | non-eligible retail customers within the service area of |
4 | | the electric utility times the applicable renewable energy |
5 | | resource percentage for that year as set forth under this |
6 | | paragraph (1). To the extent that it is available, at least |
7 | | 75% of the renewable energy resources used to meet these |
8 | | standards shall come from wind generation and, beginning on |
9 | | June 1, 2011, at least the following percentages of the |
10 | | renewable energy resources used to meet these standards |
11 | | shall come from photovoltaics on the following schedule: |
12 | | 0.5% by June 1, 2012, 1.5% by June 1, 2013; 3% by June 1, |
13 | | 2014; and 6% by June 1, 2015 and thereafter. Of the |
14 | | renewable energy resources procured pursuant to this |
15 | | Section at least the following percentages shall come from |
16 | | distributed renewable energy generation devices: 0.5% by |
17 | | June 1, 2013, 0.75% by June 1, 2014, and 1% by June 1, 2015 |
18 | | and thereafter. To the extent available, half of the |
19 | | renewable energy resources procured from distributed |
20 | | renewable energy generation shall come from devices of less |
21 | | than 25 kilowatts in nameplate capacity. Renewable energy |
22 | | resources procured from distributed generation devices may |
23 | | also count towards the required percentages for wind and |
24 | | solar photovoltaics. Procurement of renewable energy |
25 | | resources from distributed renewable energy generation |
26 | | devices shall be done on an annual basis through multi-year |
|
| | 09700SB1653ham001 | - 33 - | LRB097 05721 ASK 56016 a |
|
|
1 | | contracts of no less than 5 years. |
2 | | The Agency shall create credit requirements for |
3 | | suppliers of distributed renewable energy. In order to |
4 | | minimize the administrative burden on contracting |
5 | | entities, the Agency shall solicit the use of third-party |
6 | | organizations to aggregate distributed renewable energy |
7 | | into groups of no less than one megawatt in installed |
8 | | capacity. These third-party organizations shall administer |
9 | | contracts with individual distributed renewable energy |
10 | | generation device owners. An individual distributed |
11 | | renewable energy generation device owner shall have the |
12 | | ability to measure the output of his or her distributed |
13 | | renewable energy generation device. For purposes of this |
14 | | subsection (c), "cost-effective" means that the costs of |
15 | | procuring renewable energy resources to serve the load of |
16 | | the electric utility's eligible retail customers and the |
17 | | costs of procuring renewable energy credits with respect to |
18 | | the kilowatthour usage of the delivery services |
19 | | non-eligible retail customers within the electric |
20 | | utility's service area do not cause the applicable limits |
21 | | limit stated in paragraph (2) of this subsection (c) to be |
22 | | exceeded and do not exceed benchmarks based on market |
23 | | prices for renewable energy resources in the region, which |
24 | | shall be developed by the procurement administrator, in |
25 | | consultation with the Commission staff, Agency staff, and |
26 | | the procurement monitor and shall be subject to Commission |
|
| | 09700SB1653ham001 | - 34 - | LRB097 05721 ASK 56016 a |
|
|
1 | | review and approval ; provided that only the benchmarks, and |
2 | | not the remainder of the definition of "cost-effective", |
3 | | shall be applicable to the procurement of renewable energy |
4 | | credits on and after June 1, 2012 in respect of the |
5 | | forecasted kilowatthour usage of the delivery services |
6 | | non-eligible retail customers in the electric utility's |
7 | | service area . |
8 | | (2) For purposes of this subsection (c), the required |
9 | | procurement of cost-effective renewable energy resources |
10 | | to serve the load of the electric utility's eligible retail |
11 | | customers 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 procurement and, for periods |
16 | | beginning on and after June 1, 2012, the required |
17 | | procurement of cost effective renewable energy credits |
18 | | with respect to the delivery services non-eligible retail |
19 | | customers of the electric utility shall be based on the |
20 | | actual amount of electricity (megawatt-hours) delivered by |
21 | | the electric utility to delivery services non-eligible |
22 | | retail customers in its service area in the planning year |
23 | | ending immediately prior to the procurement . For purposes |
24 | | of this subsection (c), the amount paid per kilowatthour |
25 | | means the total amount paid for electric service expressed |
26 | | on a per kilowatthour basis. For purposes of this |
|
| | 09700SB1653ham001 | - 35 - | LRB097 05721 ASK 56016 a |
|
|
1 | | subsection (c), the total amount paid for electric service |
2 | | includes without limitation amounts paid for supply, |
3 | | transmission, distribution, surcharges, and add-on taxes. |
4 | | Notwithstanding the requirements of this subsection |
5 | | (c), the total of renewable energy resources procured |
6 | | pursuant to the procurement plan with respect to the load |
7 | | of the electric utility's eligible retail customers for any |
8 | | single year shall be reduced by an amount necessary to |
9 | | limit the annual estimated average net increase due to the |
10 | | costs of these resources included in the amounts paid by |
11 | | eligible retail customers in connection with electric |
12 | | service to: |
13 | | (A) in 2008, no more than 0.5% of the amount paid |
14 | | per kilowatthour by those customers during the year |
15 | | ending May 31, 2007; |
16 | | (B) in 2009, the greater of an additional 0.5% of |
17 | | the amount paid per kilowatthour by those customers |
18 | | during the year ending May 31, 2008 or 1% of the amount |
19 | | paid per kilowatthour by those customers during the |
20 | | year ending May 31, 2007; |
21 | | (C) in 2010, the greater of an additional 0.5% of |
22 | | the amount paid per kilowatthour by those customers |
23 | | during the year ending May 31, 2009 or 1.5% of the |
24 | | amount paid per kilowatthour by those customers during |
25 | | the year ending May 31, 2007; |
26 | | (D) in 2011, the greater of an additional 0.5% of |
|
| | 09700SB1653ham001 | - 36 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the amount paid per kilowatthour by those customers |
2 | | during the year ending May 31, 2010 or 2% of the amount |
3 | | paid per kilowatthour by those customers during the |
4 | | year ending May 31, 2007; and |
5 | | (E) thereafter, the amount of renewable energy |
6 | | resources procured pursuant to the procurement plan |
7 | | for any single year shall be reduced by an amount |
8 | | necessary to limit the estimated average net increase |
9 | | due to the cost of these resources included in the |
10 | | amounts paid by eligible retail customers in |
11 | | connection with electric service to no more than the |
12 | | greater of 2.015% of the amount paid per kilowatthour |
13 | | by those customers during the year ending May 31, 2007 |
14 | | or the incremental amount per kilowatthour paid for |
15 | | these resources in 2011. |
16 | | The foregoing limitations shall not be applicable |
17 | | to the purchase, for periods beginning on and after |
18 | | June 1, 2012, of renewable energy credits in respect of |
19 | | the projected kilowatthour usage of the electric |
20 | | utility's delivery services non-eligible retail |
21 | | customers. For periods beginning on and after June 1, |
22 | | 2012, any excluded renewable energy resources contract |
23 | | costs shall be recoverable by the electric utility |
24 | | through its tariffed charges for delivery services |
25 | | pursuant to Section 16-108 of the Public Utilities Act |
26 | | to its residential class delivery services |
|
| | 09700SB1653ham001 | - 37 - | LRB097 05721 ASK 56016 a |
|
|
1 | | non-eligible retail customers. |
2 | | Notwithstanding the requirements of this |
3 | | subsection (c), for years beginning on and after June |
4 | | 1, 2012, the total amount of renewable energy credits |
5 | | procured pursuant to the procurement plan with respect |
6 | | to the kilowatthour usage of the delivery services |
7 | | non-eligible retail customers in the electric |
8 | | utility's service area shall be reduced by an amount |
9 | | necessary to limit the cost of renewable energy credits |
10 | | and excluded renewable energy resources costs included |
11 | | in the electric utility's charges per kilowatthour for |
12 | | delivery services to its delivery services |
13 | | non-eligible retail customers to an amount equal to no |
14 | | more than 2.015% of the amount paid by the electric |
15 | | utility's eligible retail customers per kilowatthour |
16 | | for electric service during the year ended May 31, |
17 | | 2007. |
18 | | No later than June 30, 2011, the Commission shall |
19 | | review the limitation on the amount of renewable energy |
20 | | resources procured pursuant to this subsection (c) and |
21 | | report to the General Assembly its findings as to |
22 | | whether that limitation unduly constrains the |
23 | | procurement of cost-effective renewable energy |
24 | | resources. |
25 | | (3) (Blank). Through June 1, 2011, renewable energy |
26 | | resources shall be counted for the purpose of meeting the |
|
| | 09700SB1653ham001 | - 38 - | LRB097 05721 ASK 56016 a |
|
|
1 | | renewable energy standards set forth in paragraph (1) of |
2 | | this subsection (c) only if they are generated from |
3 | | facilities located in the State, provided that |
4 | | cost-effective renewable energy resources are available |
5 | | from those facilities. If those cost-effective resources |
6 | | are not available in Illinois, they shall be procured in |
7 | | states that adjoin Illinois and may be counted towards |
8 | | compliance. If those cost-effective resources are not |
9 | | available in Illinois or in states that adjoin Illinois, |
10 | | they shall be purchased elsewhere and shall be counted |
11 | | towards compliance. After June 1, 2011, cost-effective |
12 | | renewable energy resources located in Illinois and in |
13 | | states that adjoin Illinois may be counted towards |
14 | | compliance with the standards set forth in paragraph (1) of |
15 | | this subsection (c). If those cost-effective resources are |
16 | | not available in Illinois or in states that adjoin |
17 | | Illinois, they shall be purchased elsewhere and shall be |
18 | | counted towards compliance. |
19 | | (4) The electric utility shall retire all renewable |
20 | | energy credits used to comply with the standard. |
21 | | (5) Beginning with the year commencing June 1, 2010, |
22 | | and ending with the year commencing June 1, 2011, an |
23 | | electric utility subject to this subsection (c) shall apply |
24 | | the lesser of the maximum alternative compliance payment |
25 | | rate or the most recent estimated alternative compliance |
26 | | payment rate for its service territory for the |
|
| | 09700SB1653ham001 | - 39 - | LRB097 05721 ASK 56016 a |
|
|
1 | | corresponding compliance period, established pursuant to |
2 | | subsection (d) of Section 16-115D of the Public Utilities |
3 | | Act to its retail customers that take service pursuant to |
4 | | the electric utility's hourly pricing tariff or tariffs. |
5 | | The electric utility shall retain all amounts collected as |
6 | | a result of the application of the alternative compliance |
7 | | payment rate or rates to such customers, and, beginning in |
8 | | 2011, the utility shall include in the information provided |
9 | | under item (1) of subsection (d) of Section 16-111.5 of the |
10 | | Public Utilities Act the amounts collected under the |
11 | | alternative compliance payment rate or rates for the prior |
12 | | year ending May 31. Notwithstanding any limitation on the |
13 | | procurement of renewable energy resources imposed by item |
14 | | (2) of this subsection (c), the Agency shall increase its |
15 | | spending on the purchase of renewable energy resources to |
16 | | be procured by the electric utility for the next plan year |
17 | | by an amount equal to the amounts collected by the utility |
18 | | under the alternative compliance payment rate or rates in |
19 | | the prior year ending May 31. For years commencing on and |
20 | | after June 1, 2012, the kilowatthours supplied by the |
21 | | electric utility to its retail customers that take service |
22 | | pursuant to the electric utility's hourly pricing tariff or |
23 | | tariffs shall be considered usage of delivery services |
24 | | non-eligible retail customers. |
25 | | (6) Each annual procurement plan for periods beginning |
26 | | on and after June 1, 2012 shall include (i) the procurement |
|
| | 09700SB1653ham001 | - 40 - | LRB097 05721 ASK 56016 a |
|
|
1 | | of electricity from cost-effective renewable energy |
2 | | resources to meet the renewable energy resource |
3 | | requirements specified in paragraph (2) of this subsection |
4 | | (c) with respect to the load of the electric utility's |
5 | | eligible retail customers and (ii) the procurement of |
6 | | renewable energy credits to meet the renewable energy |
7 | | resource requirements specified in paragraph (2) of this |
8 | | subsection (c) with respect to the kilowatthour usage of |
9 | | the electric utility's delivery services non-eligible |
10 | | retail customers; provided that the electric utility's |
11 | | obligation to purchase renewable energy credits with |
12 | | respect to the kilowatthour usage of delivery services |
13 | | non-eligible retail customers shall be reduced by the |
14 | | amount of any purchases of renewable energy credits by the |
15 | | Agency for the year in respect of the electric utility's |
16 | | service area pursuant to Section 1-56 of this Act using the |
17 | | Illinois Power Agency Renewable Energy Resources Fund. All |
18 | | procurements of bundled renewable energy resources and |
19 | | renewable energy credits in the procurement plans of the |
20 | | electric utilities shall be pursuant to competitive |
21 | | bidding processes and shall be approved by the Commission |
22 | | pursuant to Section 16-111.5 of the Public Utilities Act. |
23 | | (d) Clean coal portfolio standard. |
24 | | (1) The General Assembly finds that there are abundant |
25 | | and cost-effective supplies of high volatile rank |
26 | | bituminous coal with a sulfur content of at least 1.7 |
|
| | 09700SB1653ham001 | - 41 - | LRB097 05721 ASK 56016 a |
|
|
1 | | pounds per million btu energy content, and that it is |
2 | | technologically feasible to produce electric energy using |
3 | | such coal supplies reliably. The General Assembly further |
4 | | finds that state-of-the-art gasification systems are |
5 | | available to convert coal supplies with the foregoing |
6 | | characteristics into gas and that it is feasible to use |
7 | | such gas to generate electric energy without exceeding |
8 | | allowable emission rates for sulfur dioxide, nitrogen |
9 | | oxides, carbon monoxide, particulates, and mercury for a |
10 | | natural gas-fired combined-cycle facility of the same size |
11 | | as and in the same location as a clean coal facility |
12 | | incorporating a gasification system and a combined cycle |
13 | | power block. The General Assembly also finds that it is |
14 | | feasible to engineer and construct systems designed to |
15 | | capture and sequester the percentages of the carbon dioxide |
16 | | emissions from clean coal facilities as specified in this |
17 | | Act. Accordingly, the General Assembly finds it necessary |
18 | | for the health, safety, welfare, and prosperity of Illinois |
19 | | citizens to require Illinois electric utilities and |
20 | | alternative electric retail electric suppliers to contract |
21 | | with the initial clean coal facility to meet a portion of |
22 | | the needs of each such electric utility's and alternative |
23 | | retail electric supplier's retail load on the terms and |
24 | | conditions described under this Act. |
25 | | The procurement plans under subsection (a) of this |
26 | | Section shall include cost effective electricity generated |
|
| | 09700SB1653ham001 | - 42 - | LRB097 05721 ASK 56016 a |
|
|
1 | | using clean coal. Each electric utility shall enter into |
2 | | one or more sourcing agreements with the initial clean coal |
3 | | facility, as provided in paragraph (3) of this subsection |
4 | | (d), covering electricity generated by the initial clean |
5 | | coal facility representing (A) at least 5% of that each |
6 | | utility's total supply to serve the load of eligible retail |
7 | | customers in the immediately preceding year 2015 and each |
8 | | year thereafter , as described in paragraph (3) of this |
9 | | subsection (d), or (B) such lesser amount as may be |
10 | | available from the initial clean coal facility, reduced by |
11 | | subject to the limits on the amount of power to be |
12 | | purchased specified in paragraph (2) of this subsection |
13 | | (d). It is the goal of the State that by January 1, 2025, |
14 | | 25% of the electricity used in the State shall be generated |
15 | | by cost-effective clean coal facilities. For purposes of |
16 | | this subsection (d), "cost-effective" means that the |
17 | | expenditures pursuant to such sourcing agreements do not |
18 | | cause the limit stated in paragraph (2) of this subsection |
19 | | (d) to be exceeded and do not exceed cost-based benchmarks, |
20 | | which shall be developed to assess all expenditures |
21 | | pursuant to such sourcing agreements covering electricity |
22 | | generated by clean coal facilities, other than the initial |
23 | | clean coal facility, by the procurement administrator, in |
24 | | consultation with the Commission staff, Agency staff, and |
25 | | the procurement monitor and shall be subject to Commission |
26 | | review and approval. |
|
| | 09700SB1653ham001 | - 43 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (A) A utility party to a sourcing agreement shall |
2 | | immediately retire any emission credits that it receives in |
3 | | connection with the electricity covered by such agreement. |
4 | | (B) Utilities shall maintain adequate records |
5 | | documenting the purchases under the sourcing agreement to |
6 | | comply with this subsection (d) and shall file an |
7 | | accounting with the load forecast that must be filed with |
8 | | the Agency by July 15 of each year, in accordance with |
9 | | subsection (d) of Section 16-111.5 of the Public Utilities |
10 | | Act. |
11 | | (C) A utility shall be deemed to have complied with the |
12 | | clean coal portfolio standard specified in this subsection |
13 | | (d) if the utility enters into a sourcing agreement as |
14 | | required by this subsection (d). |
15 | | (2) For purposes of this subsection (d), the required |
16 | | execution of sourcing agreements with the initial clean |
17 | | coal facility for a particular year shall be measured as a |
18 | | percentage of the actual amount of electricity |
19 | | (megawatt-hours) supplied by the electric utility to |
20 | | eligible retail customers in the immediately preceding |
21 | | year planning year ending immediately prior to the |
22 | | agreement's execution . For purposes of this subsection |
23 | | (d), the amount paid per kilowatthour means the total |
24 | | amount paid for electric service expressed on a per |
25 | | kilowatthour basis. For purposes of this subsection (d), |
26 | | the total amount paid for electric service includes without |
|
| | 09700SB1653ham001 | - 44 - | LRB097 05721 ASK 56016 a |
|
|
1 | | limitation amounts paid for supply, transmission, |
2 | | distribution, surcharges and add-on taxes. |
3 | | Notwithstanding the requirements of this subsection |
4 | | (d), the total amount purchased paid under sourcing |
5 | | agreements with the initial clean coal facility clean coal |
6 | | facilities pursuant to the procurement plan for any given |
7 | | year shall be reduced by an amount necessary to limit the |
8 | | annual estimated average net increase due to the costs of |
9 | | these resources included in the amounts paid by eligible |
10 | | retail customers in connection with electric service to: |
11 | | (A) in 2010, no more than 0.5% of the amount paid |
12 | | per kilowatthour by those customers during the year |
13 | | ending May 31, 2009; |
14 | | (B) in 2011, the greater of an additional 0.5% of |
15 | | the amount paid per kilowatthour by those customers |
16 | | during the year ending May 31, 2010 or 1% of the amount |
17 | | paid per kilowatthour by those customers during the |
18 | | year ending May 31, 2009; |
19 | | (C) in 2012, the greater of an additional 0.5% of |
20 | | the amount paid per kilowatthour by those customers |
21 | | during the year ending May 31, 2011 or 1.5% of the |
22 | | amount paid per kilowatthour by those customers during |
23 | | the year ending May 31, 2009; |
24 | | (D) in 2013, the greater of an additional 0.5% of |
25 | | the amount paid per kilowatthour by those customers |
26 | | during the year ending May 31, 2012 or 2% of the amount |
|
| | 09700SB1653ham001 | - 45 - | LRB097 05721 ASK 56016 a |
|
|
1 | | paid per kilowatthour by those customers during the |
2 | | year ending May 31, 2009; and |
3 | | (E) thereafter : |
4 | | (i) A calculation shall be made for each year |
5 | | to determine whether , the total amount paid under |
6 | | sourcing agreements with clean coal facilities |
7 | | pursuant to the procurement plan for any single |
8 | | year shall be reduced by an amount necessary to |
9 | | limit the estimated average net per kilowatthour |
10 | | increase due to the cost of electric power |
11 | | purchased under sourcing agreements and these |
12 | | resources included in the amounts paid by small |
13 | | electric eligible retail customers in connection |
14 | | with electric service exceeds to no more than the |
15 | | greater of (i) 2.015% of the amount paid per |
16 | | kilowatthour by eligible retail those customers |
17 | | during the year ending May 31, 2009 or (ii) the |
18 | | incremental amount per kilowatthour paid for these |
19 | | resources in 2013. These requirements may be |
20 | | altered only as provided by statute . For purposes |
21 | | of such calculation, such average net per |
22 | | kilowatthour increase in rates of small electric |
23 | | customers that are not eligible retail customers |
24 | | shall be deemed to be equal to such average net per |
25 | | kilowatthour increase in rates of eligible retail |
26 | | customers. |
|
| | 09700SB1653ham001 | - 46 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (ii) If for any year the small customer rate |
2 | | impact would exceed the limitation described in |
3 | | item (i) of this subparagraph (E), the clean coal |
4 | | fraction for each clean coal electricity buyer |
5 | | shall be adjusted for such year in a manner that |
6 | | will result in (a) the quantity of electric power |
7 | | projected to be purchased by each clean coal |
8 | | electricity buyer being reduced by an amount |
9 | | sufficient to result in such deemed rate impact on |
10 | | all small electric customers (whether served by |
11 | | electric utilities or alternative retail electric |
12 | | suppliers) being equal to such limitation for such |
13 | | year and (b) any such reductions in amounts |
14 | | allocated to the clean coal electricity buyers in |
15 | | order to achieve the objective described in clause |
16 | | (a) of this item (ii) being allocated to, and |
17 | | purchased and paid for by, the clean coal |
18 | | electricity buyers in proportion to their retail |
19 | | sales to large electric customers. |
20 | | (iii) Each year, after taking account of the |
21 | | adjustment, if any, provided for in item (ii) of |
22 | | this subparagraph (E), a calculation shall be made |
23 | | to determine whether the large customer deemed |
24 | | rate impact for such year exceeds $0.005 per |
25 | | kilowatthour. The "large customer deemed rate |
26 | | impact" for any year is the projected increase in |
|
| | 09700SB1653ham001 | - 47 - | LRB097 05721 ASK 56016 a |
|
|
1 | | electric rates of large electric customers |
2 | | (whether served by electric utilities or |
3 | | alternative retail electric suppliers) due to the |
4 | | cost of electric power purchased under sourcing |
5 | | agreements to the extent it is based on each clean |
6 | | coal electricity buyer's retail sales to large |
7 | | electric customers, which shall be calculated in |
8 | | substantially the same manner as the calculation |
9 | | of rate impact on small electric customers, and |
10 | | shall assume that such cost of purchases under |
11 | | sourcing agreements is passed through |
12 | | proportionally by the clean coal electricity |
13 | | buyers to their large electric customers. The |
14 | | calculation of the large customer deemed rate |
15 | | impact shall (a) assume that the total retail sales |
16 | | (expressed in kilowatthours sold) to large |
17 | | electric customers by all clean coal electricity |
18 | | buyers for any year is the greater of the actual |
19 | | amount of such sales in such year and the amount of |
20 | | such sales in 2009 and (b) exclude from the |
21 | | calculation any actual costs for such year |
22 | | incurred by the initial clean coal facility to the |
23 | | extent such costs exceed the corresponding amount |
24 | | assumed in the "reference case" of the facility |
25 | | cost report for the initial clean coal facility for |
26 | | such year and are not principally within the |
|
| | 09700SB1653ham001 | - 48 - | LRB097 05721 ASK 56016 a |
|
|
1 | | reasonable control of the initial clean coal |
2 | | facility. |
3 | | Any operating costs or revenues deviating from |
4 | | the corresponding costs assumed in the "reference |
5 | | case" of the facility cost report for the initial |
6 | | clean coal facility as a result of changes in |
7 | | market prices, including, but not limited to, |
8 | | prices of coal, natural gas, electricity, |
9 | | by-products, and emissions allowances, shall be |
10 | | deemed to be outside of the reasonable control of |
11 | | the initial clean coal facility and excluded from |
12 | | the calculation. |
13 | | Any costs exceeding the corresponding costs |
14 | | assumed in the "reference case" of the facility |
15 | | cost report for the initial clean coal facility as |
16 | | a result of changes in capital costs, fixed |
17 | | operating costs, variable operating costs, |
18 | | operating efficiency, and availability, except in |
19 | | each case to the extent resulting from a change in |
20 | | market prices or from a change in law, as defined |
21 | | in subsection (b) of Section 1-76 of this Act, |
22 | | shall be deemed to be within the reasonable control |
23 | | of the initial clean coal facility and included in |
24 | | the calculation. |
25 | | (iv) If for any year the large customer deemed |
26 | | rate impact would exceed the limitation described |
|
| | 09700SB1653ham001 | - 49 - | LRB097 05721 ASK 56016 a |
|
|
1 | | in item (iii) of this subparagraph (E), the |
2 | | quantity of electric power required to be |
3 | | purchased by each clean coal electricity buyer |
4 | | that serves large electric customers under its |
5 | | sourcing agreement for such year shall be reduced |
6 | | by such amount as will result in the large customer |
7 | | deemed rate impact being equal to such limitation |
8 | | for such year, and the clean coal fractions of each |
9 | | clean coal electricity buyer that serves large |
10 | | electric customers shall be adjusted for such year |
11 | | to reflect this reduction; provided, however, that |
12 | | the reduction under this item (iv) shall not exceed |
13 | | in any year an amount that would result in revenues |
14 | | under the sourcing agreements being reduced by |
15 | | more than $50,000,000 in the aggregate for such |
16 | | year. Any quantities of electric power not |
17 | | required to be purchased pursuant to the operation |
18 | | of the immediately preceding sentence may be |
19 | | disposed of by the initial clean coal facility for |
20 | | its own account, and the proceeds of any sales of |
21 | | such electric power shall not be included in the |
22 | | formula rate. |
23 | | (v) The details of the calculations |
24 | | contemplated by this subparagraph (E) shall be set |
25 | | forth in the sourcing agreements . |
26 | | (vi)
No later than June 30, 2015, the |
|
| | 09700SB1653ham001 | - 50 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Commission shall review the limitation on the |
2 | | total amount paid under sourcing agreements, if |
3 | | any, with the initial clean coal facility |
4 | | facilities pursuant to this subsection (d) and |
5 | | report to the General Assembly its findings as to |
6 | | the effect of the whether that limitation on the |
7 | | initial clean coal facility, electric utilities, |
8 | | alternative retail electric suppliers, and |
9 | | customers of the electric utilities and the |
10 | | alternative retail electric suppliers unduly |
11 | | constrains the amount of electricity generated by |
12 | | cost-effective clean coal facilities that is |
13 | | covered by sourcing agreements . |
14 | | (3) Initial clean coal facility. In order to promote |
15 | | the use development of clean coal electric power facilities |
16 | | in Illinois, each electric utility subject to this Section |
17 | | shall execute a sourcing agreement to source electricity |
18 | | from the initial clean coal facility. The Agency shall |
19 | | accept applications to be designated the initial clean coal |
20 | | facility for a period of 30 days after the effective date |
21 | | of this amendatory Act of the 97th General Assembly. Each |
22 | | application shall include a proposed sourcing agreement in |
23 | | accordance with the requirements of this paragraph (3) and |
24 | | information showing that the applicant meets the other |
25 | | criteria set out in the definition of initial clean coal |
26 | | facility provided in Section 1-10 of this Act. In the event |
|
| | 09700SB1653ham001 | - 51 - | LRB097 05721 ASK 56016 a |
|
|
1 | | that only one proposed initial clean coal facility that |
2 | | meets each of the requirements submits a proposed sourcing |
3 | | agreement to the Agency within that time period, the Agency |
4 | | shall select such proposed initial clean coal facility as |
5 | | the initial clean coal facility. In the event that more |
6 | | than one proposed initial clean coal facility that meets |
7 | | each of the requirements submit a proposed sourcing |
8 | | agreement to the Agency within that time period, the Agency |
9 | | shall select as the initial clean coal facility the |
10 | | electric generating facility that the Agency determines |
11 | | best promotes the needs and interests of the citizens of |
12 | | the State of Illinois. In making such determination, the |
13 | | Agency shall take into account for each proposed initial |
14 | | clean coal facility the technical and economic feasibility |
15 | | of such facility, including access to capital and the |
16 | | financeability of the facility based upon the proposed |
17 | | sourcing agreement, the projected environmental |
18 | | performance of such facility, the ability of such facility |
19 | | to be dispatched to support the transmission grid's |
20 | | capability to integrate with wind, solar, and other |
21 | | intermittent resources, and the reliability and cost of |
22 | | electric transmission service from the facility to the |
23 | | electric utilities. The Agency shall announce the |
24 | | designation of the initial clean coal facility within 45 |
25 | | days after the effective date of this amendatory Act of the |
26 | | 97th General Assembly. a proposed clean coal facility in |
|
| | 09700SB1653ham001 | - 52 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Illinois (the "initial clean coal facility") that will have |
2 | | a nameplate capacity of at least 500 MW when commercial |
3 | | operation commences, that has a final Clean Air Act permit |
4 | | on the effective date of this amendatory Act of the 95th |
5 | | General Assembly, and that will meet the definition of |
6 | | clean coal facility in Section 1-10 of this Act when |
7 | | commercial operation commences. The sourcing agreements |
8 | | with this initial clean coal facility shall be subject to |
9 | | both approval of the initial clean coal facility by the |
10 | | General Assembly and satisfaction of the requirements of |
11 | | paragraph (4) of this subsection (d) and shall be executed |
12 | | within 90 days after any such approval by the General |
13 | | Assembly. The Agency and the Commission shall have |
14 | | authority to inspect all books and records associated with |
15 | | the initial clean coal facility during the term of such a |
16 | | sourcing agreement. A utility's sourcing agreement for |
17 | | electricity produced by the initial clean coal facility |
18 | | shall include: |
19 | | (A) provisions governing the price paid for |
20 | | electricity generated by the initial clean coal |
21 | | facility, which shall be determined according to |
22 | | clause (iv) of subparagraph (B) of this paragraph (3); |
23 | | a formula contractual price (the "contract price") |
24 | | approved pursuant to paragraph (4) of this subsection |
25 | | (d), which shall: |
26 | | (i) be determined using a cost of service |
|
| | 09700SB1653ham001 | - 53 - | LRB097 05721 ASK 56016 a |
|
|
1 | | methodology employing either a level or deferred |
2 | | capital recovery component, based on a capital |
3 | | structure consisting of 45% equity and 55% debt, |
4 | | and a return on equity as may be approved by the |
5 | | Federal Energy Regulatory Commission, which in any |
6 | | case may not exceed the lower of 11.5% or the rate |
7 | | of return approved by the General Assembly |
8 | | pursuant to paragraph (4) of this subsection (d); |
9 | | and |
10 | | (ii) provide that all miscellaneous net |
11 | | revenue, including but not limited to net revenue |
12 | | from the sale of emission allowances, if any, |
13 | | substitute natural gas, if any, grants or other |
14 | | support provided by the State of Illinois or the |
15 | | United States Government, firm transmission |
16 | | rights, if any, by-products produced by the |
17 | | facility, energy or capacity derived from the |
