101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5663

 

Introduced , by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-20
20 ILCS 3855/1-75
30 ILCS 105/5.930 new
220 ILCS 5/16-108
220 ILCS 5/16-111.5

    Amends the Illinois Power Agency Act, the State Finance Act, and the Public Utilities Act. Provides that the Act may be referred to as the Coal to Solar and Energy Storage Act. Authorizes the procurement of renewable energy credits by electric utilities serving more than 300,000 retail customers as of January 1, 2019. Provides for the renewable energy credits to be related to new renewable energy resources installed at the site of electric generation that on January 1, 2019 burned coal as the primary fuel source. Provides for the Illinois Power Agency to manage the procurement of the credits. Establishes the requirements for eligibility for the credits. Requires the electric utilities to file a tariff for the billing and collection of a Coal to Solar and Energy Storage Initiative Charge on each kilowatthour of electricity delivered to its delivery services customers within its service territory at specified rates and to deposit a percentage of its collections in the Coal to Solar and Energy Storage Incentive and Plant Transition Fund. Establishes the Coal to Solar and Energy Storage Incentive and Plant Transition Fund as a special fund in the State treasury to provide transitional support funding to coal-fueled electric utilities participating in the utilization of the renewable energy credits. Effective immediately.


LRB101 19090 SPS 68550 b

 

 

A BILL FOR

 

HB5663LRB101 19090 SPS 68550 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the Coal to Solar
5and Energy Storage Act.
 
6    Section 5. Legislative findings. The General Assembly
7finds and declares:
8        (1) The overall objectives of regulation of the
9    electric utility industry in this State, as expressed by
10    the General Assembly in the Illinois Power Agency Act and
11    the Public Utilities Act, include the provision of
12    adequate, efficient, reliable, environmentally safe, and
13    least-cost utility services at prices that accurately
14    reflect the long-term cost of such services and that are
15    equitable to all citizens.
16        (2) For many years, a significant portion of the
17    electricity consumed by consumers and businesses in this
18    State, particularly in the downstate region of this State,
19    has been produced by large coal-fueled electric generating
20    stations located in the downstate region. Further, these
21    electric generating stations are typically available to
22    provide electricity to serve the demands of retail
23    customers 24 hours per day, 7 days per week, without regard

 

 

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1    to inherently intermittent natural conditions such as wind
2    speeds or the hours in which solar energy is available.
3        (3) In recent years, the prices for electric generating
4    capacity and electric energy available to coal-fueled
5    generating stations located in the downstate region of this
6    State have been insufficient to enable some electric
7    generating facilities located within the downstate region
8    to remain in operation, and has placed other electric
9    generating stations in the downstate region at economic
10    risk of closure. Changes in environmental regulations have
11    also contributed to the retirement of coal-fueled
12    generating stations in the downstate region.
13        (4) Between 2015 and 2020, more than 3,700 megawatts of
14    electric generating facilities located in the downstate
15    region have been permanently retired, rendering this
16    capacity unavailable to serve the demands of Illinois
17    electricity consumers. Additional electric generating
18    capacity in the downstate region of approximately 580
19    megawatts has been announced for retirement by the end of
20    2022, resulting in a total of almost 4,300 megawatts of
21    coal-fueled electric generating capacity in the downstate
22    region that has recently been retired or announced for
23    retirement. It is estimated that additional electric
24    generating facilities located in the downstate region with
25    generating capacity, in the aggregate, of at least 2,800
26    megawatts is currently at significant risk of retirement in

 

 

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1    light of prevailing low prices for electric generating
2    capacity and electric energy in Load Zone 4 of the
3    Midcontinent Independent System Operator, Inc.
4        (5) To a significant extent, as the existing bulk power
5    system is configured, electricity, when generated, cannot
6    be stored for future use. Rather, for the most part,
7    electricity must be generated instantaneously at the time
8    and in the amount that it is demanded by residential and
9    business consumers. This characteristic of the existing
10    bulk power system is unlikely to change significantly in
11    the near term. The development of energy storage facilities
12    provides some opportunity to store some amounts of
13    electricity for use at later times. However, energy storage
14    facilities with sufficient capacity to deliver electricity
15    to meet the demands of consumers within each load zone in
16    this State, 24 hours per day on every day of the year, have
17    not yet been built. Reliable electric service at all times
18    is essential to the functioning of a modern economy and of
19    society in general. The health, welfare, and prosperity of
20    Illinois citizens, including the attractiveness of the
21    State of Illinois to business and industry, requires the
22    availability of sufficient electric generating capacity,
23    including energy storage capacity, to meet the demands of
24    consumers and businesses in this State at all times.
25        (6) In the near term, there is uncertainty as to the
26    sufficiency of electric generating resources to reliably

 

 

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1    serve the electric capacity and energy needs of residential
2    and business electricity customers in the downstate
3    region, particularly in light of the additional amounts of
4    coal-fueled electric generating resources in the downstate
5    region that are economically at risk and may retire in the
6    near future. Both the Midcontinent Independent System
7    Operator, Inc., which is the independent transmission
8    system operator for downstate Illinois, and its
9    Independent Market Monitor, have expressed concerns about
10    the sufficiency of electric generating resources in
11    downstate Illinois over the next several years, due
12    primarily to the possibility of retirements of coal-fueled
13    electric generating facilities and concerns about how
14    quickly and extensively new wind and solar generating
15    facilities will be placed into service. These concerns were
16    originally expressed by these organizations prior to the
17    announcements in 2019 of additional retirements of
18    electric generating plants with more than 2,600 megawatts
19    of capacity in the downstate region. Concerns have also
20    been expressed, based on the intermittent nature of wind
21    and solar generating facilities, as to whether the grid can
22    operate reliably without sufficient dispatchable
23    generation resources or significant additions of energy
24    storage facilities to balance the output of renewable
25    generating facilities. Other commentators have stated that
26    such concerns about resource adequacy in downstate

 

 

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1    Illinois are overstated. However, the General Assembly
2    believes that the State cannot afford to find itself in a
3    situation of insufficient electric generating resources to
4    meet the needs of Illinois residential and business
5    consumers.
6        (7) Consistent with the overall objectives of the
7    regulation of the electric utility industry in this State,
8    regulation should ensure that sufficient generating
9    capacity resources, including energy storage resources,
10    are available on both a short-term basis and a long-term
11    basis to enable the electric utility grid to meet the
12    demands of Illinois electricity consumers at all times.
13        (8) Through previous enactments beginning in 1997, the
14    General Assembly has mandated that electric utilities and
15    other load-serving entities in this State obtain specified
16    portions of the electric energy needed to serve their
17    retail loads in this State through the procurement of
18    electricity or renewable energy credits from renewable
19    energy resources, among other means through procurement
20    events managed and supervised by the Illinois Power Agency.
21        (9) Correspondingly, through previous enactments
22    beginning in 1997, the General Assembly has provided
23    incentives for the construction and operation of wind,
24    solar, and other types of renewable energy resources to
25    serve load in Illinois, and has mandated the imposition of
26    charges to retail customers, subject to caps, to fund the

 

 

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1    procurement of electricity and renewable energy credits
2    from such facilities. In such enactments, the General
3    Assembly has recognized that providing opportunities to
4    enter into long-term contracts for the purchase of
5    electricity and renewable energy credits from renewable
6    energy resources creates incentives, and in fact is
7    necessary, for the construction and operation of such
8    resources. Developers typically will not and cannot,
9    financially, develop new, large-scale renewable energy
10    generating resources without having secured long-term
11    contracts for the electricity output and renewable energy
12    credits of the new facilities.
13        (10) The permitting and siting of new wind and solar
14    generating resources in Illinois is subject to local
15    governmental control, rather than State control, and in
16    many areas of this State, there has been strong opposition
17    to the siting and construction of new utility-scale wind
18    and solar generating resources, which in turn has resulted
19    in the denial of, or withdrawal of requests for, necessary
20    approvals for some projects and the enactment of local
21    zoning ordinances imposing requirements and restrictions
22    that increase the costs and reduce the economic
23    attractiveness of such projects. This has resulted in the
24    delay or cancellation of a number of new renewable energy
25    resource projects.
26        (11) In light of the intermittent nature of many types

 

 

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1    of renewable energy resources, such as wind and solar
2    generation resources, the installation and operation of
3    electricity storage facilities in conjunction with the
4    installation and operation of renewable generation
5    resources can enhance the value of renewable energy
6    resources to the electric grid, particularly as a reliable
7    source of electric capacity as well as electric energy.
8        (12) Through legislation enacted in 2016, the General
9    Assembly, through the program commonly referred to as the
10    zero emission credit program, has provided for the
11    continued economic viability of certain
12    economically-challenged nuclear generating facilities in
13    Illinois that are also significant employers and
14    taxpayers. Certain Illinois electric utilities are
15    required to purchase specified amounts of zero emission
16    credits from these nuclear generating facilities, with
17    such purchases to be funded through an additional charge to
18    the electric utilities' retail customers as specified in
19    the legislation.
20        (13) The sites of many of the large coal-fueled
21    electric generating stations located in the downstate
22    region of this State that have recently been retired or are
23    at risk of retirement in the near term have existing
24    infrastructure and other characteristics that make them
25    suitable potential sites for development of new renewable
26    energy generating resources and electricity storage

 

 

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1    resources. This infrastructure and other characteristics
2    include large amounts of available land situated at a
3    suitable distance from populated areas, suitable levels of
4    exposure to sunlight, and high voltage interconnections to
5    the bulk electric system transmission grid at strategic
6    locations. Development of these generating plant sites for
7    large-scale renewable energy generating resources and
8    electricity storage resources can help advance this
9    State's objective of increasing the portion of the State's
10    total electricity usage that is supplied by zero emission
11    resources, while supporting the reliability of electric
12    service in the downstate region. Further, development of
13    these generating plant sites for large-scale renewable
14    energy generating resources and electricity storage
15    resources can provide employment, local economic activity,
16    and tax base for the nearby communities, offsetting, at
17    least in part, the reduction in employment, economic
18    activity, and tax revenues resulting from the retirement of
19    nearby coal-fueled electric generating stations.
20    Accordingly, the General Assembly finds that it is in the
21    public interest to encourage the redevelopment of the sites
22    of retired and to-be retired coal-fueled electric
23    generating stations as locations for renewable energy
24    generating resources and electricity storage resources.
25        (14) The General Assembly finds that it is appropriate
26    for the State of Illinois to establish a program to provide

 

 

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1    for incentives for the installation and operation of new
2    renewable energy resources, along with energy storage
3    resources, at the sites of retired and at-risk coal-fueled
4    electric generating facilities in the downstate region of
5    this State, to provide incentives for continued operation,
6    in the near term, of the remaining coal-fueled generating
7    facilities in the downstate region to ensure the
8    availability of sufficient electric capacity and energy
9    resources to meet the demands of residential and business
10    electricity consumers in the downstate region as well as in
11    the State as a whole, while at the same time also providing
12    incentives for the transition to retirement of some
13    additional portion of the coal-fueled electric generating
14    facilities in the downstate region.
 
15    Section 10. The Illinois Power Agency Act is amended by
16changing Sections 1-20 and 1-75 as follows:
 
17    (20 ILCS 3855/1-20)
18    Sec. 1-20. General powers of the Agency.
19    (a) The Agency is authorized to do each of the following:
20        (1) Develop electricity procurement plans to ensure
21    adequate, reliable, affordable, efficient, and
22    environmentally sustainable electric service at the lowest
23    total cost over time, taking into account any benefits of
24    price stability, for electric utilities that on December

 

 

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1    31, 2005 provided electric service to at least 100,000
2    customers in Illinois and for small multi-jurisdictional
3    electric utilities that (A) on December 31, 2005 served
4    less than 100,000 customers in Illinois and (B) request a
5    procurement plan for their Illinois jurisdictional load.
6    Except as provided in paragraph (1.5) of this subsection
7    (a), the electricity procurement plans shall be updated on
8    an annual basis and shall include electricity generated
9    from renewable resources sufficient to achieve the
10    standards specified in this Act. Beginning with the
11    delivery year commencing June 1, 2017, develop procurement
12    plans to include zero emission credits generated from zero
13    emission facilities sufficient to achieve the standards
14    specified in this Act.
15        (1.5) Develop a long-term renewable resources
16    procurement plan in accordance with subsection (c) of
17    Section 1-75 of this Act for renewable energy credits in
18    amounts sufficient to achieve the standards specified in
19    this Act for delivery years commencing June 1, 2017 and for
20    the programs and renewable energy credits specified in
21    Section 1-56 of this Act. Electricity procurement plans for
22    delivery years commencing after May 31, 2017, shall not
23    include procurement of renewable energy resources.
24        (2) Conduct competitive procurement processes to
25    procure the supply resources identified in the electricity
26    procurement plan, pursuant to Section 16-111.5 of the

 

 

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1    Public Utilities Act, and, for the delivery year commencing
2    June 1, 2017, conduct procurement processes to procure zero
3    emission credits from zero emission facilities, under
4    subsection (d-5) of Section 1-75 of this Act.
5        (2.5) Beginning with the procurement for the 2017
6    delivery year, conduct competitive procurement processes
7    and implement programs to procure renewable energy credits
8    identified in the long-term renewable resources
9    procurement plan developed and approved under subsection
10    (c) of Section 1-75 of this Act and Section 16-111.5 of the
11    Public Utilities Act.
12        (2.10) Oversee the procurement by electric utilities
13    that served more than 300,000 customers in this State as of
14    January 1, 2019 of renewable energy credits from new
15    renewable energy resources to be installed, along with
16    energy storage resources, at or adjacent to the sites of
17    electric generating facilities that burned coal as their
18    primary fuel source as of January 1, 2019, in accordance
19    with subsection (c-5) of Section 1-75 of this Act.
20        (3) Develop electric generation and co-generation
21    facilities that use indigenous coal or renewable
22    resources, or both, financed with bonds issued by the
23    Illinois Finance Authority.
24        (4) Supply electricity from the Agency's facilities at
25    cost to one or more of the following: municipal electric
26    systems, governmental aggregators, or rural electric

 

 

