Sen. James F. Clayborne, Jr.
Filed: 12/1/2010
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1 | AMENDMENT TO HOUSE BILL 6267
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2 | AMENDMENT NO. ______. Amend House Bill 6267, AS AMENDED, | ||||||
3 | immediately above Section 5, by inserting the following:
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4 | "Section 3. If and only if Senate Bill 3388 of the 96th | ||||||
5 | General Assembly (as amended by House Amendment Nos. 1, 2, and | ||||||
6 | 3) becomes law, then the Illinois Power Agency Act is amended | ||||||
7 | by changing Section 1-10 as follows:
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8 | (20 ILCS 3855/1-10)
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9 | Sec. 1-10. Definitions. | ||||||
10 | "Agency" means the Illinois Power Agency. | ||||||
11 | "Agency loan agreement" means any agreement pursuant to | ||||||
12 | which the Illinois Finance Authority agrees to loan the | ||||||
13 | proceeds of revenue bonds issued with respect to a project to | ||||||
14 | the Agency upon terms providing for loan repayment installments | ||||||
15 | at least sufficient to pay when due all principal of, interest | ||||||
16 | and premium, if any, on those revenue bonds, and providing for |
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1 | maintenance, insurance, and other matters in respect of the | ||||||
2 | project. | ||||||
3 | "Authority" means the Illinois Finance Authority. | ||||||
4 | "Clean coal facility" means an electric generating | ||||||
5 | facility that uses primarily coal as a feedstock and that | ||||||
6 | captures and sequesters carbon dioxide emissions at the | ||||||
7 | following levels: at least 50% of the total carbon dioxide | ||||||
8 | emissions that the facility would otherwise emit if, at the | ||||||
9 | time construction commences, the facility is scheduled to | ||||||
10 | commence operation before 2016, at least 70% of the total | ||||||
11 | carbon dioxide emissions that the facility would otherwise emit | ||||||
12 | if, at the time construction commences, the facility is | ||||||
13 | scheduled to commence operation during 2016 or 2017, and at | ||||||
14 | least 90% of the total carbon dioxide emissions that the | ||||||
15 | facility would otherwise emit if, at the time construction | ||||||
16 | commences, the facility is scheduled to commence operation | ||||||
17 | after 2017. The power block of the clean coal facility shall | ||||||
18 | not exceed allowable emission rates for sulfur dioxide, | ||||||
19 | nitrogen oxides, carbon monoxide, particulates and mercury for | ||||||
20 | a natural gas-fired combined-cycle facility the same size as | ||||||
21 | and in the same location as the clean coal facility at the time | ||||||
22 | the clean coal facility obtains an approved air permit. All | ||||||
23 | coal used by a clean coal facility shall have high volatile | ||||||
24 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
25 | million btu content, unless the clean coal facility does not | ||||||
26 | use gasification technology and was operating as a conventional |
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1 | coal-fired electric generating facility on June 1, 2009 (the | ||||||
2 | effective date of Public Act 95-1027). | ||||||
3 | "Clean coal SNG brownfield facility" means a facility that | ||||||
4 | (1) has commenced construction by July 1, 2014 on an urban | ||||||
5 | brownfield site in a municipality with at least 1,000,000 | ||||||
6 | residents; (2) uses a gasification process to produce | ||||||
7 | substitute natural gas; (3) uses coal as at least 50% of the | ||||||
8 | total feedstock over the term of any sourcing agreement with a | ||||||
9 | utility and the remainder of the feedstock may be either | ||||||
10 | petroleum coke or coal, with all such coal having a high | ||||||
11 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
12 | million Btu content; and (4) captures and sequesters at least | ||||||
13 | 85% of the total carbon dioxide emissions that the facility | ||||||
14 | would otherwise emit. | ||||||
15 | "Clean coal SNG facility" means a facility that uses a | ||||||
16 | gasification process to produce substitute natural gas, that | ||||||
17 | sequesters at least 85% 90% of the total carbon dioxide | ||||||
18 | emissions that the facility would otherwise emit and that uses | ||||||
19 | and that uses petroleum coke or coal as a feedstock, with all | ||||||
20 | such coal having a high bituminous rank and greater than 1.7 | ||||||
21 | pounds of sulfur per million btu content and has commenced | ||||||
22 | construction by July 1, 2012 in Jefferson County ; provided, | ||||||
23 | however, a clean coal SNG brownfield facility shall not be a | ||||||
24 | clean coal SNG facility may elect to be a clean coal SNG | ||||||
25 | brownfield facility . | ||||||
26 | "Commission" means the Illinois Commerce Commission. |
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1 | "Costs incurred in connection with the development and | ||||||
2 | construction of a facility" means: | ||||||
3 | (1) the cost of acquisition of all real property, | ||||||
4 | fixtures, and improvements in connection therewith and | ||||||
5 | equipment, personal property, and other property, rights, | ||||||
6 | and easements acquired that are deemed necessary for the | ||||||
7 | operation and maintenance of the facility; | ||||||
8 | (2) financing costs with respect to bonds, notes, and | ||||||
9 | other evidences of indebtedness of the Agency; | ||||||
10 | (3) all origination, commitment, utilization, | ||||||
11 | facility, placement, underwriting, syndication, credit | ||||||
12 | enhancement, and rating agency fees; | ||||||
13 | (4) engineering, design, procurement, consulting, | ||||||
14 | legal, accounting, title insurance, survey, appraisal, | ||||||
15 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
16 | interest rate swap, capitalized interest, contingency, as | ||||||
17 | required by lenders, and other financing costs, and other | ||||||
18 | expenses for professional services; and | ||||||
19 | (5) the costs of plans, specifications, site study and | ||||||
20 | investigation, installation, surveys, other Agency costs | ||||||
21 | and estimates of costs, and other expenses necessary or | ||||||
22 | incidental to determining the feasibility of any project, | ||||||
23 | together with such other expenses as may be necessary or | ||||||
24 | incidental to the financing, insuring, acquisition, and | ||||||
25 | construction of a specific project and starting up, | ||||||
26 | commissioning, and placing that project in operation. |
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1 | "Department" means the Department of Commerce and Economic | ||||||
2 | Opportunity. | ||||||
3 | "Director" means the Director of the Illinois Power Agency. | ||||||
4 | "Demand-response" means measures that decrease peak | ||||||
5 | electricity demand or shift demand from peak to off-peak | ||||||
6 | periods. | ||||||
7 | "Energy efficiency" means measures that reduce the amount | ||||||
8 | of electricity or natural gas required to achieve a given end | ||||||
9 | use. | ||||||
10 | "Electric utility" has the same definition as found in | ||||||
11 | Section 16-102 of the Public Utilities Act. | ||||||
12 | "Facility" means an electric generating unit or a | ||||||
13 | co-generating unit that produces electricity along with | ||||||
14 | related equipment necessary to connect the facility to an | ||||||
15 | electric transmission or distribution system. | ||||||
16 | "Governmental aggregator" means one or more units of local | ||||||
17 | government that individually or collectively procure | ||||||
18 | electricity to serve residential retail electrical loads | ||||||
19 | located within its or their jurisdiction. | ||||||
20 | "Local government" means a unit of local government as | ||||||
21 | defined in Article VII of Section 1 of the Illinois | ||||||
22 | Constitution. | ||||||
23 | "Municipality" means a city, village, or incorporated | ||||||
24 | town. | ||||||
25 | "Person" means any natural person, firm, partnership, | ||||||
26 | corporation, either domestic or foreign, company, association, |
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1 | limited liability company, joint stock company, or association | ||||||
2 | and includes any trustee, receiver, assignee, or personal | ||||||
3 | representative thereof. | ||||||
4 | "Project" means the planning, bidding, and construction of | ||||||
5 | a facility. | ||||||
6 | "Public utility" has the same definition as found in | ||||||
7 | Section 3-105 of the Public Utilities Act. | ||||||
8 | "Real property" means any interest in land together with | ||||||
9 | all structures, fixtures, and improvements thereon, including | ||||||
10 | lands under water and riparian rights, any easements, | ||||||
11 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
12 | interests, together with any liens, judgments, mortgages, or | ||||||
13 | other claims or security interests related to real property. | ||||||
14 | "Renewable energy credit" means a tradable credit that | ||||||
15 | represents the environmental attributes of a certain amount of | ||||||
16 | energy produced from a renewable energy resource. | ||||||
17 | "Renewable energy resources" includes energy and its | ||||||
18 | associated renewable energy credit or renewable energy credits | ||||||
19 | from wind, solar thermal energy, photovoltaic cells and panels, | ||||||
20 | biodiesel, crops and untreated and unadulterated organic waste | ||||||
21 | biomass, tree waste, hydropower that does not involve new | ||||||
22 | construction or significant expansion of hydropower dams, and | ||||||
23 | other alternative sources of environmentally preferable | ||||||
24 | energy. For purposes of this Act, landfill gas produced in the | ||||||
25 | State is considered a renewable energy resource. "Renewable | ||||||
26 | energy resources" does not include the incineration or burning |
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1 | of tires, garbage, general household, institutional, and | ||||||
2 | commercial waste, industrial lunchroom or office waste, | ||||||
3 | landscape waste other than tree waste, railroad crossties, | ||||||
4 | utility poles, or construction or demolition debris, other than | ||||||
5 | untreated and unadulterated waste wood. | ||||||
6 | "Revenue bond" means any bond, note, or other evidence of | ||||||
7 | indebtedness issued by the Authority, the principal and | ||||||
8 | interest of which is payable solely from revenues or income | ||||||
9 | derived from any project or activity of the Agency. | ||||||
10 | "Sequester" means permanent storage of carbon dioxide by | ||||||
11 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
12 | or an oil reservoir, directly or through an enhanced oil | ||||||
13 | recovery process that may involve intermediate storage, | ||||||
14 | regardless of whether these activities are conducted by a clean | ||||||
15 | coal facility, clean coal SNG facility, clean coal SNG | ||||||
16 | brownfield facility, or a party with which a clean coal | ||||||
17 | facility, clean coal SNG facility, or clean coal SNG brownfield | ||||||
18 | facility has contracted for such purposes. | ||||||
19 | "Sourcing agreement" means (i) in the case of an electric | ||||||
20 | utility, an agreement between the owner of a clean coal | ||||||
21 | facility and such electric utility, which agreement shall have | ||||||
22 | terms and conditions meeting the requirements of paragraph (3) | ||||||
23 | of subsection (d) of Section 1-75, (ii) in the case of an | ||||||
24 | alternative retail electric supplier, an agreement between the | ||||||
25 | owner of a clean coal facility and such alternative retail | ||||||
26 | electric supplier, which agreement shall have terms and |
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1 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
2 | the Public Utilities Act, and (iii) in case of a gas utility, | ||||||
3 | an agreement between the owner of a clean coal SNG brownfield | ||||||
4 | facility and the gas utility, which agreement shall have the | ||||||
5 | terms and conditions meeting the requirements of subsection | ||||||
6 | (h-1) of Section 9-220 of the Public Utilities Act. | ||||||
7 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
8 | by gasification of hydrocarbon feedstock, which is | ||||||
9 | substantially interchangeable in use and distribution with | ||||||
10 | conventional natural gas. | ||||||
11 | "Total resource cost test" or "TRC test" means a standard | ||||||
12 | that is met if, for an investment in energy efficiency or | ||||||
13 | demand-response measures, the benefit-cost ratio is greater | ||||||
14 | than one. The benefit-cost ratio is the ratio of the net | ||||||
15 | present value of the total benefits of the program to the net | ||||||
16 | present value of the total costs as calculated over the | ||||||
17 | lifetime of the measures. A total resource cost test compares | ||||||
18 | the sum of avoided electric utility costs, representing the | ||||||
19 | benefits that accrue to the system and the participant in the | ||||||
20 | delivery of those efficiency measures, as well as other | ||||||
21 | quantifiable societal benefits, including avoided natural gas | ||||||
22 | utility costs, to the sum of all incremental costs of end-use | ||||||
23 | measures that are implemented due to the program (including | ||||||
24 | both utility and participant contributions), plus costs to | ||||||
25 | administer, deliver, and evaluate each demand-side program, to | ||||||
26 | quantify the net savings obtained by substituting the |
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1 | demand-side program for supply resources. In calculating | ||||||
2 | avoided costs of power and energy that an electric utility | ||||||
3 | would otherwise have had to acquire, reasonable estimates shall | ||||||
4 | be included of financial costs likely to be imposed by future | ||||||
5 | regulations and legislation on emissions of greenhouse gases.
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6 | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; | ||||||
7 | 95-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff. | ||||||
8 | 8-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; | ||||||
9 | 09600SB3388ham001 and ham003.)
