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Full Text of SB1455  100th General Assembly

SB1455 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1455

 

Introduced 2/9/2017, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-115D

    Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities.


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A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-115D as follows:
 
6    (220 ILCS 5/16-115D)
7    (Text of Section before amendment by P.A. 99-906)
8    Sec. 16-115D. Renewable portfolio standard for alternative
9retail electric suppliers and electric utilities operating
10outside their service territories.
11    (a) An alternative retail electric supplier shall be
12responsible for procuring cost-effective renewable energy
13resources as required under item (5) of subsection (d) of
14Section 16-115 of this Act as outlined herein:
15        (1) The definition of renewable energy resources
16    contained in Section 1-10 of the Illinois Power Agency Act
17    applies to all renewable energy resources required to be
18    procured by alternative retail electric suppliers.
19        (2) The quantity of renewable energy resources shall be
20    measured as a percentage of the actual amount of metered
21    electricity (megawatt-hours) delivered by the alternative
22    retail electric supplier to Illinois retail customers
23    during the 12-month period June 1 through May 31,

 

 

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1    commencing June 1, 2009, and the comparable 12-month period
2    in each year thereafter except as provided in item (6) of
3    this subsection (a).
4        (3) The quantity of renewable energy resources shall be
5    in amounts at least equal to the annual percentages set
6    forth in item (1) of subsection (c) of Section 1-75 of the
7    Illinois Power Agency Act. At least 60% of the renewable
8    energy resources procured pursuant to items (1) through (3)
9    of subsection (b) of this Section shall come from wind
10    generation and, starting June 1, 2015, at least 6% of the
11    renewable energy resources procured pursuant to items (1)
12    through (3) of subsection (b) of this Section shall come
13    from solar photovoltaics. If, in any given year, an
14    alternative retail electric supplier does not purchase at
15    least these levels of renewable energy resources, then the
16    alternative retail electric supplier shall make
17    alternative compliance payments, as described in
18    subsection (d) of this Section.
19        (4) The quantity and source of renewable energy
20    resources shall be independently verified through the PJM
21    Environmental Information System Generation Attribute
22    Tracking System (PJM-GATS) or the Midwest Renewable Energy
23    Tracking System (M-RETS), which shall document the
24    location of generation, resource type, month, and year of
25    generation for all qualifying renewable energy resources
26    that an alternative retail electric supplier uses to comply

 

 

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1    with this Section. No later than June 1, 2009, the Illinois
2    Power Agency shall provide PJM-GATS, M-RETS, and
3    alternative retail electric suppliers with all information
4    necessary to identify resources located in Illinois,
5    within states that adjoin Illinois or within portions of
6    the PJM and MISO footprint in the United States that
7    qualify under the definition of renewable energy resources
8    in Section 1-10 of the Illinois Power Agency Act for
9    compliance with this Section 16-115D. Alternative retail
10    electric suppliers shall not be subject to the requirements
11    in item (3) of subsection (c) of Section 1-75 of the
12    Illinois Power Agency Act.
13        (5) All renewable energy credits used to comply with
14    this Section shall be permanently retired.
15        (6) The required procurement of renewable energy
16    resources by an alternative retail electric supplier shall
17    apply to all metered electricity delivered to Illinois
18    retail customers by the alternative retail electric
19    supplier pursuant to contracts executed or extended after
20    March 15, 2009.
21    (b) An alternative retail electric supplier shall comply
22with the renewable energy portfolio standards by making an
23alternative compliance payment, as described in subsection (d)
24of this Section, to cover at least one-half of the alternative
25retail electric supplier's compliance obligation and any one or
26combination of the following means to cover the remainder of

 

 

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1the alternative retail electric supplier's compliance
2obligation:
3        (1) Generating electricity using renewable energy
4    resources identified pursuant to item (4) of subsection (a)
5    of this Section.
6        (2) Purchasing electricity generated using renewable
7    energy resources identified pursuant to item (4) of
8    subsection (a) of this Section through an energy contract.
9        (3) Purchasing renewable energy credits from renewable
10    energy resources identified pursuant to item (4) of
11    subsection (a) of this Section.
12        (4) Making an alternative compliance payment as
13    described in subsection (d) of this Section.
14    (c) Use of renewable energy credits.
15        (1) Renewable energy credits that are not used by an
16    alternative retail electric supplier to comply with a
17    renewable portfolio standard in a compliance year may be
18    banked and carried forward up to 2 12-month compliance
19    periods after the compliance period in which the credit was
20    generated for the purpose of complying with a renewable
21    portfolio standard in those 2 subsequent compliance
22    periods. For the 2009-2010 and 2010-2011 compliance
23    periods, an alternative retail electric supplier may use
24    renewable credits generated after December 31, 2008 and
25    before June 1, 2009 to comply with this Section.
26        (2) An alternative retail electric supplier is