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1    cooperatives in Illinois.
2    (b) Except as otherwise limited by this Act, the Agency has
3all of the powers necessary or convenient to carry out the
4purposes and provisions of this Act, including without
5limitation, each of the following:
6        (1) To have a corporate seal, and to alter that seal at
7    pleasure, and to use it by causing it or a facsimile to be
8    affixed or impressed or reproduced in any other manner.
9        (2) To use the services of the Illinois Finance
10    Authority necessary to carry out the Agency's purposes.
11        (3) To negotiate and enter into loan agreements and
12    other agreements with the Illinois Finance Authority.
13        (4) To obtain and employ personnel and hire consultants
14    that are necessary to fulfill the Agency's purposes, and to
15    make expenditures for that purpose within the
16    appropriations for that purpose.
17        (5) To purchase, receive, take by grant, gift, devise,
18    bequest, or otherwise, lease, or otherwise acquire, own,
19    hold, improve, employ, use, and otherwise deal in and with,
20    real or personal property whether tangible or intangible,
21    or any interest therein, within the State.
22        (6) To acquire real or personal property, whether
23    tangible or intangible, including without limitation
24    property rights, interests in property, franchises,
25    obligations, contracts, and debt and equity securities,
26    and to do so by the exercise of the power of eminent domain

 

 

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1    in accordance with Section 1-21; except that any real
2    property acquired by the exercise of the power of eminent
3    domain must be located within the State.
4        (7) To sell, convey, lease, exchange, transfer,
5    abandon, or otherwise dispose of, or mortgage, pledge, or
6    create a security interest in, any of its assets,
7    properties, or any interest therein, wherever situated.
8        (8) To purchase, take, receive, subscribe for, or
9    otherwise acquire, hold, make a tender offer for, vote,
10    employ, sell, lend, lease, exchange, transfer, or
11    otherwise dispose of, mortgage, pledge, or grant a security
12    interest in, use, and otherwise deal in and with, bonds and
13    other obligations, shares, or other securities (or
14    interests therein) issued by others, whether engaged in a
15    similar or different business or activity.
16        (9) To make and execute agreements, contracts, and
17    other instruments necessary or convenient in the exercise
18    of the powers and functions of the Agency under this Act,
19    including contracts with any person, including personal
20    service contracts, or with any local government, State
21    agency, or other entity; and all State agencies and all
22    local governments are authorized to enter into and do all
23    things necessary to perform any such agreement, contract,
24    or other instrument with the Agency. No such agreement,
25    contract, or other instrument shall exceed 40 years.
26        (10) To lend money, invest and reinvest its funds in

 

 

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1    accordance with the Public Funds Investment Act, and take
2    and hold real and personal property as security for the
3    payment of funds loaned or invested.
4        (11) To borrow money at such rate or rates of interest
5    as the Agency may determine, issue its notes, bonds, or
6    other obligations to evidence that indebtedness, and
7    secure any of its obligations by mortgage or pledge of its
8    real or personal property, machinery, equipment,
9    structures, fixtures, inventories, revenues, grants, and
10    other funds as provided or any interest therein, wherever
11    situated.
12        (12) To enter into agreements with the Illinois Finance
13    Authority to issue bonds whether or not the income
14    therefrom is exempt from federal taxation.
15        (13) To procure insurance against any loss in
16    connection with its properties or operations in such amount
17    or amounts and from such insurers, including the federal
18    government, as it may deem necessary or desirable, and to
19    pay any premiums therefor.
20        (14) To negotiate and enter into agreements with
21    trustees or receivers appointed by United States
22    bankruptcy courts or federal district courts or in other
23    proceedings involving adjustment of debts and authorize
24    proceedings involving adjustment of debts and authorize
25    legal counsel for the Agency to appear in any such
26    proceedings.

 

 

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1        (15) To file a petition under Chapter 9 of Title 11 of
2    the United States Bankruptcy Code or take other similar
3    action for the adjustment of its debts.
4        (16) To enter into management agreements for the
5    operation of any of the property or facilities owned by the
6    Agency.
7        (17) To enter into an agreement to transfer and to
8    transfer any land, facilities, fixtures, or equipment of
9    the Agency to one or more municipal electric systems,
10    governmental aggregators, or rural electric agencies or
11    cooperatives, for such consideration and upon such terms as
12    the Agency may determine to be in the best interest of the
13    citizens of Illinois.
14        (18) To enter upon any lands and within any building
15    whenever in its judgment it may be necessary for the
16    purpose of making surveys and examinations to accomplish
17    any purpose authorized by this Act.
18        (19) To maintain an office or offices at such place or
19    places in the State as it may determine.
20        (20) To request information, and to make any inquiry,
21    investigation, survey, or study that the Agency may deem
22    necessary to enable it effectively to carry out the
23    provisions of this Act.
24        (21) To accept and expend appropriations.
25        (22) To engage in any activity or operation that is
26    incidental to and in furtherance of efficient operation to

 

 

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1    accomplish the Agency's purposes, including hiring
2    employees that the Director deems essential for the
3    operations of the Agency.
4        (23) To adopt, revise, amend, and repeal rules with
5    respect to its operations, properties, and facilities as
6    may be necessary or convenient to carry out the purposes of
7    this Act, subject to the provisions of the Illinois
8    Administrative Procedure Act and Sections 1-22 and 1-35 of
9    this Act.
10        (24) To establish and collect charges and fees as
11    described in this Act.
12        (25) To conduct competitive gasification feedstock
13    procurement processes to procure the feedstocks for the
14    clean coal SNG brownfield facility in accordance with the
15    requirements of Section 1-78 of this Act.
16        (26) To review, revise, and approve sourcing
17    agreements and mediate and resolve disputes between gas
18    utilities and the clean coal SNG brownfield facility
19    pursuant to subsection (h-1) of Section 9-220 of the Public
20    Utilities Act.
21        (27) To request, review and accept proposals, execute
22    contracts, purchase renewable energy credits and otherwise
23    dedicate funds from the Illinois Power Agency Renewable
24    Energy Resources Fund to create and carry out the
25    objectives of the Illinois Solar for All program in
26    accordance with Section 1-56 of this Act.

 

 

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1(Source: P.A. 99-906, eff. 6-1-17.)
 
2    (20 ILCS 3855/1-75)
3    Sec. 1-75. Planning and Procurement Bureau. The Planning
4and Procurement Bureau has the following duties and
5responsibilities:
6    (a) The Planning and Procurement Bureau shall each year,
7beginning in 2008, develop procurement plans and conduct
8competitive procurement processes in accordance with the
9requirements of Section 16-111.5 of the Public Utilities Act
10for the eligible retail customers of electric utilities that on
11December 31, 2005 provided electric service to at least 100,000
12customers in Illinois. Beginning with the delivery year
13commencing on June 1, 2017, the Planning and Procurement Bureau
14shall develop plans and processes for the procurement of zero
15emission credits from zero emission facilities in accordance
16with the requirements of subsection (d-5) of this Section. The
17Planning and Procurement Bureau shall also develop procurement
18plans and conduct competitive procurement processes in
19accordance with the requirements of Section 16-111.5 of the
20Public Utilities Act for the eligible retail customers of small
21multi-jurisdictional electric utilities that (i) on December
2231, 2005 served less than 100,000 customers in Illinois and
23(ii) request a procurement plan for their Illinois
24jurisdictional load. This Section shall not apply to a small
25multi-jurisdictional utility until such time as a small

 

 

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1multi-jurisdictional utility requests the Agency to prepare a
2procurement plan for their Illinois jurisdictional load. For
3the purposes of this Section, the term "eligible retail
4customers" has the same definition as found in Section
516-111.5(a) of the Public Utilities Act.
6    Beginning with the plan or plans to be implemented in the
72017 delivery year, the Agency shall no longer include the
8procurement of renewable energy resources in the annual
9procurement plans required by this subsection (a), except as
10provided in subsection (q) of Section 16-111.5 of the Public
11Utilities Act, and shall instead develop a long-term renewable
12resources procurement plan in accordance with subsection (c) of
13this Section and Section 16-111.5 of the Public Utilities Act.
14    In accordance with subsection (c-5) of this Section, the
15Planning and Procurement Bureau shall oversee the procurement
16by electric utilities that served more than 300,000 retail
17customers in this State as of January 1, 2019 of renewable
18energy credits from new renewable energy resources to be
19installed, along with energy storage resources, at or adjacent
20to the sites of electric generating facilities that, as of
21January 1, 2019, burned coal as their primary fuel source.
22        (1) The Agency shall each year, beginning in 2008, as
23    needed, issue a request for qualifications for experts or
24    expert consulting firms to develop the procurement plans in
25    accordance with Section 16-111.5 of the Public Utilities
26    Act. In order to qualify an expert or expert consulting

 

 

HB5663- 19 -LRB101 19090 SPS 68550 b

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

 

 

HB5663- 20 -LRB101 19090 SPS 68550 b

1            (A) direct previous experience administering a
2        large-scale competitive procurement process;
3            (B) an advanced degree in economics, mathematics,
4        engineering, or a related area of study;
5            (C) 10 years of experience in the electricity
6        sector, including risk management experience;
7            (D) expertise in wholesale electricity market
8        rules, including those established by the Federal
9        Energy Regulatory Commission and regional transmission
10        organizations;
11            (E) expertise in credit and contract protocols;
12            (F) adequate resources to perform and fulfill the
13        required functions and responsibilities; and
14            (G) the absence of a conflict of interest and
15        inappropriate bias for or against potential bidders or
16        the affected electric utilities.
17        (3) The Agency shall provide affected utilities and
18    other interested parties with the lists of qualified
19    experts or expert consulting firms identified through the
20    request for qualifications processes that are under
21    consideration to develop the procurement plans and to serve
22    as the procurement administrator. The Agency shall also
23    provide each qualified expert's or expert consulting
24    firm's response to the request for qualifications. All
25    information provided under this subparagraph shall also be
26    provided to the Commission. The Agency may provide by rule

 

 

HB5663- 21 -LRB101 19090 SPS 68550 b

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

 

 

HB5663- 22 -LRB101 19090 SPS 68550 b

1    years to those selected.
2        (6) The Agency shall select an expert or expert
3    consulting firm, with approval of the Commission, to serve
4    as procurement administrator based on the proposals
5    submitted. If the Commission rejects, within 5 days, the
6    Agency's selection, the Agency shall submit another
7    recommendation within 3 days based on the proposals
8    submitted. The Agency shall award a 5-year contract to the
9    expert or expert consulting firm so selected with
10    Commission approval.
11    (b) The experts or expert consulting firms retained by the
12Agency shall, as appropriate, prepare procurement plans, and
13conduct a competitive procurement process as prescribed in
14Section 16-111.5 of the Public Utilities Act, to ensure
15adequate, reliable, affordable, efficient, and environmentally
16sustainable electric service at the lowest total cost over
17time, taking into account any benefits of price stability, for
18eligible retail customers of electric utilities that on
19December 31, 2005 provided electric service to at least 100,000
20customers in the State of Illinois, and for eligible Illinois
21retail customers of small multi-jurisdictional electric
22utilities that (i) on December 31, 2005 served less than
23100,000 customers in Illinois and (ii) request a procurement
24plan for their Illinois jurisdictional load.
25    (c) Renewable portfolio standard.
26        (1)(A) The Agency shall develop a long-term renewable

 

 

HB5663- 23 -LRB101 19090 SPS 68550 b

1    resources procurement plan that shall include procurement
2    programs and competitive procurement events necessary to
3    meet the goals set forth in this subsection (c). The
4    initial long-term renewable resources procurement plan
5    shall be released for comment no later than 160 days after
6    June 1, 2017 (the effective date of Public Act 99-906). The
7    Agency shall review, and may revise on an expedited basis,
8    the long-term renewable resources procurement plan at
9    least every 2 years, which shall be conducted in
10    conjunction with the procurement plan under Section
11    16-111.5 of the Public Utilities Act to the extent
12    practicable to minimize administrative expense. The
13    long-term renewable resources procurement plans shall be
14    subject to review and approval by the Commission under
15    Section 16-111.5 of the Public Utilities Act.
16        (B) Subject to subparagraph (F) of this paragraph (1),
17    the long-term renewable resources procurement plan shall
18    include the goals for procurement of renewable energy
19    credits to meet at least the following overall percentages:
20    13% by the 2017 delivery year; increasing by at least 1.5%
21    each delivery year thereafter to at least 25% by the 2025
22    delivery year; and continuing at no less than 25% for each
23    delivery year thereafter. In the event of a conflict
24    between these goals and the new wind and new photovoltaic
25    procurement requirements described in items (i) through
26    (iii) of subparagraph (C) of this paragraph (1), the

 

 

HB5663- 24 -LRB101 19090 SPS 68550 b

1    long-term plan shall prioritize compliance with the new
2    wind and new photovoltaic procurement requirements
3    described in items (i) through (iii) of subparagraph (C) of
4    this paragraph (1) over the annual percentage targets
5    described in this subparagraph (B).
6        For the delivery year beginning June 1, 2017, the
7    procurement plan shall include cost-effective renewable
8    energy resources equal to at least 13% of each utility's
9    load for eligible retail customers and 13% of the
10    applicable portion of each utility's load for retail
11    customers who are not eligible retail customers, which
12    applicable portion shall equal 50% of the utility's load
13    for retail customers who are not eligible retail customers
14    on February 28, 2017.
15        For the delivery year beginning June 1, 2018, the
16    procurement plan shall include cost-effective renewable
17    energy resources equal to at least 14.5% of each utility's
18    load for eligible retail customers and 14.5% of the
19    applicable portion of each utility's load for retail
20    customers who are not eligible retail customers, which
21    applicable portion shall equal 75% of the utility's load
22    for retail customers who are not eligible retail customers
23    on February 28, 2017.
24        For the delivery year beginning June 1, 2019, and for
25    each year thereafter, the procurement plans shall include
26    cost-effective renewable energy resources equal to a

 

 

HB5663- 25 -LRB101 19090 SPS 68550 b

1    minimum percentage of each utility's load for all retail
2    customers as follows: 16% by June 1, 2019; increasing by
3    1.5% each year thereafter to 25% by June 1, 2025; and 25%
4    by June 1, 2026 and each year thereafter.
5        For each delivery year, the Agency shall first
6    recognize each utility's obligations for that delivery
7    year under existing contracts. Any renewable energy
8    credits under existing contracts, including renewable
9    energy credits as part of renewable energy resources, shall
10    be used to meet the goals set forth in this subsection (c)
11    for the delivery year.
12        (C) Of the renewable energy credits procured under this
13    subsection (c), at least 75% shall come from wind and
14    photovoltaic projects. The long-term renewable resources
15    procurement plan described in subparagraph (A) of this
16    paragraph (1) shall include the procurement of renewable
17    energy credits in amounts equal to at least the following:
18            (i) By the end of the 2020 delivery year:
19                At least 2,000,000 renewable energy credits
20            for each delivery year shall come from new wind
21            projects; and
22                At least 2,000,000 renewable energy credits
23            for each delivery year shall come from new
24            photovoltaic projects; of that amount, to the
25            extent possible, the Agency shall procure: at
26            least 50% from solar photovoltaic projects using

