Public Act 099-0332
 
SB1446 EnrolledLRB099 10192 AMC 30416 b


  
    AN ACT concerning utilities.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
 
    Section 5. The Public Utilities Act is amended  by changing 
Sections 16-115 and 19-110 as follows:
 


    (220 ILCS 5/16-115)



    Sec. 16-115. Certification of alternative retail
electric 
suppliers.
    (a) Any alternative retail electric supplier must obtain
a 
certificate of service authority from the Commission in

accordance with this Section before serving any retail
customer 
or other user located in this State.  An alternative
retail 
electric supplier may request, and the Commission may
grant, a 
certificate of service authority for the entire State
or for a 
specified geographic area of the State.

    (b) An alternative retail electric supplier seeking a

certificate of service authority shall file with the
Commission 
a verified application containing information
showing that the 
applicant meets the requirements of this
Section.  The 
alternative retail electric supplier shall
publish notice of 
its application in the official State
newspaper within 10 days 
following the date of its filing.  No
later than 45 days after 
the application is properly filed
with the Commission, and such 
notice is published, the
Commission shall issue its order 
granting or denying the
application.

    (c) An application for a certificate of service
authority 
shall identify the area or areas in which the
applicant intends 
to offer service and the types of services
it intends to offer.  
Applicants that seek to serve
residential or small commercial 
retail customers within a
geographic area that is smaller than 
an electric utility's
service area shall submit evidence 
demonstrating that the
designation of this smaller area does 
not violate Section 16-115A. An applicant
that seeks to serve 
residential or small
commercial retail customers may state in 
its application for
certification any limitations that will be 
imposed on the
number of customers or maximum load to be 
served.

    (d) The Commission shall grant the application for a

certificate of service authority if it makes the findings set

forth in this subsection
based on the verified
application and 
such other information as the applicant may
submit:


        (1) That the applicant possesses sufficient
technical, 
    financial and managerial resources and
abilities to 
    provide the service for which it seeks a
certificate of 
    service authority.  In determining the
level of technical, 
    financial and managerial resources
and abilities which the 
    applicant must demonstrate, the
Commission shall consider 
    (i) the characteristics,
including the size and financial 
    sophistication, of the
customers that the applicant seeks 
    to serve, and (ii)
whether the applicant seeks to provide 
    electric power and
energy using property, plant and 
    equipment which it owns,
controls or operates;


        (2) That the applicant will comply with all
applicable 
    federal, State, regional and industry rules,
policies, 
    practices and procedures for the use,
operation, and 
    maintenance of the safety, integrity and
reliability, of 
    the interconnected electric transmission
system;


        (3) That the applicant will only provide service to

    retail customers in an electric utility's service area
that 
    are eligible to take delivery services under this
Act;


        (4) That the applicant will comply with such

    informational or reporting requirements as the Commission

    may by rule establish and provide the information required 
    by Section 16-112.
Any data related to
contracts for the 
    purchase and sale of electric power and
energy shall be 
    made available for review by the Staff of
the Commission on 
    a confidential and proprietary basis
and only to the extent 
    and for the purposes which the
Commission determines are 
    reasonably necessary in order
to carry out the purposes of 
    this Act;


        (5) That the applicant will procure renewable energy 
    resources in accordance with Section 16-115D of this Act, 
    and will source electricity from clean coal facilities, as 
    defined in Section 1-10 of the Illinois Power Agency Act, 
    in amounts at least equal to the percentages set forth in 
    subsections (c) and (d) of Section 1-75 of the Illinois 
    Power Agency Act.  For purposes of this Section: 

