Sen. Don Harmon
Filed: 5/6/2010
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1 | AMENDMENT TO HOUSE BILL 6202
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2 | AMENDMENT NO. ______. Amend House Bill 6202, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Illinois Power Agency Act is amended by | ||||||
6 | changing Sections 1-56 and 1-75 as follows: | ||||||
7 | (20 ILCS 3855/1-56) | ||||||
8 | Sec. 1-56. Illinois Power Agency Renewable Energy | ||||||
9 | Resources Fund. | ||||||
10 | (a) The Illinois Power Agency Renewable Energy Resources | ||||||
11 | Fund is created as a special fund in the State treasury. | ||||||
12 | (b) The Illinois Power Agency Renewable Energy Resources | ||||||
13 | Fund shall be administered by the Agency to procure renewable | ||||||
14 | energy resources. Prior to June 1, 2011, resources procured | ||||||
15 | pursuant to this Section shall be procured from facilities | ||||||
16 | located in Illinois, provided the resources are available from |
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1 | those facilities. If resources are not available in Illinois, | ||||||
2 | then they shall be procured in states that adjoin Illinois. If | ||||||
3 | resources are not available in Illinois or in states that | ||||||
4 | adjoin Illinois, then they may be purchased elsewhere. | ||||||
5 | Beginning June 1, 2011, resources procured pursuant to this | ||||||
6 | Section shall be procured from facilities located in Illinois | ||||||
7 | or states that adjoin Illinois. If resources are not available | ||||||
8 | in Illinois or in states that adjoin Illinois, then they may be | ||||||
9 | procured elsewhere. To the extent available, at least 75% of | ||||||
10 | these renewable energy resources shall come from wind | ||||||
11 | generation . Of the renewable energy resources procured | ||||||
12 | pursuant to this Section at least the following specified | ||||||
13 | percentages shall come from photovoltaics on the following | ||||||
14 | schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by | ||||||
15 | June 1, 2014; and 6% by June 1, 2015 and thereafter and, | ||||||
16 | starting June 1, 2015, at least 6% of the renewable energy | ||||||
17 | resources used to meet these standards shall come from solar | ||||||
18 | photovoltaics . | ||||||
19 | (c) The Agency shall procure renewable energy resources at | ||||||
20 | least once each year in conjunction with a procurement event | ||||||
21 | for electric utilities required to comply with Section 1-75 of | ||||||
22 | the Act and shall, whenever possible, enter into long-term | ||||||
23 | contracts. | ||||||
24 | (d) The price paid to procure renewable energy credits | ||||||
25 | using monies from the Illinois Power Agency Renewable Energy | ||||||
26 | Resources Fund shall not exceed the winning bid prices paid for |
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1 | like resources procured for electric utilities required to | ||||||
2 | comply with Section 1-75 of this Act. | ||||||
3 | (e) All renewable energy credits procured using monies from | ||||||
4 | the Illinois Power Agency Renewable Energy Resources Fund shall | ||||||
5 | be permanently retired. | ||||||
6 | (f) The procurement process described in this Section is | ||||||
7 | exempt from the requirements of the Illinois Procurement Code, | ||||||
8 | pursuant to Section 20-10 of that Code. | ||||||
9 | (g) All disbursements from the Illinois Power Agency | ||||||
10 | Renewable Energy Resources Fund shall be made only upon | ||||||
11 | warrants of the Comptroller drawn upon the Treasurer as | ||||||
12 | custodian of the Fund upon vouchers signed by the Director or | ||||||
13 | by the person or persons designated by the Director for that | ||||||
14 | purpose. The Comptroller is authorized to draw the warrant upon | ||||||
15 | vouchers so signed. The Treasurer shall accept all warrants so | ||||||
16 | signed and shall be released from liability for all payments | ||||||
17 | made on those warrants. | ||||||
18 | (h) The Illinois Power Agency Renewable Energy Resources | ||||||
19 | Fund shall not be subject to sweeps, administrative charges, or | ||||||
20 | chargebacks, including, but not limited to, those authorized | ||||||
21 | under Section 8h of the State Finance Act, that would in any | ||||||
22 | way result in the transfer of any funds from this Fund to any | ||||||
23 | other fund of this State or in having any such funds utilized | ||||||
24 | for any purpose other than the express purposes set forth in | ||||||
25 | this Section.
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26 | (Source: P.A. 96-159, eff. 8-10-09.) |
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1 | (20 ILCS 3855/1-75) | ||||||
2 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
3 | and Procurement Bureau has the following duties and | ||||||
4 | responsibilities: | ||||||
5 | (a) The Planning and Procurement Bureau shall each | ||||||
6 | year, beginning in 2008, develop procurement plans and | ||||||
7 | conduct competitive procurement processes in accordance | ||||||
8 | with the requirements of Section 16-111.5 of the Public | ||||||
9 | Utilities Act for the eligible retail customers of electric | ||||||
10 | utilities that on December 31, 2005 provided electric | ||||||
11 | service to at least 100,000 customers in Illinois. For the | ||||||
12 | purposes of this Section, the term "eligible retail | ||||||
13 | customers" has the same definition as found in Section | ||||||
14 | 16-111.5(a) of the Public Utilities Act. | ||||||
15 | (1) The Agency shall each year, beginning in 2008, | ||||||
16 | as needed, issue a request for qualifications for | ||||||
17 | experts or expert consulting firms to develop the | ||||||
18 | procurement plans in accordance with Section 16-111.5 | ||||||
19 | of the Public Utilities Act. In order to qualify an | ||||||
20 | expert or expert consulting firm must have: | ||||||
21 | (A) direct previous experience assembling | ||||||
22 | large-scale power supply plans or portfolios for | ||||||
23 | end-use customers; | ||||||
24 | (B) an advanced degree in economics, | ||||||
25 | mathematics, engineering, risk management, or a |
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1 | related area of study; | ||||||
2 | (C) 10 years of experience in the electricity | ||||||
3 | sector, including managing supply risk; | ||||||
4 | (D) expertise in wholesale electricity market | ||||||
5 | rules, including those established by the Federal | ||||||
6 | Energy Regulatory Commission and regional | ||||||
7 | transmission organizations; | ||||||
8 | (E) expertise in credit protocols and | ||||||
9 | familiarity with contract protocols; | ||||||
10 | (F) adequate resources to perform and fulfill | ||||||
11 | the required functions and responsibilities; and | ||||||
12 | (G) the absence of a conflict of interest and | ||||||
13 | inappropriate bias for or against potential | ||||||
14 | bidders or the affected electric utilities. | ||||||
15 | (2) The Agency shall each year, as needed, issue a | ||||||
16 | request for qualifications for a procurement | ||||||
17 | administrator to conduct the competitive procurement | ||||||
18 | processes in accordance with Section 16-111.5 of the | ||||||
19 | Public Utilities Act. In order to qualify an expert or | ||||||
20 | expert consulting firm must have: | ||||||
21 | (A) direct previous experience administering a | ||||||
22 | large-scale competitive procurement process; | ||||||
23 | (B) an advanced degree in economics, | ||||||
24 | mathematics, engineering, or a related area of | ||||||
25 | study; | ||||||
26 | (C) 10 years of experience in the electricity |
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1 | sector, including risk management experience; | ||||||
2 | (D) expertise in wholesale electricity market | ||||||
3 | rules, including those established by the Federal | ||||||
4 | Energy Regulatory Commission and regional | ||||||
5 | transmission organizations; | ||||||
6 | (E) expertise in credit and contract | ||||||
7 | protocols; | ||||||
8 | (F) adequate resources to perform and fulfill | ||||||
9 | the required functions and responsibilities; and | ||||||
10 | (G) the absence of a conflict of interest and | ||||||
11 | inappropriate bias for or against potential | ||||||
12 | bidders or the affected electric utilities. | ||||||
13 | (3) The Agency shall provide affected utilities | ||||||
14 | and other interested parties with the lists of | ||||||
15 | qualified experts or expert consulting firms | ||||||
16 | identified through the request for qualifications | ||||||
17 | processes that are under consideration to develop the | ||||||
18 | procurement plans and to serve as the procurement | ||||||
19 | administrator. The Agency shall also provide each | ||||||
20 | qualified expert's or expert consulting firm's | ||||||
21 | response to the request for qualifications. All | ||||||
22 | information provided under this subparagraph shall | ||||||
23 | also be provided to the Commission. The Agency may | ||||||
24 | provide by rule for fees associated with supplying the | ||||||