 

 

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1    responsible for demonstrating that a renewable energy
2    credit used to comply with a renewable portfolio standard
3    is derived from a renewable energy resource and that the
4    alternative retail electric supplier has not used, traded,
5    sold, or otherwise transferred the credit.
6        (3) The same renewable energy credit may be used by an
7    alternative retail electric supplier to comply with a
8    federal renewable portfolio standard and a renewable
9    portfolio standard established under this Act. An
10    alternative retail electric supplier that uses a renewable
11    energy credit to comply with a renewable portfolio standard
12    imposed by any other state may not use the same credit to
13    comply with a renewable portfolio standard established
14    under this Act.
15    (d) Alternative compliance payments.
16        (1) The Commission shall establish and post on its
17    website, within 5 business days after entering an order
18    approving a procurement plan pursuant to Section 1-75 of
19    the Illinois Power Agency Act, maximum alternative
20    compliance payment rates, expressed on a per kilowatt-hour
21    basis, that will be applicable in the first compliance
22    period following the plan approval. A separate maximum
23    alternative compliance payment rate shall be established
24    for the service territory of each electric utility that is
25    subject to subsection (c) of Section 1-75 of the Illinois
26    Power Agency Act. Each maximum alternative compliance

 

 

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1    payment rate shall be equal to the maximum allowable annual
2    estimated average net increase due to the costs of the
3    utility's purchase of renewable energy resources included
4    in the amounts paid by eligible retail customers in
5    connection with electric service, as described in item (2)
6    of subsection (c) of Section 1-75 of the Illinois Power
7    Agency Act for the compliance period, and as established in
8    the approved procurement plan. Following each procurement
9    event through which renewable energy resources are
10    purchased for one or more of these utilities for the
11    compliance period, the Commission shall establish and post
12    on its website estimates of the alternative compliance
13    payment rates, expressed on a per kilowatt-hour basis, that
14    shall apply for that compliance period. Posting of the
15    estimates shall occur no later than 10 business days
16    following the procurement event, however, the Commission
17    shall not be required to establish and post such estimates
18    more often than once per calendar month. By July 1 of each
19    year, the Commission shall establish and post on its
20    website the actual alternative compliance payment rates
21    for the preceding compliance year. For compliance years
22    beginning prior to June 1, 2014, each alternative
23    compliance payment rate shall be equal to the total amount
24    of dollars that the utility contracted to spend on
25    renewable resources, excepting the additional incremental
26    cost attributable to solar resources, for the compliance

 

 

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1    period divided by the forecasted load of eligible retail
2    customers, at the customers' meters, as previously
3    established in the Commission-approved procurement plan
4    for that compliance year. For compliance years commencing
5    on or after June 1, 2014, each alternative compliance
6    payment rate shall be equal to the total amount of dollars
7    that the utility contracted to spend on all renewable
8    resources for the compliance period divided by the
9    forecasted load of eligible retail customers, at the
10    customers' meters, as previously established in the
11    Commission-approved procurement plan for that compliance
12    year. The actual alternative compliance payment rates may
13    not exceed the maximum alternative compliance payment
14    rates established for the compliance period. For purposes
15    of this subsection (d), the term "eligible retail
16    customers" has the same meaning as found in Section
17    16-111.5 of this Act.
18        (2) In any given compliance year, an alternative retail
19    electric supplier may elect to use alternative compliance
20    payments to comply with all or a part of the applicable
21    renewable portfolio standard. In the event that an
22    alternative retail electric supplier elects to make
23    alternative compliance payments to comply with all or a
24    part of the applicable renewable portfolio standard, such
25    payments shall be made by September 1, 2010 for the period
26    of June 1, 2009 to May 1, 2010 and by September 1 of each

 

 