18 | | facility and not covered by a sourcing agreement |
19 | | pursuant to paragraph (3) of this subsection (d) or |
20 | | item (5) of subsection (d) of Section 16-115 of the |
21 | | Public Utilities Act, whether generated from the |
22 | | synthesis gas derived from coal, from SNG, or from |
23 | | natural gas, shall be credited against the revenue |
24 | | requirement for this initial clean coal facility; |
25 | | (B) power purchase provisions, which shall: |
26 | | (i) provide that the utility party to the |
|
| | 09700SB1653ham001 | - 54 - | LRB097 05721 ASK 56016 a |
|
|
1 | | sourcing agreement shall pay the contract price |
2 | | under such sourcing agreement determined pursuant |
3 | | to subparagraph (A); |
4 | | (ii) require delivery of electricity by the |
5 | | initial clean coal facility to the regional |
6 | | transmission organization market of the utility |
7 | | party to the sourcing agreement; |
8 | | (iii) require the utility party to the |
9 | | sourcing agreement to buy from the initial clean |
10 | | coal facility in each hour an amount of energy |
11 | | equal to all clean coal energy made available from |
12 | | the initial clean coal facility during such hour |
13 | | times the clean coal fraction for such utility for |
14 | | the applicable month, provided that the amount |
15 | | purchased by the utility in any year will be |
16 | | limited by paragraph (2) of this subsection (d); |
17 | | (iv) require the utility party to the sourcing |
18 | | agreement to pay to the initial clean coal facility |
19 | | for each month the following: the electric |
20 | | generation variable charge multiplied by the |
21 | | quantity of energy required to be purchased by such |
22 | | utility in such month plus the product of the sum |
23 | | of the fuel charge; plus the fixed monthly charge, |
24 | | based on the MW of nameplate capacity of the |
25 | | initial clean coal facility's power block, for |
26 | | such month, multiplied by the fraction determined |
|
| | 09700SB1653ham001 | - 55 - | LRB097 05721 ASK 56016 a |
|
|
1 | | for the utility for such month according to clause |
2 | | (iii) of this subparagraph (B);
for purposes of |
3 | | this clause (iv), "electric generation variable |
4 | | charge", "fuel charge", and "fixed monthly charge" |
5 | | shall each have the meaning ascribed to the term in |
6 | | subsection (a) of Section 1-76 of this Act; and |
7 | | (v) be considered pre-existing contracts in |
8 | | the utility's procurement plans for eligible |
9 | | retail customers;
The provisions of this |
10 | | subparagraph (B) are severable under Section 1.31 |
11 | | of the Statute on Statutes. |
12 | | (B) power purchase provisions, which shall: |
13 | | (i) provide that the utility party to such |
14 | | sourcing agreement shall pay the contract price |
15 | | for electricity delivered under such sourcing |
16 | | agreement; |
17 | | (ii) require delivery of electricity to the |
18 | | regional transmission organization market of the |
19 | | utility that is party to such sourcing agreement; |
20 | | (iii) require the utility party to such |
21 | | sourcing agreement to buy from the initial clean |
22 | | coal facility in each hour an amount of energy |
23 | | equal to all clean coal energy made available from |
24 | | the initial clean coal facility during such hour |
25 | | times a fraction, the numerator of which is such |
26 | | utility's retail market sales of electricity |
|
| | 09700SB1653ham001 | - 56 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (expressed in kilowatthours sold) in the State |
2 | | during the prior calendar month and the |
3 | | denominator of which is the total retail market |
4 | | sales of electricity (expressed in kilowatthours |
5 | | sold) in the State by utilities during such prior |
6 | | month and the sales of electricity (expressed in |
7 | | kilowatthours sold) in the State by alternative |
8 | | retail electric suppliers during such prior month |
9 | | that are subject to the requirements of this |
10 | | subsection (d) and paragraph (5) of subsection (d) |
11 | | of Section 16-115 of the Public Utilities Act, |
12 | | provided that the amount purchased by the utility |
13 | | in any year will be limited by paragraph (2) of |
14 | | this subsection (d); and |
15 | | (iv) be considered pre-existing contracts in |
16 | | such utility's procurement plans for eligible |
17 | | retail customers; |
18 | | (C) contract for differences provisions, which |
19 | | shall: |
20 | | (i) require the utility party to such sourcing |
21 | | agreement to contract with the initial clean coal |
22 | | facility in each hour with respect to an amount of |
23 | | energy equal to all clean coal energy made |
24 | | available from the initial clean coal facility |
25 | | during such hour times the clean coal a fraction |
26 | | for such utility for applicable month , the |
|
| | 09700SB1653ham001 | - 57 - | LRB097 05721 ASK 56016 a |
|
|
1 | | numerator of which is such utility's retail market |
2 | | sales of electricity (expressed in kilowatthours |
3 | | sold) in the utility's service territory in the |
4 | | State 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 paid by the |
15 | | utility in any year will be limited by paragraph |
16 | | (2) of this subsection (d); |
17 | | (ii) provide that the utility's payment |
18 | | obligation in respect of the quantity of |
19 | | electricity determined pursuant to the preceding |
20 | | clause (i) for any month shall be limited to an |
21 | | amount equal to (1) the difference of the electric |
22 | | generation variable charge, the fuel charge, and |
23 | | the fixed monthly charge, that would be payable by |
24 | | the utility for such month based on such quantity |
25 | | of electricity between the contract price |
26 | | determined pursuant to clause (iv) of subparagraph |
|
| | 09700SB1653ham001 | - 58 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (B) (A) of this paragraph (3) , minus the product of |
2 | | (1) of this subsection (d) and the day-ahead price |
3 | | for electricity delivered to the regional |
4 | | transmission organization market of the electric |
5 | | utility that is party to such sourcing agreement |
6 | | (or any successor delivery point at which such |
7 | | utility's supply obligations are financially |
8 | | settled on an hourly basis) (the "reference |
9 | | price") on the day preceding the day on which the |
10 | | electricity is delivered to the initial clean coal |
11 | | facility busbar, multiplied by (2) the quantity of |
12 | | electricity determined pursuant to the preceding |
13 | | clause (i) , calculated for each hour in such month ; |
14 | | and |
15 | | (iii) not require the utility to take physical |
16 | | delivery of the electricity produced by the |
17 | | facility; |
18 | | (D) general provisions, which shall: |
19 | | (i) specify a term of no more than 30 years, |
20 | | commencing on the commercial operation date of the |
21 | | facility; |
22 | | (ii) provide that electric utilities shall |
23 | | maintain adequate records documenting purchases |
24 | | under the sourcing agreements entered into to |
25 | | comply with this subsection (d) and shall file an |
26 | | accounting with the load forecast that must be |
|
| | 09700SB1653ham001 | - 59 - | LRB097 05721 ASK 56016 a |
|
|
1 | | filed with the Agency by July 15 of each year, in |
2 | | accordance with subsection (d) of Section 16-111.5 |
3 | | of the Public Utilities Act. |
4 | | (iii) provide that all costs associated with |
5 | | the initial clean coal facility will be |
6 | | periodically reported to the Federal Energy |
7 | | Regulatory Commission and to purchasers in |
8 | | accordance with applicable laws governing |
9 | | cost-based wholesale power contracts; |
10 | | (iv) permit the Illinois Power Agency , if it is |
11 | | so authorized by law, to assume ownership of the |
12 | | initial clean coal facility, without monetary |
13 | | consideration and otherwise on reasonable terms |
14 | | acceptable to the Agency, if the Agency so requests |
15 | | no less than 3 years prior to the end of the stated |
16 | | contract term; |
17 | | (v) require the owner of the initial clean coal |
18 | | facility to comply with provisions reflecting |
19 | | those set forth in Section 1-76.5 of this Act; |
20 | | provide documentation to the Commission each year, |
21 | | starting in the facility's first year of |
22 | | commercial operation, accurately reporting the |
23 | | quantity of carbon emissions from the facility |
24 | | that have been captured and sequestered and report |
25 | | any quantities of carbon released from the site or |
26 | | sites at which carbon emissions were sequestered |
|
| | 09700SB1653ham001 | - 60 - | LRB097 05721 ASK 56016 a |
|
|
1 | | in prior years, based on continuous monitoring of |
2 | | such sites. If, in any year after the first year of |
3 | | commercial operation, the owner of the facility |
4 | | fails to demonstrate that the initial clean coal |
5 | | facility captured and sequestered at least 50% of |
6 | | the total carbon emissions that the facility would |
7 | | otherwise emit or that sequestration of emissions |
8 | | from prior years has failed, resulting in the |
9 | | release of carbon dioxide into the atmosphere, the |
10 | | owner of the facility must offset excess |
11 | | emissions. Any such carbon offsets must be |
12 | | permanent, additional, verifiable, real, located |
13 | | within the State of Illinois, and legally and |
14 | | practicably enforceable. The cost of such offsets |
15 | | for the facility that are not recoverable shall not |
16 | | exceed $15 million in any given year. No costs of |
17 | | any such purchases of carbon offsets may be |
18 | | recovered from a utility or its customers. All |
19 | | carbon offsets purchased for this purpose and any |
20 | | carbon emission credits associated with |
21 | | sequestration of carbon from the facility must be |
22 | | permanently retired. The initial clean coal |
23 | | facility shall not forfeit its designation as a |
24 | | clean coal facility if the facility fails to fully |
25 | | comply with the applicable carbon sequestration |
26 | | requirements in any given year, provided the |
|
| | 09700SB1653ham001 | - 61 - | LRB097 05721 ASK 56016 a |
|
|
1 | | requisite offsets are purchased. However, the |
2 | | Attorney General, on behalf of the People of the |
3 | | State of Illinois, may specifically enforce the |
4 | | facility's sequestration requirement and the other |
5 | | terms of this contract provision. Compliance with |
6 | | the sequestration requirements and offset purchase |
7 | | requirements specified in paragraph (3) of this |
8 | | subsection (d) shall be reviewed annually by an |
9 | | independent expert retained by the owner of the |
10 | | initial clean coal facility, with the advance |
11 | | written approval of the Attorney General. The |
12 | | Commission may, in the course of the review |
13 | | specified in item (vii), reduce the allowable |
14 | | return on equity for the facility if the facility |
15 | | wilfully fails to comply with the carbon capture |
16 | | and sequestration requirements set forth in this |
17 | | item (v); |
18 | | (vi) include limits on, and accordingly |
19 | | provide for a reduction modification of , the |
20 | | amount the utility is required to source under the |
21 | | sourcing agreement consistent with paragraph (2) |
22 | | of this subsection (d); |
23 | | (vii) require Commission review: (1) to |
24 | | determine the justness, reasonableness, and |
25 | | prudence of the inputs to the formula referenced in |
26 | | subparagraphs (A)(i) through (A)(iii) of paragraph |
|
| | 09700SB1653ham001 | - 62 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (3) of this subsection (d), prior to an adjustment |
2 | | in those inputs including, without limitation, the |
3 | | capital structure and return on equity, fuel |
4 | | costs, and other operations and maintenance costs |
5 | | and (2) to approve the costs to be passed through |
6 | | to customers under the sourcing agreement by which |
7 | | the utility satisfies its statutory obligations. |
8 | | Commission review shall occur no less than every 3 |
9 | | years, regardless of whether any adjustments have |
10 | | been proposed, and shall be completed within 9 |
11 | | months; |
12 | | (vii) (viii) limit the utility's obligation to |
13 | | such amount as the utility is allowed to recover |
14 | | through tariffs filed with the Commission , |
15 | | provided that neither the clean coal facility nor |
16 | | the utility waives any right to assert federal |
17 | | pre-emption or any other argument in response to a |
18 | | purported disallowance of recovery costs ; |
19 | | (viii) (ix) limit the utility's or alternative |
20 | | retail electric supplier's obligation to incur any |
21 | | liability to only those times until such time as |
22 | | the facility is in commercial operation and |
23 | | generating power and energy and such power and |
24 | | energy is being delivered to the facility busbar; |
25 | | (ix) provide that each electric utility shall |
26 | | have the right to determine whether the |
|
| | 09700SB1653ham001 | - 63 - | LRB097 05721 ASK 56016 a |
|
|
1 | | obligations of the utility party under the |
2 | | sourcing agreement shall be governed by the power |
3 | | purchase provisions or the contract for |
4 | | differences provisions before entering into the |
5 | | sourcing agreements; the provisions of this item |
6 | | (ix) are severable under Section 1.31 of the |
7 | | Statute on Statutes; |
8 | | (x) provide that the owner or owners of the |
9 | | initial clean coal facility, which is the |
10 | | counterparty to such sourcing agreement, shall |
11 | | have the right from time to time to elect whether |
12 | | the obligations of the utility party thereto shall |
13 | | be governed by the power purchase provisions or the |
14 | | contract for differences provisions; |
15 | | (x) (xi) append documentation showing that the |
16 | | formula rate and contract, insofar as they relate |
17 | | to the power purchase provisions, have been |
18 | | approved by the Federal Energy Regulatory |
19 | | Commission pursuant to Section 205 of the Federal |
20 | | Power Act; |
21 | | (xi) (xii) provide that any changes to the |
22 | | terms of the contract, insofar as such changes |
23 | | relate to the power purchase provisions, are |
24 | | subject to review under the public interest |
25 | | standard applied by the Federal Energy Regulatory |
26 | | Commission pursuant to Sections 205 and 206 of the |
|
| | 09700SB1653ham001 | - 64 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Federal Power Act; and |
2 | | (xii) (xiii) conform with customary lender |
3 | | requirements in power purchase agreements used as |
4 | | the basis for financing non-utility generators. |
5 | | (xiii) provide for performance incentives |
6 | | regarding availability, efficiency, and by-product |
7 | | quantities, with premium performance and |
8 | | shortfalls in performance to result in positive |
9 | | and negative adjustments, respectively, to the |
10 | | rate of return approved by the Commission, |
11 | | provided that such rate of return in any year shall |
12 | | not be decreased by more than $25,000,000 or |
13 | | increased by more than $12,500,000 as a result of |
14 | | such performance incentives. Such performance |
15 | | incentives shall be structured so that any |
16 | | increases in the rate of return as a result of such |
17 | | performance incentives are designed not to exceed |
18 | | the projected benefits to the buyers resulting |
19 | | from the initial clean coal facility's achievement |
20 | | of that performance incentive; |
21 | | (xiv) include forecasting and scheduling |
22 | | obligations that take account of the requirements |
23 | | of the applicable regional transmission |
24 | | organizations; and |
25 | | (xv) include operating guidelines relating to |
26 | | the operating configuration and dispatch of the |
|
| | 09700SB1653ham001 | - 65 - | LRB097 05721 ASK 56016 a |
|
|
1 | | initial clean coal facility, which guidelines |
2 | | shall be subject to change from time to time with |
3 | | input from a committee consisting of |
4 | | representatives of the electric utilities and |
5 | | alternative retail electric suppliers that are |
6 | | parties to sourcing agreements with the initial |
7 | | clean coal facility; any actions taken or not taken |
8 | | by the owner of the initial clean coal facility in |
9 | | compliance with such operating guidelines shall be |
10 | | deemed to be prudent, and the prudence of the costs |
11 | | resulting from the action shall be evaluated in |
12 | | light of the fact that the initial clean coal |
13 | | facility is required to comply with such operating |
14 | | guidelines. |
15 | | (4) Effective date of sourcing agreements with the |
16 | | initial clean coal facility. No later than 30 days after |
17 | | the effective date of this amendatory Act of the 97th |
18 | | General Assembly, the initial clean coal facility shall |
19 | | submit a draft sourcing agreement to the Agency and each |
20 | | electric utility required to enter into such agreements |
21 | | pursuant to paragraph (3) of this subsection (d) and the |
22 | | initial clean coal facility and each such electric utility |
23 | | shall promptly and diligently negotiate in good faith over |
24 | | the terms of the sourcing agreement. Within 30 days after |
25 | | receipt of the draft sourcing agreement, each such electric |
26 | | utility shall provide the Agency and the owner of the |
|
| | 09700SB1653ham001 | - 66 - | LRB097 05721 ASK 56016 a |
|
|
1 | | initial clean coal facility with its comments and |
2 | | recommended revisions to the draft sourcing agreement. |
3 | | Within 15 days after the receipt of the electric utility's |
4 | | comments and recommended revisions, the owner of the |
5 | | initial clean coal facility shall submit its responsive |
6 | | comments and a further revised draft of the sourcing |
7 | | agreement to the Agency. The Agency shall review the draft |
8 | | sourcing agreement and comments and retain an independent, |
9 | | qualified, and experienced mediator to mediate disputes |
10 | | over the draft sourcing agreement's terms. The mediator |
11 | | shall not own or control any direct or indirect interest in |
12 | | the initial clean coal facility and shall have no |
13 | | contractual relationship with the initial clean coal |
14 | | facility. The mediator shall have knowledge of the energy |
15 | | industry. |
16 | | If the parties to the sourcing agreement do not agree |
17 | | on the terms in the sourcing agreement within 15 days after |
18 | | receiving the owner's responsive comments and further |
19 | | revised draft, then the mediator retained by the Agency |
20 | | shall mediate the dispute between the parties. If the |
21 | | parties are in agreement on the terms of the sourcing |
22 | | agreement, then the Agency shall approve the final draft |
23 | | sourcing agreement within 30 days after the parties reach |
24 | | agreement and notify the Commission of that agreement. If, |
25 | | within 30 days after the commencement of mediation, the |
26 | | parties have failed to come to agreement, then the Agency |
|
| | 09700SB1653ham001 | - 67 - | LRB097 05721 ASK 56016 a |
|
|
1 | | shall, with assistance, as appropriate, from the mediator |
2 | | retained pursuant to this paragraph (4), review and revise |
3 | | the draft sourcing agreement as necessary. |
4 | | The Agency may approve a sourcing agreement only after |
5 | | it finds the sourcing agreement is consistent with the |
6 | | provisions of this Act and contains only terms that are |
7 | | balanced and equitable and fairly protect the interests of |
8 | | the parties to the sourcing agreement, with such approval |
9 | | to occur no later than 60 days after the commencement of |
10 | | the mediation. The Agency shall not withhold or condition |
11 | | its approval of the sourcing agreement based upon least |
12 | | cost resource principles or whether or not it would be |
13 | | prudent for buyers to enter into such an agreement if there |
14 | | were no legal requirement to do so, nor shall the |
15 | | resolution of open issues be based on these principles. |
16 | | If the sourcing agreement is approved, then each |
17 | | electric utility required to enter into a sourcing |
18 | | agreement shall have 30 days after either the Agency's |
19 | | approval or the issuance of any necessary approval by the |
20 | | Federal Energy Regulatory Commission, whichever is later, |
21 | | to enter into the sourcing agreement. The Agency shall |
22 | | submit the approved sourcing agreement to the Commission |
23 | | within 15 days after approval. Each electric utility and |
24 | | the initial clean coal facility shall pay a reasonable fee |
25 | | as required by the Agency for its services under this |
26 | | paragraph (4) and shall pay the mediator's reasonable fees, |
|
| | 09700SB1653ham001 | - 68 - | LRB097 05721 ASK 56016 a |
|
|
1 | | if any. The Agency shall adopt and make public a policy |
2 | | detailing the process for retaining a mediator under this |
3 | | paragraph (4). |
4 | | Any proposed sourcing agreement with the initial clean |
5 | | coal facility shall not become effective unless a facility |
6 | | cost report and Commission report, as described in this |
7 | | paragraph (4), the following reports are prepared and |
8 | | submitted , whether prepared and submitted before or after |
9 | | the effective date of this amendatory Act of the 97th |
10 | | General Assembly. and authorizations and approvals |
11 | | obtained: |
12 | | (i) Facility cost report. The owner of the initial |
13 | | clean coal facility shall submit to the Commission, the |
14 | | Agency, and the General Assembly a front-end engineering |
15 | | and design study, a facility cost report, method of |
16 | | financing (including but not limited to structure and |
17 | | associated costs), and an operating and maintenance cost |
18 | | quote for the facility (collectively "facility cost |
19 | | report"), which shall be prepared in accordance with the |
20 | | requirements of this paragraph (4) of subsection (d) of |
21 | | this Section, and shall provide the Commission and the |
22 | | Agency access to the work papers, relied upon documents, |
23 | | and any other backup documentation related to the facility |
24 | | cost report. |
25 | | (ii) Commission report. Within 6 months following |
26 | | receipt of the facility cost report, the Commission, in |
|
| | 09700SB1653ham001 | - 69 - | LRB097 05721 ASK 56016 a |
|
|
1 | | consultation with the Agency, shall submit a Commission |
2 | | report to the General Assembly setting forth its analysis |
3 | | of the facility cost report. Such report shall include, but |
4 | | not be limited to, a comparison of the costs associated |
5 | | with electricity generated by the initial clean coal |
6 | | facility to the costs associated with electricity |
7 | | generated by other types of generation facilities, an |
8 | | analysis of the rate impacts on residential and small |
9 | | business customers over the life of the sourcing |
10 | | agreements, and an analysis of the likelihood that the |
11 | | initial clean coal facility will commence commercial |
12 | | operation by and be delivering power to the facility's |
13 | | busbar by 2016. To assist in the preparation of its report, |
14 | | the Commission, in consultation with the Agency, may hire |
15 | | one or more experts or consultants, the costs of which |
16 | | shall be paid for by the owner of the initial clean coal |
17 | | facility. The Commission and Agency may begin the process |
18 | | of selecting such experts or consultants prior to receipt |
19 | | of the facility cost report. |
20 | | (iii) General Assembly approval. The proposed |
21 | | sourcing agreements shall not take effect unless, |
22 | | based on the facility cost report and the Commission's |
23 | | report, the General Assembly enacts authorizing |
24 | | legislation approving (A) the projected price, stated |
25 | | in cents per kilowatthour, to be charged for |
26 | | electricity generated by the initial clean coal |
|
| | 09700SB1653ham001 | - 70 - | LRB097 05721 ASK 56016 a |
|
|
1 | | facility, (B) the projected impact on residential and |
2 | | small business customers' bills over the life of the |
3 | | sourcing agreements, and (C) the maximum allowable |
4 | | return on equity for the project; and |
5 | | (iv) Commission review. If the General Assembly |
6 | | enacts authorizing legislation pursuant to |
7 | | subparagraph (iii) approving a sourcing agreement, the |
8 | | Commission shall, within 90 days of such enactment, |
9 | | complete a review of such sourcing agreement. During |
10 | | such time period, the Commission shall implement any |
11 | | directive of the General Assembly, resolve any |
12 | | disputes between the parties to the sourcing agreement |
13 | | concerning the terms of such agreement, approve the |
14 | | form of such agreement, and issue an order finding that |
15 | | the sourcing agreement is prudent and reasonable. |
16 | | The facility cost report shall be prepared as follows: |
17 | | (A) The facility cost report shall be prepared by duly |
18 | | licensed engineering and construction firms detailing the |
19 | | estimated capital costs payable to one or more contractors |
20 | | or suppliers for the engineering, procurement and |
21 | | construction of the components comprising the initial |
22 | | clean coal facility and the estimated costs of operation |
23 | | and maintenance of the facility. The facility cost report |
24 | | shall include: |
25 | | (i) an estimate of the capital cost of the core |
26 | | plant based on one or more front end engineering and |
|
| | 09700SB1653ham001 | - 71 - | LRB097 05721 ASK 56016 a |
|
|
1 | | design studies for the gasification island and related |
2 | | facilities. The core plant shall include all civil, |
3 | | structural, mechanical, electrical, control, and |
4 | | safety systems ; and . |
5 | | (ii) an estimate of the capital cost of the balance |
6 | | of the plant, including any capital costs associated |
7 | | with sequestration of carbon dioxide emissions and all |
8 | | interconnects and interfaces required to operate the |
9 | | facility, such as transmission of electricity, |
10 | | construction or backfeed power supply, pipelines to |
11 | | transport substitute natural gas or carbon dioxide, |
12 | | potable water supply, natural gas supply, water |
13 | | supply, water discharge, landfill, access roads, and |
14 | | coal delivery. |
15 | | In the facility cost report, the The quoted |
16 | | construction costs shall be expressed in nominal dollars as |
17 | | of the date that the quote is prepared and shall include |
18 | | (1) capitalized financing costs during construction,
(2) |
19 | | taxes, insurance, and other owner's costs, and (3) an |
20 | | assumed escalation in materials and labor beyond the date |
21 | | as of which the construction cost quote is expressed. |
22 | | In the facility cost report, the (B) The front end |
23 | | engineering and design study for the gasification island |
24 | | and the cost study for the balance of plant shall include |
25 | | sufficient design work to permit quantification of major |
26 | | categories of materials, commodities and labor hours, and |
|
| | 09700SB1653ham001 | - 72 - | LRB097 05721 ASK 56016 a |
|
|
1 | | receipt of quotes from vendors of major equipment required |
2 | | to construct and operate the clean coal facility. |
3 | | (C) The facility cost report shall also include an |
4 | | operating and maintenance cost quote that will provide the |
5 | | estimated cost of delivered fuel, personnel, maintenance |
6 | | contracts, chemicals, catalysts, consumables, spares, and |
7 | | other fixed and variable operations and maintenance costs. |
8 | | (a) The delivered fuel cost estimate will be provided by a |
9 | | recognized third party expert or experts in the fuel and |
10 | | transportation industries. (b) The balance of the |
11 | | operating and maintenance cost quote, excluding delivered |
12 | | fuel costs , will be developed based on the inputs provided |
13 | | by duly licensed engineering and construction firms |
14 | | performing the construction cost quote, potential vendors |
15 | | under long-term service agreements and plant operating |
16 | | agreements, or recognized third party plant operator or |
17 | | operators. |
18 | | The operating and maintenance cost quote (including |
19 | | the cost of the front end engineering and design study) |
20 | | shall be expressed in nominal dollars as of the date that |
21 | | the quote is prepared and shall include (1) taxes, |
22 | | insurance, and other owner's costs, and (2) an assumed |
23 | | escalation in materials and labor beyond the date as of |
24 | | which the operating and maintenance cost quote is |
25 | | expressed. |
26 | | (D) The facility cost report shall also include (i) an |
|
| | 09700SB1653ham001 | - 73 - | LRB097 05721 ASK 56016 a |
|
|
1 | | analysis of the initial clean coal facility's ability to |
2 | | deliver power and energy into the applicable regional |
3 | | transmission organization markets and (ii) an analysis of |
4 | | the expected capacity factor for the initial clean coal |
5 | | facility. |
6 | | (E) Amounts paid to third parties unrelated to the |
7 | | owner or owners of the initial clean coal facility to |
8 | | prepare the core plant construction cost quote, including |
9 | | the front end engineering and design study, and the |
10 | | operating and maintenance cost quote will be reimbursed |
11 | | through Coal Development Bonds. |
12 | | (5) Re-powering and retrofitting coal-fired power |
13 | | plants previously owned by Illinois utilities to qualify as |
14 | | clean coal facilities. During the 2009 procurement |
15 | | planning process and thereafter, the Agency and the |
16 | | Commission shall consider sourcing agreements covering |
17 | | electricity generated by power plants that were previously |
18 | | owned by Illinois utilities and that have been or will be |
19 | | converted into clean coal facilities, as defined by Section |
20 | | 1-10 of this Act. Pursuant to such procurement planning |
21 | | process, the owners of such facilities may propose to the |
22 | | Agency sourcing agreements with utilities and alternative |
23 | | retail electric suppliers required to comply with |
24 | | subsection (d) of this Section and item (5) of subsection |
25 | | (d) of Section 16-115 of the Public Utilities Act, covering |
26 | | electricity generated by such facilities. In the case of |
|
| | 09700SB1653ham001 | - 74 - | LRB097 05721 ASK 56016 a |
|
|
1 | | sourcing agreements that are power purchase agreements, |
2 | | the contract price for electricity sales shall be |
3 | | established on a cost of service basis. In the case of |
4 | | sourcing agreements that are contracts for differences, |
5 | | the contract price from which the reference price is |
6 | | subtracted shall be established on a cost of service basis. |
7 | | The Agency and the Commission may approve any such utility |
8 | | sourcing agreements that do not exceed cost-based |
9 | | benchmarks developed by the procurement administrator, in |
10 | | consultation with the Commission staff, Agency staff and |
11 | | the procurement monitor, subject to Commission review and |
12 | | approval. The Commission shall have authority to inspect |
13 | | all books and records associated with these clean coal |
14 | | facilities during the term of any such contract. |
15 | | (6) Costs incurred by a utility under this subsection |
16 | | (d) or pursuant to a contract or sourcing agreement entered |
17 | | into under this subsection (d) shall be deemed prudently |
18 | | incurred and reasonable in amount and the electric utility |
19 | | shall be entitled to full cost recovery pursuant to the |
20 | | tariffs filed with the Commission. |
21 | | (e) The draft procurement plans are subject to public |
22 | | comment, as required by Section 16-111.5 of the Public |
23 | | Utilities Act and Section 1-78 of this Act . |
24 | | (f) The Agency shall submit the final procurement plan to |
25 | | the Commission. The Agency shall revise a procurement plan if |
26 | | the Commission determines that it does not meet the standards |
|
| | 09700SB1653ham001 | - 75 - | LRB097 05721 ASK 56016 a |
|
|
1 | | set forth in Section 16-111.5 of the Public Utilities Act and |
2 | | Section 1-78 of this Act . |
3 | | (g) The Agency shall assess fees to each affected utility |
4 | | to recover the costs incurred in preparation of the annual |
5 | | procurement plan for the utility. |
6 | | (h) The Agency shall assess fees to each bidder to recover |
7 | | the costs incurred in connection with a competitive procurement |
8 | | process. |
9 | | (i) The Agency shall assess fees to the initial clean coal |
10 | | facility to recover the costs incurred in preparation of each |
11 | | procurement plan for the initial clean coal facility. |
12 | | (j) The General Assembly deems it a prudent business |
13 | | practice to develop and promote economic opportunities for |
14 | | minorities, females, and persons with disabilities in the |
15 | | energy production industry. |
16 | | The initial clean coal facility, any clean coal facility, |
17 | | and any clean coal SNG facility shall include in any agreement |
18 | | to sell electric power or SNG entered into pursuant to this Act |
19 | | provisions that require the owner of the facility to make a |
20 | | good faith effort to ensure that an amount equal to not less |
21 | | than 15% of the value of its prime construction contract for |
22 | | the facility shall be established as a goal to be awarded to |
23 | | minority owned businesses, female owned businesses, and |
24 | | businesses owned by a person with a disability; provided that |
25 | | at least 75% of the amount of such total goal shall be for |
26 | | minority owned businesses. |
|
| | 09700SB1653ham001 | - 76 - | LRB097 05721 ASK 56016 a |
|
|
1 | | "Minority owned business", "female owned business", and |
2 | | "business owned by a person with a disability" shall have the |
3 | | meanings ascribed to them in Section 2 of the Business |
4 | | Enterprise for Minorities, Females, and Persons with |
5 | | Disabilities Act.