25 | information to utilities and other interested parties. | ||||||
26 | These parties shall, within 5 business days, notify the |
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1 | Agency in writing if they object to any experts or | ||||||
2 | expert consulting firms on the lists. Objections shall | ||||||
3 | be based on: | ||||||
4 | (A) failure to satisfy qualification criteria; | ||||||
5 | (B) identification of a conflict of interest; | ||||||
6 | or | ||||||
7 | (C) evidence of inappropriate bias for or | ||||||
8 | against potential bidders or the affected | ||||||
9 | utilities. | ||||||
10 | The Agency shall remove experts or expert | ||||||
11 | consulting firms from the lists within 10 days if there | ||||||
12 | is a reasonable basis for an objection and provide the | ||||||
13 | updated lists to the affected utilities and other | ||||||
14 | interested parties. If the Agency fails to remove an | ||||||
15 | expert or expert consulting firm from a list, an | ||||||
16 | objecting party may seek review by the Commission | ||||||
17 | within 5 days thereafter by filing a petition, and the | ||||||
18 | Commission shall render a ruling on the petition within | ||||||
19 | 10 days. There is no right of appeal of the | ||||||
20 | Commission's ruling. | ||||||
21 | (4) The Agency shall issue requests for proposals | ||||||
22 | to the qualified experts or expert consulting firms to | ||||||
23 | develop a procurement plan for the affected utilities | ||||||
24 | and to serve as procurement administrator. | ||||||
25 | (5) The Agency shall select an expert or expert | ||||||
26 | consulting firm to develop procurement plans based on |
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1 | the proposals submitted and shall award one-year | ||||||
2 | contracts to those selected with an option for the | ||||||
3 | Agency for a one-year renewal. | ||||||
4 | (6) The Agency shall select an expert or expert | ||||||
5 | consulting firm, with approval of the Commission, to | ||||||
6 | serve as procurement administrator based on the | ||||||
7 | proposals submitted. If the Commission rejects, within | ||||||
8 | 5 days, the Agency's selection, the Agency shall submit | ||||||
9 | another recommendation within 3 days based on the | ||||||
10 | proposals submitted. The Agency shall award a one-year | ||||||
11 | contract to the expert or expert consulting firm so | ||||||
12 | selected with Commission approval with an option for | ||||||
13 | the Agency for a one-year renewal. | ||||||
14 | (b) The experts or expert consulting firms retained by | ||||||
15 | the Agency shall, as appropriate, prepare procurement | ||||||
16 | plans, and conduct a competitive procurement process as | ||||||
17 | prescribed in Section 16-111.5 of the Public Utilities Act, | ||||||
18 | to ensure adequate, reliable, affordable, efficient, and | ||||||
19 | environmentally sustainable electric service at the lowest | ||||||
20 | total cost over time, taking into account any benefits of | ||||||
21 | price stability, for eligible retail customers of electric | ||||||
22 | utilities that on December 31, 2005 provided electric | ||||||
23 | service to at least 100,000 customers in the State of | ||||||
24 | Illinois. | ||||||
25 | (c) Renewable portfolio standard. | ||||||
26 | (1) The procurement plans shall include |
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1 | cost-effective renewable energy resources. A minimum | ||||||
2 | percentage of each utility's total supply to serve the | ||||||
3 | load of eligible retail customers, as defined in | ||||||
4 | Section 16-111.5(a) of the Public Utilities Act, | ||||||
5 | procured for each of the following years shall be | ||||||
6 | generated from cost-effective renewable energy | ||||||
7 | resources: at least 2% by June 1, 2008; at least 4% by | ||||||
8 | June 1, 2009; at least 5% by June 1, 2010; at least 6% | ||||||
9 | by June 1, 2011; at least 7% by June 1, 2012; at least | ||||||
10 | 8% by June 1, 2013; at least 9% by June 1, 2014; at | ||||||
11 | least 10% by June 1, 2015; and increasing by at least | ||||||
12 | 1.5% each year thereafter to at least 25% by June 1, | ||||||
13 | 2025. To the extent that it is available, at least 75% | ||||||
14 | of the renewable energy resources used to meet these | ||||||
15 | standards shall come from wind generation and, | ||||||
16 | beginning on June 1, 2011 2015 , at least the following | ||||||
17 | percentages 6% of the renewable energy resources used | ||||||
18 | to meet these standards shall come from photovoltaics | ||||||
19 | on the following schedule: 0.5% by June 1, 2012, 1.5% | ||||||
20 | by June 1, 2013; 3% by June 1, 2014; and 6% by June 1, | ||||||
21 | 2015 and thereafter . For purposes of this subsection | ||||||
22 | (c), "cost-effective" means that the costs of | ||||||
23 | procuring renewable energy resources do not cause the | ||||||
24 | limit stated in paragraph (2) of this subsection (c) to | ||||||
25 | be exceeded and do not exceed benchmarks based on | ||||||
26 | market prices for renewable energy resources in the |
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1 | region, which shall be developed by the procurement | ||||||
2 | administrator, in consultation with the Commission | ||||||
3 | staff, Agency staff, and the procurement monitor and | ||||||
4 | shall be subject to Commission review and approval. | ||||||
5 | (2) For purposes of this subsection (c), the | ||||||
6 | required procurement of cost-effective renewable | ||||||
7 | energy resources for a particular year shall be | ||||||
8 | measured as a percentage of the actual amount of | ||||||
9 | electricity (megawatt-hours) supplied by the electric | ||||||
10 | utility to eligible retail customers in the planning | ||||||
11 | year ending immediately prior to the procurement. For | ||||||
12 | purposes of this subsection (c), the amount paid per | ||||||
13 | kilowatthour means the total amount paid for electric | ||||||
14 | service expressed on a per kilowatthour basis. For | ||||||
15 | purposes of this subsection (c), the total amount paid | ||||||
16 | for electric service includes without limitation | ||||||
17 | amounts paid for supply, transmission, distribution, | ||||||
18 | surcharges, and add-on taxes. | ||||||
19 | Notwithstanding the requirements of this | ||||||
20 | subsection (c), the total of renewable energy | ||||||
21 | resources procured pursuant to the procurement plan | ||||||
22 | for any single year shall be reduced by an amount | ||||||
23 | necessary to limit the annual estimated average net | ||||||
24 | increase due to the costs of these resources included | ||||||
25 | in the amounts paid by eligible retail customers in | ||||||
26 | connection with electric service to: |
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1 | (A) in 2008, no more than 0.5% of the amount | ||||||
2 | paid per kilowatthour by those customers during | ||||||
3 | the year ending May 31, 2007; | ||||||
4 | (B) in 2009, the greater of an additional 0.5% | ||||||
5 | of the amount paid per kilowatthour by those | ||||||
6 | customers during the year ending May 31, 2008 or 1% | ||||||
7 | of the amount paid per kilowatthour by those | ||||||
8 | customers during the year ending May 31, 2007; | ||||||
9 | (C) in 2010, the greater of an additional 0.5% | ||||||
10 | of the amount paid per kilowatthour by those | ||||||
11 | customers during the year ending May 31, 2009 or | ||||||
12 | 1.5% of the amount paid per kilowatthour by those | ||||||
13 | customers during the year ending May 31, 2007; | ||||||
14 | (D) in 2011, the greater of an additional 0.5% | ||||||
15 | of the amount paid per kilowatthour by those | ||||||
16 | customers during the year ending May 31, 2010 or 2% | ||||||
17 | of the amount paid per kilowatthour by those | ||||||
18 | customers during the year ending May 31, 2007; and | ||||||
19 | (E) thereafter, the amount of renewable energy | ||||||
20 | resources procured pursuant to the procurement | ||||||
21 | plan for any single year shall be reduced by an | ||||||
22 | amount necessary to limit the estimated average | ||||||
23 | net increase due to the cost of these resources | ||||||
24 | included in the amounts paid by eligible retail | ||||||
25 | customers in connection with electric service to | ||||||
26 | no more than the greater of 2.015% of the amount |
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1 | paid per kilowatthour by those customers during | ||||||
2 | the year ending May 31, 2007 or the incremental | ||||||
3 | amount per kilowatthour paid for these resources | ||||||
4 | in 2011. | ||||||
5 | No later than June 30, 2011, the Commission shall | ||||||
6 | review the limitation on the amount of renewable energy | ||||||
7 | resources procured pursuant to this subsection (c) and | ||||||
8 | report to the General Assembly its findings as to | ||||||
9 | whether that limitation unduly constrains the | ||||||
10 | procurement of cost-effective renewable energy | ||||||
11 | resources. | ||||||
12 | (3) Through June 1, 2011, renewable energy | ||||||
13 | resources shall be counted for the purpose of meeting | ||||||
