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.