Sen. James F. Clayborne, Jr.
Filed: 11/22/2010
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1 | AMENDMENT TO HOUSE BILL 6267
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2 | AMENDMENT NO. ______. Amend House Bill 6267, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Public Utilities Act is amended by changing | ||||||
6 | Section 9-220 as follows: | ||||||
7 | (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220) | ||||||
8 | Sec. 9-220. Rate changes based on changes in fuel costs. | ||||||
9 | (a) Notwithstanding the provisions of Section 9-201, the
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10 | Commission may authorize the increase or decrease of rates and | ||||||
11 | charges
based upon changes in the cost of fuel used in the | ||||||
12 | generation or production
of electric power, changes in the cost | ||||||
13 | of purchased power, or changes in
the cost of purchased gas | ||||||
14 | through the application of fuel adjustment
clauses or purchased | ||||||
15 | gas adjustment clauses. The Commission may also
authorize the | ||||||
16 | increase or decrease of rates and charges based upon |
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1 | expenditures
or revenues resulting from the purchase or sale of | ||||||
2 | emission allowances created
under the federal Clean Air Act | ||||||
3 | Amendments of 1990,
through such fuel adjustment clauses, as a | ||||||
4 | cost of fuel. For the purposes of
this paragraph, cost of fuel | ||||||
5 | used in the generation or production of electric
power shall | ||||||
6 | include the amount of any fees paid by the utility for the
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7 | implementation and operation of a process for the | ||||||
8 | desulfurization of the
flue gas when burning high sulfur coal | ||||||
9 | at any location within the State of
Illinois irrespective of | ||||||
10 | the attainment status designation of such
location; but shall | ||||||
11 | not include transportation costs
of coal
(i) except to the | ||||||
12 | extent that for contracts entered into on
and after the | ||||||
13 | effective date of this amendatory Act of 1997,
the cost of the | ||||||
14 | coal, including transportation costs,
constitutes the lowest | ||||||
15 | cost for adequate and reliable fuel
supply reasonably available | ||||||
16 | to the public utility in
comparison to the cost, including | ||||||
17 | transportation costs, of
other adequate and reliable sources of | ||||||
18 | fuel supply reasonably
available to the public utility, or (ii)
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19 | except as otherwise provided in the next 3 sentences of this | ||||||
20 | paragraph.
Such costs of fuel
shall, when requested by a | ||||||
21 | utility or at the conclusion of the utility's
next general | ||||||
22 | electric rate proceeding, whichever shall first occur, include
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23 | transportation costs of coal purchased under existing coal | ||||||
24 | purchase
contracts. For purposes of this paragraph "existing | ||||||
25 | coal purchase
contracts" means contracts for the purchase of | ||||||
26 | coal in effect on the
effective date of this amendatory Act of |
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1 | 1991, as such contracts may
thereafter be amended, but only to | ||||||
2 | the extent that any such amendment does
not increase the | ||||||
3 | aggregate quantity of coal to be purchased under such
contract.
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4 | Nothing herein shall authorize an electric utility
to recover | ||||||
5 | through its fuel adjustment clause any amounts of
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6 | transportation costs of coal that were included in the revenue
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7 | requirement used to set base rates in its most recent general
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8 | rate proceeding.
Cost shall be based upon uniformly applied | ||||||
9 | accounting
principles. Annually, the Commission shall initiate | ||||||
10 | public hearings to
determine whether the clauses reflect actual | ||||||
11 | costs of fuel, gas, power, or
coal transportation purchased to | ||||||
12 | determine whether such purchases were
prudent, and to reconcile | ||||||
13 | any amounts collected with the actual costs of
fuel, power, | ||||||
14 | gas, or coal transportation prudently purchased. In each such
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15 | proceeding, the burden of proof shall be upon the utility to | ||||||
16 | establish the
prudence of its cost of fuel, power, gas, or coal
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17 | transportation purchases
and costs.
