99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3426

 

Introduced 5/11/2016, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3501/825-65
20 ILCS 3501/825-70
20 ILCS 3501/825-75
20 ILCS 3501/825-120 new
20 ILCS 3855/1-5
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-75
220 ILCS 5/16-111.5
220 ILCS 5/16-115
30 ILCS 105/5.875 new

    Creates the Energy and Environmental Security Act. Contains legislative findings. Amends the Illinois Finance Authority Act. Provides that the aggregate amount of bonds that may be issued by the Illinois Finance Authority for Clean Coal Projects may also be used to finance certain Qualified Clean Coal Projects. Creates the Clean Coal Technology Development and Utilization Fund. Provides that the Fund shall be used by the Illinois Finance Authority to administer the Agency's responsibilities to support the financing and installation of qualified clean coal projects. Amends the Illinois Power Agency Act. Contains provisions concerning diverse energy portfolio standards. Provides that nothing in the Act prohibits the Agency from taking title to indigenous or bituminous coal in order to fulfill any purpose enumerated by this Act. Amends the Public Utilities Act. Makes changes concerning procurement and certificates of service authority.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3426LRB099 21805 HLH 48563 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 1. SHORT TITLE; LEGISLATIVE FINDINGS.

 
5    Section 1-1. Short title. This Act may be cited as the
6Energy and Environmental Security Act.
 
7    Section 1-5. Diverse Energy Portfolio Standards;
8legislative findings. The General Assembly finds and declares
9the following:
10        (1) Currently, Illinois has the most diverse portfolio
11    of electrical generating units of any state in the United
12    States. That portfolio consists of the following: (i)
13    nuclear plants, which constitute 48% of the generation
14    statewide; (ii) coal-fired plants, which constitute 41% of
15    the generation statewide; (iii) renewables, which
16    constitute 5% of the generation statewide; (iv) natural
17    gas, which constitutes 4.5% of the generation statewide;
18    and (v) hydro and petroleum fired units which constitute
19    1.4% of the generation statewide. Illinois must focus on
20    maintaining existing electric utility generating units to
21    the maximum extent possible in order to retain the State's
22    position as a net exporter of electricity and to keep

 

 

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1    in-state electricity reliable and affordable.
2        (2) As the General Assembly considers emissions
3    reductions it must take into account the regulatory impacts
4    to the environment and to the economy of Illinois and the
5    public policy of Illinois to produce electricity in an
6    economically sound manner while also maintaining Illinois'
7    electric system reliability.
8        (3) The future energy policy of Illinois must ensure
9    continued access to adequate, reliable, affordable,
10    efficient, and environmentally sustainable electric
11    service at the lowest total cost per kilowatt hour over
12    time, taking into account the benefits of price stability
13    to Illinois consumers.
14        (4) According to the United States Energy Information
15    Administration, the emission factors for bituminous coal
16    range from a low of 202.8 pounds of carbon dioxide per
17    million Btu in Ohio to a high of 210.2 pounds of carbon
18    dioxide per million Btu in Maryland. For Illinois Basin
19    coal, all bituminous in rank, the emission factors are
20    relatively uniform, ranging from 203.2 in western Kentucky
21    to 203.6 in Indiana. In coal basins in the Western United
22    States, the emission factors for bituminous coal range from
23    more than 201 pounds of carbon dioxide per million Btu in
24    Missouri, Iowa, and Nevada to more than 209 in Arizona,
25    Arkansas, and Montana.
26        (5) Bituminous coal is found in every coal basin in the

 

 

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1    United States, and, in general, the carbon dioxide emission
2    factors are lowest for coal produced in states east of the
3    Mississippi River, where the predominant coals are
4    bituminous in rank and therefore have relatively low
5    emission factors.
6        (6) The Energy Information Administration analysis
7    confirmed the long-recognized finding that anthracite
8    emits the largest amount of carbon dioxide per million Btu,
9    followed by lignite, subbituminous coal, and bituminous
10    coal. The average factors in the United States are 227.4
11    for anthracite, 216.3 for lignite, 211.9 for subbituminous
12    coal, and 205.3 for bituminous coal.
13        (7) By utilizing bituminous coal, Illinois electric
14    utility generating units will have the opportunity to
15    utilize less coal to generate the same number of Btus while
16    reducing carbon dioxide emissions in a way intended to
17    permit Illinois to maintain its existing diverse portfolio
18    of electric utility generating units. A diverse and
19    reliable electric utility generating unit portfolio
20    provides Illinois consumers with reliable and affordable
21    electric service at the lowest total cost per kilowatt hour
22    over the long-term.
 
23
ARTICLE 5. AMENDATORY PROVISIONS

 
24    Section 5-5. The Illinois Finance Authority Act is amended

 

 

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1by changing Sections 825-65, 825-70, and 825-75 and by adding
2Section 825-120 as follows:
 
3    (20 ILCS 3501/825-65)
4    Sec. 825-65. Clean Coal, Coal, Qualified Clean Coal, Energy
5Efficiency, and Renewable Energy Project Financing.
6    (a) Findings and declaration of policy.
7        (i) It is hereby found and declared that Illinois has
8    abundant coal resources and, in some areas of Illinois, the
9    demand for power exceeds the generating capacity.
10    Incentives to encourage the construction of coal-fueled
11    electric generating plants in Illinois to ensure power
12    generating capacity into the future and to advance clean
13    coal technology and the use of Illinois coal are in the
14    best interests of all of the citizens of Illinois.
15        (ii) It is further found and declared that Illinois has
16    abundant potential and resources to develop renewable
17    energy resource projects and that there are many
18    opportunities to invest in cost-effective energy
19    efficiency projects throughout the State. The development
20    of those projects will create jobs and investment as well
21    as decrease environmental impacts and promote energy
22    independence in Illinois. Accordingly, the development of
23    those projects is in the best interests of all of the
24    citizens of Illinois.
25        (iii) The Authority is authorized to issue bonds to

 

 

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1    help finance Clean Coal, Qualified Clean Coal, Coal, Energy
2    Efficiency, and Renewable Energy projects pursuant to this
3    Section.
4    (b) Definitions.
5        (i) "Clean Coal Project" means (A) "clean coal
6    facility", as defined in Section 1-10 of the Illinois Power
7    Agency Act; (B) "clean coal SNG facility", as defined in
8    Section 1-10 of the Illinois Power Agency Act; (C)
9    transmission lines and associated equipment that transfer
10    electricity from points of supply to points of delivery for
11    projects described in this subsection (b); (D) pipelines or
12    other methods to transfer carbon dioxide from the point of
13    production to the point of storage or sequestration for
14    projects described in this subsection (b); or (E) projects
15    to provide carbon abatement technology for existing
16    generating facilities.
17        (ii) "Coal Project" means new electric generating
18    facilities or new gasification facilities, as defined in
19    Section 605-332 of the Department of Commerce and Economic
20    Opportunity Law of the Civil Administrative Code of
21    Illinois, which may include mine-mouth power plants,
22    projects that employ the use of clean coal technology,
23    projects to provide scrubber technology for existing
24    energy generating plants, or projects to provide electric
25    transmission facilities or new gasification facilities.
26        (iii) "Energy Efficiency Project" means measures that

 

 

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1    reduce the amount of electricity or natural gas required to
2    achieve a given end use, consistent with Section 1-10 of
3    the Illinois Power Agency Act. "Energy Efficiency Project"
4    also includes measures that reduce the total Btus of
5    electricity and natural gas needed to meet the end use or
6    uses consistent with Section 1-10 of the Illinois Power
7    Agency Act.
8        (iv) "Renewable Energy Project" means (A) a project
9    that uses renewable energy resources, as defined in Section
10    1-10 of the Illinois Power Agency Act; (B) a project that
11    uses environmentally preferable technologies and practices
12    that result in improvements to the production of renewable
13    fuels, including but not limited to, cellulosic
14    conversion, water and energy conservation, fractionation,
15    alternative feedstocks, or reduced green house gas
16    emissions; (C) transmission lines and associated equipment
17    that transfer electricity from points of supply to points
18    of delivery for projects described in this subsection (b);
19    or (D) projects that use technology for the storage of
20    renewable energy, including, without limitation, the use
21    of battery or electrochemical storage technology for
22    mobile or stationary applications.
23        (v) "Qualified Clean Coal Project" means a project
24    located at a generating facility that uses or seeks to use
25    qualified pollution control equipment, as defined in
26    Section 1-10 of the Illinois Power Agency Act, to qualify

 

 

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1    as a qualified clean coal facility as defined in Section
2    1-10 of the Illinois Power Agency Act.
3    (c) Creation of reserve funds. The Authority may establish
4and maintain one or more reserve funds to enhance bonds issued
5by the Authority for a Clean Coal Project, a Coal Project, an
6Energy Efficiency Project, a Qualified Clean Coal Project, or a
7Renewable Energy Project. There may be one or more accounts in
8these reserve funds in which there may be deposited:
9        (1) any proceeds of the bonds issued by the Authority
10    required to be deposited therein by the terms of any
11    contract between the Authority and its bondholders or any
12    resolution of the Authority;
13        (2) any other moneys or funds of the Authority that it
14    may determine to deposit therein from any other source; and
15        (3) any other moneys or funds made available to the
16    Authority. Subject to the terms of any pledge to the owners
17    of any bonds, moneys in any reserve fund may be held and
18    applied to the payment of principal, premium, if any, and
19    interest of such bonds.
20    (d) Powers and duties. The Authority has the power:
21        (1) To issue bonds in one or more series pursuant to
22    one or more resolutions of the Authority for any Clean Coal
23    Project, Coal Project, Energy Efficiency Project,
24    Qualified Clean Coal Project, or Renewable Energy Project
25    authorized under this Section, within the authorization
26    set forth in subsection (e).

 

 

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1        (2) To provide for the funding of any reserves or other
2    funds or accounts deemed necessary by the Authority in
3    connection with any bonds issued by the Authority.
4        (3) To pledge any funds of the Authority or funds made
5    available to the Authority that may be applied to such
6    purpose as security for any bonds or any guarantees,
7    letters of credit, insurance contracts or similar credit
8    support or liquidity instruments securing the bonds.
9        (4) To enter into agreements or contracts with third
10    parties, whether public or private, including, without
11    limitation, the United States of America, the State or any
12    department or agency thereof, to obtain any
13    appropriations, grants, loans or guarantees that are
14    deemed necessary or desirable by the Authority. Any such
15    guarantee, agreement or contract may contain terms and
16    provisions necessary or desirable in connection with the
17    program, subject to the requirements established by the
18    Act.
19        (5) To exercise such other powers as are necessary or
20    incidental to the foregoing.
21    (e) Clean Coal Project, Coal Project, Energy Efficiency
22Project, Qualified Clean Coal Project, and Renewable Energy
23Project bond authorization and financing limits. In addition to
24any other bonds authorized to be issued under Sections
25801-40(w), 825-60, 830-25 and 845-5, the Authority may have
26outstanding, at any time, bonds for the purpose enumerated in

 

 

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1this Section 825-65 in an aggregate principal amount that shall
2not exceed $3,000,000,000, subject to the following
3limitations: (i) up to $300,000,000 may be issued to finance
4projects, as described in clause (C) of subsection (b)(i) and
5clause (C) of subsection (b)(iv) of this Section 825-65; (ii)
6up to $500,000,000 may be issued to finance projects, as
7described in clauses (D) and (E) of subsection (b)(i) of this
8Section 825-65; (iii) up to $2,000,000,000 may be issued to
9finance Clean Coal Projects, as described in clauses (A) and
10(B) of subsection (b)(i) of this Section 825-65, and Coal
11Projects, as described in subsection (b)(ii) of this Section
12825-65, and for a Qualified Clean Coal Project, as described in
13paragraph (v) of subsection (b) of this Section; and (iv) up to
14$2,000,000,000 may be issued to finance Energy Efficiency
15Projects, as described in subsection (b)(iii) of this Section
16825-65 and Renewable Energy Projects, as described in clauses
17(A), (B), and (D) of subsection (b)(iii) of this Section
18825-65. An application for a loan financed from bond proceeds
19from a borrower or its affiliates for a Clean Coal Project, a
20Coal Project, Energy Efficiency Project, or a Renewable Energy
21Project may not be approved by the Authority for an amount in
22excess of $450,000,000 for any borrower or its affiliates. A
23Clean Coal Project, Qualified Clean Coal Project, or Coal
24Project must be located within the State. An Energy Efficiency
25Project may be located within the State or outside the State,
26provided that, if the Energy Efficiency Project is located

 

 

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1outside of the State, it must be owned, operated, leased, or
2managed by an entity located within the State or any entity
3affiliated with an entity located within the State. These bonds
4shall not constitute an indebtedness or obligation of the State
5of Illinois and it shall be plainly stated on the face of each
6bond that it does not constitute an indebtedness or obligation
7of the State of Illinois, but is payable solely from the
8revenues, income or other assets of the Authority pledged
9therefor.
10    (f) The bonding authority granted under this Section is in
11addition to and not limited by the provisions of Section 845-5.
12(Source: P.A. 98-90, eff. 7-15-13.)
 
13    (20 ILCS 3501/825-70)
14    Sec. 825-70. Criteria for participation in the program.
15Applications to the Authority for financing of any Clean Coal,
16Coal, Energy Efficiency Project, Qualified Clean Coal Project,
17or Renewable Energy Project shall be reviewed by the Authority.
18Upon submission of any such application, the Authority staff
19shall review the application for its completeness and may, at
20the discretion of the Authority staff, request such additional
21information as it deems necessary or advisable to aid in
22review. If the Authority receives applications for financing
23for Clean Coal, Coal, Energy Efficiency Project, Qualified
24Clean Coal Project, or Renewable Energy Projects in excess of
25the bond authorization available for such financing at any one

 

 

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1time, it shall consider applications in the order of priority
2as it shall determine, in consultation with other State
3agencies, and consistent with State policy to promote
4environmentally preferable technology and energy independence.
5An application for a loan for a Qualified Clean Coal Project
6submitted by a borrower or any of its affiliates that is
7financed from bond proceeds may not be approved by the
8Authority in an amount in excess of $450,000,000 for any
9borrower or affiliate for any one Qualified Clean Coal Project.
10(Source: P.A. 96-103, eff. 1-1-10; 96-817, eff. 1-1-10.)
 
11    (20 ILCS 3501/825-75)
12    Sec. 825-75. Additional Security. In the event that the
13Authority determines that monies of the Authority will not be
14sufficient for the payment of the principal of and interest on
15any bonds issued by the Authority under Sections 825-65 through
16825-75 of this Act for Clean Coal Projects, Coal Projects,
17Energy Efficiency Projects, Qualified Clean Coal Project, or
18Renewable Energy Projects during the next State fiscal year,
19the Chairperson, as soon as practicable, shall certify to the
20Governor the amount required by the Authority to enable it to
21pay such principal, premium, if any, and interest on such
22bonds. The Governor shall submit the amount so certified to the
23General Assembly as soon as practicable, but no later than the
24end of the current State fiscal year. This subsection shall
25apply to any bonds or notes as to which the Authority shall

 

 

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1have determined, in the resolution authorizing the issuance of
2the bonds or notes, that this subsection shall apply. Whenever
3the Authority makes such a determination, that fact shall be
4plainly stated on the face of the bonds or notes and that fact
5should also be reported to the Governor. In the event of a
6withdrawal of moneys from a reserve fund established with
7respect to any issue or issues of bonds of the Authority to pay
8principal, premium, if any, and interest on such bonds, the
9Chairman of the Authority, as soon as practicable, shall
10certify to the Governor the amount required to restore the
11reserve fund to the level required in the resolution or
12indenture securing those bonds. The Governor shall submit the
13amount so certified to the General Assembly as soon as
14practicable, but no later than the end of the current State
15fiscal year. The Authority shall obtain written approval from
16the Governor for any bonds and notes to be issued under this
17Section.
18(Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10;
1996-817, eff. 1-1-10.)
 