14 | the renewable energy standards set forth in paragraph | ||||||
15 | (1) of this subsection (c) only if they are generated | ||||||
16 | from facilities located in the State, provided that | ||||||
17 | cost-effective renewable energy resources are | ||||||
18 | available from those facilities. If those | ||||||
19 | cost-effective resources are not available in | ||||||
20 | Illinois, they shall be procured in states that adjoin | ||||||
21 | Illinois and may be counted towards compliance. If | ||||||
22 | those cost-effective resources are not available in | ||||||
23 | Illinois or in states that adjoin Illinois, they shall | ||||||
24 | be purchased elsewhere and shall be counted towards | ||||||
25 | compliance. After June 1, 2011, cost-effective | ||||||
26 | renewable energy resources located in Illinois and in |
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1 | states that adjoin Illinois may be counted towards | ||||||
2 | compliance with the standards set forth in paragraph | ||||||
3 | (1) of this subsection (c). If those cost-effective | ||||||
4 | resources are not available in Illinois or in states | ||||||
5 | that adjoin Illinois, they shall be purchased | ||||||
6 | elsewhere and shall be counted towards compliance. | ||||||
7 | (4) The electric utility shall retire all | ||||||
8 | renewable energy credits used to comply with the | ||||||
9 | standard. | ||||||
10 | (5) Beginning with the year commencing June 1, | ||||||
11 | 2010, an electric utility subject to this subsection | ||||||
12 | (c) shall apply the lesser of the maximum alternative | ||||||
13 | compliance payment rate or the most recent estimated | ||||||
14 | alternative compliance payment rate for its service | ||||||
15 | territory for the corresponding compliance period, | ||||||
16 | established pursuant to subsection (d) of Section | ||||||
17 | 16-115D of the Public Utilities Act to its retail | ||||||
18 | customers that take service pursuant to the electric | ||||||
19 | utility's hourly pricing tariff or tariffs. The | ||||||
20 | electric utility shall retain all amounts collected as | ||||||
21 | a result of the application of the alternative | ||||||
22 | compliance payment rate or rates to such customers, | ||||||
23 | and, beginning in 2011, the utility shall include in | ||||||
24 | the information provided under item (1) of subsection | ||||||
25 | (d) of Section 16-111.5 of the Public Utilities Act the | ||||||
26 | amounts collected under the alternative compliance |
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1 | payment rate or rates for the prior year ending May 31. | ||||||
2 | Notwithstanding any limitation on the procurement of | ||||||
3 | renewable energy resources imposed by item (2) of this | ||||||
4 | subsection (c), the Agency shall increase its spending | ||||||
5 | on the purchase of renewable energy resources to be | ||||||
6 | procured by the electric utility for the next plan year | ||||||
7 | by an amount equal to the amounts collected by the | ||||||
8 | utility under the alternative compliance payment rate | ||||||
9 | or rates in the prior year ending May 31. | ||||||
10 | (d) Clean coal portfolio standard. | ||||||
11 | (1) The procurement plans shall include electricity | ||||||
12 | generated using clean coal. Each utility shall enter into | ||||||
13 | one or more sourcing agreements with the initial clean coal | ||||||
14 | facility, as provided in paragraph (3) of this subsection | ||||||
15 | (d), covering electricity generated by the initial clean | ||||||
16 | coal facility representing at least 5% of each utility's | ||||||
17 | total supply to serve the load of eligible retail customers | ||||||
18 | in 2015 and each year thereafter, as described in paragraph | ||||||
19 | (3) of this subsection (d), subject to the limits specified | ||||||
20 | in paragraph (2) of this subsection (d). It is the goal of | ||||||
21 | the State that by January 1, 2025, 25% of the electricity | ||||||
22 | used in the State shall be generated by cost-effective | ||||||
23 | clean coal facilities. For purposes of this subsection (d), | ||||||
24 | "cost-effective" means that the expenditures pursuant to | ||||||
25 | such sourcing agreements do not cause the limit stated in | ||||||
26 | paragraph (2) of this subsection (d) to be exceeded and do |
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1 | not exceed cost-based benchmarks, which shall be developed | ||||||
2 | to assess all expenditures pursuant to such sourcing | ||||||
3 | agreements covering electricity generated by clean coal | ||||||
4 | facilities, other than the initial clean coal facility, by | ||||||
5 | the procurement administrator, in consultation with the | ||||||
6 | Commission staff, Agency staff, and the procurement | ||||||
7 | monitor and shall be subject to Commission review and | ||||||
8 | approval. | ||||||
9 | (A) A utility party to a sourcing agreement shall | ||||||
10 | immediately retire any emission credits that it | ||||||
11 | receives in connection with the electricity covered by | ||||||
12 | such agreement. | ||||||
13 | (B) Utilities shall maintain adequate records | ||||||
14 | documenting the purchases under the sourcing agreement | ||||||
15 | to comply with this subsection (d) and shall file an | ||||||
16 | accounting with the load forecast that must be filed | ||||||
17 | with the Agency by July 15 of each year, in accordance | ||||||
18 | with subsection (d) of Section 16-111.5 of the Public | ||||||
19 | Utilities Act. | ||||||
20 | (C) A utility shall be deemed to have complied with | ||||||
21 | the clean coal portfolio standard specified in this | ||||||
22 | subsection (d) if the utility enters into a sourcing | ||||||
23 | agreement as required by this subsection (d). | ||||||
24 | (2) For purposes of this subsection (d), the required | ||||||
25 | execution of sourcing agreements with the initial clean | ||||||
26 | coal facility for a particular year shall be measured as a |
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1 | percentage of the actual amount of electricity | ||||||
2 | (megawatt-hours) supplied by the electric utility to | ||||||
3 | eligible retail customers in the planning year ending | ||||||
4 | immediately prior to the agreement's execution. For | ||||||
5 | purposes of this subsection (d), the amount paid per | ||||||
6 | kilowatthour means the total amount paid for electric | ||||||
7 | service expressed on a per kilowatthour basis. For purposes | ||||||
8 | of this subsection (d), the total amount paid for electric | ||||||
9 | service includes without limitation amounts paid for | ||||||
10 | supply, transmission, distribution, surcharges and add-on | ||||||
11 | taxes. | ||||||
12 | Notwithstanding the requirements of this subsection | ||||||
13 | (d), the total amount paid under sourcing agreements with | ||||||
14 | clean coal facilities pursuant to the procurement plan for | ||||||
15 | any given year shall be reduced by an amount necessary to | ||||||
16 | limit the annual estimated average net increase due to the | ||||||
17 | costs of these resources included in the amounts paid by | ||||||
18 | eligible retail customers in connection with electric | ||||||
19 | service to: | ||||||
20 | (A) in 2010, no more than 0.5% of the amount | ||||||
21 | paid per kilowatthour by those customers during | ||||||
22 | the year ending May 31, 2009; | ||||||
23 | (B) in 2011, the greater of an additional 0.5% | ||||||
24 | of the amount paid per kilowatthour by those | ||||||
25 | customers during the year ending May 31, 2010 or 1% | ||||||
26 | of the amount paid per kilowatthour by those |
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1 | customers during the year ending May 31, 2009; | ||||||
2 | (C) in 2012, the greater of an additional 0.5% | ||||||
3 | of the amount paid per kilowatthour by those | ||||||
4 | customers during the year ending May 31, 2011 or | ||||||
5 | 1.5% of the amount paid per kilowatthour by those | ||||||
6 | customers during the year ending May 31, 2009; | ||||||
7 | (D) in 2013, the greater of an additional 0.5% | ||||||
8 | of the amount paid per kilowatthour by those | ||||||
9 | customers during the year ending May 31, 2012 or 2% | ||||||
10 | of the amount paid per kilowatthour by those | ||||||
11 | customers during the year ending May 31, 2009; and | ||||||
12 | (E) thereafter, the total amount paid under | ||||||
13 | sourcing agreements with clean coal facilities | ||||||
14 | pursuant to the procurement plan for any single | ||||||
15 | year shall be reduced by an amount necessary to | ||||||
16 | limit the estimated average net increase due to the | ||||||
17 | cost of these resources included in the amounts | ||||||
18 | paid by eligible retail customers in connection | ||||||
19 | with electric service to no more than the greater | ||||||
20 | of (i) 2.015% of the amount paid per kilowatthour | ||||||
21 | by those customers during the year ending May 31, | ||||||
22 | 2009 or (ii) the incremental amount per | ||||||
23 | kilowatthour paid for these resources in 2013. | ||||||
24 | These requirements may be altered only as provided | ||||||
25 | by statute.