|
6 | | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09; |
7 | | 96-159, eff. 8-10-09; 96-1437, eff. 8-17-10.) |
8 | | (20 ILCS 3855/1-76 new) |
9 | | Sec. 1-76. Costs and revenue recoverable by the initial |
10 | | clean coal facility. |
11 | | (a) The price paid for electricity generated by the initial |
12 | | clean coal facility shall be based on a formula rate using a |
13 | | cost of service methodology applicable to wholesale electric |
14 | | power contracts employing a level or deferred capital component |
15 | | and in accordance with the Uniform System of Accounts, subject |
16 | | to and as specifically limited by the provisions set forth in |
17 | | this Section. |
18 | | The formula rate shall determine 3 components of the price |
19 | | under the sourcing agreements: (1) a fuel charge, (2) an |
20 | | electric generation variable charge, and (3) a fixed monthly |
21 | | charge. The fuel charge for any month shall be stated in |
22 | | dollars per month and shall consist of the total actual fuel |
23 | | costs incurred, after taking account of the subtraction of |
24 | | miscellaneous net revenue as provided in subsection (d) of this |
25 | | Section. The electric generation variable charge for any period |
|
| | 09700SB1653ham001 | - 77 - | LRB097 05721 ASK 56016 a |
|
|
1 | | shall be stated in dollars per MWh and shall consist of all |
2 | | costs incurred by the initial clean coal facility, other than |
3 | | fuel costs, associated with production of electric energy by |
4 | | the initial clean coal facility's power block, which costs vary |
5 | | directly with the level of production of electric energy. The |
6 | | fixed monthly charge shall be stated in dollars per month per |
7 | | MW of nameplate capacity of the initial clean coal facility's |
8 | | power block and shall consist of all costs incurred by the |
9 | | initial clean coal facility that are described in, and as |
10 | | limited by the provisions of, subsections (b), (c), (d), (e), |
11 | | (f), and (g) of this Section, other than the costs incorporated |
12 | | into the calculation of the fuel charge and the electric |
13 | | generation variable charge. |
14 | | No later than 30 days after the approval of the sourcing |
15 | | agreement by the Agency pursuant to paragraph (4) of subsection |
16 | | (d) of Section 1-75 of this Act, the initial clean coal |
17 | | facility shall provide to the Commission projections of its |
18 | | costs for the term of the sourcing agreements. Within 90 days |
19 | | thereafter, the Commission shall, based upon such projections |
20 | | and the provisions of this Section, determine the projected |
21 | | components of the price for each year for the initial clean |
22 | | coal facility. No later than 6 months before the expected |
23 | | commencement of commercial operation of the initial clean coal |
24 | | facility and the commencement of each operating year |
25 | | thereafter, the initial clean coal facility shall submit to the |
26 | | Commission protections of its costs and dispatch levels for the |
|
| | 09700SB1653ham001 | - 78 - | LRB097 05721 ASK 56016 a |
|
|
1 | | upcoming year. Within 120 days after the receipt of the initial |
2 | | clean coal facility's projections of its costs and dispatch |
3 | | levels for the upcoming year, the Commission shall calculate a |
4 | | fixed monthly charge and an electric generation variable charge |
5 | | for the upcoming year using the inputs to the formula rate |
6 | | under the provisions of this Section. If the Commission does |
7 | | not calculate such components of the price for any year as of |
8 | | the beginning of such year, then the initial clean coal |
9 | | facility shall calculate such components of the price based |
10 | | upon its projections and the provisions of this Section, with |
11 | | any subsequent cost disallowance by the Commission to be |
12 | | reflected through a true-up of costs in the next year. If at |
13 | | any time the Commission, acting in accordance with this |
14 | | Section, disallows any cost, then the amount of such |
15 | | disallowance shall be incorporated as a deduction into the |
16 | | calculation of the fixed monthly charge and the electric |
17 | | generation variable charge, as applicable, for the next year. |
18 | | (b) Capital costs set by the Commission according to this |
19 | | subsection (b) shall be included in the formula rate. "Capital |
20 | | costs" means costs for the purchase of land, buildings, |
21 | | construction, and equipment to be used in the production of |
22 | | electricity, and other costs recorded in the Electric Plant |
23 | | Accounts and other applicable Balance Sheet Accounts of the |
24 | | Uniform System of Accounts for the initial clean coal facility. |
25 | | The Capital Development Board shall calculate a range of |
26 | | capital costs that it believes would be a reasonable cost for |
|
| | 09700SB1653ham001 | - 79 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the initial clean coal facility. The Capital Development Board |
2 | | shall commence performing its responsibilities under this |
3 | | subsection (b) within 30 days after the effective date of this |
4 | | amendatory Act of the 97th General Assembly. In determining a |
5 | | range of capital costs, the Capital Development Board shall |
6 | | base its evaluation and judgment on professional engineering |
7 | | and regulatory accounting principles and include any cost |
8 | | information and update on costs that may be provided by the |
9 | | initial clean coal facility and shall not employ least cost |
10 | | resource principles. In addition, the Capital Development |
11 | | Board may: |
12 | | (1) include in its consideration the information in a |
13 | | facility cost report, if any, that was prepared and |
14 | | submitted by the initial clean coal facility to the |
15 | | Commission in accordance with paragraph (4) of subsection |
16 | | (d) of Section 1-75 of this Act; |
17 | | (2) consult as much as it deems necessary with the |
18 | | initial clean coal facility; |
19 | | (3) conduct whatever research and investigation it |
20 | | deems necessary; and |
21 | | (4) retain third parties to assist in its |
22 | | determination, provided that such third parties shall not |
23 | | own or control any direct or indirect interest in the |
24 | | initial clean coal facility and shall have no contractual |
25 | | relationship with the initial clean coal facility. |
26 | | The initial clean coal facility shall cooperate with the |
|
| | 09700SB1653ham001 | - 80 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Capital Development Board in any investigation it deems |
2 | | necessary. |
3 | | The Capital Development Board shall make its final |
4 | | determination of the range of capital costs confidentially and |
5 | | shall submit that range to the Commission in a confidential |
6 | | filing no later than 90 days after the Capital Development |
7 | | Board is required to commence performing its responsibilities |
8 | | under this subsection (b). The initial clean coal facility |
9 | | shall submit to the Commission its estimate of the capital |
10 | | costs to be included in the formula rate. Only after the |
11 | | initial clean coal facility has submitted this estimate shall |
12 | | the Commission publicly announce the range of capital costs |
13 | | submitted by the Capital Development Board. In the event that |
14 | | the estimate submitted by the initial clean coal facility is |
15 | | within or below the range submitted by the Capital Development |
16 | | Board, the initial clean coal facility's estimate shall be |
17 | | approved by the Commission as the amount of pre-approved |
18 | | capital costs. |
19 | | In the event that the estimate submitted by the initial |
20 | | clean coal facility is above the range submitted by the Capital |
21 | | Development Board, the amount of capital costs at the lowest |
22 | | end of the range submitted by the Capital Development Board |
23 | | shall be approved by the Commission as the amount of |
24 | | pre-approved capital costs. "Pre-approved capital costs" means |
25 | | the amount of capital costs that will be included in the |
26 | | formula rate to the extent such costs are actually incurred, |
|
| | 09700SB1653ham001 | - 81 - | LRB097 05721 ASK 56016 a |
|
|
1 | | with no further review or approval in respect to whether they |
2 | | are prudently incurred. The Commission's determination of |
3 | | pre-approved capital costs shall be made within 15 days after |
4 | | the initial clean coal facility submits its capital cost |
5 | | estimate. The Commission's decision regarding pre-approved |
6 | | capital costs shall be final and shall not be subject to |
7 | | judicial or administrative review. |
8 | | Once made, the Commission's determination of the amount of |
9 | | pre-approved capital costs may not be increased unless the |
10 | | Commission determines that the incremental costs are |
11 | | reasonable, in which case one-third of such reasonable |
12 | | incremental costs shall be included in the formula rate and |
13 | | recoverable by the initial clean coal facility and two-thirds |
14 | | of such costs shall be borne by the initial clean coal facility |
15 | | and its contractors, provided that to the extent such |
16 | | reasonable incremental costs are the result of change in law or |
17 | | non-insurable force majeure, all of such costs shall be |
18 | | included in the formula rate and recoverable by the initial |
19 | | clean coal facility. |
20 | | "Change in law" means any change, including any enactment, |
21 | | repeal, or amendment, in a law, ordinance, rule, regulation, |
22 | | interpretation, permit, license, consent or order, including |
23 | | those relating to taxes or to environmental matters, or in the |
24 | | interpretation or application thereof by any governmental |
25 | | authority occurring after May 31, 2011. |
26 | | "Non-insurable force majeure" means events outside of the |
|
| | 09700SB1653ham001 | - 82 - | LRB097 05721 ASK 56016 a |
|
|
1 | | reasonable control of the owner of the initial clean coal |
2 | | facility and its contractors, subcontractors, and agents that |
3 | | are not included on a list, to be attached to the sourcing |
4 | | agreement and subject to the procedures set forth in paragraph |
5 | | (4) of subsection (d) of Section 1-75 of this Act, of events |
6 | | that are customarily covered by builder's risk insurance |
7 | | policies for the construction of electric generating plants and |
8 | | other large process plants in the United States. "Non-insurable |
9 | | force majeure" shall not include changes in prices or other |
10 | | changes in market conditions. |
11 | | Any rebates, refunds, or other payments received by the |
12 | | owner of the initial clean coal facility from any of its |
13 | | contractors with respect to the contractor bearing risk for |
14 | | capital cost overruns shall be excluded from miscellaneous net |
15 | | revenue and shall not otherwise reduce the costs of the owner |
16 | | of the initial clean coal facility for purposes of the formula |
17 | | rate. For purposes of this subsection (b), "reasonable" means |
18 | | that the decisions, construction, and supervision of |
19 | | construction by the owner of the initial clean coal facility |
20 | | and its contractors underlying the initial capital cost and |
21 | | significant additions to the initial capital cost of the |
22 | | initial clean coal facility resulted in efficient, economical, |
23 | | and timely construction. In determining the reasonableness of |
24 | | the capital costs of the initial clean coal facility, the |
25 | | Commission shall consider the knowledge and circumstances |
26 | | prevailing at the time of each relevant decision or action of |
|
| | 09700SB1653ham001 | - 83 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the owner of the initial clean coal facility and its |
2 | | contractors. |
3 | | The Commission may determine that the amount of |
4 | | pre-approved capital costs may be increased only after notice |
5 | | and a hearing. At that hearing, the Capital Development Board |
6 | | shall submit a report recommending whether the incremental |
7 | | costs should be approved in full or in part or rejected. The |
8 | | Commission may approve in whole or in part or reject the |
9 | | incremental capital costs based on whether they are reasonable. |
10 | | At the request of the owner of the initial clean coal facility |
11 | | made not more often than once every 12 months during the |
12 | | construction period of the initial clean coal facility, the |
13 | | Commission shall conduct interim reviews to determine whether |
14 | | capital costs specified in such request and incurred or to be |
15 | | incurred by the owner of the initial clean coal facility, are |
16 | | reasonable. |
17 | | The Capital Development Board shall monitor the |
18 | | construction of the initial clean coal facility for the full |
19 | | duration of construction. The Capital Development Board, in its |
20 | | discretion, may retain third parties to facilitate such |
21 | | monitoring, provided that such third parties shall not own or |
22 | | control any direct or indirect interest in the initial clean |
23 | | coal facility and shall have no contractual relationship with |
24 | | the initial clean coal facility. The initial clean coal |
25 | | facility shall pay a reasonable fee as required by the Capital |
26 | | Development Board for the Capital Development Board's services |
|
| | 09700SB1653ham001 | - 84 - | LRB097 05721 ASK 56016 a |
|
|
1 | | under this subsection (b), and such fee shall not be passed |
2 | | through to a utility or its customers. If a third party is |
3 | | retained by the Capital Development Board for the determination |
4 | | of a range of capital costs or monitoring of construction, the |
5 | | initial clean coal facility must pay for the third party's |
6 | | reasonable fees, and such costs may not be passed through to a |
7 | | utility or its customers. |
8 | | The provisions of this subsection (b) shall apply to the |
9 | | capital costs for the initial construction of the initial clean |
10 | | coal facility and not to capital costs incurred beyond the |
11 | | initial construction, including costs for replacement of |
12 | | equipment and capital improvements, which capital costs shall |
13 | | be subject to review by the Commission and included in the |
14 | | formula rate to the extent they are determined to be prudently |
15 | | incurred. |
16 | | (c) Operations and maintenance costs set by the Commission |
17 | | according to this subsection (c) shall be included in the |
18 | | formula rate. Operations and maintenance costs mean costs |
19 | | incurred for the administration, supervision, operation, |
20 | | maintenance, preservation, and protection of the initial clean |
21 | | coal facility's physical plant and other costs recorded in the |
22 | | Operation and Maintenance Expense Accounts and other |
23 | | applicable Income Statement Accounts of the Uniform System of |
24 | | Accounts for the initial clean coal facility. The Commission |
25 | | shall assess the prudency of the operations and maintenance |
26 | | costs for the initial clean coal facility and shall allow the |
|
| | 09700SB1653ham001 | - 85 - | LRB097 05721 ASK 56016 a |
|
|
1 | | initial clean coal facility to include in the formula rate only |
2 | | those costs the Commission deems to be prudent. The Commission |
3 | | may in its discretion retain an expert to assist in its review |
4 | | of operations and maintenance costs. The initial clean coal |
5 | | facility shall pay for the expert's fees if an expert is |
6 | | retained by the Commission, and such costs may not be passed |
7 | | through to a utility or its customers. The Commission's |
8 | | determination regarding the amount of operations and |
9 | | maintenance costs that may be included in the formula rate for |
10 | | each year shall be made in accordance with this Section. |
11 | | (d) Actual fuel costs shall be set by the Agency through a |
12 | | SNG feedstock procurement, pursuant to Section 1-78 of this |
13 | | Act, to be performed at least every 5 years, and purchased by |
14 | | the initial clean coal facility pursuant to a reasonable fuel |
15 | | supply plan, with coal comprising at least 50% of the total |
16 | | feedstock over the term of a sourcing agreement with all coal |
17 | | having high volatile bituminous rank and greater than 1.7 |
18 | | pounds of sulfur per million btu content, SNG derived from coal |
19 | | comprising at least 50% of the fuel to generate electricity, |
20 | | SNG derived from biomass comprising up to 10% of the fuel to |
21 | | generate electricity with the approval of the Commission, and |
22 | | natural gas comprising the remainder of the fuel to generate |
23 | | electricity. Actual fuel costs shall consist of all costs |
24 | | associated with the procurement of fuel, including, but not |
25 | | limited to, commodity costs, transportation costs, |
26 | | administrative costs, and costs relating to the procurement |
|
| | 09700SB1653ham001 | - 86 - | LRB097 05721 ASK 56016 a |
|
|
1 | | process. Actual fuel costs, as so determined, shall be reduced |
2 | | by miscellaneous net revenue received by the owner of the |
3 | | initial clean coal facility, including, but not limited to, net |
4 | | revenue from the sale of emission allowances, if any, |
5 | | substitute natural gas, if any, grants or other support |
6 | | provided by the State of Illinois or the United States |
7 | | Government, firm transmission rights, if any, by-products |
8 | | produced by the facility, any capacity derived from the |
9 | | facility and bid into the capacity markets or otherwise sold |
10 | | and any energy generated as a result of such capacity being |
11 | | called, whether generated from synthesis gas derived from coal, |
12 | | from SNG, or from natural gas, less non-generation variable |
13 | | costs. "Non-generation variable costs" means all costs, other |
14 | | than fuel costs, associated with the production of SNG that is |
15 | | not consumed by the initial clean coal facility's power block, |
16 | | which costs vary directly with the level of production of SNG. |
17 | | Actual fuel costs shall be calculated pursuant to this |
18 | | subsection (d) and included in the formula rate without any |
19 | | determination by the Commission as to prudency. |
20 | | (e) Sequestration costs set by the Commission according to |
21 | | this subsection (e) shall be included in the formula rate. |
22 | | "Sequestration costs" means costs incurred to (1) capture |
23 | | carbon dioxide; (2) compress carbon dioxide; (3) build, |
24 | | operate, and maintain a sequestration site in which carbon |
25 | | dioxide may be injected; (4) build, operate, and maintain a |
26 | | carbon dioxide pipeline, which is owned by the initial clean |
|
| | 09700SB1653ham001 | - 87 - | LRB097 05721 ASK 56016 a |
|
|
1 | | coal facility; (5) transport the carbon dioxide to a |
2 | | sequestration site or a pipeline; and (6) perform monitoring, |
3 | | verification and other activities associated with carbon |
4 | | capture and sequestration. |
5 | | "Sequestration capital costs" means sequestration costs |
6 | | recorded in the Electric Plant Accounts and other applicable |
7 | | Balance Sheet Accounts of the Uniform System of Accounts for |
8 | | the initial clean coal facility. |
9 | | "Sequestration operations and maintenance costs" means |
10 | | sequestration costs that are recorded in the Operation and |
11 | | Maintenance Expense Accounts and other applicable Income |
12 | | Statement Accounts of the Uniform System of Accounts for the |
13 | | initial clean coal facility and shall include maintenance, |
14 | | monitoring, and verification costs. |
15 | | The Capital Development Board shall calculate an estimate |
16 | | of sequestration capital costs that it believes would be a |
17 | | reasonable cost for the initial clean coal facility's |
18 | | sequestration facilities and an estimate of average annual |
19 | | sequestration operations and maintenance costs that it |
20 | | believes would be a reasonable average annual operation and |
21 | | maintenance cost for the initial clean coal facility's carbon |
22 | | capture and sequestration activities. The Capital Development |
23 | | Board shall commence performing its responsibilities under |
24 | | this subsection (e) within 30 days after the effective date of |
25 | | this amendatory Act of the 97th General Assembly. In |
26 | | determining sequestration capital costs and sequestration |
|
| | 09700SB1653ham001 | - 88 - | LRB097 05721 ASK 56016 a |
|
|
1 | | operations and maintenance costs, the Capital Development |
2 | | Board shall base its evaluation and judgment on professional |
3 | | engineering and regulatory accounting principles and include |
4 | | any cost information and update on costs that may be provided |
5 | | by the initial clean coal facility and shall not employ least |
6 | | cost resource principles. In addition the Capital Development |
7 | | Board may: (A) include in its consideration cost estimate |
8 | | information in a facility cost report, if any, that was |
9 | | prepared and submitted by the initial clean coal facility to |
10 | | the Commission in accordance with paragraph (4) of subsection |
11 | | (d) of Section 1-75 of this Act; (B) consult as much as it |
12 | | deems necessary with the initial clean coal facility; (C) |
13 | | conduct whatever research and investigation it deems |
14 | | necessary; and (D) retain third parties to assist in its |
15 | | determination, provided that such third parties shall not own |
16 | | or control any direct or indirect interest in the initial clean |
17 | | coal facility and shall have no contractual relationship with |
18 | | the initial clean coal facility. The initial clean coal |
19 | | facility shall cooperate with the Capital Development Board in |
20 | | any investigation it deems necessary. |
21 | | The Capital Development Board shall make its final |
22 | | determination of sequestration capital costs and sequestration |
23 | | operations and maintenance costs and submit such determination |
24 | | to the Commission no later than 90 days after the Capital |
25 | | Development Board is required to commence performing its |
26 | | responsibilities under this subsection (e). The Capital |
|
| | 09700SB1653ham001 | - 89 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Development Board shall monitor construction of the |
2 | | sequestration facilities in the same manner, and with the same |
3 | | rights to retain an expert and recover the costs thereof, as |
4 | | set forth in subsection (b) of this Section. |
5 | | "Actual sequestration costs" means for any year the sum of: |
6 | | (i) the annual amortized portion of sequestration capital |
7 | | costs, based on level amortization from the later of the date |
8 | | such costs are incurred and the commercial operation date until |
9 | | the end of the term of the sourcing agreements; (ii) the rate |
10 | | of return approved by the Commission pursuant to subsection (f) |
11 | | of this Section applied to sequestration capital costs; and |
12 | | (iii) the sequestration operations and maintenance costs |
13 | | incurred in such year. |
14 | | "Target sequestration costs" means the sum of: (i) the |
15 | | annual amortized portion of the estimated sequestration |
16 | | capital costs determined by the Capital Development Board, |
17 | | based on level amortization from the later of the date such |
18 | | costs are incurred and the commercial operation date until the |
19 | | end of the term of the sourcing agreements; (ii) the rate of |
20 | | return approved by the Commission pursuant to subsection (f) of |
21 | | this Section applied to the estimated sequestration capital |
22 | | costs determined by the Capital Development Board; (iii) the |
23 | | estimate of average annual sequestration operations and |
24 | | maintenance costs determined by the Capital Development Board, |
25 | | escalated in accordance with an escalation factor to be |
26 | | provided in the sourcing agreement from the date of the Capital |
|
| | 09700SB1653ham001 | - 90 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Development Board's determination to the mid-point of the |
2 | | applicable year; (iv) the sequestration cost underrun, if any, |
3 | | for the immediately preceding year, except to the extent |
4 | | applied to allow recovery of a sequestration cost overrun from |
5 | | a prior year; and (v) any sequestration costs that are the |
6 | | result of a change in law or non-insurable force majeure. |
7 | | "Sequestration cost underrun" means for any year the |
8 | | excess, if any, of target sequestration costs for such year |
9 | | over actual sequestration costs for such year. |
10 | | "Sequestration cost overrun" means for any year the excess, |
11 | | if any, of actual sequestration costs for such year over target |
12 | | sequestration costs for such year. |
13 | | For any year in which there is a sequestration cost |
14 | | underrun, all actual sequestration costs shall be conclusively |
15 | | deemed to be prudent and shall be included in the formula rate |
16 | | with no further review or approval in respect of whether they |
17 | | are prudently incurred. The Commission shall review the costs |
18 | | to ensure they are mathematically correct. |
19 | | For any year in which there is a sequestration cost |
20 | | overrun, the Commission shall determine whether all or a |
21 | | portion of such sequestration cost overrun was prudently |
22 | | incurred, except that the rate of return shall not be subject |
23 | | to review. If the Commission determines that the sequestration |
24 | | cost overrun was prudently incurred, one-third of such |
25 | | sequestration cost overrun shall be included in the formula |
26 | | rate and recoverable by the initial clean coal facility and |
|
| | 09700SB1653ham001 | - 91 - | LRB097 05721 ASK 56016 a |
|
|
1 | | two-thirds of such sequestration cost overrun shall be borne by |
2 | | the initial clean coal facility and not passed through to a |
3 | | utility, an alternative retail electric supplier, or the |
4 | | customers of a utility unless and until there is a |
5 | | sequestration cost underrun for a subsequent year, in which |
6 | | event the sequestration cost overrun will be included in the |
7 | | formula rate and recoverable by the initial clean coal facility |
8 | | up to the amount of the sequestration cost underrun; provided, |
9 | | however, that if for any year two-thirds of such sequestration |
10 | | cost overrun exceeds the difference of $20,000,000 minus the |
11 | | amount of penalty, if any, payable by the initial clean coal |
12 | | facility pursuant to Section 1-76.5 with respect to that year, |
13 | | the amount of such excess shall also be included in the formula |
14 | | rate and recoverable by the initial clean coal facility. The |
15 | | detailed procedures for implementing this provision shall be |
16 | | set forth in the sourcing agreements, which procedures shall |
17 | | include a mechanism for equitably adjusting target |
18 | | sequestration costs for any year in which the quantity of |
19 | | carbon dioxide actually captured and sequestered by the initial |
20 | | clean coal facility is greater than the quantity assumed in |
21 | | calculating the estimated costs for such year. |
22 | | "Change in law" means any change, including any enactment, |
23 | | repeal, or amendment, in a law, ordinance, rule, regulation, |
24 | | interpretation, permit, license, consent or order, including |
25 | | those relating to taxes or to environmental matters, or in the |
26 | | interpretation or application thereof by any governmental |
|
| | 09700SB1653ham001 | - 92 - | LRB097 05721 ASK 56016 a |
|
|
1 | | authority occurring after January 1, 2011. |
2 | | "Non-insurable force majeure" means events outside of the |
3 | | reasonable control of the owner of the initial clean coal |
4 | | facility and its contractors, subcontractors, and agents that |
5 | | are not included on a list, to be attached to the sourcing |
6 | | agreement and subject to the procedures set forth in paragraph |
7 | | (4) of subsection (d) of Section 1-75 of this Act, of events |
8 | | that are customarily covered by builder's risk insurance |
9 | | policies for the construction of electric generating plants and |
10 | | other large process plants in the United States. "Non-insurable |
11 | | force majeure" shall not include changes in prices or other |
12 | | changes in market conditions. |
13 | | (f) The Commission shall determine within 120 days after |
14 | | the effective date of this amendatory Act of the 97th General |
15 | | Assembly or 120 days after the owner of the initial clean coal |
16 | | facility files initial direct testimony regarding rate of |
17 | | return with the Commission, whichever is later, the total rate |
18 | | of return on invested capital for the initial clean coal |
19 | | facility following notice and a public hearing. At the hearing, |
20 | | all interested parties, including utilities, alternative |
21 | | retail electric suppliers, the Attorney General, the Agency, |
22 | | and customers, shall be given an opportunity to be heard. In |
23 | | determining the rate of return, the Commission shall select a |
24 | | sufficient return on investment so as to enable the initial |
25 | | clean coal facility to attract capital in financial markets at |
26 | | competitive rates. The Commission shall consider the rates of |
|
| | 09700SB1653ham001 | - 93 - | LRB097 05721 ASK 56016 a |
|
|
1 | | return received by developers of facilities similar to the |
2 | | initial clean coal facility inside or outside Illinois, the |
3 | | need to balance an incentive for clean-coal technology with the |
4 | | need to protect Illinois ratepayers from high electricity |
5 | | costs, and any other information the Commission deems relevant. |
6 | | The Agency shall recommend a rate of return to the |
7 | | Commission utilizing the criteria in this subsection (f). The |
8 | | Commission shall further take into account the recommendation |
9 | | of the Agency, but shall not be bound by it. The rate of return |
10 | | shall be no lower than 75 basis points lower than the weighted |
11 | | average authorized total rates of return of the electric |
12 | | utilities in accordance with original cost rate base for their |
13 | | electric distribution assets as of January 1, 2011. |
14 | | Notwithstanding the minimum rate of return established in the |
15 | | preceding sentence, the rate of return shall be no greater than |
16 | | the total rate of return on invested capital that the initial |
17 | | clean coal facility would achieve based on an assumed 55% debt |
18 | | and 45% equity capital structure, with the cost of debt being |
19 | | the actual average cost, including all associated costs and |
20 | | fees, of the initial clean coal facility's debt and the cost of |
21 | | equity being 11.5%. The Commission's determination of the rate |
22 | | of return shall include a mechanism providing for a one-time |
23 | | adjustment at or about the commencement of commercial operation |
24 | | of the initial clean coal facility to adjust for changes in |
25 | | applicable Treasury yield rates between the date of its |
26 | | provisional determination of the rate of return and the dates |
|
| | 09700SB1653ham001 | - 94 - | LRB097 05721 ASK 56016 a |
|
|
1 | | of construction period borrowing by the initial clean coal |
2 | | facility, which adjustment shall apply to 55% of total capital. |
3 | | The Commission's decision shall be final and not subject to |
4 | | any rehearing or administrative or judicial review. The rate of |
5 | | return determined by the Commission pursuant to this subsection |
6 | | (f) shall apply for the term of the sourcing agreements and |
7 | | shall not be subject to change, except for the one-time |
8 | | adjustment to reflect Treasury yield rate changes as expressly |
9 | | contemplated by this subsection (f) and as otherwise expressly |
10 | | provided in subsection (b) of Section 1-76.5 of this Act. |
11 | | (g) The following shall not be included in determining the |
12 | | formula rate: advertising expenses that do not meet the |
13 | | requirements of Sections 9-225 and 9-226 of the Public |
14 | | Utilities Act, political activity or lobbying expenses as |
15 | | defined by Section 9-224 of the Public Utilities Act, social |
16 | | club dues, or charitable contributions, to the extent, in each |
17 | | case, that a utility would not be permitted to recover such |
18 | | costs. |
19 | | (h) Except as otherwise provided in subsections (b) and (f) |
20 | | of this Section 1-76, within 30 days after a decision of the |
21 | | Commission on recoverable costs under this Section, any |
22 | | interested party to the Commission's decision may apply for a |
23 | | rehearing with respect to the decision. The Commission shall |
24 | | receive and consider such application for rehearing and shall |
25 | | grant or deny the application in whole or in part within 20 |
26 | | days from the date of the receipt thereof by the Commission. If |
|
| | 09700SB1653ham001 | - 95 - | LRB097 05721 ASK 56016 a |
|
|
1 | | no rehearing is applied for within the required 30 days or an |
2 | | application for rehearing is denied, the Commission decision |
3 | | shall be final. |
4 | | If an application for rehearing is granted, the Commission |
5 | | shall hold a rehearing within 30 days after granting the |
6 | | application. The decision of the Commission upon rehearing |
7 | | shall be final. Except as otherwise provided in subsections (b) |
8 | | and (f) of this Section 1-76, any person affected by a decision |
9 | | of the Commission under this Section 1-76 may have the decision |
10 | | reviewed only under and in accordance with the Administrative |
11 | | Review Law. Except as otherwise provided in subsections (b) and |
12 | | (f) of this Section 1-76, the provisions of the Administrative |
13 | | Review Law, all amendments modifications thereof and the rules |
14 | | adopted pursuant thereto, shall apply to and govern all |
15 | | proceedings for the judicial review of final administrative |
16 | | decisions of the Commission under this subsection (h). The term |
17 | | "administrative decision" is defined as in Section 3-101 of the |
18 | | Code of Civil Procedure. |
19 | | (i) The Capital Development Board shall adopt and make |
20 | | public a policy detailing the process for retaining third |
21 | | parties under this Section. Any third parties retained to |
22 | | assist with calculating the capital costs or sequestration |
23 | | costs shall be retained no later than 45 days after the |
24 | | effective date of this amendatory Act of the 97th General |
25 | | Assembly. |
|
| | 09700SB1653ham001 | - 96 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (20 ILCS 3855/1-76.5 new) |
2 | | Sec. 1-76.5. Capture and sequestration requirements for |
3 | | initial clean coal facility. |
4 | | (a) The initial clean coal facility shall provide |
5 | | documentation to the Commission each year of commercial |
6 | | operation accurately reporting the quantity of carbon |
7 | | emissions from the facility that have been captured and |
8 | | sequestered and report any quantities of carbon released from |
9 | | the site or sites at which carbon emissions were sequestered in |
10 | | prior years, based on continuous monitoring of such sites. If, |
11 | | in any year, the owner of the facility fails to demonstrate |
12 | | that (1) the portion of the facility that produces SNG captured |