20    (20 ILCS 3501/825-120 new)
21    Sec. 825-120. Clean Coal Technology Development and
22Utilization Fund. The Clean Coal Technology Development and
23Utilization Fund is hereby created as a special fund in the
24State Treasury. The Illinois Finance Authority shall use all
25moneys from the Clean Coal Technology Development and

 

 

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1Utilization Fund to administer the Illinois Power Agency's
2responsibilities to support the financing and installation of
3qualified clean coal projects. The Illinois Commerce
4Commission shall adopt rules in accordance with the Illinois
5Administrative Procedure Act to provide funding for qualified
6clean coal projects by any lawful means, and those moneys shall
7be deposited into the Clean Coal Technology Development and
8Utilization Fund. Notwithstanding any other law to the
9contrary, the Clean Coal Technology Development and
10Utilization Fund is not subject to sweeps, administrative
11charge-backs, or any other fiscal or budgetary maneuver that
12would in any way transfer any amounts from the Clean Coal
13Technology Development and Utilization Fund into any other fund
14of the State.
 
15    Section 5-10. The Illinois Power Agency Act is amended by
16changing Sections 1-5, 1-10, 1-20, and 1-75 as follows:
 
17    (20 ILCS 3855/1-5)
18    Sec. 1-5. Legislative declarations and findings. The
19General Assembly finds and declares:
20        (1) The health, welfare, and prosperity of all Illinois
21    citizens require the provision of adequate, reliable,
22    affordable, efficient, and environmentally sustainable
23    electric service at the lowest total cost over time, taking
24    into account any benefits of price stability.

 

 

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1        (2) The transition to retail competition is not
2    complete. Some customers, especially residential and small
3    commercial customers, have failed to benefit from lower
4    electricity costs from retail and wholesale competition.
5        (3) Escalating prices for electricity in Illinois pose
6    a serious threat to the economic well-being, health, and
7    safety of the residents of and the commerce and industry of
8    the State.
9        (4) To protect against this threat to economic
10    well-being, health, and safety it is necessary to improve
11    the process of procuring electricity to serve Illinois
12    residents, to promote investment in energy efficiency and
13    demand-response measures, and to support development of
14    clean coal technologies and renewable resources.
15        (5) Procuring a diverse electricity supply portfolio
16    will ensure the lowest total cost over time for adequate,
17    reliable, efficient, and environmentally sustainable
18    electric service.
19        (6) Including cost-effective renewable resources in
20    that portfolio will reduce long-term direct and indirect
21    costs to consumers by decreasing environmental impacts and
22    by avoiding or delaying the need for new generation,
23    transmission, and distribution infrastructure.
24        (7) Energy efficiency, demand-response measures, and
25    renewable energy are resources currently underused in
26    Illinois.

 

 

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1        (8) The State should encourage the use of advanced
2    clean coal technologies that capture and sequester carbon
3    dioxide emissions and reduce emissions by utilizing
4    pollution control equipment to facilitate the use of
5    bituminous coal, to advance environmental protection
6    goals, and to demonstrate the viability of coal and
7    coal-derived fuels in a carbon-constrained economy.
8        (9) The General Assembly enacted Public Act 96-0795 to
9    reform the State's purchasing processes, recognizing that
10    government procurement is susceptible to abuse if
11    structural and procedural safeguards are not in place to
12    ensure independence, insulation, oversight, and
13    transparency.
14        (10) The principles that underlie the procurement
15    reform legislation apply also in the context of power
16    purchasing.
17    The General Assembly therefore finds that it is necessary
18to create the Illinois Power Agency and that the goals and
19objectives of that Agency are to accomplish each of the
20following:
21        (A) Develop electricity procurement plans to ensure
22    adequate, reliable, affordable, efficient, and
23    environmentally sustainable electric service at the lowest
24    total cost over time, taking into account any benefits of
25    price stability, for electric utilities that on December
26    31, 2005 provided electric service to at least 100,000

 

 

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1    customers in Illinois and for small multi-jurisdictional
2    electric utilities that (i) on December 31, 2005 served
3    less than 100,000 customers in Illinois and (ii) request a
4    procurement plan for their Illinois jurisdictional load.
5    The procurement plan shall be updated on an annual basis
6    and shall include renewable energy resources sufficient to
7    achieve the standards specified in this Act.
8        (B) Conduct competitive procurement processes to
9    procure the supply resources identified in the procurement
10    plan.
11        (C) Develop electric generation and co-generation
12    facilities that use indigenous coal or renewable
13    resources, or both, financed with bonds issued by the
14    Illinois Finance Authority.
15        (D) Supply electricity from the Agency's facilities at
16    cost to one or more of the following: municipal electric
17    systems, governmental aggregators, or rural electric
18    cooperatives in Illinois.
19        (E) Ensure that the process of power procurement is
20    conducted in an ethical and transparent fashion, immune
21    from improper influence.
22        (F) Continue to review its policies and practices to
23    determine how best to meet its mission of providing the
24    lowest cost power to the greatest number of people, at any
25    given point in time, in accordance with applicable law.
26        (G) Operate in a structurally insulated, independent,

 

 

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1    and transparent fashion so that nothing impedes the
2    Agency's mission to secure power at the best prices the
3    market will bear, provided that the Agency meets all
4    applicable legal requirements.
5(Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11;
697-813, eff. 7-13-12.)
 
7    (20 ILCS 3855/1-10)
8    Sec. 1-10. Definitions.
9    "Agency" means the Illinois Power Agency.
10    "Agency loan agreement" means any agreement pursuant to
11which the Illinois Finance Authority agrees to loan the
12proceeds of revenue bonds issued with respect to a project to
13the Agency upon terms providing for loan repayment installments
14at least sufficient to pay when due all principal of, interest
15and premium, if any, on those revenue bonds, and providing for
16maintenance, insurance, and other matters in respect of the
17project.
18    "Authority" means the Illinois Finance Authority.
19    "Clean coal facility" means an electric generating
20facility that uses primarily coal as a feedstock and that
21captures and sequesters carbon dioxide emissions at the
22following levels: at least 50% of the total carbon dioxide
23emissions that the facility would otherwise emit if, at the
24time construction commences, the facility is scheduled to
25commence operation before 2016, at least 70% of the total

 

 

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1carbon dioxide emissions that the facility would otherwise emit
2if, at the time construction commences, the facility is
3scheduled to commence operation during 2016 or 2017, and at
4least 90% of the total carbon dioxide emissions that the
5facility would otherwise emit if, at the time construction
6commences, the facility is scheduled to commence operation
7after 2017. The power block of the clean coal facility shall
8not exceed allowable emission rates for sulfur dioxide,
9nitrogen oxides, carbon monoxide, particulates and mercury for
10a natural gas-fired combined-cycle facility the same size as
11and in the same location as the clean coal facility at the time
12the clean coal facility obtains an approved air permit. All
13coal used by a clean coal facility shall have high volatile
14bituminous rank and greater than 1.7 pounds of sulfur per
15million btu content, unless the clean coal facility does not
16use gasification technology and was operating as a conventional
17coal-fired electric generating facility on June 1, 2009 (the
18effective date of Public Act 95-1027).
19    "Clean coal SNG brownfield facility" means a facility that
20(1) has commenced construction by July 1, 2015 on an urban
21brownfield site in a municipality with at least 1,000,000
22residents; (2) uses a gasification process to produce
23substitute natural gas; (3) uses coal as at least 50% of the
24total feedstock over the term of any sourcing agreement with a
25utility and the remainder of the feedstock may be either
26petroleum coke or coal, with all such coal having a high

 

 

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1bituminous rank and greater than 1.7 pounds of sulfur per
2million Btu content unless the facility reasonably determines
3that it is necessary to use additional petroleum coke to
4deliver additional consumer savings, in which case the facility
5shall use coal for at least 35% of the total feedstock over the
6term of any sourcing agreement; and (4) captures and sequesters
7at least 85% of the total carbon dioxide emissions that the
8facility would otherwise emit.
9    "Clean coal SNG facility" means a facility that uses a
10gasification process to produce substitute natural gas, that
11sequesters at least 90% of the total carbon dioxide emissions
12that the facility would otherwise emit, that uses at least 90%
13coal as a feedstock, with all such coal having a high
14bituminous rank and greater than 1.7 pounds of sulfur per
15million btu content, and that has a valid and effective permit
16to construct emission sources and air pollution control
17equipment and approval with respect to the federal regulations
18for Prevention of Significant Deterioration of Air Quality
19(PSD) for the plant pursuant to the federal Clean Air Act;
20provided, however, a clean coal SNG brownfield facility shall
21not be a clean coal SNG facility.
22    "Commission" means the Illinois Commerce Commission.
23    "Costs incurred in connection with the development and
24construction of a facility" means:
25        (1) the cost of acquisition of all real property,
26    fixtures, and improvements in connection therewith and

 

 

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1    equipment, personal property, and other property, rights,
2    and easements acquired that are deemed necessary for the
3    operation and maintenance of the facility;
4        (2) financing costs with respect to bonds, notes, and
5    other evidences of indebtedness of the Agency;
6        (3) all origination, commitment, utilization,
7    facility, placement, underwriting, syndication, credit
8    enhancement, and rating agency fees;
9        (4) engineering, design, procurement, consulting,
10    legal, accounting, title insurance, survey, appraisal,
11    escrow, trustee, collateral agency, interest rate hedging,
12    interest rate swap, capitalized interest, contingency, as
13    required by lenders, and other financing costs, and other
14    expenses for professional services; and
15        (5) the costs of plans, specifications, site study and
16    investigation, installation, surveys, other Agency costs
17    and estimates of costs, and other expenses necessary or
18    incidental to determining the feasibility of any project,
19    together with such other expenses as may be necessary or
20    incidental to the financing, insuring, acquisition, and
21    construction of a specific project and starting up,
22    commissioning, and placing that project in operation.
23    "Department" means the Department of Commerce and Economic
24Opportunity.
25    "Director" means the Director of the Illinois Power Agency.
26    "Demand-response" means measures that decrease peak

 

 

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1electricity demand or shift demand from peak to off-peak
2periods.
3    "Distributed renewable energy generation device" means a
4device that is:
5        (1) powered by wind, solar thermal energy,
6    photovoltaic cells and panels, biodiesel, crops and
7    untreated and unadulterated organic waste biomass, tree
8    waste, and hydropower that does not involve new
9    construction or significant expansion of hydropower dams;
10        (2) interconnected at the distribution system level of
11    either an electric utility as defined in this Section, an
12    alternative retail electric supplier as defined in Section
13    16-102 of the Public Utilities Act, a municipal utility as
14    defined in Section 3-105 of the Public Utilities Act, or a
15    rural electric cooperative as defined in Section 3-119 of
16    the Public Utilities Act;
17        (3) located on the customer side of the customer's
18    electric meter and is primarily used to offset that
19    customer's electricity load; and
20        (4) limited in nameplate capacity to no more than 2,000
21    kilowatts.
22    "Energy efficiency" means measures that reduce the amount
23of electricity or natural gas required to achieve a given end
24use. "Energy efficiency" also includes measures that reduce the
25total Btus of electricity and natural gas needed to meet the
26end use or uses.

 

 

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1    "Electric utility" has the same definition as found in
2Section 16-102 of the Public Utilities Act.
3    "Facility" means an electric generating unit or a
4co-generating unit that produces electricity along with
5related equipment necessary to connect the facility to an
6electric transmission or distribution system.
7    "Governmental aggregator" means one or more units of local
8government that individually or collectively procure
9electricity to serve residential retail electrical loads
10located within its or their jurisdiction.
11    "Local government" means a unit of local government as
12defined in Section 1 of Article VII of the Illinois
13Constitution.
14    "Municipality" means a city, village, or incorporated
15town.
16    "Person" means any natural person, firm, partnership,
17corporation, either domestic or foreign, company, association,
18limited liability company, joint stock company, or association
19and includes any trustee, receiver, assignee, or personal
20representative thereof.
21    "Project" means the planning, bidding, and construction of
22a facility.
23    "Public utility" has the same definition as found in
24Section 3-105 of the Public Utilities Act.
25    "Qualified clean coal facility" means an electric
26generating facility which uses United States high volatile rank

 

 

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1bituminous coal with an inherent carbon dioxide content of less
2than 210 pounds of carbon dioxide per million Btu as its
3primary fuel source or which provides the lowest carbon dioxide
4emission per kilowatt-hour utilizing qualified pollution
5control equipment.
6    "Qualified pollution control equipment" means new
7construction of equipment or the retrofit of an existing
8generation facility which allows the use of high volatile rank
9bituminous coal with an inherent carbon dioxide content of less
10than 210 pounds of carbon dioxide per million Btu. This
11equipment shall include, but is not limited to, scrubbers or
12flue gas desulfurization, electrostatic precipitators, or
13other technologies which can provide heat rate improvements,
14facilitate changes in fuel type to the use of low carbon
15dioxide emitting bituminous coal, burner modifications,
16installation on new control equipment, or any technologies
17designed for retrofitting existing plants to meet the
18requirements of the federal law or regulations.
19    "Real property" means any interest in land together with
20all structures, fixtures, and improvements thereon, including
21lands under water and riparian rights, any easements,
22covenants, licenses, leases, rights-of-way, uses, and other
23interests, together with any liens, judgments, mortgages, or
24other claims or security interests related to real property.
25    "Renewable energy credit" means a tradable credit that
26represents the environmental attributes of a certain amount of

 

 

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1energy produced from a renewable energy resource.
2    "Renewable energy resources" includes energy and its
3associated renewable energy credit or renewable energy credits
4from wind, solar thermal energy, photovoltaic cells and panels,
5biodiesel, anaerobic digestion, crops and untreated and
6unadulterated organic waste biomass, tree waste, hydropower
7that does not involve new construction or significant expansion
8of hydropower dams, and other alternative sources of
9environmentally preferable energy. For purposes of this Act,
10landfill gas produced in the State is considered a renewable
11energy resource. "Renewable energy resources" does not include
12the incineration or burning of tires, garbage, general
13household, institutional, and commercial waste, industrial
14lunchroom or office waste, landscape waste other than tree
15waste, railroad crossties, utility poles, or construction or
16demolition debris, other than untreated and unadulterated
17waste wood.
18    "Retail customer" has the same definition as found in
19Section 16-102 of the Public Utilities Act.
20    "Revenue bond" means any bond, note, or other evidence of
21indebtedness issued by the Authority, the principal and
22interest of which is payable solely from revenues or income
23derived from any project or activity of the Agency.
24    "Sequester" means permanent storage of carbon dioxide by
25injecting it into a saline aquifer, a depleted gas reservoir,
26or an oil reservoir, directly or through an enhanced oil

 

 

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1recovery process that may involve intermediate storage,
2regardless of whether these activities are conducted by a clean
3coal facility, a clean coal SNG facility, a clean coal SNG
4brownfield facility, or a party with which a clean coal
5facility, clean coal SNG facility, or clean coal SNG brownfield
6facility has contracted for such purposes.
7    "Sourcing agreement" means (i) in the case of an electric
8utility, an agreement between the owner of a clean coal
9facility and such electric utility, which agreement shall have
10terms and conditions meeting the requirements of paragraph (3)
11of subsection (d) of Section 1-75, (ii) in the case of an
12alternative retail electric supplier, an agreement between the
13owner of a clean coal facility and such alternative retail
14electric supplier, which agreement shall have terms and
15conditions meeting the requirements of Section 16-115(d)(5) of
16the Public Utilities Act, and (iii) in case of a gas utility,
17an agreement between the owner of a clean coal SNG brownfield
18facility and the gas utility, which agreement shall have the
19terms and conditions meeting the requirements of subsection
20(h-1) of Section 9-220 of the Public Utilities Act, (iv) in the
21case of an electric utility, an agreement between the owner of
22the qualified clean coal facility and the electric utility,
23which agreement shall have the terms and conditions meeting the
24requirements of subsection (d-5) of Section 1-75, and (v) in
25the case of an alternative retail electric supplier, an
26agreement between the owner of a qualified clean coal facility

 

 

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1and the alternative retail electric supplier, which agreement
2shall have the terms and conditions meeting the requirements of
3paragraph (5) of subsection (d) of Section 16-115 of the Public
4Utilities Act.
5    "Substitute natural gas" or "SNG" means a gas manufactured
6by gasification of hydrocarbon feedstock, which is
7substantially interchangeable in use and distribution with
8conventional natural gas.
9    "Total resource cost test" or "TRC test" means a standard
10that is met if, for an investment in energy efficiency or
11demand-response measures, the benefit-cost ratio is greater
12than one. The benefit-cost ratio is the ratio of the net
13present value of the total benefits of the program to the net
14present value of the total costs as calculated over the
15lifetime of the measures. A total resource cost test compares
16the sum of avoided electric utility costs, representing the
17benefits that accrue to the system and the participant in the
18delivery of those efficiency measures, as well as other
19quantifiable societal benefits, including avoided natural gas
20utility costs, to the sum of all incremental costs of end-use
21measures that are implemented due to the program (including
22both utility and participant contributions), plus costs to
23administer, deliver, and evaluate each demand-side program, to
24quantify the net savings obtained by substituting the
25demand-side program for supply resources. In calculating
26avoided costs of power and energy that an electric utility

 

 

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1would otherwise have had to acquire, reasonable estimates shall
2be included of financial costs likely to be imposed by future
3regulations and legislation on emissions of greenhouse gases.
4(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491,
5eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12;
698-90, eff. 7-15-13.)
 