The Commission shall
issue | ||||||
18 | its final order in each such annual proceeding for an
electric | ||||||
19 | utility by December 31 of the year immediately
following the | ||||||
20 | year to which the proceeding pertains, provided,
that the | ||||||
21 | Commission shall issue its final order with respect
to such | ||||||
22 | annual proceeding for the years 1996 and earlier by December | ||||||
23 | 31, 1998. | ||||||
24 | (b) A public utility providing electric service, other than | ||||||
25 | a public utility
described in subsections (e) or (f) of this | ||||||
26 | Section, may at
any time during the mandatory transition period |
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1 | file with the
Commission proposed tariff sheets that eliminate | ||||||
2 | the public
utility's fuel adjustment clause and adjust the | ||||||
3 | public
utility's base rate tariffs by the amount necessary for | ||||||
4 | the
base fuel component of the base rates to recover the public
| ||||||
5 | utility's average fuel and power supply costs per kilowatt-hour | ||||||
6 | for the 2
most recent years for which the Commission
has issued | ||||||
7 | final orders in annual proceedings pursuant to
subsection (a), | ||||||
8 | where the average fuel and power supply costs
per kilowatt-hour | ||||||
9 | shall be calculated as the sum of the public
utility's prudent | ||||||
10 | and allowable fuel and power supply costs as
found by the | ||||||
11 | Commission in the 2 proceedings divided by the
public utility's | ||||||
12 | actual jurisdictional kilowatt-hour sales for
those 2 years. | ||||||
13 | Notwithstanding any contrary or inconsistent
provisions in | ||||||
14 | Section 9-201 of this Act, in subsection (a) of
this Section or | ||||||
15 | in any rules or regulations promulgated by the
Commission | ||||||
16 | pursuant to subsection (g) of this Section, the
Commission | ||||||
17 | shall review and shall by order approve, or approve
as | ||||||
18 | modified, the proposed tariff sheets within 60 days after
the | ||||||
19 | date of the public utility's filing. The Commission may
modify | ||||||
20 | the public utility's proposed tariff sheets only to the
extent | ||||||
21 | the Commission finds necessary to achieve conformance
to the | ||||||
22 | requirements of this subsection (b). During the 5
years | ||||||
23 | following the date of the Commission's order, but in any
event | ||||||
24 | no earlier than January 1, 2007, a public utility whose
fuel | ||||||
25 | adjustment clause has been eliminated pursuant to this
| ||||||
26 | subsection shall not file proposed tariff sheets seeking, or
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1 | otherwise petition the Commission for, reinstatement of a fuel
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2 | adjustment clause. | ||||||
3 | (c) Notwithstanding any contrary or inconsistent
| ||||||
4 | provisions in Section 9-201 of this Act, in subsection (a) of
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5 | this Section or in any rules or regulations promulgated by the
| ||||||
6 | Commission pursuant to subsection (g) of this Section, a
public | ||||||
7 | utility providing electric service, other than a public utility
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8 | described
in subsection (e) or (f) of this Section, may at any | ||||||
9 | time
during the mandatory transition period file with the
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10 | Commission proposed tariff sheets that establish the rate per
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11 | kilowatt-hour to be applied pursuant to the public utility's
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12 | fuel adjustment clause at the average value for such rate
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13 | during the preceding 24 months, provided that such average
rate | ||||||
14 | results in a credit to customers' bills, without making
any | ||||||
15 | revisions to the public utility's base rate tariffs. The
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16 | proposed tariff sheets shall establish the fuel adjustment
rate | ||||||
17 | for a specific time period of at least 3 years but not
more | ||||||
18 | than 5 years, provided that the terms and conditions for
any | ||||||
19 | reinstatement earlier than 5 years shall be set forth in
the | ||||||
20 | proposed tariff sheets and subject to modification or
approval | ||||||
21 | by the Commission. The Commission shall review and
shall by | ||||||
22 | order approve the proposed tariff sheets if it finds
that the | ||||||
23 | requirements of this subsection are met. The
Commission shall | ||||||
24 | not conduct the annual hearings specified in the