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10 | Section 4. If and only if Senate Bill 3388 of the 96th | ||||||
11 | General Assembly (as amended by House Amendment Nos. 1, 2, and | ||||||
12 | 3), then the Public Utilities Act is amended by changing | ||||||
13 | Section 9-220 as follows: | ||||||
14 | (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220) | ||||||
15 | Sec. 9-220. Rate changes based on changes in fuel costs. | ||||||
16 | (a) Notwithstanding the provisions of Section 9-201, the
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17 | Commission may authorize the increase or decrease of rates and | ||||||
18 | charges
based upon changes in the cost of fuel used in the | ||||||
19 | generation or production
of electric power, changes in the cost | ||||||
20 | of purchased power, or changes in
the cost of purchased gas | ||||||
21 | through the application of fuel adjustment
clauses or purchased | ||||||
22 | gas adjustment clauses. The Commission may also
authorize the | ||||||
23 | increase or decrease of rates and charges based upon | ||||||
24 | expenditures
or revenues resulting from the purchase or sale of |
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1 | emission allowances created
under the federal Clean Air Act | ||||||
2 | Amendments of 1990,
through such fuel adjustment clauses, as a | ||||||
3 | cost of fuel. For the purposes of
this paragraph, cost of fuel | ||||||
4 | used in the generation or production of electric
power shall | ||||||
5 | include the amount of any fees paid by the utility for the
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6 | implementation and operation of a process for the | ||||||
7 | desulfurization of the
flue gas when burning high sulfur coal | ||||||
8 | at any location within the State of
Illinois irrespective of | ||||||
9 | the attainment status designation of such
location; but shall | ||||||
10 | not include transportation costs
of coal
(i) except to the | ||||||
11 | extent that for contracts entered into on
and after the | ||||||
12 | effective date of this amendatory Act of 1997,
the cost of the | ||||||
13 | coal, including transportation costs,
constitutes the lowest | ||||||
14 | cost for adequate and reliable fuel
supply reasonably available | ||||||
15 | to the public utility in
comparison to the cost, including | ||||||
16 | transportation costs, of
other adequate and reliable sources of | ||||||
17 | fuel supply reasonably
available to the public utility, or (ii)
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18 | except as otherwise provided in the next 3 sentences of this | ||||||
19 | paragraph.
Such costs of fuel
shall, when requested by a | ||||||
20 | utility or at the conclusion of the utility's
next general | ||||||
21 | electric rate proceeding, whichever shall first occur, include
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22 | transportation costs of coal purchased under existing coal | ||||||
23 | purchase
contracts. For purposes of this paragraph "existing | ||||||
24 | coal purchase
contracts" means contracts for the purchase of | ||||||
25 | coal in effect on the
effective date of this amendatory Act of | ||||||
26 | 1991, as such contracts may
thereafter be amended, but only to |
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1 | the extent that any such amendment does
not increase the | ||||||
2 | aggregate quantity of coal to be purchased under such
contract.
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3 | Nothing herein shall authorize an electric utility
to recover | ||||||
4 | through its fuel adjustment clause any amounts of
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5 | transportation costs of coal that were included in the revenue
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6 | requirement used to set base rates in its most recent general
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7 | rate proceeding.
Cost shall be based upon uniformly applied | ||||||
8 | accounting
principles. Annually, the Commission shall initiate | ||||||
9 | public hearings to
determine whether the clauses reflect actual | ||||||
10 | costs of fuel, gas, power, or
coal transportation purchased to | ||||||
11 | determine whether such purchases were
prudent, and to reconcile | ||||||
12 | any amounts collected with the actual costs of
fuel, power, | ||||||
13 | gas, or coal transportation prudently purchased. In each such
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14 | proceeding, the burden of proof shall be upon the utility to | ||||||
15 | establish the
prudence of its cost of fuel, power, gas, or coal
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16 | transportation purchases
and costs.
The Commission shall
issue | ||||||
17 | its final order in each such annual proceeding for an
electric | ||||||
18 | utility by December 31 of the year immediately
following the | ||||||
19 | year to which the proceeding pertains, provided,
that the | ||||||
20 | Commission shall issue its final order with respect
to such | ||||||
21 | annual proceeding for the years 1996 and earlier by December | ||||||
22 | 31, 1998. | ||||||
23 | (b) A public utility providing electric service, other than | ||||||
24 | a public utility
described in subsections (e) or (f) of this | ||||||
25 | Section, may at
any time during the mandatory transition period | ||||||
26 | file with the
Commission proposed tariff sheets that eliminate |
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1 | the public
utility's fuel adjustment clause and adjust the | ||||||
2 | public
utility's base rate tariffs by the amount necessary for | ||||||
3 | the
base fuel component of the base rates to recover the public
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4 | utility's average fuel and power supply costs per kilowatt-hour | ||||||
5 | for the 2
most recent years for which the Commission
has issued | ||||||
6 | final orders in annual proceedings pursuant to
subsection (a), | ||||||
7 | where the average fuel and power supply costs
per kilowatt-hour | ||||||
8 | shall be calculated as the sum of the public
utility's prudent | ||||||
9 | and allowable fuel and power supply costs as
found by the | ||||||
10 | Commission in the 2 proceedings divided by the
public utility's | ||||||
11 | actual jurisdictional kilowatt-hour sales for
those 2 years. | ||||||
12 | Notwithstanding any contrary or inconsistent
provisions in | ||||||
13 | Section 9-201 of this Act, in subsection (a) of
this Section or | ||||||
14 | in any rules or regulations promulgated by the
Commission | ||||||
15 | pursuant to subsection (g) of this Section, the
Commission | ||||||
16 | shall review and shall by order approve, or approve
as | ||||||
17 | modified, the proposed tariff sheets within 60 days after
the | ||||||
18 | date of the public utility's filing. The Commission may
modify | ||||||
19 | the public utility's proposed tariff sheets only to the
extent | ||||||
20 | the Commission finds necessary to achieve conformance
to the | ||||||
21 | requirements of this subsection (b). During the 5
years | ||||||
22 | following the date of the Commission's order, but in any
event | ||||||
23 | no earlier than January 1, 2007, a public utility whose
fuel | ||||||
24 | adjustment clause has been eliminated pursuant to this
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25 | subsection shall not file proposed tariff sheets seeking, or
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26 | otherwise petition the Commission for, reinstatement of a fuel
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1 | adjustment clause. | ||||||
2 | (c) Notwithstanding any contrary or inconsistent
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3 | provisions in Section 9-201 of this Act, in subsection (a) of
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4 | this Section or in any rules or regulations promulgated by the
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5 | Commission pursuant to subsection (g) of this Section, a
public | ||||||
6 | utility providing electric service, other than a public utility
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7 | described
in subsection (e) or (f) of this Section, may at any | ||||||
8 | time
during the mandatory transition period file with the
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9 | Commission proposed tariff sheets that establish the rate per
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10 | kilowatt-hour to be applied pursuant to the public utility's
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11 | fuel adjustment clause at the average value for such rate
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12 | during the preceding 24 months, provided that such average
rate | ||||||
13 | results in a credit to customers' bills, without making
any | ||||||
14 | revisions to the public utility's base rate tariffs. The
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15 | proposed tariff sheets shall establish the fuel adjustment
rate | ||||||
16 | for a specific time period of at least 3 years but not
more | ||||||
17 | than 5 years, provided that the terms and conditions for
any | ||||||
18 | reinstatement earlier than 5 years shall be set forth in
the | ||||||
19 | proposed tariff sheets and subject to modification or
approval | ||||||
20 | by the Commission. The Commission shall review and
shall by | ||||||
21 | order approve the proposed tariff sheets if it finds
that the | ||||||
22 | requirements of this subsection are met. The
Commission shall | ||||||
23 | not conduct the annual hearings specified in the
last 3 | ||||||
24 | sentences of subsection (a) of this Section for the
utility for | ||||||
25 | the period that the factor established pursuant to
this | ||||||
26 | subsection is in effect. |
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1 | (d) A public utility providing electric service, or a | ||||||
2 | public utility
providing gas service
may file with the | ||||||
3 | Commission proposed tariff sheets that
eliminate the public | ||||||
4 | utility's fuel or purchased gas
adjustment clause and adjust | ||||||
5 | the public utility's base rate
tariffs to provide for recovery | ||||||
6 | of power supply costs or gas
supply costs that would have been | ||||||
7 | recovered through such
clause; provided, that the provisions of | ||||||
8 | this subsection (d) shall not be
available to a public utility | ||||||
9 | described in subsections (e) or (f) of this
Section to | ||||||
10 | eliminate its fuel adjustment clause. Notwithstanding any | ||||||
11 | contrary
or inconsistent
provisions in Section 9-201 of this | ||||||
12 | Act, in subsection (a) of
this Section, or in any rules or | ||||||
13 | regulations promulgated by
the Commission pursuant to | ||||||
14 | subsection (g) of this Section, the
Commission shall review and | ||||||
15 | shall by order approve, or approve
as modified in the | ||||||
16 | Commission's order, the proposed tariff
sheets within 240 days | ||||||
17 | after the date of the public utility's
filing. The Commission's | ||||||
18 | order shall approve rates and
charges that the Commission, | ||||||
19 | based on information in the
public utility's filing or on the | ||||||
20 | record if a hearing is held
by the Commission, finds will | ||||||
21 | recover the reasonable, prudent
and necessary jurisdictional | ||||||
22 | power supply costs or gas supply
costs incurred or to be | ||||||
23 | incurred by the public utility during
a 12 month period found | ||||||
24 | by the Commission to be appropriate
for these purposes, | ||||||
25 | provided, that such period shall be either
(i) a 12 month | ||||||
26 | historical period occurring during the 15
months ending on the |
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1 | date of the public utility's filing, or
(ii) a 12 month future | ||||||
2 | period ending no later than 15 months
following the date of the | ||||||
3 | public utility's filing. The public
utility shall include with | ||||||
4 | its tariff filing information
showing both (1) its actual | ||||||
5 | jurisdictional power supply costs
or gas supply costs for a 12 | ||||||
6 | month historical period
conforming to (i) above and (2) its | ||||||
7 | projected jurisdictional
power supply costs or gas supply costs | ||||||
8 | for a future 12 month
period conforming to (ii) above. If the | ||||||
9 | Commission's order
requires modifications in the tariff sheets | ||||||
10 | filed by the
public utility, the public utility shall have 7 | ||||||
11 | days following
the date of the order to notify the Commission | ||||||
12 | whether the
public utility will implement the modified tariffs | ||||||
13 | or elect to
continue its fuel or purchased gas adjustment | ||||||
14 | clause in force
as though no order had been entered. The | ||||||
15 | Commission's order
shall provide for any reconciliation of | ||||||
16 | power supply costs or
gas supply costs, as the case may be, and | ||||||
17 | associated revenues
through the date that the public utility's | ||||||
18 | fuel or purchased
gas adjustment clause is eliminated. During | ||||||
19 | the 5 years
following the date of the Commission's order, a | ||||||
20 | public utility
whose fuel or purchased gas adjustment clause | ||||||
21 | has been
eliminated pursuant to this subsection shall not file | ||||||
22 | proposed
tariff sheets seeking, or otherwise petition the | ||||||
23 | Commission
for, reinstatement or adoption of a fuel or | ||||||
24 | purchased gas
adjustment clause. Nothing in this subsection (d) | ||||||
25 | shall be
construed as limiting the Commission's authority to | ||||||
26 | eliminate
a public utility's fuel adjustment clause or |
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1 | purchased gas
adjustment clause in accordance with any other | ||||||
2 | applicable
provisions of this Act. | ||||||
3 | (e) Notwithstanding any contrary or inconsistent | ||||||
4 | provisions in
Section 9-201 of this Act, in subsection (a) of | ||||||
5 | this Section, or in
any rules promulgated by the Commission | ||||||
6 | pursuant
to subsection (g) of this Section, a public utility | ||||||
7 | providing
electric service to more than 1,000,000 customers in | ||||||
8 | this State may, within the
first 6 months after the
effective | ||||||
9 | date of this amendatory Act of 1997, file with the
Commission | ||||||
10 | proposed tariff sheets that eliminate, effective
January 1, | ||||||
11 | 1997, the public utility's fuel adjustment clause
without | ||||||
12 | adjusting its base rates, and such tariff sheets shall be
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13 | effective upon filing. To the extent the application of the | ||||||
14 | fuel
adjustment clause had resulted in net charges to customers | ||||||
15 | after
January 1, 1997, the utility shall also file a tariff | ||||||
16 | sheet that
provides for a refund stated on a per kilowatt-hour | ||||||
17 | basis of such
charges over a period not to exceed 6 months; | ||||||
18 | provided
however, that such refund shall not include the | ||||||
19 | proportional
amounts of taxes paid under the Use Tax Act, | ||||||
20 | Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | ||||||
21 | Occupation Tax Act on
fuel used in generation. The Commission | ||||||
22 | shall issue an order
within 45 days after the date of the | ||||||
23 | public utility's filing
approving or approving as modified such | ||||||
24 | tariff sheet. If the fuel
adjustment clause is eliminated | ||||||
25 | pursuant to this subsection, the
Commission shall not conduct | ||||||
26 | the annual hearings specified in the
last 3 sentences of |
| |||||||
| |||||||
1 | subsection (a) of this Section for the
utility for any period | ||||||
2 | after December 31, 1996 and prior to any
reinstatement of such | ||||||
3 | clause. A public utility whose fuel
adjustment clause has been | ||||||
4 | eliminated pursuant to this subsection
shall not file a | ||||||
5 | proposed tariff sheet seeking, or otherwise
petition the | ||||||
6 | Commission for, reinstatement of the fuel adjustment
clause | ||||||
7 | prior to January 1, 2007. | ||||||
8 | (f) Notwithstanding any contrary or inconsistent | ||||||
9 | provisions in Section
9-201 of this Act, in subsection (a) of | ||||||
10 | this Section, or in any rules or
regulations promulgated by the | ||||||
11 | Commission pursuant to subsection (g) of this
Section, a public | ||||||
12 | utility providing electric service to more than 500,000
| ||||||
13 | customers but fewer than 1,000,000 customers in this State may, | ||||||
14 | within the
first
6 months after the effective date of this | ||||||
15 | amendatory Act of 1997, file with the
Commission proposed | ||||||
16 | tariff sheets that eliminate, effective January 1, 1997,
the | ||||||
17 | public utility's fuel adjustment clause and adjust its base | ||||||
18 | rates by the
amount necessary for the base fuel component of | ||||||
19 | the base rates to recover
91% of the public utility's average | ||||||
20 | fuel and power supply costs for the 2 most
recent years for | ||||||
21 | which the Commission, as of January 1, 1997, has issued final
| ||||||
22 | orders in annual proceedings pursuant to subsection (a), where | ||||||
23 | the average fuel
and power supply costs per kilowatt-hour shall | ||||||
24 | be calculated as the sum of the
public utility's prudent and | ||||||
25 | allowable fuel and power supply costs as found by
the | ||||||
26 | Commission in the 2 proceedings divided by the public utility's |
| |||||||
| |||||||
1 | actual
jurisdictional kilowatt-hour sales for those 2 years, | ||||||
2 | provided, that such
tariff sheets shall be effective upon | ||||||
3 | filing. To the extent the application of
the fuel adjustment | ||||||
4 | clause had resulted in net charges to customers after
January | ||||||
5 | 1, 1997, the utility shall also file a tariff sheet that | ||||||
6 | provides for a
refund stated on a per kilowatt-hour basis of | ||||||
7 | such charges over a period not to
exceed 6 months. Provided | ||||||
8 | however, that such refund shall not include the
proportional | ||||||
9 | amounts of taxes paid under the Use Tax Act, Service Use Tax | ||||||
10 | Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | ||||||
11 | Act on fuel used in
generation. The Commission shall issue an | ||||||
12 | order within 45 days after the date
of the public utility's | ||||||
13 | filing approving or approving as modified such tariff
sheet. If | ||||||
14 | the fuel adjustment clause is eliminated pursuant to this
| ||||||
15 | subsection, the Commission shall not conduct the annual | ||||||
16 | hearings specified in
the last 3 sentences of subsection (a) of | ||||||
17 | this Section for the utility for any
period after December 31, | ||||||
18 | 1996 and prior to any reinstatement of such clause.