7    (20 ILCS 3855/1-20)
8    Sec. 1-20. General powers of the Agency.
9    (a) The Agency is authorized to do each of the following:
10        (1) Develop electricity procurement plans to ensure
11    adequate, reliable, affordable, efficient, and
12    environmentally sustainable electric service at the lowest
13    total cost over time, taking into account any benefits of
14    price stability, for electric utilities that on December
15    31, 2005 provided electric service to at least 100,000
16    customers in Illinois and for small multi-jurisdictional
17    electric utilities that (A) on December 31, 2005 served
18    less than 100,000 customers in Illinois and (B) request a
19    procurement plan for their Illinois jurisdictional load.
20    The procurement plans shall be updated on an annual basis
21    and shall include electricity generated from renewable
22    resources sufficient to achieve the standards specified in
23    this Act.
24        (2) Conduct competitive procurement processes to
25    procure the supply resources identified in the procurement

 

 

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1    plan, pursuant to Section 16-111.5 of the Public Utilities
2    Act.
3        (3) Develop electric generation and co-generation
4    facilities that use indigenous coal or renewable
5    resources, or both, financed with bonds issued by the
6    Illinois Finance Authority. Nothing shall prohibit the
7    Agency from taking title to indigenous or bituminous coal
8    in order to fulfill any purpose enumerated by this Act. The
9    Agency shall provide by rule for the terms and conditions
10    under which the Agency may take title to indigenous or
11    bituminous coal.
12        (4) Supply electricity from the Agency's facilities at
13    cost to one or more of the following: municipal electric
14    systems, governmental aggregators, or rural electric
15    cooperatives in Illinois.
16    (b) Except as otherwise limited by this Act, the Agency has
17all of the powers necessary or convenient to carry out the
18purposes and provisions of this Act, including without
19limitation, each of the following:
20        (1) To have a corporate seal, and to alter that seal at
21    pleasure, and to use it by causing it or a facsimile to be
22    affixed or impressed or reproduced in any other manner.
23        (2) To use the services of the Illinois Finance
24    Authority necessary to carry out the Agency's purposes.
25        (3) To negotiate and enter into loan agreements and
26    other agreements with the Illinois Finance Authority.

 

 

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1        (4) To obtain and employ personnel and hire consultants
2    that are necessary to fulfill the Agency's purposes, and to
3    make expenditures for that purpose within the
4    appropriations for that purpose.
5        (5) To purchase, receive, take by grant, gift, devise,
6    bequest, or otherwise, lease, or otherwise acquire, own,
7    hold, improve, employ, use, and otherwise deal in and with,
8    real or personal property whether tangible or intangible,
9    or any interest therein, within the State.
10        (6) To acquire real or personal property, whether
11    tangible or intangible, including without limitation
12    property rights, interests in property, franchises,
13    obligations, contracts, and debt and equity securities,
14    and to do so by the exercise of the power of eminent domain
15    in accordance with Section 1-21; except that any real
16    property acquired by the exercise of the power of eminent
17    domain must be located within the State.
18        (7) To sell, convey, lease, exchange, transfer,
19    abandon, or otherwise dispose of, or mortgage, pledge, or
20    create a security interest in, any of its assets,
21    properties, or any interest therein, wherever situated.
22        (8) To purchase, take, receive, subscribe for, or
23    otherwise acquire, hold, make a tender offer for, vote,
24    employ, sell, lend, lease, exchange, transfer, or
25    otherwise dispose of, mortgage, pledge, or grant a security
26    interest in, use, and otherwise deal in and with, bonds and

 

 

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1    other obligations, shares, or other securities (or
2    interests therein) issued by others, whether engaged in a
3    similar or different business or activity.
4        (9) To make and execute agreements, contracts, and
5    other instruments necessary or convenient in the exercise
6    of the powers and functions of the Agency under this Act,
7    including contracts with any person, including personal
8    service contracts, or with any local government, State
9    agency, or other entity; and all State agencies and all
10    local governments are authorized to enter into and do all
11    things necessary to perform any such agreement, contract,
12    or other instrument with the Agency. No such agreement,
13    contract, or other instrument shall exceed 40 years.
14        (10) To lend money, invest and reinvest its funds in
15    accordance with the Public Funds Investment Act, and take
16    and hold real and personal property as security for the
17    payment of funds loaned or invested.
18        (11) To borrow money at such rate or rates of interest
19    as the Agency may determine, issue its notes, bonds, or
20    other obligations to evidence that indebtedness, and
21    secure any of its obligations by mortgage or pledge of its
22    real or personal property, machinery, equipment,
23    structures, fixtures, inventories, revenues, grants, and
24    other funds as provided or any interest therein, wherever
25    situated.
26        (12) To enter into agreements with the Illinois Finance

 

 

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1    Authority to issue bonds whether or not the income
2    therefrom is exempt from federal taxation.
3        (13) To procure insurance against any loss in
4    connection with its properties or operations in such amount
5    or amounts and from such insurers, including the federal
6    government, as it may deem necessary or desirable, and to
7    pay any premiums therefor.
8        (14) To negotiate and enter into agreements with
9    trustees or receivers appointed by United States
10    bankruptcy courts or federal district courts or in other
11    proceedings involving adjustment of debts and authorize
12    proceedings involving adjustment of debts and authorize
13    legal counsel for the Agency to appear in any such
14    proceedings.
15        (15) To file a petition under Chapter 9 of Title 11 of
16    the United States Bankruptcy Code or take other similar
17    action for the adjustment of its debts.
18        (16) To enter into management agreements for the
19    operation of any of the property or facilities owned by the
20    Agency.
21        (17) To enter into an agreement to transfer and to
22    transfer any land, facilities, fixtures, or equipment of
23    the Agency to one or more municipal electric systems,
24    governmental aggregators, or rural electric agencies or
25    cooperatives, for such consideration and upon such terms as
26    the Agency may determine to be in the best interest of the

 

 

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1    citizens of Illinois.
2        (18) To enter upon any lands and within any building
3    whenever in its judgment it may be necessary for the
4    purpose of making surveys and examinations to accomplish
5    any purpose authorized by this Act.
6        (19) To maintain an office or offices at such place or
7    places in the State as it may determine.
8        (20) To request information, and to make any inquiry,
9    investigation, survey, or study that the Agency may deem
10    necessary to enable it effectively to carry out the
11    provisions of this Act.
12        (21) To accept and expend appropriations.
13        (22) To engage in any activity or operation that is
14    incidental to and in furtherance of efficient operation to
15    accomplish the Agency's purposes, including hiring
16    employees that the Director deems essential for the
17    operations of the Agency.
18        (23) To adopt, revise, amend, and repeal rules with
19    respect to its operations, properties, and facilities as
20    may be necessary or convenient to carry out the purposes of
21    this Act, subject to the provisions of the Illinois
22    Administrative Procedure Act and Sections 1-22 and 1-35 of
23    this Act.
24        (24) To establish and collect charges and fees as
25    described in this Act.
26        (25) To conduct competitive gasification feedstock

 

 

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1    procurement processes to procure the feedstocks for the
2    clean coal SNG brownfield facility in accordance with the
3    requirements of Section 1-78 of this Act.
4        (26) To review, revise, and approve sourcing
5    agreements and mediate and resolve disputes between gas
6    utilities and the clean coal SNG brownfield facility
7    pursuant to subsection (h-1) of Section 9-220 of the Public
8    Utilities Act.
9(Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10;
1097-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff.
1110-26-11; 97-813, eff. 7-13-12.)
 
12    (20 ILCS 3855/1-75)
13    Sec. 1-75. Planning and Procurement Bureau. The Planning
14and Procurement Bureau has the following duties and
15responsibilities:
16    (a) The Planning and Procurement Bureau shall each year,
17beginning in 2008, develop procurement plans and conduct
18competitive procurement processes in accordance with the
19requirements of Section 16-111.5 of the Public Utilities Act
20for the eligible retail customers of electric utilities that on
21December 31, 2005 provided electric service to at least 100,000
22customers in Illinois, and, beginning with the 2020 planning
23year, the Planning and Procurement Bureau shall include in such
24plans and processes the procurement of electricity generated by
25qualified clean coal facilities pursuant to subsection (d-5) of

 

 

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1this Section for all of the utilities' retail customers. The
2Planning and Procurement Bureau shall also develop procurement
3plans and conduct competitive procurement processes in
4accordance with the requirements of Section 16-111.5 of the
5Public Utilities Act for the eligible retail customers of small
6multi-jurisdictional electric utilities that (i) on December
731, 2005 served less than 100,000 customers in Illinois and
8(ii) request a procurement plan for their Illinois
9jurisdictional load. This Section shall not apply to a small
10multi-jurisdictional utility until such time as a small
11multi-jurisdictional utility requests the Agency to prepare a
12procurement plan for their Illinois jurisdictional load. For
13the purposes of this Section, the term "eligible retail
14customers" has the same definition as found in Section
1516-111.5(a) of the Public Utilities Act.
16        (1) The Agency shall each year, beginning in 2008, as
17    needed, issue a request for qualifications for experts or
18    expert consulting firms to develop the procurement plans in
19    accordance with Section 16-111.5 of the Public Utilities
20    Act. In order to qualify an expert or expert consulting
21    firm must have:
22            (A) direct previous experience assembling
23        large-scale power supply plans or portfolios for
24        end-use customers;
25            (B) an advanced degree in economics, mathematics,
26        engineering, risk management, or a related area of

 

 

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1        study;
2            (C) 10 years of experience in the electricity
3        sector, including managing supply risk;
4            (D) expertise in wholesale electricity market
5        rules, including those established by the Federal
6        Energy Regulatory Commission and regional transmission
7        organizations;
8            (E) expertise in credit protocols and familiarity
9        with contract protocols;
10            (F) adequate resources to perform and fulfill the
11        required functions and responsibilities; and
12            (G) the absence of a conflict of interest and
13        inappropriate bias for or against potential bidders or
14        the affected electric utilities.
15        (2) The Agency shall each year, as needed, issue a
16    request for qualifications for a procurement administrator
17    to conduct the competitive procurement processes in
18    accordance with Section 16-111.5 of the Public Utilities
19    Act. In order to qualify an expert or expert consulting
20    firm must have:
21            (A) direct previous experience administering a
22        large-scale competitive procurement process;
23            (B) an advanced degree in economics, mathematics,
24        engineering, or a related area of study;
25            (C) 10 years of experience in the electricity
26        sector, including risk management experience;

 

 

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1            (D) expertise in wholesale electricity market
2        rules, including those established by the Federal
3        Energy Regulatory Commission and regional transmission
4        organizations;
5            (E) expertise in credit and contract protocols;
6            (F) adequate resources to perform and fulfill the
7        required functions and responsibilities; and
8            (G) the absence of a conflict of interest and
9        inappropriate bias for or against potential bidders or
10        the affected electric utilities.
11        (3) The Agency shall provide affected utilities and
12    other interested parties with the lists of qualified
13    experts or expert consulting firms identified through the
14    request for qualifications processes that are under
15    consideration to develop the procurement plans and to serve
16    as the procurement administrator. The Agency shall also
17    provide each qualified expert's or expert consulting
18    firm's response to the request for qualifications. All
19    information provided under this subparagraph shall also be
20    provided to the Commission. The Agency may provide by rule
21    for fees associated with supplying the information to
22    utilities and other interested parties. These parties
23    shall, within 5 business days, notify the Agency in writing
24    if they object to any experts or expert consulting firms on
25    the lists. Objections shall be based on:
26            (A) failure to satisfy qualification criteria;

 

 

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1            (B) identification of a conflict of interest; or
2            (C) evidence of inappropriate bias for or against
3        potential bidders or the affected utilities.
4        The Agency shall remove experts or expert consulting
5    firms from the lists within 10 days if there is a
6    reasonable basis for an objection and provide the updated
7    lists to the affected utilities and other interested
8    parties. If the Agency fails to remove an expert or expert
9    consulting firm from a list, an objecting party may seek
10    review by the Commission within 5 days thereafter by filing
11    a petition, and the Commission shall render a ruling on the
12    petition within 10 days. There is no right of appeal of the
13    Commission's ruling.
14        (4) The Agency shall issue requests for proposals to
15    the qualified experts or expert consulting firms to develop
16    a procurement plan for the affected utilities and to serve
17    as procurement administrator.
18        (5) The Agency shall select an expert or expert
19    consulting firm to develop procurement plans based on the
20    proposals submitted and shall award contracts of up to 5
21    years to those selected.
22        (6) The Agency shall select an expert or expert
23    consulting firm, with approval of the Commission, to serve
24    as procurement administrator based on the proposals
25    submitted. If the Commission rejects, within 5 days, the
26    Agency's selection, the Agency shall submit another

 

 

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1    recommendation within 3 days based on the proposals
2    submitted. The Agency shall award a 5-year contract to the
3    expert or expert consulting firm so selected with
4    Commission approval.
5    (b) The experts or expert consulting firms retained by the
6Agency shall, as appropriate, prepare procurement plans, and
7conduct a competitive procurement process as prescribed in
8Section 16-111.5 of the Public Utilities Act, to ensure
9adequate, reliable, affordable, efficient, and environmentally
10sustainable electric service at the lowest total cost over
11time, taking into account any benefits of price stability, for
12eligible retail customers of electric utilities that on
13December 31, 2005 provided electric service to at least 100,000
14customers in the State of Illinois, and for eligible Illinois
15retail customers of small multi-jurisdictional electric
16utilities that (i) on December 31, 2005 served less than
17100,000 customers in Illinois and (ii) request a procurement
18plan for their Illinois jurisdictional load.
19    (c) Renewable portfolio standard.
20        (1) The procurement plans shall include cost-effective
21    renewable energy resources. A minimum percentage of each
22    utility's total supply to serve the load of eligible retail
23    customers, as defined in Section 16-111.5(a) of the Public
24    Utilities Act, procured for each of the following years
25    shall be generated from cost-effective renewable energy
26    resources: at least 2% by June 1, 2008; at least 4% by June

 

 