last 3 | ||||||
25 | sentences of subsection (a) of this Section for the
utility for | ||||||
26 | the period that the factor established pursuant to
this |
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1 | subsection is in effect. | ||||||
2 | (d) A public utility providing electric service, or a | ||||||
3 | public utility
providing gas service
may file with the | ||||||
4 | Commission proposed tariff sheets that
eliminate the public | ||||||
5 | utility's fuel or purchased gas
adjustment clause and adjust | ||||||
6 | the public utility's base rate
tariffs to provide for recovery | ||||||
7 | of power supply costs or gas
supply costs that would have been | ||||||
8 | recovered through such
clause; provided, that the provisions of | ||||||
9 | this subsection (d) shall not be
available to a public utility | ||||||
10 | described in subsections (e) or (f) of this
Section to | ||||||
11 | eliminate its fuel adjustment clause. Notwithstanding any | ||||||
12 | contrary
or inconsistent
provisions in Section 9-201 of this | ||||||
13 | Act, in subsection (a) of
this Section, or in any rules or | ||||||
14 | regulations promulgated by
the Commission pursuant to | ||||||
15 | subsection (g) of this Section, the
Commission shall review and | ||||||
16 | shall by order approve, or approve
as modified in the | ||||||
17 | Commission's order, the proposed tariff
sheets within 240 days | ||||||
18 | after the date of the public utility's
filing. The Commission's | ||||||
19 | order shall approve rates and
charges that the Commission, | ||||||
20 | based on information in the
public utility's filing or on the | ||||||
21 | record if a hearing is held
by the Commission, finds will | ||||||
22 | recover the reasonable, prudent
and necessary jurisdictional | ||||||
23 | power supply costs or gas supply
costs incurred or to be | ||||||
24 | incurred by the public utility during
a 12 month period found | ||||||
25 | by the Commission to be appropriate
for these purposes, | ||||||
26 | provided, that such period shall be either
(i) a 12 month |
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1 | historical period occurring during the 15
months ending on the | ||||||
2 | date of the public utility's filing, or
(ii) a 12 month future | ||||||
3 | period ending no later than 15 months
following the date of the | ||||||
4 | public utility's filing. The public
utility shall include with | ||||||
5 | its tariff filing information
showing both (1) its actual | ||||||
6 | jurisdictional power supply costs
or gas supply costs for a 12 | ||||||
7 | month historical period
conforming to (i) above and (2) its | ||||||
8 | projected jurisdictional
power supply costs or gas supply costs | ||||||
9 | for a future 12 month
period conforming to (ii) above. If the | ||||||
10 | Commission's order
requires modifications in the tariff sheets | ||||||
11 | filed by the
public utility, the public utility shall have 7 | ||||||
12 | days following
the date of the order to notify the Commission | ||||||
13 | whether the
public utility will implement the modified tariffs | ||||||
14 | or elect to
continue its fuel or purchased gas adjustment | ||||||
15 | clause in force
as though no order had been entered. The | ||||||
16 | Commission's order
shall provide for any reconciliation of | ||||||
17 | power supply costs or
gas supply costs, as the case may be, and | ||||||
18 | associated revenues
through the date that the public utility's | ||||||
19 | fuel or purchased
gas adjustment clause is eliminated. During | ||||||
20 | the 5 years
following the date of the Commission's order, a | ||||||
21 | public utility
whose fuel or purchased gas adjustment clause | ||||||
22 | has been
eliminated pursuant to this subsection shall not file | ||||||
23 | proposed
tariff sheets seeking, or otherwise petition the | ||||||
24 | Commission
for, reinstatement or adoption of a fuel or | ||||||
25 | purchased gas
adjustment clause. Nothing in this subsection (d) | ||||||
26 | shall be
construed as limiting the Commission's authority to |
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1 | eliminate
a public utility's fuel adjustment clause or | ||||||
2 | purchased gas
adjustment clause in accordance with any other | ||||||
3 | applicable
provisions of this Act. | ||||||
4 | (e) Notwithstanding any contrary or inconsistent | ||||||
5 | provisions in
Section 9-201 of this Act, in subsection (a) of | ||||||
6 | this Section, or in
any rules promulgated by the Commission | ||||||
7 | pursuant
to subsection (g) of this Section, a public utility | ||||||
8 | providing
electric service to more than 1,000,000 customers in | ||||||
9 | this State may, within the
first 6 months after the
effective | ||||||