            (i) (Blank);
            (ii) (Blank);
            (iii) the required sourcing of electricity 
        generated by clean coal facilities, other than the 
        initial clean coal facility, shall be limited to the 
        amount of electricity that can be procured or sourced 
        at a price at or below the benchmarks approved by the 
        Commission each year in accordance with item (1) of 
        subsection (c) and items (1) and (5)  of subsection (d) 
        of Section 1-75 of the Illinois Power Agency Act;
            (iv) all alternative retail electric suppliers 
        shall execute a sourcing agreement to source 
        electricity from the initial clean coal facility, on 
        the terms set forth in paragraphs (3) and (4) of 
        subsection (d) of Section 1-75 of the Illinois Power 
        Agency Act, except that in lieu of the requirements in 
        subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of 
        paragraph (3)  of that subsection (d), the applicant 
        shall execute one or more of the following:
                (1) if the sourcing agreement is a power 
            purchase agreement, a contract with the initial 
            clean coal facility to purchase in each hour an 
            amount of electricity equal to all clean coal 
            energy made available from the initial clean coal 
            facility during such hour, which the utilities are 
            not required to procure under the terms of 
            subsection (d) of Section 1-75 of the Illinois 
            Power Agency Act, multiplied by a fraction, the 
            numerator of which is the alternative retail 
            electric supplier's retail market sales of 
            electricity (expressed in kilowatthours sold) in 
            the State during the prior calendar month and the 
            denominator of which is the total sales of 
            electricity (expressed in kilowatthours sold) in 
            the State by alternative retail electric suppliers 
            during such prior month that are subject to the 
            requirements of this paragraph (5) of subsection 
            (d) of this Section and subsection (d) of Section 
            1-75 of the Illinois Power Agency Act plus the 
            total  sales of electricity (expressed in 
            kilowatthours sold) by utilities outside of their 
            service areas during such prior month, pursuant to 
            subsection (c) of Section 16-116 of this Act; or
                (2) if the sourcing agreement is a contract for 
            differences, a contract with the initial clean 
            coal facility in each hour with respect to an 
            amount of electricity equal to all clean coal 
            energy made available from the initial clean coal 
            facility during such hour,  which the utilities are 
            not required to procure under the terms of 
            subsection (d) of Section 1-75 of the Illinois 
            Power Agency Act, multiplied by a fraction, the 
            numerator of which is the alternative retail 
            electric supplier's retail market sales of 
            electricity (expressed in kilowatthours sold) in 
            the State during the prior calendar month and the 
            denominator of which is the total sales of 
            electricity (expressed in kilowatthours sold) in 
            the State by alternative retail electric suppliers 
            during such prior month that are subject to the 
            requirements of this paragraph (5) of subsection 
            (d) of this Section and subsection (d) of Section 
            1-75 of the Illinois Power Agency Act plus  the 
            total  sales of electricity (expressed in 
            kilowatthours sold) by utilities outside of their 
            service areas during such prior month, pursuant to 
            subsection (c) of Section 16-116 of this Act; 
            (v)  if, in any year after the first year of 
        commercial operation, the owner of the clean coal 
        facility fails to demonstrate  to the Commission that 
        the initial clean coal facility captured and 
        sequestered at least 50% of the total carbon emissions 
        that the facility would otherwise emit or that 
        sequestration of emissions from prior years has 
        failed, resulting in the release of carbon into the 
        atmosphere, the owner of the facility must offset 
        excess emissions.  Any such carbon offsets must be 
        permanent, additional, verifiable, real, located 
        within the State of Illinois, and legally and 
        practicably enforceable.  The costs of any such offsets 
        that are not recoverable shall not exceed $15 million 
        in any given year.  No costs of any such purchases of 
        carbon offsets may be recovered from an alternative 
        retail electric supplier or its customers.  All carbon 
        offsets purchased for this purpose and any carbon 
        emission credits associated with sequestration of 
        carbon from the facility must be permanently retired.  
        The initial clean coal facility shall not forfeit its 
        designation as a clean coal facility if the facility 
        fails to fully comply with the applicable carbon 
        sequestration requirements in any given year, provided 
        the requisite offsets are purchased.  However, the 
        Attorney General, on behalf of the People of the State 
        of Illinois, may specifically enforce the facility's 
        sequestration requirement and the other terms of this 
        contract provision. Compliance with the sequestration 
        requirements and offset purchase requirements that 
        apply to the initial clean coal facility shall be 
        reviewed annually by an independent expert retained by 
        the owner of the initial clean coal facility, with the 
        advance written approval of the Attorney General;
            (vi) The Commission shall, after notice and 
        hearing, revoke the certification of any alternative 
        retail electric supplier that fails to execute a 
        sourcing agreement with the initial clean coal 
        facility as required by item (5) of subsection (d) of 
        this Section. The sourcing agreements with this 
        initial clean coal facility shall be subject to both 
        approval of the initial clean coal facility by the 
        General Assembly and satisfaction of the requirements 
        of item (4) of subsection (d) of Section 1-75 of the 
        Illinois Power Agency Act, and shall be executed within 
        90 days after any such approval by the General 
        Assembly. The Commission shall not accept an 
        application for certification from an alternative 
        retail electric supplier that has lost certification 
        under this subsection (d), or any corporate affiliate 
        thereof, for at least one year from the date of 
        revocation; 

        (6) With respect to an applicant that seeks to serve

    residential or small commercial retail customers, that
the 
    area to be served by the applicant and any
limitations it 
    proposes on the number of customers or
maximum amount of 
    load to be served meet the provisions
of Section 16-115A, 
    provided, that the Commission can
extend the time for 
    considering such a certificate
request by up to 90 days, 
    and can schedule hearings on
such a request;


        (7) That the applicant meets the requirements of 
    subsection (a) of Section
16-128; and


        (8) That the applicant will comply with all other

    applicable laws and regulations.