No later than June 30, 2015, the | ||||||
26 | Commission shall review the limitation on the |
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1 | total amount paid under sourcing agreements, if | ||||||
2 | any, with clean coal facilities pursuant to this | ||||||
3 | subsection (d) and report to the General Assembly | ||||||
4 | its findings as to whether that limitation unduly | ||||||
5 | constrains the amount of electricity generated by | ||||||
6 | cost-effective clean coal facilities that is | ||||||
7 | covered by sourcing agreements. | ||||||
8 | (3) Initial clean coal facility. In order to promote | ||||||
9 | development of clean coal facilities in Illinois, each | ||||||
10 | electric utility subject to this Section shall execute a | ||||||
11 | sourcing agreement to source electricity from a proposed | ||||||
12 | clean coal facility in Illinois (the "initial clean coal | ||||||
13 | facility") that will have a nameplate capacity of at least | ||||||
14 | 500 MW when commercial operation commences, that has a | ||||||
15 | final Clean Air Act permit on the effective date of this | ||||||
16 | amendatory Act of the 95th General Assembly, and that will | ||||||
17 | meet the definition of clean coal facility in Section 1-10 | ||||||
18 | of this Act when commercial operation commences. The | ||||||
19 | sourcing agreements with this initial clean coal facility | ||||||
20 | shall be subject to both approval of the initial clean coal | ||||||
21 | facility by the General Assembly and satisfaction of the | ||||||
22 | requirements of paragraph (4) of this subsection (d) and | ||||||
23 | shall be executed within 90 days after any such approval by | ||||||
24 | the General Assembly. The Agency and the Commission shall | ||||||
25 | have authority to inspect all books and records associated | ||||||
26 | with the initial clean coal facility during the term of |
| |||||||
| |||||||
1 | such a sourcing agreement. A utility's sourcing agreement | ||||||
2 | for electricity produced by the initial clean coal facility | ||||||
3 | shall include: | ||||||
4 | (A) a formula contractual price (the "contract | ||||||
5 | price") approved pursuant to paragraph (4) of this | ||||||
6 | subsection (d), which shall: | ||||||
7 | (i) be determined using a cost of service | ||||||
8 | methodology employing either a level or deferred | ||||||
9 | capital recovery component, based on a capital | ||||||
10 | structure consisting of 45% equity and 55% debt, | ||||||
11 | and a return on equity as may be approved by the | ||||||
12 | Federal Energy Regulatory Commission, which in any | ||||||
13 | case may not exceed the lower of 11.5% or the rate | ||||||
14 | of return approved by the General Assembly | ||||||
15 | pursuant to paragraph (4) of this subsection (d); | ||||||
16 | and | ||||||
17 | (ii) provide that all miscellaneous net | ||||||
18 | revenue, including but not limited to net revenue | ||||||
19 | from the sale of emission allowances, if any, | ||||||
20 | substitute natural gas, if any, grants or other | ||||||
21 | support provided by the State of Illinois or the | ||||||
22 | United States Government, firm transmission | ||||||
23 | rights, if any, by-products produced by the | ||||||
24 | facility, energy or capacity derived from the | ||||||
25 | facility and not covered by a sourcing agreement | ||||||
26 | pursuant to paragraph (3) of this subsection (d) or |
| |||||||
| |||||||
1 | item (5) of subsection (d) of Section 16-115 of the | ||||||
2 | Public Utilities Act, whether generated from the | ||||||
3 | synthesis gas derived from coal, from SNG, or from | ||||||
4 | natural gas, shall be credited against the revenue | ||||||
5 | requirement for this initial clean coal facility; | ||||||
6 | (B) power purchase provisions, which shall: | ||||||
7 | (i) provide that the utility party to such | ||||||
8 | sourcing agreement shall pay the contract price | ||||||
9 | for electricity delivered under such sourcing | ||||||
10 | agreement; | ||||||
11 | (ii) require delivery of electricity to the | ||||||
12 | regional transmission organization market of the | ||||||
13 | utility that is party to such sourcing agreement; | ||||||
14 | (iii) require the utility party to such | ||||||
15 | sourcing agreement to buy from the initial clean | ||||||
16 | coal facility in each hour an amount of energy | ||||||
17 | equal to all clean coal energy made available from | ||||||
18 | the initial clean coal facility during such hour | ||||||
19 | times a fraction, the numerator of which is such | ||||||
20 | utility's retail market sales of electricity | ||||||
21 | (expressed in kilowatthours sold) in the State | ||||||
22 | during the prior calendar month and the | ||||||
23 | denominator of which is the total retail market | ||||||
24 | sales of electricity (expressed in kilowatthours | ||||||
25 | sold) in the State by utilities during such prior | ||||||
26 | month and the sales of electricity (expressed in |
| |||||||
| |||||||
1 | kilowatthours sold) in the State by alternative | ||||||
2 | retail electric suppliers during such prior month | ||||||
3 | that are subject to the requirements of this | ||||||
4 | subsection (d) and paragraph (5) of subsection (d) | ||||||
5 | of Section 16-115 of the Public Utilities Act, | ||||||
6 | provided that the amount purchased by the utility | ||||||
7 | in any year will be limited by paragraph (2) of | ||||||
8 | this subsection (d); and | ||||||
9 | (iv) be considered pre-existing contracts in | ||||||
10 | such utility's procurement plans for eligible | ||||||
11 | retail customers; | ||||||
12 | (C) contract for differences provisions, which | ||||||
13 | shall: | ||||||
14 | (i) require the utility party to such sourcing | ||||||
15 | agreement to contract with the initial clean coal | ||||||
16 | facility in each hour with respect to an amount of | ||||||
17 | energy equal to all clean coal energy made | ||||||
18 | available from the initial clean coal facility | ||||||
19 | during such hour times a fraction, the numerator of | ||||||
20 | which is such utility's retail market sales of | ||||||
21 | electricity (expressed in kilowatthours sold) in | ||||||
22 | the utility's service territory in the State | ||||||
23 | during the prior calendar month and the | ||||||
24 | denominator of which is the total retail market | ||||||
25 | sales of electricity (expressed in kilowatthours | ||||||
26 | sold) in the State by utilities during such prior |
| |||||||
| |||||||
1 | month and the sales of electricity (expressed in | ||||||
2 | kilowatthours sold) in the State by alternative | ||||||
3 | retail electric suppliers during such prior month | ||||||
4 | that are subject to the requirements of this | ||||||
5 | subsection (d) and paragraph (5) of subsection (d) | ||||||
6 | of Section 16-115 of the Public Utilities Act, | ||||||
7 | provided that the amount paid by the utility in any | ||||||
8 | year will be limited by paragraph (2) of this | ||||||
9 | subsection (d); | ||||||
10 | (ii) provide that the utility's payment | ||||||
11 | obligation in respect of the quantity of | ||||||
12 | electricity determined pursuant to the preceding | ||||||
13 | clause (i) shall be limited to an amount equal to | ||||||
14 | (1) the difference between the contract price | ||||||
15 | determined pursuant to subparagraph (A) of | ||||||
16 | paragraph (3) of this subsection (d) and the | ||||||
17 | day-ahead price for electricity delivered to the | ||||||
18 | regional transmission organization market of the | ||||||
19 | utility that is party to such sourcing agreement | ||||||
20 | (or any successor delivery point at which such | ||||||
21 | utility's supply obligations are financially | ||||||
22 | settled on an hourly basis) (the "reference | ||||||
23 | price") on the day preceding the day on which the | ||||||
24 | electricity is delivered to the initial clean coal | ||||||
25 | facility busbar, multiplied by (2) the quantity of | ||||||
26 | electricity determined pursuant to the preceding |
| |||||||
| |||||||
1 | clause (i); and | ||||||
2 | (iii) not require the utility to take physical | ||||||
3 | delivery of the electricity produced by the | ||||||
4 | facility; | ||||||
5 | (D) general provisions, which shall: | ||||||
6 | (i) specify a term of no more than 30 years, | ||||||
7 | commencing on the commercial operation date of the | ||||||
8 | facility; | ||||||
9 | (ii) provide that utilities shall maintain | ||||||
10 | adequate records documenting purchases under the | ||||||
11 | sourcing agreements entered into to comply with | ||||||
12 | this subsection (d) and shall file an accounting | ||||||
13 | with the load forecast that must be filed with the | ||||||
14 | Agency by July 15 of each year, in accordance with | ||||||
15 | subsection (d) of Section 16-111.5 of the Public | ||||||
16 | Utilities Act. | ||||||
17 | (iii) provide that all costs associated with | ||||||
18 | the initial clean coal facility will be | ||||||
19 | periodically reported to the Federal Energy | ||||||
20 | Regulatory Commission and to purchasers in | ||||||
21 | accordance with applicable laws governing | ||||||
22 | cost-based wholesale power contracts; | ||||||
23 | (iv) permit the Illinois Power Agency to | ||||||
24 | assume ownership of the initial clean coal | ||||||