A public | ||||||
19 | utility whose fuel adjustment clause has been eliminated | ||||||
20 | pursuant to
this subsection shall not file a proposed tariff | ||||||
21 | sheet seeking, or otherwise
petition the Commission for, | ||||||
22 | reinstatement of the fuel adjustment clause prior
to January 1, | ||||||
23 | 2007. | ||||||
24 | (g) The Commission shall have authority to promulgate rules | ||||||
25 | and
regulations to
carry out the provisions of this Section. | ||||||
26 | (h) Any Illinois gas utility may enter into a contract on |
| |||||||
| |||||||
1 | or before March 31, 2011 for up to 10 years of supply with any | ||||||
2 | company for the purchase of substitute natural gas (SNG) | ||||||
3 | produced from coal through the gasification process if the | ||||||
4 | company has commenced construction of a coal gasification | ||||||
5 | facility by July 1, 2012 in Jefferson County and commencement | ||||||
6 | of construction shall mean that material physical site work has | ||||||
7 | occurred, such as site clearing and excavation, water runoff | ||||||
8 | prevention, water retention reservoir preparation, or | ||||||
9 | foundation development. The contract shall contain the | ||||||
10 | following provisions: (i) the only coal to be used in the | ||||||
11 | gasification process has high volatile bituminous rank and | ||||||
12 | greater than 1.7 pounds of sulfur per million Btu content; (ii) | ||||||
13 | at the time the contract term commences, the price per million | ||||||
14 | Btu may not exceed $7.95 in 2008 dollars, adjusted annually | ||||||
15 | based on the change in the Annual Consumer Price Index for All | ||||||
16 | Urban Consumers for the Midwest Region as published in April by | ||||||
17 | the United States Department of Labor, Bureau of Labor | ||||||
18 | Statistics (or a suitable Consumer Price Index calculation if | ||||||
19 | this Consumer Price Index is not available) for the previous | ||||||
20 | calendar year; provided that the price per million Btu shall | ||||||
21 | not exceed $9.95 at any time during the contract; (iii) the | ||||||
22 | utility's aggregate long-term supply contracts for the | ||||||
23 | purchase of SNG does not exceed 25% of the annual system supply | ||||||
24 | requirements of the utility as of 2008 and the quantity of SNG | ||||||
25 | supplied to a utility may not exceed 16 million MMBtus; and | ||||||
26 | (iv) contract costs pursuant to subsection (h-10) of this |
| |||||||
| |||||||
1 | Section shall not include any lobbying expenses, charitable | ||||||
2 | contributions, advertising, organizational memberships, or | ||||||
3 | marketing expenses per year. | ||||||
4 | (h-1) Any Illinois gas utility may enter into a sourcing | ||||||
5 | agreement for up to 30 years of supply with a the clean coal | ||||||
6 | SNG brownfield facility if the clean coal SNG brownfield | ||||||
7 | facility has commenced construction. Any gas utility that is | ||||||
8 | providing service to more than 150,000 customers on the | ||||||
9 | effective date of this amendatory Act of the 96th General | ||||||
10 | Assembly shall either elect to file biennial rate proceedings | ||||||
11 | before the Commission in the years 2011, 2013, and 2015 or | ||||||
12 | enter into a sourcing agreement or sourcing agreements with all | ||||||
13 | a clean coal SNG brownfield facilities each facility for 30 | ||||||
14 | years for either (i) 43,500,000,000 cubic feet per year times a | ||||||
15 | percentage calculated by dividing 100 by the number of | ||||||
16 | utilities entering into sourcing agreements with the clean coal | ||||||
17 | SNG brownfield facility or (ii) such lesser amount as may be | ||||||
18 | available from the clean coal SNG brownfield facility. | ||||||
19 | Provided, however, that the Illinois Power Agency may | ||||||
20 | allocate the purchase obligations more proportionately based | ||||||
21 | upon total therms sold to ultimate customers, if it is | ||||||
22 | demonstrated with certainty that such alternative allocation | ||||||
23 | will not result in adverse consolidation, derivative, or lease | ||||||
24 | impacts to the balance sheet or income statement of any | ||||||
25 | purchasing utility. In any event, no utility shall be required | ||||||
26 | to purchase more than 42% of the projected annual output of the |
| |||||||
| |||||||
1 | clean coal SNG brownfield facility, with the remainder of such | ||||||
2 | utility's obligation to be divided proportionately between the | ||||||
3 | other utilities. | ||||||
4 | A gas utility electing to file biennial rate proceedings | ||||||
5 | before the Commission must file a notice of its election with | ||||||
6 | the Commission within 60 days after the effective date of this | ||||||
7 | amendatory Act of the 96th General Assembly or its right to | ||||||
8 | make the election is irrevocably waived. A gas utility electing | ||||||
9 | to file biennial rate proceedings shall make such filings no | ||||||
10 | later than August 1 of the years 2011, 2013, and 2015, | ||||||
11 | consistent with all requirements of 83 Ill. Adm. Code 255 and | ||||||
12 | 285 as though the gas utility were filing for an increase in | ||||||
13 | its rates, without regard to whether such filing would produce | ||||||
14 | an increase, a decrease, or no change in the gas utility's | ||||||
15 | rates, and the Commission shall review the gas utility's filing | ||||||
16 | and shall issue its order in accordance with the provisions of | ||||||
17 | Section 9-201 of this Act. | ||||||
18 | Within 15 days after the effective date of this amendatory | ||||||
19 | Act of the 96th General Assembly, the owner of the clean coal | ||||||
20 | SNG brownfield facility shall submit to the Illinois Power | ||||||
21 | Agency and each gas utility that is providing service to more | ||||||
22 | than 150,000 customers on the effective date of this amendatory | ||||||
23 | Act of the 96th General Assembly a copy of a draft sourcing | ||||||
24 | agreement. Within 45 days after receipt of the draft sourcing | ||||||
25 | agreement, each such gas utility shall provide the Illinois | ||||||
26 | Power Agency and the owner of a clean coal SNG brownfield |
| |||||||
| |||||||
1 | facility with its comments and recommended revisions to the | ||||||
2 | draft sourcing agreement. Within 15 days after the receipt of | ||||||
3 | the gas utility's comments and recommended revisions, the owner | ||||||
4 | of the clean coal SNG brownfield facility shall submit its | ||||||
5 | responsive comments and a further revised draft of the sourcing | ||||||
6 | agreement to the Illinois Power Agency. The Illinois Power | ||||||
7 | Agency shall review the draft sourcing agreement and comments. | ||||||
8 | If the parties to the sourcing agreement do not agree on | ||||||
9 | the terms therein, then the Illinois Power Agency shall retain | ||||||
10 | an independent mediator to mediate the dispute between the | ||||||
11 | parties. If the parties are in agreement on the terms of the | ||||||
12 | sourcing agreement, the Illinois Power Agency shall approve the | ||||||
13 | final draft sourcing agreement. If after mediation the parties | ||||||
14 | have failed to come to agreement, then the Illinois Power | ||||||
15 | Agency shall revise the draft sourcing agreement as necessary | ||||||
16 | to confirm that the final draft sourcing agreement contains | ||||||
17 | only terms that are reasonable and equitable. The Illinois | ||||||
18 | Power Agency shall adopt and make public a policy detailing the | ||||||
19 | process for retaining a mediator under this subsection (h-1). | ||||||
20 | Any mediator retained to assist with mediating disputes between | ||||||
21 | the parties regarding the sourcing agreement shall be retained | ||||||
22 | no later than 60 days after the effective date of this | ||||||
23 | amendatory Act of the 96th General Assembly. | ||||||
24 | Upon approval of a final draft agreement, the Illinois | ||||||
25 | Power Agency shall submit the final draft agreement to the | ||||||
26 | Capital Development Board and the Commission no later than 90 |
| |||||||
| |||||||
1 | days after the effective date of this amendatory Act of the | ||||||
2 | 96th General Assembly. The gas utility and the clean coal SNG | ||||||
3 | brownfield facility shall pay a reasonable fee as required by | ||||||
4 | the Illinois Power Agency for its services under this | ||||||
5 | subsection (h-1) and shall pay the mediator's reasonable fees, | ||||||
6 | if any. The Illinois Power Agency shall adopt and make public a | ||||||
7 | policy detailing the process for retaining a mediator under | ||||||
8 | this Section. | ||||||
9 | The sourcing agreement between a gas utility and the clean | ||||||
10 | coal SNG brownfield facility shall contain the following | ||||||
11 | provisions: | ||||||
12 | (1) Any and all coal used in the gasification process | ||||||
13 | must be coal that has high volatile bituminous rank and | ||||||
14 | greater than 1.7 pounds of sulfur per million Btu content. | ||||||
15 | (2) Coal and petroleum coke are feedstocks for the | ||||||
16 | gasification process, with coal comprising at least 50% of | ||||||
17 | the total feedstock over the term of the sourcing agreement | ||||||
18 | and with the feedstocks to be procured in accordance with | ||||||
19 | requirements of Section 1-78 of the Illinois Power Agency | ||||||
20 | Act. | ||||||
21 | (3) The sourcing agreement once entered into | ||||||
22 | terminates no more than 30 years after the commencement of | ||||||
23 | the commercial production of SNG at the clean coal SNG | ||||||
24 | brownfield facility. | ||||||
25 | (4) The clean coal SNG brownfield facility guarantees a | ||||||
26 | minimum of $100,000,000 in consumer savings, calculated in |
| |||||||
| |||||||
1 | real 2010 dollars at the conclusion of the term of the | ||||||
2 | sourcing agreement by comparing the delivered SNG price to | ||||||
3 | the Chicago City-gate price on a weighted daily basis for | ||||||
4 | each day over the entire term of the sourcing agreement, to | ||||||
5 | be provided in accordance with subsection (h-2) of this | ||||||
6 | Section. | ||||||
7 | (5) Prior to the clean coal SNG brownfield facility | ||||||
8 | issuing a notice to proceed to construction, the clean coal | ||||||
9 | SNG brownfield facility shall establish a consumer | ||||||
10 | protection reserve account for the benefit of the customers | ||||||
11 | of the utilities that have entered into sourcing agreements | ||||||
12 | with the clean coal SNG brownfield facility pursuant to | ||||||
13 | this subsection (h-1), with cash principal in the amount of | ||||||
14 | $150,000,000. This cash principal shall only be | ||||||
15 | recoverable through the consumer protection reserve | ||||||
16 | account and not as a cost to be recovered in the delivered | ||||||
17 | SNG price pursuant to subsection (h-3) of this Section. The | ||||||
18 | consumer protection reserve account shall be maintained | ||||||
19 | and administered by an independent trustee that is mutually | ||||||
20 | agreed upon by the clean coal SNG brownfield facility, the | ||||||
21 | utilities, and the Commission in an interest-bearing | ||||||
22 | account in accordance with subsection (h-2) of this | ||||||
23 | Section. | ||||||
24 | (6) The clean coal SNG brownfield facility shall | ||||||
25 | identify and sell economically viable by-products produced | ||||||
26 | by the facility. |
| |||||||
| |||||||
1 | (7) 50% of all additional net revenue, defined as | ||||||
2 | miscellaneous net revenue after cost allowance for costs | ||||||
3 | associated with additional net revenue that are not | ||||||
4 | otherwise recoverable pursuant to subsection (h-3) of this | ||||||
5 | Section, including net revenue from sales of substitute | ||||||
6 | natural gas derived from the facility above the nameplate | ||||||
7 | capacity of the facility and other by-products produced by | ||||||
8 | the facility, shall be credited to the consumer protection | ||||||
9 | reserve account pursuant to subsection (h-2) of this | ||||||
10 | Section. | ||||||
11 | (8) The delivered SNG price per million btu to be paid | ||||||
12 | monthly by the utility to the clean coal SNG brownfield | ||||||
13 | facility, which shall be based only upon the following: (A) | ||||||
14 | a capital recovery charge, operations and maintenance | ||||||
15 | costs, and sequestration costs, only to the extent approved | ||||||
16 | by the Commission pursuant to paragraphs (1), (2), and (3) | ||||||
17 | of subsection (h-3) of this Section; (B) the actual | ||||||
18 | delivered and processed fuel costs pursuant to paragraph | ||||||
19 | (4) of subsection (h-3) of this Section; (C) actual costs | ||||||
20 | of SNG transportation pursuant to paragraph (6) of | ||||||
21 | subsection (h-3) of this Section; (D) certain taxes and | ||||||
22 | fees imposed by the federal government, the State, or any | ||||||