13 | | and sequestered at least 90% of the carbon dioxide it would |
14 | | otherwise emit and (2) the initial clean coal facility as a |
15 | | whole captured and sequestered at least 50% of the total carbon |
16 | | emissions that the facility would otherwise emit or if the |
17 | | sequestration of emissions from prior years has failed, |
18 | | resulting in the release of carbon dioxide into the atmosphere, |
19 | | or both, then the owner of the initial clean coal facility must |
20 | | pay a penalty of $20,000,000, which shall be deposited into the |
21 | | Energy Efficiency Trust Fund and distributed pursuant to |
22 | | subsection (b) of Section 6-6 of the Renewable Energy, Energy |
23 | | Efficiency, and Coal Resources Development Law of 1997. |
24 | | If during the first 12 months of commercial operation of |
25 | | the initial clean coal facility, there are more than 4 stops |
26 | | and starts of the portion of the facility that produces SNG, |
|
| | 09700SB1653ham001 | - 97 - | LRB097 05721 ASK 56016 a |
|
|
1 | | with each stop and start of an individual unit constituting one |
2 | | stop and start, then the calculation of the quantities |
3 | | described in this subsection (a) shall not take into account |
4 | | any carbon dioxide emissions from the portion of the facility |
5 | | that produces SNG occurring during the stop and start-up |
6 | | periods, including related periods of non-steady state |
7 | | operation, associated with such excess stops and starts. The |
8 | | penalty resulting from the failure to capture and sequester at |
9 | | least the minimum amount of carbon dioxide shall not be passed |
10 | | through to a utility, an alternative retail electric suppler, |
11 | | or the customers of a utility. The initial clean coal facility |
12 | | shall not forfeit its designation as a clean coal facility if |
13 | | the facility fails to fully comply with the applicable carbon |
14 | | sequestration requirements in any given year, provided the |
15 | | requisite penalties are complied with. |
16 | | (b) In addition to any penalty for the initial clean coal |
17 | | facility's failure to capture and sequester at least its |
18 | | minimum sequestration requirement, the Attorney General, on |
19 | | behalf of the People of the State of Illinois, shall |
20 | | specifically enforce the facility's sequestration requirement |
21 | | and the other terms of this contract provision. Such action may |
22 | | be filed in any circuit court in Illinois. By entering into a |
23 | | sourcing agreement pursuant to subsection (d) of Section 1-75 |
24 | | of this Act, the initial clean coal facility agrees to waive |
25 | | any objections to venue or to the jurisdiction of the court |
26 | | with regard to the Attorney General's action for specific |
|
| | 09700SB1653ham001 | - 98 - | LRB097 05721 ASK 56016 a |
|
|
1 | | performance under this Section. The Commission may reduce the |
2 | | recoverable rate of return approved pursuant to Section 1-76 of |
3 | | this Act for the facility if the facility willfully fails to |
4 | | comply with the carbon capture and sequestration requirements |
5 | | set forth in this Section. |
6 | | (c) Compliance with the capture and sequestration |
7 | | requirements of this Section shall be assessed annually by the |
8 | | Commission, which may in its discretion retain an expert to |
9 | | facilitate its assessment. The initial clean coal facility |
10 | | shall pay for the expert's reasonable fees if an expert is |
11 | | retained by the Commission, and such costs shall not be passed |
12 | | through to a utility, an alternative retail electric supplier, |
13 | | or the customers of a utility. The Commission shall adopt and |
14 | | make public a policy detailing the process for retaining an |
15 | | expert under this Section. |
16 | | (d) Responsibility for compliance with the capture and |
17 | | sequestration requirements specified in this Section for the |
18 | | initial clean coal facility shall reside solely with the |
19 | | initial clean coal facility regardless of whether the facility |
20 | | has contracted with another party to capture, transport, or |
21 | | sequester carbon dioxide. |
22 | | (20 ILCS 3855/1-77 new) |
23 | | Sec. 1-77. Sequestration permitting, oversight, and |
24 | | investigations. |
25 | | (a) No clean coal facility, initial clean coal facility, or |
|
| | 09700SB1653ham001 | - 99 - | LRB097 05721 ASK 56016 a |
|
|
1 | | clean coal SNG facility may transport or sequester carbon |
2 | | dioxide unless the Commission approves the method of carbon |
3 | | dioxide transportation or sequestration as provided in this |
4 | | Section. Approval shall be required regardless of whether the |
5 | | facility has contracted with another party to transport or |
6 | | sequester the carbon dioxide. Nothing in this subsection (a) |
7 | | shall release the owner or operator of a carbon dioxide |
8 | | sequestration site or carbon dioxide pipeline from any other |
9 | | permitting requirements under applicable State and federal |
10 | | laws, statutes, rules, or regulations. |
11 | | (b) No later than 3 months prior to the date upon which the |
12 | | company intends to commence construction of the facility, the |
13 | | owner of the facility shall file with the Commission a carbon |
14 | | dioxide transportation or sequestration plan. The Commission |
15 | | shall review proposed carbon dioxide transportation and |
16 | | sequestration methods and shall approve those methods it deems |
17 | | reasonable and cost-effective. For purposes of this review, |
18 | | "cost-effective" means a commercially reasonable price for |
19 | | similar carbon dioxide transportation or sequestration |
20 | | techniques. In determining whether sequestration through |
21 | | injection is reasonable and cost-effective, the Commission may |
22 | | consult with the Illinois State Geological Survey. |
23 | | The Commission shall hold a public hearing within 30 days |
24 | | after receipt of the facility's carbon dioxide transportation |
25 | | or sequestration plan. The Commission shall post notice of the |
26 | | review on its website upon submission of a carbon dioxide |
|
| | 09700SB1653ham001 | - 100 - | LRB097 05721 ASK 56016 a |
|
|
1 | | transportation or sequestration method and shall accept |
2 | | written public comments. The Commission shall take the comments |
3 | | into account when making its decision. However, the Commission |
4 | | shall not approve a carbon dioxide sequestration method if the |
5 | | owner or operator of the sequestration site has not received |
6 | | (1) an Underground Injection Control permit from the Illinois |
7 | | Environmental Protection Agency or the United States |
8 | | Environmental Protection Agency pursuant to the Environmental |
9 | | Protection Act, (2) an Underground Injection Control permit |
10 | | from the Illinois Department of Natural Resources pursuant to |
11 | | the Illinois Oil and Gas Act, or (3) any applicable permit from |
12 | | the state in which the sequestration site is located if the |
13 | | sequestration shall take place outside of Illinois. The |
14 | | Commission shall approve or deny the carbon dioxide |
15 | | transportation or sequestration method within 90 days after the |
16 | | receipt of all required information. |
17 | | (c) At least annually, the Illinois Environmental |
18 | | Protection Agency shall inspect all carbon dioxide |
19 | | sequestration sites in Illinois to ensure the safety and |
20 | | feasibility of those sequestration sites. However, the |
21 | | Illinois Environmental Protection Agency may, as often as |
22 | | deemed necessary, monitor and conduct investigations of those |
23 | | sites. The owner or operator of the sequestration site must |
24 | | cooperate with the Illinois Environmental Protection Agency |
25 | | investigations of carbon dioxide sequestration sites. If the |
26 | | Illinois Environmental Protection Agency determines at any |
|
| | 09700SB1653ham001 | - 101 - | LRB097 05721 ASK 56016 a |
|
|
1 | | time a site creates conditions that warrant the issuance of a |
2 | | seal order under Section 34 of the Environmental Protection |
3 | | Act, then the Illinois Environmental Protection Agency shall |
4 | | seal the site pursuant to the Environmental Protection Act. If |
5 | | the Illinois Environmental Protection Agency determines at any |
6 | | time a carbon dioxide sequestration site creates conditions |
7 | | that warrant the institution of a civil action for an |
8 | | injunction under Section 43 of the Environmental Protection |
9 | | Act, then the Illinois Environmental Protection Agency shall |
10 | | request the State's Attorney or the Attorney General institute |
11 | | such action. The Illinois Environmental Protection Agency |
12 | | shall provide notice of any such actions as soon as possible on |
13 | | its website. |
14 | | (d) At least annually, the Commission shall inspect all |
15 | | carbon dioxide pipelines in Illinois that transport carbon |
16 | | dioxide to ensure the safety and feasibility of those |
17 | | pipelines. However, the Commission may, as often as deemed |
18 | | necessary, monitor and conduct investigations of those |
19 | | pipelines. The owner or operator of the pipeline must cooperate |
20 | | with the Commission investigations of the carbon dioxide |
21 | | pipelines. If the Commission determines at any time that a |
22 | | carbon dioxide pipeline creates conditions that warrant the |
23 | | issuance of a seal order under Section 34 of the Environmental |
24 | | Protection Act, then the Commission shall notify the Illinois |
25 | | Environmental Protection Agency of such conditions. In |
26 | | circumstances in which the carbon dioxide pipeline creates a |
|
| | 09700SB1653ham001 | - 102 - | LRB097 05721 ASK 56016 a |
|
|
1 | | substantial danger to the environment or public health or to |
2 | | the welfare of persons when the danger is to the livelihood of |
3 | | those persons, the State's Attorney or Attorney General may, |
4 | | upon the request of the Commission or on his or her own motion, |
5 | | institute a civil action for an immediate injunction to halt |
6 | | any discharge or other activity causing or contributing to the |
7 | | danger or require any other action as may be necessary. The |
8 | | Court may issue an ex parte order and shall schedule a hearing |
9 | | on the matter no later than 3 business days after the date of |
10 | | the injunction. The Commission shall provide notice of any such |
11 | | actions as soon as possible on its website. |
12 | | (20 ILCS 3855/1-78 new) |
13 | | Sec. 1-78. Feedstock procurement. |
14 | | (a) A feedstock procurement plan shall, every 5 years, or |
15 | | more frequently with respect to feedstock that cannot |
16 | | reasonably be procured for a 5-year period on acceptable terms, |
17 | | be prepared for the initial clean coal facility based on the |
18 | | initial clean coal facility's projection of feedstock usage and |
19 | | ratios, and consistent with the applicable requirements of this |
20 | | Act. The plan shall specifically identify the feedstock |
21 | | products to be procured following plan approval and shall |
22 | | follow all the requirements set forth in this Act and all |
23 | | applicable State and federal laws, statutes, rules, or |
24 | | regulations, as well as Commission orders. Nothing in this |
25 | | Section precludes consideration of contracts longer than 5 |
|
| | 09700SB1653ham001 | - 103 - | LRB097 05721 ASK 56016 a |
|
|
1 | | years and related forecast data. Any feedstock procurement |
2 | | occurring in accordance with this plan shall be competitively |
3 | | bid through a request for proposals process. Approval and |
4 | | implementation of the feedstock procurement plan shall be |
5 | | subject to review and approval by the Commission according to |
6 | | the provisions set forth in this Section. A feedstock |
7 | | procurement plan shall include each of the following |
8 | | components: |
9 | | (1) Daily load analysis. This analysis shall include: |
10 | | (A) multi-year historical analysis of hourly |
11 | | loads; and |
12 | | (B) known or projected changes to future loads. |
13 | | (2) Determination of the fuel specifications required |
14 | | for the initial clean coal facility, including: |
15 | | (A) feedstock mix, as set by the initial clean coal |
16 | | facility with coal having high volatile bituminous |
17 | | rank and greater than 1.7 pounds of sulfur per million |
18 | | btu content and comprising at least 50% of the total |
19 | | feedstock over the term of the sourcing agreement; |
20 | | (B) volume of each feedstock required; |
21 | | (C) quality standards of each feedstock; |
22 | | (D) transportation and delivery requirements and |
23 | | associated costs and impacts on the performance, |
24 | | availability, and reliability of the initial clean |
25 | | coal facility; |
26 | | (E) technical specifications of the initial clean |
|
| | 09700SB1653ham001 | - 104 - | LRB097 05721 ASK 56016 a |
|
|
1 | | coal facility for its feedstocks; and |
2 | | (F) appropriate testing of any proposed feedstock |
3 | | before it is incorporated into the feedstock |
4 | | procurement plan or process to determine the effect of |
5 | | such feedstock on the performance, availability, and |
6 | | reliability of the initial clean coal facility. |
7 | | (b) The feedstock procurement process shall be |
8 | | administered by a feedstock procurement administrator and |
9 | | monitored by a feedstock procurement monitor. |
10 | | (1) The feedstock procurement administrator shall: |
11 | | (A) design the final feedstock procurement process |
12 | | in accordance with subsection (d) of this Section |
13 | | following Commission approval of the feedstock |
14 | | procurement plan; |
15 | | (B) develop feedstock benchmarks in accordance |
16 | | with paragraph (3) of subsection (d) of this Section to |
17 | | be used to evaluate bids; these benchmarks shall be |
18 | | submitted to the Commission for review and approval on |
19 | | a confidential basis prior to the feedstock |
20 | | procurement event; |
21 | | (C) serve as the interface between the initial |
22 | | clean coal facility and feedstock suppliers regarding |
23 | | bidding and contract negotiations; |
24 | | (D) manage the bidder pre-qualification and |
25 | | registration process; |
26 | | (E) obtain the initial clean coal facility's |
|
| | 09700SB1653ham001 | - 105 - | LRB097 05721 ASK 56016 a |
|
|
1 | | agreement to the final form of all supply contracts and |
2 | | credit collateral agreements; |
3 | | (F) administer the request for feedstock proposals |
4 | | process; |
5 | | (G) have the discretion to negotiate to determine |
6 | | whether bidders are willing to lower the price of bids |
7 | | that meet the benchmarks approved by the Commission; |
8 | | any post-bid negotiations with bidders shall be |
9 | | limited to price only and shall be completed within 24 |
10 | | hours after opening the sealed bids and shall be |
11 | | conducted in a fair and unbiased manner; in conducting |
12 | | the negotiations, there shall be no disclosure of any |
13 | | information derived from proposals submitted by |
14 | | competing bidders; if information is disclosed to any |
15 | | bidder, it shall be provided to all competing bidders; |
16 | | (H) maintain confidentiality of supplier and |
17 | | bidding information in a manner consistent with all |
18 | | applicable laws, rules, regulations, and tariffs; |
19 | | (I) submit a confidential report to the Commission |
20 | | recommending acceptance or rejection of bids; |
21 | | (J) notify the facility of contract counterparties |
22 | | and contract specifics; and |
23 | | (K) administer related contingency feedstock |
24 | | procurement events. |
25 | | (2) The feedstock procurement monitor, who shall be |
26 | | retained by the Commission, shall: |
|
| | 09700SB1653ham001 | - 106 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (A) monitor interactions among the feedstock |
2 | | procurement administrator, suppliers, and the initial |
3 | | clean coal facility; |
4 | | (B) monitor and report to the Commission on the |
5 | | progress of the feedstock procurement process; |
6 | | (C) provide an independent confidential report to |
7 | | the Commission regarding the results of the feedstock |
8 | | procurement event; |
9 | | (D) preserve the confidentiality of supplier and |
10 | | bidding information in a manner consistent with all |
11 | | applicable laws, rules, regulations, and tariffs; |
12 | | (E) provide expert advice to the Commission and |
13 | | consult with the feedstock procurement administrator |
14 | | regarding issues related to feedstock procurement |
15 | | process design, rules, protocols, and policy-related |
16 | | matters; |
17 | | (F) consult with the feedstock procurement |
18 | | administrator regarding the development and use of |
19 | | benchmark criteria, standard form contracts, credit |
20 | | policies, and bid documents; and |
21 | | (G) assess compliance with the procurement plans |
22 | | approved by the Commission. |
23 | | (c) The feedstock procurement process shall be conducted as |
24 | | follows: |
25 | | (1) Beginning in 2012, the initial clean coal facility |
26 | | shall annually provide a range of feedstock requirement |
|
| | 09700SB1653ham001 | - 107 - | LRB097 05721 ASK 56016 a |
|
|
1 | | forecasts to the Agency by July 15 of each year, or such |
2 | | other date as may be required by the Commission or Agency. |
3 | | The feedstock requirement forecasts shall cover the 5-year |
4 | | feedstock procurement planning period for the next |
5 | | feedstock procurement plan, or such other longer period |
6 | | that the Agency or the Commission may require, and shall |
7 | | include daily data representing a high generation, low |
8 | | generation and expected generation scenario for the |
9 | | initial clean coal facility. The initial clean coal |
10 | | facility shall provide supporting data and assumptions for |
11 | | each of the scenarios. |
12 | | (2) Beginning in 2012, the Agency shall at least every |
13 | | 5 years prepare a feedstock procurement plan by August 15th |
14 | | of the applicable year, or such other date as may be |
15 | | required by the Commission. The feedstock procurement plan |
16 | | shall identify the portfolio of feedstocks to be procured. |
17 | | Copies of the feedstock procurement plan shall be posted |
18 | | and made publicly available on the Agency's and |
19 | | Commission's websites, and copies shall also be provided to |
20 | | the initial clean coal facility. The initial clean coal |
21 | | facility shall have 30 days following the date of posting |
22 | | to provide comment to the Agency on the feedstock |
23 | | procurement plan. Other interested entities also may |
24 | | comment on the feedstock procurement plan. All comments |
25 | | submitted to the Agency shall be specific, supported by |
26 | | data or other detailed analyses, and, if objecting to all |
|
| | 09700SB1653ham001 | - 108 - | LRB097 05721 ASK 56016 a |
|
|
1 | | or a portion of the feedstock procurement plan, accompanied |
2 | | by specific alternative wording or proposals. All comments |
3 | | shall be posted on the Agency's and Commission's websites. |
4 | | During this 30-day comment period, the Agency shall hold at |
5 | | least one public hearing for the purpose of receiving |
6 | | public comment on the procurement plan. Within 14 days |
7 | | following the end of the 30-day review period, the Agency |
8 | | shall revise the feedstock procurement plan as necessary |
9 | | based on the comments received, file the feedstock |
10 | | procurement plan with the Commission, and post the |
11 | | feedstock procurement plan on the websites. |
12 | | (3) Within 5 days after the filing of the feedstock |
13 | | procurement plan, any person objecting to the feedstock |
14 | | procurement plan shall file an objection with the |
15 | | Commission. Within 10 days after the filing, the Commission |
16 | | shall determine whether a hearing is necessary. The |
17 | | Commission shall enter its order confirming or modifying |
18 | | the feedstock procurement plan within 90 days after the |
19 | | filing of the feedstock procurement plan by the Agency. |
20 | | (4) The Commission shall approve the feedstock |
21 | | procurement plan, including expressly the forecast used in |
22 | | the feedstock procurement plan, if the Commission |
23 | | determines that it shall ensure adequate, reliable, |
24 | | affordable, and environmentally sustainable feedstocks to |
25 | | the clean coal facility at the lowest total cost over time, |
26 | | taking into account any benefits of price stability and |
|
| | 09700SB1653ham001 | - 109 - | LRB097 05721 ASK 56016 a |
|
|
1 | | other criteria set forth in this Section. |
2 | | (d) The feedstock procurement process shall include each of |
3 | | the following components: |
4 | | (1) Solicitation, pre-qualification, and registration |
5 | | of bidders. The feedstock procurement administrator shall |
6 | | disseminate information to potential bidders to promote a |
7 | | feedstock procurement event, notify potential bidders that |
8 | | the feedstock procurement administrator may enter into a |
9 | | post-bid price negotiation with bidders that meet the |
10 | | applicable benchmarks, provide supply requirements, and |
11 | | otherwise explain the competitive feedstock procurement |
12 | | process. In addition to such other publication as the |
13 | | feedstock procurement administrator determines is |
14 | | appropriate, this information shall be posted on the |
15 | | Agency's and the Commission's websites. The feedstock |
16 | | procurement administrator shall also administer the |
17 | | prequalification process, including evaluation of |
18 | | creditworthiness, compliance with feedstock procurement |
19 | | rules, and agreement to the standard form contract |
20 | | developed pursuant to paragraph (2) of this subsection (d). |
21 | | The feedstock procurement administrator shall then |
22 | | identify and register bidders to participate in the |
23 | | feedstock procurement event. |
24 | | (2) Standard contract forms and credit terms and |
25 | | instruments. The feedstock procurement administrator, in |
26 | | consultation with the initial clean coal facility, |
|
| | 09700SB1653ham001 | - 110 - | LRB097 05721 ASK 56016 a |
|
|
1 | | electric utilities, alternative retail electric suppliers, |
2 | | the Commission, and other interested parties and subject to |
3 | | Commission oversight, shall develop and provide standard |
4 | | contract forms for the supplier contracts that meet |
5 | | generally accepted industry practices. Standard credit |
6 | | terms and instruments that meet generally accepted |
7 | | industry practices shall be similarly developed. The |
8 | | feedstock procurement administrator shall make available |
9 | | to the Commission all written comments it receives on the |
10 | | contract forms, credit terms, or instruments. If the |
11 | | feedstock procurement administrator cannot reach agreement |
12 | | with the initial clean coal facility as to the contract |
13 | | terms and conditions, then the feedstock procurement |
14 | | administrator must notify the Commission of any disputed |
15 | | terms and the Commission shall resolve the dispute. The |
16 | | terms of the contracts shall not be subject to negotiation |
17 | | by winning bidders, and the bidders must agree to the terms |
18 | | of the contract in advance so that winning bids are |
19 | | selected solely on the basis of price. |
20 | | (3) Establishment of a market-based price benchmark. |
21 | | As part of the development of the feedstock procurement |
22 | | process, the feedstock procurement administrator, in |
23 | | consultation with the Commission staff, Agency staff, and |
24 | | the feedstock procurement monitor, shall establish |
25 | | benchmarks for evaluating the final prices in the contracts |
26 | | for each of the feedstocks that shall be procured through |
|
| | 09700SB1653ham001 | - 111 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the feedstock procurement process. The benchmarks shall be |
2 | | based on price data for similar feedstocks for the same |
3 | | delivery period and similar delivery points, or other |
4 | | delivery points after adjusting for that difference. The |
5 | | price benchmarks may also be adjusted to take into account |
6 | | differences between the information reflected in the |
7 | | underlying data sources and the specific feedstocks and |
8 | | gasification feedstock procurement process being used to |
9 | | procure for the initial clean coal facility. The benchmarks |
10 | | shall be confidential but shall be provided to the |
11 | | Commission, and shall be subject to Commission review and |
12 | | approval, prior to a feedstock procurement event. |
13 | | (4) Request for proposals. The feedstock procurement |
14 | | administrator shall design and issue a request for |
15 | | proposals to supply coal or natural gas in accordance with |
16 | | the initial clean coal facility's usage plan, as approved |
17 | | by the Commission. The request for proposals shall set |
18 | | forth a procedure for sealed, binding commitment bidding |
19 | | with pay-as-bid settlement, and provision for selection of |
20 | | bids on the basis of price. |
21 | | (5) A plan for implementing contingencies in the event |
22 | | of supplier default or failure of the feedstock procurement |
23 | | process to fully meet the expected load requirement due to |
24 | | insufficient supplier participation, Commission rejection |
25 | | of results, or any other cause. The plan must be specific |
26 | | to the initial clean coal facility's feedstock |
|
| | 09700SB1653ham001 | - 112 - | LRB097 05721 ASK 56016 a |
|
|
1 | | specifications and requirements. |
2 | | The feedstock procurement process described in this |
3 | | subsection (d) is exempt from the requirements of the Illinois |
4 | | Procurement Code pursuant to Section 20-10 of the Illinois |
5 | | Procurement Code. |
6 | | (e) Within 2 business days after opening the sealed bids, |
7 | | the feedstock procurement administrator shall submit a |
8 | | confidential report to the Commission. The report shall contain |
9 | | the results of the bidding for each of the feedstock types |
10 | | along with the feedstock procurement administrator's |
11 | | recommendation for the acceptance and rejection of bids based |
12 | | on the price benchmark criteria and other factors observed in |
13 | | the process. The feedstock procurement monitor also shall |
14 | | submit a confidential report to the Commission within 2 |
15 | | business days after opening the sealed bids. The report shall |
16 | | contain the feedstock procurement monitor's assessment of |
17 | | bidder behavior in the process, as well as an assessment of the |
18 | | feedstock procurement administrator's compliance with the |
19 | | feedstock procurement process and rules. The Commission shall |
20 | | review the confidential reports submitted by the feedstock |
21 | | procurement administrator and feedstock procurement monitor |
22 | | and shall accept or reject the recommendations of the feedstock |
23 | | procurement administrator within 2 business days after receipt |
24 | | of the reports. |
25 | | (f) Within 3 business days after the Commission decision |
26 | | approving the results of a feedstock procurement event, the |
|
| | 09700SB1653ham001 | - 113 - | LRB097 05721 ASK 56016 a |
|
|
1 | | initial clean coal facility shall enter into binding |
2 | | contractual arrangements with the winning suppliers using |
3 | | standard form contracts. |
4 | | (g) The names of the successful bidders and the amount of |
5 | | feedstock to be delivered for each contract type and for each |
6 | | contract term shall be made available to the public at the time |
7 | | of Commission approval of a feedstock procurement event. The |
8 | | Commission, the procurement monitor, the feedstock procurement |
9 | | administrator, the Agency, and all participants in the |
10 | | feedstock procurement process shall maintain the |
11 | | confidentiality of all other supplier and bidding information |
12 | | in a manner consistent with all applicable laws, rules, |
13 | | regulations, and tariffs. Confidential information, including |
14 | | the confidential reports submitted by the feedstock |
15 | | procurement administrator and feedstock procurement monitor |
16 | | pursuant to subsection (e) of this Section, shall not be made |
17 | | publicly available and shall not be discoverable by any party |
18 | | in any proceeding, absent a compelling demonstration of need, |
19 | | nor shall those reports be admissible in any proceeding other |
20 | | than one for law enforcement purposes. |
21 | | (h) Within 2 business days after a Commission decision |
22 | | approving the results of a feedstock procurement event or such |
23 | | other date as may be required by the Commission from time to |
24 | | time, the initial clean coal facility shall file for |
25 | | informational purposes with the Commission its actual or |
26 | | estimated feedstock costs reflecting the costs associated with |
|
| | 09700SB1653ham001 | - 114 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the feedstock procurement. |
2 | | (i) The initial clean coal facility shall pay for |
3 | | reasonable costs incurred by the Agency in administering the |
4 | | feedstock procurement events. The Agency shall determine the |
5 | | amount owed for each feedstock procurement event, and the |
6 | | initial clean coal facility shall pay that amount to the Agency |
7 | | within 30 days after being informed by the Agency of the amount |
8 | | owed. Those funds shall be deposited into the Agency Operations |
9 | | Fund, pursuant to Section 1-55 of this Act, to be used to |
10 | | reimburse expenses related to the feedstock procurement. |
11 | | (j) The Commission has the authority to adopt rules to |
12 | | carry out the provisions of this Section. For the public |
13 | | interest, safety, and welfare, the Commission also has the |
14 | | authority to adopt rules to carry out the provisions of this |
15 | | Section on an emergency basis. |
16 | | (k) On or before April 1 of each year, the Commission may, |
17 | | hold an informal hearing for the purpose of receiving comments |
18 | | on the prior year's feedstock procurement process and any |
19 | | recommendations for change. |
20 | | (l) For all purposes of this Section 1-78 and subsection |
21 | | (a-1) of Section 1-75 of this Act, (i) feedstock procurement |
22 | | shall be deemed to include transportation of the feedstock |
23 | | products to the initial clean coal facility (including the |
24 | | acquisition by the initial clean coal facility, as appropriate, |
25 | | of trucks, railcars or other transportation equipment), (ii) |
26 | | feedstock procurement shall not be deemed to include day-to-day |
|
| | 09700SB1653ham001 | - 115 - | LRB097 05721 ASK 56016 a |
|
|
1 | | performance and administration of feedstock procurement and |
2 | | transportation arrangements, including scheduling, weighing, |
3 | | quality determination, acceptance or rejection of shipments, |
4 | | price adjustments, documentation and related activities, all |
5 | | of which shall be performed by the owner of the initial clean |
6 | | coal facility, and (iii) feedstock supplier shall be deemed to |
7 | | include feedstock transporters and providers of feedstock |
8 | | transportation equipment. |
9 | | (20 ILCS 3855/1-79 new) |
10 | | Sec. 1-79. Limited non-impairment. |
11 | | (a) The State of Illinois pledges that the State shall not |
12 | | enact any law or take any action to: |
13 | | (1) break, or repeal the authority for, sourcing |
14 | | agreements in a form approved by the Agency and entered |
15 | | into between electric utilities and the initial clean coal |
16 | | facility pursuant to subsection (d) of Section 1-75 of this |
17 | | Act; |
18 | | (2) break, or repeal the authority for, sourcing |
19 | | agreements in a form approved by the Agency and entered |
20 | | into between alternative retail electric suppliers and the |
21 | | initial clean coal facility; |
22 | | (3) deny public utilities full cost recovery for their |
23 | | costs incurred under those sourcing agreements; |
24 | | (4) deny the initial clean coal facility full cost |
25 | | recovery under those sourcing agreements for costs that are |
|
| | 09700SB1653ham001 | - 116 - | LRB097 05721 ASK 56016 a |
|
|
1 | | recoverable under Section 1-76 of this Act. |
2 | | (5) repeal or remove the requirement that electric |
3 | | utilities shall enter into sourcing agreements with the |
4 | | initial clean coal facility under paragraph (3) of |
5 | | subsection (d) of Section 1-75 of this Act or subsection |
6 | | (c) of Section 16-116 of the Public Utilities Act; or |
7 | | (6) repeal or remove the requirement that alternative |
8 | | retail electric suppliers shall enter into sourcing |
9 | | agreements with the initial clean coal facility under item |
10 | | (iv) of paragraph (5) of subsection (d) of Section 16-115 |
11 | | of the Public Utilities Act. |
12 | | These pledges are for the benefit of the parties to those |
13 | | sourcing agreements and the issuers and holders of bonds or |
14 | | other obligations issued or incurred to finance or refinance |
15 | | the initial clean coal facility. The initial clean coal |
16 | | facility is authorized to include and refer to these pledges in |
17 | | any financing agreement into which it may enter in regard to |
18 | | those sourcing agreements. |
19 | | (b) The State of Illinois retains and reserves all other |
20 | | rights to enact new or amendatory legislation or take any other |
21 | | action, without impairment of the right of the initial clean |
22 | | coal facility to recover prudently incurred costs resulting |
23 | | from the new or amendatory legislation or other action as |
24 | | approved by the Commission, including, but not limited to, |
25 | | legislation or other action that would:
(1) directly or |
26 | | indirectly raise the costs that clean coal facilities must |
|
| | 09700SB1653ham001 | - 117 - | LRB097 05721 ASK 56016 a |
|
|
1 | | incur;
(2) directly or indirectly place additional |
2 | | restrictions, regulations, or requirements on the initial |
3 | | clean coal facility;
(3) prohibit sequestration in general or |
4 | | prohibit a specific sequestration method or project; or
(4) |
5 | | increase minimum sequestration requirements for the initial |
6 | | clean coal facility to a technically feasible extent. |
7 | | Section 10. The Illinois Procurement Code is amended by |
8 | | changing Sections 1-10 and 20-10 as follows:
|
9 | | (30 ILCS 500/1-10)
|
10 | | Sec. 1-10. Application.
|
11 | | (a) This Code applies only to procurements for which |
12 | | contractors were first
solicited on or after July 1, 1998. This |
13 | | Code shall not be construed to affect
or impair any contract, |
14 | | or any provision of a contract, entered into based on a
|
15 | | solicitation prior to the implementation date of this Code as |
16 | | described in
Article 99, including but not limited to any |
17 | | covenant entered into with respect
to any revenue bonds or |
18 | | similar instruments.
All procurements for which contracts are |
19 | | solicited between the effective date
of Articles 50 and 99 and |
20 | | July 1, 1998 shall be substantially in accordance
with this |
21 | | Code and its intent.
|
22 | | (b) This Code shall apply regardless of the source of the |
23 | | funds with which
the contracts are paid, including federal |
24 | | assistance moneys.