25 | facility, without monetary consideration and | ||||||
26 | otherwise on reasonable terms acceptable to the |
| |||||||
| |||||||
1 | Agency, if the Agency so requests no less than 3 | ||||||
2 | years prior to the end of the stated contract term; | ||||||
3 | (v) require the owner of the initial clean coal | ||||||
4 | facility to provide documentation to the | ||||||
5 | Commission each year, starting in the facility's | ||||||
6 | first year of commercial operation, accurately | ||||||
7 | reporting the quantity of carbon emissions from | ||||||
8 | the facility that have been captured and | ||||||
9 | sequestered and report any quantities of carbon | ||||||
10 | released from the site or sites at which carbon | ||||||
11 | emissions were sequestered in prior years, based | ||||||
12 | on continuous monitoring of such sites. If, in any | ||||||
13 | year after the first year of commercial operation, | ||||||
14 | the owner of the facility fails to demonstrate that | ||||||
15 | the initial clean coal facility captured and | ||||||
16 | sequestered at least 50% of the total carbon | ||||||
17 | emissions that the facility would otherwise emit | ||||||
18 | or that sequestration of emissions from prior | ||||||
19 | years has failed, resulting in the release of | ||||||
20 | carbon dioxide into the atmosphere, the owner of | ||||||
21 | the facility must offset excess emissions. Any | ||||||
22 | such carbon offsets must be permanent, additional, | ||||||
23 | verifiable, real, located within the State of | ||||||
24 | Illinois, and legally and practicably enforceable. | ||||||
25 | The cost of such offsets for the facility that are | ||||||
26 | not recoverable shall not exceed $15 million in any |
| |||||||
| |||||||
1 | given year. No costs of any such purchases of | ||||||
2 | carbon offsets may be recovered from a utility or | ||||||
3 | its customers. All carbon offsets purchased for | ||||||
4 | this purpose and any carbon emission credits | ||||||
5 | associated with sequestration of carbon from the | ||||||
6 | facility must be permanently retired. The initial | ||||||
7 | clean coal facility shall not forfeit its | ||||||
8 | designation as a clean coal facility if the | ||||||
9 | facility fails to fully comply with the applicable | ||||||
10 | carbon sequestration requirements in any given | ||||||
11 | year, provided the requisite offsets are | ||||||
12 | purchased. However, the Attorney General, on | ||||||
13 | behalf of the People of the State of Illinois, may | ||||||
14 | specifically enforce the facility's sequestration | ||||||
15 | requirement and the other terms of this contract | ||||||
16 | provision. Compliance with the sequestration | ||||||
17 | requirements and offset purchase requirements | ||||||
18 | specified in paragraph (3) of this subsection (d) | ||||||
19 | shall be reviewed annually by an independent | ||||||
20 | expert retained by the owner of the initial clean | ||||||
21 | coal facility, with the advance written approval | ||||||
22 | of the Attorney General. The Commission may, in the | ||||||
23 | course of the review specified in item (vii), | ||||||
24 | reduce the allowable return on equity for the | ||||||
25 | facility if the facility wilfully fails to comply | ||||||
26 | with the carbon capture and sequestration |
| |||||||
| |||||||
1 | requirements set forth in this item (v); | ||||||
2 | (vi) include limits on, and accordingly | ||||||
3 | provide for modification of, the amount the | ||||||
4 | utility is required to source under the sourcing | ||||||
5 | agreement consistent with paragraph (2) of this | ||||||
6 | subsection (d); | ||||||
7 | (vii) require Commission review: (1) to | ||||||
8 | determine the justness, reasonableness, and | ||||||
9 | prudence of the inputs to the formula referenced in | ||||||
10 | subparagraphs (A)(i) through (A)(iii) of paragraph | ||||||
11 | (3) of this subsection (d), prior to an adjustment | ||||||
12 | in those inputs including, without limitation, the | ||||||
13 | capital structure and return on equity, fuel | ||||||
14 | costs, and other operations and maintenance costs | ||||||
15 | and (2) to approve the costs to be passed through | ||||||
16 | to customers under the sourcing agreement by which | ||||||
17 | the utility satisfies its statutory obligations. | ||||||
18 | Commission review shall occur no less than every 3 | ||||||
19 | years, regardless of whether any adjustments have | ||||||
20 | been proposed, and shall be completed within 9 | ||||||
21 | months; | ||||||
22 | (viii) limit the utility's obligation to such | ||||||
23 | amount as the utility is allowed to recover through | ||||||
24 | tariffs filed with the Commission, provided that | ||||||
25 | neither the clean coal facility nor the utility | ||||||
26 | waives any right to assert federal pre-emption or |
| |||||||
| |||||||
1 | any other argument in response to a purported | ||||||
2 | disallowance of recovery costs; | ||||||
3 | (ix) limit the utility's or alternative retail | ||||||
4 | electric supplier's obligation to incur any | ||||||
5 | liability until such time as the facility is in | ||||||
6 | commercial operation and generating power and | ||||||
7 | energy and such power and energy is being delivered | ||||||
8 | to the facility busbar; | ||||||
9 | (x) provide that the owner or owners of the | ||||||
10 | initial clean coal facility, which is the | ||||||
11 | counterparty to such sourcing agreement, shall | ||||||
12 | have the right from time to time to elect whether | ||||||
13 | the obligations of the utility party thereto shall | ||||||
14 | be governed by the power purchase provisions or the | ||||||
15 | contract for differences provisions; | ||||||
16 | (xi) append documentation showing that the | ||||||
17 | formula rate and contract, insofar as they relate | ||||||
18 | to the power purchase provisions, have been | ||||||
19 | approved by the Federal Energy Regulatory | ||||||
20 | Commission pursuant to Section 205 of the Federal | ||||||
21 | Power Act; | ||||||
22 | (xii) provide that any changes to the terms of | ||||||
23 | the contract, insofar as such changes relate to the | ||||||
24 | power purchase provisions, are subject to review | ||||||
25 | under the public interest standard applied by the | ||||||
26 | Federal Energy Regulatory Commission pursuant to |
| |||||||
| |||||||
1 | Sections 205 and 206 of the Federal Power Act; and | ||||||
2 | (xiii) conform with customary lender | ||||||
3 | requirements in power purchase agreements used as | ||||||
4 | the basis for financing non-utility generators. | ||||||
5 | (4) Effective date of sourcing agreements with the | ||||||
6 | initial clean coal facility. Any proposed sourcing | ||||||
7 | agreement with the initial clean coal facility shall not | ||||||
8 | become effective unless the following reports are prepared | ||||||
9 | and submitted and authorizations and approvals obtained: | ||||||
10 | (i) Facility cost report. The owner of the | ||||||
11 | initial clean coal facility shall submit to the | ||||||
12 | Commission, the Agency, and the General Assembly a | ||||||
13 | front-end engineering and design study, a facility | ||||||
14 | cost report, method of financing (including but | ||||||
15 | not limited to structure and associated costs), | ||||||
16 | and an operating and maintenance cost quote for the | ||||||
17 | facility (collectively "facility cost report"), | ||||||
18 | which shall be prepared in accordance with the | ||||||
19 | requirements of this paragraph (4) of subsection | ||||||
20 | (d) of this Section, and shall provide the | ||||||
21 | Commission and the Agency access to the work | ||||||
22 | papers, relied upon documents, and any other | ||||||
23 | backup documentation related to the facility cost | ||||||
24 | report. | ||||||
25 | (ii) Commission report. Within 6 months | ||||||
26 | following receipt of the facility cost report, the |
| |||||||
| |||||||
1 | Commission, in consultation with the Agency, shall | ||||||
2 | submit a report to the General Assembly setting | ||||||
3 | forth its analysis of the facility cost report. | ||||||
4 | Such report shall include, but not be limited to, a | ||||||
5 | comparison of the costs associated with | ||||||
6 | electricity generated by the initial clean coal | ||||||
7 | facility to the costs associated with electricity | ||||||
8 | generated by other types of generation facilities, | ||||||
9 | an analysis of the rate impacts on residential and | ||||||
10 | small business customers over the life of the | ||||||
11 | sourcing agreements, and an analysis of the | ||||||
12 | likelihood that the initial clean coal facility | ||||||
13 | will commence commercial operation by and be | ||||||
14 | delivering power to the facility's busbar by 2016. | ||||||
15 | To assist in the preparation of its report, the | ||||||
16 | Commission, in consultation with the Agency, may | ||||||
17 | hire one or more experts or consultants, the costs | ||||||
18 | of which shall be paid for by the owner of the | ||||||
19 | initial clean coal facility. The Commission and | ||||||
20 | Agency may begin the process of selecting such | ||||||
21 | experts or consultants prior to receipt of the | ||||||
22 | facility cost report. | ||||||
23 | (iii) General Assembly approval. The proposed | ||||||