    (d-5)  (Blank). 
    (e) A retail customer that owns a cogeneration or 
self-generation facility
and that seeks certification only to

provide electric power and energy from such facility to
retail 
customers at separate locations which customers are
both (i) 
owned by, or a subsidiary or other corporate
affiliate of, such 
applicant and
(ii) eligible for delivery services, shall be 
granted a
certificate of service authority upon filing an 
application
and notifying the Commission that it has entered 
into an
agreement with the relevant electric utilities pursuant 
to
Section 16-118.
Provided, however, that if the retail 
customer owning such cogeneration or
self-generation facility 
would not be charged a transition charge due to the
exemption 
provided under subsection (f) of Section 16-108 prior to the

certification, and the retail customers at separate locations 
are taking
delivery services in conjunction with purchasing 
power and energy from the
facility, the retail customer on 
whose premises the facility is located shall
not thereafter be 
required to pay transition charges on the power and energy
that 
such retail customer takes from the facility.

    (f) The Commission shall have the authority to
promulgate 
rules and regulations to carry out the provisions
of this 
Section.  On or before May 1, 1999, the Commission
shall adopt a 
rule or rules applicable to the certification of
those 
alternative retail electric suppliers that seek to serve
only 
nonresidential retail customers with maximum electrical

demands of one megawatt or more which shall provide for (i)

expedited and streamlined procedures
for certification of such 
alternative
retail electric suppliers and (ii) specific 
criteria which,
if met by any such alternative retail electric 
supplier, shall
constitute the demonstration of technical, 
financial and
managerial resources and abilities to provide 
service required
by subsection (d) (1) of this Section, such as 
a requirement
to post a bond or letter of credit, from a 
responsible surety
or financial institution, of sufficient 
size for the nature
and scope of the services to be provided; 
demonstration of
adequate insurance for the scope and nature of 
the services to
be provided; and experience in providing 
similar services in
other jurisdictions.

    (g) An alternative retail electric supplier may seek 
confidential treatment for the following information by filing 
an affidavit with the Commission so long as the affidavit meets 
the requirements in this subsection (g):
        (1) the total annual kilowatt-hours delivered and sold 
    by an alternative retail electric supplier to retail 
    customers within each utility service territory and the 
    total annual kilowatt-hours delivered and sold by an 
    alternative retail electric supplier to retail customers 
    in all utility service territories in the preceding 
    calendar year as required by 83 Ill. Adm. Code 451.770;
        (2) the total peak demand supplied by an alternative 
    retail electric supplier during the previous year in each 
    utility service territory as required by 83 Ill. Adm. Code 
    465.40;
        (3) a good faith estimate of the amount an alternative 
    retail electric supplier expects to be obliged to pay the 
    utility under single billing tariffs during the next 12 
    months and the amount of any bond or letter of credit used 
    to demonstrate an alternative retail electric supplier's 
    credit worthiness to provide single billing services 
    pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
    The affidavit must be filed contemporaneously with the 
information for which confidential treatment is sought and  must 
clearly state that the affiant seeks confidential treatment 
pursuant to this subsection (g) and the information for which 
confidential treatment is sought must be clearly identified on 
the confidential version of the document filed with the 
Commission. The affidavit must be accompanied by  a 
"confidential" and a "public" version of the document or 
documents containing the information for which confidential 
treatment is sought.
    If the alternative retail electric supplier has met the 
affidavit requirements of this subsection (g), then the 
Commission shall afford confidential treatment to the 
information identified in the affidavit for a period of 2 years 
after the date the affidavit is received by the Commission.
    Nothing in this subsection (g) prevents an alternative 
retail electric supplier from filing a petition with the 
Commission seeking confidential treatment for information 
beyond that identified in this subsection (g) or for 
information contained in other reports or documents filed with 
the Commission.
    Nothing in this subsection (g) prevents the  Commission, on 
its own motion, or any party from filing a formal petition with 
the Commission seeking to reconsider the conferring of 
confidential status on an item of information afforded 
confidential treatment pursuant to this subsection (g).
    The Commission, on its own motion, may at any time initiate 
a docketed proceeding to investigate the continued 
applicability of this subsection (g) to the information 
contained in items (i), (ii), and (iii) of this subsection (g).  
If, at the end of such investigation, the Commission determines 
that a particular item of information should no longer be 
eligible for the affidavit-based process outlined in this 
subsection (g), the Commission may enter an order to remove 
that item from the list of items eligible for the process set 
forth in this subsection (g).   Notwithstanding any such order, 
in the event the Commission makes such a determination, nothing 
in this subsection (g) prevents an alternative retail electric 
supplier desiring confidential treatment for such information 
from filing a formal petition with the Commission seeking 
confidential treatment for such information.
(Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09; 
96-159, eff. 8-10-09.)