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1    year thereafter for the subsequent compliance period, in
2    the manner and form as determined by the Commission. Any
3    election by an alternative retail electric supplier to use
4    alternative compliance payments is subject to review by the
5    Commission under subsection (e) of this Section.
6        (3) An alternative retail electric supplier's
7    alternative compliance payments shall be computed
8    separately for each electric utility's service territory
9    within which the alternative retail electric supplier
10    provided retail service during the compliance period,
11    provided that the electric utility was subject to
12    subsection (c) of Section 1-75 of the Illinois Power Agency
13    Act. For each service territory, the alternative retail
14    electric supplier's alternative compliance payment shall
15    be equal to (i) the actual alternative compliance payment
16    rate established in item (1) of this subsection (d),
17    multiplied by (ii) the actual amount of metered electricity
18    delivered by the alternative retail electric supplier to
19    retail customers within the service territory during the
20    compliance period, multiplied by (iii) the result of one
21    minus the ratios of the quantity of renewable energy
22    resources used by the alternative retail electric supplier
23    to comply with the requirements of this Section within the
24    service territory to the product of the percentage of
25    renewable energy resources required under item (3) of
26    subsection (a) of this Section and the actual amount of

 

 

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1    metered electricity delivered by the alternative retail
2    electric supplier to retail customers within the service
3    territory during the compliance period.
4        (4) All alternative compliance payments by alternative
5    retail electric suppliers shall be deposited in the
6    Illinois Power Agency Renewable Energy Resources Fund and
7    used to purchase renewable energy credits, in accordance
8    with Section 1-56 of the Illinois Power Agency Act.
9    Beginning April 1, 2012 and by April 1 of each year
10    thereafter, the Illinois Power Agency shall submit an
11    annual report to the General Assembly, the Commission, and
12    alternative retail electric suppliers that shall include,
13    but not be limited to:
14            (A) the total amount of alternative compliance
15        payments received in aggregate from alternative retail
16        electric suppliers by planning year for all previous
17        planning years in which the alternative compliance
18        payment was in effect;
19            (B) the amount of those payments utilized to
20        purchased renewable energy credits itemized by the
21        date of each procurement in which the payments were
22        utilized; and
23            (C) the unused and remaining balance in the Agency
24        Renewable Energy Resources Fund attributable to those
25        payments.
26        (5) The Commission, in consultation with the Illinois

 

 

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1    Power Agency, shall establish a process or proceeding to
2    consider the impact of a federal renewable portfolio
3    standard, if enacted, on the operation of the alternative
4    compliance mechanism, which shall include, but not be
5    limited to, developing, to the extent permitted by the
6    applicable federal statute, an appropriate methodology to
7    apportion renewable energy credits retired as a result of
8    alternative compliance payments made in accordance with
9    this Section. The Commission shall commence any such
10    process or proceeding within 35 days after enactment of a
11    federal renewable portfolio standard.
12    (e) Each alternative retail electric supplier shall, by
13September 1, 2010 and by September 1 of each year thereafter,
14prepare and submit to the Commission a report, in a format to
15be specified by the Commission on or before December 31, 2009,
16that provides information certifying compliance by the
17alternative retail electric supplier with this Section,
18including copies of all PJM-GATS and M-RETS reports, and
19documentation relating to banking, retiring renewable energy
20credits, and any other information that the Commission
21determines necessary to ensure compliance with this Section. An
22alternative retail electric supplier may file commercially or
23financially sensitive information or trade secrets with the
24Commission as provided under the rules of the Commission. To be
25filed confidentially, the information shall be accompanied by
26an affidavit that sets forth both the reasons for the

 

 

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1confidentiality and a public synopsis of the information.
2    (f) The Commission may initiate a contested case to review
3allegations that the alternative retail electric supplier has
4violated this Section, including an order issued or rule
5promulgated under this Section. In any such proceeding, the
6alternative retail electric supplier shall have the burden of
7proof. If the Commission finds, after notice and hearing, that
8an alternative retail electric supplier has violated this
9Section, then the Commission shall issue an order requiring the
10alternative retail electric supplier to:
11        (1) immediately comply with this Section; and
12        (2) if the violation involves a failure to procure the
13    requisite quantity of renewable energy resources or pay the
14    applicable alternative compliance payment by the annual
15    deadline, the Commission shall require the alternative
16    retail electric supplier to double the applicable
17    alternative compliance payment that would otherwise be
18    required to bring the alternative retail electric supplier
19    into compliance with this Section.
20    If an alternative retail electric supplier fails to comply
21with the renewable energy resource portfolio requirement in
22this Section more than once in a 5-year period, then the
23Commission shall revoke the alternative electric supplier's
24certificate of service authority. The Commission shall not
25accept an application for a certificate of service authority
26from an alternative retail electric supplier that has lost