24 | sourcing agreements shall not take effect unless, | ||||||
25 | based on the facility cost report and the | ||||||
26 | Commission's report, the General Assembly enacts |
| |||||||
| |||||||
1 | authorizing legislation approving (A) the | ||||||
2 | projected price, stated in cents per kilowatthour, | ||||||
3 | to be charged for electricity generated by the | ||||||
4 | initial clean coal facility, (B) the projected | ||||||
5 | impact on residential and small business | ||||||
6 | customers' bills over the life of the sourcing | ||||||
7 | agreements, and (C) the maximum allowable return | ||||||
8 | on equity for the project; and | ||||||
9 | (iv) Commission review. If the General | ||||||
10 | Assembly enacts authorizing legislation pursuant | ||||||
11 | to subparagraph (iii) approving a sourcing | ||||||
12 | agreement, the Commission shall, within 90 days of | ||||||
13 | such enactment, complete a review of such sourcing | ||||||
14 | agreement. During such time period, the Commission | ||||||
15 | shall implement any directive of the General | ||||||
16 | Assembly, resolve any disputes between the parties | ||||||
17 | to the sourcing agreement concerning the terms of | ||||||
18 | such agreement, approve the form of such | ||||||
19 | agreement, and issue an order finding that the | ||||||
20 | sourcing agreement is prudent and reasonable. | ||||||
21 | The facility cost report shall be prepared as follows: | ||||||
22 | (A) The facility cost report shall be prepared by | ||||||
23 | duly licensed engineering and construction firms | ||||||
24 | detailing the estimated capital costs payable to one or | ||||||
25 | more contractors or suppliers for the engineering, | ||||||
26 | procurement and construction of the components |
| |||||||
| |||||||
1 | comprising the initial clean coal facility and the | ||||||
2 | estimated costs of operation and maintenance of the | ||||||
3 | facility. The facility cost report shall include: | ||||||
4 | (i) an estimate of the capital cost of the core | ||||||
5 | plant based on one or more front end engineering | ||||||
6 | and design studies for the gasification island and | ||||||
7 | related facilities. The core plant shall include | ||||||
8 | all civil, structural, mechanical, electrical, | ||||||
9 | control, and safety systems. | ||||||
10 | (ii) an estimate of the capital cost of the | ||||||
11 | balance of the plant, including any capital costs | ||||||
12 | associated with sequestration of carbon dioxide | ||||||
13 | emissions and all interconnects and interfaces | ||||||
14 | required to operate the facility, such as | ||||||
15 | transmission of electricity, construction or | ||||||
16 | backfeed power supply, pipelines to transport | ||||||
17 | substitute natural gas or carbon dioxide, potable | ||||||
18 | water supply, natural gas supply, water supply, | ||||||
19 | water discharge, landfill, access roads, and coal | ||||||
20 | delivery. | ||||||
21 | The quoted construction costs shall be expressed | ||||||
22 | in nominal dollars as of the date that the quote is | ||||||
23 | prepared and shall include (1) capitalized financing | ||||||
24 | costs during construction,
(2) taxes, insurance, and | ||||||
25 | other owner's costs, and (3) an assumed escalation in | ||||||
26 | materials and labor beyond the date as of which the |
| |||||||
| |||||||
1 | construction cost quote is expressed. | ||||||
2 | (B) The front end engineering and design study for | ||||||
3 | the gasification island and the cost study for the | ||||||
4 | balance of plant shall include sufficient design work | ||||||
5 | to permit quantification of major categories of | ||||||
6 | materials, commodities and labor hours, and receipt of | ||||||
7 | quotes from vendors of major equipment required to | ||||||
8 | construct and operate the clean coal facility. | ||||||
9 | (C) The facility cost report shall also include an | ||||||
10 | operating and maintenance cost quote that will provide | ||||||
11 | the estimated cost of delivered fuel, personnel, | ||||||
12 | maintenance contracts, chemicals, catalysts, | ||||||
13 | consumables, spares, and other fixed and variable | ||||||
14 | operations and maintenance costs. | ||||||
15 | (a) The delivered fuel cost estimate will be | ||||||
16 | provided by a recognized third party expert or | ||||||
17 | experts in the fuel and transportation industries. | ||||||
18 | (b) The balance of the operating and | ||||||
19 | maintenance cost quote, excluding delivered fuel | ||||||
20 | costs will be developed based on the inputs | ||||||
21 | provided by duly licensed engineering and | ||||||
22 | construction firms performing the construction | ||||||
23 | cost quote, potential vendors under long-term | ||||||
24 | service agreements and plant operating agreements, | ||||||
25 | or recognized third party plant operator or | ||||||
26 | operators. |
| |||||||
| |||||||
1 | The operating and maintenance cost quote | ||||||
2 | (including the cost of the front end engineering | ||||||
3 | and design study) shall be expressed in nominal | ||||||
4 | dollars as of the date that the quote is prepared | ||||||
5 | and shall include (1) taxes, insurance, and other | ||||||
6 | owner's costs, and (2) an assumed escalation in | ||||||
7 | materials and labor beyond the date as of which the | ||||||
8 | operating and maintenance cost quote is expressed. | ||||||
9 | (D) The facility cost report shall also include (i) | ||||||
10 | an analysis of the initial clean coal facility's | ||||||
11 | ability to deliver power and energy into the applicable | ||||||
12 | regional transmission organization markets and (ii) an | ||||||
13 | analysis of the expected capacity factor for the | ||||||
14 | initial clean coal facility. | ||||||
15 | (E) Amounts paid to third parties unrelated to the | ||||||
16 | owner or owners of the initial clean coal facility to | ||||||
17 | prepare the core plant construction cost quote, | ||||||
18 | including the front end engineering and design study, | ||||||
19 | and the operating and maintenance cost quote will be | ||||||
20 | reimbursed through Coal Development Bonds. | ||||||
21 | (5) Re-powering and retrofitting coal-fired power | ||||||
22 | plants previously owned by Illinois utilities to qualify as | ||||||
23 | clean coal facilities. During the 2009 procurement | ||||||
24 | planning process and thereafter, the Agency and the | ||||||
25 | Commission shall consider sourcing agreements covering | ||||||
26 | electricity generated by power plants that were previously |
| |||||||
| |||||||
1 | owned by Illinois utilities and that have been or will be | ||||||
2 | converted into clean coal facilities, as defined by Section | ||||||
3 | 1-10 of this Act. Pursuant to such procurement planning | ||||||
4 | process, the owners of such facilities may propose to the | ||||||
5 | Agency sourcing agreements with utilities and alternative | ||||||
6 | retail electric suppliers required to comply with | ||||||
7 | subsection (d) of this Section and item (5) of subsection | ||||||
8 | (d) of Section 16-115 of the Public Utilities Act, covering | ||||||
9 | electricity generated by such facilities. In the case of | ||||||
10 | sourcing agreements that are power purchase agreements, | ||||||
11 | the contract price for electricity sales shall be | ||||||
12 | established on a cost of service basis. In the case of | ||||||
13 | sourcing agreements that are contracts for differences, | ||||||
14 | the contract price from which the reference price is | ||||||
15 | subtracted shall be established on a cost of service basis. | ||||||
16 | The Agency and the Commission may approve any such utility | ||||||
17 | sourcing agreements that do not exceed cost-based | ||||||
18 | benchmarks developed by the procurement administrator, in | ||||||
19 | consultation with the Commission staff, Agency staff and | ||||||
20 | the procurement monitor, subject to Commission review and | ||||||
21 | approval. The Commission shall have authority to inspect | ||||||
22 | all books and records associated with these clean coal | ||||||
23 | facilities during the term of any such contract. | ||||||
24 | (6) Costs incurred under this subsection (d) or | ||||||
25 | pursuant to a contract entered into under this subsection | ||||||
26 | (d) shall be deemed prudently incurred and reasonable in |
| |||||||
| |||||||
1 | amount and the electric utility shall be entitled to full | ||||||
2 | cost recovery pursuant to the tariffs filed with the | ||||||
3 | Commission. | ||||||
4 | (e) The draft procurement plans are subject to public | ||||||
5 | comment, as required by Section 16-111.5 of the Public | ||||||
6 | Utilities Act. | ||||||
7 | (f) The Agency shall submit the final procurement plan | ||||||
8 | to the Commission. The Agency shall revise a procurement | ||||||
9 | plan if the Commission determines that it does not meet the | ||||||
10 | standards set forth in Section 16-111.5 of the Public | ||||||
11 | Utilities Act. | ||||||
12 | (g) The Agency shall assess fees to each affected | ||||||
13 | utility to recover the costs incurred in preparation of the | ||||||
14 | annual procurement plan for the utility. | ||||||
15 | (h) The Agency shall assess fees to each bidder to | ||||||
16 | recover the costs incurred in connection with a competitive | ||||||
17 | procurement process.