10 | date of this amendatory Act of 1997, file with the
Commission | ||||||
11 | proposed tariff sheets that eliminate, effective
January 1, | ||||||
12 | 1997, the public utility's fuel adjustment clause
without | ||||||
13 | adjusting its base rates, and such tariff sheets shall be
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14 | effective upon filing. To the extent the application of the | ||||||
15 | fuel
adjustment clause had resulted in net charges to customers | ||||||
16 | after
January 1, 1997, the utility shall also file a tariff | ||||||
17 | sheet that
provides for a refund stated on a per kilowatt-hour | ||||||
18 | basis of such
charges over a period not to exceed 6 months; | ||||||
19 | provided
however, that such refund shall not include the | ||||||
20 | proportional
amounts of taxes paid under the Use Tax Act, | ||||||
21 | Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | ||||||
22 | Occupation Tax Act on
fuel used in generation. The Commission | ||||||
23 | shall issue an order
within 45 days after the date of the | ||||||
24 | public utility's filing
approving or approving as modified such | ||||||
25 | tariff sheet. If the fuel
adjustment clause is eliminated | ||||||
26 | pursuant to this subsection, the
Commission shall not conduct |
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1 | the annual hearings specified in the
last 3 sentences of | ||||||
2 | subsection (a) of this Section for the
utility for any period | ||||||
3 | after December 31, 1996 and prior to any
reinstatement of such | ||||||
4 | clause. A public utility whose fuel
adjustment clause has been | ||||||
5 | eliminated pursuant to this subsection
shall not file a | ||||||
6 | proposed tariff sheet seeking, or otherwise
petition the | ||||||
7 | Commission for, reinstatement of the fuel adjustment
clause | ||||||
8 | prior to January 1, 2007. | ||||||
9 | (f) Notwithstanding any contrary or inconsistent | ||||||
10 | provisions in Section
9-201 of this Act, in subsection (a) of | ||||||
11 | this Section, or in any rules or
regulations promulgated by the | ||||||
12 | Commission pursuant to subsection (g) of this
Section, a public | ||||||
13 | utility providing electric service to more than 500,000
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14 | customers but fewer than 1,000,000 customers in this State may, | ||||||
15 | within the
first
6 months after the effective date of this | ||||||
16 | amendatory Act of 1997, file with the
Commission proposed | ||||||
17 | tariff sheets that eliminate, effective January 1, 1997,
the | ||||||
18 | public utility's fuel adjustment clause and adjust its base | ||||||
19 | rates by the
amount necessary for the base fuel component of | ||||||
20 | the base rates to recover
91% of the public utility's average | ||||||
21 | fuel and power supply costs for the 2 most
recent years for | ||||||
22 | which the Commission, as of January 1, 1997, has issued final
| ||||||
23 | orders in annual proceedings pursuant to subsection (a), where | ||||||
24 | the average fuel
and power supply costs per kilowatt-hour shall | ||||||
25 | be calculated as the sum of the
public utility's prudent and | ||||||
26 | allowable fuel and power supply costs as found by
the |
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1 | Commission in the 2 proceedings divided by the public utility's | ||||||
2 | actual
jurisdictional kilowatt-hour sales for those 2 years, | ||||||
3 | provided, that such
tariff sheets shall be effective upon | ||||||
4 | filing. To the extent the application of
the fuel adjustment | ||||||
5 | clause had resulted in net charges to customers after
January | ||||||
6 | 1, 1997, the utility shall also file a tariff sheet that | ||||||
7 | provides for a
refund stated on a per kilowatt-hour basis of | ||||||
8 | such charges over a period not to
exceed 6 months. Provided | ||||||
9 | however, that such refund shall not include the
proportional | ||||||
10 | amounts of taxes paid under the Use Tax Act, Service Use Tax | ||||||
11 | Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | ||||||
12 | Act on fuel used in
generation. The Commission shall issue an | ||||||
13 | order within 45 days after the date
of the public utility's | ||||||
14 | filing approving or approving as modified such tariff
sheet. If | ||||||
15 | the fuel adjustment clause is eliminated pursuant to this
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16 | subsection, the Commission shall not conduct the annual | ||||||
17 | hearings specified in
the last 3 sentences of subsection (a) of | ||||||
18 | this Section for the utility for any
period after December 31, | ||||||
19 | 1996 and prior to any reinstatement of such clause.