 

 

HB5663- 26 -LRB101 19090 SPS 68550 b

1            the program outlined in subparagraph (K) of this
2            paragraph (1) from distributed renewable energy
3            generation devices or community renewable
4            generation projects; at least 40% from
5            utility-scale solar projects; at least 2% from
6            brownfield site photovoltaic projects that are not
7            community renewable generation projects; and the
8            remainder shall be determined through the
9            long-term planning process described in
10            subparagraph (A) of this paragraph (1).
11            (ii) By the end of the 2025 delivery year:
12                At least 3,000,000 renewable energy credits
13            for each delivery year shall come from new wind
14            projects; and
15                At least 3,000,000 renewable energy credits
16            for each delivery year shall come from new
17            photovoltaic projects; of that amount, to the
18            extent possible, the Agency shall procure: at
19            least 50% from solar photovoltaic projects using
20            the program outlined in subparagraph (K) of this
21            paragraph (1) from distributed renewable energy
22            devices or community renewable generation
23            projects; at least 40% from utility-scale solar
24            projects; at least 2% from brownfield site
25            photovoltaic projects that are not community
26            renewable generation projects; and the remainder

 

 

HB5663- 27 -LRB101 19090 SPS 68550 b

1            shall be determined through the long-term planning
2            process described in subparagraph (A) of this
3            paragraph (1).
4            (iii) By the end of the 2030 delivery year:
5                At least 4,000,000 renewable energy credits
6            for each delivery year shall come from new wind
7            projects; and
8                At least 4,000,000 renewable energy credits
9            for each delivery year shall come from new
10            photovoltaic projects; of that amount, to the
11            extent possible, the Agency shall procure: at
12            least 50% from solar photovoltaic projects using
13            the program outlined in subparagraph (K) of this
14            paragraph (1) from distributed renewable energy
15            devices or community renewable generation
16            projects; at least 40% from utility-scale solar
17            projects; at least 2% from brownfield site
18            photovoltaic projects that are not community
19            renewable generation projects; and the remainder
20            shall be determined through the long-term planning
21            process described in subparagraph (A) of this
22            paragraph (1).
23            For purposes of this Section:
24                "New wind projects" means wind renewable
25            energy facilities that are energized after June 1,
26            2017 for the delivery year commencing June 1, 2017

 

 

HB5663- 28 -LRB101 19090 SPS 68550 b

1            or within 3 years after the date the Commission
2            approves contracts for subsequent delivery years.
3                "New photovoltaic projects" means photovoltaic
4            renewable energy facilities that are energized
5            after June 1, 2017. Photovoltaic projects
6            developed under Section 1-56 of this Act shall not
7            apply towards the new photovoltaic project
8            requirements in this subparagraph (C).
9        (D) Renewable energy credits shall be cost effective.
10    For purposes of this subsection (c), "cost effective" means
11    that the costs of procuring renewable energy resources do
12    not cause the limit stated in subparagraph (E) of this
13    paragraph (1) to be exceeded and, for renewable energy
14    credits procured through a competitive procurement event,
15    do not exceed benchmarks based on market prices for like
16    products in the region. For purposes of this subsection
17    (c), "like products" means contracts for renewable energy
18    credits from the same or substantially similar technology,
19    same or substantially similar vintage (new or existing),
20    the same or substantially similar quantity, and the same or
21    substantially similar contract length and structure.
22    Benchmarks shall be developed by the procurement
23    administrator, in consultation with the Commission staff,
24    Agency staff, and the procurement monitor and shall be
25    subject to Commission review and approval. If price
26    benchmarks for like products in the region are not

 

 

HB5663- 29 -LRB101 19090 SPS 68550 b

1    available, the procurement administrator shall establish
2    price benchmarks based on publicly available data on
3    regional technology costs and expected current and future
4    regional energy prices. The benchmarks in this Section
5    shall not be used to curtail or otherwise reduce
6    contractual obligations entered into by or through the
7    Agency prior to June 1, 2017 (the effective date of Public
8    Act 99-906).
9        (E) For purposes of this subsection (c), the required
10    procurement of cost-effective renewable energy resources
11    for a particular year commencing prior to June 1, 2017
12    shall be measured as a percentage of the actual amount of
13    electricity (megawatt-hours) supplied by the electric
14    utility to eligible retail customers in the delivery year
15    ending immediately prior to the procurement, and, for
16    delivery years commencing on and after June 1, 2017, the
17    required procurement of cost-effective renewable energy
18    resources for a particular year shall be measured as a
19    percentage of the actual amount of electricity
20    (megawatt-hours) delivered by the electric utility in the
21    delivery year ending immediately prior to the procurement,
22    to all retail customers in its service territory. For
23    purposes of this subsection (c), the amount paid per
24    kilowatthour means the total amount paid for electric
25    service expressed on a per kilowatthour basis. For purposes
26    of this subsection (c), the total amount paid for electric

 

 

HB5663- 30 -LRB101 19090 SPS 68550 b

1    service includes without limitation amounts paid for
2    supply, transmission, distribution, surcharges, and add-on
3    taxes.
4        Notwithstanding the requirements of this subsection
5    (c), the total of renewable energy resources procured under
6    the procurement plan for any single year shall be subject
7    to the limitations of this subparagraph (E). Such
8    procurement shall be reduced for all retail customers based
9    on the amount necessary to limit the annual estimated
10    average net increase due to the costs of these resources
11    included in the amounts paid by eligible retail customers
12    in connection with electric service to no more than the
13    greater of 2.015% of the amount paid per kilowatthour by
14    those customers during the year ending May 31, 2007 or the
15    incremental amount per kilowatthour paid for these
16    resources in 2011. To arrive at a maximum dollar amount of
17    renewable energy resources to be procured for the
18    particular delivery year, the resulting per kilowatthour
19    amount shall be applied to the actual amount of
20    kilowatthours of electricity delivered, or applicable
21    portion of such amount as specified in paragraph (1) of
22    this subsection (c), as applicable, by the electric utility
23    in the delivery year immediately prior to the procurement
24    to all retail customers in its service territory. The
25    calculations required by this subparagraph (E) shall be
26    made only once for each delivery year at the time that the

 

 

HB5663- 31 -LRB101 19090 SPS 68550 b

1    renewable energy resources are procured. Once the
2    determination as to the amount of renewable energy
3    resources to procure is made based on the calculations set
4    forth in this subparagraph (E) and the contracts procuring
5    those amounts are executed, no subsequent rate impact
6    determinations shall be made and no adjustments to those
7    contract amounts shall be allowed. All costs incurred under
8    such contracts shall be fully recoverable by the electric
9    utility as provided in this Section.
10        (F) If the limitation on the amount of renewable energy
11    resources procured in subparagraph (E) of this paragraph
12    (1) prevents the Agency from meeting all of the goals in
13    this subsection (c), the Agency's long-term plan shall
14    prioritize compliance with the requirements of this
15    subsection (c) regarding renewable energy credits in the
16    following order:
17            (i) renewable energy credits under existing
18        contractual obligations;
19            (i-5) funding for the Illinois Solar for All
20        Program, as described in subparagraph (O) of this
21        paragraph (1);
22            (ii) renewable energy credits necessary to comply
23        with the new wind and new photovoltaic procurement
24        requirements described in items (i) through (iii) of
25        subparagraph (C) of this paragraph (1); and
26            (iii) renewable energy credits necessary to meet

 

 

HB5663- 32 -LRB101 19090 SPS 68550 b

1        the remaining requirements of this subsection (c).
2        (G) The following provisions shall apply to the
3    Agency's procurement of renewable energy credits under
4    this subsection (c):
5            (i) Notwithstanding whether a long-term renewable
6        resources procurement plan has been approved, the
7        Agency shall conduct an initial forward procurement
8        for renewable energy credits from new utility-scale
9        wind projects within 160 days after June 1, 2017 (the
10        effective date of Public Act 99-906). For the purposes
11        of this initial forward procurement, the Agency shall
12        solicit 15-year contracts for delivery of 1,000,000
13        renewable energy credits delivered annually from new
14        utility-scale wind projects to begin delivery on June
15        1, 2019, if available, but not later than June 1, 2021,
16        unless the project has delays in the establishment of
17        an operating interconnection with the applicable
18        transmission or distribution system as a result of the
19        actions or inactions of the transmission or
20        distribution provider, or other causes for force
21        majeure as outlined in the procurement contract, in
22        which case, not later than June 1, 2022. Payments to
23        suppliers of renewable energy credits shall commence
24        upon delivery. Renewable energy credits procured under
25        this initial procurement shall be included in the
26        Agency's long-term plan and shall apply to all

 

 

HB5663- 33 -LRB101 19090 SPS 68550 b

1        renewable energy goals in this subsection (c).
2            (ii) Notwithstanding whether a long-term renewable
3        resources procurement plan has been approved, the
4        Agency shall conduct an initial forward procurement
5        for renewable energy credits from new utility-scale
6        solar projects and brownfield site photovoltaic
7        projects within one year after June 1, 2017 (the
8        effective date of Public Act 99-906). For the purposes
9        of this initial forward procurement, the Agency shall
10        solicit 15-year contracts for delivery of 1,000,000
11        renewable energy credits delivered annually from new
12        utility-scale solar projects and brownfield site
13        photovoltaic projects to begin delivery on June 1,
14        2019, if available, but not later than June 1, 2021,
15        unless the project has delays in the establishment of
16        an operating interconnection with the applicable
17        transmission or distribution system as a result of the
18        actions or inactions of the transmission or
19        distribution provider, or other causes for force
20        majeure as outlined in the procurement contract, in
21        which case, not later than June 1, 2022. The Agency may
22        structure this initial procurement in one or more
23        discrete procurement events. Payments to suppliers of
24        renewable energy credits shall commence upon delivery.
25        Renewable energy credits procured under this initial
26        procurement shall be included in the Agency's

 

 

HB5663- 34 -LRB101 19090 SPS 68550 b

1        long-term plan and shall apply to all renewable energy
2        goals in this subsection (c).
3            (iii) Subsequent forward procurements for
4        utility-scale wind projects shall solicit at least
5        1,000,000 renewable energy credits delivered annually
6        per procurement event and shall be planned, scheduled,
7        and designed such that the cumulative amount of
8        renewable energy credits delivered from all new wind
9        projects in each delivery year shall not exceed the
10        Agency's projection of the cumulative amount of
11        renewable energy credits that will be delivered from
12        all new photovoltaic projects, including utility-scale
13        and distributed photovoltaic devices, in the same
14        delivery year at the time scheduled for wind contract
15        delivery.
16            (iv) If, at any time after the time set for
17        delivery of renewable energy credits pursuant to the
18        initial procurements in items (i) and (ii) of this
19        subparagraph (G), the cumulative amount of renewable
20        energy credits projected to be delivered from all new
21        wind projects in a given delivery year exceeds the
22        cumulative amount of renewable energy credits
23        projected to be delivered from all new photovoltaic
24        projects in that delivery year by 200,000 or more
25        renewable energy credits, then the Agency shall within
26        60 days adjust the procurement programs in the

 

 

HB5663- 35 -LRB101 19090 SPS 68550 b

1        long-term renewable resources procurement plan to
2        ensure that the projected cumulative amount of
3        renewable energy credits to be delivered from all new
4        wind projects does not exceed the projected cumulative
5        amount of renewable energy credits to be delivered from
6        all new photovoltaic projects by 200,000 or more
7        renewable energy credits, provided that nothing in
8        this Section shall preclude the projected cumulative
9        amount of renewable energy credits to be delivered from
10        all new photovoltaic projects from exceeding the
11        projected cumulative amount of renewable energy
12        credits to be delivered from all new wind projects in
13        each delivery year and provided further that nothing in
14        this item (iv) shall require the curtailment of an
15        executed contract. The Agency shall update, on a
16        quarterly basis, its projection of the renewable
17        energy credits to be delivered from all projects in
18        each delivery year. Notwithstanding anything to the
19        contrary, the Agency may adjust the timing of
20        procurement events conducted under this subparagraph
21        (G). The long-term renewable resources procurement
22        plan shall set forth the process by which the
23        adjustments may be made.
24            (v) All procurements under this subparagraph (G)
25        shall comply with the geographic requirements in
26        subparagraph (I) of this paragraph (1) and shall follow

 

 

HB5663- 36 -LRB101 19090 SPS 68550 b

1        the procurement processes and procedures described in
2        this Section and Section 16-111.5 of the Public
3        Utilities Act to the extent practicable, and these
4        processes and procedures may be expedited to
5        accommodate the schedule established by this
6        subparagraph (G).
7        (H) The procurement of renewable energy resources for a
8    given delivery year shall be reduced as described in this
9    subparagraph (H) if an alternative retail electric
10    supplier meets the requirements described in this
11    subparagraph (H).
12            (i) Within 45 days after June 1, 2017 (the
13        effective date of Public Act 99-906), an alternative
14        retail electric supplier or its successor shall submit
15        an informational filing to the Illinois Commerce
16        Commission certifying that, as of December 31, 2015,
17        the alternative retail electric supplier owned one or
18        more electric generating facilities that generates
19        renewable energy resources as defined in Section 1-10
20        of this Act, provided that such facilities are not
21        powered by wind or photovoltaics, and the facilities
22        generate one renewable energy credit for each
23        megawatthour of energy produced from the facility.
24            The informational filing shall identify each
25        facility that was eligible to satisfy the alternative
26        retail electric supplier's obligations under Section

 

 