23 | unit of local government as provided in paragraph (6) of | ||||||
24 | subsection (h-3) of this Section; and (E) the credit, if | ||||||
25 | any, from the consumer protection reserve account pursuant | ||||||
26 | to subsection (h-2) of this Section. The delivered SNG |
| |||||||
| |||||||
1 | price per million Btu shall proportionately reflect these | ||||||
2 | elements over the term of the sourcing agreement. | ||||||
3 | (9) A formula to translate the recoverable costs and | ||||||
4 | charges under subsection (h-3) of this Section into the | ||||||
5 | delivered SNG price per million btu. | ||||||
6 | (10) Title to the SNG shall pass at a | ||||||
7 | mutually-agreeable point in Illinois, and may provide | ||||||
8 | that, rather than the utility taking title to the SNG, a | ||||||
9 | mutually-agreed upon third-party gas marketer pursuant to | ||||||
10 | a contract approved by the Illinois Power Agency or its | ||||||
11 | designee, may take title to the SNG pursuant to an | ||||||
12 | agreement between the utility, the owner of the clean coal | ||||||
13 | SNG brownfield facility, and the third-party gas marketer. | ||||||
14 | (11) A utility may exit the sourcing agreement without | ||||||
15 | penalty if the clean coal SNG brownfield facility does not | ||||||
16 | commence construction by July 1, 2014. | ||||||
17 | (12) A utility is responsible to pay only the | ||||||
18 | Commission determined unit price cost of SNG that is | ||||||
19 | purchased by the utility. Nothing in the sourcing agreement | ||||||
20 | will obligate a utility to invest capital in a clean coal | ||||||
21 | SNG brownfield facility. | ||||||
22 | (13) The quality of SNG must, at a minimum, be | ||||||
23 | equivalent to the equality required for an interstate | ||||||
24 | pipeline gas before a utility is required to accept and pay | ||||||
25 | for SNG gas. | ||||||
26 | (14) Nothing in the sourcing agreement will require a |
| |||||||
| |||||||
1 | utility to construct any facilities to accept delivery of | ||||||
2 | SNG. Provided, however, if a utility is required by law or | ||||||
3 | otherwise elects to connect the clean coal SNG brownfield | ||||||
4 | facility to an interstate pipeline, then the utility shall | ||||||
5 | be entitled to recover pursuant to its tariffs all just and | ||||||
6 | reasonable costs that are prudently incurred. Any costs | ||||||
7 | incurred by the utility to receive, deliver, manage, or | ||||||
8 | otherwise accommodate purchases under the SNG sourcing | ||||||
9 | agreement will be fully recoverable through a utility's | ||||||
10 | purchased gas adjustment clause rider mechanism. | ||||||
11 | (15) Remedies for the clean coal SNG brownfield | ||||||
12 | facility's failure to deliver a designated amount for a | ||||||
13 | designated period. | ||||||
14 | (h-2) Consumer protection reserve account. The clean coal | ||||||
15 | SNG brownfield facility shall guarantee a minimum of | ||||||
16 | $100,000,000 in consumer savings, calculated in real 2010 | ||||||
17 | dollars at the conclusion of the term of the sourcing agreement | ||||||
18 | by comparing the delivered SNG price to the Chicago City-gate | ||||||
19 | price on a weighted daily basis for each day over the entire | ||||||
20 | term of the sourcing agreement. Prior to the clean coal SNG | ||||||
21 | brownfield facility issuing a notice to proceed to | ||||||
22 | construction, the clean coal SNG brownfield facility shall | ||||||
23 | establish a consumer protection reserve account for the benefit | ||||||
24 | of the retail customers of the utilities that have entered into | ||||||
25 | sourcing agreements with the clean coal SNG brownfield facility | ||||||
26 | pursuant to subsection (h-1), with cash principal in the amount |
| |||||||
| |||||||
1 | of $150,000,000. Such cash principal shall only be recovered | ||||||
2 | through the consumer protection reserve account and not as a | ||||||
3 | cost to be recovered in the delivered SNG price pursuant to | ||||||
4 | subsection (h-3) of this Section. The consumer protection | ||||||
5 | reserve account shall be maintained and administered by an | ||||||
6 | independent trustee that is mutually agreed upon by the clean | ||||||
7 | coal SNG brownfield facility, the utilities, and the Commission | ||||||
8 | in an interest-bearing account in accordance with the | ||||||
9 | following: | ||||||
10 | (1) The clean coal SNG brownfield facility monthly | ||||||
11 | shall calculate the difference between the monthly | ||||||
12 | delivered SNG price and the Chicago City-gate price, by | ||||||
13 | comparing the delivered SNG price, which shall include the | ||||||
14 | cost of transportation to the delivery point, if any, to | ||||||
15 | the Chicago City-gate price on a weighted daily basis for | ||||||
16 | each day of the prior month based upon a mutually-agreed | ||||||
17 | upon published index. | ||||||
18 | (2) During the first 2 years of operation of the | ||||||
19 | facility: | ||||||
20 | (A) to the extent the monthly delivered SNG price, | ||||||
21 | is greater than the Chicago City-gate price, the | ||||||
22 | consumer protection reserve account shall be used to | ||||||
23 | provide a credit to reduce the SNG price by an amount | ||||||
24 | equal to the difference between the monthly delivered | ||||||
25 | SNG price and the Chicago City-gate price; and | ||||||
26 | (B) to the extent the monthly delivered SNG price |
| |||||||
| |||||||
1 | is less than or equal to the Chicago City-gate price, | ||||||
2 | the utility shall credit the difference between the | ||||||
3 | monthly delivered SNG price and the monthly Chicago | ||||||
4 | City-gate price, if any, to the consumer protection | ||||||
5 | reserve account. Such credit issued pursuant to this | ||||||
6 | paragraph (B) shall be deemed prudent and reasonable | ||||||
7 | and not subject to a Commission prudence review; | ||||||
8 | (3) After 2 years of operation of the facility, and | ||||||
9 | monthly, on an on-going basis, thereafter: | ||||||
10 | (A) to the extent that the monthly delivered SNG | ||||||
11 | price is less than or equal to the Chicago City-gate | ||||||
12 | price, calculated using the weighted average of the | ||||||
13 | daily Chicago City-gate price on a daily basis over the | ||||||
14 | entire month, the utility shall credit the difference, | ||||||
15 | if any, to the consumer protection reserve account. | ||||||
16 | Such credit issued pursuant to this subparagraph (A) | ||||||
17 | shall be deemed prudent and reasonable and not subject | ||||||
18 | to a Commission prudence review; | ||||||
19 | (B) any amounts in the consumer protection reserve | ||||||
20 | account in excess of $100,000,000 shall be distributed | ||||||
21 | to the clean coal SNG brownfield facility; provided, | ||||||
22 | however, that under no circumstances shall the total | ||||||
23 | cumulative amount distributed to the clean coal SNG | ||||||
24 | brownfield facility under this subparagraph (B) exceed | ||||||
25 | $150,000,000; | ||||||
26 | (C) to the extent the monthly delivered SNG price |
| |||||||
| |||||||
1 | is greater than the Chicago City-gate price, after | ||||||
2 | distributing the amounts pursuant to subparagraph (B) | ||||||
3 | of this paragraph (3), if any, the consumer protection | ||||||
4 | reserve account shall be used to provide a credit to | ||||||
5 | reduce the SNG price by an amount equal to the | ||||||
6 | difference between the monthly delivered SNG price and | ||||||
7 | the Chicago City-gate price; | ||||||
8 | (D) if retail customers have realized net consumer | ||||||
9 | savings, calculated by comparing the delivered SNG | ||||||
10 | price to the weighted average of the daily Chicago | ||||||
11 | City-gate price on a daily basis over the entire term | ||||||
12 | of the sourcing agreement to date, then after | ||||||
13 | distributing the amounts pursuant to subparagraphs (B) | ||||||
14 | and (C) of this paragraph (3), 50% of any additional | ||||||
15 | amounts in the consumer protection reserve account in | ||||||
16 | excess of $100,000,000 shall be distributed to the | ||||||
17 | clean coal SNG brownfield facility, with the remaining | ||||||
18 | 50% of any such additional amounts being credited to | ||||||
19 | retail customers; provided, however, that if retail | ||||||
20 | customers have not realized such net consumer savings, | ||||||
21 | no such distribution shall be made to the clean coal | ||||||
22 | SNG brownfield facility, and 100% of such additional | ||||||
23 | amounts shall be credited to the retail customers to | ||||||
24 | the extent the consumer protection reserve account | ||||||
25 | exceeds $100,000,000. | ||||||
26 | (4) 50% of all additional net revenue, defined as |
| |||||||
| |||||||
1 | miscellaneous net revenue after cost allowance for costs | ||||||
2 | associated with additional net revenue that are not | ||||||
3 | otherwise recoverable pursuant to subsection (h-3) of this | ||||||
4 | Section, including net revenue from sales of substitute | ||||||
5 | natural gas derived from the facility above the nameplate | ||||||
6 | capacity of the facility and other by-products produced by | ||||||
7 | the facility, shall be credited to the consumer protection | ||||||
8 | reserve account. | ||||||
9 | (5) At the conclusion of the term of the sourcing | ||||||
10 | agreement, to the extent retail customers have not saved | ||||||
11 | the minimum of $100,000,000 in consumer savings as | ||||||
12 | guaranteed in this subsection (h-2), amounts in the | ||||||
13 | consumer protection reserve account shall be credited to | ||||||
14 | retail customers to the extent the retail customers have | ||||||
15 | saved the minimum of $100,000,000; 50% of any additional | ||||||
16 | amounts in the consumer protection reserve account shall be | ||||||
17 | distributed to the company, and the remaining 50% shall be | ||||||
18 | distributed to retail customers. | ||||||
19 | (6) If, at the conclusion of the term of the sourcing | ||||||
20 | agreement, the customers have not saved the minimum | ||||||
21 | $100,000,000 in savings as guaranteed in this subsection | ||||||
22 | (h-2) and the consumer protection reserve account has been | ||||||
23 | depleted, then the clean coal SNG brownfield facility shall | ||||||
24 | be liable for any remaining amount owed to the retail | ||||||
25 | customers to the extent that the customers are provided | ||||||
26 | with the $100,000,000 in savings as guaranteed in this |
| |||||||
| |||||||
1 | subsection (h-2). The retail customers shall have first | ||||||
2 | priority in recovering that debt above any creditors, | ||||||
3 | except the original senior secured lender to the extent | ||||||
4 | that the original senior secured lender has any senior | ||||||
5 | secured debt outstanding, including any clean coal SNG | ||||||
6 | brownfield facility parent companies or affiliates. | ||||||
7 | (7) The clean coal SNG brownfield facility, the | ||||||
8 | utilities, and the trustee shall work together to take | ||||||
9 | commercially reasonable steps to minimize the tax impact of | ||||||
10 | these transactions, while preserving the consumer | ||||||
11 | benefits. | ||||||
12 | (8) The clean coal SNG brownfield facility shall each | ||||||
13 | month, starting in the facility's first year of commercial | ||||||
14 | operation, file with the Commission, in such form as the | ||||||
15 | Commission shall require, a report as to the consumer | ||||||
16 | protection reserve account. The monthly report must | ||||||
17 | contain the following information: | ||||||
18 | (A) the extent the monthly delivered SNG price is | ||||||
19 | greater than, less than, or equal to the Chicago | ||||||
20 | City-gate price; | ||||||
21 | (B) the amount credited or debited to the consumer | ||||||
22 | protection reserve account during the month; | ||||||
23 | (C) the amounts credited to consumers and | ||||||
24 | distributed to the clean coal SNG brownfield facility | ||||||
25 | during the month; | ||||||
26 | (D) the total amount of the consumer protection |
| |||||||
| |||||||
1 | reserve account at the beginning and end of the month; | ||||||
2 | (E) the total amount of consumer savings to date; | ||||||
3 | and | ||||||
4 | (F) any other additional information the | ||||||
5 | Commission shall require. | ||||||
6 | When any report is erroneous or defective or appears to | ||||||
7 | the Commission to be erroneous or defective, the Commission | ||||||
8 | may notify the clean coal SNG brownfield facility to amend | ||||||
9 | the report within 30 days, and, before or after the | ||||||
10 | termination of the 30-day period, the Commission may | ||||||
11 | examine the trustee of the consumer protection reserve | ||||||
12 | account or the officers, agents, employees, books, | ||||||
13 | records, or accounts of the clean coal SNG brownfield | ||||||
14 | facility and correct such items in the report as upon such | ||||||