A public | ||||||
20 | utility whose fuel adjustment clause has been eliminated | ||||||
21 | pursuant to
this subsection shall not file a proposed tariff | ||||||
22 | sheet seeking, or otherwise
petition the Commission for, | ||||||
23 | reinstatement of the fuel adjustment clause prior
to January 1, | ||||||
24 | 2007. | ||||||
25 | (g) The Commission shall have authority to promulgate rules | ||||||
26 | and
regulations to
carry out the provisions of this Section. |
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1 | (h) Any Illinois gas utility may enter into a contract on | ||||||
2 | or before March 31, 2011 for up to 10 years of supply with any | ||||||
3 | company for the purchase of substitute natural gas (SNG) | ||||||
4 | produced from coal through the gasification process if the | ||||||
5 | company has commenced construction of a coal gasification | ||||||
6 | facility by July 1, 2012 in Jefferson County and commencement | ||||||
7 | of construction shall mean that material physical site work has | ||||||
8 | occurred, such as site clearing and excavation, water runoff | ||||||
9 | prevention, water retention reservoir preparation, or | ||||||
10 | foundation development. The contract shall contain the | ||||||
11 | following provisions: (i) the only coal to be used in the | ||||||
12 | gasification process has high volatile bituminous rank and | ||||||
13 | greater than 1.7 pounds of sulfur per million Btu content; (ii) | ||||||
14 | at the time the contract term commences, the price per million | ||||||
15 | Btu may not exceed $7.95 in 2008 dollars, adjusted annually | ||||||
16 | based on the change in the Annual Consumer Price Index for All | ||||||
17 | Urban Consumers for the Midwest Region as published in April by | ||||||
18 | the United States Department of Labor, Bureau of Labor | ||||||
19 | Statistics (or a suitable Consumer Price Index calculation if | ||||||
20 | this Consumer Price Index is not available) for the previous | ||||||
21 | calendar year; provided that the price per million Btu shall | ||||||
22 | not exceed $9.95 at any time during the contract; (iii) the | ||||||
23 | utility's aggregate long-term supply contracts for the | ||||||
24 | purchase of SNG does not exceed 25% of the annual system supply | ||||||
25 | requirements of the utility as of 2008 and the quantity of SNG | ||||||
26 | supplied to a utility may not exceed 16 million MMBtus per |
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1 | year ; and (iv) the contract costs pursuant to subsection (h-10) | ||||||
2 | of this Section shall not include any lobbying expenses, | ||||||
3 | charitable contributions, advertising, organizational | ||||||
4 | memberships, or marketing expenses per year . | ||||||
5 | (h-5) The Attorney General, on behalf of the people of the | ||||||
6 | State of Illinois, may specifically enforce the requirements of | ||||||
7 | this subsection (h-5). All contracts, regardless of duration, | ||||||
8 | shall require the owner of any facility supplying SNG under the | ||||||
9 | contract to provide documentation to the Commission each year, | ||||||
10 | starting in the facility's first year of commercial operation, | ||||||
11 | accurately reporting the quantity of carbon dioxide emissions | ||||||
12 | from the facility that have been captured and sequestered and | ||||||
13 | reporting any quantities of carbon dioxide released from the | ||||||
14 | site or sites at which carbon dioxide emissions were | ||||||
15 | sequestered in prior years, based on continuous monitoring of | ||||||
16 | those sites. If, in any year, the owner of the facility fails | ||||||
17 | to demonstrate that the SNG facility captured and sequestered | ||||||
18 | at least 90% of the total carbon dioxide emissions that the | ||||||
19 | facility would otherwise emit or that sequestration of | ||||||
20 | emissions from prior years has failed, resulting in the release | ||||||
21 | of carbon dioxide into the atmosphere, then the owner of the | ||||||
22 | facility must offset excess emissions. Any such carbon dioxide | ||||||
23 | offsets must be permanent, additional, verifiable, real, | ||||||
24 | located within the State of Illinois, and legally and | ||||||
25 | practicably enforceable; provided that the owner of the | ||||||
26 | facility shall not be obligated to acquire carbon dioxide |
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1 | emission offsets to the extent that the cost of acquiring such | ||||||
2 | offsets would exceed $40 million in any given year. No costs of | ||||||
3 | any purchases of carbon offsets may be recovered from a utility | ||||||
4 | or its customers. All carbon offsets purchased for this purpose | ||||||
5 | must be permanently retired. In addition, carbon dioxide | ||||||
6 | emission credits equivalent to 50% of the amount of credits | ||||||
7 | associated with the required sequestration of carbon dioxide | ||||||
8 | from the facility must be permanently retired unless the owner | ||||||
9 | of the facility is required to fund carbon dioxide | ||||||
10 | transportation or sequestration . Compliance with the | ||||||