HB5663- 37 -LRB101 19090 SPS 68550 b

1        16-115D of the Public Utilities Act as described in
2        this item (i).
3            (ii) For a given delivery year, the alternative
4        retail electric supplier may elect to supply its retail
5        customers with renewable energy credits from the
6        facility or facilities described in item (i) of this
7        subparagraph (H) that continue to be owned by the
8        alternative retail electric supplier.
9            (iii) The alternative retail electric supplier
10        shall notify the Agency and the applicable utility, no
11        later than February 28 of the year preceding the
12        applicable delivery year or 15 days after June 1, 2017
13        (the effective date of Public Act 99-906), whichever is
14        later, of its election under item (ii) of this
15        subparagraph (H) to supply renewable energy credits to
16        retail customers of the utility. Such election shall
17        identify the amount of renewable energy credits to be
18        supplied by the alternative retail electric supplier
19        to the utility's retail customers and the source of the
20        renewable energy credits identified in the
21        informational filing as described in item (i) of this
22        subparagraph (H), subject to the following
23        limitations:
24                For the delivery year beginning June 1, 2018,
25            the maximum amount of renewable energy credits to
26            be supplied by an alternative retail electric

 

 

HB5663- 38 -LRB101 19090 SPS 68550 b

1            supplier under this subparagraph (H) shall be 68%
2            multiplied by 25% multiplied by 14.5% multiplied
3            by the amount of metered electricity
4            (megawatt-hours) delivered by the alternative
5            retail electric supplier to Illinois retail
6            customers during the delivery year ending May 31,
7            2016.
8                For delivery years beginning June 1, 2019 and
9            each year thereafter, the maximum amount of
10            renewable energy credits to be supplied by an
11            alternative retail electric supplier under this
12            subparagraph (H) shall be 68% multiplied by 50%
13            multiplied by 16% multiplied by the amount of
14            metered electricity (megawatt-hours) delivered by
15            the alternative retail electric supplier to
16            Illinois retail customers during the delivery year
17            ending May 31, 2016, provided that the 16% value
18            shall increase by 1.5% each delivery year
19            thereafter to 25% by the delivery year beginning
20            June 1, 2025, and thereafter the 25% value shall
21            apply to each delivery year.
22            For each delivery year, the total amount of
23        renewable energy credits supplied by all alternative
24        retail electric suppliers under this subparagraph (H)
25        shall not exceed 9% of the Illinois target renewable
26        energy credit quantity. The Illinois target renewable

 

 

HB5663- 39 -LRB101 19090 SPS 68550 b

1        energy credit quantity for the delivery year beginning
2        June 1, 2018 is 14.5% multiplied by the total amount of
3        metered electricity (megawatt-hours) delivered in the
4        delivery year immediately preceding that delivery
5        year, provided that the 14.5% shall increase by 1.5%
6        each delivery year thereafter to 25% by the delivery
7        year beginning June 1, 2025, and thereafter the 25%
8        value shall apply to each delivery year.
9            If the requirements set forth in items (i) through
10        (iii) of this subparagraph (H) are met, the charges
11        that would otherwise be applicable to the retail
12        customers of the alternative retail electric supplier
13        under paragraph (6) of this subsection (c) for the
14        applicable delivery year shall be reduced by the ratio
15        of the quantity of renewable energy credits supplied by
16        the alternative retail electric supplier compared to
17        that supplier's target renewable energy credit
18        quantity. The supplier's target renewable energy
19        credit quantity for the delivery year beginning June 1,
20        2018 is 14.5% multiplied by the total amount of metered
21        electricity (megawatt-hours) delivered by the
22        alternative retail supplier in that delivery year,
23        provided that the 14.5% shall increase by 1.5% each
24        delivery year thereafter to 25% by the delivery year
25        beginning June 1, 2025, and thereafter the 25% value
26        shall apply to each delivery year.

 

 

HB5663- 40 -LRB101 19090 SPS 68550 b

1            On or before April 1 of each year, the Agency shall
2        annually publish a report on its website that
3        identifies the aggregate amount of renewable energy
4        credits supplied by alternative retail electric
5        suppliers under this subparagraph (H).
6        (I) The Agency shall design its long-term renewable
7    energy procurement plan to maximize the State's interest in
8    the health, safety, and welfare of its residents, including
9    but not limited to minimizing sulfur dioxide, nitrogen
10    oxide, particulate matter and other pollution that
11    adversely affects public health in this State, increasing
12    fuel and resource diversity in this State, enhancing the
13    reliability and resiliency of the electricity distribution
14    system in this State, meeting goals to limit carbon dioxide
15    emissions under federal or State law, and contributing to a
16    cleaner and healthier environment for the citizens of this
17    State. In order to further these legislative purposes,
18    renewable energy credits shall be eligible to be counted
19    toward the renewable energy requirements of this
20    subsection (c) if they are generated from facilities
21    located in this State. The Agency may qualify renewable
22    energy credits from facilities located in states adjacent
23    to Illinois if the generator demonstrates and the Agency
24    determines that the operation of such facility or
25    facilities will help promote the State's interest in the
26    health, safety, and welfare of its residents based on the

 

 

HB5663- 41 -LRB101 19090 SPS 68550 b

1    public interest criteria described above. To ensure that
2    the public interest criteria are applied to the procurement
3    and given full effect, the Agency's long-term procurement
4    plan shall describe in detail how each public interest
5    factor shall be considered and weighted for facilities
6    located in states adjacent to Illinois.
7        (J) In order to promote the competitive development of
8    renewable energy resources in furtherance of the State's
9    interest in the health, safety, and welfare of its
10    residents, renewable energy credits shall not be eligible
11    to be counted toward the renewable energy requirements of
12    this subsection (c) if they are sourced from a generating
13    unit whose costs were being recovered through rates
14    regulated by this State or any other state or states on or
15    after January 1, 2017. Each contract executed to purchase
16    renewable energy credits under this subsection (c) shall
17    provide for the contract's termination if the costs of the
18    generating unit supplying the renewable energy credits
19    subsequently begin to be recovered through rates regulated
20    by this State or any other state or states; and each
21    contract shall further provide that, in that event, the
22    supplier of the credits must return 110% of all payments
23    received under the contract. Amounts returned under the
24    requirements of this subparagraph (J) shall be retained by
25    the utility and all of these amounts shall be used for the
26    procurement of additional renewable energy credits from

 

 

HB5663- 42 -LRB101 19090 SPS 68550 b

1    new wind or new photovoltaic resources as defined in this
2    subsection (c). The long-term plan shall provide that these
3    renewable energy credits shall be procured in the next
4    procurement event.
5        Notwithstanding the limitations of this subparagraph
6    (J), renewable energy credits sourced from generating
7    units that are constructed, purchased, owned, or leased by
8    an electric utility as part of an approved project,
9    program, or pilot under Section 1-56 of this Act shall be
10    eligible to be counted toward the renewable energy
11    requirements of this subsection (c), regardless of how the
12    costs of these units are recovered.
13        (K) The long-term renewable resources procurement plan
14    developed by the Agency in accordance with subparagraph (A)
15    of this paragraph (1) shall include an Adjustable Block
16    program for the procurement of renewable energy credits
17    from new photovoltaic projects that are distributed
18    renewable energy generation devices or new photovoltaic
19    community renewable generation projects. The Adjustable
20    Block program shall be designed to provide a transparent
21    schedule of prices and quantities to enable the
22    photovoltaic market to scale up and for renewable energy
23    credit prices to adjust at a predictable rate over time.
24    The prices set by the Adjustable Block program can be
25    reflected as a set value or as the product of a formula.
26        The Adjustable Block program shall include for each

 

 

HB5663- 43 -LRB101 19090 SPS 68550 b

1    category of eligible projects: a schedule of standard block
2    purchase prices to be offered; a series of steps, with
3    associated nameplate capacity and purchase prices that
4    adjust from step to step; and automatic opening of the next
5    step as soon as the nameplate capacity and available
6    purchase prices for an open step are fully committed or
7    reserved. Only projects energized on or after June 1, 2017
8    shall be eligible for the Adjustable Block program. For
9    each block group the Agency shall determine the number of
10    blocks, the amount of generation capacity in each block,
11    and the purchase price for each block, provided that the
12    purchase price provided and the total amount of generation
13    in all blocks for all block groups shall be sufficient to
14    meet the goals in this subsection (c). The Agency may
15    periodically review its prior decisions establishing the
16    number of blocks, the amount of generation capacity in each
17    block, and the purchase price for each block, and may
18    propose, on an expedited basis, changes to these previously
19    set values, including but not limited to redistributing
20    these amounts and the available funds as necessary and
21    appropriate, subject to Commission approval as part of the
22    periodic plan revision process described in Section
23    16-111.5 of the Public Utilities Act. The Agency may define
24    different block sizes, purchase prices, or other distinct
25    terms and conditions for projects located in different
26    utility service territories if the Agency deems it

 

 

HB5663- 44 -LRB101 19090 SPS 68550 b

1    necessary to meet the goals in this subsection (c).
2        The Adjustable Block program shall include at least the
3    following block groups in at least the following amounts,
4    which may be adjusted upon review by the Agency and
5    approval by the Commission as described in this
6    subparagraph (K):
7            (i) At least 25% from distributed renewable energy
8        generation devices with a nameplate capacity of no more
9        than 10 kilowatts.
10            (ii) At least 25% from distributed renewable
11        energy generation devices with a nameplate capacity of
12        more than 10 kilowatts and no more than 2,000
13        kilowatts. The Agency may create sub-categories within
14        this category to account for the differences between
15        projects for small commercial customers, large
16        commercial customers, and public or non-profit
17        customers.
18            (iii) At least 25% from photovoltaic community
19        renewable generation projects.
20            (iv) The remaining 25% shall be allocated as
21        specified by the Agency in the long-term renewable
22        resources procurement plan.
23        The Adjustable Block program shall be designed to
24    ensure that renewable energy credits are procured from
25    photovoltaic distributed renewable energy generation
26    devices and new photovoltaic community renewable energy

 

 

HB5663- 45 -LRB101 19090 SPS 68550 b

1    generation projects in diverse locations and are not
2    concentrated in a few geographic areas.
3        (L) The procurement of photovoltaic renewable energy
4    credits under items (i) through (iv) of subparagraph (K) of
5    this paragraph (1) shall be subject to the following
6    contract and payment terms:
7            (i) The Agency shall procure contracts of at least
8        15 years in length.
9            (ii) For those renewable energy credits that
10        qualify and are procured under item (i) of subparagraph
11        (K) of this paragraph (1), the renewable energy credit
12        purchase price shall be paid in full by the contracting
13        utilities at the time that the facility producing the
14        renewable energy credits is interconnected at the
15        distribution system level of the utility and
16        energized. The electric utility shall receive and
17        retire all renewable energy credits generated by the
18        project for the first 15 years of operation.
19            (iii) For those renewable energy credits that
20        qualify and are procured under item (ii) and (iii) of
21        subparagraph (K) of this paragraph (1) and any
22        additional categories of distributed generation
23        included in the long-term renewable resources
24        procurement plan and approved by the Commission, 20
25        percent of the renewable energy credit purchase price
26        shall be paid by the contracting utilities at the time

 

 

HB5663- 46 -LRB101 19090 SPS 68550 b

1        that the facility producing the renewable energy
2        credits is interconnected at the distribution system
3        level of the utility and energized. The remaining
4        portion shall be paid ratably over the subsequent
5        4-year period. The electric utility shall receive and
6        retire all renewable energy credits generated by the
7        project for the first 15 years of operation.
8            (iv) Each contract shall include provisions to
9        ensure the delivery of the renewable energy credits for
10        the full term of the contract.
11            (v) The utility shall be the counterparty to the
12        contracts executed under this subparagraph (L) that
13        are approved by the Commission under the process
14        described in Section 16-111.5 of the Public Utilities
15        Act. No contract shall be executed for an amount that
16        is less than one renewable energy credit per year.
17            (vi) If, at any time, approved applications for the
18        Adjustable Block program exceed funds collected by the
19        electric utility or would cause the Agency to exceed
20        the limitation described in subparagraph (E) of this
21        paragraph (1) on the amount of renewable energy
22        resources that may be procured, then the Agency shall
23        consider future uncommitted funds to be reserved for
24        these contracts on a first-come, first-served basis,
25        with the delivery of renewable energy credits required
26        beginning at the time that the reserved funds become

 

 

HB5663- 47 -LRB101 19090 SPS 68550 b

1        available.
2            (vii) Nothing in this Section shall require the
3        utility to advance any payment or pay any amounts that
4        exceed the actual amount of revenues collected by the
5        utility under paragraph (6) of this subsection (c) and
6        subsection (k) of Section 16-108 of the Public
7        Utilities Act, and contracts executed under this
8        Section shall expressly incorporate this limitation.
9        (M) The Agency shall be authorized to retain one or
10    more experts or expert consulting firms to develop,
11    administer, implement, operate, and evaluate the
12    Adjustable Block program described in subparagraph (K) of
13    this paragraph (1), and the Agency shall retain the
14    consultant or consultants in the same manner, to the extent
15    practicable, as the Agency retains others to administer
16    provisions of this Act, including, but not limited to, the
17    procurement administrator. The selection of experts and
18    expert consulting firms and the procurement process
19    described in this subparagraph (M) are exempt from the
20    requirements of Section 20-10 of the Illinois Procurement
21    Code, under Section 20-10 of that Code. The Agency shall
22    strive to minimize administrative expenses in the
23    implementation of the Adjustable Block program.
24        The Agency and its consultant or consultants shall
25    monitor block activity, share program activity with
26    stakeholders and conduct regularly scheduled meetings to

 

 

HB5663- 48 -LRB101 19090 SPS 68550 b

1    discuss program activity and market conditions. If
2    necessary, the Agency may make prospective administrative
3    adjustments to the Adjustable Block program design, such as
4    redistributing available funds or making adjustments to
5    purchase prices as necessary to achieve the goals of this
6    subsection (c). Program modifications to any price,
7    capacity block, or other program element that do not
8    deviate from the Commission's approved value by more than
9    25% shall take effect immediately and are not subject to
10    Commission review and approval. Program modifications to
11    any price, capacity block, or other program element that
12    deviate more than 25% from the Commission's approved value
13    must be approved by the Commission as a long-term plan
14    amendment under Section 16-111.5 of the Public Utilities
15    Act. The Agency shall consider stakeholder feedback when
16    making adjustments to the Adjustable Block design and shall
17    notify stakeholders in advance of any planned changes.
18        (N) The long-term renewable resources procurement plan
19    required by this subsection (c) shall include a community
20    renewable generation program. The Agency shall establish
21    the terms, conditions, and program requirements for
22    community renewable generation projects with a goal to
23    expand renewable energy generating facility access to a
24    broader group of energy consumers, to ensure robust
25    participation opportunities for residential and small
26    commercial customers and those who cannot install

 

 

HB5663- 49 -LRB101 19090 SPS 68550 b

1    renewable energy on their own properties. Any plan approved
2    by the Commission shall allow subscriptions to community
3    renewable generation projects to be portable and
4    transferable. For purposes of this subparagraph (N),
5    "portable" means that subscriptions may be retained by the
6    subscriber even if the subscriber relocates or changes its
7    address within the same utility service territory; and
8    "transferable" means that a subscriber may assign or sell
9    subscriptions to another person within the same utility
10    service territory.
11        Electric utilities shall provide a monetary credit to a
12    subscriber's subsequent bill for service for the
13    proportional output of a community renewable generation
14    project attributable to that subscriber as specified in
15    Section 16-107.5 of the Public Utilities Act.
16        The Agency shall purchase renewable energy credits
17    from subscribed shares of photovoltaic community renewable
18    generation projects through the Adjustable Block program
19    described in subparagraph (K) of this paragraph (1) or
20    through the Illinois Solar for All Program described in
21    Section 1-56 of this Act. The electric utility shall
22    purchase any unsubscribed energy from community renewable
23    generation projects that are Qualifying Facilities ("QF")
24    under the electric utility's tariff for purchasing the
25    output from QFs under Public Utilities Regulatory Policies
26    Act of 1978.