 

 

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1certification under this subsection (f), or any corporate
2affiliate thereof, for at least one year after the date of
3revocation.
4    (g) All of the provisions of this Section apply to electric
5utilities operating outside their service area except under
6item (2) of subsection (a) of this Section the quantity of
7renewable energy resources shall be measured as a percentage of
8the actual amount of electricity (megawatt-hours) supplied in
9the State outside of the utility's service territory during the
1012-month period June 1 through May 31, commencing June 1, 2009,
11and the comparable 12-month period in each year thereafter
12except as provided in item (6) of subsection (a) of this
13Section.
14    If any such utility fails to procure the requisite quantity
15of renewable energy resources by the annual deadline, then the
16Commission shall require the utility to double the alternative
17compliance payment that would otherwise be required to bring
18the utility into compliance with this Section.
19    If any such utility fails to comply with the renewable
20energy resource portfolio requirement in this Section more than
21once in a 5-year period, then the Commission shall order the
22utility to cease all sales outside of the utility's service
23territory for a period of at least one year.
24    (h) The provisions of this Section and the provisions of
25subsection (d) of Section 16-115 of this Act relating to
26procurement of renewable energy resources shall not apply to an

 

 

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1alternative retail electric supplier that operates a combined
2heat and power system in this State or that has a corporate
3affiliate that operates such a combined heat and power system
4in this State that supplies electricity primarily to or for the
5benefit of: (i) facilities owned by the supplier, its
6subsidiary, or other corporate affiliate; (ii) facilities
7electrically integrated with the electrical system of
8facilities owned by the supplier, its subsidiary, or other
9corporate affiliate; or (iii) facilities that are adjacent to
10the site on which the combined heat and power system is
11located.
12(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
1396-1437, eff. 8-17-10; 97-658, eff. 1-13-12.)
 
14    (Text of Section after amendment by P.A. 99-906)
15    Sec. 16-115D. Renewable portfolio standard for alternative
16retail electric suppliers and electric utilities operating
17outside their service territories.
18    (a) An alternative retail electric supplier shall be
19responsible for procuring cost-effective renewable energy
20resources as required under item (5) of subsection (d) of
21Section 16-115 of this Act as outlined herein:
22        (1) The definition of renewable energy resources
23    contained in Section 1-10 of the Illinois Power Agency Act
24    applies to all renewable energy resources required to be
25    procured by alternative retail electric suppliers.

 

 

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1        (2) Through May 31, 2017, the quantity of renewable
2    energy resources shall be measured as a percentage of the
3    actual amount of metered electricity (megawatt-hours)
4    delivered by the alternative retail electric supplier to
5    Illinois retail customers during the 12-month period June 1
6    through May 31, commencing June 1, 2009, and the comparable
7    12-month period in each year thereafter except as provided
8    in item (6) of this subsection (a).
9        (3) Through May 31, 2017, the quantity of renewable
10    energy resources shall be in amounts at least equal to the
11    annual percentages set forth in item (1) of subsection (c)
12    of Section 1-75 of the Illinois Power Agency Act. At least
13    60% of the renewable energy resources procured pursuant to
14    items (1) and (3) of subsection (b) of this Section shall
15    come from wind generation and, starting June 1, 2015, at
16    least 6% of the renewable energy resources procured
17    pursuant to items (1) and (3) of subsection (b) of this
18    Section shall come from solar photovoltaics. If, in any
19    given year, an alternative retail electric supplier does
20    not purchase at least these levels of renewable energy
21    resources, then the alternative retail electric supplier
22    shall make alternative compliance payments, as described
23    in subsection (d) of this Section.
24        (3.5) For the delivery year commencing June 1, 2017,
25    the quantity of renewable energy resources shall be at
26    least 13.0% of the uncovered amount of metered electricity

 

 