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1    1, 2009; at least 5% by June 1, 2010; at least 6% by June 1,
2    2011; at least 7% by June 1, 2012; at least 8% by June 1,
3    2013; at least 9% by June 1, 2014; at least 10% by June 1,
4    2015; and increasing by at least 1.5% each year thereafter
5    to at least 25% by June 1, 2025. To the extent that it is
6    available, at least 75% of the renewable energy resources
7    used to meet these standards shall come from wind
8    generation and, beginning on June 1, 2011, at least the
9    following percentages of the renewable energy resources
10    used to meet these standards shall come from photovoltaics
11    on the following schedule: 0.5% by June 1, 2012, 1.5% by
12    June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015 and
13    thereafter. Of the renewable energy resources procured
14    pursuant to this Section, at least the following
15    percentages shall come from distributed renewable energy
16    generation devices: 0.5% by June 1, 2013, 0.75% by June 1,
17    2014, and 1% by June 1, 2015 and thereafter. To the extent
18    available, half of the renewable energy resources procured
19    from distributed renewable energy generation shall come
20    from devices of less than 25 kilowatts in nameplate
21    capacity. Renewable energy resources procured from
22    distributed generation devices may also count towards the
23    required percentages for wind and solar photovoltaics.
24    Procurement of renewable energy resources from distributed
25    renewable energy generation devices shall be done on an
26    annual basis through multi-year contracts of no less than 5

 

 

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1    years, and shall consist solely of renewable energy
2    credits.
3        The Agency shall create credit requirements for
4    suppliers of distributed renewable energy. In order to
5    minimize the administrative burden on contracting
6    entities, the Agency shall solicit the use of third-party
7    organizations to aggregate distributed renewable energy
8    into groups of no less than one megawatt in installed
9    capacity. These third-party organizations shall administer
10    contracts with individual distributed renewable energy
11    generation device owners. An individual distributed
12    renewable energy generation device owner shall have the
13    ability to measure the output of his or her distributed
14    renewable energy generation device.
15        For purposes of this subsection (c), "cost-effective"
16    means that the costs of procuring renewable energy
17    resources do not cause the limit stated in paragraph (2) of
18    this subsection (c) to be exceeded and do not exceed
19    benchmarks based on market prices for renewable energy
20    resources in the region, which shall be developed by the
21    procurement administrator, in consultation with the
22    Commission staff, Agency staff, and the procurement
23    monitor and shall be subject to Commission review and
24    approval.
25        (2) For purposes of this subsection (c), the required
26    procurement of cost-effective renewable energy resources

 

 

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1    for a particular year shall be measured as a percentage of
2    the actual amount of electricity (megawatt-hours) supplied
3    by the electric utility to eligible retail customers in the
4    planning year ending immediately prior to the procurement.
5    For purposes of this subsection (c), the amount paid per
6    kilowatthour means the total amount paid for electric
7    service expressed on a per kilowatthour basis. For purposes
8    of this subsection (c), the total amount paid for electric
9    service includes without limitation amounts paid for
10    supply, transmission, distribution, surcharges, and add-on
11    taxes.
12        Notwithstanding the requirements of this subsection
13    (c), the total of renewable energy resources procured
14    pursuant to the procurement plan for any single year shall
15    be reduced by an amount necessary to limit the annual
16    estimated average net increase due to the costs of these
17    resources included in the amounts paid by eligible retail
18    customers in connection with electric service to:
19            (A) in 2008, no more than 0.5% of the amount paid
20        per kilowatthour by those customers during the year
21        ending May 31, 2007;
22            (B) in 2009, the greater of an additional 0.5% of
23        the amount paid per kilowatthour by those customers
24        during the year ending May 31, 2008 or 1% of the amount
25        paid per kilowatthour by those customers during the
26        year ending May 31, 2007;

 

 

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1            (C) in 2010, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2009 or 1.5% of the
4        amount paid per kilowatthour by those customers during
5        the year ending May 31, 2007;
6            (D) in 2011, the greater of an additional 0.5% of
7        the amount paid per kilowatthour by those customers
8        during the year ending May 31, 2010 or 2% of the amount
9        paid per kilowatthour by those customers during the
10        year ending May 31, 2007; and
11            (E) thereafter, the amount of renewable energy
12        resources procured pursuant to the procurement plan
13        for any single year shall be reduced by an amount
14        necessary to limit the estimated average net increase
15        due to the cost of these resources included in the
16        amounts paid by eligible retail customers in
17        connection with electric service to no more than the
18        greater of 2.015% of the amount paid per kilowatthour
19        by those customers during the year ending May 31, 2007
20        or the incremental amount per kilowatthour paid for
21        these resources in 2011.
22            No later than June 30, 2011, the Commission shall
23        review the limitation on the amount of renewable energy
24        resources procured pursuant to this subsection (c) and
25        report to the General Assembly its findings as to
26        whether that limitation unduly constrains the

 

 

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1        procurement of cost-effective renewable energy
2        resources.
3        (3) Through June 1, 2011, renewable energy resources
4    shall be counted for the purpose of meeting the renewable
5    energy standards set forth in paragraph (1) of this
6    subsection (c) only if they are generated from facilities
7    located in the State, provided that cost-effective
8    renewable energy resources are available from those
9    facilities. If those cost-effective resources are not
10    available in Illinois, they shall be procured in states
11    that adjoin Illinois and may be counted towards compliance.
12    If those cost-effective resources are not available in
13    Illinois or in states that adjoin Illinois, they shall be
14    purchased elsewhere and shall be counted towards
15    compliance. After June 1, 2011, cost-effective renewable
16    energy resources located in Illinois and in states that
17    adjoin Illinois may be counted towards compliance with the
18    standards set forth in paragraph (1) of this subsection
19    (c). If those cost-effective resources are not available in
20    Illinois or in states that adjoin Illinois, they shall be
21    purchased elsewhere and shall be counted towards
22    compliance.
23        (4) The electric utility shall retire all renewable
24    energy credits used to comply with the standard.
25        (5) Beginning with the year commencing June 1, 2010, an
26    electric utility subject to this subsection (c) shall apply

 

 

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1    the lesser of the maximum alternative compliance payment
2    rate or the most recent estimated alternative compliance
3    payment rate for its service territory for the
4    corresponding compliance period, established pursuant to
5    subsection (d) of Section 16-115D of the Public Utilities
6    Act to its retail customers that take service pursuant to
7    the electric utility's hourly pricing tariff or tariffs.
8    The electric utility shall retain all amounts collected as
9    a result of the application of the alternative compliance
10    payment rate or rates to such customers, and, beginning in
11    2011, the utility shall include in the information provided
12    under item (1) of subsection (d) of Section 16-111.5 of the
13    Public Utilities Act the amounts collected under the
14    alternative compliance payment rate or rates for the prior
15    year ending May 31. Notwithstanding any limitation on the
16    procurement of renewable energy resources imposed by item
17    (2) of this subsection (c), the Agency shall increase its
18    spending on the purchase of renewable energy resources to
19    be procured by the electric utility for the next plan year
20    by an amount equal to the amounts collected by the utility
21    under the alternative compliance payment rate or rates in
22    the prior year ending May 31. Beginning April 1, 2012, and
23    each year thereafter, the Agency shall prepare a public
24    report for the General Assembly and Illinois Commerce
25    Commission that shall include, but not necessarily be
26    limited to:

 

 

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1            (A) a comparison of the costs associated with the
2        Agency's procurement of renewable energy resources to
3        (1) the Agency's costs associated with electricity
4        generated by other types of generation facilities and
5        (2) the benefits associated with the Agency's
6        procurement of renewable energy resources; and
7            (B) an analysis of the rate impacts associated with
8        the Illinois Power Agency's procurement of renewable
9        resources, including, but not limited to, any
10        long-term contracts, on the eligible retail customers
11        of electric utilities.
12        The analysis shall include the Agency's estimate of the
13    total dollar impact that the Agency's procurement of
14    renewable resources has had on the annual electricity bills
15    of the customer classes that comprise each eligible retail
16    customer class taking service from an electric utility. The
17    Agency's report shall also analyze how the operation of the
18    alternative compliance payment mechanism, any long-term
19    contracts, or other aspects of the applicable renewable
20    portfolio standards impacts the rates of customers of
21    alternative retail electric suppliers.
22    (d) Clean coal portfolio standard.
23        (1) The procurement plans shall include electricity
24    generated using clean coal. Each utility shall enter into
25    one or more sourcing agreements with the initial clean coal
26    facility, as provided in paragraph (3) of this subsection

 

 

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1    (d), covering electricity generated by the initial clean
2    coal facility representing at least 5% of each utility's
3    total supply to serve the load of eligible retail customers
4    in 2015 and each year thereafter, as described in paragraph
5    (3) of this subsection (d), subject to the limits specified
6    in paragraph (2) of this subsection (d). It is the goal of
7    the State that by January 1, 2025, 25% of the electricity
8    used in the State shall be generated by cost-effective
9    clean coal facilities. For purposes of this subsection (d),
10    "cost-effective" means that the expenditures pursuant to
11    such sourcing agreements do not cause the limit stated in
12    paragraph (2) of this subsection (d) to be exceeded and do
13    not exceed cost-based benchmarks, which shall be developed
14    to assess all expenditures pursuant to such sourcing
15    agreements covering electricity generated by clean coal
16    facilities, other than the initial clean coal facility, by
17    the procurement administrator, in consultation with the
18    Commission staff, Agency staff, and the procurement
19    monitor and shall be subject to Commission review and
20    approval.
21        A utility party to a sourcing agreement shall
22    immediately retire any emission credits that it receives in
23    connection with the electricity covered by such agreement.
24        Utilities shall maintain adequate records documenting
25    the purchases under the sourcing agreement to comply with
26    this subsection (d) and shall file an accounting with the

 

 

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1    load forecast that must be filed with the Agency by July 15
2    of each year, in accordance with subsection (d) of Section
3    16-111.5 of the Public Utilities Act.
4        A utility shall be deemed to have complied with the
5    clean coal portfolio standard specified in this subsection
6    (d) if the utility enters into a sourcing agreement as
7    required by this subsection (d).
8        (2) For purposes of this subsection (d), the required
9    execution of sourcing agreements with the initial clean
10    coal facility for a particular year shall be measured as a
11    percentage of the actual amount of electricity
12    (megawatt-hours) supplied by the electric utility to
13    eligible retail customers in the planning year ending
14    immediately prior to the agreement's execution. For
15    purposes of this subsection (d), the amount paid per
16    kilowatthour means the total amount paid for electric
17    service expressed on a per kilowatthour basis. For purposes
18    of this subsection (d), the total amount paid for electric
19    service includes without limitation amounts paid for
20    supply, transmission, distribution, surcharges and add-on
21    taxes.
22        Notwithstanding the requirements of this subsection
23    (d), the total amount paid under sourcing agreements with
24    clean coal facilities pursuant to the procurement plan for
25    any given year shall be reduced by an amount necessary to
26    limit the annual estimated average net increase due to the

 

 

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1    costs of these resources included in the amounts paid by
2    eligible retail customers in connection with electric
3    service to:
4            (A) in 2010, no more than 0.5% of the amount paid
5        per kilowatthour by those customers during the year
6        ending May 31, 2009;
7            (B) in 2011, the greater of an additional 0.5% of
8        the amount paid per kilowatthour by those customers
9        during the year ending May 31, 2010 or 1% of the amount
10        paid per kilowatthour by those customers during the
11        year ending May 31, 2009;
12            (C) in 2012, the greater of an additional 0.5% of
13        the amount paid per kilowatthour by those customers
14        during the year ending May 31, 2011 or 1.5% of the
15        amount paid per kilowatthour by those customers during
16        the year ending May 31, 2009;
17            (D) in 2013, the greater of an additional 0.5% of
18        the amount paid per kilowatthour by those customers
19        during the year ending May 31, 2012 or 2% of the amount
20        paid per kilowatthour by those customers during the
21        year ending May 31, 2009; and
22            (E) thereafter, the total amount paid under
23        sourcing agreements with clean coal facilities
24        pursuant to the procurement plan for any single year
25        shall be reduced by an amount necessary to limit the
26        estimated average net increase due to the cost of these

 

 

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1        resources included in the amounts paid by eligible
2        retail customers in connection with electric service
3        to no more than the greater of (i) 2.015% of the amount
4        paid per kilowatthour by those customers during the
5        year ending May 31, 2009 or (ii) the incremental amount
6        per kilowatthour paid for these resources in 2013.
7        These requirements may be altered only as provided by
8        statute.
9        No later than June 30, 2015, the Commission shall
10    review the limitation on the total amount paid under
11    sourcing agreements, if any, with clean coal facilities
12    pursuant to this subsection (d) and report to the General
13    Assembly its findings as to whether that limitation unduly
14    constrains the amount of electricity generated by
15    cost-effective clean coal facilities that is covered by
16    sourcing agreements.
17        (3) Initial clean coal facility. In order to promote
18    development of clean coal facilities in Illinois, each
19    electric utility subject to this Section shall execute a
20    sourcing agreement to source electricity from a proposed
21    clean coal facility in Illinois (the "initial clean coal
22    facility") that will have a nameplate capacity of at least
23    500 MW when commercial operation commences, that has a
24    final Clean Air Act permit on the effective date of this
25    amendatory Act of the 95th General Assembly, and that will
26    meet the definition of clean coal facility in Section 1-10

 

 

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1    of this Act when commercial operation commences. The
2    sourcing agreements with this initial clean coal facility
3    shall be subject to both approval of the initial clean coal
4    facility by the General Assembly and satisfaction of the
5    requirements of paragraph (4) of this subsection (d) and
6    shall be executed within 90 days after any such approval by
7    the General Assembly. The Agency and the Commission shall
8    have authority to inspect all books and records associated
9    with the initial clean coal facility during the term of
10    such a sourcing agreement. A utility's sourcing agreement
11    for electricity produced by the initial clean coal facility
12    shall include:
13            (A) a formula contractual price (the "contract
14        price") approved pursuant to paragraph (4) of this
15        subsection (d), which shall:
16                (i) be determined using a cost of service
17            methodology employing either a level or deferred
18            capital recovery component, based on a capital
19            structure consisting of 45% equity and 55% debt,
20            and a return on equity as may be approved by the
21            Federal Energy Regulatory Commission, which in any
22            case may not exceed the lower of 11.5% or the rate
23            of return approved by the General Assembly
24            pursuant to paragraph (4) of this subsection (d);
25            and
26                (ii) provide that all miscellaneous net

 

 

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1            revenue, including but not limited to net revenue
2            from the sale of emission allowances, if any,
3            substitute natural gas, if any, grants or other
4            support provided by the State of Illinois or the
5            United States Government, firm transmission
6            rights, if any, by-products produced by the
7            facility, energy or capacity derived from the
8            facility and not covered by a sourcing agreement
9            pursuant to paragraph (3) of this subsection (d) or
10            item (5) of subsection (d) of Section 16-115 of the
11            Public Utilities Act, whether generated from the
12            synthesis gas derived from coal, from SNG, or from
13            natural gas, shall be credited against the revenue
14            requirement for this initial clean coal facility;
15            (B) power purchase provisions, which shall:
16                (i) provide that the utility party to such
17            sourcing agreement shall pay the contract price
18            for electricity delivered under such sourcing
19            agreement;
20                (ii) require delivery of electricity to the
21            regional transmission organization market of the
22            utility that is party to such sourcing agreement;
23                (iii) require the utility party to such
24            sourcing agreement to buy from the initial clean
25            coal facility in each hour an amount of energy
26            equal to all clean coal energy made available from

 

 