 

 

HB5663- 50 -LRB101 19090 SPS 68550 b

1        The owners of and any subscribers to a community
2    renewable generation project shall not be considered
3    public utilities or alternative retail electricity
4    suppliers under the Public Utilities Act solely as a result
5    of their interest in or subscription to a community
6    renewable generation project and shall not be required to
7    become an alternative retail electric supplier by
8    participating in a community renewable generation project
9    with a public utility.
10        (O) For the delivery year beginning June 1, 2018, the
11    long-term renewable resources procurement plan required by
12    this subsection (c) shall provide for the Agency to procure
13    contracts to continue offering the Illinois Solar for All
14    Program described in subsection (b) of Section 1-56 of this
15    Act, and the contracts approved by the Commission shall be
16    executed by the utilities that are subject to this
17    subsection (c). The long-term renewable resources
18    procurement plan shall allocate 5% of the funds available
19    under the plan for the applicable delivery year, or
20    $10,000,000 per delivery year, whichever is greater, to
21    fund the programs, and the plan shall determine the amount
22    of funding to be apportioned to the programs identified in
23    subsection (b) of Section 1-56 of this Act; provided that
24    for the delivery years beginning June 1, 2017, June 1,
25    2021, and June 1, 2025, the long-term renewable resources
26    procurement plan shall allocate 10% of the funds available

 

 

HB5663- 51 -LRB101 19090 SPS 68550 b

1    under the plan for the applicable delivery year, or
2    $20,000,000 per delivery year, whichever is greater, and
3    $10,000,000 of such funds in such year shall be used by an
4    electric utility that serves more than 3,000,000 retail
5    customers in the State to implement a Commission-approved
6    plan under Section 16-108.12 of the Public Utilities Act.
7    In making the determinations required under this
8    subparagraph (O), the Commission shall consider the
9    experience and performance under the programs and any
10    evaluation reports. The Commission shall also provide for
11    an independent evaluation of those programs on a periodic
12    basis that are funded under this subparagraph (O).
13        (2) (Blank).
14        (3) (Blank).
15        (4) The electric utility shall retire all renewable
16    energy credits used to comply with the standard.
17        (5) Beginning with the 2010 delivery year and ending
18    June 1, 2017, an electric utility subject to this
19    subsection (c) shall apply the lesser of the maximum
20    alternative compliance payment rate or the most recent
21    estimated alternative compliance payment rate for its
22    service territory for the corresponding compliance period,
23    established pursuant to subsection (d) of Section 16-115D
24    of the Public Utilities Act to its retail customers that
25    take service pursuant to the electric utility's hourly
26    pricing tariff or tariffs. The electric utility shall

 

 

HB5663- 52 -LRB101 19090 SPS 68550 b

1    retain all amounts collected as a result of the application
2    of the alternative compliance payment rate or rates to such
3    customers, and, beginning in 2011, the utility shall
4    include in the information provided under item (1) of
5    subsection (d) of Section 16-111.5 of the Public Utilities
6    Act the amounts collected under the alternative compliance
7    payment rate or rates for the prior year ending May 31.
8    Notwithstanding any limitation on the procurement of
9    renewable energy resources imposed by item (2) of this
10    subsection (c), the Agency shall increase its spending on
11    the purchase of renewable energy resources to be procured
12    by the electric utility for the next plan year by an amount
13    equal to the amounts collected by the utility under the
14    alternative compliance payment rate or rates in the prior
15    year ending May 31.
16        (6) The electric utility shall be entitled to recover
17    all of its costs associated with the procurement of
18    renewable energy credits under plans approved under this
19    Section and Section 16-111.5 of the Public Utilities Act.
20    These costs shall include associated reasonable expenses
21    for implementing the procurement programs, including, but
22    not limited to, the costs of administering and evaluating
23    the Adjustable Block program, through an automatic
24    adjustment clause tariff in accordance with subsection (k)
25    of Section 16-108 of the Public Utilities Act.
26        (7) Renewable energy credits procured from new

 

 

HB5663- 53 -LRB101 19090 SPS 68550 b

1    photovoltaic projects or new distributed renewable energy
2    generation devices under this Section after June 1, 2017
3    (the effective date of Public Act 99-906) must be procured
4    from devices installed by a qualified person in compliance
5    with the requirements of Section 16-128A of the Public
6    Utilities Act and any rules or regulations adopted
7    thereunder.
8        In meeting the renewable energy requirements of this
9    subsection (c), to the extent feasible and consistent with
10    State and federal law, the renewable energy credit
11    procurements, Adjustable Block solar program, and
12    community renewable generation program shall provide
13    employment opportunities for all segments of the
14    population and workforce, including minority-owned and
15    female-owned business enterprises, and shall not,
16    consistent with State and federal law, discriminate based
17    on race or socioeconomic status.
18    (c-5) Procurement of renewable energy credits from new
19renewable energy resources installed at or adjacent to the
20sites of electric generating facilities that burn or burned
21coal as their primary fuel source.
22        (1) In addition to the procurement of renewable energy
23    credits pursuant to long-term renewable resources
24    procurement plans in accordance with subsection (c) of this
25    Section and Section 16-111.5 of the Public Utilities Act,
26    the Agency shall conduct a procurement event in accordance

 

 

HB5663- 54 -LRB101 19090 SPS 68550 b

1    with this subsection (c-5) for the procurement by electric
2    utilities that served more than 300,000 retail customers in
3    this State as of January 1, 2019 of renewable energy
4    credits from new renewable energy resources to be installed
5    at or adjacent to the sites of electric generating
6    facilities that, as of January 1, 2019, burned coal as
7    their primary fuel source. The renewable energy credits
8    procured pursuant to this subsection (c-5) shall not be
9    included or counted for purposes of compliance with the
10    amounts of renewable energy credits required to be procured
11    pursuant to subsection (c) of this Section. The procurement
12    of renewable energy credits by electric utilities pursuant
13    to this subsection (c-5) shall be funded solely by revenues
14    collected from the Coal to Solar and Energy Storage
15    Initiative Charge provided for in this subsection (c-5) and
16    subsection (i-5) of Section 16-108 of the Public Utilities
17    Act, shall not be funded by revenues collected through any
18    of the other funding mechanisms provided for in subsection
19    (c) of this Section, and shall not be subject to the
20    limitation imposed by subsection (c) on charges to retail
21    customers for costs to procure renewable energy resources
22    pursuant to subsection (c).
23        (2) No later than September 30, 2020, the Agency shall
24    conduct a procurement event to select owners of electric
25    generating facilities meeting the eligibility criteria
26    specified in this subsection (c-5) to enter into long-term

 

 

HB5663- 55 -LRB101 19090 SPS 68550 b

1    contracts to sell renewable energy credits to electric
2    utilities serving more than 300,000 retail customers in
3    this State. The Agency shall establish and announce a time
4    period, which shall begin no later than 30 days prior to
5    the scheduled date for the procurement event, during which
6    applicants may submit applications to be selected as
7    suppliers of renewable energy credits pursuant to this
8    subsection (c-5). The eligibility criteria for selection
9    as a supplier of renewable energy credits pursuant to this
10    subsection (c-5) shall be as follows:
11            (A) The applicant owns an electric generating
12        facility located in this State and south of federal
13        Interstate Highway 80 that (i) as of January 1, 2019,
14        burned coal as its primary fuel to generate electricity
15        and (ii) has, or had prior to retirement, an electric
16        generating capacity of at least 150 megawatts. The
17        electric generating facility can be either (i) retired
18        as of September 30, 2020, or (ii) still operating as of
19        September 30, 2020.
20            (B) The applicant is not (i) a public utility as
21        defined in Section 3-105 of the Public Utilities Act,
22        (ii) an electric cooperative as defined in Section
23        3-119 of the Public Utilities Act, or (iii) an entity
24        described in paragraph (1) of subsection (b) of Section
25        3-105 of the Public Utilities Act, or an association or
26        consortium of or an entity owned by entities described

 

 

HB5663- 56 -LRB101 19090 SPS 68550 b

1        in (ii) or (iii).
2            (C) The applicant proposes and commits to
3        construct and operate, at the site, or on property
4        adjacent to the existing property, of the electric
5        generating facility identified in paragraph (A); (i) a
6        new renewable energy resource of at least 20 megawatts
7        but no more than 100 megawatts of electric generating
8        capacity; and (ii) an energy storage facility to be
9        operated in conjunction with the new renewable energy
10        resource and having a storage capacity in
11        megawatthours equal to or greater than the product of
12        the electric generating capacity of the new renewable
13        energy resource in megawatts times 0.5.
14            (D) The applicant agrees that the new renewable
15        energy resource and the energy storage facility will be
16        constructed or installed by a qualified person or
17        persons in compliance with the requirements of
18        subsection (g) of Section 16-128A of the Public
19        Utilities Act and any rules adopted thereunder.
20            (E) The applicant agrees that the personnel
21        operating the new renewable energy resource and the
22        energy storage facility will have the requisite
23        skills, knowledge, training, experience, and
24        competence consistent with subsection (a) of Section
25        16-128 of the Public Utilities Act, including through
26        training and education courses and opportunities

 

 

HB5663- 57 -LRB101 19090 SPS 68550 b

1        offered by the applicant to employees of the
2        coal-fueled electric generating facilities being
3        retired.
4            (F) The applicant commits to enter into a contract
5        or contracts of 15 years duration to provide renewable
6        energy credits to electric utilities that served more
7        than 300,000 retail customers in this State as of
8        January 1, 2019 at a price of $35 per renewable energy
9        credit, with the amount of renewable energy credits to
10        be supplied during each year of the contract term to be
11        equal to or greater than the product of the electric
12        generating capacity of the new renewable energy
13        resource in megawatts times 8,760 hours times 0.22.
14            (G) The applicant's application is certified by an
15        officer of the applicant and by an officer of the
16        applicant's ultimate parent company, if any.
17        (3) An applicant may submit applications to contract to
18    supply renewable energy credits from more than one new
19    renewable energy resource to be constructed at or adjacent
20    to more than one qualifying electric generating facility
21    site owned by the applicant. The Agency may select new
22    renewable energy resources to be located at or adjacent to
23    the sites of more than one qualifying electric generating
24    facility owned by an applicant to contract with electric
25    utilities to supply renewable energy credits from such
26    facilities.

 

 

HB5663- 58 -LRB101 19090 SPS 68550 b

1        (4) The Agency shall assess fees to each applicant to
2    recover the Agency's costs incurred in receiving and
3    evaluating applications, conducting the procurement event,
4    developing contracts for sale, delivery, and purchase of
5    renewable energy credits, and monitoring the
6    administration of such contracts, as provided for in this
7    subsection (c-5), including fees paid to a procurement
8    administrator retained by the Agency for one or more of
9    these purposes.
10        (5) The Agency shall select the applicants and the new
11    renewable energy resources to contract with electric
12    utilities to supply renewable energy credits in accordance
13    with this subsection (c-5). The Agency shall select
14    applicants and new renewable energy resources to supply
15    renewable energy credits aggregating to no less than
16    400,000 renewable energy credits per year for 15 years,
17    assuming sufficient qualifying applications to supply at
18    least that amount of renewable energy credits per year; and
19    no more than 600,000 renewable energy credits per year for
20    15 years. The obligation to purchase renewable energy
21    credits from the applicants and their new renewable energy
22    resources selected by the Agency shall be allocated to
23    electric utilities as follows: (i) electric utilities
24    serving more than 1,000,000 retail customers in this State
25    shall be required to contract to purchase 70%, and electric
26    utilities serving more than 300,000 but less than 1,000,000

 

 

HB5663- 59 -LRB101 19090 SPS 68550 b

1    retail customers in this State shall be required to
2    contract to purchase 30 %, of the renewable energy credits
3    from the applicants and the new renewable energy resources
4    selected by the Agency. In order to achieve these
5    allocation percentages between or among the electric
6    utilities, the Agency may require an applicant to enter
7    into contracts with more than one electric utility for the
8    sale and purchase of renewable energy credits from a new
9    renewable energy resource to be constructed and operated by
10    the applicant, with the sale and purchase obligations under
11    the contracts to aggregate to the total number of renewable
12    energy credits per year to be supplied by the applicant
13    from such new renewable energy resource. The Agency shall
14    submit its proposed selection of applicants, new renewable
15    energy resources to be constructed, and renewable energy
16    credit amounts, to the Commission for approval. The
17    Commission shall, within 2 business days after receipt of
18    the Agency's proposed selections, approve the proposed
19    selections if it determines that the applicants and the new
20    renewable energy resources to be constructed meet the
21    selection criteria set forth in this subsection (c-5) and
22    that the Agency proposes to select applicants for contracts
23    aggregating to no more than 600,000 renewable energy
24    credits per year for 15 years.
25        (6) The Agency, in conjunction with its procurement
26    administrator if one is retained and the electric