This Code shall
not apply to:
|
|
| | 09700SB1653ham001 | - 118 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (1) Contracts between the State and its political |
2 | | subdivisions or other
governments, or between State |
3 | | governmental bodies except as specifically
provided in |
4 | | this Code.
|
5 | | (2) Grants, except for the filing requirements of |
6 | | Section 20-80.
|
7 | | (3) Purchase of care.
|
8 | | (4) Hiring of an individual as employee and not as an |
9 | | independent
contractor, whether pursuant to an employment |
10 | | code or policy or by contract
directly with that |
11 | | individual.
|
12 | | (5) Collective bargaining contracts.
|
13 | | (6) Purchase of real estate, except that notice of this |
14 | | type of contract with a value of more than $25,000 must be |
15 | | published in the Procurement Bulletin within 7 days after |
16 | | the deed is recorded in the county of jurisdiction. The |
17 | | notice shall identify the real estate purchased, the names |
18 | | of all parties to the contract, the value of the contract, |
19 | | and the effective date of the contract.
|
20 | | (7) Contracts necessary to prepare for anticipated |
21 | | litigation, enforcement
actions, or investigations, |
22 | | provided
that the chief legal counsel to the Governor shall |
23 | | give his or her prior
approval when the procuring agency is |
24 | | one subject to the jurisdiction of the
Governor, and |
25 | | provided that the chief legal counsel of any other |
26 | | procuring
entity
subject to this Code shall give his or her |
|
| | 09700SB1653ham001 | - 119 - | LRB097 05721 ASK 56016 a |
|
|
1 | | prior approval when the procuring
entity is not one subject |
2 | | to the jurisdiction of the Governor.
|
3 | | (8) Contracts for
services to Northern Illinois |
4 | | University by a person, acting as
an independent |
5 | | contractor, who is qualified by education, experience, and
|
6 | | technical ability and is selected by negotiation for the |
7 | | purpose of providing
non-credit educational service |
8 | | activities or products by means of specialized
programs |
9 | | offered by the university.
|
10 | | (9) Procurement expenditures by the Illinois |
11 | | Conservation Foundation
when only private funds are used.
|
12 | | (10) Procurement expenditures by the Illinois Health |
13 | | Information Exchange Authority involving private funds |
14 | | from the Health Information Exchange Fund. "Private funds" |
15 | | means gifts, donations, and private grants. |
16 | | (c) This Code does not apply to the electric power |
17 | | procurement process provided for under Section 1-75 of the |
18 | | Illinois Power Agency Act and Section 16-111.5 of the Public |
19 | | Utilities Act. |
20 | | (d) Except for Section 20-160 and Article 50 of this Code, |
21 | | and as expressly required by Section 9.1 of the Illinois |
22 | | Lottery Law, the provisions of this Code do not apply to the |
23 | | procurement process provided for under Section 9.1 of the |
24 | | Illinois Lottery Law. |
25 | | (e) This Code does not apply to the process used by the |
26 | | Capital Development Board to retain a person or entity to |
|
| | 09700SB1653ham001 | - 120 - | LRB097 05721 ASK 56016 a |
|
|
1 | | assist the Capital Development Board with its duties related to |
2 | | the determination of costs of an initial clean coal facility, |
3 | | as defined under Section 1-10 of the Illinois Power Agency Act, |
4 | | as required under Section 1-76 of the Illinois Power Agency |
5 | | Act, including calculating the range of capital costs or the |
6 | | sequestration costs or monitoring the construction of initial |
7 | | clean coal facility for the full duration of construction. |
8 | | (f) This Code does not apply to the process used by the |
9 | | Illinois Power Agency to retain a mediator to mediate sourcing |
10 | | agreement disputes between electric utilities or alternative |
11 | | retail electric suppliers and the initial clean coal facility, |
12 | | as defined under Section 1-10 of the Illinois Power Agency Act, |
13 | | as required under paragraph (4) of subsection (d) of Section |
14 | | 1-75 of the Illinois Power Agency Act. This Code does not apply |
15 | | to the process used by the Illinois Commerce Commission to |
16 | | retain an expert to assist the Commission with its duties |
17 | | related to the determination of the costs of an initial clean |
18 | | coal facility, as defined under Section 1-10 of the Illinois |
19 | | Power Agency Act, as required under Section 1-76 of the |
20 | | Illinois Power Agency Act, including determining the initial |
21 | | clean coal facility's operations and maintenance costs, or |
22 | | compliance with capture and sequestration requirements. |
23 | | (Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07; |
24 | | 95-876, eff. 8-21-08; 96-840, eff. 12-23-09; 96-1331, eff. |
25 | | 7-27-10.)
|
|
| | 09700SB1653ham001 | - 121 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (30 ILCS 500/20-10)
|
2 | | (Text of Section from P.A. 96-159 and 96-588) |
3 | | Sec. 20-10. Competitive sealed bidding; reverse auction.
|
4 | | (a) Conditions for use. All contracts shall be awarded by
|
5 | | competitive sealed bidding
except as otherwise provided in |
6 | | Section 20-5.
|
7 | | (b) Invitation for bids. An invitation for bids shall be
|
8 | | issued and shall include a
purchase description and the |
9 | | material contractual terms and
conditions applicable to the
|
10 | | procurement.
|
11 | | (c) Public notice. Public notice of the invitation for bids |
12 | | shall be
published in the Illinois Procurement Bulletin at |
13 | | least 14 days before the date
set in the invitation for the |
14 | | opening of bids.
|
15 | | (d) Bid opening. Bids shall be opened publicly in the
|
16 | | presence of one or more witnesses
at the time and place |
17 | | designated in the invitation for bids. The
name of each bidder, |
18 | | the amount
of each bid, and other relevant information as may |
19 | | be specified by
rule shall be
recorded. After the award of the |
20 | | contract, the winning bid and the
record of each unsuccessful |
21 | | bid shall be open to
public inspection.
|
22 | | (e) Bid acceptance and bid evaluation. Bids shall be
|
23 | | unconditionally accepted without
alteration or correction, |
24 | | except as authorized in this Code. Bids
shall be evaluated |
25 | | based on the
requirements set forth in the invitation for bids, |
26 | | which may
include criteria to determine
acceptability such as |
|
| | 09700SB1653ham001 | - 122 - | LRB097 05721 ASK 56016 a |
|
|
1 | | inspection, testing, quality, workmanship,
delivery, and |
2 | | suitability for a
particular purpose. Those criteria that will |
3 | | affect the bid price
and be considered in evaluation
for award, |
4 | | such as discounts, transportation costs, and total or
life |
5 | | cycle costs, shall be
objectively measurable. The invitation |
6 | | for bids shall set forth
the evaluation criteria to be used.
|
7 | | (f) Correction or withdrawal of bids. Correction or
|
8 | | withdrawal of inadvertently
erroneous bids before or after |
9 | | award, or cancellation of awards of
contracts based on bid
|
10 | | mistakes, shall be permitted in accordance with rules.
After |
11 | | bid opening, no
changes in bid prices or other provisions of |
12 | | bids prejudicial to
the interest of the State or fair
|
13 | | competition shall be permitted. All decisions to permit the
|
14 | | correction or withdrawal of bids
based on bid mistakes shall be |
15 | | supported by written determination
made by a State purchasing |
16 | | officer.
|
17 | | (g) Award. The contract shall be awarded with reasonable
|
18 | | promptness by written notice
to the lowest responsible and |
19 | | responsive bidder whose bid meets
the requirements and criteria
|
20 | | set forth in the invitation for bids, except when a State |
21 | | purchasing officer
determines it is not in the best interest of |
22 | | the State and by written
explanation determines another bidder |
23 | | shall receive the award. The explanation
shall appear in the |
24 | | appropriate volume of the Illinois Procurement Bulletin.
|
25 | | (h) Multi-step sealed bidding. When it is considered
|
26 | | impracticable to initially prepare
a purchase description to |
|
| | 09700SB1653ham001 | - 123 - | LRB097 05721 ASK 56016 a |
|
|
1 | | support an award based on price, an
invitation for bids may be |
2 | | issued
requesting the submission of unpriced offers to be |
3 | | followed by an
invitation for bids limited to
those bidders |
4 | | whose offers have been qualified under the criteria
set forth |
5 | | in the first solicitation.
|
6 | | (i) Alternative procedures. Notwithstanding any other |
7 | | provision of this Act to the contrary, the Director of the |
8 | | Illinois Power Agency may create alternative bidding |
9 | | procedures to be used in procuring professional services under |
10 | | subsection (a) of Section 1-75 and subsection (d) of Section |
11 | | 1-78 1-75(a) of the Illinois Power Agency Act and Section |
12 | | 16-111.5(c) of the Public Utilities Act and to procure |
13 | | renewable energy resources under Section 1-56 of the Illinois |
14 | | Power Agency Act. These alternative procedures shall be set |
15 | | forth together with the other criteria contained in the |
16 | | invitation for bids, and shall appear in the appropriate volume |
17 | | of the Illinois Procurement Bulletin.
|
18 | | (j) Reverse auction. Notwithstanding any other provision |
19 | | of this Section and in accordance with rules adopted by the |
20 | | Director of Central Management Services as chief procurement |
21 | | officer, a State purchasing officer under that chief |
22 | | procurement officer's jurisdiction may procure supplies or |
23 | | services through a competitive electronic auction bidding |
24 | | process after the purchasing officer explains in writing to the |
25 | | chief procurement officer his or her determination that the use |
26 | | of such a process will be in the best interest of the State. |
|
| | 09700SB1653ham001 | - 124 - | LRB097 05721 ASK 56016 a |
|
|
1 | | The chief procurement officer shall publish that determination |
2 | | in his or her next volume of the Illinois Procurement Bulletin. |
3 | | An invitation for bids shall be issued and shall include |
4 | | (i) a procurement description, (ii) all contractual terms, |
5 | | whenever practical, and (iii) conditions applicable to the |
6 | | procurement, including a notice that bids will be received in |
7 | | an electronic auction manner. |
8 | | Public notice of the invitation for bids shall be given in |
9 | | the same manner as provided in subsection (c). |
10 | | Bids shall be accepted electronically at the time and in |
11 | | the manner designated in the invitation for bids. During the |
12 | | auction, a bidder's price shall be disclosed to other bidders. |
13 | | Bidders shall have the opportunity to reduce their bid prices |
14 | | during the auction. At the conclusion of the auction, the |
15 | | record of the bid prices received and the name of each bidder |
16 | | shall be open to public inspection. |
17 | | After the auction period has terminated, withdrawal of bids |
18 | | shall be permitted as provided in subsection (f). |
19 | | The contract shall be awarded within 60 days after the |
20 | | auction by written notice to the lowest responsible bidder, or |
21 | | all bids shall be rejected except as otherwise provided in this |
22 | | Code. Extensions of the date for the award may be made by |
23 | | mutual written consent of the State purchasing officer and the |
24 | | lowest responsible bidder. |
25 | | This subsection does not apply to (i) procurements of |
26 | | professional and artistic services, including but not limited |
|
| | 09700SB1653ham001 | - 125 - | LRB097 05721 ASK 56016 a |
|
|
1 | | to telecommunications services, communications services, |
2 | | Internet services, and information services, and (ii) |
3 | | contracts for construction projects. |
4 | | (Source: P.A. 95-481, eff. 8-28-07; 96-159, eff. 8-10-09; |
5 | | 96-588, eff. 8-18-09; revised 10-5-10 .)
|
6 | | (Text of Section from P.A. 96-159 and 96-795)
|
7 | | Sec. 20-10. Competitive sealed bidding; reverse auction.
|
8 | | (a) Conditions for use. All contracts shall be awarded by
|
9 | | competitive sealed bidding
except as otherwise provided in |
10 | | Section 20-5.
|
11 | | (b) Invitation for bids. An invitation for bids shall be
|
12 | | issued and shall include a
purchase description and the |
13 | | material contractual terms and
conditions applicable to the
|
14 | | procurement.
|
15 | | (c) Public notice. Public notice of the invitation for bids |
16 | | shall be
published in the Illinois Procurement Bulletin at |
17 | | least 14 days before the date
set in the invitation for the |
18 | | opening of bids.
|
19 | | (d) Bid opening. Bids shall be opened publicly in the
|
20 | | presence of one or more witnesses
at the time and place |
21 | | designated in the invitation for bids. The
name of each bidder, |
22 | | the amount
of each bid, and other relevant information as may |
23 | | be specified by
rule shall be
recorded. After the award of the |
24 | | contract, the winning bid and the
record of each unsuccessful |
25 | | bid shall be open to
public inspection.
|
|
| | 09700SB1653ham001 | - 126 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (e) Bid acceptance and bid evaluation. Bids shall be
|
2 | | unconditionally accepted without
alteration or correction, |
3 | | except as authorized in this Code. Bids
shall be evaluated |
4 | | based on the
requirements set forth in the invitation for bids, |
5 | | which may
include criteria to determine
acceptability such as |
6 | | inspection, testing, quality, workmanship,
delivery, and |
7 | | suitability for a
particular purpose. Those criteria that will |
8 | | affect the bid price
and be considered in evaluation
for award, |
9 | | such as discounts, transportation costs, and total or
life |
10 | | cycle costs, shall be
objectively measurable. The invitation |
11 | | for bids shall set forth
the evaluation criteria to be used.
|
12 | | (f) Correction or withdrawal of bids. Correction or
|
13 | | withdrawal of inadvertently
erroneous bids before or after |
14 | | award, or cancellation of awards of
contracts based on bid
|
15 | | mistakes, shall be permitted in accordance with rules.
After |
16 | | bid opening, no
changes in bid prices or other provisions of |
17 | | bids prejudicial to
the interest of the State or fair
|
18 | | competition shall be permitted. All decisions to permit the
|
19 | | correction or withdrawal of bids
based on bid mistakes shall be |
20 | | supported by written determination
made by a State purchasing |
21 | | officer.
|
22 | | (g) Award. The contract shall be awarded with reasonable
|
23 | | promptness by written notice
to the lowest responsible and |
24 | | responsive bidder whose bid meets
the requirements and criteria
|
25 | | set forth in the invitation for bids, except when a State |
26 | | purchasing officer
determines it is not in the best interest of |
|
| | 09700SB1653ham001 | - 127 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the State and by written
explanation determines another bidder |
2 | | shall receive the award. The explanation
shall appear in the |
3 | | appropriate volume of the Illinois Procurement Bulletin. The |
4 | | written explanation must include:
|
5 | | (1) a description of the agency's needs; |
6 | | (2) a determination that the anticipated cost will be |
7 | | fair and reasonable; |
8 | | (3) a listing of all responsible and responsive |
9 | | bidders; and |
10 | | (4) the name of the bidder selected, pricing, and the |
11 | | reasons for selecting that bidder. |
12 | | Each chief procurement officer may adopt guidelines to |
13 | | implement the requirements of this subsection (g). |
14 | | The written explanation shall be filed with the Legislative |
15 | | Audit Commission and the Procurement Policy Board and be made |
16 | | available for inspection by the public within 30 days after the |
17 | | agency's decision to award the contract. |
18 | | (h) Multi-step sealed bidding. When it is considered
|
19 | | impracticable to initially prepare
a purchase description to |
20 | | support an award based on price, an
invitation for bids may be |
21 | | issued
requesting the submission of unpriced offers to be |
22 | | followed by an
invitation for bids limited to
those bidders |
23 | | whose offers have been qualified under the criteria
set forth |
24 | | in the first solicitation.
|
25 | | (i) Alternative procedures. Notwithstanding any other |
26 | | provision of this Act to the contrary, the Director of the |
|
| | 09700SB1653ham001 | - 128 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Illinois Power Agency may create alternative bidding |
2 | | procedures to be used in procuring professional services under |
3 | | subsection (a) of Section 1-75 and subsection (d) of Section |
4 | | 1-78 1-75(a) of the Illinois Power Agency Act and Section |
5 | | 16-111.5(c) of the Public Utilities Act and to procure |
6 | | renewable energy resources under Section 1-56 of the Illinois |
7 | | Power Agency Act. These alternative procedures shall be set |
8 | | forth together with the other criteria contained in the |
9 | | invitation for bids, and shall appear in the appropriate volume |
10 | | of the Illinois Procurement Bulletin.
|
11 | | (j) Reverse auction. Notwithstanding any other provision |
12 | | of this Section and in accordance with rules adopted by the |
13 | | chief procurement officer, that chief procurement officer may |
14 | | procure supplies or services through a competitive electronic |
15 | | auction bidding process after the chief procurement officer |
16 | | determines that the use of such a process will be in the best |
17 | | interest of the State. The chief procurement officer shall |
18 | | publish that determination in his or her next volume of the |
19 | | Illinois Procurement Bulletin. |
20 | | An invitation for bids shall be issued and shall include |
21 | | (i) a procurement description, (ii) all contractual terms, |
22 | | whenever practical, and (iii) conditions applicable to the |
23 | | procurement, including a notice that bids will be received in |
24 | | an electronic auction manner. |
25 | | Public notice of the invitation for bids shall be given in |
26 | | the same manner as provided in subsection (c). |
|
| | 09700SB1653ham001 | - 129 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Bids shall be accepted electronically at the time and in |
2 | | the manner designated in the invitation for bids. During the |
3 | | auction, a bidder's price shall be disclosed to other bidders. |
4 | | Bidders shall have the opportunity to reduce their bid prices |
5 | | during the auction. At the conclusion of the auction, the |
6 | | record of the bid prices received and the name of each bidder |
7 | | shall be open to public inspection. |
8 | | After the auction period has terminated, withdrawal of bids |
9 | | shall be permitted as provided in subsection (f). |
10 | | The contract shall be awarded within 60 days after the |
11 | | auction by written notice to the lowest responsible bidder, or |
12 | | all bids shall be rejected except as otherwise provided in this |
13 | | Code. Extensions of the date for the award may be made by |
14 | | mutual written consent of the State purchasing officer and the |
15 | | lowest responsible bidder. |
16 | | This subsection does not apply to (i) procurements of |
17 | | professional and artistic services, (ii) telecommunications |
18 | | services, communication services, and information services,
|
19 | | and (iii) contracts for construction projects. |
20 | | (Source: P.A. 95-481, eff. 8-28-07; 96-159, eff. 8-10-09; |
21 | | 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the |
22 | | effective date of changes made by P.A. 96-795); revised |
23 | | 10-5-10 .) |
24 | | Section 15. The Public Utilities Act is amended by changing |
25 | | Sections 16-107.5, 16-108, 16-111.5, 16-115, 16-115D, and |
|
| | 09700SB1653ham001 | - 130 - | LRB097 05721 ASK 56016 a |
|
|
1 | | 16-116 as follows: |
2 | | (220 ILCS 5/16-107.5)
|
3 | | Sec. 16-107.5. Net electricity metering. |
4 | | (a) The Legislature finds and declares that a program to |
5 | | provide net electricity
metering, as defined in this Section,
|
6 | | for eligible customers can encourage private investment in |
7 | | renewable energy
resources, stimulate
economic growth, enhance |
8 | | the continued diversification of Illinois' energy
resource |
9 | | mix, and protect
the Illinois environment.
|
10 | | (b) As used in this Section, (i) "eligible customer" means |
11 | | a retail
customer that owns or operates a
solar, wind, or other |
12 | | eligible renewable electrical generating facility with a rated |
13 | | capacity of not more than
2,000 kilowatts that is
located on |
14 | | the customer's premises or is interconnected to the |
15 | | distribution grid of the customer's electricity provider or |
16 | | alternative retail electric supplier and is intended primarily |
17 | | to offset the customer's
own electrical requirements; (ii) |
18 | | "electricity provider" means an electric utility or |
19 | | alternative retail electric supplier; (iii) "eligible |
20 | | renewable electrical generating facility" means a generator |
21 | | powered by solar electric energy, wind, dedicated crops grown |
22 | | for electricity generation, agricultural residues, untreated |
23 | | and unadulterated wood waste, landscape trimmings, livestock |
24 | | manure, anaerobic digestion of livestock or food processing |
25 | | waste, fuel cells or microturbines powered by renewable fuels, |
|
| | 09700SB1653ham001 | - 131 - | LRB097 05721 ASK 56016 a |
|
|
1 | | or hydroelectric energy; and (iv) "net electricity metering" |
2 | | (or "net metering") means the
measurement, during the
billing |
3 | | period applicable to an eligible customer, of the net amount of
|
4 | | electricity supplied by an
electricity provider to the |
5 | | customer's premises or provided to the electricity provider by |
6 | | the customer.
|
7 | | (c) A net metering facility shall be equipped with metering |
8 | | equipment that can measure the flow of electricity in both |
9 | | directions at the same rate. For eligible residential |
10 | | customers, this shall typically be accomplished through use of |
11 | | a single, bi-directional meter. If the eligible customer's |
12 | | existing electric revenue meter does not meet this requirement, |
13 | | the electricity provider shall arrange for the local electric |
14 | | utility or a meter service provider to install and maintain a |
15 | | new revenue meter at the electricity provider's expense. For |
16 | | non-residential customers, the electricity provider may |
17 | | arrange for the local electric utility or a meter service |
18 | | provider to install and maintain metering equipment capable of |
19 | | measuring the flow of electricity both into and out of the |
20 | | customer's facility at the same rate and ratio, typically |
21 | | through the use of a dual channel meter. For generators with a |
22 | | nameplate rating of 40 kilowatts and below, the costs of |
23 | | installing such equipment shall be paid for by the electricity |
24 | | provider. For generators with a nameplate rating over 40 |
25 | | kilowatts and up to 2,000 kilowatts capacity, the costs of |
26 | | installing such equipment shall be paid for by the customer. |
|
| | 09700SB1653ham001 | - 132 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Any subsequent revenue meter change necessitated by any |
2 | | eligible customer shall be paid for by the customer.
|
3 | | (d) An electricity provider shall
measure and charge or |
4 | | credit for the net
electricity supplied to eligible customers |
5 | | or provided by eligible customers in
the following manner:
|
6 | | (1) If the amount of electricity used by the customer |
7 | | during the billing
period exceeds the
amount of electricity |
8 | | produced by the customer, the electricity provider shall |
9 | | charge the customer for the net electricity supplied to and |
10 | | used
by the customer as provided in subsection (e) of this |
11 | | Section.
|
12 | | (2) If the amount of electricity produced by a customer |
13 | | during the billing period exceeds the amount of electricity |
14 | | used by the customer during that billing period, the |
15 | | electricity provider supplying that customer shall apply a |
16 | | 1:1 kilowatt-hour credit to a subsequent bill for service |
17 | | to the customer for the net electricity supplied to the |
18 | | electricity provider. The electricity provider shall |
19 | | continue to carry over any excess kilowatt-hour credits |
20 | | earned and apply those credits to subsequent billing |
21 | | periods to offset any customer-generator consumption in |
22 | | those billing periods until all credits are used or until |
23 | | service is terminated or until the end of the annualized |
24 | | period .
|
25 | | (3) In At the end of the year or annualized over the |
26 | | period that service is supplied by means of net metering, |
|
| | 09700SB1653ham001 | - 133 - | LRB097 05721 ASK 56016 a |
|
|
1 | | or in the event that the retail customer terminates service |
2 | | with the electricity provider prior to the end of the year |
3 | | or the annualized period , any remaining credits in the |
4 | | customer's account shall expire.
|
5 | | (e) An electricity provider shall provide to net metering |
6 | | customers electric service at non-discriminatory rates that |
7 | | are identical, with respect to rate structure, retail rate |
8 | | components, and any monthly charges, to the rates that the |
9 | | customer would be charged if not a net metering customer. An |
10 | | electricity provider shall not charge net metering customers |
11 | | any fee or charge or require additional equipment, insurance, |
12 | | or any other requirements not specifically authorized by |
13 | | interconnection standards authorized by the Commission, unless |
14 | | the fee, charge, or other requirement would apply to other |
15 | | similarly situated customers who are not net metering |
16 | | customers. The customer will remain responsible for all taxes, |
17 | | fees, and utility delivery charges that would otherwise be |
18 | | applicable to the net amount of electricity used by the |
19 | | customer. Subsections (c) through (e) of this Section shall not |
20 | | be construed to prevent an arms-length agreement between an |
21 | | electricity provider and an eligible customer that sets forth |
22 | | different prices, terms, and conditions for the provision of |
23 | | net metering service, including, but not limited to, the |
24 | | provision of the appropriate metering equipment for |
25 | | non-residential customers.
|
26 | | (f) Notwithstanding the requirements of subsections (c) |
|
| | 09700SB1653ham001 | - 134 - | LRB097 05721 ASK 56016 a |
|
|
1 | | through (e) of this Section, an electricity provider must |
2 | | require dual-channel metering for non-residential customers |
3 | | operating eligible renewable electrical generating facilities |
4 | | with a nameplate rating over 40 kilowatts and up to 2,000 |
5 | | kilowatts. In such cases, electricity charges and credits shall |
6 | | be determined as follows:
|
7 | | (1) The electricity provider shall assess and the |
8 | | customer remains responsible for all taxes, fees, and |
9 | | utility delivery charges that would otherwise be |
10 | | applicable to the gross amount of kilowatt-hours supplied |
11 | | to the eligible customer by the electricity provider. |
12 | | (2) Each month that service is supplied by means of |
13 | | dual-channel metering, the electricity provider shall |
14 | | compensate the eligible customer for any excess |
15 | | kilowatt-hour credits at the electricity provider's |
16 | | avoided cost of electricity supply over the monthly period |
17 | | or as otherwise specified by the terms of a power-purchase |
18 | | agreement negotiated between the customer and electricity |
19 | | provider. |
20 | | (3) For all eligible net metering customers taking |
21 | | service from an electricity provider under contracts or |
22 | | tariffs employing time of use rates, any monthly |
23 | | consumption of electricity shall be calculated according |
24 | | to the terms of the contract or tariff to which the same |
25 | | customer would be assigned to or be eligible for if the |
26 | | customer was not a net metering customer. When those same |
|
| | 09700SB1653ham001 | - 135 - | LRB097 05721 ASK 56016 a |
|
|
1 | | customer-generators are net generators during any discrete |
2 | | time of use period, the net kilowatt-hours produced shall |
3 | | be valued at the same price per kilowatt-hour as the |
4 | | electric service provider would charge for retail |
5 | | kilowatt-hour sales during that same time of use period.
|
6 | | (g) For purposes of federal and State laws providing |
7 | | renewable energy credits or greenhouse gas credits, the |
8 | | eligible customer shall be treated as owning and having title |
9 | | to the renewable energy attributes, renewable energy credits, |
10 | | and greenhouse gas emission credits related to any electricity |
11 | | produced by the qualified generating unit. The electricity |
12 | | provider may not condition participation in a net metering |
13 | | program on the signing over of a customer's renewable energy |
14 | | credits; provided, however, this subsection (g) shall not be |
15 | | construed to prevent an arms-length agreement between an |
16 | | electricity provider and an eligible customer that sets forth |
17 | | the ownership or title of the credits.
|
18 | | (h) Within 120 days after the effective date of this
|
19 | | amendatory Act of the 95th General Assembly, the Commission |
20 | | shall establish standards for net metering and, if the |
21 | | Commission has not already acted on its own initiative, |
22 | | standards for the interconnection of eligible renewable |
23 | | generating equipment to the utility system. The |
24 | | interconnection standards shall address any procedural |
25 | | barriers, delays, and administrative costs associated with the |
26 | | interconnection of customer-generation while ensuring the |
|
| | 09700SB1653ham001 | - 136 - | LRB097 05721 ASK 56016 a |
|
|
1 | | safety and reliability of the units and the electric utility |
2 | | system. The Commission shall consider the Institute of |
3 | | Electrical and Electronics Engineers (IEEE) Standard 1547 and |
4 | | the issues of (i) reasonable and fair fees and costs, (ii) |
5 | | clear timelines for major milestones in the interconnection |
6 | | process, (iii) nondiscriminatory terms of agreement, and (iv) |
7 | | any best practices for interconnection of distributed |
8 | | generation.
|
9 | | (i) All electricity providers shall begin to offer net |
10 | | metering
no later than April 1,
2008.
|
11 | | (j) An electricity provider shall provide net metering to |
12 | | eligible
customers until the load of its net metering customers |
13 | | equals 5% 1% of
the total peak demand supplied by
that |
14 | | electricity provider during the
previous year. Electricity |
15 | | providers are authorized to offer net metering beyond
the 5% 1% |
16 | | level if they so choose. The number of new eligible customers |
17 | | with generators that have a nameplate rating of 40 kilowatts |
18 | | and below will be limited to 200 total new billing accounts for |
19 | | the utilities (Ameren Companies, ComEd, and MidAmerican) for |
20 | | the period of April 1, 2008 through March 31, 2009.
|
21 | | (k) Each electricity provider shall maintain records and |
22 | | report annually to the Commission the total number of net |
23 | | metering customers served by the provider, as well as the type, |
24 | | capacity, and energy sources of the generating systems used by |
25 | | the net metering customers. Nothing in this Section shall limit |
26 | | the ability of an electricity provider to request the redaction |
|
| | 09700SB1653ham001 | - 137 - | LRB097 05721 ASK 56016 a |
|
|
1 | | of information deemed by the Commission to be confidential |
2 | | business information. Each electricity provider shall notify |
3 | | the Commission when the total generating capacity of its net |
4 | | metering customers is equal to or in excess of the 1% cap |
5 | | specified in subsection (j) of this Section. |
6 | | (l) Notwithstanding the definition of "eligible customer" |
7 | | in item (i) of subsection (b) of this Section, each electricity |
8 | | provider shall consider whether to allow meter aggregation for |
9 | | the purposes of net metering on:
|
10 | | (1) properties owned or leased by multiple customers |
11 | | that contribute to the operation of an eligible renewable |
12 | | electrical generating facility, such as a community-owned |
13 | | wind project , a community-owned biomass project, a |
14 | | community-owned solar project, or a community methane |
15 | | digester processing livestock waste from multiple sources; |
16 | | and
|
17 | | (2) individual units, apartments, or properties owned |
18 | | or leased by multiple customers and collectively served by |
19 | | a common eligible renewable electrical generating |
20 | | facility, such as an apartment building served by |
21 | | photovoltaic panels on the roof ; and .
|
22 | | (3) multiple meters that are located on an eligible |
23 | | customer's contiguous property and are used to measure only |
24 | | electricity used for the eligible customer's requirements. |
25 | | For the purposes of this subsection (l), "meter |
26 | | aggregation" means the combination of reading and billing on a |
|
| | 09700SB1653ham001 | - 138 - | LRB097 05721 ASK 56016 a |
|
|
1 | | pro rata basis for the types of eligible customers described in |
2 | | this Section such as to allocate benefits of participation onto |
3 | | the customers' monthly electric bills. Meter aggregation shall |
4 | | be allowed whether the eligible renewable energy generating |
5 | | device is located on the premises of the eligible customer or |
6 | | is interconnected to the distribution grid of the eligible |
7 | | customer's electricity provider or alternative retail electric |
8 | | supplier. Such meter aggregation shall be subject to the terms |
9 | | and conditions approved by the Commission in a proceeding |
10 | | establishing the rules applicable to meter aggregation under |
11 | | this subsection (l), which shall commence no less than 180 days |
12 | | after the effective date of this amendatory Act of the 97th |
13 | | General Assembly and be completed within 365 days after the |
14 | | effective date of this amendatory Act of the 97th General |
15 | | Assembly .
|
16 | | (m) Nothing in this Section shall affect the right of an |
17 | | electricity provider to continue to provide, or the right of a |
18 | | retail customer to continue to receive service pursuant to a |
19 | | contract for electric service between the electricity provider |
20 | | and the retail customer in accordance with the prices, terms, |
21 | | and conditions provided for in that contract. Either the |
22 | | electricity provider or the customer may require compliance |
23 | | with the prices, terms, and conditions of the contract.
|
24 | | (Source: P.A. 95-420, eff. 8-24-07.)
|
25 | | (220 ILCS 5/16-108)
|
|
| | 09700SB1653ham001 | - 139 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Sec. 16-108.