SB3426- 52 -LRB099 21805 HLH 48563 b

1            the initial clean coal facility during such hour
2            times a fraction, the numerator of which is such
3            utility's retail market sales of electricity
4            (expressed in kilowatthours sold) in the State
5            during the prior calendar month and the
6            denominator of which is the total retail market
7            sales of electricity (expressed in kilowatthours
8            sold) in the State by utilities during such prior
9            month and the sales of electricity (expressed in
10            kilowatthours sold) in the State by alternative
11            retail electric suppliers during such prior month
12            that are subject to the requirements of this
13            subsection (d) and paragraph (5) of subsection (d)
14            of Section 16-115 of the Public Utilities Act,
15            provided that the amount purchased by the utility
16            in any year will be limited by paragraph (2) of
17            this subsection (d); and
18                (iv) be considered pre-existing contracts in
19            such utility's procurement plans for eligible
20            retail customers;
21            (C) contract for differences provisions, which
22        shall:
23                (i) require the utility party to such sourcing
24            agreement to contract with the initial clean coal
25            facility in each hour with respect to an amount of
26            energy equal to all clean coal energy made

 

 

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1            available from the initial clean coal facility
2            during such hour times a fraction, the numerator of
3            which is such utility's retail market sales of
4            electricity (expressed in kilowatthours sold) in
5            the utility's service territory in the State
6            during the prior calendar month and the
7            denominator of which is the total retail market
8            sales of electricity (expressed in kilowatthours
9            sold) in the State by utilities during such prior
10            month and the sales of electricity (expressed in
11            kilowatthours sold) in the State by alternative
12            retail electric suppliers during such prior month
13            that are subject to the requirements of this
14            subsection (d) and paragraph (5) of subsection (d)
15            of Section 16-115 of the Public Utilities Act,
16            provided that the amount paid by the utility in any
17            year will be limited by paragraph (2) of this
18            subsection (d);
19                (ii) provide that the utility's payment
20            obligation in respect of the quantity of
21            electricity determined pursuant to the preceding
22            clause (i) shall be limited to an amount equal to
23            (1) the difference between the contract price
24            determined pursuant to subparagraph (A) of
25            paragraph (3) of this subsection (d) and the
26            day-ahead price for electricity delivered to the

 

 

SB3426- 54 -LRB099 21805 HLH 48563 b

1            regional transmission organization market of the
2            utility that is party to such sourcing agreement
3            (or any successor delivery point at which such
4            utility's supply obligations are financially
5            settled on an hourly basis) (the "reference
6            price") on the day preceding the day on which the
7            electricity is delivered to the initial clean coal
8            facility busbar, multiplied by (2) the quantity of
9            electricity determined pursuant to the preceding
10            clause (i); and
11                (iii) not require the utility to take physical
12            delivery of the electricity produced by the
13            facility;
14            (D) general provisions, which shall:
15                (i) specify a term of no more than 30 years,
16            commencing on the commercial operation date of the
17            facility;
18                (ii) provide that utilities shall maintain
19            adequate records documenting purchases under the
20            sourcing agreements entered into to comply with
21            this subsection (d) and shall file an accounting
22            with the load forecast that must be filed with the
23            Agency by July 15 of each year, in accordance with
24            subsection (d) of Section 16-111.5 of the Public
25            Utilities Act;
26                (iii) provide that all costs associated with

 

 

SB3426- 55 -LRB099 21805 HLH 48563 b

1            the initial clean coal facility will be
2            periodically reported to the Federal Energy
3            Regulatory Commission and to purchasers in
4            accordance with applicable laws governing
5            cost-based wholesale power contracts;
6                (iv) permit the Illinois Power Agency to
7            assume ownership of the initial clean coal
8            facility, without monetary consideration and
9            otherwise on reasonable terms acceptable to the
10            Agency, if the Agency so requests no less than 3
11            years prior to the end of the stated contract term;
12                (v) require the owner of the initial clean coal
13            facility to provide documentation to the
14            Commission each year, starting in the facility's
15            first year of commercial operation, accurately
16            reporting the quantity of carbon emissions from
17            the facility that have been captured and
18            sequestered and report any quantities of carbon
19            released from the site or sites at which carbon
20            emissions were sequestered in prior years, based
21            on continuous monitoring of such sites. If, in any
22            year after the first year of commercial operation,
23            the owner of the facility fails to demonstrate that
24            the initial clean coal facility captured and
25            sequestered at least 50% of the total carbon
26            emissions that the facility would otherwise emit

 

 

SB3426- 56 -LRB099 21805 HLH 48563 b

1            or that sequestration of emissions from prior
2            years has failed, resulting in the release of
3            carbon dioxide into the atmosphere, the owner of
4            the facility must offset excess emissions. Any
5            such carbon offsets must be permanent, additional,
6            verifiable, real, located within the State of
7            Illinois, and legally and practicably enforceable.
8            The cost of such offsets for the facility that are
9            not recoverable shall not exceed $15 million in any
10            given year. No costs of any such purchases of
11            carbon offsets may be recovered from a utility or
12            its customers. All carbon offsets purchased for
13            this purpose and any carbon emission credits
14            associated with sequestration of carbon from the
15            facility must be permanently retired. The initial
16            clean coal facility shall not forfeit its
17            designation as a clean coal facility if the
18            facility fails to fully comply with the applicable
19            carbon sequestration requirements in any given
20            year, provided the requisite offsets are
21            purchased. However, the Attorney General, on
22            behalf of the People of the State of Illinois, may
23            specifically enforce the facility's sequestration
24            requirement and the other terms of this contract
25            provision. Compliance with the sequestration
26            requirements and offset purchase requirements

 

 

SB3426- 57 -LRB099 21805 HLH 48563 b

1            specified in paragraph (3) of this subsection (d)
2            shall be reviewed annually by an independent
3            expert retained by the owner of the initial clean
4            coal facility, with the advance written approval
5            of the Attorney General. The Commission may, in the
6            course of the review specified in item (vii),
7            reduce the allowable return on equity for the
8            facility if the facility wilfully fails to comply
9            with the carbon capture and sequestration
10            requirements set forth in this item (v);
11                (vi) include limits on, and accordingly
12            provide for modification of, the amount the
13            utility is required to source under the sourcing
14            agreement consistent with paragraph (2) of this
15            subsection (d);
16                (vii) require Commission review: (1) to
17            determine the justness, reasonableness, and
18            prudence of the inputs to the formula referenced in
19            subparagraphs (A)(i) through (A)(iii) of paragraph
20            (3) of this subsection (d), prior to an adjustment
21            in those inputs including, without limitation, the
22            capital structure and return on equity, fuel
23            costs, and other operations and maintenance costs
24            and (2) to approve the costs to be passed through
25            to customers under the sourcing agreement by which
26            the utility satisfies its statutory obligations.

 

 

SB3426- 58 -LRB099 21805 HLH 48563 b

1            Commission review shall occur no less than every 3
2            years, regardless of whether any adjustments have
3            been proposed, and shall be completed within 9
4            months;
5                (viii) limit the utility's obligation to such
6            amount as the utility is allowed to recover through
7            tariffs filed with the Commission, provided that
8            neither the clean coal facility nor the utility
9            waives any right to assert federal pre-emption or
10            any other argument in response to a purported
11            disallowance of recovery costs;
12                (ix) limit the utility's or alternative retail
13            electric supplier's obligation to incur any
14            liability until such time as the facility is in
15            commercial operation and generating power and
16            energy and such power and energy is being delivered
17            to the facility busbar;
18                (x) provide that the owner or owners of the
19            initial clean coal facility, which is the
20            counterparty to such sourcing agreement, shall
21            have the right from time to time to elect whether
22            the obligations of the utility party thereto shall
23            be governed by the power purchase provisions or the
24            contract for differences provisions;
25                (xi) append documentation showing that the
26            formula rate and contract, insofar as they relate

 

 

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1            to the power purchase provisions, have been
2            approved by the Federal Energy Regulatory
3            Commission pursuant to Section 205 of the Federal
4            Power Act;
5                (xii) provide that any changes to the terms of
6            the contract, insofar as such changes relate to the
7            power purchase provisions, are subject to review
8            under the public interest standard applied by the
9            Federal Energy Regulatory Commission pursuant to
10            Sections 205 and 206 of the Federal Power Act; and
11                (xiii) conform with customary lender
12            requirements in power purchase agreements used as
13            the basis for financing non-utility generators.
14        (4) Effective date of sourcing agreements with the
15    initial clean coal facility.
16        Any proposed sourcing agreement with the initial clean
17    coal facility shall not become effective unless the
18    following reports are prepared and submitted and
19    authorizations and approvals obtained:
20            (i) Facility cost report. The owner of the initial
21        clean coal facility shall submit to the Commission, the
22        Agency, and the General Assembly a front-end
23        engineering and design study, a facility cost report,
24        method of financing (including but not limited to
25        structure and associated costs), and an operating and
26        maintenance cost quote for the facility (collectively

 

 

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1        "facility cost report"), which shall be prepared in
2        accordance with the requirements of this paragraph (4)
3        of subsection (d) of this Section, and shall provide
4        the Commission and the Agency access to the work
5        papers, relied upon documents, and any other backup
6        documentation related to the facility cost report.
7            (ii) Commission report. Within 6 months following
8        receipt of the facility cost report, the Commission, in
9        consultation with the Agency, shall submit a report to
10        the General Assembly setting forth its analysis of the
11        facility cost report. Such report shall include, but
12        not be limited to, a comparison of the costs associated
13        with electricity generated by the initial clean coal
14        facility to the costs associated with electricity
15        generated by other types of generation facilities, an
16        analysis of the rate impacts on residential and small
17        business customers over the life of the sourcing
18        agreements, and an analysis of the likelihood that the
19        initial clean coal facility will commence commercial
20        operation by and be delivering power to the facility's
21        busbar by 2016. To assist in the preparation of its
22        report, the Commission, in consultation with the
23        Agency, may hire one or more experts or consultants,
24        the costs of which shall be paid for by the owner of
25        the initial clean coal facility. The Commission and
26        Agency may begin the process of selecting such experts

 

 

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1        or consultants prior to receipt of the facility cost
2        report.
3            (iii) General Assembly approval. The proposed
4        sourcing agreements shall not take effect unless,
5        based on the facility cost report and the Commission's
6        report, the General Assembly enacts authorizing
7        legislation approving (A) the projected price, stated
8        in cents per kilowatthour, to be charged for
9        electricity generated by the initial clean coal
10        facility, (B) the projected impact on residential and
11        small business customers' bills over the life of the
12        sourcing agreements, and (C) the maximum allowable
13        return on equity for the project; and
14            (iv) Commission review. If the General Assembly
15        enacts authorizing legislation pursuant to
16        subparagraph (iii) approving a sourcing agreement, the
17        Commission shall, within 90 days of such enactment,
18        complete a review of such sourcing agreement. During
19        such time period, the Commission shall implement any
20        directive of the General Assembly, resolve any
21        disputes between the parties to the sourcing agreement
22        concerning the terms of such agreement, approve the
23        form of such agreement, and issue an order finding that
24        the sourcing agreement is prudent and reasonable.
25        The facility cost report shall be prepared as follows:
26            (A) The facility cost report shall be prepared by

 

 

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1        duly licensed engineering and construction firms
2        detailing the estimated capital costs payable to one or
3        more contractors or suppliers for the engineering,
4        procurement and construction of the components
5        comprising the initial clean coal facility and the
6        estimated costs of operation and maintenance of the
7        facility. The facility cost report shall include:
8                (i) an estimate of the capital cost of the core
9            plant based on one or more front end engineering
10            and design studies for the gasification island and
11            related facilities. The core plant shall include
12            all civil, structural, mechanical, electrical,
13            control, and safety systems.
14                (ii) an estimate of the capital cost of the
15            balance of the plant, including any capital costs
16            associated with sequestration of carbon dioxide
17            emissions and all interconnects and interfaces
18            required to operate the facility, such as
19            transmission of electricity, construction or
20            backfeed power supply, pipelines to transport
21            substitute natural gas or carbon dioxide, potable
22            water supply, natural gas supply, water supply,
23            water discharge, landfill, access roads, and coal
24            delivery.
25            The quoted construction costs shall be expressed
26        in nominal dollars as of the date that the quote is

 

 

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1        prepared and shall include capitalized financing costs
2        during construction, taxes, insurance, and other
3        owner's costs, and an assumed escalation in materials
4        and labor beyond the date as of which the construction
5        cost quote is expressed.
6            (B) The front end engineering and design study for
7        the gasification island and the cost study for the
8        balance of plant shall include sufficient design work
9        to permit quantification of major categories of
10        materials, commodities and labor hours, and receipt of
11        quotes from vendors of major equipment required to
12        construct and operate the clean coal facility.
13            (C) The facility cost report shall also include an
14        operating and maintenance cost quote that will provide
15        the estimated cost of delivered fuel, personnel,
16        maintenance contracts, chemicals, catalysts,
17        consumables, spares, and other fixed and variable
18        operations and maintenance costs. The delivered fuel
19        cost estimate will be provided by a recognized third
20        party expert or experts in the fuel and transportation
21        industries. The balance of the operating and
22        maintenance cost quote, excluding delivered fuel
23        costs, will be developed based on the inputs provided
24        by duly licensed engineering and construction firms
25        performing the construction cost quote, potential
26        vendors under long-term service agreements and plant

 

 

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1        operating agreements, or recognized third party plant
2        operator or operators.
3            The operating and maintenance cost quote
4        (including the cost of the front end engineering and
5        design study) shall be expressed in nominal dollars as
6        of the date that the quote is prepared and shall
7        include taxes, insurance, and other owner's costs, and
8        an assumed escalation in materials and labor beyond the
9        date as of which the operating and maintenance cost
10        quote is expressed.
11            (D) The facility cost report shall also include an
12        analysis of the initial clean coal facility's ability
13        to deliver power and energy into the applicable
14        regional transmission organization markets and an
15        analysis of the expected capacity factor for the
16        initial clean coal facility.
17            (E) Amounts paid to third parties unrelated to the
18        owner or owners of the initial clean coal facility to
19        prepare the core plant construction cost quote,
20        including the front end engineering and design study,
21        and the operating and maintenance cost quote will be
22        reimbursed through Coal Development Bonds.
23        (5) Re-powering and retrofitting coal-fired power
24    plants previously owned by Illinois utilities to qualify as
25    clean coal facilities. During the 2009 procurement
26    planning process and thereafter, the Agency and the

 

 

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1    Commission shall consider sourcing agreements covering
2    electricity generated by power plants that were previously
3    owned by Illinois utilities and that have been or will be
4    converted into clean coal facilities, as defined by Section
5    1-10 of this Act. Pursuant to such procurement planning
6    process, the owners of such facilities may propose to the
7    Agency sourcing agreements with utilities and alternative
8    retail electric suppliers required to comply with
9    subsection (d) of this Section and item (5) of subsection
10    (d) of Section 16-115 of the Public Utilities Act, covering
11    electricity generated by such facilities. In the case of
12    sourcing agreements that are power purchase agreements,
13    the contract price for electricity sales shall be
14    established on a cost of service basis. In the case of
15    sourcing agreements that are contracts for differences,
16    the contract price from which the reference price is
17    subtracted shall be established on a cost of service basis.
18    The Agency and the Commission may approve any such utility
19    sourcing agreements that do not exceed cost-based
20    benchmarks developed by the procurement administrator, in
21    consultation with the Commission staff, Agency staff and
22    the procurement monitor, subject to Commission review and
23    approval. The Commission shall have authority to inspect
24    all books and records associated with these clean coal
25    facilities during the term of any such contract.
26        (6) Costs incurred under this subsection (d) or

 

 

