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HB4116 |
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LRB095 12580 MJR 37825 b |
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| (5) maintain confidentiality as to the identity of the |
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| bidders, with the exception of the disclosure required by |
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| subsection (g) of this Section, and preserve the |
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| confidentiality of all supplier and bidding information in |
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| a manner consistent with all applicable laws, rules, |
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| regulations and tariffs; |
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| (6) submit a confidential report to the Commission for |
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| approval of the results; |
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| (7) notify the utility of contract counterparts and |
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| contract specifics; and |
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| (8) administer related contingency procurement events. |
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| (c) The Procurement Monitor, who shall be retained by the |
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| Commission, shall: |
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| (1) oversee all interactions among the Procurement |
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| Administrator, suppliers, and utility; |
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| (2) monitor and report to the Commission on the |
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| progress of the procurement process; |
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| (3) provide an independent confidential report to the |
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| Commission regarding the results of the procurement event; |
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| (4) ensure compliance with the procurement plan |
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| approved by the Commission; and |
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| (5) maintain confidentiality as to the identity of the |
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| bidders, with the exception of the disclosure required by |
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| subsection (g) of this Section, and preserve the |
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| confidentiality of all supplier and bidding information in |
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| a manner consistent with all applicable laws, rules, |
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HB4116 |
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LRB095 12580 MJR 37825 b |
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| regulations, and tariffs.
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| (d) The fees of the Procurement Administrator and |
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| Procurement Monitor shall be paid through fees assessed to the |
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| bidders. The Commission may adopt rules, as provided for in |
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| this Section, that establish the criteria to be used in |
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| selecting the independent Procurement Monitor and Procurement |
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| Administrator, and other procedures related to hiring and |
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| payment. |
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| (e) The Procurement Administrator shall design and issue a |
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| request-for-proposal that shall be approved by the Commission. |
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| The Administrator shall set forth a procedure for sealed, |
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| binding commitment bidding with pay-as-bid settlement, and |
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| provision for selection of bids on the basis of price and in |
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| accordance with the price benchmark established. |
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| (f) The Procurement Administrator, in consultation with |
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| the Procurement Monitor, shall establish a price benchmark |
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| applicable to the products purchased in accordance with a |
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| procurement plan approved under this Section that are |
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| consistent with the following criteria: |
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| (1) The price benchmark shall incorporate forward |
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| market price data for identical products for the same |
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| delivery period and at the same delivery point; if |
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| identical product transactions are not available, the |
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| Procurement Administrator may recommend other criteria to |
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| consider in making a determination to accept or reject bids |
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| in its confidential report to the Commission. |
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HB4116 |
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LRB095 12580 MJR 37825 b |
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| (2) The price benchmark may consist of a range of |
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| prices based on a variety of publicly available data |
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| sources that have been approved for this use by the |
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| Commission. |
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| (3) The price benchmark may be adjusted to take into |
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| account specific differences between transaction data |
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| observed in public data sources and the procurement of |
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| products for Illinois utilities, including adjustments to |
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| account for the difference in counterpart credit risk.
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| (g) Within 2 business days following a procurement event, |
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| the Procurement Administrator shall submit a confidential |
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| report to the Commission that shall contain the results of the |
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| bidding for each of the products along with the Administrator's |
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| recommendation for the acceptance and rejection of bids based |
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| on the price benchmark criteria and other factors observed in |
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| the process. The Procurement Monitor also shall submit a |
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| confidential report to the Commission within 2 business days |
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| following a procurement event that shall contain the Monitor's |
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| assessment of bidder behavior in the process as well as an |
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| assessment of the Procurement Administrator's compliance with |
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| the procurement process and rules. The Commission shall review |
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| the confidential reports submitted by the Procurement |
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| Administrator and Procurement Monitor, and shall accept or |
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| reject the recommendations of the Procurement Administrator |
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| within 2 business days after receipt of the reports. |
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| (h) The Commission shall have 5 business days after |
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HB4116 |
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LRB095 12580 MJR 37825 b |
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| receiving the report of the request-for-proposal procurement |
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| process from the Administrator and from the Monitor, to review |
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| and rule on the results of the request-for-proposal process. |
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| The Commission shall do one of the following: |
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| (1) approve the results of the procurement process in |
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| whole; |
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| (2) approve the results of the procurement process in |
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| part, and disapprove in part; and |
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| (3) if more than 50% of the contracts resulted in a 10% |
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| increase above the established benchmarks, disapprove the |
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| entire request-for-proposal, and order another round of |
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| request-for-proposal procurement process. |
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| If the Commission disapproves in part, the |
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| request-for-proposal procurement process, then the Procurement |
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| Administrator shall be allowed to directly negotiate with |
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| bidders to obtain the remaining percentage necessary to meet |
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| the utility's load requirements. The Procurement Monitor shall |
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| monitor all of the negotiations. |
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| The Commission may allow up to 10% above the established |
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| benchmarks to provide for a small-risk premium that may result |
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| from such impacting events such as weather, supply, and demand. |
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| (i) Within 5 business days after the Commission's decision |
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| to approve the results of a procurement event, the utility |
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| shall enter into binding contractual arrangements with the |
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| winning suppliers using the standard form contracts; provided, |
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| however, that the utility shall not be required either directly |
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HB4116 |
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LRB095 12580 MJR 37825 b |
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| or indirectly to execute the contracts if a tariff has not been |
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| approved and placed into effect for the utility. |
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| (j) The utility shall file its proposed tariffs with the |
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| Commission through which its costs of procuring power for the |
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| applicable customer classes that are incurred pursuant to a |
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| Commission-approved procurement event will be recovered. The |
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| tariffs shall include a formula rate or charge designed to pass |
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| through both the costs incurred by the utility in procuring a |
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| supply of electric power and energy for the applicable customer |
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| classes with no mark-up or return on the price paid by the |
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| utility for such supply, plus any just and reasonable costs |
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| that the utility incurs in arranging and providing for the |
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| supply of electric power and energy. The formula rate or charge |
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| shall also contain provisions that ensure that its application |
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| does not result in over or under recovery due to changes in |
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| customer usage and demand patterns, and that provide for the |
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| correction, on at least an annual basis, of any accounting |
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| errors that may occur. A utility shall recover through the |
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| tariff all its wholesale costs of purchasing power and energy |
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| and also those ongoing costs of procuring electric supply for |
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| which it contracted before the effective date of this |
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| amendatory Act of the 95th General Assembly in conjunction with |
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| the provision of full requirements service under fixed price |
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| bundled service tariffs. All such costs shall be deemed to have |
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| been prudently incurred. The pass-through tariffs that are |
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| filed and approved pursuant to this Section shall not be |
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HB4116 |
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LRB095 12580 MJR 37825 b |
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| subject to review under or in any way limited by subsection (i) |
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| of Section 16-111 of this Act. |
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| (k) If the prices of the request-for-proposal procurement |
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| process results in an increase in electric rates of more than |
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| 10%, then the utilities shall be required to give written |
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| notification to the public at least 60 days prior to the |
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| increase taking effect. The criteria for the written |
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| notification shall be determined by the Commission, and the |
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| utility shall issue the notification according to those |
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| criteria.
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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