 

 

HB5663- 60 -LRB101 19090 SPS 68550 b

1    utilities, shall develop a standard form contract for the
2    sale, delivery and purchase of renewable energy credits
3    pursuant to this subsection (c-5). The contracts shall
4    provide for commercial operation dates for the new
5    renewable energy resources such that (i) the new renewable
6    energy resources from which approximately 50% of the
7    renewable energy credits are contracted will be required to
8    achieve commercial operation by December 31, 2022, and will
9    receive payments for renewable energy credits for the
10    15-year period beginning January 1, 2023, and (ii) the new
11    renewable energy resources from which the remainder of the
12    renewable energy credits are contracted will be required to
13    achieve commercial operation by December 31, 2023, and will
14    receive payments for renewable energy credits for the
15    15-year period beginning January 1, 2024. The form contract
16    shall be, to the maximum extent possible, consistent with
17    standard electric industry contracts for sale, delivery,
18    and purchase of renewable energy credits while taking into
19    account the specific requirements of this subsection
20    (c-5). The contract shall include penalty, default, and
21    enforcement provisions for failure of the selling party to
22    deliver renewable energy credits in the amounts specified
23    in the contract and to comply with the requirements of this
24    subsection (c-5). The standard form contract shall specify
25    that all renewable energy credits delivered to the electric
26    utility pursuant to the contract shall be retired. The

 

 

HB5663- 61 -LRB101 19090 SPS 68550 b

1    Agency shall make the proposed contracts available for a
2    reasonable period for comment by potential applicants, and
3    shall publish the final form contract at least 30 days
4    before the date of the procurement event.
5        (7) Coal to Solar and Energy Storage Initiative Charge.
6            (A) Within 30 days following the effective date of
7        this amendatory Act of the 101st General Assembly, each
8        electric utility that served more than 300,000 retail
9        customers in this State as of January 1, 2019 shall
10        file a tariff for the billing and collection of a Coal
11        to Solar and Energy Storage Initiative Charge in
12        accordance with subsection (i-5) of Section 16-108 of
13        the Public Utilities Act. The electric utility's
14        tariff shall provide for the billing and collection of
15        the Coal to Solar and Energy Storage Initiative Charge
16        on each kilowatthour of electricity delivered to its
17        delivery services customers within its service
18        territory of (i) 0.084 cents per kilowatthour from the
19        effective date of the tariff through December 31, 2024,
20        (ii) 0.060 cents per kilowatthour from January 1, 2025
21        through December 31, 2025, (C) 0.029 cents per
22        kilowatthour from January 1, 2026 through December 31,
23        2033, (D) 0.017 cents per kilowatthour from January 1,
24        2034 through December 31, 2037, and (E) 0.008 cents per
25        kilowatthour from January 1, 2038 through December 31
26        of the year in which the last renewable energy credit

 

 

HB5663- 62 -LRB101 19090 SPS 68550 b

1        sale and purchase contract entered into pursuant to
2        this subsection (c-5) terminates.
3            (B) Each electric utility shall remit, on a monthly
4        basis, the following percent of its collections of the
5        Coal to Solar and Energy Storage Initiative Charge to
6        the State Treasurer for deposit into the Coal to Solar
7        and Energy Storage Incentive and Plant Transition Fund
8        provided for in this subsection (c-5): (i) from the
9        effective date of the electric utility's tariff
10        through December 31, 2022, 100%; (ii) from January 1,
11        2023 through December 31, 2023, 89.79%; (iii) from
12        January 1, 2024 through December 31, 2024, 83.64%; (iv)
13        from January 1, 2025 through December 31, 2025, 71.7%;
14        (v) and from January 1, 2026 through December 31, 2034,
15        41.67% provided, that the electric utilities'
16        remittances for deposit into the Coal to Solar and
17        Energy Storage Incentive and Plant Transition Fund for
18        the last 3 calendar months of the years 2023 through
19        2033 shall be adjusted so that the aggregate
20        remittances for deposit by the electric utilities for
21        deposits for the years 2023, 2033, and 2034 into the
22        Coal to Solar and Energy Storage Incentive and Plant
23        Transition Fund constitute all collections of the Coal
24        to Solar and Energy Storage Initiative Charge in excess
25        of $10,500,000 and that the aggregate remittances by
26        the electric utilities for deposits for the years 2024

 

 

HB5663- 63 -LRB101 19090 SPS 68550 b

1        through 2032 into the Coal to Solar and Energy Storage
2        Incentive and Plant Transition Fund constitute all
3        collections of the Coal to Solar and Energy Storage
4        Initiative Charge in excess of $21,000,000 in each
5        year. All other collections of the Coal to Solar and
6        Energy Storage Initiative Charge shall be held in
7        reserves by the electric utility until deliveries
8        begin of renewable energy credits pursuant to
9        contracts entered into in accordance with this
10        subsection (c-5), and thereafter such reserves and
11        collections shall be used by the electric utility to
12        pay for renewable energy credits delivered pursuant to
13        such contracts. If, as of May 31 of any year beginning
14        January 31, 2025 or thereafter, an electric utility
15        holds Coal to Solar and Energy Storage Initiative
16        Charge collections greater than 110% of its projected
17        payment obligations under such contracts for the
18        remainder of such year, the electric utility shall
19        refund one-half of such excess collections to its
20        delivery services customers on a uniform cents per
21        kilowatthour basis over a 6-month period, in
22        accordance with a procedure specified in its Coal to
23        Solar and Energy Storage Initiative Charge tariff.
24        (8) Coal to Solar and Energy Storage Incentive and
25    Plant Transition Fund.
26            (A) The Coal to Solar and Energy Storage Incentive

 

 

HB5663- 64 -LRB101 19090 SPS 68550 b

1        and Plant Transition Fund is established as a special
2        fund in the State treasury. The Coal to Solar and
3        Energy Storage Incentive and Plant Transition Fund is
4        authorized to receive, by statutory deposit, that
5        portion specified in item (B) of paragraph (7) of this
6        subsection (c-5) of moneys collected by electric
7        utilities through imposition of the Coal to Solar and
8        Energy Storage Initiative Charge required by this
9        subsection (c-5). The Coal to Solar and Energy Storage
10        Incentive and Plant Transition Fund shall be
11        administered by the Illinois Department of Commerce
12        and Economic Opportunity, which shall be referred to in
13        this subsection (c-5) as the Department, to provide
14        transitional support funding to coal-fueled electric
15        generating facilities in this State owned by an
16        applicant, or by a company with a common parent company
17        as an applicant, that has been selected by the Agency
18        to enter into a contract or contracts to sell renewable
19        energy credits from a new renewable energy resource to
20        an electric utility in accordance with this subsection
21        (c-5).
22            (B) The objective of the transitional support
23        funding provided for in this paragraph (8) is to assist
24        and enable qualifying electric generating facilities
25        in this State to remain in operation during the period
26        from the effective date of this amendatory Act of the

 

 

HB5663- 65 -LRB101 19090 SPS 68550 b

1        101st General Assembly through May 31, 2025, in order
2        to ensure that adequate electric generating resources
3        are available in this State through that date, while
4        the State's portfolio of renewable energy resources is
5        being expanded, and to provide a transition period for
6        the communities in which qualifying electric
7        generating facilities are located prior to the
8        retirement of the qualifying electric generating
9        facilities.
10            (C) The Coal to Solar and Energy Storage Incentive
11        and Plant Transition Fund shall not be subject to
12        sweeps, administrative charges, or chargebacks,
13        including, but not limited to, those authorized under
14        Section 8h of the State Finance Act, that would in any
15        way result in the transfer of those funds from the Coal
16        to Solar and Energy Storage Incentive and Plant
17        Transition Fund to any other fund of this State or in
18        having any such funds used for any purpose other than
19        the express purposes set forth in this paragraph (8) of
20        subsection (c-5).
21            (D) The Department shall provide grants of
22        transitional support funding from the Coal to Solar and
23        Energy Storage Incentive and Plant Transition Fund to
24        owners of qualifying electric generating facilities in
25        this State that meet the criteria specified in this
26        paragraph (8) of subsection (c-5), for the period

 

 

HB5663- 66 -LRB101 19090 SPS 68550 b

1        January 1, 2021 through May 31, 2025, in aggregate
2        amounts not exceeding $92,500,000 in each calendar
3        year in such period for grants in respect of 2,200
4        megawatts of electric generating capacity. The amount
5        of transitional support funding granted to the owner of
6        a qualifying electric generating facility for a
7        calendar year shall be equal to the product of (i) $115
8        less the clearing price per megawatt-day in the
9        Planning Resource Auction of the Midcontinent
10        Independent System Operator, Inc., which shall be
11        referred to in this subparagraph (D) as MISO, held in
12        the preceding calendar year (but not less than $0),
13        times (ii) the megawatts of electric generating
14        capacity of the qualifying electric generating
15        facility, times (iii) 365, which the General Assembly
16        finds is an amount that should enable a qualifying
17        electric generating facility to recover its annual
18        cost of service; provided, (1) that for the period
19        January 1, 2025 through May 31, 2025, the amount of
20        transitional support funding granted to the owner of a
21        qualifying electric generating facility shall be equal
22        to the product of (i) $115 less the clearing price per
23        megawatt-day in the Planning Resource Auction of the
24        MISO held in the preceding calendar year (but not less
25        than $0), times (ii) the megawatts of electric
26        generating capacity of the qualifying electric

 

 

HB5663- 67 -LRB101 19090 SPS 68550 b

1        generating facility, times (iii) 151; and provided
2        further that for each calendar year and for the period
3        January 31, 2025 through May 31, 2025, the owner may
4        request that a lower number of megawatts than the full
5        rated generating capacity of an electric generating
6        facility be used to calculate the amount of
7        transitional support funding provided to that electric
8        generating facility for such a period. For avoidance of
9        doubt and by way of example, if grants of transitional
10        support funding for 2,200 megawatts of electric
11        generating capacity of qualifying electric generating
12        facilities are made for a calendar year and the
13        clearing price in the MISO Planning Resource Auction
14        for the preceding calendar year equaled $50 per
15        megawatt-day, the aggregate amount of the grants of
16        transitional support funding for the calendar year
17        would be $52,195,000. If the clearing price in the MISO
18        Planning Resource Auction in the preceding calendar
19        year is equal to or greater than $115 per megawatt-day,
20        no transition support funding shall be paid for the
21        current year.
22            (E) The grant amounts shall be paid to the
23        recipients on a quarterly basis with payments to be
24        made on May 31, August 31, November 30, and February 28
25        for the immediately preceding calendar quarter, with
26        the final payment for the period April 1, 2025 through

 

 

HB5663- 68 -LRB101 19090 SPS 68550 b

1        May 31, 2025, to be made on July 31, 2025, in each case
2        subject to the availability of sufficient funds in the
3        Coal to Solar and Energy Storage Incentive and Plant
4        Transition Fund, with any shortfall in a payment to be
5        added to the payment due for the period immediately
6        following. No grant payments for transitional support
7        funding shall be made to the owner of a qualifying
8        electric generating facility in respect of any period
9        subsequent to the retirement date of the electric
10        generating facility.
11            (F) The qualifications for a grant of transitional
12        support funding from the Coal to Solar and Energy
13        Storage Incentive and Plant Transition Fund for an
14        electric generating facility are as follows: (i) the
15        electric generating facility is located in this State
16        south of federal Interstate Highway 80, but is not
17        directly interconnected to an electric utility located
18        within the PJM Interconnection, LLC independent system
19        operator region; (ii) the electric generating facility
20        has an electric generating capacity of at least 150
21        megawatts; (iii) the electric generating facility
22        burned coal as its primary source of fuel as of January
23        1, 2019; (iv) the electric generating facility either
24        is owned by an applicant that has been selected by the
25        Agency pursuant to this subsection (c-5) to enter into
26        a contract or contracts with one or more electric

 

 

HB5663- 69 -LRB101 19090 SPS 68550 b

1        utilities to deliver renewable energy credits from a
2        new renewable energy resource to be constructed at an
3        existing electric generating facility owned by the
4        applicant, or is owned by a company that has a common
5        parent company with such an applicant and has been
6        designated by the applicant to the Department as a
7        candidate to receive a grant of transitional support
8        funding; and (v) the owner of the electric generating
9        facility commits, as a condition to receiving the grant
10        of transitional support funding, to maintain the
11        electric generating facility in operation until at
12        least May 31, 2025.
13            (G) If a coal-fueled electric generating facility
14        that is awarded a grant of transitional support funding
15        pursuant to this paragraph (8) and therefore is
16        designated pursuant to subparagraph (F) for retirement
17        no earlier than May 31, 2025, is required (i) prior to
18        May 31, 2025, to make capital expenditures of at least
19        $5,000,000 in order to remain in or attain compliance
20        with any environmental law or regulation, (ii) prior to
21        May 31, 2025, make capital expenditures for purposes
22        other than environmental compliance of at least
23        $5,000,000 that were neither known or reasonably
24        foreseeable as of September 1, 2020, or (iii) prior to
25        May 31, 2025, to retire or cease operations pursuant to
26        an order of a court, regulatory agency, or

 

 

HB5663- 70 -LRB101 19090 SPS 68550 b

1        administrative body, consent decree, administrative
2        compliance order, or other similar legally enforceable
3        order, then such coal-fueled electric generating
4        facility may be retired, (1) in the event of (i) or
5        (ii) above, by December 31 of the year prior to the
6        year in which such capital expenditures must be
7        incurred, and (2) in the event of (iii) above, by such
8        date as required pursuant to the applicable order,
9        consent decree, administrative compliance order, or
10        other similar legally enforceable order. Additionally,
11        if the owner of the electric generating facility does
12        not receive a full grant payment in accordance with the
13        grant contract for 2 consecutive quarters for any
14        reason other than insufficient collections deposited
15        into the Coal to Solar and Energy Storage Incentive and
16        Plant Transition Fund to make the full quarterly grant
17        payment, the owner may forthwith retire the electric
18        generating facility. The owner of any coal-fueled
19        electric generating facility retired pursuant to this
20        paragraph shall receive no further grant payments of
21        transitional support funding in respect of that
22        facility for periods after its retirement date.
23            (H) An owner may receive a grant of transitional
24        support funding from the Coal to Solar and Energy
25        Storage Incentive and Plant Transition Fund for more
26        than one qualifying electric generating facility.