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1    pursuant to a contract entered into under this subsection
2    (d) shall be deemed prudently incurred and reasonable in
3    amount and the electric utility shall be entitled to full
4    cost recovery pursuant to the tariffs filed with the
5    Commission.
6    (d-5) Diverse energy portfolio standard.
7        (1) Beginning in planning year 2020 and each planning
8    year thereafter, the procurement plans shall include
9    electricity generated by qualified clean coal facilities.
10    Each utility shall enter into one or more sourcing
11    agreements with qualified clean coal facilities. It is the
12    goal of the State that, by June 1, 2020, each utility shall
13    enter into sourcing agreements with qualified clean coal
14    facilities covering electricity generated by qualified
15    clean coal facilities representing at least 40% of each
16    utility's annual retail sales of electricity to retail
17    customers in the State during the planning year immediately
18    prior to the development of a procurement plan, subject to
19    the limits specified in paragraph (3) of this subsection
20    (d-5). The percentage required to be procured by a utility
21    under this subsection (d-5) shall be reduced by the
22    percentage of clean coal procured by the utility under a
23    sourcing agreement under subsection (d) of this Act.
24        Utilities shall maintain adequate records documenting
25    the purchases under the sourcing agreement to comply with
26    this subsection (d-5) and shall file an accounting with the

 

 

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1    load forecast that must be filed with the Agency by July 15
2    of each year, under subsection (d) of Section 16-111.5 of
3    the Public Utilities Act.
4        A utility shall be deemed to have complied with the
5    diverse energy portfolio standard specified in this
6    subsection (d-5) if the utility enters into a sourcing
7    agreement as required by this subsection (d-5).
8        (2) For the purposes of this subsection (d-5), the
9    required execution of sourcing agreements for a particular
10    year shall be measured as a percentage of the actual amount
11    of electricity (megawatt-hours) supplied by the electric
12    utility to all retail customers in the planning year ending
13    immediately prior to the agreement's execution. For
14    purposes of this subsection (d-5), the amount paid per
15    kilowatthour means the total amount paid for electric
16    service expressed on a per kilowatthour basis. For purposes
17    of this subsection (d-5), the total amount paid for
18    electric service includes without limitation amounts paid
19    for supply, transmission, distribution, surcharges, and
20    add-on taxes.
21        (3) Notwithstanding the requirements of this
22    subsection (d-5), the total procured from qualified clean
23    coal facilities under the procurement plan for any single
24    year shall be subject to the limitations of this paragraph
25    (3). The procurement shall be reduced for all retail
26    customers based on the amount necessary to limit the annual

 

 

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1    estimated average net increase due to the costs of
2    electricity generated by a qualified clean coal facility
3    included in the amounts paid by all retail customers in
4    connection with electric service to no more than 2.015% of
5    the amount paid per kilowatthour by all retail customers
6    during the year ending May 31, 2009. This requirement may
7    be altered only as provided in statute.
8        (4) Costs incurred under this subsection (d-5) or under
9    a contract entered into under this subsection (d-5) shall
10    be deemed prudently incurred and reasonable in amount and
11    the electric utility shall be entitled to full cost
12    recovery under the tariffs filed with the Commission.
13    (e) The draft procurement plans are subject to public
14comment, as required by Section 16-111.5 of the Public
15Utilities Act.
16    (f) The Agency shall submit the final procurement plan to
17the Commission. The Agency shall revise a procurement plan if
18the Commission determines that it does not meet the standards
19set forth in Section 16-111.5 of the Public Utilities Act.
20    (g) The Agency shall assess fees to each affected utility
21to recover the costs incurred in preparation of the annual
22procurement plan for the utility.
23    (h) The Agency shall assess fees to each bidder to recover
24the costs incurred in connection with a competitive procurement
25process.
26(Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11;

 

 

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197-618, eff. 10-26-11; 97-658, eff. 1-13-12; 97-813, eff.
27-13-12; 98-463, eff. 8-16-13.)
 
3    Section 5-35. The Public Utilities Act is amended by
4changing Sections 16-111.5 and 16-115 as follows:
 
5    (220 ILCS 5/16-111.5)
6    Sec. 16-111.5. Provisions relating to procurement.
7    (a) An electric utility that on December 31, 2005 served at
8least 100,000 customers in Illinois shall procure power and
9energy for its eligible retail customers in accordance with the
10applicable provisions set forth in Section 1-75 of the Illinois
11Power Agency Act and this Section, and beginning with the 2020
12planning year, shall procure electricity generated by
13qualified clean coal facilities for all retail customers in its
14service area in accordance with the applicable provisions set
15forth in Section 1-75 of the Illinois Power Agency Act and this
16Section. A small multi-jurisdictional electric utility that on
17December 31, 2005 served less than 100,000 customers in
18Illinois may elect to procure power and energy for all or a
19portion of its eligible Illinois retail customers in accordance
20with the applicable provisions set forth in this Section and
21Section 1-75 of the Illinois Power Agency Act. This Section
22shall not apply to a small multi-jurisdictional utility until
23such time as a small multi-jurisdictional utility requests the
24Illinois Power Agency to prepare a procurement plan for its

 

 

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1eligible retail customers. "Eligible retail customers" for the
2purposes of this Section means those retail customers that
3purchase power and energy from the electric utility under
4fixed-price bundled service tariffs, other than those retail
5customers whose service is declared or deemed competitive under
6Section 16-113 and those other customer groups specified in
7this Section, including self-generating customers, customers
8electing hourly pricing, or those customers who are otherwise
9ineligible for fixed-price bundled tariff service. Those
10customers that are excluded from the definition of "eligible
11retail customers" shall not be included in the procurement plan
12load requirements, and the utility shall procure any supply
13requirements, including capacity, ancillary services, and
14hourly priced energy, in the applicable markets as needed to
15serve those customers, provided that the utility may include in
16its procurement plan load requirements for the load that is
17associated with those retail customers whose service has been
18declared or deemed competitive pursuant to Section 16-113 of
19this Act to the extent that those customers are purchasing
20power and energy during one of the transition periods
21identified in subsection (b) of Section 16-113 of this Act.
22    (b) A procurement plan shall be prepared for each electric
23utility consistent with the applicable requirements of the
24Illinois Power Agency Act and this Section. For purposes of
25this Section, Illinois electric utilities that are affiliated
26by virtue of a common parent company are considered to be a

 

 

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1single electric utility. Small multi-jurisdictional utilities
2may request a procurement plan for a portion of or all of its
3Illinois load. Each procurement plan shall analyze the
4projected balance of supply and demand for eligible retail
5customers over a 5-year period with the first planning year
6beginning on June 1 of the year following the year in which the
7plan is filed. The plan shall specifically identify the
8wholesale products to be procured following plan approval, and
9shall follow all the requirements set forth in the Public
10Utilities Act and all applicable State and federal laws,
11statutes, rules, or regulations, as well as Commission orders.
12Nothing in this Section precludes consideration of contracts
13longer than 5 years and related forecast data. Unless specified
14otherwise in this Section, in the procurement plan or in the
15implementing tariff, any procurement occurring in accordance
16with this plan shall be competitively bid through a request for
17proposals process. Approval and implementation of the
18procurement plan shall be subject to review and approval by the
19Commission according to the provisions set forth in this
20Section. A procurement plan shall include each of the following
21components:
22        (1) Hourly load analysis. This analysis shall include:
23            (i) multi-year historical analysis of hourly
24        loads;
25            (ii) switching trends and competitive retail
26        market analysis;

 

 

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1            (iii) known or projected changes to future loads;
2        and
3            (iv) growth forecasts by customer class.
4        (2) Analysis of the impact of any demand side and
5    renewable energy initiatives. This analysis shall include:
6            (i) the impact of demand response programs and
7        energy efficiency programs, both current and
8        projected; for small multi-jurisdictional utilities,
9        the impact of demand response and energy efficiency
10        programs approved pursuant to Section 8-408 of this
11        Act, both current and projected; and
12            (ii) supply side needs that are projected to be
13        offset by purchases of renewable energy resources, if
14        any.
15        (3) A plan for meeting the expected load requirements
16    that will not be met through preexisting contracts. This
17    plan shall include:
18            (i) definitions of the different Illinois retail
19        customer classes for which supply is being purchased;
20            (ii) the proposed mix of demand-response products
21        for which contracts will be executed during the next
22        year. For small multi-jurisdictional electric
23        utilities that on December 31, 2005 served fewer than
24        100,000 customers in Illinois, these shall be defined
25        as demand-response products offered in an energy
26        efficiency plan approved pursuant to Section 8-408 of

 

 

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1        this Act. The cost-effective demand-response measures
2        shall be procured whenever the cost is lower than
3        procuring comparable capacity products, provided that
4        such products shall:
5                (A) be procured by a demand-response provider
6            from eligible retail customers;
7                (B) at least satisfy the demand-response
8            requirements of the regional transmission
9            organization market in which the utility's service
10            territory is located, including, but not limited
11            to, any applicable capacity or dispatch
12            requirements;
13                (C) provide for customers' participation in
14            the stream of benefits produced by the
15            demand-response products;
16                (D) provide for reimbursement by the
17            demand-response provider of the utility for any
18            costs incurred as a result of the failure of the
19            supplier of such products to perform its
20            obligations thereunder; and
21                (E) meet the same credit requirements as apply
22            to suppliers of capacity, in the applicable
23            regional transmission organization market;
24            (iii) monthly forecasted system supply
25        requirements, including expected minimum, maximum, and
26        average values for the planning period;

 

 

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1            (iv) the proposed mix and selection of standard
2        wholesale products for which contracts will be
3        executed during the next year, separately or in
4        combination, to meet that portion of its load
5        requirements not met through pre-existing contracts,
6        including but not limited to monthly 5 x 16 peak period
7        block energy, monthly off-peak wrap energy, monthly 7 x
8        24 energy, annual 5 x 16 energy, annual off-peak wrap
9        energy, annual 7 x 24 energy, monthly capacity, annual
10        capacity, peak load capacity obligations, capacity
11        purchase plan, and ancillary services;
12            (v) proposed term structures for each wholesale
13        product type included in the proposed procurement plan
14        portfolio of products; and
15            (vi) an assessment of the price risk, load
16        uncertainty, and other factors that are associated
17        with the proposed procurement plan; this assessment,
18        to the extent possible, shall include an analysis of
19        the following factors: contract terms, time frames for
20        securing products or services, fuel costs, weather
21        patterns, transmission costs, market conditions, and
22        the governmental regulatory environment; the proposed
23        procurement plan shall also identify alternatives for
24        those portfolio measures that are identified as having
25        significant price risk.
26        (4) Proposed procedures for balancing loads. The

 

 

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1    procurement plan shall include, for load requirements
2    included in the procurement plan, the process for (i)
3    hourly balancing of supply and demand and (ii) the criteria
4    for portfolio re-balancing in the event of significant
5    shifts in load.
6    (c) The procurement process set forth in Section 1-75 of
7the Illinois Power Agency Act and subsection (e) of this
8Section shall be administered by a procurement administrator
9and monitored by a procurement monitor.
10        (1) The procurement administrator shall:
11            (i) design the final procurement process in
12        accordance with Section 1-75 of the Illinois Power
13        Agency Act and subsection (e) of this Section following
14        Commission approval of the procurement plan;
15            (ii) develop benchmarks in accordance with
16        subsection (e)(3) to be used to evaluate bids; these
17        benchmarks shall be submitted to the Commission for
18        review and approval on a confidential basis prior to
19        the procurement event;
20            (iii) serve as the interface between the electric
21        utility and suppliers;
22            (iv) manage the bidder pre-qualification and
23        registration process;
24            (v) obtain the electric utilities' agreement to
25        the final form of all supply contracts and credit
26        collateral agreements;

 

 

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1            (vi) administer the request for proposals process;
2            (vii) have the discretion to negotiate to
3        determine whether bidders are willing to lower the
4        price of bids that meet the benchmarks approved by the
5        Commission; any post-bid negotiations with bidders
6        shall be limited to price only and shall be completed
7        within 24 hours after opening the sealed bids and shall
8        be conducted in a fair and unbiased manner; in
9        conducting the negotiations, there shall be no
10        disclosure of any information derived from proposals
11        submitted by competing bidders; if information is
12        disclosed to any bidder, it shall be provided to all
13        competing bidders;
14            (viii) maintain confidentiality of supplier and
15        bidding information in a manner consistent with all
16        applicable laws, rules, regulations, and tariffs;
17            (ix) submit a confidential report to the
18        Commission recommending acceptance or rejection of
19        bids;
20            (x) notify the utility of contract counterparties
21        and contract specifics; and
22            (xi) administer related contingency procurement
23        events.
24        (2) The procurement monitor, who shall be retained by
25    the Commission, shall:
26            (i) monitor interactions among the procurement

 

 

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1        administrator, suppliers, and utility;
2            (ii) monitor and report to the Commission on the
3        progress of the procurement process;
4            (iii) provide an independent confidential report
5        to the Commission regarding the results of the
6        procurement event;
7            (iv) assess compliance with the procurement plans
8        approved by the Commission for each utility that on
9        December 31, 2005 provided electric service to a least
10        100,000 customers in Illinois and for each small
11        multi-jurisdictional utility that on December 31, 2005
12        served less than 100,000 customers in Illinois;
13            (v) preserve the confidentiality of supplier and
14        bidding information in a manner consistent with all
15        applicable laws, rules, regulations, and tariffs;
16            (vi) provide expert advice to the Commission and
17        consult with the procurement administrator regarding
18        issues related to procurement process design, rules,
19        protocols, and policy-related matters; and
20            (vii) consult with the procurement administrator
21        regarding the development and use of benchmark
22        criteria, standard form contracts, credit policies,
23        and bid documents.
24    (d) Except as provided in subsection (j), the planning
25process shall be conducted as follows:
26        (1) Beginning in 2008, each Illinois utility procuring

 

 

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1    power pursuant to this Section shall annually provide a
2    range of load forecasts to the Illinois Power Agency by
3    July 15 of each year, or such other date as may be required
4    by the Commission or Agency. The load forecasts shall cover
5    the 5-year procurement planning period for the next
6    procurement plan and shall include hourly data
7    representing a high-load, low-load and expected-load
8    scenario for the load of the eligible retail customers. The
9    utility shall provide supporting data and assumptions for
10    each of the scenarios.
11        (2) Beginning in 2008, the Illinois Power Agency shall
12    prepare a procurement plan by August 15th of each year, or
13    such other date as may be required by the Commission. The
14    procurement plan shall identify the portfolio of
15    demand-response and power and energy products to be
16    procured. Cost-effective demand-response measures shall be
17    procured as set forth in item (iii) of subsection (b) of
18    this Section. Copies of the procurement plan shall be
19    posted and made publicly available on the Agency's and
20    Commission's websites, and copies shall also be provided to
21    each affected electric utility. An affected utility shall
22    have 30 days following the date of posting to provide
23    comment to the Agency on the procurement plan. Other
24    interested entities also may comment on the procurement
25    plan. All comments submitted to the Agency shall be
26    specific, supported by data or other detailed analyses,

 

 

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1    and, if objecting to all or a portion of the procurement
2    plan, accompanied by specific alternative wording or
3    proposals. All comments shall be posted on the Agency's and
4    Commission's websites. During this 30-day comment period,
5    the Agency shall hold at least one public hearing within
6    each utility's service area for the purpose of receiving
7    public comment on the procurement plan. Within 14 days
8    following the end of the 30-day review period, the Agency
9    shall revise the procurement plan as necessary based on the
10    comments received and file the procurement plan with the
11    Commission and post the procurement plan on the websites.
12        (3) Within 5 days after the filing of the procurement
13    plan, any person objecting to the procurement plan shall
14    file an objection with the Commission. Within 10 days after
15    the filing, the Commission shall determine whether a
16    hearing is necessary. The Commission shall enter its order
17    confirming or modifying the procurement plan within 90 days
18    after the filing of the procurement plan by the Illinois
19    Power Agency.
20        (4) The Commission shall approve the procurement plan,
21    including expressly the forecast used in the procurement
22    plan, if the Commission determines that it will ensure
23    adequate, reliable, affordable, efficient, and
24    environmentally sustainable electric service at the lowest
25    total cost over time, taking into account any benefits of
26    price stability.