Recovery of costs associated with the
|
2 | | provision of delivery services.
|
3 | | (a) An electric utility shall file a delivery services
|
4 | | tariff with the Commission at least 210 days prior to the date
|
5 | | that it is required to begin offering such services pursuant
to |
6 | | this Act. An electric utility shall provide the components
of |
7 | | delivery services that are subject to the jurisdiction of
the |
8 | | Federal Energy Regulatory Commission at the same prices,
terms |
9 | | and conditions set forth in its applicable tariff as
approved |
10 | | or allowed into effect by that Commission. The
Commission shall |
11 | | otherwise have the authority pursuant to Article IX to review,
|
12 | | approve, and modify the prices, terms and conditions of those
|
13 | | components of delivery services not subject to the
jurisdiction |
14 | | of the Federal Energy Regulatory Commission,
including the |
15 | | authority to determine the extent to which such
delivery |
16 | | services should be offered on an unbundled basis. In making any |
17 | | such
determination the Commission shall consider, at a minimum, |
18 | | the effect of
additional unbundling on (i) the objective of |
19 | | just and reasonable rates, (ii)
electric utility employees, and |
20 | | (iii) the development of competitive markets
for electric |
21 | | energy services in Illinois.
|
22 | | (b) The Commission shall enter an order approving, or
|
23 | | approving as modified, the delivery services tariff no later
|
24 | | than 30 days prior to the date on which the electric utility
|
25 | | must commence offering such services. The Commission may
|
26 | | subsequently modify such tariff pursuant to this Act.
|
|
| | 09700SB1653ham001 | - 140 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (c) The electric utility's
tariffs shall define the classes |
2 | | of its customers for purposes
of delivery services charges. |
3 | | Delivery services shall be priced and made
available to all |
4 | | retail customers electing delivery services in each such class
|
5 | | on a nondiscriminatory basis regardless of whether the retail |
6 | | customer chooses
the electric utility, an affiliate of the |
7 | | electric utility, or another entity
as its supplier of electric |
8 | | power and energy. Charges for delivery services
shall be cost |
9 | | based,
and shall allow the electric utility to recover the |
10 | | costs of
providing delivery services through its charges to its
|
11 | | delivery service customers that use the facilities and
services |
12 | | associated with such costs.
Such costs shall include the
costs |
13 | | of owning, operating and maintaining transmission and
|
14 | | distribution facilities. The Commission shall also be
|
15 | | authorized to consider whether, and if so to what extent, the
|
16 | | following costs are appropriately included in the electric
|
17 | | utility's delivery services rates: (i) the costs of that
|
18 | | portion of generation facilities used for the production and
|
19 | | absorption of reactive power in order that retail customers
|
20 | | located in the electric utility's service area can receive
|
21 | | electric power and energy from suppliers other than the
|
22 | | electric utility, and (ii) the costs associated with the use
|
23 | | and redispatch of generation facilities to mitigate
|
24 | | constraints on the transmission or distribution system in
order |
25 | | that retail customers located in the electric utility's
service |
26 | | area can receive electric power and energy from
suppliers other |
|
| | 09700SB1653ham001 | - 141 - | LRB097 05721 ASK 56016 a |
|
|
1 | | than the electric utility. Nothing in this
subsection shall be |
2 | | construed as directing the Commission to
allocate any of the |
3 | | costs described in (i) or (ii) that are
found to be |
4 | | appropriately included in the electric utility's
delivery |
5 | | services rates to any particular customer group or
geographic |
6 | | area in setting delivery services rates.
|
7 | | (d) The Commission shall establish charges, terms and
|
8 | | conditions for delivery services that are just and reasonable
|
9 | | and shall take into account customer impacts when establishing
|
10 | | such charges. In establishing charges, terms and conditions
for |
11 | | delivery services, the Commission shall take into account
|
12 | | voltage level differences. A retail customer shall have the
|
13 | | option to request to purchase electric service at any delivery
|
14 | | service voltage reasonably and technically feasible from the
|
15 | | electric facilities serving that customer's premises provided
|
16 | | that there are no significant adverse impacts upon system
|
17 | | reliability or system efficiency. A retail customer shall
also |
18 | | have the option to request to purchase electric service
at any |
19 | | point of delivery that is reasonably and technically
feasible |
20 | | provided that there are no significant adverse
impacts on |
21 | | system reliability or efficiency. Such requests
shall not be |
22 | | unreasonably denied.
|
23 | | (e) Electric utilities shall recover the costs of
|
24 | | installing, operating or maintaining facilities for the
|
25 | | particular benefit of one or more delivery services customers,
|
26 | | including without limitation any costs incurred in complying
|
|
| | 09700SB1653ham001 | - 142 - | LRB097 05721 ASK 56016 a |
|
|
1 | | with a customer's request to be served at a different voltage
|
2 | | level, directly from the retail customer or customers for
whose |
3 | | benefit the costs were incurred, to the extent such
costs are |
4 | | not recovered through the charges referred to in
subsections |
5 | | (c) and (d) of this Section.
|
6 | | (f) An electric utility shall be entitled but not
required |
7 | | to implement transition charges in conjunction with
the |
8 | | offering of delivery services pursuant to Section 16-104.
If an |
9 | | electric utility implements transition charges, it shall |
10 | | implement such
charges for all delivery services customers and |
11 | | for all customers described in
subsection (h), but shall not |
12 | | implement transition charges for power and
energy that a retail |
13 | | customer takes from cogeneration or self-generation
facilities |
14 | | located on that retail customer's premises, if such facilities |
15 | | meet
the following criteria:
|
16 | | (i) the cogeneration or self-generation facilities |
17 | | serve a single retail
customer and are located on that |
18 | | retail customer's premises (for purposes of
this |
19 | | subparagraph and subparagraph (ii), an industrial or |
20 | | manufacturing retail
customer and a third party contractor |
21 | | that is served by such industrial or
manufacturing customer |
22 | | through such retail customer's own electrical
distribution |
23 | | facilities under the circumstances described in subsection |
24 | | (vi) of
the definition of "alternative retail electric |
25 | | supplier" set forth in Section
16-102, shall be considered |
26 | | a single retail customer);
|
|
| | 09700SB1653ham001 | - 143 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (ii) the cogeneration or self-generation facilities |
2 | | either (A) are sized
pursuant to generally accepted |
3 | | engineering standards for the retail customer's
electrical |
4 | | load at that premises (taking into account standby or other
|
5 | | reliability considerations related to that retail |
6 | | customer's operations at that
site) or (B) if the facility |
7 | | is a cogeneration facility located on the retail
customer's |
8 | | premises, the retail customer is the thermal host for that |
9 | | facility
and the facility has been designed to meet that |
10 | | retail customer's thermal
energy requirements resulting in |
11 | | electrical output beyond that retail
customer's electrical |
12 | | demand at that premises, comply with the operating and
|
13 | | efficiency standards applicable to "qualifying facilities" |
14 | | specified in title
18 Code of Federal Regulations Section |
15 | | 292.205 as in effect on the effective
date of this |
16 | | amendatory Act of 1999;
|
17 | | (iii) the retail customer on whose premises the |
18 | | facilities are located
either has an exclusive right to |
19 | | receive, and corresponding obligation to pay
for, all of |
20 | | the electrical capacity of the facility, or in the case of |
21 | | a
cogeneration facility that has been designed to meet the |
22 | | retail customer's
thermal energy requirements at that |
23 | | premises, an identified amount of the
electrical capacity |
24 | | of the facility, over a minimum 5-year period; and
|
25 | | (iv) if the cogeneration facility is sized for the
|
26 | | retail customer's thermal load at that premises but exceeds |
|
| | 09700SB1653ham001 | - 144 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the electrical
load, any sales of excess power or energy |
2 | | are made only at wholesale, are
subject to the jurisdiction |
3 | | of the Federal Energy Regulatory Commission, and
are not |
4 | | for the purpose of circumventing the provisions of this |
5 | | subsection (f).
|
6 | | If a generation facility located at a retail customer's |
7 | | premises does not meet
the above criteria, an electric utility |
8 | | implementing
transition charges shall implement a transition |
9 | | charge until December 31, 2006
for any power and energy taken |
10 | | by such retail customer from such facility as if
such power and |
11 | | energy had been delivered by the electric utility. Provided,
|
12 | | however, that an industrial retail customer that is taking |
13 | | power from a
generation facility that does not meet the above |
14 | | criteria but that is located
on such customer's premises will |
15 | | not be subject to a transition charge for the
power and energy |
16 | | taken by such retail customer from such generation facility if
|
17 | | the facility does not serve any other retail customer and |
18 | | either was installed
on behalf of the customer and for its own |
19 | | use prior to January 1, 1997, or is
both predominantly fueled |
20 | | by byproducts of such customer's manufacturing
process at such |
21 | | premises and sells or offers an average of 300 megawatts or
|
22 | | more of electricity produced from such generation facility into |
23 | | the wholesale
market.
Such charges
shall be calculated as |
24 | | provided in Section
16-102, and shall be collected
on each |
25 | | kilowatt-hour delivered under a
delivery services tariff to a |
26 | | retail customer from the date
the customer first takes delivery |
|
| | 09700SB1653ham001 | - 145 - | LRB097 05721 ASK 56016 a |
|
|
1 | | services until December 31,
2006 except as provided in |
2 | | subsection (h) of this Section.
Provided, however, that an |
3 | | electric utility, other than an electric utility
providing |
4 | | service to at least 1,000,000 customers in this State on |
5 | | January 1,
1999,
shall be entitled to petition for
entry of an |
6 | | order by the Commission authorizing the electric utility to
|
7 | | implement transition charges for an additional period ending no |
8 | | later than
December 31, 2008. The electric utility shall file |
9 | | its petition with
supporting evidence no earlier than 16 |
10 | | months, and no later than 12 months,
prior to December 31, |
11 | | 2006. The Commission shall hold a hearing on the
electric |
12 | | utility's petition and shall enter its order no later than 8 |
13 | | months
after the petition is filed. The Commission shall |
14 | | determine whether and to
what extent the electric utility shall |
15 | | be authorized to implement transition
charges for an additional |
16 | | period. The Commission may authorize the electric
utility to |
17 | | implement transition charges for some or all of the additional
|
18 | | period, and shall determine the mitigation factors to be used |
19 | | in implementing
such transition charges; provided, that the |
20 | | Commission shall not authorize
mitigation factors less than |
21 | | 110% of those in effect during the 12 months ended
December 31, |
22 | | 2006. In making its determination, the Commission shall |
23 | | consider
the following factors: the necessity to implement |
24 | | transition charges for an
additional period in order to |
25 | | maintain the financial integrity of the electric
utility; the |
26 | | prudence of the electric utility's actions in reducing its |
|
| | 09700SB1653ham001 | - 146 - | LRB097 05721 ASK 56016 a |
|
|
1 | | costs
since the effective date of this amendatory Act of 1997; |
2 | | the ability of the
electric utility to provide safe, adequate |
3 | | and reliable service to retail
customers in its service area; |
4 | | and the impact on competition of allowing the
electric utility |
5 | | to implement transition charges for the additional period.
|
6 | | (g) The electric utility shall file tariffs that
establish |
7 | | the transition charges to be paid by each class of
customers to |
8 | | the electric utility in conjunction with the
provision of |
9 | | delivery services. The electric utility's tariffs
shall define |
10 | | the classes of its customers for purposes of
calculating |
11 | | transition charges. The electric utility's tariffs
shall |
12 | | provide for the calculation of transition charges on a
|
13 | | customer-specific basis for any retail customer whose average
|
14 | | monthly maximum electrical demand on the electric utility's
|
15 | | system during the 6 months with the customer's highest monthly
|
16 | | maximum electrical demands equals or exceeds 3.0 megawatts for
|
17 | | electric utilities having more than 1,000,000 customers, and
|
18 | | for other electric utilities for any customer that has an
|
19 | | average monthly maximum electrical demand on the electric
|
20 | | utility's system of one megawatt or more, and (A) for which
|
21 | | there exists data on the customer's usage during the 3 years
|
22 | | preceding the date that the customer became eligible to take
|
23 | | delivery services, or (B) for which there does not exist data
|
24 | | on the customer's usage during the 3 years preceding the date
|
25 | | that the customer became eligible to take delivery services,
if |
26 | | in the electric utility's reasonable judgment there exists
|
|
| | 09700SB1653ham001 | - 147 - | LRB097 05721 ASK 56016 a |
|
|
1 | | comparable usage information or a sufficient basis to develop
|
2 | | such information, and further provided that the electric
|
3 | | utility can require customers for which an individual
|
4 | | calculation is made to sign contracts that set forth the
|
5 | | transition charges to be paid by the customer to the electric
|
6 | | utility pursuant to the tariff.
|
7 | | (h) An electric utility shall also be entitled to file
|
8 | | tariffs that allow it to collect transition charges from
retail |
9 | | customers in the electric utility's service area that
do not |
10 | | take delivery services but that take electric power or
energy |
11 | | from an alternative retail electric supplier or from an
|
12 | | electric utility other than the electric utility in whose
|
13 | | service area the customer is located. Such charges shall be
|
14 | | calculated, in accordance with the definition of transition
|
15 | | charges in Section 16-102, for the period of time that the
|
16 | | customer would be obligated to pay transition charges if it
|
17 | | were taking delivery services, except that no deduction for
|
18 | | delivery services revenues shall be made in such calculation,
|
19 | | and usage data from the customer's class shall be used where
|
20 | | historical usage data is not available for the individual
|
21 | | customer. The customer shall be obligated to pay such charges
|
22 | | on a lump sum basis on or before the date on which the
customer |
23 | | commences to take service from the alternative retail
electric |
24 | | supplier or other electric utility, provided, that
the electric |
25 | | utility in whose service area the customer is
located shall |
26 | | offer the customer the option of signing a
contract pursuant to |
|
| | 09700SB1653ham001 | - 148 - | LRB097 05721 ASK 56016 a |
|
|
1 | | which the customer pays such charges
ratably over the period in |
2 | | which the charges would otherwise
have applied.
|
3 | | (i) An electric utility shall be entitled to add to the
|
4 | | bills of delivery services customers charges pursuant to
|
5 | | Sections 9-221, 9-222 (except as provided in Section 9-222.1), |
6 | | and Section
16-114 of this Act, Section 5-5 of the Electricity |
7 | | Infrastructure Maintenance
Fee Law, Section 6-5 of the |
8 | | Renewable Energy, Energy Efficiency, and Coal
Resources |
9 | | Development Law of 1997, and Section 13 of the Energy |
10 | | Assistance Act.
|
11 | | (j) If a retail customer that obtains electric power and
|
12 | | energy from cogeneration or self-generation facilities
|
13 | | installed for its own use on or before January 1, 1997,
|
14 | | subsequently takes service from an alternative retail electric
|
15 | | supplier or an electric utility other than the electric
utility |
16 | | in whose service area the customer is located for any
portion |
17 | | of the customer's electric power and energy
requirements |
18 | | formerly obtained from those facilities (including that amount
|
19 | | purchased from the utility in lieu of such generation and not |
20 | | as standby power
purchases, under a cogeneration displacement |
21 | | tariff in effect as of the
effective date of this amendatory |
22 | | Act of 1997), the
transition charges otherwise applicable |
23 | | pursuant to subsections (f), (g), or
(h) of this Section shall |
24 | | not be applicable
in any year to that portion of the customer's |
25 | | electric power
and energy requirements formerly obtained from |
26 | | those
facilities, provided, that for purposes of this |
|
| | 09700SB1653ham001 | - 149 - | LRB097 05721 ASK 56016 a |
|
|
1 | | subsection
(j), such portion shall not exceed the average |
2 | | number of
kilowatt-hours per year obtained from the |
3 | | cogeneration or
self-generation facilities during the 3 years |
4 | | prior to the
date on which the customer became eligible for |
5 | | delivery
services, except as provided in subsection (f) of |
6 | | Section
16-110. |
7 | | (k) Beginning June 1, 2012, the electric utility shall be |
8 | | entitled to recover through its tariffed charges for delivery |
9 | | services (1) the costs of any renewable energy credits |
10 | | purchased to meet the renewable energy resource standards of |
11 | | subsection (c) of Section 1-75 of the Illinois Power Agency |
12 | | Act, pursuant to the electric utility's procurement plan as |
13 | | approved in accordance with Section 16-111.5 of this Act, and |
14 | | (2) any excluded renewable energy resources contract costs as |
15 | | defined in Section 1-10 of the Illinois Power Agency Act. The |
16 | | Commission shall determine a just and reasonable allocation of |
17 | | such costs to the various classes of customers taking delivery |
18 | | services from the electric utility, taking into account the |
19 | | provisions of paragraphs (2) and (6) of subsection (c) of |
20 | | Section 1-75 of the Illinois Power Agency Act and, with respect |
21 | | to excluded renewable energy resources contract costs, the |
22 | | extent to which the electric utility's eligible retail |
23 | | customers have become delivery services non-eligible retail |
24 | | customers subsequent to the year that the contracts giving rise |
25 | | to the excluded renewable energy resources costs were entered |
26 | | into. Provided, that in no event shall the Commission allocate |
|
| | 09700SB1653ham001 | - 150 - | LRB097 05721 ASK 56016 a |
|
|
1 | | the costs of renewable energy credits and excluded renewable |
2 | | energy resources contract costs in a manner that causes the |
3 | | rate limitations specified in paragraph (2) of subsection (c) |
4 | | of Section 1-75 of the Illinois Power Agency Act to be exceeded |
5 | | for any class of customers. |
6 | | For purposes of recovery through the electric utility's |
7 | | tariffed charges for delivery services, the cost of the |
8 | | renewable energy credits included in purchases of bundled |
9 | | renewable energy resources, as defined in Section 1-10 of the |
10 | | Illinois Power Agency Act, to meet the renewable energy |
11 | | resource standards applicable to the load of the electric |
12 | | utility's eligible retail customers, as defined in subsection |
13 | | (a) of Section 16-111.5 of this Act, shall be the allocated |
14 | | renewable energy credit prices approved by the Commission in |
15 | | accordance with subsection (f) of Section 16-111.5 of this Act. |
16 | | The electric utility shall be entitled to recover the cost |
17 | | of such renewable energy credits and excluded renewable energy |
18 | | resources contract costs through an automatic adjustment |
19 | | charge provision in the electric utility's delivery services |
20 | | tariffs that allows the electric utility to adjust its tariffed |
21 | | charges on an quarterly basis for changes in its costs incurred |
22 | | to purchase renewable energy credits and its excluded renewable |
23 | | energy resources contract costs, if any, without the need to |
24 | | file a general delivery services rate case. The electric |
25 | | utility's collections pursuant to such an automatic adjustment |
26 | | charge tariff shall be subject to annual review, |
|
| | 09700SB1653ham001 | - 151 - | LRB097 05721 ASK 56016 a |
|
|
1 | | reconciliation, and true-up against actual costs by the |
2 | | Commission pursuant to a procedure that shall be specified in |
3 | | the electric utility's tariff. The procedure shall provide that |
4 | | any difference between the electric utility's collections |
5 | | pursuant to the automatic adjustment charge for an annual |
6 | | period and the electric utility's actual costs of renewable |
7 | | energy credits and actual excluded renewable energy resources |
8 | | contract costs for the annual period shall be refunded to or |
9 | | collected from, as applicable, the electric utility's delivery |
10 | | services customers in subsequent periods.
|
11 | | (Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)
|
12 | | (220 ILCS 5/16-111.5) |
13 | | Sec. 16-111.5. Provisions relating to procurement. |
14 | | (a) An electric utility that on December 31, 2005 served at |
15 | | least 100,000 customers in Illinois shall procure power , energy |
16 | | efficiency products, and energy for its eligible retail |
17 | | customers in accordance with the applicable provisions set |
18 | | forth in Section 1-75 of the Illinois Power Agency Act and this |
19 | | Section and, for years beginning on and after June 1, 2012, |
20 | | shall procure renewable energy credits with respect to the |
21 | | kilowatthour usage of delivery services non-eligible retail |
22 | | customers in the electric utility's service area in accordance |
23 | | with the applicable provisions set forth in Section 1-75 of the |
24 | | Illinois Power Agency Act and this Section . "Eligible retail |
25 | | customers" for the purposes of this Section means those retail |
|
| | 09700SB1653ham001 | - 152 - | LRB097 05721 ASK 56016 a |
|
|
1 | | customers that purchase power and energy from the electric |
2 | | utility under fixed-price bundled service tariffs, other than |
3 | | those retail customers whose service is declared or deemed |
4 | | competitive under Section 16-113 and those other customer |
5 | | groups specified in this Section, including self-generating |
6 | | customers, customers electing hourly pricing, or those |
7 | | customers who are otherwise ineligible for fixed-price bundled |
8 | | tariff service. "Delivery services non-eligible retail |
9 | | customers" for the purposes of this Section has the meaning set |
10 | | forth in Section 1-10 of the Illinois Power Agency Act. Those |
11 | | customers that are excluded from the definition of "eligible |
12 | | retail customers" shall not be included in the procurement plan |
13 | | electric supply service load requirements, and the utility |
14 | | shall procure any supply requirements, including capacity, |
15 | | ancillary services, energy efficiency products, and hourly |
16 | | priced energy, in the applicable markets as needed to serve |
17 | | those customers, provided that the utility may include in its |
18 | | procurement plan load requirements for the load that is |
19 | | associated with those retail customers whose service has been |
20 | | declared or deemed competitive pursuant to Section 16-113 of |
21 | | this Act to the extent that those customers are purchasing |
22 | | power and energy during one of the transition periods |
23 | | identified in subsection (b) of Section 16-113 of this Act. |
24 | | (b) A procurement plan shall be prepared for each electric |
25 | | utility consistent with the applicable requirements of the |
26 | | Illinois Power Agency Act and this Section. For purposes of |
|
| | 09700SB1653ham001 | - 153 - | LRB097 05721 ASK 56016 a |
|
|
1 | | this Section, Illinois electric utilities that are affiliated |
2 | | by virtue of a common parent company are considered to be a |
3 | | single electric utility. Each procurement plan shall analyze |
4 | | the projected balance of supply and demand for eligible retail |
5 | | customers over a 5-year period with the first planning year |
6 | | beginning on June 1 of the year following the year in which the |
7 | | plan is filed. The plan shall specifically identify the |
8 | | wholesale products to be procured following plan approval, and |
9 | | shall follow all the requirements set forth in the Public |
10 | | Utilities Act and all applicable State and federal laws, |
11 | | statutes, rules, or regulations, as well as Commission orders. |
12 | | Nothing in this Section precludes consideration of contracts |
13 | | longer than 5 years and related forecast data. Unless specified |
14 | | otherwise in this Section, in the procurement plan or in the |
15 | | implementing tariff, any procurement occurring in accordance |
16 | | with this plan shall be competitively bid through a request for |
17 | | proposals process. Approval and implementation of the |
18 | | procurement plan shall be subject to review and approval by the |
19 | | Commission according to the provisions set forth in this |
20 | | Section. A procurement plan shall include each of the following |
21 | | components: |
22 | | (1) Hourly load analysis. This analysis shall include: |
23 | | (i) multi-year historical analysis of hourly |
24 | | loads; |
25 | | (ii) switching trends and competitive retail |
26 | | market analysis; |
|
| | 09700SB1653ham001 | - 154 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (iii) known or projected changes to future loads; |
2 | | and |
3 | | (iv) growth forecasts by customer class. |
4 | | (2) Analysis of the impact of any demand side and |
5 | | renewable energy initiatives. This analysis shall include: |
6 | | (i) the impact of demand response programs, both |
7 | | current and projected; |
8 | | (ii) supply side needs that are projected to be |
9 | | offset by purchases of renewable energy resources, if |
10 | | any; and |
11 | | (iii) the impact of energy efficiency programs, |
12 | | both current and projected. |
13 | | (3) A plan for meeting the expected load requirements |
14 | | that will not be met through preexisting contracts. This |
15 | | plan shall include: |
16 | | (i) definitions of the different retail customer |
17 | | classes for which supply is being purchased; |
18 | | (ii) the proposed mix of demand-response products |
19 | | for which contracts will be executed during the next |
20 | | year. The cost-effective demand-response measures |
21 | | shall be procured whenever the cost is lower than |
22 | | procuring comparable capacity products, provided that |
23 | | such products shall: |
24 | | (A) be procured by a demand-response provider |
25 | | from eligible retail customers; |
26 | | (B) at least satisfy the demand-response |
|
| | 09700SB1653ham001 | - 155 - | LRB097 05721 ASK 56016 a |
|
|
1 | | requirements of the regional transmission |
2 | | organization market in which the utility's service |
3 | | territory is located, including, but not limited |
4 | | to, any applicable capacity or dispatch |
5 | | requirements; |
6 | | (C) provide for customers' participation in |
7 | | the stream of benefits produced by the |
8 | | demand-response products; |
9 | | (D) provide for reimbursement by the |
10 | | demand-response provider of the utility for any |
11 | | costs incurred as a result of the failure of the |
12 | | supplier of such products to perform its |
13 | | obligations thereunder; and |
14 | | (E) meet the same credit requirements as apply |
15 | | to suppliers of capacity, in the applicable |
16 | | regional transmission organization market; |
17 | | (iii) the proposed energy efficiency products for |
18 | | which contracts will be executed during the next year. |
19 | | The cost effective energy efficiency measures shall be |
20 | | procured whenever the cost is lower than the combined |
21 | | avoided costs of energy, capacity, transmission, and |
22 | | the renewable portfolio standard for a comparable |
23 | | volume of energy provided that the energy efficiency |
24 | | products shall: |
25 | | (A) be procured by a energy efficiency |
26 | | provider from eligible retail customers; |
|
| | 09700SB1653ham001 | - 156 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (B) at least satisfy evaluation, measurement, |
2 | | and verification standards established pursuant to |
3 | | Section 8-103 of this Act; |
4 | | (C) provide for reimbursement by the energy |
5 | | efficiency provider of the utility for any costs |
6 | | incurred as a result of the failure of the supplier |
7 | | of such products to perform its obligations |
8 | | thereunder; and |
9 | | (D) meet the same credit requirements as apply |
10 | | to suppliers of capacity, in the applicable |
11 | | regional transmission organization market; |
12 | | (iv) (iii) monthly forecasted system supply |
13 | | requirements, including expected minimum, maximum, and |
14 | | average values for the planning period; |
15 | | (v) (iv) the proposed mix and selection of standard |
16 | | wholesale products for which contracts will be |
17 | | executed during the next year, separately or in |
18 | | combination, to meet that portion of its load |
19 | | requirements not met through pre-existing contracts, |
20 | | including but not limited to monthly 5 x 16 peak period |
21 | | block energy, monthly off-peak wrap energy, monthly 7 x |
22 | | 24 energy, annual 5 x 16 energy, annual off-peak wrap |
23 | | energy, annual 7 x 24 energy, monthly capacity, annual |
24 | | capacity, peak load capacity obligations, capacity |
25 | | purchase plan, and ancillary services; |
26 | | (vi) (v) proposed term structures for each |
|
| | 09700SB1653ham001 | - 157 - | LRB097 05721 ASK 56016 a |
|
|
1 | | wholesale product type included in the proposed |
2 | | procurement plan portfolio of products; and |
3 | | (vii) (vi) an assessment of the price risk, load |
4 | | uncertainty, and other factors that are associated |
5 | | with the proposed procurement plan; this assessment, |
6 | | to the extent possible, shall include an analysis of |
7 | | the following factors: contract terms, time frames for |
8 | | securing products or services, fuel costs, weather |
9 | | patterns, transmission costs, market conditions, and |
10 | | the governmental regulatory environment; the proposed |
11 | | procurement plan shall also identify alternatives for |
12 | | those portfolio measures that are identified as having |
13 | | significant price risk. |
14 | | (4) Proposed procedures for balancing loads. The |
15 | | procurement plan shall include, for load requirements |
16 | | included in the procurement plan, the process for (i) |
17 | | hourly balancing of supply and demand and (ii) the criteria |
18 | | for portfolio re-balancing in the event of significant |
19 | | shifts in load. |
20 | | (c) The procurement process set forth in Section 1-75 of |
21 | | the Illinois Power Agency Act and subsection (e) of this |
22 | | Section shall be administered by a procurement administrator |
23 | | and monitored by a procurement monitor. |
24 | | (1) The procurement administrator shall: |
25 | | (i) design the final procurement process in |
26 | | accordance with Section 1-75 of the Illinois Power |
|
| | 09700SB1653ham001 | - 158 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Agency Act and subsection (e) of this Section following |
2 | | Commission approval of the procurement plan; |
3 | | (ii) develop benchmarks in accordance with |
4 | | subsection (e)(3) to be used to evaluate bids; these |
5 | | benchmarks shall be submitted to the Commission for |
6 | | review and approval on a confidential basis prior to |
7 | | the procurement event; |
8 | | (iii) serve as the interface between the electric |
9 | | utility and suppliers; |
10 | | (iv) manage the bidder pre-qualification and |
11 | | registration process; |
12 | | (v) obtain the electric utilities' agreement to |
13 | | the final form of all supply contracts and credit |
14 | | collateral agreements; |
15 | | (vi) administer the request for proposals process; |
16 | | (vii) have the discretion to negotiate to |
17 | | determine whether bidders are willing to lower the |
18 | | price of bids that meet the benchmarks approved by the |
19 | | Commission; any post-bid negotiations with bidders |
20 | | shall be limited to price only and shall be completed |
21 | | within 24 hours after opening the sealed bids and shall |
22 | | be conducted in a fair and unbiased manner; in |
23 | | conducting the negotiations, there shall be no |
24 | | disclosure of any information derived from proposals |
25 | | submitted by competing bidders; if information is |
26 | | disclosed to any bidder, it shall be provided to all |
|
| | 09700SB1653ham001 | - 159 - | LRB097 05721 ASK 56016 a |
|
|
1 | | competing bidders; |
2 | | (viii) maintain confidentiality of supplier and |
3 | | bidding information in a manner consistent with all |
4 | | applicable laws, rules, regulations, and tariffs; |
5 | | (ix) submit a confidential report to the |
6 | | Commission recommending acceptance or rejection of |
7 | | bids; |
8 | | (x) notify the utility of contract counterparties |
9 | | and contract specifics; and |
10 | | (xi) administer related contingency procurement |
11 | | events. |
12 | | (2) The procurement monitor, who shall be retained by |
13 | | the Commission, shall: |
14 | | (i) monitor interactions among the procurement |
15 | | administrator, suppliers, and utility; |
16 | | (ii) monitor and report to the Commission on the |
17 | | progress of the procurement process; |
18 | | (iii) provide an independent confidential report |
19 | | to the Commission regarding the results of the |
20 | | procurement event; |
21 | | (iv) assess compliance with the procurement plans |
22 | | approved by the Commission for each utility that on |
23 | | December 31, 2005 provided electric service to a least |
24 | | 100,000 customers in Illinois; |
25 | | (v) preserve the confidentiality of supplier and |
26 | | bidding information in a manner consistent with all |
|
| | 09700SB1653ham001 | - 160 - | LRB097 05721 ASK 56016 a |
|
|
1 | | applicable laws, rules, regulations, and tariffs; |
2 | | (vi) provide expert advice to the Commission and |
3 | | consult with the procurement administrator regarding |
4 | | issues related to procurement process design, rules, |
5 | | protocols, and policy-related matters; and |
6 | | (vii) consult with the procurement administrator |
7 | | regarding the development and use of benchmark |
8 | | criteria, standard form contracts, credit policies, |
9 | | and bid documents. |
10 | | (d) Except as provided in subsection (j), the planning |
11 | | process shall be conducted as follows: |
12 | | (1) Beginning in 2008, each Illinois utility procuring |
13 | | power pursuant to this Section shall annually provide a |
14 | | range of load forecasts to the Illinois Power Agency by |
15 | | July 15 of each year, or such other date as may be required |
16 | | by the Commission or Agency. The load forecasts shall cover |
17 | | the 5-year procurement planning period for the next |
18 | | procurement plan and shall include hourly data |
19 | | representing a high-load, low-load and expected-load |
20 | | scenario for the load of the eligible retail customers. For |
21 | | procurement planning periods beginning on and after June 1, |
22 | | 2012, the electric utility shall provide a range of annual |
23 | | forecasts for the 5-year procurement planning period of the |
24 | | total kilowatthour usage of eligible retail customers and |
25 | | the total annual kilowatthour usage of delivery services |
26 | | non-eligible retail customers in its service area. The |
|
| | 09700SB1653ham001 | - 161 - | LRB097 05721 ASK 56016 a |
|
|
1 | | utility shall provide supporting data and assumptions for |
2 | | each of the scenarios.