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1    (megawatt-hours) delivered by the alternative retail
2    electric supplier to Illinois retail customers during the
3    delivery year, which uncovered amount shall equal 50% of
4    such metered electricity delivered by the alternative
5    retail electric supplier. For the delivery year commencing
6    June 1, 2018, the quantity of renewable energy resources
7    shall be at least 14.5% of the uncovered amount of metered
8    electricity (megawatt-hours) delivered by the alternative
9    retail electric supplier to Illinois retail customers
10    during the delivery year, which uncovered amount shall
11    equal 25% of such metered electricity delivered by the
12    alternative retail electric supplier. At least 32% of the
13    renewable energy resources procured by the alternative
14    retail electric supplier for its uncovered portion under
15    this paragraph (3.5) shall come from wind or photovoltaic
16    generation. The renewable energy resources procured under
17    this paragraph (3.5) shall not include any resources from a
18    facility whose costs were being recovered through rates
19    regulated by any state or states on or after January 1,
20    2017.
21        (4) The quantity and source of renewable energy
22    resources shall be independently verified through the PJM
23    Environmental Information System Generation Attribute
24    Tracking System (PJM-GATS) or the Midwest Renewable Energy
25    Tracking System (M-RETS), which shall document the
26    location of generation, resource type, month, and year of

 

 

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1    generation for all qualifying renewable energy resources
2    that an alternative retail electric supplier uses to comply
3    with this Section. No later than June 1, 2009, the Illinois
4    Power Agency shall provide PJM-GATS, M-RETS, and
5    alternative retail electric suppliers with all information
6    necessary to identify resources located in Illinois,
7    within states that adjoin Illinois or within portions of
8    the PJM and MISO footprint in the United States that
9    qualify under the definition of renewable energy resources
10    in Section 1-10 of the Illinois Power Agency Act for
11    compliance with this Section 16-115D. Alternative retail
12    electric suppliers shall not be subject to the requirements
13    in item (3) of subsection (c) of Section 1-75 of the
14    Illinois Power Agency Act.
15        (5) All renewable energy credits used to comply with
16    this Section shall be permanently retired.
17        (6) The required procurement of renewable energy
18    resources by an alternative retail electric supplier shall
19    apply to all metered electricity delivered to Illinois
20    retail customers by the alternative retail electric
21    supplier pursuant to contracts executed or extended after
22    March 15, 2009.
23    (b) Compliance obligations.
24        (1) Through May 31, 2017, an alternative retail
25    electric supplier shall comply with the renewable energy
26    portfolio standards by making an alternative compliance

 

 

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1    payment, as described in subsection (d) of this Section, to
2    cover at least one-half of the alternative retail electric
3    supplier's compliance obligation for the period prior to
4    June 1, 2017.
5        (2) For the delivery years beginning June 1, 2017 and
6    June 1, 2018, an alternative retail electric supplier need
7    not make any alternative compliance payment to meet any
8    portion of its compliance obligation, as set forth in
9    paragraph (3.5) of subsection (a) of this Section.
10        (3) An alternative retail electric supplier shall use
11    any one or combination of the following means to cover the
12    remainder of the alternative retail electric supplier's
13    compliance obligation, as set forth in paragraphs (3) and
14    (3.5) of subsection (a) of this Section, not covered by an
15    alternative compliance payment made under paragraphs (1)
16    and (2) of this subsection (b) of this Section:
17            (A) Generating electricity using renewable energy
18        resources identified pursuant to item (4) of
19        subsection (a) of this Section.
20            (B) Purchasing electricity generated using
21        renewable energy resources identified pursuant to item
22        (4) of subsection (a) of this Section through an energy
23        contract.
24            (C) Purchasing renewable energy credits from
25        renewable energy resources identified pursuant to item
26        (4) of subsection (a) of this Section.

 

 

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1            (D) Making an alternative compliance payment as
2        described in subsection (d) of this Section.
3    (c) Use of renewable energy credits.
4        (1) Renewable energy credits that are not used by an
5    alternative retail electric supplier to comply with a
6    renewable portfolio standard in a compliance year may be
7    banked and carried forward up to 2 12-month compliance
8    periods after the compliance period in which the credit was
9    generated for the purpose of complying with a renewable
10    portfolio standard in those 2 subsequent compliance
11    periods. For the 2009-2010 and 2010-2011 compliance
12    periods, an alternative retail electric supplier may use
13    renewable credits generated after December 31, 2008 and
14    before June 1, 2009 to comply with this Section.
15        (2) An alternative retail electric supplier is
16    responsible for demonstrating that a renewable energy
17    credit used to comply with a renewable portfolio standard
18    is derived from a renewable energy resource and that the
19    alternative retail electric supplier has not used, traded,
20    sold, or otherwise transferred the credit.
21        (3) The same renewable energy credit may be used by an
22    alternative retail electric supplier to comply with a
23    federal renewable portfolio standard and a renewable
24    portfolio standard established under this Act. An
25    alternative retail electric supplier that uses a renewable
26    energy credit to comply with a renewable portfolio standard