11 | sequestration requirements and the offset purchase | ||||||
12 | requirements specified in this subsection (h-5) shall be | ||||||
13 | assessed annually by an independent expert retained by the | ||||||
14 | owner of the SNG facility, with the advance written approval of | ||||||
15 | the Attorney General. A SNG facility operating pursuant to this | ||||||
16 | subsection (h-5) shall not forfeit its designation as a clean | ||||||
17 | coal SNG facility if the facility fails to fully comply with | ||||||
18 | the applicable carbon sequestration requirements in any given | ||||||
19 | year, provided the requisite offsets are purchased. | ||||||
20 | (h-10) Contract costs for SNG incurred by an Illinois gas | ||||||
21 | utility are reasonable and prudent and recoverable through the | ||||||
22 | purchased gas adjustment clause and are not subject to review | ||||||
23 | or disallowance by the Commission. Contract costs are costs | ||||||
24 | incurred by the utility under the terms of a contract that | ||||||
25 | incorporates the terms stated in subsection (h) of this Section | ||||||
26 | as confirmed in writing by the Illinois Power Agency as set |
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1 | forth in subsection (h-20) of this Section, which confirmation | ||||||
2 | shall be deemed conclusive, or as a consequence of or condition | ||||||
3 | to its performance under the contract, including (i) amounts | ||||||
4 | paid for SNG under the SNG contract and (ii) costs of | ||||||
5 | transportation and storage services of SNG purchased from | ||||||
6 | interstate pipelines under federally approved tariffs. Any | ||||||
7 | contract, the terms of which have been confirmed in writing by | ||||||
8 | the Illinois Power Agency as set forth in subsection (h-20) of | ||||||
9 | this Section and the performance of the parties under such | ||||||
10 | contract cannot be grounds for challenging prudence or cost | ||||||
11 | recovery by the utility through the purchased gas adjustment | ||||||
12 | clause, and in such cases, the Commission is directed not to | ||||||
13 | consider, and has no authority to consider, any attempted | ||||||
14 | challenges. | ||||||
15 | The contracts entered into by Illinois gas utilities shall | ||||||
16 | provide that the utility retains the right to terminate the | ||||||
17 | contract without further obligation or liability to any party | ||||||
18 | if the contract has been impaired as a result of any | ||||||
19 | legislative, administrative, judicial, or other governmental | ||||||
20 | action that is taken that eliminates all or part of the | ||||||
21 | prudence protection of this subsection (h-10) or denies the | ||||||
22 | recoverability of all or part of the contract costs through the | ||||||
23 | purchased gas adjustment clause. Should any Illinois gas | ||||||
24 | utility exercise its right under this subsection (h-10) to | ||||||
25 | terminate the contract, all contract costs incurred prior to | ||||||
26 | termination are and will be deemed reasonable, prudent, and |
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1 | recoverable as and when incurred and not subject to review or | ||||||
2 | disallowance by the Commission. Any order, issued by the State | ||||||
3 | requiring or authorizing the discontinuation of the merchant | ||||||
4 | function, defined as the purchase and sale of natural gas by an | ||||||
5 | Illinois gas utility for the ultimate consumer in its service | ||||||
6 | territory shall include provisions necessary to prevent the | ||||||
7 | impairment of the value of any contract hereunder over its full | ||||||
8 | term. | ||||||
9 | (h-15) With respect to each contract entered into by the | ||||||
10 | company with an Illinois utility in accordance with the terms | ||||||
11 | stated in subsection (h) of this Section, within 60 days | ||||||
12 | following the completion of purchases of SNG, the Illinois | ||||||
13 | Power Agency shall conduct an analysis to determine (i) the | ||||||
14 | average contract SNG cost, which shall be calculated as the | ||||||
15 | total amount paid to a company for SNG over the contract term, | ||||||
16 | plus the cost to the utility of the required transportation and | ||||||
17 | storage services of SNG, divided by the total number of MMBtus | ||||||
18 | of SNG actually purchased under the utility contract; (ii) the | ||||||
19 | average natural gas purchase cost, which shall be calculated as | ||||||
20 | the total annual supply costs paid for natural gas (excluding | ||||||
21 | SNG) purchased by such utility over the contract term, plus the | ||||||
22 | costs of transportation and storage services of such natural | ||||||
23 | gas (excluding such costs for SNG), divided by the total number | ||||||
24 | of MMBtus of natural gas (excluding SNG) actually purchased by | ||||||
25 | the utility during the contract term; (iii) the cost | ||||||
26 | differential, which shall be the difference between the average |
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1 | contract SNG cost and the average natural gas purchase cost; | ||||||