15 | examination the Commission may find defective or | ||||||
16 | erroneous. All reports shall be under oath. | ||||||
17 | All reports made to the Commission by the clean coal | ||||||
18 | SNG brownfield and the contents of the reports shall be | ||||||
19 | open to public inspection and shall be deemed a public | ||||||
20 | record under the Freedom of Information Act. Such reports | ||||||
21 | shall be preserved in the office of the Commission. The | ||||||
22 | Commission shall publish an annual summary of the reports | ||||||
23 | prior to February 1 of the following year. The annual | ||||||
24 | summary shall be made available to the public on the | ||||||
25 | Commission's website and shall be submitted to the General | ||||||
26 | Assembly. |
| |||||||
| |||||||
1 | Any facility that fails to file a report required under | ||||||
2 | this paragraph (8) to the Commission within the time | ||||||
3 | specified or to make specific answer to any question | ||||||
4 | propounded by the Commission within 30 days from the time | ||||||
5 | it is lawfully required to do so, or within such further | ||||||
6 | time not to exceed 90 days as may in its discretion be | ||||||
7 | allowed by the Commission, shall pay a penalty of $500 to | ||||||
8 | the Commission for each day it is in default. | ||||||
9 | Any person who willfully makes any false report to the | ||||||
10 | Commission or to any member, officer, or employee thereof, | ||||||
11 | any person who willfully in a report withholds or fails to | ||||||
12 | provide material information to which the Commission is | ||||||
13 | entitled under this paragraph (8) and which information is | ||||||
14 | either required to be filed by statute, rule, regulation, | ||||||
15 | order, or decision of the Commission or has been requested | ||||||
16 | by the Commission, and any person who willfully aids or | ||||||
17 | abets such person shall be guilty of a Class A misdemeanor. | ||||||
18 | (h-3) Recoverable costs and revenue by the clean coal SNG | ||||||
19 | brownfield facility. | ||||||
20 | (1) A capital recovery charge approved by the | ||||||
21 | Commission shall be recoverable by the clean coal SNG | ||||||
22 | brownfield facility under a sourcing agreement. The | ||||||
23 | capital recovery charge shall be comprised of capital costs | ||||||
24 | and a reasonable rate of return. "Capital costs" means | ||||||
25 | costs to be incurred in connection with the construction | ||||||
26 | and development of a facility, as defined Section 1-10 of |
| |||||||
| |||||||
1 | the Illinois Power Agency Act, and such other costs as the | ||||||
2 | Capital Development Board deems appropriate to be | ||||||
3 | recovered in the capital recovery charge. | ||||||
4 | (A) Capital costs. The Capital Development Board | ||||||
5 | shall calculate a range of capital costs that it | ||||||
6 | believes would be reasonable for the clean coal SNG | ||||||
7 | brownfield facility to recover under the sourcing | ||||||
8 | agreement. In making this determination, the Capital | ||||||
9 | Development Board shall review the final draft of the | ||||||
10 | sourcing agreement and the rate of return approved by | ||||||
11 | the Commission. In addition, the Capital development | ||||||
12 | Board may: (i) review the facility cost report, if any, | ||||||
13 | of the clean coal SNG brownfield facility; (ii) consult | ||||||
14 | as much as it deems necessary with the clean coal SNG | ||||||
15 | brownfield facility; and (iii) conduct whatever | ||||||
16 | research and investigation it deems necessary. | ||||||
17 | The Capital Development Board shall retain an engineering | ||||||
18 | expert to assist in determining both the range of | ||||||
19 | capital costs and the range of operations and | ||||||
20 | maintenance costs that it believes would be reasonable | ||||||
21 | for the clean coal SNG brownfield facility to recover | ||||||
22 | under the sourcing agreement. Provided, however, that | ||||||
23 | such expert shall: (i) not have been involved in the | ||||||
24 | clean coal SNG brownfield facility's facility cost | ||||||
25 | report, if any, (ii) not own or control any direct or | ||||||
26 | indirect interest in the initial clean coal facility; |
| |||||||
| |||||||
1 | and (iii) have no contractual relationship with the | ||||||
2 | clean coal SNG brownfield facility. In order to qualify | ||||||
3 | as an independent expert, a person or company must | ||||||
4 | have: | ||||||
5 | (i) direct previous experience conducting | ||||||
6 | front-end engineering and design studies for | ||||||
7 | large-scale energy facilities and administering | ||||||
8 | large-scale energy operations and maintenance | ||||||
9 | contracts, which may be particularized to the | ||||||
10 | specific type of financing associated with the | ||||||
11 | clean coal SNG brownfield facility; | ||||||
12 | (ii) an advanced degree in economics, | ||||||
13 | mathematics, engineering, or a related area of | ||||||
14 | study; | ||||||
15 | (iii) ten years of experience in the energy | ||||||
16 | sector, including construction and risk management | ||||||
17 | experience; | ||||||
18 | (iv) expertise in assisting companies with | ||||||
19 | obtaining financing for large-scale energy | ||||||
20 | projects, which may be particularized to the | ||||||
21 | specific type of financing associated with the | ||||||
22 | clean coal SNG brownfield facility; | ||||||
23 | (v) expertise in operations and maintenance | ||||||
24 | which may be particularized to the specific type of | ||||||
25 | operations and maintenance associated with the | ||||||
26 | clean coal SNG brownfield facility; |
| |||||||
| |||||||
1 | (vi) expertise in credit and contract | ||||||
2 | protocols; | ||||||
3 | (vii) adequate resources to perform and | ||||||
4 | fulfill the required functions and | ||||||
5 | responsibilities; and | ||||||
6 | (viii) the absence of a conflict of interest | ||||||
7 | and inappropriate bias for or against an affected | ||||||
8 | gas utility or the clean coal SNG brownfield | ||||||
9 | facility. | ||||||
10 | The clean coal SNG brownfield facility and the | ||||||
11 | Illinois Power Agency shall cooperate with the Capital | ||||||
12 | Development Board in any investigation it deems | ||||||
13 | necessary. The Capital Development Board shall make | ||||||
14 | its final determination of the range of capital costs | ||||||
15 | confidentially and shall submit that range to the | ||||||
16 | Commission in a confidential filing within 120 days | ||||||
17 | after the effective date of this amendatory Act of the | ||||||
18 | 96th General Assembly. The clean coal SNG brownfield | ||||||
19 | facility shall submit to the Commission its estimate of | ||||||
20 | the capital costs to be recovered under the sourcing | ||||||
21 | agreement. Only after the clean coal SNG brownfield | ||||||
22 | facility has submitted this estimate shall the | ||||||
23 | Commission publicly announce the range of capital | ||||||
24 | costs submitted by the Capital Development Board. | ||||||
25 | In the event that the estimate submitted by the | ||||||
26 | clean coal SNG brownfield facility is within or below |
| |||||||
| |||||||
1 | the range submitted by the Capital Development Board, | ||||||
2 | the clean coal SNG brownfield facility's estimate | ||||||
3 | shall be approved by the Commission as the amount of | ||||||
4 | capital costs to be recovered under the sourcing | ||||||
5 | agreement. In the event that the estimate submitted by | ||||||
6 | the clean coal SNG brownfield facility is above the | ||||||
7 | range submitted by the Capital Development Board, the | ||||||
8 | amount of capital costs at the lowest end of the range | ||||||
9 | submitted by the Capital Development Board shall be | ||||||
10 | approved by the Commission as the amount of capital | ||||||
11 | costs to be recovered under the sourcing agreement. | ||||||
12 | Within 15 days after the Capital Development Board has | ||||||
13 | submitted its range and the clean coal SNG brownfield | ||||||
14 | facility has submitted its estimate, the Commission | ||||||
15 | shall approve the capital costs for the clean coal SNG | ||||||
16 | brownfield facility. | ||||||
17 | The Capital Development Board shall monitor the | ||||||
18 | construction of the clean coal SNG brownfield facility | ||||||
19 | for the full duration of construction to assess | ||||||
20 | potential cost overruns. The Capital Development | ||||||
21 | Board, in its discretion, may retain an expert to | ||||||
22 | facilitate such monitoring. The clean coal SNG | ||||||
23 | brownfield facility shall pay a reasonable fee as | ||||||
24 | required by the Capital Development Board for the | ||||||
25 | Capital Development Board's services under this | ||||||
26 | subsection (h-3) to be deposited into the Capital |
| |||||||
| |||||||
1 | Development Board Revolving Fund, and such fee shall | ||||||
2 | not be passed through to a utility or its customers. If | ||||||
3 | an expert is retained by the Capital Development Board | ||||||
4 | for monitoring of construction, then the clean coal SNG | ||||||
5 | brownfield facility must pay for the expert's | ||||||
6 | reasonable fees and such costs shall not be passed | ||||||
7 | through to a utility or its customers. | ||||||
8 | (B) Rate of Return. No later than 30 days after the | ||||||
9 | date on which the Illinois Power Agency submits a final | ||||||
10 | draft sourcing agreement, the Commission shall hold a | ||||||
11 | public hearing to determine the rate of return to be | ||||||
12 | recovered under the sourcing agreement. Rate of return | ||||||
13 | shall be comprised of the clean coal SNG brownfield | ||||||
14 | facility's actual cost of debt, including | ||||||
15 | mortgage-style amortization, and a reasonable return | ||||||
16 | on equity. The Commission shall post notice of the | ||||||
17 | hearing on its website no later than 10 days prior to | ||||||
18 | the date of the hearing. The Commission shall provide | ||||||
19 | the public and all interested parties, including the | ||||||
20 | gas utilities, the Attorney General, and the Illinois | ||||||
21 | Power Agency, an opportunity to be heard. | ||||||
22 | In determining the return on equity, the | ||||||
23 | Commission shall select a commercially reasonable | ||||||
24 | return on equity taking into account the return on | ||||||
25 | equity being received by developers of similar | ||||||
26 | facilities in or outside of Illinois, the need to |
| |||||||
| |||||||
1 | balance an incentive for clean-coal technology with | ||||||
2 | the need to protect ratepayers from high gas prices, | ||||||
3 | the risks being borne by the clean coal SNG brownfield | ||||||
4 | facility in the final draft sourcing agreement, and any | ||||||
5 | other information that the Commission may deem | ||||||
6 | relevant. The Commission may establish a return on | ||||||
7 | equity that varies with the amount of savings, if any, | ||||||
8 | to customers during the term of the sourcing agreement, | ||||||
9 | comparing the delivered SNG price to a daily weighted | ||||||
10 | average price of natural gas, based upon an index. The | ||||||
11 | Illinois Power Agency shall recommend a return on | ||||||
12 | equity to the Commission using the same criteria. | ||||||
13 | Within 60 days after receiving the final draft sourcing | ||||||
14 | agreement from the Illinois Power Agency, the | ||||||
15 | Commission shall approve the rate of return for the | ||||||
16 | clean coal brownfield facility. Within 30 days after | ||||||
17 | obtaining debt financing for the clean coal SNG | ||||||
18 | brownfield facility, the clean coal SNG brownfield | ||||||
19 | facility shall file a notice with the Commission | ||||||
20 | identifying the actual cost of debt. | ||||||
21 | (2) Operations and maintenance costs approved by the | ||||||
22 | Commission shall be recoverable by the clean coal SNG | ||||||
23 | brownfield facility under the sourcing agreement. The | ||||||
24 | operations and maintenance costs mean costs that have been | ||||||
25 | incurred for the administration, supervision, operation, | ||||||
26 | maintenance, preservation, and protection of the clean |
| |||||||
| |||||||
1 | coal SNG brownfield facility's physical plant. | ||||||
2 | The Capital Development Board shall calculate a range | ||||||
3 | of operations and maintenance costs that it believes would | ||||||
4 | be reasonable for the clean coal SNG brownfield facility to | ||||||
5 | recover under the sourcing agreement. In making this | ||||||
6 | determination, the Capital Development Board shall review | ||||||
7 | the final draft of the sourcing agreement and the rate of | ||||||
8 | return approved by the Commission. In addition, the Capital | ||||||
9 | Development Board may: (i) review the facility cost report, | ||||||
10 | if any, of the clean coal SNG brownfield facility; (ii) | ||||||
11 | consult as much as it deems necessary with the clean coal | ||||||