| ||||||
18 | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09; | ||||||
19 | 96-159, eff. 8-10-09.) | ||||||
20 | Section 10. The Public Utilities Act is amended by changing | ||||||
21 | Section 16-115D as follows: | ||||||
22 | (220 ILCS 5/16-115D) | ||||||
23 | Sec. 16-115D. Renewable portfolio standard for alternative | ||||||
24 | retail electric suppliers and electric utilities operating |
| |||||||
| |||||||
1 | outside their service territories. | ||||||
2 | (a) An alternative retail electric supplier shall be | ||||||
3 | responsible for procuring cost-effective renewable energy | ||||||
4 | resources as required under item (5) of subsection (d) of | ||||||
5 | Section 16-115 of this Act as outlined herein: | ||||||
6 | (1) The definition of renewable energy resources | ||||||
7 | contained in Section 1-10 of the Illinois Power Agency Act | ||||||
8 | applies to all renewable energy resources required to be | ||||||
9 | procured by alternative retail electric suppliers. | ||||||
10 | (2) The quantity of renewable energy resources shall be | ||||||
11 | measured as a percentage of the actual amount of metered | ||||||
12 | electricity (megawatt-hours) delivered by the alternative | ||||||
13 | retail electric supplier to Illinois retail customers | ||||||
14 | during the 12-month period June 1 through May 31, | ||||||
15 | commencing June 1, 2009, and the comparable 12-month period | ||||||
16 | in each year thereafter except as provided in item (6) of | ||||||
17 | this subsection (a). | ||||||
18 | (3) The quantity of renewable energy resources shall be | ||||||
19 | in amounts at least equal to the annual percentages set | ||||||
20 | forth in item (1) of subsection (c) of Section 1-75 of the | ||||||
21 | Illinois Power Agency Act. At least 60% of the renewable | ||||||
22 | energy resources procured pursuant to items (1) through (3) | ||||||
23 | of subsection (b) of this Section shall come from wind | ||||||
24 | generation and, starting June 1, 2015, at least 6% of the | ||||||
25 | renewable energy resources procured pursuant to items (1) | ||||||
26 | through (3) of subsection (b) of this Section shall come |
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1 | from solar photovoltaics. If, in any given year, an | ||||||
2 | alternative retail electric supplier does not purchase at | ||||||
3 | least these levels of renewable energy resources, then the | ||||||
4 | alternative retail electric supplier shall make | ||||||
5 | alternative compliance payments, as described in | ||||||
6 | subsection (d) of this Section. | ||||||
7 | (4) The quantity and source of renewable energy | ||||||
8 | resources shall be independently verified through the PJM | ||||||
9 | Environmental Information System Generation Attribute | ||||||
10 | Tracking System (PJM-GATS) or the Midwest Renewable Energy | ||||||
11 | Tracking System (M-RETS), which shall document the | ||||||
12 | location of generation, resource type, month, and year of | ||||||
13 | generation for all qualifying renewable energy resources | ||||||
14 | that an alternative retail electric supplier uses to comply | ||||||
15 | with this Section. No later than June 1, 2009, the Illinois | ||||||
16 | Power Agency shall provide PJM-GATS, M-RETS, and | ||||||
17 | alternative retail electric suppliers with all information | ||||||
18 | necessary to identify resources located in Illinois, | ||||||
19 | within states that adjoin Illinois or within portions of | ||||||
20 | the PJM and MISO footprint in the United States that | ||||||
21 | qualify under the definition of renewable energy resources | ||||||
22 | in Section 1-10 of the Illinois Power Agency Act for | ||||||
23 | compliance with this Section 16-115D. Alternative retail | ||||||
24 | electric suppliers shall not be subject to the requirements | ||||||
25 | in item (3) of subsection (c) of Section 1-75 of the | ||||||
26 | Illinois Power Agency Act. |
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1 | (5) All renewable energy credits used to comply with | ||||||
2 | this Section shall be permanently retired. | ||||||
3 | (6) The required procurement of renewable energy | ||||||
4 | resources by an alternative retail electric supplier shall | ||||||
5 | apply to all metered electricity delivered to Illinois | ||||||
6 | retail customers by the alternative retail electric | ||||||
7 | supplier pursuant to contracts executed or extended after | ||||||
8 | March 15, 2009. | ||||||
9 | (b) An alternative retail electric supplier shall comply | ||||||
10 | with the renewable energy portfolio standards by making an | ||||||
11 | alternative compliance payment, as described in subsection (d) | ||||||
12 | of this Section, to cover at least one-half of the alternative | ||||||
13 | retail electric supplier's compliance obligation and any one or | ||||||
14 | combination of the following means to cover the remainder of | ||||||
15 | the alternative retail electric supplier's compliance | ||||||
16 | obligation: | ||||||
17 | (1) Generating electricity using renewable energy | ||||||
18 | resources identified pursuant to item (4) of subsection (a) | ||||||
19 | of this Section. | ||||||
20 | (2) Purchasing electricity generated using renewable | ||||||
21 | energy resources identified pursuant to item (4) of | ||||||
22 | subsection (a) of this Section through an energy contract. | ||||||
23 | (3) Purchasing renewable energy credits from renewable | ||||||
24 | energy resources identified pursuant to item (4) of | ||||||
25 | subsection (a) of this Section. | ||||||
26 | (4) Making an alternative compliance payment as |
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1 | described in subsection (d) of this Section. | ||||||
2 | (c) Use of renewable energy credits. | ||||||
3 | (1) Renewable energy credits that are not used by an | ||||||
4 | alternative retail electric supplier to comply with a | ||||||
5 | renewable portfolio standard in a compliance year may be | ||||||
6 | banked and carried forward up to 2 12-month compliance | ||||||
7 | periods after the compliance period in which the credit was | ||||||
8 | generated for the purpose of complying with a renewable | ||||||
9 | portfolio standard in those 2 subsequent compliance | ||||||
10 | periods. For the 2009-2010 and 2010-2011 compliance | ||||||
11 | periods, an alternative retail electric supplier may use | ||||||
12 | renewable credits generated after December 31, 2008 and | ||||||
13 | before June 1, 2009 to comply with this Section. | ||||||
14 | (2) An alternative retail electric supplier is | ||||||
15 | responsible for demonstrating that a renewable energy | ||||||
16 | credit used to comply with a renewable portfolio standard | ||||||
17 | is derived from a renewable energy resource and that the | ||||||
18 | alternative retail electric supplier has not used, traded, | ||||||
19 | sold, or otherwise transferred the credit. | ||||||
20 | (3) The same renewable energy credit may be used by an | ||||||
21 | alternative retail electric supplier to comply with a | ||||||
22 | federal renewable portfolio standard and a renewable | ||||||
23 | portfolio standard established under this Act. An | ||||||
24 | alternative retail electric supplier that uses a renewable | ||||||
25 | energy credit to comply with a renewable portfolio standard | ||||||
26 | imposed by any other state may not use the same credit to |
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1 | comply with a renewable portfolio standard established | ||||||
2 | under this Act. | ||||||
3 | (d) Alternative compliance payments. | ||||||
4 | (1) The Commission shall establish and post on its | ||||||
5 | website, within 5 business days after entering an order | ||||||
6 | approving a procurement plan pursuant to Section 1-75 of | ||||||
7 | the Illinois Power Agency Act, maximum alternative | ||||||
8 | compliance payment rates, expressed on a per kilowatt-hour | ||||||
9 | basis, that will be applicable in the first compliance | ||||||
10 | period following the plan approval. A separate maximum | ||||||
11 | alternative compliance payment rate shall be established | ||||||
12 | for the service territory of each electric utility that is | ||||||
13 | subject to subsection (c) of Section 1-75 of the Illinois | ||||||
14 | Power Agency Act. Each maximum alternative compliance | ||||||
15 | payment rate shall be equal to the maximum allowable annual | ||||||
16 | estimated average net increase due to the costs of the | ||||||
17 | utility's purchase of renewable energy resources included | ||||||
18 | in the amounts paid by eligible retail customers in | ||||||
19 | connection with electric service, as described in item (2) | ||||||
20 | of subsection (c) of Section 1-75 of the Illinois Power | ||||||
21 | Agency Act for the compliance period, and as established in | ||||||
22 | the approved procurement plan. Following each procurement | ||||||
23 | event through which renewable energy resources are | ||||||
24 | purchased for one or more of these utilities for the | ||||||
25 | compliance period, the Commission shall establish and post | ||||||
26 | on its website estimates of the alternative compliance |
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1 | payment rates, expressed on a per kilowatt-hour basis, that | ||||||
2 | shall apply for that compliance period. Posting of the | ||||||
3 | estimates shall occur no later than 10 business days | ||||||
4 | following the procurement event, however, the Commission | ||||||
5 | shall not be required to establish and post such estimates | ||||||
6 | more often than once per calendar month. By July 1 of each | ||||||
7 | year, the Commission shall establish and post on its | ||||||
8 | website the actual alternative compliance payment rates | ||||||
9 | for the preceding compliance year. For compliance years | ||||||
10 | beginning prior to June 1, 2014, each Each alternative | ||||||
11 | compliance payment rate shall be equal to the total amount | ||||||
12 | of dollars that for which the utility contracted to spend | ||||||
13 | on renewable resources , excepting the additional | ||||||
14 | incremental cost attributable to solar resources, for the | ||||||
15 | compliance period divided by the forecasted load of | ||||||
16 | eligible retail customers, at the customers' meters, as | ||||||
17 | previously established in the Commission-approved | ||||||
18 | procurement plan for that compliance year. For compliance | ||||||