 



    (220 ILCS 5/19-110)



    Sec. 19-110. Certification of alternative gas suppliers. 

    (a) The provisions of this Section shall apply only to 
alternative gas
suppliers
serving or seeking to serve 
residential or small commercial customers and
only to the 
extent such
alternative gas suppliers provide services to 
residential or small
commercial customers.

    (b) An alternative gas supplier must obtain a certificate 
of service
authority from the Commission in accordance with 
this Section before serving
any customer or other user located 
in this State.  An alternative gas supplier
may request, and the 
Commission may grant, a certificate of service authority
for 
the entire State or for a specified geographic area of the 
State.  A
person, corporation, or other entity acting as an 
alternative gas supplier on
the effective date of this 
amendatory Act of the 92nd General Assembly shall
have 180 days 
from the effective date of this amendatory Act of the 92nd

General Assembly to comply with the requirements of this 
Section in order to
continue to operate as an alternative gas 
supplier.

    (c) An alternative gas supplier seeking a certificate of 
service authority
shall
file with the Commission a verified 
application containing information showing
that the
applicant 
meets the requirements of this Section.  The alternative gas 
supplier
shall
publish notice of its application in the 
official State newspaper within 10
days following
the date of 
its filing.  No later than 45 days after the application is

properly filed with the
Commission, and such notice is 
published, the Commission shall issue its order
granting or 
denying the application.

    (d) An application for a certificate of service authority 
shall identify the
area or
areas in which the applicant intends 
to offer service and the types of services
it intends
to offer.  
Applicants that seek to serve residential or small commercial

customers within a
geographic area that is smaller than a gas 
utility's service area shall submit
evidence demonstrating 
that the designation of this smaller area does not
violate 
Section 19-115.  An
applicant may
state in its application for 
certification any limitations that will be imposed
on the 
number
of customers or maximum load to be served. The applicant 
shall submit as part of its application a statement indicating: 

        (1) Whether the applicant has been denied a natural gas 
    supplier license in any state in the United States.
        (2) Whether the applicant has had a natural gas 
    supplier license suspended or revoked by any state in the 
    United States.
        (3) Where, if any, other natural gas supplier license 
    applications are pending in the United States.
        (4) Whether the applicant is the subject of any 
    lawsuits filed in a court of law or formal complaints filed 
    with a regulatory agency alleging fraud, deception or 
    unfair marketing practices, or other similar allegations, 
    identifying the name, case number, and jurisdiction of each 
    such lawsuit or complaint.
    For the purposes of this subsection (d), formal complaints 
include only those complaints that seek a binding determination 
from a state or federal regulatory body. 
    (e) The Commission shall grant the application for a 
certificate of service
authority if it makes the findings set 
forth in this subsection based on the
verified
application and 
such other information as the applicant may submit.


        (1) That the applicant possesses sufficient technical, 
    financial, and
managerial resources and abilities to 
    provide the service for which it
seeks a certificate of 
    service authority.  In determining the level of
technical, 
    financial, and managerial resources and abilities which 
    the
applicant must demonstrate, the Commission shall 
    consider:

            (A) the characteristics, including the size and 
        financial sophistication of the
customers that the 
        applicant seeks to serve;
            (B) whether the
applicant seeks to provide gas 
        using property, plant, and equipment that it
owns, 
        controls, or operates; and
            (C) the applicant's commitment of resources to the 
        management of sales and marketing staff, through 
        affirmative managerial policies, independent audits, 
        technology, hands-on field monitoring and training, 
        and, in the case of applicants who will have sales 
        personnel or sales agents within the State of Illinois, 
        the applicant's managerial presence within the State.