12 | SNG brownfield facility; and (iii) conduct whatever | ||||||
13 | research and investigation it deems necessary. As set forth | ||||||
14 | in subparagraph (A) of paragraph (1) of this subsection | ||||||
15 | (h-3), the Capital Development Board shall retain an | ||||||
16 | independent engineering expert to assist in determining | ||||||
17 | both the range of operations and maintenance costs that it | ||||||
18 | believes would be reasonable for the clean coal SNG | ||||||
19 | brownfield to recover under the sourcing agreement. The | ||||||
20 | clean coal SNG brownfield facility and the Illinois Power | ||||||
21 | Agency shall cooperate with the Capital Development Board | ||||||
22 | in any investigation it deems necessary. The Capital | ||||||
23 | Development Board shall make its final determination of the | ||||||
24 | range of operations and maintenance costs confidentially | ||||||
25 | and shall submit that range to the Commission in a | ||||||
26 | confidential filing within 120 days after the effective |
| |||||||
| |||||||
1 | date of this amendatory Act of the 96th General Assembly. | ||||||
2 | The clean coal SNG brownfield facility shall submit to | ||||||
3 | the Commission its estimate of the operations and | ||||||
4 | maintenance costs to be recovered under the sourcing | ||||||
5 | agreement. Only after the clean coal SNG brownfield | ||||||
6 | facility has submitted this estimate shall the Commission | ||||||
7 | publicly announce the range of operations and maintenance | ||||||
8 | costs submitted by the Capital Development Board. In the | ||||||
9 | event that the estimate submitted by the clean coal SNG | ||||||
10 | brownfield facility is within or below the range submitted | ||||||
11 | by the Capital Development Board, the clean coal SNG | ||||||
12 | brownfield facility's estimate shall be approved by the | ||||||
13 | Commission as the amount of operations and maintenance | ||||||
14 | costs to be recovered under the sourcing agreement. In the | ||||||
15 | event that the estimate submitted by the clean coal SNG | ||||||
16 | brownfield facility is above the range submitted by the | ||||||
17 | Capital Development Board, the amount of operations and | ||||||
18 | maintenance costs at the lowest end of the range submitted | ||||||
19 | by the Capital Development Board shall be approved by the | ||||||
20 | Commission as the amount of operations and maintenance | ||||||
21 | costs to be recovered under the sourcing agreement. Within | ||||||
22 | 15 days after the Capital Development Board has submitted | ||||||
23 | its range and the clean coal SNG brownfield facility has | ||||||
24 | submitted its estimate, the Commission shall approve the | ||||||
25 | operations and maintenance costs for the clean coal SNG | ||||||
26 | brownfield facility. |
| |||||||
| |||||||
1 | The clean coal SNG brownfield facility shall pay for | ||||||
2 | the independent engineering expert's reasonable fees and | ||||||
3 | such costs shall not be passed through to a utility or its | ||||||
4 | customers. The clean coal SNG brownfield facility shall pay | ||||||
5 | a reasonable fee as required by the Capital Development | ||||||
6 | Board for the Capital Development Board's services under | ||||||
7 | this subsection (h-3) to be deposited into the Capital | ||||||
8 | Development Board Revolving Fund, and such fee shall not be | ||||||
9 | passed through to a utility or its customers. | ||||||
10 | (3) Sequestration costs approved by the Commission | ||||||
11 | shall be recoverable by the clean coal SNG brownfield | ||||||
12 | facility. "Sequestration costs" means costs to be incurred | ||||||
13 | by the clean coal SNG brownfield facility in accordance | ||||||
14 | with its Commission-approved carbon capture and | ||||||
15 | sequestration plan to: | ||||||
16 | (A) capture carbon dioxide; | ||||||
17 | (B) build, operate, and maintain a sequestration | ||||||
18 | site in which carbon dioxide may be injected; | ||||||
19 | (C) build, operate, and maintain a carbon dioxide | ||||||
20 | pipeline; and | ||||||
21 | (D) transport the carbon dioxide to the | ||||||
22 | sequestration site or a pipeline. | ||||||
23 | The Commission shall assess the prudency of the | ||||||
24 | sequestration costs for the clean coal SNG brownfield | ||||||
25 | facility before construction commences at the | ||||||
26 | sequestration site or pipeline. Any revenues the clean coal |
| |||||||
| |||||||
1 | SNG brownfield facility receives as a result of the | ||||||
2 | capture, transportation, or sequestration of carbon | ||||||
3 | dioxide shall be first credited against all sequestration | ||||||
4 | costs, with the positive balance, if any, treated as | ||||||
5 | additional net revenue. | ||||||
6 | The Commission may, in its discretion, retain an expert | ||||||
7 | to assist in its review of sequestration costs. The clean | ||||||
8 | coal SNG brownfield facility shall pay for the expert's | ||||||
9 | reasonable fees if an expert is retained by the Commission, | ||||||
10 | and such costs shall not be passed through to a utility or | ||||||
11 | its customers. Once made, the Commission's determination | ||||||
12 | of the amount of recoverable sequestration costs shall not | ||||||
13 | be increased unless the clean coal SNG brownfield facility | ||||||
14 | can show by clear and convincing evidence that (i) the | ||||||
15 | costs were not reasonably foreseeable; (ii) the costs were | ||||||
16 | due to circumstances beyond the clean coal SNG brownfield | ||||||
17 | facility's control; and (iii) the clean coal SNG brownfield | ||||||
18 | facility took all reasonable steps to mitigate the costs. | ||||||
19 | If the Commission determines that sequestration costs may | ||||||
20 | be increased, the Commission shall provide for notice and a | ||||||
21 | public hearing for approval of the increased sequestration | ||||||
22 | costs. | ||||||
23 | (4) Actual delivered and processed fuel costs shall be | ||||||
24 | set by the Illinois Power Agency through a SNG feedstock | ||||||
25 | procurement, pursuant to Sections 1-20, 1-77, and 1-78 of | ||||||
26 | the Illinois Power Agency Act, to be performed at least |
| |||||||
| |||||||
1 | every 5 years and purchased by the clean coal SNG | ||||||
2 | brownfield facility pursuant to feedstock procurement | ||||||
3 | contracts developed by the Illinois Power Agency, with coal | ||||||
4 | comprising at least 50% of the total feedstock over the | ||||||
5 | term of the sourcing agreement and petroleum coke | ||||||
6 | comprising the remainder of the SNG feedstock. If the | ||||||
7 | Commission fails to approve a feedstock procurement plan or | ||||||
8 | fails to approve the results of a feedstock procurement | ||||||
9 | event, then the fuel shall be purchased by the company | ||||||
10 | month-by-month on the spot market and those actual | ||||||
11 | delivered and processed fuel costs shall be recoverable | ||||||
12 | under the sourcing agreement. If a supplier defaults under | ||||||
13 | the terms of a procurement contract, then the Illinois | ||||||
14 | Power Agency shall immediately initiate a feedstock | ||||||
15 | procurement process to obtain a replacement supply, and, | ||||||
16 | prior to the conclusion of that process, fuel shall be | ||||||
17 | purchased by the company month-by-month on the spot market | ||||||
18 | and those actual delivered and processed fuel costs shall | ||||||
19 | be recoverable under the sourcing agreement. | ||||||
20 | (5) Taxes and fees imposed by the federal government, | ||||||
21 | the State, or any unit of local government applicable to | ||||||
22 | the clean coal SNG brownfield facility, excluding income | ||||||
23 | tax, shall be recoverable by the clean coal SNG brownfield | ||||||
24 | facility under the sourcing agreement to the extent such | ||||||
25 | taxes and fees were not applicable to the facility on the | ||||||
26 | date of this amendatory Act of the 96th General Assembly. |
| |||||||
| |||||||
1 | (6) The actual transportation costs, in accordance | ||||||
2 | with the applicable utility's tariffs, and third-party | ||||||
3 | marketer costs incurred by the company, if any, associated | ||||||
4 | with transporting the SNG from the clean coal SNG | ||||||
5 | brownfield facility to the Chicago City-gate to sell such | ||||||
6 | SNG into the natural gas markets shall be recoverable under | ||||||
7 | the sourcing agreement. | ||||||
8 | (7) Unless otherwise provided, within 30 days after a | ||||||
9 | decision of the Commission on recoverable costs under this | ||||||
10 | Section, any interested party to the Commission's decision | ||||||
11 | may apply for a rehearing with respect to the decision. The | ||||||
12 | Commission shall receive and consider the application for | ||||||
13 | rehearing and shall grant or deny the application in whole | ||||||
14 | or in part within 20 days after the date of the receipt of | ||||||
15 | the application by the Commission. If no rehearing is | ||||||
16 | applied for within the required 30 days or an application | ||||||
17 | for rehearing is denied, then the Commission decision shall | ||||||
18 | be final. If an application for rehearing is granted, then | ||||||
19 | the Commission shall hold a rehearing within 30 days after | ||||||
20 | granting the application. The decision of the Commission | ||||||
21 | upon rehearing shall be final. | ||||||
22 | Any person affected by a decision of the Commission | ||||||
23 | under this subsection (h-3) may have the decision reviewed | ||||||
24 | only under and in accordance with the Administrative Review | ||||||
25 | Law. Unless otherwise provided, the provisions of the | ||||||
26 | Administrative Review Law, all amendments and |
| |||||||
| |||||||
1 | modifications to that Law, and the rules adopted pursuant | ||||||
2 | to that Law shall apply to and govern all proceedings for | ||||||
3 | the judicial review of final administrative decisions of | ||||||
4 | the Commission under this subsection (h-3). The term | ||||||
5 | "administrative decision" is defined as in Section 3-101 of | ||||||
6 | the Code of Civil Procedure. | ||||||
7 | (8) The Capital Development Board shall adopt and make | ||||||
8 | public a policy detailing the process for retaining experts | ||||||
9 | under this Section. Any experts retained to assist with | ||||||
10 | calculating the range of capital costs or operations and | ||||||
11 | maintenance costs shall be retained no later than 45 days | ||||||
12 | after the effective date of this amendatory Act of the 96th | ||||||
13 | General Assembly. | ||||||
14 | (h-4) No later than 60 days after the Illinois Power Agency | ||||||
15 | submits the final draft sourcing agreement pursuant to | ||||||
16 | subsection (h-1), the Commission shall approve a sourcing | ||||||
17 | agreement containing the capital costs, rate of return, and | ||||||
18 | operations and maintenance costs. Once the sourcing agreement | ||||||
19 | is approved, then the gas utility subject to that sourcing | ||||||
20 | agreement shall have 45 days after the date of the Commission's | ||||||
21 | approval to enter into the sourcing agreement. | ||||||
22 | (h-5) The Attorney General, on behalf of the people of the | ||||||
23 | State of Illinois, may specifically enforce the requirements of | ||||||
24 | this subsection (h-5). All contracts under subsection (h) of | ||||||
25 | this Act and all sourcing agreements under subsection (h-1) of | ||||||
26 | this Act, regardless of duration, shall require the owner of |
| |||||||
| |||||||
1 | any facility supplying SNG under the contract or sourcing | ||||||
2 | agreement to provide documentation to the Commission each year, | ||||||
3 | starting in the facility's first year of commercial operation, | ||||||
4 | accurately reporting the quantity of carbon dioxide emissions | ||||||
5 | from the facility that have been captured and sequestered and | ||||||
6 | reporting any quantities of carbon dioxide released from the | ||||||
7 | site or sites at which carbon dioxide emissions were | ||||||
8 | sequestered in prior years, based on continuous monitoring of | ||||||
9 | those sites. If, in any year, the owner of the facility | ||||||
10 | described in subsection (h) of this Act fails to demonstrate | ||||||
11 | that the facility captured and sequestered at least 90% of the | ||||||
12 | total carbon dioxide emissions that the facility would | ||||||
13 | otherwise emit or that sequestration of emissions from prior | ||||||
14 | years has failed, resulting in the release of carbon dioxide | ||||||
15 | into the atmosphere, then the owner of the facility must offset | ||||||
16 | excess emissions. Any such carbon dioxide offsets must be | ||||||
17 | permanent, additional, verifiable, real, located within the | ||||||
18 | State of Illinois, and legally and practicably enforceable; | ||||||
19 | provided that the owner of the facility described in subsection | ||||||