 

 

HB5663- 71 -LRB101 19090 SPS 68550 b

1            (I) The Department shall establish a schedule for
2        receiving and evaluating applications for grants of
3        transitional support funding from the Coal to Solar and
4        Energy Storage Incentive and Plant Transition Fund.
5        The schedule shall be consistent with the schedule
6        established by the Agency for receiving and evaluating
7        applications to be selected to enter into contracts to
8        sell renewable energy credits from new renewable
9        energy resources in accordance with this subsection
10        (c-5). The Department shall announce the qualifying
11        electric generating facilities that will receive
12        grants of transitional funding support from the Coal to
13        Solar and Energy Storage Incentive and Plant
14        Transition Fund no later than November 1, 2020.
15            (J) In addition to the grants for transitional
16        support funding provided for in this paragraph (8), the
17        Department shall set aside and utilize up to
18        $150,000,000 in the Coal to Solar and Energy Storage
19        Incentive and Plant Transition Fund for grants,
20        assuming sufficient qualifying applicants, to support
21        installation of energy storage facilities at the sites
22        of up to 5 electric generating facilities in Illinois
23        that meet the criteria set forth in this paragraph (J).
24        The criteria for receipt of a grant pursuant to this
25        paragraph (J) are as follows: (1) the site is located
26        south of federal Interstate Highway 80; (2) the

 

 

HB5663- 72 -LRB101 19090 SPS 68550 b

1        electric generating facility burns (or burned prior to
2        retirement) coal as its primary source of fuel; (3) if
3        the electric generating facility is retired, it was
4        retired subsequent to July 1, 2011; (4) the electric
5        generating facility has not been selected by the Agency
6        pursuant to subsection (c-5) of this Section to enter
7        into a contract to sell renewable energy credits to one
8        or more electric utilities from a new renewable energy
9        resource located or to be located at or adjacent to the
10        site of the electric generating facility; (5) the
11        electric generating facility or the site of the
12        facility is not owned by (i) a public utility as
13        defined in Section 3-105 of the Public Utilities Act,
14        (ii) an electric cooperative as defined in Section
15        3-119 of the Public Utilities Act, or (iii) an entity
16        described in paragraph (1) of subsection (b) of Section
17        3-105 of the Public Utilities Act, or an association or
18        consortium of or an entity owned by entities described
19        in (ii) or (iii); (6) the proposed energy storage
20        facility is a 4-hour energy storage facility; (7) the
21        owner commits to place the energy storage facility into
22        commercial operation by January 1, 2023 and no later
23        than January 1, 2025; and (8) the owner agrees that (i)
24        the new energy storage facility will be constructed or
25        installed by a qualified person or persons in
26        compliance with the requirements of subsection (g) of

 

 

HB5663- 73 -LRB101 19090 SPS 68550 b

1        Section 16-128A of the Public Utilities Act and any
2        rules adopted thereunder, and (ii) the personnel
3        operating the energy storage facility will have the
4        requisite skills, knowledge, training, experience, and
5        competence consistent with subsection (a) of Section
6        16-128 of the Public Utilities Act, including through
7        training and education courses and opportunities
8        offered by the owner to employees of the coal-fueled
9        generating facility being retired. The Department
10        shall accept applications for this grant program until
11        December 31, 2021, and shall announce the award of
12        grants no later than March 31, 2022. The Department
13        shall make the grant payments to a recipient in equal
14        annual amounts for 10 years beginning January 1 of the
15        year immediately following the date the energy storage
16        facility is placed into commercial operation. The
17        annual grant payments to a qualifying energy storage
18        facility shall be $110,000 per megawatt capacity for a
19        4-hour energy storage facility, with total annual
20        grant payments pursuant to this paragraph (J) for
21        qualifying energy storage facilities not to exceed
22        $15,000,000. Any uncommitted portion of the amount of
23        funding set aside by the Department for grants to
24        support installation of energy storage facilities
25        pursuant to this subparagraph (J) shall be used for
26        grants of transitional support funding in accordance

 

 

HB5663- 74 -LRB101 19090 SPS 68550 b

1        with this paragraph (8), to the extent needed.
2            (K) Grants of transitional support funding, and of
3        funding for energy storage facilities pursuant to
4        subparagraph (J) of this paragraph (8), from the Coal
5        to Solar and Energy Storage Incentive and Plant
6        Transition Fund shall be memorialized in grant
7        contracts between the Department and the recipient.
8            (L) All disbursements from the Coal to Solar and
9        Energy Storage Incentive and Plant Transition Fund
10        shall be made only upon warrants of the Comptroller
11        drawn upon the Treasurer as custodian of the Fund upon
12        vouchers signed by the Director of the Department or by
13        the person or persons designated by the Director of the
14        Department for that purpose. The Comptroller is
15        authorized to draw the warrants upon vouchers so
16        signed. The Treasurer shall accept all written
17        warrants so signed and shall be released from liability
18        for all payments made on those warrants.
19            (M) Beginning May 1, 2026, and each year
20        thereafter, any amounts in the Coal to Solar and Energy
21        Storage Incentive and Plant Transition Fund that
22        exceed 110% of the amount needed to fund contracted
23        grant payments to support new energy storage
24        facilities pursuant to subparagraph (J) of this
25        paragraph (8) for such year shall be returned by the
26        Department to the electric utilities, in the same

 

 

HB5663- 75 -LRB101 19090 SPS 68550 b

1        proportion as the electric utilities' original
2        remittances for deposits into the Coal to Solar and
3        Energy Storage Incentive and Plant Transition Fund.
4        Each electric utility shall refund any such amounts it
5        receives to its delivery services customers on a
6        uniform cents per kilowatthour basis over a 6-month
7        period in accordance with procedures specified in the
8        electric utility's tariff for billing and collection
9        of the Coal to Solar and Energy Storage Initiative
10        Charge.
11    (d) Clean coal portfolio standard.
12        (1) The procurement plans shall include electricity
13    generated using clean coal. Each utility shall enter into
14    one or more sourcing agreements with the initial clean coal
15    facility, as provided in paragraph (3) of this subsection
16    (d), covering electricity generated by the initial clean
17    coal facility representing at least 5% of each utility's
18    total supply to serve the load of eligible retail customers
19    in 2015 and each year thereafter, as described in paragraph
20    (3) of this subsection (d), subject to the limits specified
21    in paragraph (2) of this subsection (d). It is the goal of
22    the State that by January 1, 2025, 25% of the electricity
23    used in the State shall be generated by cost-effective
24    clean coal facilities. For purposes of this subsection (d),
25    "cost-effective" means that the expenditures pursuant to
26    such sourcing agreements do not cause the limit stated in

 

 

HB5663- 76 -LRB101 19090 SPS 68550 b

1    paragraph (2) of this subsection (d) to be exceeded and do
2    not exceed cost-based benchmarks, which shall be developed
3    to assess all expenditures pursuant to such sourcing
4    agreements covering electricity generated by clean coal
5    facilities, other than the initial clean coal facility, by
6    the procurement administrator, in consultation with the
7    Commission staff, Agency staff, and the procurement
8    monitor and shall be subject to Commission review and
9    approval.
10        A utility party to a sourcing agreement shall
11    immediately retire any emission credits that it receives in
12    connection with the electricity covered by such agreement.
13        Utilities shall maintain adequate records documenting
14    the purchases under the sourcing agreement to comply with
15    this subsection (d) and shall file an accounting with the
16    load forecast that must be filed with the Agency by July 15
17    of each year, in accordance with subsection (d) of Section
18    16-111.5 of the Public Utilities Act.
19        A utility shall be deemed to have complied with the
20    clean coal portfolio standard specified in this subsection
21    (d) if the utility enters into a sourcing agreement as
22    required by this subsection (d).
23        (2) For purposes of this subsection (d), the required
24    execution of sourcing agreements with the initial clean
25    coal facility for a particular year shall be measured as a
26    percentage of the actual amount of electricity

 

 

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1    (megawatt-hours) supplied by the electric utility to
2    eligible retail customers in the planning year ending
3    immediately prior to the agreement's execution. For
4    purposes of this subsection (d), the amount paid per
5    kilowatthour means the total amount paid for electric
6    service expressed on a per kilowatthour basis. For purposes
7    of this subsection (d), the total amount paid for electric
8    service includes without limitation amounts paid for
9    supply, transmission, distribution, surcharges and add-on
10    taxes.
11        Notwithstanding the requirements of this subsection
12    (d), the total amount paid under sourcing agreements with
13    clean coal facilities pursuant to the procurement plan for
14    any given year shall be reduced by an amount necessary to
15    limit the annual estimated average net increase due to the
16    costs of these resources included in the amounts paid by
17    eligible retail customers in connection with electric
18    service to:
19            (A) in 2010, no more than 0.5% of the amount paid
20        per kilowatthour by those customers during the year
21        ending May 31, 2009;
22            (B) in 2011, the greater of an additional 0.5% of
23        the amount paid per kilowatthour by those customers
24        during the year ending May 31, 2010 or 1% of the amount
25        paid per kilowatthour by those customers during the
26        year ending May 31, 2009;

 

 

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1            (C) in 2012, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2011 or 1.5% of the
4        amount paid per kilowatthour by those customers during
5        the year ending May 31, 2009;
6            (D) in 2013, the greater of an additional 0.5% of
7        the amount paid per kilowatthour by those customers
8        during the year ending May 31, 2012 or 2% of the amount
9        paid per kilowatthour by those customers during the
10        year ending May 31, 2009; and
11            (E) thereafter, the total amount paid under
12        sourcing agreements with clean coal facilities
13        pursuant to the procurement plan for any single year
14        shall be reduced by an amount necessary to limit the
15        estimated average net increase due to the cost of these
16        resources included in the amounts paid by eligible
17        retail customers in connection with electric service
18        to no more than the greater of (i) 2.015% of the amount
19        paid per kilowatthour by those customers during the
20        year ending May 31, 2009 or (ii) the incremental amount
21        per kilowatthour paid for these resources in 2013, in
22        each of cases (i) and (ii) reduced by the amount of the
23        Coal to Solar and Energy Storage Incentive Charge
24        provided for in subsection (c-5) in effect during such
25        year. These requirements may be altered only as
26        provided by statute.

 

 

HB5663- 79 -LRB101 19090 SPS 68550 b

1        No later than June 30, 2015, the Commission shall
2    review the limitation on the total amount paid under
3    sourcing agreements, if any, with clean coal facilities
4    pursuant to this subsection (d) and report to the General
5    Assembly its findings as to whether that limitation unduly
6    constrains the amount of electricity generated by
7    cost-effective clean coal facilities that is covered by
8    sourcing agreements.
9        (3) Initial clean coal facility. In order to promote
10    development of clean coal facilities in Illinois, each
11    electric utility subject to this Section shall execute a
12    sourcing agreement to source electricity from a proposed
13    clean coal facility in Illinois (the "initial clean coal
14    facility") that will have a nameplate capacity of at least
15    500 MW when commercial operation commences, that has a
16    final Clean Air Act permit on June 1, 2009 (the effective
17    date of Public Act 95-1027), and that will meet the
18    definition of clean coal facility in Section 1-10 of this
19    Act when commercial operation commences. The sourcing
20    agreements with this initial clean coal facility shall be
21    subject to both approval of the initial clean coal facility
22    by the General Assembly and satisfaction of the
23    requirements of paragraph (4) of this subsection (d) and
24    shall be executed within 90 days after any such approval by
25    the General Assembly. The Agency and the Commission shall
26    have authority to inspect all books and records associated

 

 

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1    with the initial clean coal facility during the term of
2    such a sourcing agreement. A utility's sourcing agreement
3    for electricity produced by the initial clean coal facility
4    shall include:
5            (A) a formula contractual price (the "contract
6        price") approved pursuant to paragraph (4) of this
7        subsection (d), which shall:
8                (i) be determined using a cost of service
9            methodology employing either a level or deferred
10            capital recovery component, based on a capital
11            structure consisting of 45% equity and 55% debt,
12            and a return on equity as may be approved by the
13            Federal Energy Regulatory Commission, which in any
14            case may not exceed the lower of 11.5% or the rate
15            of return approved by the General Assembly
16            pursuant to paragraph (4) of this subsection (d);
17            and
18                (ii) provide that all miscellaneous net
19            revenue, including but not limited to net revenue
20            from the sale of emission allowances, if any,
21            substitute natural gas, if any, grants or other
22            support provided by the State of Illinois or the
23            United States Government, firm transmission
24            rights, if any, by-products produced by the
25            facility, energy or capacity derived from the
26            facility and not covered by a sourcing agreement

 

 

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1            pursuant to paragraph (3) of this subsection (d) or
2            item (5) of subsection (d) of Section 16-115 of the
3            Public Utilities Act, whether generated from the
4            synthesis gas derived from coal, from SNG, or from
5            natural gas, shall be credited against the revenue
6            requirement for this initial clean coal facility;
7            (B) power purchase provisions, which shall:
8                (i) provide that the utility party to such
9            sourcing agreement shall pay the contract price
10            for electricity delivered under such sourcing
11            agreement;
12                (ii) require delivery of electricity to the
13            regional transmission organization market of the
14            utility that is party to such sourcing agreement;
15                (iii) require the utility party to such
16            sourcing agreement to buy from the initial clean
17            coal facility in each hour an amount of energy
18            equal to all clean coal energy made available from
19            the initial clean coal facility during such hour
20            times a fraction, the numerator of which is such
21            utility's retail market sales of electricity
22            (expressed in kilowatthours sold) in the State
23            during the prior calendar month and the
24            denominator of which is the total retail market
25            sales of electricity (expressed in kilowatthours
26            sold) in the State by utilities during such prior

 

 

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

 

 

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1            sold) in the State by utilities during such prior
2            month and the sales of electricity (expressed in
3            kilowatthours sold) in the State by alternative
4            retail electric suppliers during such prior month
5            that are subject to the requirements of this
6            subsection (d) and paragraph (5) of subsection (d)
7            of Section 16-115 of the Public Utilities Act,
8            provided that the amount paid by the utility in any
9            year will be limited by paragraph (2) of this
10            subsection (d);
11                (ii) provide that the utility's payment
12            obligation in respect of the quantity of
13            electricity determined pursuant to the preceding
14            clause (i) shall be limited to an amount equal to
15            (1) the difference between the contract price
16            determined pursuant to subparagraph (A) of
17            paragraph (3) of this subsection (d) and the
18            day-ahead price for electricity delivered to the
19            regional transmission organization market of the
20            utility that is party to such sourcing agreement
21            (or any successor delivery point at which such
22            utility's supply obligations are financially
23            settled on an hourly basis) (the "reference
24            price") on the day preceding the day on which the
25            electricity is delivered to the initial clean coal
26            facility busbar, multiplied by (2) the quantity of