 

 

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1    imposed by any other state may not use the same credit to
2    comply with a renewable portfolio standard established
3    under this Act.
4    (d) Alternative compliance payments.
5        (1) The Commission shall establish and post on its
6    website, within 5 business days after entering an order
7    approving a procurement plan pursuant to Section 1-75 of
8    the Illinois Power Agency Act, maximum alternative
9    compliance payment rates, expressed on a per kilowatt-hour
10    basis, that will be applicable in the first compliance
11    period following the plan approval. A separate maximum
12    alternative compliance payment rate shall be established
13    for the service territory of each electric utility that is
14    subject to subsection (c) of Section 1-75 of the Illinois
15    Power Agency Act. Each maximum alternative compliance
16    payment rate shall be equal to the maximum allowable annual
17    estimated average net increase due to the costs of the
18    utility's purchase of renewable energy resources included
19    in the amounts paid by eligible retail customers in
20    connection with electric service, as described in item (2)
21    of subsection (c) of Section 1-75 of the Illinois Power
22    Agency Act for the compliance period, and as established in
23    the approved procurement plan. Following each procurement
24    event through which renewable energy resources are
25    purchased for one or more of these utilities for the
26    compliance period, the Commission shall establish and post

 

 

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1    on its website estimates of the alternative compliance
2    payment rates, expressed on a per kilowatt-hour basis, that
3    shall apply for that compliance period. Posting of the
4    estimates shall occur no later than 10 business days
5    following the procurement event, however, the Commission
6    shall not be required to establish and post such estimates
7    more often than once per calendar month. By July 1 of each
8    year, the Commission shall establish and post on its
9    website the actual alternative compliance payment rates
10    for the preceding compliance year. For compliance years
11    beginning prior to June 1, 2014, each alternative
12    compliance payment rate shall be equal to the total amount
13    of dollars that the utility contracted to spend on
14    renewable resources, excepting the additional incremental
15    cost attributable to solar resources, for the compliance
16    period divided by the forecasted load of eligible retail
17    customers, at the customers' meters, as previously
18    established in the Commission-approved procurement plan
19    for that compliance year. For compliance years commencing
20    on or after June 1, 2014, each alternative compliance
21    payment rate shall be equal to the total amount of dollars
22    that the utility contracted to spend on all renewable
23    resources for the compliance period divided by the
24    forecasted load of retail customers for which the utility
25    is procuring renewable energy resources in a given delivery
26    year, at the customers' meters, as previously established

 

 

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1    in the Commission-approved procurement plan for that
2    compliance year. The actual alternative compliance payment
3    rates may not exceed the maximum alternative compliance
4    payment rates established for the compliance period. For
5    purposes of this subsection (d), the term "eligible retail
6    customers" has the same meaning as found in Section
7    16-111.5 of this Act.
8        (2) In any given compliance year, an alternative retail
9    electric supplier may elect to use alternative compliance
10    payments to comply with all or a part of the applicable
11    renewable portfolio standard. In the event that an
12    alternative retail electric supplier elects to make
13    alternative compliance payments to comply with all or a
14    part of the applicable renewable portfolio standard, such
15    payments shall be made by September 1, 2010 for the period
16    of June 1, 2009 to May 1, 2010 and by September 1 of each
17    year thereafter for the subsequent compliance period, in
18    the manner and form as determined by the Commission. Any
19    election by an alternative retail electric supplier to use
20    alternative compliance payments is subject to review by the
21    Commission under subsection (e) of this Section.
22        (3) An alternative retail electric supplier's
23    alternative compliance payments shall be computed
24    separately for each electric utility's service territory
25    within which the alternative retail electric supplier
26    provided retail service during the compliance period,

 

 