        (2) That the applicant will comply with all applicable 
    federal, State,
regional, and industry rules, policies, 
    practices, and procedures
for the use, operation, and 
    maintenance of the safety, integrity, and
reliability of 
    the gas transmission system.


        (3) That the applicant will comply with such 
    informational or reporting
requirements as the Commission 
    may by rule establish.


        (4) That
the area to be served by the applicant and any 
    limitations it proposes on the
number of customers or 
    maximum amount of load to be served meet the provisions
of 
    Section 19-115, provided, that if the applicant seeks to 
    serve an area
smaller than the service area of a gas 
    utility or proposes other limitations
on the number of 
    customers or maximum amount of load to be served, the

    Commission can extend the time for
considering such a 
    certificate request by up to 90 days, and can schedule

    hearings on such a request.


        (5) That the applicant and the applicant's sales agents 
    will comply with all other applicable laws and
rules.

    (f) The Commission can extend the time for considering such 
a certificate request by up to 90 days, and can schedule 
hearings on such a request if:
        (1) a party to the application proceeding has formally 
    requested that the Commission hold hearings in a pleading 
    that alleges that one or more of the allegations or 
    certifications in the application is false or misleading; 
    or
        (2) other facts or circumstances exist that will 
    necessitate additional time or evidence in order to 
    determine whether a certificate should be issued. 
    (g) The Commission shall have the authority to promulgate 
rules
to carry out the provisions of this Section.  Within 30 
days after the
effective date of this amendatory Act of the 
92nd General Assembly, the
Commission shall adopt an emergency 
rule or rules applicable to the
certification of those gas 
suppliers that seek to serve residential customers.
Within 180 
days of
the effective
date of this amendatory Act of the 92nd 
General Assembly, the Commission shall
adopt
rules that specify 
criteria which, if met by any such alternative gas
supplier, 
shall
constitute the demonstration of technical, financial, 
and managerial resources
and
abilities to provide service 
required by item (1) of subsection (e) of this
Section,
such as 
a
requirement to post a bond or letter of credit, from a 
responsible surety or
financial
institution, of sufficient 
size for the nature and scope of the services to be
provided,

demonstration of adequate insurance for the scope and nature of 
the services to
be
provided, and experience in providing 
similar services in other
jurisdictions.

    (h) The Commission may deny with prejudice any application 
that repeatedly fails to include the attachments, 
documentation, and affidavits required by the application form 
or that repeatedly fails to provide any other information 
required by this Section. 
    (i) An alternative gas supplier may seek confidential 
treatment for the reporting to the Commission of its total 
annual  dekatherms delivered and sold by it to residential and 
small commercial customers by utility service territory during 
the preceding year via the filing of an affidavit with the 
Commission so long as the affidavit meets the requirements of 
this subsection (i).
The affidavit must be filed 
contemporaneously with the information for which confidential 
treatment is sought and  must clearly state that the affiant 
seeks confidential treatment pursuant to this subsection (i) 
and the information for which confidential treatment is sought 
must be clearly identified on the confidential version of the 
document filed with the Commission. The affidavit must be 
accompanied by both a "confidential" and a "public" version of 
the document or documents containing the information for which 
confidential treatment is sought.
    If the alternative gas supplier has met the affidavit 
requirements of this subsection (i), then the Commission shall 
afford confidential treatment to the information identified in 
the affidavit for a period of 2 years after the date the 
affidavit is received by the Commission.
    Nothing in this subsection (i) prevents an alternative gas 
supplier from filing a petition with the Commission seeking 
confidential treatment for information beyond that identified 
in this subsection (i) or for information contained in other 
reports or documents filed with the Commission.
    Nothing in this subsection (i) prevents the Commission, on 
its own motion, or any party from filing a formal petition with 
the Commission seeking to reconsider the conferring of 
confidential status pursuant to this subsection (i).
    The Commission, on its own motion, may at any time initiate 
a docketed proceeding to investigate the continued 
applicability of this affidavit-based process for seeking 
confidential treatment.    If, at the end of such investigation, 
the Commission determines that this affidavit-based process 
for seeking confidential treatment for the information is no 
longer necessary, the Commission may enter an order to that 
effect.   Notwithstanding any such order, in the event the 
Commission makes such a determination, nothing in this 
subsection (i)  prevents an alternative gas supplier desiring 
confidential treatment for such information from filing a 
formal petition with the Commission seeking confidential 
treatment for such information.
(Source: P.A. 95-1051, eff. 4-10-09.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.