|
3 | | (2) Beginning in 2008, the Illinois Power Agency shall |
4 | | prepare a procurement plan by August 15th of each year, or |
5 | | such other date as may be required by the Commission. The |
6 | | procurement plan shall identify the portfolio of |
7 | | demand-response , energy efficiency products, and power and |
8 | | energy products to be procured. Cost-effective |
9 | | demand-response measures and cost-effective energy |
10 | | measures shall be procured as set forth in items item (iii) |
11 | | and (iv) of subsection (b) of this Section. Copies of the |
12 | | procurement plan shall be posted and made publicly |
13 | | available on the Agency's and Commission's websites, and |
14 | | copies shall also be provided to each affected electric |
15 | | utility. An affected utility shall have 30 days following |
16 | | the date of posting to provide comment to the Agency on the |
17 | | procurement plan. Other interested entities also may |
18 | | comment on the procurement plan. All comments submitted to |
19 | | the Agency shall be specific, supported by data or other |
20 | | detailed analyses, and, if objecting to all or a portion of |
21 | | the procurement plan, accompanied by specific alternative |
22 | | wording or proposals. All comments shall be posted on the |
23 | | Agency's and Commission's websites. During this 30-day |
24 | | comment period, the Agency shall hold at least one public |
25 | | hearing within each utility's service area for the purpose |
26 | | of receiving public comment on the procurement plan. Within |
|
| | 09700SB1653ham001 | - 162 - | LRB097 05721 ASK 56016 a |
|
|
1 | | 14 days following the end of the 30-day review period, the |
2 | | Agency shall revise the procurement plan as necessary based |
3 | | on the comments received and file the procurement plan with |
4 | | the Commission and post the procurement plan on the |
5 | | websites. |
6 | | (3) Within 5 days after the filing of the procurement |
7 | | plan, any person objecting to the procurement plan shall |
8 | | file an objection with the Commission. Within 10 days after |
9 | | the filing, the Commission shall determine whether a |
10 | | hearing is necessary. The Commission shall enter its order |
11 | | confirming or modifying the procurement plan within 90 days |
12 | | after the filing of the procurement plan by the Illinois |
13 | | Power Agency. |
14 | | (4) The Commission shall approve the procurement plan, |
15 | | including expressly the forecast used in the procurement |
16 | | plan, if the Commission determines that it will ensure |
17 | | adequate, reliable, affordable, efficient, and |
18 | | environmentally sustainable electric service at the lowest |
19 | | total cost over time, taking into account any benefits of |
20 | | price stability. |
21 | | (e) The procurement process shall include each of the |
22 | | following components: |
23 | | (1) Solicitation, pre-qualification, and registration |
24 | | of bidders. The procurement administrator shall |
25 | | disseminate information to potential bidders to promote a |
26 | | procurement event, notify potential bidders that the |
|
| | 09700SB1653ham001 | - 163 - | LRB097 05721 ASK 56016 a |
|
|
1 | | procurement administrator may enter into a post-bid price |
2 | | negotiation with bidders that meet the applicable |
3 | | benchmarks, provide supply requirements, and otherwise |
4 | | explain the competitive procurement process. In addition |
5 | | to such other publication as the procurement administrator |
6 | | determines is appropriate, this information shall be |
7 | | posted on the Illinois Power Agency's and the Commission's |
8 | | websites. The procurement administrator shall also |
9 | | administer the prequalification process, including |
10 | | evaluation of credit worthiness, compliance with |
11 | | procurement rules, and agreement to the standard form |
12 | | contract developed pursuant to paragraph (2) of this |
13 | | subsection (e). The procurement administrator shall then |
14 | | identify and register bidders to participate in the |
15 | | procurement event. |
16 | | (2) Standard contract forms and credit terms and |
17 | | instruments. The procurement administrator, in |
18 | | consultation with the utilities, the Commission, and other |
19 | | interested parties and subject to Commission oversight, |
20 | | shall develop and provide standard contract forms for the |
21 | | supplier contracts that meet generally accepted industry |
22 | | practices. Standard credit terms and instruments that meet |
23 | | generally accepted industry practices shall be similarly |
24 | | developed. The procurement administrator shall make |
25 | | available to the Commission all written comments it |
26 | | receives on the contract forms, credit terms, or |
|
| | 09700SB1653ham001 | - 164 - | LRB097 05721 ASK 56016 a |
|
|
1 | | instruments. If the procurement administrator cannot reach |
2 | | agreement with the applicable electric utility as to the |
3 | | contract terms and conditions, the procurement |
4 | | administrator must notify the Commission of any disputed |
5 | | terms and the Commission shall resolve the dispute. The |
6 | | terms of the contracts shall not be subject to negotiation |
7 | | by winning bidders, and the bidders must agree to the terms |
8 | | of the contract in advance so that winning bids are |
9 | | selected solely on the basis of price. |
10 | | (3) Establishment of a market-based price benchmark. |
11 | | As part of the development of the procurement process, the |
12 | | procurement administrator, in consultation with the |
13 | | Commission staff, Agency staff, and the procurement |
14 | | monitor, shall establish benchmarks for evaluating the |
15 | | final prices in the contracts for each of the products that |
16 | | will be procured through the procurement process. The |
17 | | benchmarks shall be based on price data for similar |
18 | | products for the same delivery period and same delivery |
19 | | hub, or other delivery hubs after adjusting for that |
20 | | difference. The price benchmarks may also be adjusted to |
21 | | take into account differences between the information |
22 | | reflected in the underlying data sources and the specific |
23 | | products and procurement process being used to procure |
24 | | power for the Illinois utilities. The benchmarks shall be |
25 | | confidential but shall be provided to, and will be subject |
26 | | to Commission review and approval, prior to a procurement |
|
| | 09700SB1653ham001 | - 165 - | LRB097 05721 ASK 56016 a |
|
|
1 | | event. |
2 | | (4) Request for proposals competitive procurement |
3 | | process. The procurement administrator shall design and |
4 | | issue a request for proposals to supply electricity in |
5 | | accordance with each utility's procurement plan, as |
6 | | approved by the Commission. The request for proposals shall |
7 | | set forth a procedure for sealed, binding commitment |
8 | | bidding with pay-as-bid settlement, and provision for |
9 | | selection of bids on the basis of price. |
10 | | (5) A plan for implementing contingencies in the event |
11 | | of supplier default or failure of the procurement process |
12 | | to fully meet the expected load requirement due to |
13 | | insufficient supplier participation, Commission rejection |
14 | | of results, or any other cause. |
15 | | (i) Event of supplier default: In the event of |
16 | | supplier default, the utility shall review the |
17 | | contract of the defaulting supplier to determine if the |
18 | | amount of supply is 200 megawatts or greater, and if |
19 | | there are more than 60 days remaining of the contract |
20 | | term. If both of these conditions are met, and the |
21 | | default results in termination of the contract, then |
22 | | the utility shall immediately notify the Illinois |
23 | | Power Agency that a request for proposals must be |
24 | | issued to procure replacement power or energy |
25 | | efficiency products , and the procurement administrator |
26 | | shall run an additional procurement event. If the |
|
| | 09700SB1653ham001 | - 166 - | LRB097 05721 ASK 56016 a |
|
|
1 | | contracted supply of the defaulting supplier is less |
2 | | than 200 megawatts or there are less than 60 days |
3 | | remaining of the contract term, then the utility shall |
4 | | procure energy efficiency products or power and energy |
5 | | from the applicable regional transmission organization |
6 | | market, including ancillary services, capacity, energy |
7 | | efficiency products, and day-ahead or real time |
8 | | energy, or both, for the duration of the contract term |
9 | | to replace the contracted supply; provided, however, |
10 | | that if a needed product is not available through the |
11 | | regional transmission organization market it shall be |
12 | | purchased from the wholesale market. |
13 | | (ii) Failure of the procurement process to fully |
14 | | meet the expected load requirement: If the procurement |
15 | | process fails to fully meet the expected load |
16 | | requirement due to insufficient supplier participation |
17 | | or due to a Commission rejection of the procurement |
18 | | results, the procurement administrator, the |
19 | | procurement monitor, and the Commission staff shall |
20 | | meet within 10 days to analyze potential causes of low |
21 | | supplier interest or causes for the Commission |
22 | | decision. If changes are identified that would likely |
23 | | result in increased supplier participation, or that |
24 | | would address concerns causing the Commission to |
25 | | reject the results of the prior procurement event, the |
26 | | procurement administrator may implement those changes |
|
| | 09700SB1653ham001 | - 167 - | LRB097 05721 ASK 56016 a |
|
|
1 | | and rerun the request for proposals process according |
2 | | to a schedule determined by those parties and |
3 | | consistent with Section 1-75 of the Illinois Power |
4 | | Agency Act and this subsection. In any event, a new |
5 | | request for proposals process shall be implemented by |
6 | | the procurement administrator within 90 days after the |
7 | | determination that the procurement process has failed |
8 | | to fully meet the expected load requirement. |
9 | | (iii) In all cases where there is insufficient |
10 | | supply provided under contracts awarded through the |
11 | | procurement process to fully meet the electric |
12 | | utility's load requirement, the utility shall meet the |
13 | | load requirement by procuring power and energy from the |
14 | | applicable regional transmission organization market, |
15 | | including ancillary services, capacity, and day-ahead |
16 | | or real time energy or both; provided, however, that if |
17 | | a needed product is not available through the regional |
18 | | transmission organization market it shall be purchased |
19 | | from the wholesale market. |
20 | | (6) The procurement process described in this |
21 | | subsection is exempt from the requirements of the Illinois |
22 | | Procurement Code, pursuant to Section 20-10 of that Code. |
23 | | (f) Within 2 business days after opening the sealed bids, |
24 | | the procurement administrator shall submit a confidential |
25 | | report to the Commission. The report shall contain the results |
26 | | of the bidding for each of the products along with the |
|
| | 09700SB1653ham001 | - 168 - | LRB097 05721 ASK 56016 a |
|
|
1 | | procurement administrator's recommendation for the acceptance |
2 | | and rejection of bids based on the price benchmark criteria and |
3 | | other factors observed in the process. For procurements |
4 | | applicable to periods beginning on and after June 1, 2012, the |
5 | | report shall also include, with respect to each recommended |
6 | | purchase of bundled renewable energy resources as defined in |
7 | | Section 1-10 of the Illinois Power Agency Act, an allocation of |
8 | | the price between the price of the electricity generated by |
9 | | renewable energy resources and the price of the associated |
10 | | renewable energy credits. The procurement monitor also shall |
11 | | submit a confidential report to the Commission within 2 |
12 | | business days after opening the sealed bids. The report shall |
13 | | contain the procurement monitor's assessment of bidder |
14 | | behavior in the process as well as an assessment of the |
15 | | procurement administrator's compliance with the procurement |
16 | | process and rules. The Commission shall review the confidential |
17 | | reports submitted by the procurement administrator and |
18 | | procurement monitor, and shall accept or reject the |
19 | | recommendations of the procurement administrator , including |
20 | | the recommended allocation of the price of each purchase of |
21 | | bundled renewable energy resources between the price of the |
22 | | electricity and the price of the associated renewable energy |
23 | | credits, within 2 business days after receipt of the reports. |
24 | | (g) Within 3 business days after the Commission decision |
25 | | approving the results of a procurement event, the utility shall |
26 | | enter into binding contractual arrangements with the winning |
|
| | 09700SB1653ham001 | - 169 - | LRB097 05721 ASK 56016 a |
|
|
1 | | suppliers using the standard form contracts; except that the |
2 | | utility shall not be required either directly or indirectly to |
3 | | execute the contracts if a tariff that is consistent with |
4 | | subsection (l) of this Section has not been approved and placed |
5 | | into effect for that utility. |
6 | | (h) The names of the successful bidders and the load |
7 | | weighted average of the winning bid prices for each contract |
8 | | type and for each contract term shall be made available to the |
9 | | public at the time of Commission approval of a procurement |
10 | | event. The Commission, the procurement monitor, the |
11 | | procurement administrator, the Illinois Power Agency, and all |
12 | | participants in the procurement process shall maintain the |
13 | | confidentiality of all other supplier and bidding information |
14 | | in a manner consistent with all applicable laws, rules, |
15 | | regulations, and tariffs. Confidential information, including |
16 | | the confidential reports submitted by the procurement |
17 | | administrator and procurement monitor pursuant to subsection |
18 | | (f) of this Section, shall not be made publicly available and |
19 | | shall not be discoverable by any party in any proceeding, |
20 | | absent a compelling demonstration of need, nor shall those |
21 | | reports be admissible in any proceeding other than one for law |
22 | | enforcement purposes. |
23 | | (i) Within 2 business days after a Commission decision |
24 | | approving the results of a procurement event or such other date |
25 | | as may be required by the Commission from time to time, the |
26 | | utility shall file for informational purposes with the |
|
| | 09700SB1653ham001 | - 170 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Commission its actual or estimated retail supply charges, as |
2 | | applicable, by customer supply group reflecting the costs |
3 | | associated with the procurement and computed in accordance with |
4 | | the tariffs filed pursuant to subsection (l) of this Section |
5 | | and approved by the Commission. |
6 | | (j) Within 60 days following the effective date of this |
7 | | amendatory Act, each electric utility that on December 31, 2005 |
8 | | provided electric service to at least 100,000 customers in |
9 | | Illinois shall prepare and file with the Commission an initial |
10 | | procurement plan, which shall conform in all material respects |
11 | | to the requirements of the procurement plan set forth in |
12 | | subsection (b); provided, however, that the Illinois Power |
13 | | Agency Act shall not apply to the initial procurement plan |
14 | | prepared pursuant to this subsection. The initial procurement |
15 | | plan shall identify the portfolio of power and energy products |
16 | | to be procured and delivered for the period June 2008 through |
17 | | May 2009, and shall identify the proposed procurement |
18 | | administrator, who shall have the same experience and expertise |
19 | | as is required of a procurement administrator hired pursuant to |
20 | | Section 1-75 of the Illinois Power Agency Act. Copies of the |
21 | | procurement plan shall be posted and made publicly available on |
22 | | the Commission's website. The initial procurement plan may |
23 | | include contracts for renewable resources that extend beyond |
24 | | May 2009. |
25 | | (i) Within 14 days following filing of the initial |
26 | | procurement plan, any person may file a detailed objection |
|
| | 09700SB1653ham001 | - 171 - | LRB097 05721 ASK 56016 a |
|
|
1 | | with the Commission contesting the procurement plan |
2 | | submitted by the electric utility. All objections to the |
3 | | electric utility's plan shall be specific, supported by |
4 | | data or other detailed analyses. The electric utility may |
5 | | file a response to any objections to its procurement plan |
6 | | within 7 days after the date objections are due to be |
7 | | filed. Within 7 days after the date the utility's response |
8 | | is due, the Commission shall determine whether a hearing is |
9 | | necessary. If it determines that a hearing is necessary, it |
10 | | shall require the hearing to be completed and issue an |
11 | | order on the procurement plan within 60 days after the |
12 | | filing of the procurement plan by the electric utility. |
13 | | (ii) The order shall approve or modify the procurement |
14 | | plan, approve an independent procurement administrator, |
15 | | and approve or modify the electric utility's tariffs that |
16 | | are proposed with the initial procurement plan. The |
17 | | Commission shall approve the procurement plan if the |
18 | | Commission determines that it will ensure adequate, |
19 | | reliable, affordable, efficient, and environmentally |
20 | | sustainable electric service at the lowest total cost over |
21 | | time, taking into account any benefits of price stability. |
22 | | (k) In order to promote price stability for residential and |
23 | | small commercial customers during the transition to |
24 | | competition in Illinois, and notwithstanding any other |
25 | | provision of this Act, each electric utility subject to this |
26 | | Section shall enter into one or more multi-year financial swap |
|
| | 09700SB1653ham001 | - 172 - | LRB097 05721 ASK 56016 a |
|
|
1 | | contracts that become effective on the effective date of this |
2 | | amendatory Act. These contracts may be executed with generators |
3 | | and power marketers, including affiliated interests of the |
4 | | electric utility. These contracts shall be for a term of no |
5 | | more than 5 years and shall, for each respective utility or for |
6 | | any Illinois electric utilities that are affiliated by virtue |
7 | | of a common parent company and that are thereby considered a |
8 | | single electric utility for purposes of this subsection (k), |
9 | | not exceed in the aggregate 3,000 megawatts for any hour of the |
10 | | year. The contracts shall be financial contracts and not energy |
11 | | sales contracts. The contracts shall be executed as |
12 | | transactions under a negotiated master agreement based on the |
13 | | form of master agreement for financial swap contracts sponsored |
14 | | by the International Swaps and Derivatives Association, Inc. |
15 | | and shall be considered pre-existing contracts in the |
16 | | utilities' procurement plans for residential and small |
17 | | commercial customers. Costs incurred pursuant to a contract |
18 | | authorized by this subsection (k) shall be deemed prudently |
19 | | incurred and reasonable in amount and the electric utility |
20 | | shall be entitled to full cost recovery pursuant to the tariffs |
21 | | filed with the Commission. |
22 | | (l) An electric utility shall recover its costs incurred |
23 | | under this Section, including, but not limited to, the costs of |
24 | | procuring power , energy efficiency products, and energy |
25 | | demand-response resources under this Section. The utility |
26 | | shall file with the initial procurement plan its proposed |
|
| | 09700SB1653ham001 | - 173 - | LRB097 05721 ASK 56016 a |
|
|
1 | | tariffs through which its costs of procuring power that are |
2 | | incurred pursuant to a Commission-approved procurement plan |
3 | | and those other costs identified in this subsection (l), will |
4 | | be recovered. The tariffs shall include a formula rate or |
5 | | charge designed to pass through both the costs incurred by the |
6 | | utility in procuring a supply of electric power and energy for |
7 | | the applicable customer classes with no mark-up or return on |
8 | | the price paid by the utility for that supply, plus any just |
9 | | and reasonable costs that the utility incurs in arranging and |
10 | | providing for the supply of electric power and energy. The |
11 | | formula rate or charge shall also contain provisions that |
12 | | ensure that its application does not result in over or under |
13 | | recovery due to changes in customer usage and demand patterns, |
14 | | and that provide for the correction, on at least an annual |
15 | | basis, of any accounting errors that may occur. A utility shall |
16 | | recover through the tariff all reasonable costs incurred to |
17 | | implement or comply with any procurement plan that is developed |
18 | | and put into effect pursuant to Section 1-75 of the Illinois |
19 | | Power Agency Act and this Section, including any fees assessed |
20 | | by the Illinois Power Agency, costs associated with load |
21 | | balancing, and contingency plan costs. The electric utility |
22 | | shall also recover its full costs of procuring electric supply |
23 | | for which it contracted before the effective date of this |
24 | | Section in conjunction with the provision of full requirements |
25 | | service under fixed-price bundled service tariffs subsequent |
26 | | to December 31, 2006. All such costs shall be deemed to have |
|
| | 09700SB1653ham001 | - 174 - | LRB097 05721 ASK 56016 a |
|
|
1 | | been prudently incurred. The pass-through tariffs that are |
2 | | filed and approved pursuant to this Section shall not be |
3 | | subject to review under, or in any way limited by, Section |
4 | | 16-111(i) of this Act. Beginning June 1, 2012, the costs |
5 | | incurred by the electric utility to purchase renewable energy |
6 | | credits in accordance with subsection (c) of Section 1-75 of |
7 | | the Illinois Power Agency Act shall be recovered through the |
8 | | electric utility's tariffed charges for delivery services |
9 | | pursuant to Section 16-108 of this Act and shall not be |
10 | | recovered through the electric utility's tariffed charges for |
11 | | electric power and energy supply to its eligible retail |
12 | | customers. |
13 | | (m) The Commission has the authority to adopt rules to |
14 | | carry out the provisions of this Section. For the public |
15 | | interest, safety, and welfare, the Commission also has |
16 | | authority to adopt rules to carry out the provisions of this |
17 | | Section on an emergency basis immediately following the |
18 | | effective date of this amendatory Act. |
19 | | (n) Notwithstanding any other provision of this Act, any |
20 | | affiliated electric utilities that submit a single procurement |
21 | | plan covering their combined needs may procure for those |
22 | | combined needs in conjunction with that plan, and may enter |
23 | | jointly into power supply contracts, purchases, and other |
24 | | procurement arrangements, and allocate capacity , energy |
25 | | efficiency products, and energy and cost responsibility |
26 | | therefor among themselves in proportion to their requirements. |
|
| | 09700SB1653ham001 | - 175 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (o) On or before June 1 of each year, the Commission shall |
2 | | hold an informal hearing for the purpose of receiving comments |
3 | | on the prior year's procurement process and any recommendations |
4 | | for change.
|
5 | | (p) An electric utility subject to this Section may propose |
6 | | to invest, lease, own, or operate an electric generation |
7 | | facility as part of its procurement plan, provided the utility |
8 | | demonstrates that such facility is the least-cost option to |
9 | | provide electric service to eligible retail customers. If the |
10 | | facility is shown to be the least-cost option and is included |
11 | | in a procurement plan prepared in accordance with Section 1-75 |
12 | | of the Illinois Power Agency Act and this Section, then the |
13 | | electric utility shall make a filing pursuant to Section 8-406 |
14 | | of the Act, and may request of the Commission any statutory |
15 | | relief required thereunder. If the Commission grants all of the |
16 | | necessary approvals for the proposed facility, such supply |
17 | | shall thereafter be considered as a pre-existing contract under |
18 | | subsection (b) of this Section. The Commission shall in any |
19 | | order approving a proposal under this subsection specify how |
20 | | the utility will recover the prudently incurred costs of |
21 | | investing in, leasing, owning, or operating such generation |
22 | | facility through just and reasonable rates charged to eligible |
23 | | retail customers. Cost recovery for facilities included in the |
24 | | utility's procurement plan pursuant to this subsection shall |
25 | | not be subject to review under or in any way limited by the |
26 | | provisions of Section 16-111(i) of this Act. Nothing in this |
|
| | 09700SB1653ham001 | - 176 - | LRB097 05721 ASK 56016 a |
|
|
1 | | Section is intended to prohibit a utility from filing for a |
2 | | fuel adjustment clause as is otherwise permitted under Section |
3 | | 9-220 of this Act.
|
4 | | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09 .)
|
5 | | (220 ILCS 5/16-115)
|
6 | | Sec. 16-115. Certification of alternative retail
electric |
7 | | suppliers. |
8 | | (a) Any alternative retail electric supplier must obtain
a |
9 | | certificate of service authority from the Commission in
|
10 | | accordance with this Section before serving any retail
customer |
11 | | or other user located in this State. An alternative
retail |
12 | | electric supplier may request, and the Commission may
grant, a |
13 | | certificate of service authority for the entire State
or for a |
14 | | specified geographic area of the State.
|
15 | | (b) An alternative retail electric supplier seeking a
|
16 | | certificate of service authority shall file with the
Commission |
17 | | a verified application containing information
showing that the |
18 | | applicant meets the requirements of this
Section. The |
19 | | alternative retail electric supplier shall
publish notice of |
20 | | its application in the official State
newspaper within 10 days |
21 | | following the date of its filing. No
later than 45 days after |
22 | | the application is properly filed
with the Commission, and such |
23 | | notice is published, the
Commission shall issue its order |
24 | | granting or denying the
application.
|
25 | | (c) An application for a certificate of service
authority |
|
| | 09700SB1653ham001 | - 177 - | LRB097 05721 ASK 56016 a |
|
|
1 | | shall identify the area or areas in which the
applicant intends |
2 | | to offer service and the types of services
it intends to offer. |
3 | | Applicants that seek to serve
residential or small commercial |
4 | | retail customers within a
geographic area that is smaller than |
5 | | an electric utility's
service area shall submit evidence |
6 | | demonstrating that the
designation of this smaller area does |
7 | | not violate Section 16-115A. An applicant
that seeks to serve |
8 | | residential or small
commercial retail customers may state in |
9 | | its application for
certification any limitations that will be |
10 | | imposed on the
number of customers or maximum load to be |
11 | | served.
|
12 | | (d) The Commission shall grant the application for a
|
13 | | certificate of service authority if it makes the findings set
|
14 | | forth in this subsection
based on the verified
application and |
15 | | such other information as the applicant may
submit:
|
16 | | (1) That the applicant possesses sufficient
technical, |
17 | | financial and managerial resources and
abilities to |
18 | | provide the service for which it seeks a
certificate of |
19 | | service authority. In determining the
level of technical, |
20 | | financial and managerial resources
and abilities which the |
21 | | applicant must demonstrate, the
Commission shall consider |
22 | | (i) the characteristics,
including the size and financial |
23 | | sophistication, of the
customers that the applicant seeks |
24 | | to serve, and (ii)
whether the applicant seeks to provide |
25 | | electric power and
energy using property, plant and |
26 | | equipment which it owns,
controls or operates;
|
|
| | 09700SB1653ham001 | - 178 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (2) That the applicant will comply with all
applicable |
2 | | federal, State, regional and industry rules,
policies, |
3 | | practices and procedures for the use,
operation, and |
4 | | maintenance of the safety, integrity and
reliability, of |
5 | | the interconnected electric transmission
system;
|
6 | | (3) That the applicant will only provide service to
|
7 | | retail customers in an electric utility's service area
that |
8 | | are eligible to take delivery services under this
Act;
|
9 | | (4) That the applicant will comply with such
|
10 | | informational or reporting requirements as the Commission
|
11 | | may by rule establish and provide the information required |
12 | | by Section 16-112.