20 | (h) of this Act shall not be obligated to acquire carbon | ||||||
21 | dioxide emission offsets to the extent that the cost of | ||||||
22 | acquiring such offsets would exceed $40 million in any given | ||||||
23 | year. No costs of any purchases of carbon offsets may be | ||||||
24 | recovered from a utility or its customers. All carbon offsets | ||||||
25 | purchased for this purpose must be permanently retired. | ||||||
26 | If, in any year, the owner of a clean coal SNG brownfield |
| |||||||
| |||||||
1 | facility fails to demonstrate that the clean coal SNG | ||||||
2 | brownfield facility captured and sequestered at least 85% of | ||||||
3 | the total carbon dioxide emissions that the facility would | ||||||
4 | otherwise emit, then the owner of the clean coal SNG brownfield | ||||||
5 | facility must pay a penalty of $20 per ton of excess carbon | ||||||
6 | emissions up to $20,000,000, which shall be deposited into the | ||||||
7 | Energy Efficiency Trust Fund and distributed pursuant to | ||||||
8 | subsection (b) of Section 6-6 of the Renewable Energy, Energy | ||||||
9 | Efficiency, and Coal Resources Development Law of 1997. | ||||||
10 | Provided, however, to the extent that the owner of the clean | ||||||
11 | coal SNG brownfield facility can demonstrate that the failure | ||||||
12 | was as a result of acts of God (including fire, flood, | ||||||
13 | earthquake, tornado, lightning, hurricane, or other natural | ||||||
14 | disaster); any amendment, modification, or abrogation of any | ||||||
15 | applicable law or regulation that would prevent performance; | ||||||
16 | war; invasion; act of foreign enemies; hostilities (regardless | ||||||
17 | of whether war is declared); civil war; rebellion; revolution; | ||||||
18 | insurrection; military or usurped power or confiscation; | ||||||
19 | terrorist activities; civil disturbances; riots; | ||||||
20 | nationalization; sabotage; blockage; or embargo, the owner of | ||||||
21 | the clean coal SNG brownfield facility shall not be subject to | ||||||
22 | a penalty if and only if (i) it promptly provides notice of its | ||||||
23 | failure to the Commission; (ii) as soon as practicable and | ||||||
24 | consistent with any order or direction from the Commission, it | ||||||
25 | submits to the Commission proposed modifications to its carbon | ||||||
26 | capture and sequestration plan; and (iii) it carries out its |
| |||||||
| |||||||
1 | proposed modifications in the manner and time directed by the | ||||||
2 | Commission. If the Commission finds that the facility has not | ||||||
3 | satisfied each of these requirements, then the facility shall | ||||||
4 | be subject to the penalty. If the owner of a clean coal SNG | ||||||
5 | brownfield facility demonstrates that the clean coal SNG | ||||||
6 | brownfield facility captured and sequestered more than 85% of | ||||||
7 | the total carbon emissions that the facility would otherwise | ||||||
8 | emit, the owner of the clean coal SNG brownfield facility may | ||||||
9 | credit such additional amounts to reduce the amount of any | ||||||
10 | future penalty to be paid. The penalty resulting from the | ||||||
11 | failure to capture and sequester at least the minimum amount of | ||||||
12 | carbon dioxide shall not be passed on to a utility or its | ||||||
13 | customers. | ||||||
14 | In addition to any penalty for the clean coal SNG | ||||||
15 | brownfield facility's failure to capture and sequester at least | ||||||
16 | its minimum sequestration requirement, the Attorney General, | ||||||
17 | on behalf of the People of the State of Illinois, shall bring | ||||||
18 | an action for specific performance of this subsection (h-5). | ||||||
19 | Such action may be filed in any circuit court in Illinois. By | ||||||
20 | entering into a sourcing agreement pursuant to subsection (h-1) | ||||||
21 | of this Section, the clean coal SNG brownfield facility agrees | ||||||
22 | to waive any objections to venue or to the jurisdiction of the | ||||||
23 | court with regard to the Attorney General's action for specific | ||||||
24 | performance under this subsection (h-5). | ||||||
25 | In addition, carbon dioxide emission credits equivalent to | ||||||
26 | 50% of the amount of credits associated with the required |
| |||||||
| |||||||
1 | sequestration of carbon dioxide from the facility must be | ||||||
2 | permanently retired. Compliance with the sequestration | ||||||
3 | requirements and the offset purchase requirements specified in | ||||||
4 | this subsection (h-5) for the facility described in subsection | ||||||
5 | (h) of this Act shall be assessed annually by an independent | ||||||
6 | expert retained by the owner of the facility described in | ||||||
7 | subsection (h) of this Act, with the advance written approval | ||||||
8 | of the Attorney General. Compliance with the sequestration | ||||||
9 | requirements and penalty requirements specified in this | ||||||
10 | subsection (h-5) for the clean coal SNG brownfield facility | ||||||
11 | shall be assessed annually by the Commission, which may in its | ||||||
12 | discretion retain an expert to facilitate its assessment. If an | ||||||
13 | expert is retained by the Commission, then the clean coal SNG | ||||||
14 | brownfield facility shall pay for the expert's reasonable fees, | ||||||
15 | and such costs shall not be passed through to a utility or its | ||||||
16 | customers. A SNG facility operating pursuant to this subsection | ||||||
17 | (h-5) shall not forfeit its designation as a clean coal SNG | ||||||
18 | facility or a clean coal SNG brownfield facility if the | ||||||
19 | facility fails to fully comply with the applicable carbon | ||||||
20 | sequestration requirements in any given year, provided the | ||||||
21 | requisite offsets are purchased or requisite penalties are | ||||||
22 | paid. | ||||||
23 | Responsibility for compliance with the sequestration | ||||||
24 | requirements specified in this subsection (h-5) for the clean | ||||||
25 | coal SNG brownfield facility shall reside solely with the clean | ||||||
26 | coal SNG brownfield facility regardless of whether the facility |
| |||||||
| |||||||
1 | has contracted with another party to capture, transport, or | ||||||
2 | sequester carbon dioxide. | ||||||
3 | (h-7) Sequestration permitting, oversight, and | ||||||
4 | investigations. | ||||||
5 | (1) No clean coal facility or clean coal SNG brownfield | ||||||
6 | facility may transport or sequester carbon dioxide unless | ||||||
7 | the Commission approves the method of carbon dioxide | ||||||
8 | transportation or sequestration. Such approval shall be | ||||||
9 | required regardless of whether the facility has contracted | ||||||
10 | with another to transport or sequester the carbon dioxide. | ||||||
11 | Nothing in this subsection (h-7) shall release the owner or | ||||||
12 | operator of a carbon dioxide sequestration site or carbon | ||||||
13 | dioxide pipeline from any other permitting requirements | ||||||
14 | under applicable State and federal laws, statutes, rules, | ||||||
15 | or regulations. | ||||||
16 | (2) The Commission shall review carbon dioxide | ||||||
17 | transportation and sequestration methods proposed by a | ||||||
18 | clean coal facility or a clean coal SNG brownfield facility | ||||||
19 | and shall approve those methods it deems reasonable and | ||||||
20 | cost-effective. For purposes of this review, | ||||||
21 | "cost-effective" means a commercially reasonable price for | ||||||
22 | similar carbon dioxide transportation or sequestration | ||||||
23 | techniques. In determining whether sequestration is | ||||||
24 | reasonable and cost-effective, the Commission may consult | ||||||
25 | with the Illinois State Geological Survey and retain third | ||||||
26 | parties to assist in its determination, provided that such |
| |||||||
| |||||||
1 | third parties shall not own or control any direct or | ||||||
2 | indirect interest in the facility that is proposing the | ||||||
3 | carbon dioxide transportation or the carbon dioxide | ||||||
4 | sequestration method and shall have no contractual | ||||||
5 | relationship with that facility. If a third party is | ||||||
6 | retained by the Commission, then the facility proposing the | ||||||
7 | carbon dioxide transportation or sequestration method | ||||||
8 | shall pay for the expert's reasonable fees, and these costs | ||||||
9 | shall not be passed through to a utility or its customers. | ||||||
10 | No later than 6 months prior to the date upon which the | ||||||
11 | owner intends to commence construction of a clean coal | ||||||
12 | facility or the clean coal SNG brownfield facility, the | ||||||
13 | owner of the facility shall file with the Commission a | ||||||
14 | carbon dioxide transportation or sequestration plan. The | ||||||
15 | Commission shall hold a public hearing within 30 days after | ||||||
16 | receipt of the facility's carbon dioxide transportation or | ||||||
17 | sequestration plan. The Commission shall post notice of the | ||||||
18 | review on its website upon submission of a carbon dioxide | ||||||
19 | transportation or sequestration method and shall accept | ||||||
20 | written public comments. The Commission shall take the | ||||||
21 | comments into account when making its decision. | ||||||
22 | The Commission may not approve a carbon dioxide | ||||||
23 | sequestration method if the owner or operator of the | ||||||
24 | sequestration site has not received (i) an Underground | ||||||
25 | Injection Control permit from the Illinois Environmental | ||||||
26 | Protection Agency pursuant to the Environmental Protection |
| |||||||
| |||||||
1 | Act; (ii) an Underground Injection Control permit from the | ||||||
2 | Illinois Department of Natural Resources pursuant to the | ||||||
3 | Illinois Oil and Gas Act; or (iii) a permit similar to | ||||||
4 | items (i) or (ii) from the state in which the sequestration | ||||||
5 | site is located if the sequestration will take place | ||||||
6 | outside of Illinois. The Commission shall approve or deny | ||||||
7 | the carbon dioxide transportation or sequestration method | ||||||
8 | within 90 days after the receipt of all required | ||||||
9 | information. | ||||||
10 | (3) At least annually, the Illinois Environmental | ||||||
11 | Protection Agency shall inspect all carbon dioxide | ||||||
12 | sequestration sites in Illinois. The Illinois | ||||||
13 | Environmental Protection Agency may, as often as deemed | ||||||
14 | necessary, monitor and conduct investigations of those | ||||||
15 | sites. The owner or operator of the sequestration site must | ||||||
16 | cooperate with the Illinois Environmental Protection | ||||||
17 | Agency investigations of carbon dioxide sequestration | ||||||
18 | sites. | ||||||
19 | If the Illinois Environmental Protection Agency | ||||||
20 | determines at any time a site creates conditions that | ||||||
21 | warrant the issuance of a seal order under Section 34 of | ||||||
22 | the Environmental Protection Act, then the Illinois | ||||||
23 | Environmental Protection Agency shall seal the site | ||||||
24 | pursuant to the Environmental Protection Act. If the | ||||||
25 | Illinois Environmental Protection Agency determines at any | ||||||
26 | time a carbon dioxide sequestration site creates |
| |||||||
| |||||||
1 | conditions that warrant the institution of a civil action | ||||||
2 | for an injunction under Section 43 of the Environmental | ||||||
3 | Protection Act, then the Illinois Environmental Protection | ||||||
4 | Agency shall request the State's Attorney or the Attorney | ||||||
5 | General institute such action. The Illinois Environmental | ||||||
6 | Protection Agency shall provide notice of any such actions | ||||||
7 | as soon as possible on its website. The SNG facility shall | ||||||
8 | incur all reasonable costs associated with any such | ||||||
9 | inspection or monitoring of the sequestration sites, and | ||||||
10 | these costs shall not be recoverable from utilities or | ||||||
11 | their customers. | ||||||
12 | (4) At least annually, the Commission shall inspect all | ||||||
13 | carbon dioxide pipelines in Illinois that transport carbon | ||||||
14 | dioxide to ensure the safety and feasibility of those | ||||||
15 | pipelines. The Commission may, as often as deemed | ||||||
16 | necessary, monitor and conduct investigations of those | ||||||
17 | pipelines. The owner or operator of the pipeline must | ||||||
18 | cooperate with the Commission investigations of the carbon | ||||||
19 | dioxide pipelines. | ||||||
20 | In circumstances whereby a carbon dioxide pipeline | ||||||
21 | creates a substantial danger to the environment or to the | ||||||
22 | public health of persons or to the welfare of persons where | ||||||
23 | such danger is to the livelihood of such persons, the | ||||||
24 | State's Attorney or Attorney General, upon the request of | ||||||
25 | the Commission or on his or her own motion, may institute a | ||||||