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1    provided that the electric utility was subject to
2    subsection (c) of Section 1-75 of the Illinois Power Agency
3    Act. For each service territory, the alternative retail
4    electric supplier's alternative compliance payment shall
5    be equal to (i) the actual alternative compliance payment
6    rate established in item (1) of this subsection (d),
7    multiplied by (ii) the actual amount of metered electricity
8    delivered by the alternative retail electric supplier to
9    retail customers for which the supplier has a compliance
10    obligation within the service territory during the
11    compliance period, multiplied by (iii) the result of one
12    minus the ratios of the quantity of renewable energy
13    resources used by the alternative retail electric supplier
14    to comply with the requirements of this Section within the
15    service territory to the product of the percentage of
16    renewable energy resources required under item (3) or (3.5)
17    of subsection (a) of this Section and the actual amount of
18    metered electricity delivered by the alternative retail
19    electrical supplier to retail customers for which the
20    supplier has a compliance obligation within the service
21    territory during the compliance period.
22        (4) Through May 31, 2017, all alternative compliance
23    payments by alternative retail electric suppliers shall be
24    deposited in the Illinois Power Agency Renewable Energy
25    Resources Fund and used to purchase renewable energy
26    credits, in accordance with Section 1-56 of the Illinois

 

 

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1    Power Agency Act. Beginning April 1, 2012 and by April 1 of
2    each year thereafter, the Illinois Power Agency shall
3    submit an annual report to the General Assembly, the
4    Commission, and alternative retail electric suppliers that
5    shall include, but not be limited to:
6            (A) the total amount of alternative compliance
7        payments received in aggregate from alternative retail
8        electric suppliers by planning year for all previous
9        planning years in which the alternative compliance
10        payment was in effect;
11            (B) the amount of those payments utilized to
12        purchased renewable energy credits itemized by the
13        date of each procurement in which the payments were
14        utilized; and
15            (C) the unused and remaining balance in the Agency
16        Renewable Energy Resources Fund attributable to those
17        payments.
18        (4.5) Beginning with the delivery year commencing June
19    1, 2017, all alternative compliance payments by
20    alternative retail electric suppliers shall be remitted to
21    the applicable electric utility. To facilitate this
22    remittance, each electric utility shall file a tariff with
23    the Commission no later than 30 days following the
24    effective date of this amendatory Act of the 99th General
25    Assembly, which the Commission shall approve, after notice
26    and hearing, no later than 45 days after its filing. The

 

 

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1    Illinois Power Agency shall use such payments to increase
2    the amount of renewable energy resources otherwise to be
3    procured under subsection (c) of Section 1-75 of the
4    Illinois Power Agency Act.
5        (5) The Commission, in consultation with the Illinois
6    Power Agency, shall establish a process or proceeding to
7    consider the impact of a federal renewable portfolio
8    standard, if enacted, on the operation of the alternative
9    compliance mechanism, which shall include, but not be
10    limited to, developing, to the extent permitted by the
11    applicable federal statute, an appropriate methodology to
12    apportion renewable energy credits retired as a result of
13    alternative compliance payments made in accordance with
14    this Section. The Commission shall commence any such
15    process or proceeding within 35 days after enactment of a
16    federal renewable portfolio standard.
17    (e) Each alternative retail electric supplier shall, by
18September 1, 2010 and by September 1 of each year thereafter,
19prepare and submit to the Commission a report, in a format to
20be specified by the Commission, that provides information
21certifying compliance by the alternative retail electric
22supplier with this Section, including copies of all PJM-GATS
23and M-RETS reports, and documentation relating to banking,
24retiring renewable energy credits, and any other information
25that the Commission determines necessary to ensure compliance
26with this Section.

 

 

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1    An alternative retail electric supplier may file
2commercially or financially sensitive information or trade
3secrets with the Commission as provided under the rules of the
4Commission. To be filed confidentially, the information shall
5be accompanied by an affidavit that sets forth both the reasons
6for the confidentiality and a public synopsis of the
7information.
8    (f) The Commission may initiate a contested case to review
9allegations that the alternative retail electric supplier has
10violated this Section, including an order issued or rule
11promulgated under this Section. In any such proceeding, the
12alternative retail electric supplier shall have the burden of
13proof. If the Commission finds, after notice and hearing, that
14an alternative retail electric supplier has violated this
15Section, then the Commission shall issue an order requiring the
16alternative 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