Any data related to
contracts for the |
13 | | purchase and sale of electric power and
energy shall be |
14 | | made available for review by the Staff of
the Commission on |
15 | | a confidential and proprietary basis
and only to the extent |
16 | | and for the purposes which the
Commission determines are |
17 | | reasonably necessary in order
to carry out the purposes of |
18 | | this Act;
|
19 | | (5) That the applicant will procure renewable energy |
20 | | resources in accordance with Section 16-115D of this Act, |
21 | | and will source electricity from clean coal facilities, as |
22 | | defined in Section 1-10 of the Illinois Power Agency Act, |
23 | | in amounts at least equal to the percentages set forth in |
24 | | subsections (c) and (d) of Section 1-75 of the Illinois |
25 | | Power Agency Act. For purposes of this Section:
|
26 | | (i) (blank) (Blank) ; |
|
| | 09700SB1653ham001 | - 179 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (ii) (blank) (Blank) ; |
2 | | (iii) (blank); the required sourcing of |
3 | | electricity generated by clean coal facilities, other |
4 | | than the initial clean coal facility, shall be limited |
5 | | to the amount of electricity that can be procured or |
6 | | sourced at a price at or below the benchmarks approved |
7 | | by the Commission each year in accordance with item (1) |
8 | | of subsection (c) and items (1) and (5) of subsection |
9 | | (d) of Section 1-75 of the Illinois Power Agency Act; |
10 | | (iv) all alternative retail electric suppliers , |
11 | | whether certified before or after the effective date of |
12 | | this amendatory Act of the 97th General Assembly, shall |
13 | | execute a sourcing agreement to source electricity |
14 | | from the initial clean coal facility, on the terms set |
15 | | forth in paragraphs (3) and (4) of subsection (d) of |
16 | | Section 1-75 of the Illinois Power Agency Act, with |
17 | | each reference therein to "utility" being deemed to be |
18 | | a reference to an alternative retail electric |
19 | | supplier, except that in lieu of the requirements in |
20 | | subparagraphs (B)(v), (D)(ii), and (D)(vii) (A)(v), |
21 | | (B)(i), (C)(v), and (C)(vi) of paragraph (3) of that |
22 | | subsection (d), shall not apply; the applicant shall |
23 | | execute one or more of the following: |
24 | | (1) if the sourcing agreement is a power |
25 | | purchase agreement, a contract with the initial |
26 | | clean coal facility to purchase in each hour an |
|
| | 09700SB1653ham001 | - 180 - | LRB097 05721 ASK 56016 a |
|
|
1 | | amount of electricity equal to all clean coal |
2 | | energy made available from the initial clean coal |
3 | | facility during such hour, which the utilities are |
4 | | not required to procure under the terms of |
5 | | subsection (d) of Section 1-75 of the Illinois |
6 | | Power Agency Act, multiplied by a fraction, the |
7 | | numerator of which is the alternative retail |
8 | | electric supplier's retail market sales of |
9 | | electricity (expressed in kilowatthours sold) in |
10 | | the State during the prior calendar month and the |
11 | | denominator of which is the total sales of |
12 | | electricity (expressed in kilowatthours sold) in |
13 | | the State by alternative retail electric suppliers |
14 | | during such prior month that are subject to the |
15 | | requirements of this paragraph (5) of subsection |
16 | | (d) of this Section and subsection (d) of Section |
17 | | 1-75 of the Illinois Power Agency Act plus the |
18 | | total sales of electricity (expressed in |
19 | | kilowatthours sold) by utilities outside of their |
20 | | service areas during such prior month, pursuant to |
21 | | subsection (c) of Section 16-116 of this Act; or |
22 | | (2) if the sourcing agreement is a contract for |
23 | | differences, a contract with the initial clean |
24 | | coal facility in each hour with respect to an |
25 | | amount of electricity equal to all clean coal |
26 | | energy made available from the initial clean coal |
|
| | 09700SB1653ham001 | - 181 - | LRB097 05721 ASK 56016 a |
|
|
1 | | facility during such hour, which the utilities are |
2 | | not required to procure under the terms of |
3 | | subsection (d) of Section 1-75 of the Illinois |
4 | | Power Agency Act, multiplied by a fraction, the |
5 | | numerator of which is the alternative retail |
6 | | electric supplier's retail market sales of |
7 | | electricity (expressed in kilowatthours sold) in |
8 | | the State during the prior calendar month and the |
9 | | denominator of which is the total sales of |
10 | | electricity (expressed in kilowatthours sold) in |
11 | | the State by alternative retail electric suppliers |
12 | | during such prior month that are subject to the |
13 | | requirements of this paragraph (5) of subsection |
14 | | (d) of this Section and subsection (d) of Section |
15 | | 1-75 of the Illinois Power Agency Act plus the |
16 | | total sales of electricity (expressed in |
17 | | kilowatthours sold) by utilities outside of their |
18 | | service areas during such prior month, pursuant to |
19 | | subsection (c) of Section 16-116 of this Act; |
20 | | (v) (blank); if, in any year after the first year |
21 | | of commercial operation, the owner of the clean coal |
22 | | facility fails to demonstrate to the Commission that |
23 | | the initial clean coal facility captured and |
24 | | sequestered at least 50% of the total carbon emissions |
25 | | that the facility would otherwise emit or that |
26 | | sequestration of emissions from prior years has |
|
| | 09700SB1653ham001 | - 182 - | LRB097 05721 ASK 56016 a |
|
|
1 | | failed, resulting in the release of carbon into the |
2 | | atmosphere, the owner of the facility must offset |
3 | | excess emissions. Any such carbon offsets must be |
4 | | permanent, additional, verifiable, real, located |
5 | | within the State of Illinois, and legally and |
6 | | practicably enforceable. The costs of any such offsets |
7 | | that are not recoverable shall not exceed $15 million |
8 | | in any given year. No costs of any such purchases of |
9 | | carbon offsets may be recovered from an alternative |
10 | | retail electric supplier or its customers. All carbon |
11 | | offsets purchased for this purpose and any carbon |
12 | | emission credits associated with sequestration of |
13 | | carbon from the facility must be permanently retired. |
14 | | The initial clean coal facility shall not forfeit its |
15 | | designation as a clean coal facility if the facility |
16 | | fails to fully comply with the applicable carbon |
17 | | sequestration requirements in any given year, provided |
18 | | the requisite offsets are purchased. However, the |
19 | | Attorney General, on behalf of the People of the State |
20 | | of Illinois, may specifically enforce the facility's |
21 | | sequestration requirement and the other terms of this |
22 | | contract provision. Compliance with the sequestration |
23 | | requirements and offset purchase requirements that |
24 | | apply to the initial clean coal facility shall be |
25 | | reviewed annually by an independent expert retained by |
26 | | the owner of the initial clean coal facility, with the |
|
| | 09700SB1653ham001 | - 183 - | LRB097 05721 ASK 56016 a |
|
|
1 | | advance written approval of the Attorney General; |
2 | | (vi) the The Commission shall, after notice and |
3 | | hearing, revoke the certification of any alternative |
4 | | retail electric supplier that fails to execute a |
5 | | sourcing agreement with the initial clean coal |
6 | | facility as required by item (5) of subsection (d) of |
7 | | this Section. The sourcing agreements with the this |
8 | | initial clean coal facility shall be subject to |
9 | | approval both approval of the initial clean coal |
10 | | facility by the Illinois Power Agency pursuant to |
11 | | paragraph (4) of subsection (d) of Section 1-75 of the |
12 | | Illinois Power Agency Act General Assembly and |
13 | | satisfaction of the requirements of item (4) of |
14 | | subsection (d) of Section 1-75 of the Illinois Power |
15 | | Agency Act, and shall be executed within 90 days after |
16 | | any such approval by the Illinois Power Agency or the |
17 | | issuance of any necessary approval by the Federal |
18 | | Energy Regulatory Commission, whichever is later; |
19 | | (vii) The Commission shall have jurisdiction over |
20 | | disciplinary proceedings and complaints for violations |
21 | | of this Section. If, upon complaint, the Commission |
22 | | determines an alternative retail electric supplier has |
23 | | failed to execute a sourcing agreement with the initial |
24 | | clean coal facility, then the Commission shall issue |
25 | | notice of the finding to the alternative retail |
26 | | electric supplier. The alternative retail electric |
|
| | 09700SB1653ham001 | - 184 - | LRB097 05721 ASK 56016 a |
|
|
1 | | supplier shall have 30 days after the receipt of notice |
2 | | to enter into a sourcing agreement. If, after the |
3 | | notice period, the Commission finds an alternative |
4 | | retail electric supplier has failed to comply, then the |
5 | | Commission shall revoke the alternative retail |
6 | | electric supplier's certificate for 6 months General |
7 | | Assembly. The Commission shall not accept an |
8 | | application for certification from an alternative |
9 | | retail electric supplier that has lost certification |
10 | | under this subsection (d), or any corporate affiliate |
11 | | thereof, for at least one year from the date of |
12 | | revocation ;
|
13 | | (6) With respect to an applicant that seeks to serve
|
14 | | residential or small commercial retail customers, that
the |
15 | | area to be served by the applicant and any
limitations it |
16 | | proposes on the number of customers or
maximum amount of |
17 | | load to be served meet the provisions
of Section 16-115A, |
18 | | provided, that the Commission can
extend the time for |
19 | | considering such a certificate
request by up to 90 days, |
20 | | and can schedule hearings on
such a request;
|
21 | | (7) That the applicant meets the requirements of |
22 | | subsection (a) of Section
16-128; and
|
23 | | (8) That the applicant will comply with all other
|
24 | | applicable laws and regulations.
|
25 | | (d-5) (Blank). |
26 | | (e) A retail customer that owns a cogeneration or |
|
| | 09700SB1653ham001 | - 185 - | LRB097 05721 ASK 56016 a |
|
|
1 | | self-generation facility
and that seeks certification only to
|
2 | | provide electric power and energy from such facility to
retail |
3 | | customers at separate locations which customers are
both (i) |
4 | | owned by, or a subsidiary or other corporate
affiliate of, such |
5 | | applicant and
(ii) eligible for delivery services, shall be |
6 | | granted a
certificate of service authority upon filing an |
7 | | application
and notifying the Commission that it has entered |
8 | | into an
agreement with the relevant electric utilities pursuant |
9 | | to
Section 16-118.
Provided, however, that if the retail |
10 | | customer owning such cogeneration or
self-generation facility |
11 | | would not be charged a transition charge due to the
exemption |
12 | | provided under subsection (f) of Section 16-108 prior to the
|
13 | | certification, and the retail customers at separate locations |
14 | | are taking
delivery services in conjunction with purchasing |
15 | | power and energy from the
facility, the retail customer on |
16 | | whose premises the facility is located shall
not thereafter be |
17 | | required to pay transition charges on the power and energy
that |
18 | | such retail customer takes from the facility.
|
19 | | (f) The Commission shall have the authority to
promulgate |
20 | | rules and regulations to carry out the provisions
of this |
21 | | Section. On or before May 1, 1999, the Commission
shall adopt a |
22 | | rule or rules applicable to the certification of
those |
23 | | alternative retail electric suppliers that seek to serve
only |
24 | | nonresidential retail customers with maximum electrical
|
25 | | demands of one megawatt or more which shall provide for (i)
|
26 | | expedited and streamlined procedures
for certification of such |
|
| | 09700SB1653ham001 | - 186 - | LRB097 05721 ASK 56016 a |
|
|
1 | | alternative
retail electric suppliers and (ii) specific |
2 | | criteria which,
if met by any such alternative retail electric |
3 | | supplier, shall
constitute the demonstration of technical, |
4 | | financial and
managerial resources and abilities to provide |
5 | | service required
by subsection (d) (1) of this Section, such as |
6 | | a requirement
to post a bond or letter of credit, from a |
7 | | responsible surety
or financial institution, of sufficient |
8 | | size for the nature
and scope of the services to be provided; |
9 | | demonstration of
adequate insurance for the scope and nature of |
10 | | the services to
be provided; and experience in providing |
11 | | similar services in
other jurisdictions.
|
12 | | (g) In any proceeding initiated by a public utility |
13 | | pursuant to Section 8-406 or Section 8-406.1 of the this Act |
14 | | for a certificate of public convenience and necessity to |
15 | | construct and operate any utility plant, equipment, or facility |
16 | | required to provide service to the initial clean coal facility, |
17 | | it shall be conclusively presumed that the public convenience |
18 | | and necessary require the construction of such utility plant, |
19 | | equipment, or facility. In any proceeding initiated by a public |
20 | | utility pursuant to Section 8-503 of this Act for an order |
21 | | directing the addition, extension, or improvement of any |
22 | | utility plant, equipment, facilities, or other property or the |
23 | | erection of any new utility plant, or equipment or facilities |
24 | | to provide service to the initial clean coal facility, it shall |
25 | | be conclusively presumed that such additional, extended, |
26 | | improved or new utility plant, equipment, facility, or other |
|
| | 09700SB1653ham001 | - 187 - | LRB097 05721 ASK 56016 a |
|
|
1 | | property is necessary and should be added, extended, or |
2 | | erected. |
3 | | (Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09; |
4 | | 96-159, eff. 8-10-09.)
|
5 | | (220 ILCS 5/16-115D) |
6 | | Sec. 16-115D. Renewable portfolio standard for alternative |
7 | | retail electric suppliers and electric utilities operating |
8 | | outside their service territories. |
9 | | (a) Until May 31, 2012, an An alternative retail electric |
10 | | supplier shall be responsible for procuring cost-effective |
11 | | renewable energy resources as required under item (5) of |
12 | | subsection (d) of Section 16-115 of this Act as outlined |
13 | | herein: |
14 | | (1) The definition of renewable energy resources |
15 | | contained in Section 1-10 of the Illinois Power Agency Act |
16 | | applies to all renewable energy resources required to be |
17 | | procured by alternative retail electric suppliers. |
18 | | (2) The quantity of renewable energy resources shall be |
19 | | measured as a percentage of the actual amount of metered |
20 | | electricity (megawatt-hours) delivered by the alternative |
21 | | retail electric supplier to Illinois retail customers |
22 | | during the 12-month period June 1 through May 31, |
23 | | commencing June 1, 2009, and the comparable 12-month period |
24 | | in each year thereafter except as provided in item (6) of |
25 | | this subsection (a). |
|
| | 09700SB1653ham001 | - 188 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (3) The quantity of renewable energy resources shall be |
2 | | in amounts at least equal to the annual percentages set |
3 | | forth in item (1) of subsection (c) of Section 1-75 of the |
4 | | Illinois Power Agency Act. At least 60% of the renewable |
5 | | energy resources procured pursuant to items (1) through (3) |
6 | | of subsection (b) of this Section shall come from wind |
7 | | generation and, starting June 1, 2015, at least 6% of the |
8 | | renewable energy resources procured pursuant to items (1) |
9 | | through (3) of subsection (b) of this Section shall come |
10 | | from solar photovoltaics. If, in any given year, an |
11 | | alternative retail electric supplier does not purchase at |
12 | | least these levels of renewable energy resources, then the |
13 | | alternative retail electric supplier shall make |
14 | | alternative compliance payments, as described in |
15 | | subsection (d) of this Section. |
16 | | (4) The quantity and source of renewable energy |
17 | | resources shall be independently verified through the PJM |
18 | | Environmental Information System Generation Attribute |
19 | | Tracking System (PJM-GATS) or the Midwest Renewable Energy |
20 | | Tracking System (M-RETS), which shall document the |
21 | | location of generation, resource type, month, and year of |
22 | | generation for all qualifying renewable energy resources |
23 | | that an alternative retail electric supplier uses to comply |
24 | | with this Section. No later than June 1, 2009, the Illinois |
25 | | Power Agency shall provide PJM-GATS, M-RETS, and |
26 | | alternative retail electric suppliers with all information |
|
| | 09700SB1653ham001 | - 189 - | LRB097 05721 ASK 56016 a |
|
|
1 | | necessary to identify resources located in Illinois, |
2 | | within states that adjoin Illinois or within portions of |
3 | | the PJM and MISO footprint in the United States that |
4 | | qualify under the definition of renewable energy resources |
5 | | in Section 1-10 of the Illinois Power Agency Act for |
6 | | compliance with this Section 16-115D. Alternative retail |
7 | | electric suppliers shall not be subject to the requirements |
8 | | in item (3) of subsection (c) of Section 1-75 of the |
9 | | Illinois Power Agency Act. |
10 | | (5) All renewable energy credits used to comply with |
11 | | this Section shall be permanently retired. |
12 | | (6) The required procurement of renewable energy |
13 | | resources by an alternative retail electric supplier shall |
14 | | apply to all metered electricity delivered to Illinois |
15 | | retail customers by the alternative retail electric |
16 | | supplier pursuant to contracts executed or extended after |
17 | | March 15, 2009. |
18 | | (b) Until May 31, 2012, an An alternative retail electric |
19 | | supplier shall comply with the renewable energy portfolio |
20 | | standards by making an alternative compliance payment, as |
21 | | described in subsection (d) of this Section, to cover at least |
22 | | one-half of the alternative retail electric supplier's |
23 | | compliance obligation and any one or combination of the |
24 | | following means to cover the remainder of the alternative |
25 | | retail electric supplier's compliance obligation: |
26 | | (1) Generating electricity using renewable energy |
|
| | 09700SB1653ham001 | - 190 - | LRB097 05721 ASK 56016 a |
|
|
1 | | resources identified pursuant to item (4) of subsection (a) |
2 | | of this Section. |
3 | | (2) Purchasing electricity generated using renewable |
4 | | energy resources identified pursuant to item (4) of |
5 | | subsection (a) of this Section through an energy contract. |
6 | | (3) Purchasing renewable energy credits from renewable |
7 | | energy resources identified pursuant to item (4) of |
8 | | subsection (a) of this Section. |
9 | | (4) Making an alternative compliance payment as |
10 | | described in subsection (d) of this Section. |
11 | | (c) Use of renewable energy credits. |
12 | | (1) Renewable energy credits that are not used by an |
13 | | alternative retail electric supplier to comply with a |
14 | | renewable portfolio standard in a compliance year may be |
15 | | banked and carried forward up to 2 12-month compliance |
16 | | periods after the compliance period in which the credit was |
17 | | generated for the purpose of complying with a renewable |
18 | | portfolio standard in those 2 subsequent compliance |
19 | | periods. For the 2009-2010 and 2010-2011 compliance |
20 | | periods, an alternative retail electric supplier may use |
21 | | renewable credits generated after December 31, 2008 and |
22 | | before June 1, 2009 to comply with this Section. |
23 | | (2) An alternative retail electric supplier is |
24 | | responsible for demonstrating that a renewable energy |
25 | | credit used to comply with a renewable portfolio standard |
26 | | is derived from a renewable energy resource and that the |
|
| | 09700SB1653ham001 | - 191 - | LRB097 05721 ASK 56016 a |
|
|
1 | | alternative retail electric supplier has not used, traded, |
2 | | sold, or otherwise transferred the credit. |
3 | | (3) The same renewable energy credit may be used by an |
4 | | alternative retail electric supplier to comply with a |
5 | | federal renewable portfolio standard and a renewable |
6 | | portfolio standard established under this Act. An |
7 | | alternative retail electric supplier that uses a renewable |
8 | | energy credit to comply with a renewable portfolio standard |
9 | | imposed by any other state may not use the same credit to |
10 | | comply with a renewable portfolio standard established |
11 | | under this Act. |
12 | | (d) Alternative compliance payments. |
13 | | (1) The Commission shall establish and post on its |
14 | | website, within 5 business days after entering an order |
15 | | approving a procurement plan pursuant to Section 1-75 of |
16 | | the Illinois Power Agency Act, maximum alternative |
17 | | compliance payment rates, expressed on a per kilowatt-hour |
18 | | basis, that will be applicable in the first compliance |
19 | | period following the plan approval. A separate maximum |
20 | | alternative compliance payment rate shall be established |
21 | | for the service territory of each electric utility that is |
22 | | subject to subsection (c) of Section 1-75 of the Illinois |
23 | | Power Agency Act. Each maximum alternative compliance |
24 | | payment rate shall be equal to the maximum allowable annual |
25 | | estimated average net increase due to the costs of the |
26 | | utility's purchase of renewable energy resources included |
|
| | 09700SB1653ham001 | - 192 - | LRB097 05721 ASK 56016 a |
|
|
1 | | in the amounts paid by eligible retail customers in |
2 | | connection with electric service, as described in item (2) |
3 | | of subsection (c) of Section 1-75 of the Illinois Power |
4 | | Agency Act for the compliance period, and as established in |
5 | | the approved procurement plan. Following each procurement |
6 | | event through which renewable energy resources are |
7 | | purchased for one or more of these utilities for the |
8 | | compliance period, the Commission shall establish and post |
9 | | on its website estimates of the alternative compliance |
10 | | payment rates, expressed on a per kilowatt-hour basis, that |
11 | | shall apply for that compliance period. Posting of the |
12 | | estimates shall occur no later than 10 business days |
13 | | following the procurement event, however, the Commission |
14 | | shall not be required to establish and post such estimates |
15 | | more often than once per calendar month. By July 1 of each |
16 | | year, the Commission shall establish and post on its |
17 | | website the actual alternative compliance payment rates |
18 | | for the preceding compliance year. For compliance years |
19 | | beginning prior to June 1, 2014, each alternative |
20 | | compliance payment rate shall be equal to the total amount |
21 | | of dollars that the utility contracted to spend on |
22 | | renewable resources, excepting the additional incremental |
23 | | cost attributable to solar resources, for the compliance |
24 | | period divided by the forecasted load of eligible retail |
25 | | customers, at the customers' meters, as previously |
26 | | established in the Commission-approved procurement plan |
|
| | 09700SB1653ham001 | - 193 - | LRB097 05721 ASK 56016 a |
|
|
1 | | for that compliance year. For compliance years commencing |
2 | | on or after June 1, 2014, each alternative compliance |
3 | | payment rate shall be equal to the total amount of dollars |
4 | | that the utility contracted to spend on all renewable |
5 | | resources for the compliance period divided by the |
6 | | forecasted load of eligible retail customers, at the |
7 | | customers' meters, as previously established in the |
8 | | Commission-approved procurement plan for that compliance |
9 | | year. The actual alternative compliance payment rates may |
10 | | not exceed the maximum alternative compliance payment |
11 | | rates established for the compliance period. For purposes |
12 | | of this subsection (d), the term "eligible retail |
13 | | customers" has the same meaning as found in Section |
14 | | 16-111.5 of this Act. |
15 | | (2) In any given compliance year, an alternative retail |
16 | | electric supplier may elect to use alternative compliance |
17 | | payments to comply with all or a part of the applicable |
18 | | renewable portfolio standard. In the event that an |
19 | | alternative retail electric supplier elects to make |
20 | | alternative compliance payments to comply with all or a |
21 | | part of the applicable renewable portfolio standard, such |
22 | | payments shall be made by September 1, 2010 for the period |
23 | | of June 1, 2009 to May 1, 2010 and by September 1 of each |
24 | | year thereafter for the subsequent compliance period, in |
25 | | the manner and form as determined by the Commission. Any |
26 | | election by an alternative retail electric supplier to use |
|
| | 09700SB1653ham001 | - 194 - | LRB097 05721 ASK 56016 a |
|
|
1 | | alternative compliance payments is subject to review by the |
2 | | Commission under subsection (e) of this Section. |
3 | | (3) An alternative retail electric supplier's |
4 | | alternative compliance payments shall be computed |
5 | | separately for each electric utility's service territory |
6 | | within which the alternative retail electric supplier |
7 | | provided retail service during the compliance period, |
8 | | provided that the electric utility was subject to |
9 | | subsection (c) of Section 1-75 of the Illinois Power Agency |
10 | | Act. For each service territory, the alternative retail |
11 | | electric supplier's alternative compliance payment shall |
12 | | be equal to (i) the actual alternative compliance payment |
13 | | rate established in item (1) of this subsection (d), |
14 | | multiplied by (ii) the actual amount of metered electricity |
15 | | delivered by the alternative retail electric supplier to |
16 | | retail customers within the service territory during the |
17 | | compliance period, multiplied by (iii) the result of one |
18 | | minus the ratios of the quantity of renewable energy |
19 | | resources used by the alternative retail electric supplier |
20 | | to comply with the requirements of this Section within the |
21 | | service territory to the product of the percentage of |
22 | | renewable energy resources required under item (3) of |
23 | | subsection (a) of this Section and the actual amount of |
24 | | metered electricity delivered by the alternative retail |
25 | | electric supplier to retail customers within the service |
26 | | territory during the compliance period. |
|
| | 09700SB1653ham001 | - 195 - | LRB097 05721 ASK 56016 a |
|
|
1 | | (4) All alternative compliance payments by alternative |
2 | | retail electric suppliers shall be deposited in the |
3 | | Illinois Power Agency Renewable Energy Resources Fund and |
4 | | used to purchase renewable energy credits, in accordance |
5 | | with Section 1-56 of the Illinois Power Agency Act. |
6 | | (5) The Commission, in consultation with the Illinois |
7 | | Power Agency, shall establish a process or proceeding to |
8 | | consider the impact of a federal renewable portfolio |
9 | | standard, if enacted, on the operation of the alternative |
10 | | compliance mechanism, which shall include, but not be |
11 | | limited to, developing, to the extent permitted by the |
12 | | applicable federal statute, an appropriate methodology to |
13 | | apportion renewable energy credits retired as a result of |
14 | | alternative compliance payments made in accordance with |
15 | | this Section. The Commission shall commence any such |
16 | | process or proceeding within 35 days after enactment of a |
17 | | federal renewable portfolio standard. |
18 | | (e) Each alternative retail electric supplier shall, by |
19 | | September 1, 2010 and by September 1 of each year thereafter, |
20 | | prepare and submit to the Commission a report, in a format to |
21 | | be specified by the Commission on or before December 31, 2009, |
22 | | that provides information certifying compliance by the |
23 | | alternative retail electric supplier with this Section, |
24 | | including copies of all PJM-GATS and M-RETS reports, and |
25 | | documentation relating to banking, retiring renewable energy |
26 | | credits, and any other information that the Commission |
|
| | 09700SB1653ham001 | - 196 - | LRB097 05721 ASK 56016 a |
|
|
1 | | determines necessary to ensure compliance with this Section. An |
2 | | alternative retail electric supplier may file commercially or |
3 | | financially sensitive information or trade secrets with the |
4 | | Commission as provided under the rules of the Commission. To be |
5 | | filed confidentially, the information shall be accompanied by |
6 | | an affidavit that sets forth both the reasons for the |
7 | | confidentiality and a public synopsis of the information. |
8 | | (f) The Commission may initiate a contested case to review |
9 | | allegations that the alternative retail electric supplier has |
10 | | violated this Section, including an order issued or rule |
11 | | promulgated under this Section. In any such proceeding, the |
12 | | alternative retail electric supplier shall have the burden of |
13 | | proof. If the Commission finds, after notice and hearing, that |
14 | | an alternative retail electric supplier has violated this |
15 | | Section, then the Commission shall issue an order requiring the |
16 | | alternative retail electric supplier to: |
17 | | (1) immediately comply with this Section; and |
18 | | (2) if the violation involves a failure to procure the |
19 | | requisite quantity of renewable energy resources or pay the |
20 | | applicable alternative compliance payment by the annual |
21 | | deadline, the Commission shall require the alternative |
22 | | retail electric supplier to double the applicable |
23 | | alternative compliance payment that would otherwise be |
24 | | required to bring the alternative retail electric supplier |
25 | | into compliance with this Section. |
26 | | If an alternative retail electric supplier fails to comply |
|
| | 09700SB1653ham001 | - 197 - | LRB097 05721 ASK 56016 a |
|
|
1 | | with the renewable energy resource portfolio requirement in |
2 | | this Section more than once in a 5-year period, then the |
3 | | Commission shall revoke the alternative electric supplier's |
4 | | certificate of service authority. The Commission shall not |
5 | | accept an application for a certificate of service authority |
6 | | from an alternative retail electric supplier that has lost |
7 | | certification under this subsection (f), or any corporate |
8 | | affiliate thereof, for at least one year after the date of |
9 | | revocation. |
10 | | (g) All of the provisions of this Section apply to electric |
11 | | utilities operating outside their service area except under |
12 | | item (2) of subsection (a) of this Section the quantity of |
13 | | renewable energy resources shall be measured as a percentage of |
14 | | the actual amount of electricity (megawatt-hours) supplied in |
15 | | the State outside of the utility's service territory during the |
16 | | 12-month period June 1 through May 31, commencing June 1, 2009, |
17 | | and the comparable 12-month period in each year thereafter |
18 | | except as provided in item (6) of subsection (a) of this |
19 | | Section. |
20 | | If any such utility fails to procure the requisite quantity |
21 | | of renewable energy resources by the annual deadline, then the |
22 | | Commission shall require the utility to double the alternative |
23 | | compliance payment that would otherwise be required to bring |
24 | | the utility into compliance with this Section. |
25 | | If any such utility fails to comply with the renewable |
26 | | energy resource portfolio requirement in this Section more than |
|
| | 09700SB1653ham001 | - 198 - | LRB097 05721 ASK 56016 a |
|
|
1 | | once in a 5-year period, then the Commission shall order the |
2 | | utility to cease all sales outside of the utility's service |
3 | | territory for a period of at least one year. |
4 | | (h) The provisions of this Section and the provisions of |
5 | | subsection (d) of Section 16-115 of this Act relating to |
6 | | procurement of renewable energy resources shall not apply to an |
7 | | alternative retail electric supplier that operates a combined |
8 | | heat and power system in this State or that has a corporate |
9 | | affiliate that operates such a combined heat and power system |
10 | | in this State that supplies electricity primarily to or for the |
11 | | benefit of: (i) facilities owned by the supplier, its |
12 | | subsidiary, or other corporate affiliate; (ii) facilities |
13 | | electrically integrated with the electrical system of |
14 | | facilities owned by the supplier, its subsidiary, or other |
15 | | corporate affiliate; or (iii) facilities that are adjacent to |
16 | | the site on which the combined heat and power system is |
17 | | located.
|
18 | | (i) The obligations specified in this Section of |
19 | | alternative electric suppliers and electric utilities |
20 | | operating outside their service territories to procure |
21 | | renewable energy resources, make alternative compliance |
22 | | payments, and file annual reports, and the obligations of the |
23 | | Commission to determine and post alternative compliance |
24 | | payment rates, shall terminate effective May 31, 2012, provided |
25 | | that alternative electric suppliers and electric utilities |
26 | | operating outside their service territories shall be obligated |
|
| | 09700SB1653ham001 | - 199 - | LRB097 05721 ASK 56016 a |
|
|
1 | | to make all alternative compliance payments that they were |
2 | | obligated to pay for periods through and including May 31, |
3 | | 2012, but were not paid as of that date and to file all |
4 | | required reports for periods prior to June 1, 2012. The |
5 | | Commission shall continue to enforce the payment of unpaid |
6 | | alternative compliance payments after May 31, 2012 in |
7 | | accordance with subsections (f) and (g) of this Section. All |
8 | | alternative compliance payments made after May 31, 2012 shall |
9 | | be deposited in the Illinois Power Agency Renewable Energy |
10 | | Resources Fund and used to purchase renewable energy credits, |
11 | | in accordance with Section 1-56 of the Illinois Power Agency |
12 | | Act. |
13 | | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; |
14 | | 96-1437, eff. 8-17-10.)
|
15 | | (220 ILCS 5/16-116)
|
16 | | Sec. 16-116. Commission oversight of electric utilities |
17 | | serving retail
customers
outside their service areas or |
18 | | providing
competitive, non-tariffed services. |
19 | | (a) An electric utility that has a tariff on file for
|
20 | | delivery services may, without regard to any otherwise
|
21 | | applicable tariffs on file, provide electric power and energy
|
22 | | to one or more retail customers located outside its service
|
23 | | area, but only to the extent (i) such retail customer (A) is
|
24 | | eligible for delivery services under any delivery services
|
25 | | tariff filed with the Commission by the electric utility in
|
|
| | 09700SB1653ham001 | - 200 - | LRB097 05721 ASK 56016 a |
|
|
1 | | whose service area the retail customer is located and (B) has
|
2 | | either elected to take such delivery services or has paid or
|
3 | | contracted to pay the charges specified in Sections 16-108 and
|
4 | | 16-114, or (ii) if such retail customer is served by a
|
5 | | municipal system or electric cooperative, the customer is
|
6 | | eligible for delivery services under the terms and conditions
|
7 | | for such service established by the municipal system or
|
8 | | electric cooperative serving that customer.
|
9 | | (b) An electric utility may offer any competitive
service |
10 | | to any customer or group of customers without filing
contracts |
11 | | with or seeking approval of the Commission, notwithstanding any |
12 | | rule
or regulation that would require such
approval. The |
13 | | Commission shall not increase or decrease the
prices, and may |
14 | | not alter or add to the terms and conditions
for the utility's |
15 | | competitive services, from those agreed to by the electric
|
16 | | utility and the customer or customers. Non-tariffed, |
17 | | competitive services
shall
not be subject to the provisions of |
18 | | the Electric Supplier Act or to Articles V,
VII, VIII or
IX of |
19 | | the Act, except to the extent that any provisions of
such |
20 | | Articles are made applicable to alternative retail
electric |
21 | | suppliers pursuant to Sections 16-115 and 16-115A, but shall be
|
22 | | subject to the provisions of subsections (b) through (g) of |
23 | | Section 16-115A,
and Section 16-115B to the same extent such |
24 | | provisions are applicable to the
services provided by |
25 | | alternative retail electric suppliers.
|
26 | | (c) Electric utilities serving retail customers outside |
|
| | 09700SB1653ham001 | - 201 - | LRB097 05721 ASK 56016 a |
|
|
1 | | their service areas shall be subject to the requirements of |
2 | | paragraph (5) of subsection (d) of Section 16-115 of the Public |
3 | | Utilities Act , except that the numerators referred to in that |
4 | | subsection (d) shall be the utility's retail market sales of |
5 | | electricity (expressed in kilowatthours sold) in the State |
6 | | outside of the utility's service territory in the prior month . |
7 | | (Source: P.A. 95-1027, eff. 6-1-09 .)
|
8 | | Section 900. Severability. The provisions of this Act are |
9 | | severable under Section 1.31 of the Statute on Statutes.
|
10 | | Section 999. Effective date. This Act takes effect upon |
11 | | becoming law.".
|