 

 

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1    (e) The procurement process shall include each of the
2following components:
3        (1) Solicitation, pre-qualification, and registration
4    of bidders. The procurement administrator shall
5    disseminate information to potential bidders to promote a
6    procurement event, notify potential bidders that the
7    procurement administrator may enter into a post-bid price
8    negotiation with bidders that meet the applicable
9    benchmarks, provide supply requirements, and otherwise
10    explain the competitive procurement process. In addition
11    to such other publication as the procurement administrator
12    determines is appropriate, this information shall be
13    posted on the Illinois Power Agency's and the Commission's
14    websites. The procurement administrator shall also
15    administer the prequalification process, including
16    evaluation of credit worthiness, compliance with
17    procurement rules, and agreement to the standard form
18    contract developed pursuant to paragraph (2) of this
19    subsection (e). The procurement administrator shall then
20    identify and register bidders to participate in the
21    procurement event.
22        (2) Standard contract forms and credit terms and
23    instruments. The procurement administrator, in
24    consultation with the utilities, the Commission, and other
25    interested parties and subject to Commission oversight,
26    shall develop and provide standard contract forms for the

 

 

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1    supplier contracts that meet generally accepted industry
2    practices. Standard credit terms and instruments that meet
3    generally accepted industry practices shall be similarly
4    developed. The procurement administrator shall make
5    available to the Commission all written comments it
6    receives on the contract forms, credit terms, or
7    instruments. If the procurement administrator cannot reach
8    agreement with the applicable electric utility as to the
9    contract terms and conditions, the procurement
10    administrator must notify the Commission of any disputed
11    terms and the Commission shall resolve the dispute. The
12    terms of the contracts shall not be subject to negotiation
13    by winning bidders, and the bidders must agree to the terms
14    of the contract in advance so that winning bids are
15    selected solely on the basis of price.
16        (3) Establishment of a market-based price benchmark.
17    As part of the development of the procurement process, the
18    procurement administrator, in consultation with the
19    Commission staff, Agency staff, and the procurement
20    monitor, shall establish benchmarks for evaluating the
21    final prices in the contracts for each of the products that
22    will be procured through the procurement process. The
23    benchmarks shall be based on price data for similar
24    products for the same delivery period and same delivery
25    hub, or other delivery hubs after adjusting for that
26    difference. The price benchmarks may also be adjusted to

 

 

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1    take into account differences between the information
2    reflected in the underlying data sources and the specific
3    products and procurement process being used to procure
4    power for the Illinois utilities. The benchmarks shall be
5    confidential but shall be provided to, and will be subject
6    to Commission review and approval, prior to a procurement
7    event.
8        (4) Request for proposals competitive procurement
9    process. The procurement administrator shall design and
10    issue a request for proposals to supply electricity in
11    accordance with each utility's procurement plan, as
12    approved by the Commission. The request for proposals shall
13    set forth a procedure for sealed, binding commitment
14    bidding with pay-as-bid settlement, and provision for
15    selection of bids on the basis of price.
16        (5) A plan for implementing contingencies in the event
17    of supplier default or failure of the procurement process
18    to fully meet the expected load requirement due to
19    insufficient supplier participation, Commission rejection
20    of results, or any other cause.
21            (i) Event of supplier default: In the event of
22        supplier default, the utility shall review the
23        contract of the defaulting supplier to determine if the
24        amount of supply is 200 megawatts or greater, and if
25        there are more than 60 days remaining of the contract
26        term. If both of these conditions are met, and the

 

 

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1        default results in termination of the contract, the
2        utility shall immediately notify the Illinois Power
3        Agency that a request for proposals must be issued to
4        procure replacement power, and the procurement
5        administrator shall run an additional procurement
6        event. If the contracted supply of the defaulting
7        supplier is less than 200 megawatts or there are less
8        than 60 days remaining of the contract term, the
9        utility shall procure power and energy from the
10        applicable regional transmission organization market,
11        including ancillary services, capacity, and day-ahead
12        or real time energy, or both, for the duration of the
13        contract term to replace the contracted supply;
14        provided, however, that if a needed product is not
15        available through the regional transmission
16        organization market it shall be purchased from the
17        wholesale market.
18            (ii) Failure of the procurement process to fully
19        meet the expected load requirement: If the procurement
20        process fails to fully meet the expected load
21        requirement due to insufficient supplier participation
22        or due to a Commission rejection of the procurement
23        results, the procurement administrator, the
24        procurement monitor, and the Commission staff shall
25        meet within 10 days to analyze potential causes of low
26        supplier interest or causes for the Commission

 

 

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1        decision. If changes are identified that would likely
2        result in increased supplier participation, or that
3        would address concerns causing the Commission to
4        reject the results of the prior procurement event, the
5        procurement administrator may implement those changes
6        and rerun the request for proposals process according
7        to a schedule determined by those parties and
8        consistent with Section 1-75 of the Illinois Power
9        Agency Act and this subsection. In any event, a new
10        request for proposals process shall be implemented by
11        the procurement administrator within 90 days after the
12        determination that the procurement process has failed
13        to fully meet the expected load requirement.
14            (iii) In all cases where there is insufficient
15        supply provided under contracts awarded through the
16        procurement process to fully meet the electric
17        utility's load requirement, the utility shall meet the
18        load requirement by procuring power and energy from the
19        applicable regional transmission organization market,
20        including ancillary services, capacity, and day-ahead
21        or real time energy or both; provided, however, that if
22        a needed product is not available through the regional
23        transmission organization market it shall be purchased
24        from the wholesale market.
25        (6) The procurement process described in this
26    subsection is exempt from the requirements of the Illinois

 

 

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1    Procurement Code, pursuant to Section 20-10 of that Code.
2    (f) Within 2 business days after opening the sealed bids,
3the procurement administrator shall submit a confidential
4report to the Commission. The report shall contain the results
5of the bidding for each of the products along with the
6procurement administrator's recommendation for the acceptance
7and rejection of bids based on the price benchmark criteria and
8other factors observed in the process. The procurement monitor
9also shall submit a confidential report to the Commission
10within 2 business days after opening the sealed bids. The
11report shall contain the procurement monitor's assessment of
12bidder behavior in the process as well as an assessment of the
13procurement administrator's compliance with the procurement
14process and rules. The Commission shall review the confidential
15reports submitted by the procurement administrator and
16procurement monitor, and shall accept or reject the
17recommendations of the procurement administrator within 2
18business days after receipt of the reports.
19    (g) Within 3 business days after the Commission decision
20approving the results of a procurement event, the utility shall
21enter into binding contractual arrangements with the winning
22suppliers using the standard form contracts; except that the
23utility shall not be required either directly or indirectly to
24execute the contracts if a tariff that is consistent with
25subsection (l) of this Section has not been approved and placed
26into effect for that utility.

 

 

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1    (h) The names of the successful bidders and the load
2weighted average of the winning bid prices for each contract
3type and for each contract term shall be made available to the
4public at the time of Commission approval of a procurement
5event. The Commission, the procurement monitor, the
6procurement administrator, the Illinois Power Agency, and all
7participants in the procurement process shall maintain the
8confidentiality of all other supplier and bidding information
9in a manner consistent with all applicable laws, rules,
10regulations, and tariffs. Confidential information, including
11the confidential reports submitted by the procurement
12administrator and procurement monitor pursuant to subsection
13(f) of this Section, shall not be made publicly available and
14shall not be discoverable by any party in any proceeding,
15absent a compelling demonstration of need, nor shall those
16reports be admissible in any proceeding other than one for law
17enforcement purposes.
18    (i) Within 2 business days after a Commission decision
19approving the results of a procurement event or such other date
20as may be required by the Commission from time to time, the
21utility shall file for informational purposes with the
22Commission its actual or estimated retail supply charges, as
23applicable, by customer supply group reflecting the costs
24associated with the procurement and computed in accordance with
25the tariffs filed pursuant to subsection (l) of this Section
26and approved by the Commission.

 

 

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1    (j) Within 60 days following the effective date of this
2amendatory Act, each electric utility that on December 31, 2005
3provided electric service to at least 100,000 customers in
4Illinois shall prepare and file with the Commission an initial
5procurement plan, which shall conform in all material respects
6to the requirements of the procurement plan set forth in
7subsection (b); provided, however, that the Illinois Power
8Agency Act shall not apply to the initial procurement plan
9prepared pursuant to this subsection. The initial procurement
10plan shall identify the portfolio of power and energy products
11to be procured and delivered for the period June 2008 through
12May 2009, and shall identify the proposed procurement
13administrator, who shall have the same experience and expertise
14as is required of a procurement administrator hired pursuant to
15Section 1-75 of the Illinois Power Agency Act. Copies of the
16procurement plan shall be posted and made publicly available on
17the Commission's website. The initial procurement plan may
18include contracts for renewable resources that extend beyond
19May 2009.
20        (i) Within 14 days following filing of the initial
21    procurement plan, any person may file a detailed objection
22    with the Commission contesting the procurement plan
23    submitted by the electric utility. All objections to the
24    electric utility's plan shall be specific, supported by
25    data or other detailed analyses. The electric utility may
26    file a response to any objections to its procurement plan

 

 

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1    within 7 days after the date objections are due to be
2    filed. Within 7 days after the date the utility's response
3    is due, the Commission shall determine whether a hearing is
4    necessary. If it determines that a hearing is necessary, it
5    shall require the hearing to be completed and issue an
6    order on the procurement plan within 60 days after the
7    filing of the procurement plan by the electric utility.
8        (ii) The order shall approve or modify the procurement
9    plan, approve an independent procurement administrator,
10    and approve or modify the electric utility's tariffs that
11    are proposed with the initial procurement plan. The
12    Commission shall approve the procurement plan if the
13    Commission determines that it will ensure adequate,
14    reliable, affordable, efficient, and environmentally
15    sustainable electric service at the lowest total cost over
16    time, taking into account any benefits of price stability.
17    (k) In order to promote price stability for residential and
18small commercial customers during the transition to
19competition in Illinois, and notwithstanding any other
20provision of this Act, each electric utility subject to this
21Section shall enter into one or more multi-year financial swap
22contracts that become effective on the effective date of this
23amendatory Act. These contracts may be executed with generators
24and power marketers, including affiliated interests of the
25electric utility. These contracts shall be for a term of no
26more than 5 years and shall, for each respective utility or for

 

 

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1any Illinois electric utilities that are affiliated by virtue
2of a common parent company and that are thereby considered a
3single electric utility for purposes of this subsection (k),
4not exceed in the aggregate 3,000 megawatts for any hour of the
5year. The contracts shall be financial contracts and not energy
6sales contracts. The contracts shall be executed as
7transactions under a negotiated master agreement based on the
8form of master agreement for financial swap contracts sponsored
9by the International Swaps and Derivatives Association, Inc.
10and shall be considered pre-existing contracts in the
11utilities' procurement plans for residential and small
12commercial customers. Costs incurred pursuant to a contract
13authorized by this subsection (k) shall be deemed prudently
14incurred and reasonable in amount and the electric utility
15shall be entitled to full cost recovery pursuant to the tariffs
16filed with the Commission.
17    (k-5) In order to promote price stability for residential
18and small commercial customers during the infrastructure
19investment program described in subsection (b) of Section
2016-108.5 of this Act, and notwithstanding any other provision
21of this Act or the Illinois Power Agency Act, for each electric
22utility that serves more than one million retail customers in
23Illinois, the Illinois Power Agency shall conduct a procurement
24event within 120 days after October 26, 2011 (the effective
25date of Public Act 97-616) and may procure contracts for energy
26and renewable energy credits for the period June 1, 2013

 

 

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1through December 31, 2017 that satisfy the requirements of this
2subsection (k-5), including the benchmarks described in this
3subsection. These contracts shall be entered into as the result
4of a competitive procurement event, and, to the extent that any
5provisions of this Section or the Illinois Power Agency Act do
6not conflict with this subsection (k-5), such provisions shall
7apply to the procurement event. The energy contracts shall be
8for 24 hour by 7 day supply over a term that runs from the first
9delivery year through December 31, 2017. For a utility that
10serves over 2 million customers, the energy contracts shall be
11multi-year with pricing escalating at 2.5% per annum. The
12energy contracts may be designed as financial swaps or may
13require physical delivery.
14    Within 30 days of October 26, 2011 (the effective date of
15Public Act 97-616), each such utility shall submit to the
16Agency updated load forecasts for the period June 1, 2013
17through December 31, 2017. The megawatt volume of the contracts
18shall be based on the updated load forecasts of the minimum
19monthly on-peak or off-peak average load requirements shown in
20the forecasts, taking into account any existing energy
21contracts in effect as well as the expected migration of the
22utility's customers to alternative retail electric suppliers.
23The renewable energy credit volume shall be based on the number
24of credits that would satisfy the requirements of subsection
25(c) of Section 1-75 of the Illinois Power Agency Act, subject
26to the rate impact caps and other provisions of subsection (c)

 

 

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1of Section 1-75 of the Illinois Power Agency Act. The
2evaluation of contract bids in the competitive procurement
3events for energy and for renewable energy credits shall
4incorporate price benchmarks set collaboratively by the
5Agency, the procurement administrator, the staff of the
6Commission, and the procurement monitor. If the contracts are
7swap contracts, then they shall be executed as transactions
8under a negotiated master agreement based on the form of master
9agreement for financial swap contracts sponsored by the
10International Swaps and Derivatives Association, Inc. Costs
11incurred pursuant to a contract authorized by this subsection
12(k-5) shall be deemed prudently incurred and reasonable in
13amount and the electric utility shall be entitled to full cost
14recovery pursuant to the tariffs filed with the Commission.
15    The cost of administering the procurement event described
16in this subsection (k-5) shall be paid by the winning supplier
17or suppliers to the procurement administrator through a
18supplier fee. In the event that there is no winning supplier
19for a particular utility, such utility will pay the procurement
20administrator for the costs associated with the procurement
21event, and those costs shall not be a recoverable expense.
22Nothing in this subsection (k-5) is intended to alter the
23recovery of costs for any other procurement event.
24    (l) An electric utility shall recover its costs incurred
25under this Section, including, but not limited to, the costs of
26procuring power and energy demand-response resources under

 

 

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1this Section. The utility shall file with the initial
2procurement plan its proposed tariffs through which its costs
3of procuring power that are incurred pursuant to a
4Commission-approved procurement plan and those other costs
5identified in this subsection (l), will be recovered. The
6tariffs shall include a formula rate or charge designed to pass
7through both the costs incurred by the utility in procuring a
8supply of electric power and energy for the applicable customer
9classes with no mark-up or return on the price paid by the
10utility for that supply, plus any just and reasonable costs
11that the utility incurs in arranging and providing for the
12supply of electric power and energy. The formula rate or charge
13shall also contain provisions that ensure that its application
14does not result in over or under recovery due to changes in
15customer usage and demand patterns, and that provide for the
16correction, on at least an annual basis, of any accounting
17errors that may occur. A utility shall recover through the
18tariff all reasonable costs incurred to implement or comply
19with any procurement plan that is developed and put into effect
20pursuant to Section 1-75 of the Illinois Power Agency Act and
21this Section, including any fees assessed by the Illinois Power
22Agency, costs associated with load balancing, and contingency
23plan costs. The electric utility shall also recover its full
24costs of procuring electric supply for which it contracted
25before the effective date of this Section in conjunction with
26the provision of full requirements service under fixed-price

 

 

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1bundled service tariffs subsequent to December 31, 2006. All
2such costs shall be deemed to have been prudently incurred. The
3pass-through tariffs that are filed and approved pursuant to
4this Section shall not be subject to review under, or in any
5way limited by, Section 16-111(i) of this Act.
6    (m) The Commission has the authority to adopt rules to
7carry out the provisions of this Section. For the public
8interest, safety, and welfare, the Commission also has
9authority to adopt rules to carry out the provisions of this
10Section on an emergency basis immediately following the
11effective date of this amendatory Act.
12    (n) Notwithstanding any other provision of this Act, any
13affiliated electric utilities that submit a single procurement
14plan covering their combined needs may procure for those
15combined needs in conjunction with that plan, and may enter
16jointly into power supply contracts, purchases, and other
17procurement arrangements, and allocate capacity and energy and
18cost responsibility therefor among themselves in proportion to
19their requirements.
20    (o) On or before June 1 of each year, the Commission shall
21hold an informal hearing for the purpose of receiving comments
22on the prior year's procurement process and any recommendations
23for change.
24    (p) An electric utility subject to this Section may propose
25to invest, lease, own, or operate an electric generation
26facility as part of its procurement plan, provided the utility

 

 

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1demonstrates that such facility is the least-cost option to
2provide electric service to eligible retail customers. If the
3facility is shown to be the least-cost option and is included
4in a procurement plan prepared in accordance with Section 1-75
5of the Illinois Power Agency Act and this Section, then the
6electric utility shall make a filing pursuant to Section 8-406
7of this Act, and may request of the Commission any statutory
8relief required thereunder. If the Commission grants all of the
9necessary approvals for the proposed facility, such supply
10shall thereafter be considered as a pre-existing contract under
11subsection (b) of this Section. The Commission shall in any
12order approving a proposal under this subsection specify how
13the utility will recover the prudently incurred costs of
14investing in, leasing, owning, or operating such generation
15facility through just and reasonable rates charged to eligible
16retail customers. Cost recovery for facilities included in the
17utility's procurement plan pursuant to this subsection shall
18not be subject to review under or in any way limited by the
19provisions of Section 16-111(i) of this Act. Nothing in this
20Section is intended to prohibit a utility from filing for a
21fuel adjustment clause as is otherwise permitted under Section
229-220 of this Act.
23(Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11;
2497-813, eff. 7-13-12.)
 