26 | civil action for an immediate injunction to halt any |
| |||||||
| |||||||
1 | discharge or other activity causing or contributing to the | ||||||
2 | danger or to require such other action as may be necessary. | ||||||
3 | The court may issue an ex parte order and shall schedule a | ||||||
4 | hearing on the matter not later than 3 working days after | ||||||
5 | the date of injunction. The Commission shall provide notice | ||||||
6 | of any such actions as soon as possible on its website. The | ||||||
7 | SNG facility shall incur all reasonable costs associated | ||||||
8 | with any such inspection or monitoring of the sequestration | ||||||
9 | sites, and these costs shall not be recoverable from a | ||||||
10 | utility or its customers. | ||||||
11 | (h-9) The clean coal SNG brownfield facility shall have the | ||||||
12 | right to recover prudently incurred increased costs or reduced | ||||||
13 | revenue resulting from any new or amendatory legislation or | ||||||
14 | other action. The State of Illinois pledges that the State will | ||||||
15 | not enact any law or take any action to: | ||||||
16 | (1) break, or repeal the authority for, sourcing | ||||||
17 | agreements approved by the Commission and entered into | ||||||
18 | between public utilities and the clean coal SNG brownfield | ||||||
19 | facility; | ||||||
20 | (2) deny public utilities full cost recovery for their | ||||||
21 | costs incurred under those sourcing agreements; or | ||||||
22 | (3) deny the clean coal SNG brownfield facility full | ||||||
23 | cost and revenue recovery as provided under those sourcing | ||||||
24 | agreements that are recoverable pursuant to subsection | ||||||
25 | (h-3) of this Section. | ||||||
26 | These pledges are for the benefit of the parties to those |
| |||||||
| |||||||
1 | sourcing agreements and the issuers and holders of bonds or | ||||||
2 | other obligations issued or incurred to finance or refinance | ||||||
3 | the clean coal SNG brownfield facility. The clean coal SNG | ||||||
4 | brownfield facility is authorized to include and refer to these | ||||||
5 | pledges in any financing agreement into which it may enter in | ||||||
6 | regard to those sourcing agreements. | ||||||
7 | The State of Illinois retains and reserves all other rights | ||||||
8 | to enact new or amendatory legislation or take any other | ||||||
9 | action, without impairment of the right of the clean coal SNG | ||||||
10 | brownfield facility to recover prudently incurred increased | ||||||
11 | costs or reduced revenue resulting from the new or amendatory | ||||||
12 | legislation or other action, including, but not limited to, | ||||||
13 | such legislation or other action that would (i) directly or | ||||||
14 | indirectly raise the costs the clean coal SNG brownfield | ||||||
15 | facility must incur; (ii) directly or indirectly place | ||||||
16 | additional restrictions, regulations, or requirements on the | ||||||
17 | clean coal SNG brownfield facility; (iii) prohibit | ||||||
18 | sequestration in general or prohibit a specific sequestration | ||||||
19 | method or project; or (iv) increase minimum sequestration | ||||||
20 | requirements for the clean coal SNG brownfield facility to the | ||||||
21 | extent technically feasible. The clean coal SNG brownfield | ||||||
22 | facility shall have the right to recover prudently incurred | ||||||
23 | increased costs or reduced revenue resulting from the new or | ||||||
24 | amendatory legislation or other action as described in this | ||||||
25 | subsection (h-9). | ||||||
26 | (h-10) Contract costs for SNG incurred by an Illinois gas |
| |||||||
| |||||||
1 | utility are reasonable and prudent and recoverable through the | ||||||
2 | purchased gas adjustment clause and are not subject to review | ||||||
3 | or disallowance by the Commission. Contract costs are costs | ||||||
4 | incurred by the utility under the terms of a contract that | ||||||
5 | incorporates the terms stated in subsection (h) of this Section | ||||||
6 | as confirmed in writing by the Illinois Power Agency as set | ||||||
7 | forth in subsection (h-20) of this Section, which confirmation | ||||||
8 | shall be deemed conclusive, or as a consequence of or condition | ||||||
9 | to its performance under the contract, including (i) amounts | ||||||
10 | paid for SNG under the SNG contract and (ii) costs of | ||||||
11 | transportation and storage services of SNG purchased from | ||||||
12 | interstate pipelines under federally approved tariffs. Any | ||||||
13 | contract, the terms of which have been confirmed in writing by | ||||||
14 | the Illinois Power Agency as set forth in subsection (h-20) of | ||||||
15 | this Section and the performance of the parties under such | ||||||
16 | contract cannot be grounds for challenging prudence or cost | ||||||
17 | recovery by the utility through the purchased gas adjustment | ||||||
18 | clause, and in such cases, the Commission is directed not to | ||||||
19 | consider, and has no authority to consider, any attempted | ||||||
20 | challenges. | ||||||
21 | The contracts entered into by Illinois gas utilities | ||||||
22 | pursuant to subsection (h) of this Section shall provide that | ||||||
23 | the utility retains the right to terminate the contract without | ||||||
24 | further obligation or liability to any party if the contract | ||||||
25 | has been impaired as a result of any legislative, | ||||||
26 | administrative, judicial, or other governmental action that is |
| |||||||
| |||||||
1 | taken that eliminates all or part of the prudence protection of | ||||||
2 | this subsection (h-10) or denies the recoverability of all or | ||||||
3 | part of the contract costs through the purchased gas adjustment | ||||||
4 | clause. Should any Illinois gas utility exercise its right | ||||||
5 | under this subsection (h-10) to terminate the contract, all | ||||||
6 | contract costs incurred prior to termination are and will be | ||||||
7 | deemed reasonable, prudent, and recoverable as and when | ||||||
8 | incurred and not subject to review or disallowance by the | ||||||
9 | Commission. Any order, issued by the State requiring or | ||||||
10 | authorizing the discontinuation of the merchant function, | ||||||
11 | defined as the purchase and sale of natural gas by an Illinois | ||||||
12 | gas utility for the ultimate consumer in its service territory | ||||||
13 | shall include provisions necessary to prevent the impairment of | ||||||
14 | the value of any contract hereunder over its full term. | ||||||
15 | (h-11) All costs incurred by an Illinois gas utility in | ||||||
16 | procuring SNG, including procuring SNG from a clean coal SNG | ||||||
17 | brownfield facility or a third-party marketer pursuant to | ||||||
18 | subsection (h-1), are reasonable and prudent and recoverable | ||||||
19 | through the purchased gas adjustment clause and are not subject | ||||||
20 | to review or disallowance by the Commission. Sourcing agreement | ||||||
21 | costs are costs incurred by the utility under the terms of a | ||||||
22 | sourcing agreement that incorporates the terms stated in | ||||||
23 | subsection (h-1) of this Section as approved by the Commission | ||||||
24 | as set forth in subsection (h-4) of this Section, which | ||||||
25 | approval shall be deemed conclusive, or as a consequence of or | ||||||
26 | condition to its performance under the contract, including (i) |
| |||||||
| |||||||
1 | amounts paid for SNG under the SNG contract and (ii) costs of | ||||||
2 | transportation and storage services of SNG purchased from | ||||||
3 | interstate pipelines under federally approved tariffs. Any | ||||||
4 | sourcing agreement, the terms of which have been approved by | ||||||
5 | the Commission as set forth in subsection (h-4) of this | ||||||
6 | Section, and the performance of the parties under the sourcing | ||||||
7 | agreement cannot be grounds for challenging prudence or cost | ||||||
8 | recovery by the utility through the purchased gas adjustment | ||||||
9 | clause, and in these cases, the Commission is directed not to | ||||||
10 | consider, and has no authority to consider, any attempted | ||||||
11 | challenges. | ||||||
12 | (h-15) With respect to each contract entered into by the | ||||||
13 | company with an Illinois utility in accordance with the terms | ||||||
14 | stated in subsection (h) of this Section, within 60 days | ||||||
15 | following the completion of purchases of SNG, the Illinois | ||||||
16 | Power Agency shall conduct an analysis to determine (i) the | ||||||
17 | average contract SNG cost, which shall be calculated as the | ||||||
18 | total amount paid to a company for SNG over the contract term, | ||||||
19 | plus the cost to the utility of the required transportation and | ||||||
20 | storage services of SNG, divided by the total number of MMBtus | ||||||
21 | of SNG actually purchased under the utility contract; (ii) the | ||||||
22 | average natural gas purchase cost, which shall be calculated as | ||||||
23 | the total annual supply costs paid for natural gas (excluding | ||||||
24 | SNG) purchased by such utility over the contract term, plus the | ||||||
25 | costs of transportation and storage services of such natural | ||||||
26 | gas (excluding such costs for SNG), divided by the total number |
| |||||||
| |||||||
1 | of MMBtus of natural gas (excluding SNG) actually purchased by | ||||||
2 | the utility during the contract term; (iii) the cost | ||||||
3 | differential, which shall be the difference between the average | ||||||
4 | contract SNG cost and the average natural gas purchase cost; | ||||||
5 | and (iv) the revenue share target, which shall be the cost | ||||||
6 | differential multiplied by the total amount of SNG purchased | ||||||
7 | under such utility contract. If the average contract SNG cost | ||||||
8 | is equal to or less than the average natural gas purchase cost, | ||||||
9 | then the company shall have no further obligation to the | ||||||
10 | utility. If the average contract SNG cost for such SNG contract | ||||||
11 | is greater than the average natural gas purchase cost for such | ||||||
12 | utility, then the company shall market the daily production of | ||||||
13 | SNG and distribute on a monthly basis 5% of amounts collected | ||||||
14 | with respect to such future sales to the utilities in | ||||||
15 | proportion to each utility's SNG purchases from the company | ||||||
16 | during the term of the SNG contract to be used to reduce the | ||||||
17 | utility's natural gas costs through the purchased gas | ||||||
18 | adjustment clause; such payments to the utility shall continue | ||||||
19 | until such time as the sum of such payments equals the revenue | ||||||
20 | share target of that utility. The company or utilities shall | ||||||
21 | have no obligation to repay the revenue share target except as | ||||||
22 | provided for in this subsection (h-15). | ||||||
23 | (h-20) The General Assembly authorizes the Illinois | ||||||
24 | Finance Authority to issue bonds to the maximum extent | ||||||
25 | permitted to finance coal gasification facilities described in | ||||||
26 | this Section, which constitute both "industrial projects" |
| |||||||
| |||||||
1 | under Article 801 of the Illinois Finance Authority Act and | ||||||
2 | "clean coal and energy projects" under Sections 825-65 through | ||||||
3 | 825-75 of the Illinois Finance Authority Act. The General | ||||||
4 | Assembly further authorizes the Illinois Power Agency to become | ||||||
5 | party to agreements and take such actions as necessary to | ||||||
6 | enable the Illinois Power Agency or its designate to (i) review | ||||||
7 | and confirm in writing that the terms stated in subsection (h) | ||||||
8 | of this Section are incorporated in the SNG contract, and (ii) | ||||||
9 | conduct an analysis pursuant to subsection (h-15) of this | ||||||
10 | Section. Administrative costs incurred by the Illinois Finance | ||||||
11 | Authority and Illinois Power Agency in performance of this | ||||||
12 | subsection (h-20) shall be subject to reimbursement by the | ||||||
13 | company on terms as the Illinois Finance Authority, the | ||||||
14 | Illinois Power Agency, and the company may agree. The utility | ||||||
15 | and its customers shall have no obligation to reimburse the | ||||||
16 | company, the Illinois Finance Authority, or the Illinois Power | ||||||
17 | Agency for any such costs. | ||||||
18 | (i) If a gas utility or an affiliate of a gas utility has | ||||||
19 | an ownership interest in any entity that produces or sells | ||||||
20 | synthetic natural gas, Article VII of this Act shall apply.
| ||||||
21 | (Source: P.A. 95-1027, eff. 6-1-09; 96-1364, eff. 7-28-10; | ||||||
22 | 09600SB3388ham001, ham002, and ham003.)"; and | ||||||
23 | by replacing Section 99 with the following:
| ||||||
24 | "Section 99. Effective date. This Act takes effect June 1, |
| |||||||
| |||||||
1 | 2011.".
|