2 | and (iv) the revenue share target, which shall be the cost | ||||||
3 | differential multiplied by the total amount of SNG purchased | ||||||
4 | under such utility contract. If the average contract SNG cost | ||||||
5 | is equal to or less than the average natural gas purchase cost, | ||||||
6 | then the company shall have no further obligation to the | ||||||
7 | utility. If the average contract SNG cost for such SNG contract | ||||||
8 | is greater than the average natural gas purchase cost for such | ||||||
9 | utility, then the company shall market the daily production of | ||||||
10 | SNG and distribute on a monthly basis 5% of amounts collected | ||||||
11 | with respect to such future sales to the utilities in | ||||||
12 | proportion to each utility's SNG purchases from the company | ||||||
13 | during the term of the SNG contract to be used to reduce the | ||||||
14 | utility's natural gas costs through the purchased gas | ||||||
15 | adjustment clause; such payments to the utility shall continue | ||||||
16 | until such time as the sum of such payments equals the revenue | ||||||
17 | share target of that utility. The company or utilities shall | ||||||
18 | have no obligation to repay the revenue share target except as | ||||||
19 | provided for in this subsection (h-15). | ||||||
20 | (h-20) The General Assembly authorizes the Illinois | ||||||
21 | Finance Authority to issue bonds to the maximum extent | ||||||
22 | permitted to finance coal gasification facilities described in | ||||||
23 | this Section, which constitute both "industrial projects" | ||||||
24 | under Article 801 of the Illinois Finance Authority Act and | ||||||
25 | "clean coal and energy projects" under Sections 825-65 through | ||||||
26 | 825-75 of the Illinois Finance Authority Act. The General |
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1 | Assembly further authorizes the Illinois Power Agency to become | ||||||
2 | party to agreements and take such actions as necessary to | ||||||
3 | enable the Illinois Power Agency or its designate to (i) review | ||||||
4 | and confirm in writing that the terms stated in subsection (h) | ||||||
5 | of this Section are incorporated in the SNG contract, and (ii) | ||||||
6 | conduct an analysis pursuant to subsection (h-15) of this | ||||||
7 | Section. Administrative costs incurred by the Illinois Finance | ||||||
8 | Authority and Illinois Power Agency in performance of this | ||||||
9 | subsection (h-20) shall be subject to reimbursement by the | ||||||
10 | company on terms as the Illinois Finance Authority, the | ||||||
11 | Illinois Power Agency, and the company may agree. The utility | ||||||
12 | and its customers shall have no obligation to reimburse the | ||||||
13 | company, the Illinois Finance Authority, or the Illinois Power | ||||||
14 | Agency for any such costs. | ||||||
15 | (h-25) The State of Illinois pledges that the State may not | ||||||
16 | enact any law or take any action to (1) break or repeal the | ||||||
17 | authority for SNG purchase contracts entered into between | ||||||
18 | public gas utilities and the clean coal SNG facility located in | ||||||
19 | Jefferson County pursuant to subsection (h) of this Section or | ||||||
20 | (2) deny public gas utilities their full cost recovery for | ||||||
21 | contract costs, as defined in subsection (h-10), that are | ||||||
22 | incurred under such SNG purchase contracts. These pledges are | ||||||
23 | for the benefit of the parties to such SNG purchase contracts | ||||||
24 | and the issuers and holders of bonds or other obligations | ||||||
25 | issued or incurred to finance or refinance the clean coal SNG | ||||||
26 | facility located in Jefferson County. The beneficiaries are |
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1 | authorized to include and refer to these pledges in any finance | ||||||
2 | agreement into which they may enter in regard to such | ||||||
3 | contracts. | ||||||
4 | (h-30) The State of Illinois retains and reserves all other | ||||||
5 | rights to enact new or amendatory legislation or take any other | ||||||
6 | action, including, but not limited to, such legislation or | ||||||
7 | other action that would (1) directly or indirectly raise the | ||||||
8 | costs that the clean coal SNG facility must incur; (2) directly | ||||||
9 | or indirectly place additional restrictions, regulations, or | ||||||
10 | requirements on the clean coal SNG facility; (3) prohibit | ||||||
11 | sequestration in general or prohibit a specific sequestration | ||||||
12 | method or project; or (4) increase minimum sequestration | ||||||
13 | requirements. | ||||||
14 | (i) If a gas utility or an affiliate of a gas utility has | ||||||
15 | an ownership interest in any entity that produces or sells | ||||||
16 | synthetic natural gas, Article VII of this Act shall apply.
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17 | (Source: P.A. 95-1027, eff. 6-1-09; 96-1364, eff. 7-28-10.)
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.".
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