19 | years commencing on or after June 1, 2014, each alternative | ||||||
20 | compliance payment rate shall be equal to the total amount | ||||||
21 | of dollars that the utility contracted to spend on all | ||||||
22 | renewable resources for the compliance period divided by | ||||||
23 | the forecasted load of eligible retail customers, at the | ||||||
24 | customers' meters, as previously established in the | ||||||
25 | Commission-approved procurement plan for that compliance | ||||||
26 | year. The actual alternative compliance payment rates may |
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1 | not exceed the maximum alternative compliance payment | ||||||
2 | rates established for the compliance period. For purposes | ||||||
3 | of this subsection (d), the term "eligible retail | ||||||
4 | customers" has the same meaning as found in Section | ||||||
5 | 16-111.5 of this Act. | ||||||
6 | (2) In any given compliance year, an alternative retail | ||||||
7 | electric supplier may elect to use alternative compliance | ||||||
8 | payments to comply with all or a part of the applicable | ||||||
9 | renewable portfolio standard. In the event that an | ||||||
10 | alternative retail electric supplier elects to make | ||||||
11 | alternative compliance payments to comply with all or a | ||||||
12 | part of the applicable renewable portfolio standard, such | ||||||
13 | payments shall be made by September 1, 2010 for the period | ||||||
14 | of June 1, 2009 to May 1, 2010 and by September 1 of each | ||||||
15 | year thereafter for the subsequent compliance period, in | ||||||
16 | the manner and form as determined by the Commission. Any | ||||||
17 | election by an alternative retail electric supplier to use | ||||||
18 | alternative compliance payments is subject to review by the | ||||||
19 | Commission under subsection (e) of this Section. | ||||||
20 | (3) An alternative retail electric supplier's | ||||||
21 | alternative compliance payments shall be computed | ||||||
22 | separately for each electric utility's service territory | ||||||
23 | within which the alternative retail electric supplier | ||||||
24 | provided retail service during the compliance period, | ||||||
25 | provided that the electric utility was subject to | ||||||
26 | subsection (c) of Section 1-75 of the Illinois Power Agency |
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| |||||||
1 | Act. For each service territory, the alternative retail | ||||||
2 | electric supplier's alternative compliance payment shall | ||||||
3 | be equal to (i) the actual alternative compliance payment | ||||||
4 | rate established in item (1) of this subsection (d), | ||||||
5 | multiplied by (ii) the actual amount of metered electricity | ||||||
6 | delivered by the alternative retail electric supplier to | ||||||
7 | retail customers within the service territory during the | ||||||
8 | compliance period, multiplied by (iii) the result of one | ||||||
9 | minus the ratios of the quantity of renewable energy | ||||||
10 | resources used by the alternative retail electric supplier | ||||||
11 | to comply with the requirements of this Section within the | ||||||
12 | service territory to the product of the percentage of | ||||||
13 | renewable energy resources required under item (3) of | ||||||
14 | subsection (a) of this Section and the actual amount of | ||||||
15 | metered electricity delivered by the alternative retail | ||||||
16 | electric supplier to retail customers within the service | ||||||
17 | territory during the compliance period. | ||||||
18 | (4) All alternative compliance payments by alternative | ||||||
19 | retail electric suppliers shall be deposited in the | ||||||
20 | Illinois Power Agency Renewable Energy Resources Fund and | ||||||
21 | used to purchase renewable energy credits, in accordance | ||||||
22 | with Section 1-56 of the Illinois Power Agency Act. | ||||||
23 | (5) The Commission, in consultation with the Illinois | ||||||
24 | Power Agency, shall establish a process or proceeding to | ||||||
25 | consider the impact of a federal renewable portfolio | ||||||
26 | standard, if enacted, on the operation of the alternative |
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1 | compliance mechanism, which shall include, but not be | ||||||
2 | limited to, developing, to the extent permitted by the | ||||||
3 | applicable federal statute, an appropriate methodology to | ||||||
4 | apportion renewable energy credits retired as a result of | ||||||
5 | alternative compliance payments made in accordance with | ||||||
6 | this Section. The Commission shall commence any such | ||||||
7 | process or proceeding within 35 days after enactment of a | ||||||
8 | federal renewable portfolio standard. | ||||||
9 | (e) Each alternative retail electric supplier shall, by | ||||||
10 | September 1, 2010 and by September 1 of each year thereafter, | ||||||
11 | prepare and submit to the Commission a report, in a format to | ||||||
12 | be specified by the Commission on or before December 31, 2009, | ||||||
13 | that provides information certifying compliance by the | ||||||
14 | alternative retail electric supplier with this Section, | ||||||
15 | including copies of all PJM-GATS and M-RETS reports, and | ||||||
16 | documentation relating to banking, retiring renewable energy | ||||||
17 | credits, and any other information that the Commission | ||||||
18 | determines necessary to ensure compliance with this Section. An | ||||||
19 | alternative retail electric supplier may file commercially or | ||||||
20 | financially sensitive information or trade secrets with the | ||||||
21 | Commission as provided under the rules of the Commission. To be | ||||||
22 | filed confidentially, the information shall be accompanied by | ||||||
23 | an affidavit that sets forth both the reasons for the | ||||||
24 | confidentiality and a public synopsis of the information. | ||||||
25 | (f) The Commission may initiate a contested case to review | ||||||
26 | allegations that the alternative retail electric supplier has |
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1 | violated this Section, including an order issued or rule | ||||||
2 | promulgated under this Section. In any such proceeding, the | ||||||
3 | alternative retail electric supplier shall have the burden of | ||||||
4 | proof. If the Commission finds, after notice and hearing, that | ||||||
5 | an alternative retail electric supplier has violated this | ||||||
6 | Section, then the Commission shall issue an order requiring the | ||||||
7 | alternative retail electric supplier to: | ||||||
8 | (1) immediately comply with this Section; and | ||||||
9 | (2) if the violation involves a failure to procure the | ||||||
10 | requisite quantity of renewable energy resources or pay the | ||||||
11 | applicable alternative compliance payment by the annual | ||||||
12 | deadline, the Commission shall require the alternative | ||||||
13 | retail electric supplier to double the applicable | ||||||
14 | alternative compliance payment that would otherwise be | ||||||
15 | required to bring the alternative retail electric supplier | ||||||
16 | into compliance with this Section. | ||||||
17 | If an alternative retail electric supplier fails to comply | ||||||
18 | with the renewable energy resource portfolio requirement in | ||||||
19 | this Section more than once in a 5-year period, then the | ||||||
20 | Commission shall revoke the alternative electric supplier's | ||||||
21 | certificate of service authority. The Commission shall not | ||||||
22 | accept an application for a certificate of service authority | ||||||
23 | from an alternative retail electric supplier that has lost | ||||||
24 | certification under this subsection (f), or any corporate | ||||||
25 | affiliate thereof, for at least one year after the date of | ||||||
26 | revocation. |
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1 | (g) All of the provisions of this Section apply to electric | ||||||
2 | utilities operating outside their service area except under | ||||||
3 | item (2) of subsection (a) of this Section the quantity of | ||||||
4 | renewable energy resources shall be measured as a percentage of | ||||||
5 | the actual amount of electricity (megawatt-hours) supplied in | ||||||
6 | the State outside of the utility's service territory during the | ||||||
7 | 12-month period June 1 through May 31, commencing June 1, 2009, | ||||||
8 | and the comparable 12-month period in each year thereafter | ||||||
9 | except as provided in item (6) of subsection (a) of this | ||||||
10 | Section. | ||||||
11 | If any such utility fails to procure the requisite quantity | ||||||
12 | of renewable energy resources by the annual deadline, then the | ||||||
13 | Commission shall require the utility to double the alternative | ||||||
14 | compliance payment that would otherwise be required to bring | ||||||
15 | the utility into compliance with this Section. | ||||||
16 | If any such utility fails to comply with the renewable | ||||||
17 | energy resource portfolio requirement in this Section more than | ||||||
18 | once in a 5-year period, then the Commission shall order the | ||||||
19 | utility to cease all sales outside of the utility's service | ||||||
20 | territory for a period of at least one year. | ||||||
21 | (h) The provisions of this Section and the provisions of | ||||||
22 | subsection (d) of Section 16-115 of this Act relating to | ||||||
23 | procurement of renewable energy resources shall not apply to an | ||||||
24 | alternative retail electric supplier that operates a combined | ||||||
25 | heat and power system in this State or that has a corporate | ||||||
26 | affiliate that operates such a combined heat and power system |
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1 | in this State that supplies electricity primarily to or for the | ||||||
2 | benefit of: (i) facilities owned by the supplier, its | ||||||
3 | subsidiary, or other corporate affiliate; (ii) facilities | ||||||
4 | electrically integrated with the electrical system of | ||||||
5 | facilities owned by the supplier, its subsidiary, or other | ||||||
6 | corporate affiliate; or (iii) facilities that are adjacent to | ||||||
7 | the site on which the combined heat and power system is | ||||||
8 | located.
| ||||||
9 | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09.)
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.".
|