 

 

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1with the renewable energy resource portfolio requirement in
2this Section more than once in a 5-year period, then the
3Commission shall revoke the alternative electric supplier's
4certificate of service authority. The Commission shall not
5accept an application for a certificate of service authority
6from an alternative retail electric supplier that has lost
7certification under this subsection (f), or any corporate
8affiliate thereof, for at least one year after the date of
9revocation.
10    (g) All of the provisions of this Section apply to electric
11utilities operating outside their service area except under
12item (2) of subsection (a) of this Section the quantity of
13renewable energy resources shall be measured as a percentage of
14the actual amount of electricity (megawatt-hours) supplied in
15the State outside of the utility's service territory during the
1612-month period June 1 through May 31, commencing June 1, 2009,
17and the comparable 12-month period in each year thereafter
18except as provided in item (6) of subsection (a) of this
19Section.
20    If any such utility fails to procure the requisite quantity
21of renewable energy resources by the annual deadline, then the
22Commission shall require the utility to double the alternative
23compliance payment that would otherwise be required to bring
24the utility into compliance with this Section.
25    If any such utility fails to comply with the renewable
26energy resource portfolio requirement in this Section more than

 

 

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1once in a 5-year period, then the Commission shall order the
2utility to cease all sales outside of the utility's service
3territory for a period of at least one year.
4    (h) The provisions of this Section and the provisions of
5subsection (d) of Section 16-115 of this Act relating to
6procurement of renewable energy resources, and the provisions
7of paragraph (6) of subsection (c) of Section 1-75 of the
8Illinois Power Agency Act relating to the payments by retail
9customers of a utility for the purpose of recovering the
10utility's costs for procuring renewable energy credits, shall
11not apply to an alternative retail electric supplier, or the
12retail customers of an alternative retail electric supplier,
13that operates a combined heat and power system in this State or
14that has a corporate affiliate that operates such a combined
15heat and power system in this State that supplies electricity
16primarily to or for the benefit of: (i) facilities owned by the
17supplier, its subsidiary, or other corporate affiliate; (ii)
18facilities electrically integrated with the electrical system
19of facilities owned by the supplier, its subsidiary, or other
20corporate affiliate; or (iii) facilities that are adjacent to
21the site on which the combined heat and power system is
22located.
23    (i) The obligations of alternative retail electric
24suppliers and electric utilities operating outside their
25service territories to procure renewable energy resources,
26make alternative compliance payments, and file annual reports,

 

 

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1and the obligations of the Commission to determine and post
2alternative compliance payment rates, shall terminate after
3May 31, 2019, provided that alternative retail electric
4suppliers and electric utilities operating outside their
5service territories shall be obligated to make all alternative
6compliance payments that they were obligated to pay for periods
7through and including May 31, 2019, but were not paid as of
8that date. The Commission shall continue to enforce the payment
9of unpaid alternative compliance payments in accordance with
10subsections (f) and (g) of this Section. All alternative
11compliance payments made after May 31, 2016 shall be remitted
12to the applicable electric utility and used to purchase
13renewable energy credits, in accordance with Section 1-75 of
14the Illinois Power Agency Act.
15    This subsection (i) is intended to accommodate the
16transition to the procurement of renewable energy resources for
17all retail customers in the amounts specified under subsection
18(c) of Section 1-75 of the Illinois Power Agency Act and
19Section 16-111.5 of this Act, including but not limited to the
20transition to a single charge applicable to all retail
21customers to recover the costs of these resources. Each
22alternative retail electric supplier shall certify in its
23annual reports filed pursuant to subsection (e) of this Section
24after May 31, 2019, that its retail customers are not paying
25the costs of alternative compliance payments or renewable
26energy resources that the alternative retail electric supplier

 

 

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1is not required to remit or purchase under this Section. The
2Commission shall have the authority to initiate an emergency
3rulemaking to adopt rules regarding such certification.
4(Source: P.A. 99-906, eff. 6-1-17.)
 
5    Section 95. No acceleration or delay. Where this Act makes
6changes in a statute that is represented in this Act by text
7that is not yet or no longer in effect (for example, a Section
8represented by multiple versions), the use of that text does
9not accelerate or delay the taking effect of (i) the changes
10made by this Act or (ii) provisions derived from any other
11Public Act.