25    (220 ILCS 5/16-115)

 

 

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1    Sec. 16-115. Certification of alternative retail electric
2suppliers.
3    (a) Any alternative retail electric supplier must obtain a
4certificate of service authority from the Commission in
5accordance with this Section before serving any retail customer
6or other user located in this State. An alternative retail
7electric supplier may request, and the Commission may grant, a
8certificate of service authority for the entire State or for a
9specified geographic area of the State.
10    (b) An alternative retail electric supplier seeking a
11certificate of service authority shall file with the Commission
12a verified application containing information showing that the
13applicant meets the requirements of this Section. The
14alternative retail electric supplier shall publish notice of
15its application in the official State newspaper within 10 days
16following the date of its filing. No later than 45 days after
17the application is properly filed with the Commission, and such
18notice is published, the Commission shall issue its order
19granting or denying the application.
20    (c) An application for a certificate of service authority
21shall identify the area or areas in which the applicant intends
22to offer service and the types of services it intends to offer.
23Applicants that seek to serve residential or small commercial
24retail customers within a geographic area that is smaller than
25an electric utility's service area shall submit evidence
26demonstrating that the designation of this smaller area does

 

 

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1not violate Section 16-115A. An applicant that seeks to serve
2residential or small commercial retail customers may state in
3its application for certification any limitations that will be
4imposed on the number of customers or maximum load to be
5served.
6    (d) The Commission shall grant the application for a
7certificate of service authority if it makes the findings set
8forth in this subsection based on the verified application and
9such other information as the applicant may submit:
10        (1) That the applicant possesses sufficient technical,
11    financial and managerial resources and abilities to
12    provide the service for which it seeks a certificate of
13    service authority. In determining the level of technical,
14    financial and managerial resources and abilities which the
15    applicant must demonstrate, the Commission shall consider
16    (i) the characteristics, including the size and financial
17    sophistication, of the customers that the applicant seeks
18    to serve, and (ii) whether the applicant seeks to provide
19    electric power and energy using property, plant and
20    equipment which it owns, controls or operates;
21        (2) That the applicant will comply with all applicable
22    federal, State, regional and industry rules, policies,
23    practices and procedures for the use, operation, and
24    maintenance of the safety, integrity and reliability, of
25    the interconnected electric transmission system;
26        (3) That the applicant will only provide service to

 

 

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1    retail customers in an electric utility's service area that
2    are eligible to take delivery services under this Act;
3        (4) That the applicant will comply with such
4    informational or reporting requirements as the Commission
5    may by rule establish and provide the information required
6    by Section 16-112. Any data related to contracts for the
7    purchase and sale of electric power and energy shall be
8    made available for review by the Staff of the Commission on
9    a confidential and proprietary basis and only to the extent
10    and for the purposes which the Commission determines are
11    reasonably necessary in order to carry out the purposes of
12    this Act;
13        (5) That the applicant will procure renewable energy
14    resources in accordance with Section 16-115D of this Act,
15    and will source electricity from clean coal facilities, as
16    defined in Section 1-10 of the Illinois Power Agency Act,
17    and will source electricity from qualified clean coal
18    facilities as defined in Section 1-10 of the Illinois Power
19    Agency Act in amounts at least equal to the percentages set
20    forth in subsections (c), and (d), and (d-5) of Section
21    1-75 of the Illinois Power Agency Act. For purposes of this
22    Section:
23            (i) (Blank);
24            (ii) (Blank);
25            (iii) the required sourcing of electricity
26        generated by clean coal facilities, other than the

 

 

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1        initial clean coal facility, shall be limited to the
2        amount of electricity that can be procured or sourced
3        at a price at or below the benchmarks approved by the
4        Commission each year in accordance with item (1) of
5        subsection (c), and items (1) and (5) of subsection
6        (d), and item (1) of subsection (d-5) of Section 1-75
7        of the Illinois Power Agency Act;
8            (iv) all alternative retail electric suppliers
9        shall execute a sourcing agreement to source
10        electricity from the initial clean coal facility, on
11        the terms set forth in paragraphs (3) and (4) of
12        subsection (d) of Section 1-75 of the Illinois Power
13        Agency Act, except that in lieu of the requirements in
14        subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
15        paragraph (3) of that subsection (d), the applicant
16        shall execute one or more of the following:
17                (1) if the sourcing agreement is a power
18            purchase agreement, a contract with the initial
19            clean coal facility to purchase in each hour an
20            amount of electricity equal to all clean coal
21            energy made available from the initial clean coal
22            facility during such hour, which the utilities are
23            not required to procure under the terms of
24            subsection (d) of Section 1-75 of the Illinois
25            Power Agency Act, multiplied by a fraction, the
26            numerator of which is the alternative retail

 

 

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1            electric supplier's retail market sales of
2            electricity (expressed in kilowatthours sold) in
3            the State during the prior calendar month and the
4            denominator of which is the total sales of
5            electricity (expressed in kilowatthours sold) in
6            the State by alternative retail electric suppliers
7            during such prior month that are subject to the
8            requirements of this paragraph (5) of subsection
9            (d) of this Section and subsection (d) of Section
10            1-75 of the Illinois Power Agency Act plus the
11            total sales of electricity (expressed in
12            kilowatthours sold) by utilities outside of their
13            service areas during such prior month, pursuant to
14            subsection (c) of Section 16-116 of this Act; or
15                (2) if the sourcing agreement is a contract for
16            differences, a contract with the initial clean
17            coal facility in each hour with respect to an
18            amount of electricity equal to all clean coal
19            energy made available from the initial clean coal
20            facility during such hour, which the utilities are
21            not required to procure under the terms of
22            subsection (d) of Section 1-75 of the Illinois
23            Power Agency Act, multiplied by a fraction, the
24            numerator of which is the alternative retail
25            electric supplier's retail market sales of
26            electricity (expressed in kilowatthours sold) in

 

 

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1            the State during the prior calendar month and the
2            denominator of which is the total sales of
3            electricity (expressed in kilowatthours sold) in
4            the State by alternative retail electric suppliers
5            during such prior month that are subject to the
6            requirements of this paragraph (5) of subsection
7            (d) of this Section and subsection (d) of Section
8            1-75 of the Illinois Power Agency Act plus the
9            total sales of electricity (expressed in
10            kilowatthours sold) by utilities outside of their
11            service areas during such prior month, pursuant to
12            subsection (c) of Section 16-116 of this Act;
13            (v) if, in any year after the first year of
14        commercial operation, the owner of the clean coal
15        facility fails to demonstrate to the Commission that
16        the initial clean coal facility captured and
17        sequestered at least 50% of the total carbon emissions
18        that the facility would otherwise emit or that
19        sequestration of emissions from prior years has
20        failed, resulting in the release of carbon into the
21        atmosphere, the owner of the facility must offset
22        excess emissions. Any such carbon offsets must be
23        permanent, additional, verifiable, real, located
24        within the State of Illinois, and legally and
25        practicably enforceable. The costs of any such offsets
26        that are not recoverable shall not exceed $15 million

 

 

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1        in any given year. No costs of any such purchases of
2        carbon offsets may be recovered from an alternative
3        retail electric supplier or its customers. All carbon
4        offsets purchased for this purpose and any carbon
5        emission credits associated with sequestration of
6        carbon from the facility must be permanently retired.
7        The initial clean coal facility shall not forfeit its
8        designation as a clean coal facility if the facility
9        fails to fully comply with the applicable carbon
10        sequestration requirements in any given year, provided
11        the requisite offsets are purchased. However, the
12        Attorney General, on behalf of the People of the State
13        of Illinois, may specifically enforce the facility's
14        sequestration requirement and the other terms of this
15        contract provision. Compliance with the sequestration
16        requirements and offset purchase requirements that
17        apply to the initial clean coal facility shall be
18        reviewed annually by an independent expert retained by
19        the owner of the initial clean coal facility, with the
20        advance written approval of the Attorney General;
21            (vi) The Commission shall, after notice and
22        hearing, revoke the certification of any alternative
23        retail electric supplier that fails to execute a
24        sourcing agreement with the initial clean coal
25        facility as required by item (5) of subsection (d) of
26        this Section. The sourcing agreements with this

 

 

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1        initial clean coal facility shall be subject to both
2        approval of the initial clean coal facility by the
3        General Assembly and satisfaction of the requirements
4        of item (4) of subsection (d) of Section 1-75 of the
5        Illinois Power Agency Act, and shall be executed within
6        90 days after any such approval by the General
7        Assembly. The Commission shall not accept an
8        application for certification from an alternative
9        retail electric supplier that has lost certification
10        under this subsection (d), or any corporate affiliate
11        thereof, for at least one year from the date of
12        revocation;
13        (6) With respect to an applicant that seeks to serve
14    residential or small commercial retail customers, that the
15    area to be served by the applicant and any limitations it
16    proposes on the number of customers or maximum amount of
17    load to be served meet the provisions of Section 16-115A,
18    provided, that the Commission can extend the time for
19    considering such a certificate request by up to 90 days,
20    and can schedule hearings on such a request;
21        (7) That the applicant meets the requirements of
22    subsection (a) of Section 16-128; and
23        (8) That the applicant will comply with all other
24    applicable laws and regulations.
25    (d-5) (Blank).
26    (e) A retail customer that owns a cogeneration or

 

 

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1self-generation facility and that seeks certification only to
2provide electric power and energy from such facility to retail
3customers at separate locations which customers are both (i)
4owned by, or a subsidiary or other corporate affiliate of, such
5applicant and (ii) eligible for delivery services, shall be
6granted a certificate of service authority upon filing an
7application and notifying the Commission that it has entered
8into an agreement with the relevant electric utilities pursuant
9to Section 16-118. Provided, however, that if the retail
10customer owning such cogeneration or self-generation facility
11would not be charged a transition charge due to the exemption
12provided under subsection (f) of Section 16-108 prior to the
13certification, and the retail customers at separate locations
14are taking delivery services in conjunction with purchasing
15power and energy from the facility, the retail customer on
16whose premises the facility is located shall not thereafter be
17required to pay transition charges on the power and energy that
18such retail customer takes from the facility.
19    (f) The Commission shall have the authority to promulgate
20rules and regulations to carry out the provisions of this
21Section. On or before May 1, 1999, the Commission shall adopt a
22rule or rules applicable to the certification of those
23alternative retail electric suppliers that seek to serve only
24nonresidential retail customers with maximum electrical
25demands of one megawatt or more which shall provide for (i)
26expedited and streamlined procedures for certification of such

 

 

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1alternative retail electric suppliers and (ii) specific
2criteria which, if met by any such alternative retail electric
3supplier, shall constitute the demonstration of technical,
4financial and managerial resources and abilities to provide
5service required by subsection (d) (1) of this Section, such as
6a requirement to post a bond or letter of credit, from a
7responsible surety or financial institution, of sufficient
8size for the nature and scope of the services to be provided;
9demonstration of adequate insurance for the scope and nature of
10the services to be provided; and experience in providing
11similar services in other jurisdictions.
12    (g) An alternative retail electric supplier may seek
13confidential treatment for the following information by filing
14an affidavit with the Commission so long as the affidavit meets
15the requirements in this subsection (g):
16        (1) the total annual kilowatt-hours delivered and sold
17    by an alternative retail electric supplier to retail
18    customers within each utility service territory and the
19    total annual kilowatt-hours delivered and sold by an
20    alternative retail electric supplier to retail customers
21    in all utility service territories in the preceding
22    calendar year as required by 83 Ill. Adm. Code 451.770;
23        (2) the total peak demand supplied by an alternative
24    retail electric supplier during the previous year in each
25    utility service territory as required by 83 Ill. Adm. Code
26    465.40;

 

 

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1        (3) a good faith estimate of the amount an alternative
2    retail electric supplier expects to be obliged to pay the
3    utility under single billing tariffs during the next 12
4    months and the amount of any bond or letter of credit used
5    to demonstrate an alternative retail electric supplier's
6    credit worthiness to provide single billing services
7    pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
8    The affidavit must be filed contemporaneously with the
9information for which confidential treatment is sought and must
10clearly state that the affiant seeks confidential treatment
11pursuant to this subsection (g) and the information for which
12confidential treatment is sought must be clearly identified on
13the confidential version of the document filed with the
14Commission. The affidavit must be accompanied by a
15"confidential" and a "public" version of the document or
16documents containing the information for which confidential
17treatment is sought.
18    If the alternative retail electric supplier has met the
19affidavit requirements of this subsection (g), then the
20Commission shall afford confidential treatment to the
21information identified in the affidavit for a period of 2 years
22after the date the affidavit is received by the Commission.
23    Nothing in this subsection (g) prevents an alternative
24retail electric supplier from filing a petition with the
25Commission seeking confidential treatment for information
26beyond that identified in this subsection (g) or for

 

 

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1information contained in other reports or documents filed with
2the Commission.
3    Nothing in this subsection (g) prevents the Commission, on
4its own motion, or any party from filing a formal petition with
5the Commission seeking to reconsider the conferring of
6confidential status on an item of information afforded
7confidential treatment pursuant to this subsection (g).
8    The Commission, on its own motion, may at any time initiate
9a docketed proceeding to investigate the continued
10applicability of this subsection (g) to the information
11contained in items (i), (ii), and (iii) of this subsection (g).
12If, at the end of such investigation, the Commission determines
13that a particular item of information should no longer be
14eligible for the affidavit-based process outlined in this
15subsection (g), the Commission may enter an order to remove
16that item from the list of items eligible for the process set
17forth in this subsection (g). Notwithstanding any such order,
18in the event the Commission makes such a determination, nothing
19in this subsection (g) prevents an alternative retail electric
20supplier desiring confidential treatment for such information
21from filing a formal petition with the Commission seeking
22confidential treatment for such information.
23(Source: P.A. 99-332, eff. 8-10-15.)
 
24    Section 5-40. The State Finance Act is amended by adding
25Section 5.875 as follows:
 

 

 

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1    (30 ILCS 105/5.875 new)
2    Sec. 5.875. The Clean Coal Technology Development and
3Utilization Fund.