 

 

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1            electricity determined pursuant to the preceding
2            clause (i); and
3                (iii) not require the utility to take physical
4            delivery of the electricity produced by the
5            facility;
6            (D) general provisions, which shall:
7                (i) specify a term of no more than 30 years,
8            commencing on the commercial operation date of the
9            facility;
10                (ii) provide that utilities shall maintain
11            adequate records documenting purchases under the
12            sourcing agreements entered into to comply with
13            this subsection (d) and shall file an accounting
14            with the load forecast that must be filed with the
15            Agency by July 15 of each year, in accordance with
16            subsection (d) of Section 16-111.5 of the Public
17            Utilities Act;
18                (iii) provide that all costs associated with
19            the initial clean coal facility will be
20            periodically reported to the Federal Energy
21            Regulatory Commission and to purchasers in
22            accordance with applicable laws governing
23            cost-based wholesale power contracts;
24                (iv) permit the Illinois Power Agency to
25            assume ownership of the initial clean coal
26            facility, without monetary consideration and

 

 

HB5663- 85 -LRB101 19090 SPS 68550 b

1            otherwise on reasonable terms acceptable to the
2            Agency, if the Agency so requests no less than 3
3            years prior to the end of the stated contract term;
4                (v) require the owner of the initial clean coal
5            facility to provide documentation to the
6            Commission each year, starting in the facility's
7            first year of commercial operation, accurately
8            reporting the quantity of carbon emissions from
9            the facility that have been captured and
10            sequestered and report any quantities of carbon
11            released from the site or sites at which carbon
12            emissions were sequestered in prior years, based
13            on continuous monitoring of such sites. If, in any
14            year after the first year of commercial operation,
15            the owner of the facility fails to demonstrate that
16            the initial clean coal facility captured and
17            sequestered at least 50% of the total carbon
18            emissions that the facility would otherwise emit
19            or that sequestration of emissions from prior
20            years has failed, resulting in the release of
21            carbon dioxide into the atmosphere, the owner of
22            the facility must offset excess emissions. Any
23            such carbon offsets must be permanent, additional,
24            verifiable, real, located within the State of
25            Illinois, and legally and practicably enforceable.
26            The cost of such offsets for the facility that are

 

 

HB5663- 86 -LRB101 19090 SPS 68550 b

1            not recoverable shall not exceed $15 million in any
2            given year. No costs of any such purchases of
3            carbon offsets may be recovered from a utility or
4            its customers. All carbon offsets purchased for
5            this purpose and any carbon emission credits
6            associated with sequestration of carbon from the
7            facility must be permanently retired. The initial
8            clean coal facility shall not forfeit its
9            designation as a clean coal facility if the
10            facility fails to fully comply with the applicable
11            carbon sequestration requirements in any given
12            year, provided the requisite offsets are
13            purchased. However, the Attorney General, on
14            behalf of the People of the State of Illinois, may
15            specifically enforce the facility's sequestration
16            requirement and the other terms of this contract
17            provision. Compliance with the sequestration
18            requirements and offset purchase requirements
19            specified in paragraph (3) of this subsection (d)
20            shall be reviewed annually by an independent
21            expert retained by the owner of the initial clean
22            coal facility, with the advance written approval
23            of the Attorney General. The Commission may, in the
24            course of the review specified in item (vii),
25            reduce the allowable return on equity for the
26            facility if the facility willfully fails to comply

 

 

HB5663- 87 -LRB101 19090 SPS 68550 b

1            with the carbon capture and sequestration
2            requirements set forth in this item (v);
3                (vi) include limits on, and accordingly
4            provide for modification of, the amount the
5            utility is required to source under the sourcing
6            agreement consistent with paragraph (2) of this
7            subsection (d);
8                (vii) require Commission review: (1) to
9            determine the justness, reasonableness, and
10            prudence of the inputs to the formula referenced in
11            subparagraphs (A)(i) through (A)(iii) of paragraph
12            (3) of this subsection (d), prior to an adjustment
13            in those inputs including, without limitation, the
14            capital structure and return on equity, fuel
15            costs, and other operations and maintenance costs
16            and (2) to approve the costs to be passed through
17            to customers under the sourcing agreement by which
18            the utility satisfies its statutory obligations.
19            Commission review shall occur no less than every 3
20            years, regardless of whether any adjustments have
21            been proposed, and shall be completed within 9
22            months;
23                (viii) limit the utility's obligation to such
24            amount as the utility is allowed to recover through
25            tariffs filed with the Commission, provided that
26            neither the clean coal facility nor the utility

 

 

HB5663- 88 -LRB101 19090 SPS 68550 b

1            waives any right to assert federal pre-emption or
2            any other argument in response to a purported
3            disallowance of recovery costs;
4                (ix) limit the utility's or alternative retail
5            electric supplier's obligation to incur any
6            liability until such time as the facility is in
7            commercial operation and generating power and
8            energy and such power and energy is being delivered
9            to the facility busbar;
10                (x) provide that the owner or owners of the
11            initial clean coal facility, which is the
12            counterparty to such sourcing agreement, shall
13            have the right from time to time to elect whether
14            the obligations of the utility party thereto shall
15            be governed by the power purchase provisions or the
16            contract for differences provisions;
17                (xi) append documentation showing that the
18            formula rate and contract, insofar as they relate
19            to the power purchase provisions, have been
20            approved by the Federal Energy Regulatory
21            Commission pursuant to Section 205 of the Federal
22            Power Act;
23                (xii) provide that any changes to the terms of
24            the contract, insofar as such changes relate to the
25            power purchase provisions, are subject to review
26            under the public interest standard applied by the

 

 

HB5663- 89 -LRB101 19090 SPS 68550 b

1            Federal Energy Regulatory Commission pursuant to
2            Sections 205 and 206 of the Federal Power Act; and
3                (xiii) conform with customary lender
4            requirements in power purchase agreements used as
5            the basis for financing non-utility generators.
6        (4) Effective date of sourcing agreements with the
7    initial clean coal facility. Any proposed sourcing
8    agreement with the initial clean coal facility shall not
9    become effective unless the following reports are prepared
10    and submitted and authorizations and approvals obtained:
11            (i) Facility cost report. The owner of the initial
12        clean coal facility shall submit to the Commission, the
13        Agency, and the General Assembly a front-end
14        engineering and design study, a facility cost report,
15        method of financing (including but not limited to
16        structure and associated costs), and an operating and
17        maintenance cost quote for the facility (collectively
18        "facility cost report"), which shall be prepared in
19        accordance with the requirements of this paragraph (4)
20        of subsection (d) of this Section, and shall provide
21        the Commission and the Agency access to the work
22        papers, relied upon documents, and any other backup
23        documentation related to the facility cost report.
24            (ii) Commission report. Within 6 months following
25        receipt of the facility cost report, the Commission, in
26        consultation with the Agency, shall submit a report to

 

 

HB5663- 90 -LRB101 19090 SPS 68550 b

1        the General Assembly setting forth its analysis of the
2        facility cost report. Such report shall include, but
3        not be limited to, a comparison of the costs associated
4        with electricity generated by the initial clean coal
5        facility to the costs associated with electricity
6        generated by other types of generation facilities, an
7        analysis of the rate impacts on residential and small
8        business customers over the life of the sourcing
9        agreements, and an analysis of the likelihood that the
10        initial clean coal facility will commence commercial
11        operation by and be delivering power to the facility's
12        busbar by 2016. To assist in the preparation of its
13        report, the Commission, in consultation with the
14        Agency, may hire one or more experts or consultants,
15        the costs of which shall be paid for by the owner of
16        the initial clean coal facility. The Commission and
17        Agency may begin the process of selecting such experts
18        or consultants prior to receipt of the facility cost
19        report.
20            (iii) General Assembly approval. The proposed
21        sourcing agreements shall not take effect unless,
22        based on the facility cost report and the Commission's
23        report, the General Assembly enacts authorizing
24        legislation approving (A) the projected price, stated
25        in cents per kilowatthour, to be charged for
26        electricity generated by the initial clean coal

 

 

HB5663- 91 -LRB101 19090 SPS 68550 b

1        facility, (B) the projected impact on residential and
2        small business customers' bills over the life of the
3        sourcing agreements, and (C) the maximum allowable
4        return on equity for the project; and
5            (iv) Commission review. If the General Assembly
6        enacts authorizing legislation pursuant to
7        subparagraph (iii) approving a sourcing agreement, the
8        Commission shall, within 90 days of such enactment,
9        complete a review of such sourcing agreement. During
10        such time period, the Commission shall implement any
11        directive of the General Assembly, resolve any
12        disputes between the parties to the sourcing agreement
13        concerning the terms of such agreement, approve the
14        form of such agreement, and issue an order finding that
15        the sourcing agreement is prudent and reasonable.
16        The facility cost report shall be prepared as follows:
17            (A) The facility cost report shall be prepared by
18        duly licensed engineering and construction firms
19        detailing the estimated capital costs payable to one or
20        more contractors or suppliers for the engineering,
21        procurement and construction of the components
22        comprising the initial clean coal facility and the
23        estimated costs of operation and maintenance of the
24        facility. The facility cost report shall include:
25                (i) an estimate of the capital cost of the core
26            plant based on one or more front end engineering

 

 

HB5663- 92 -LRB101 19090 SPS 68550 b

1            and design studies for the gasification island and
2            related facilities. The core plant shall include
3            all civil, structural, mechanical, electrical,
4            control, and safety systems.
5                (ii) an estimate of the capital cost of the
6            balance of the plant, including any capital costs
7            associated with sequestration of carbon dioxide
8            emissions and all interconnects and interfaces
9            required to operate the facility, such as
10            transmission of electricity, construction or
11            backfeed power supply, pipelines to transport
12            substitute natural gas or carbon dioxide, potable
13            water supply, natural gas supply, water supply,
14            water discharge, landfill, access roads, and coal
15            delivery.
16            The quoted construction costs shall be expressed
17        in nominal dollars as of the date that the quote is
18        prepared and shall include capitalized financing costs
19        during construction, taxes, insurance, and other
20        owner's costs, and an assumed escalation in materials
21        and labor beyond the date as of which the construction
22        cost quote is expressed.
23            (B) The front end engineering and design study for
24        the gasification island and the cost study for the
25        balance of plant shall include sufficient design work
26        to permit quantification of major categories of

 

 

HB5663- 93 -LRB101 19090 SPS 68550 b

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

 

 

HB5663- 94 -LRB101 19090 SPS 68550 b

1        quote is expressed.
2            (D) The facility cost report shall also include an
3        analysis of the initial clean coal facility's ability
4        to deliver power and energy into the applicable
5        regional transmission organization markets and an
6        analysis of the expected capacity factor for the
7        initial clean coal facility.
8            (E) Amounts paid to third parties unrelated to the
9        owner or owners of the initial clean coal facility to
10        prepare the core plant construction cost quote,
11        including the front end engineering and design study,
12        and the operating and maintenance cost quote will be
13        reimbursed through Coal Development Bonds.
14        (5) Re-powering and retrofitting coal-fired power
15    plants previously owned by Illinois utilities to qualify as
16    clean coal facilities. During the 2009 procurement
17    planning process and thereafter, the Agency and the
18    Commission shall consider sourcing agreements covering
19    electricity generated by power plants that were previously
20    owned by Illinois utilities and that have been or will be
21    converted into clean coal facilities, as defined by Section
22    1-10 of this Act. Pursuant to such procurement planning
23    process, the owners of such facilities may propose to the
24    Agency sourcing agreements with utilities and alternative
25    retail electric suppliers required to comply with
26    subsection (d) of this Section and item (5) of subsection

 

 

HB5663- 95 -LRB101 19090 SPS 68550 b

1    (d) of Section 16-115 of the Public Utilities Act, covering
2    electricity generated by such facilities. In the case of
3    sourcing agreements that are power purchase agreements,
4    the contract price for electricity sales shall be
5    established on a cost of service basis. In the case of
6    sourcing agreements that are contracts for differences,
7    the contract price from which the reference price is
8    subtracted shall be established on a cost of service basis.
9    The Agency and the Commission may approve any such utility
10    sourcing agreements that do not exceed cost-based
11    benchmarks developed by the procurement administrator, in
12    consultation with the Commission staff, Agency staff and
13    the procurement monitor, subject to Commission review and
14    approval. The Commission shall have authority to inspect
15    all books and records associated with these clean coal
16    facilities during the term of any such contract.
17        (6) Costs incurred under this subsection (d) or
18    pursuant to a contract entered into under this subsection
19    (d) shall be deemed prudently incurred and reasonable in
20    amount and the electric utility shall be entitled to full
21    cost recovery pursuant to the tariffs filed with the
22    Commission.
23    (d-5) Zero emission standard.
24        (1) Beginning with the delivery year commencing on June
25    1, 2017, the Agency shall, for electric utilities that
26    serve at least 100,000 retail customers in this State,

 

 

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1    procure contracts with zero emission facilities that are
2    reasonably capable of generating cost-effective zero
3    emission credits in an amount approximately equal to 16% of
4    the actual amount of electricity delivered by each electric
5    utility to retail customers in the State during calendar
6    year 2014. For an electric utility serving fewer than
7    100,000 retail customers in this State that requested,
8    under Section 16-111.5 of the Public Utilities Act, that
9    the Agency procure power and energy for all or a portion of
10    the utility's Illinois load for the delivery year
11    commencing June 1, 2016, the Agency shall procure contracts
12    with zero emission facilities that are reasonably capable
13    of generating cost-effective zero emission credits in an
14    amount approximately equal to 16% of the portion of power
15    and energy to be procured by the Agency for the utility.
16    The duration of the contracts procured under this
17    subsection (d-5) shall be for a term of 10 years ending May
18    31, 2027. The quantity of zero emission credits to be
19    procured under the contracts shall be all of the zero
20    emission credits generated by the zero emission facility in
21    each delivery year; however, if the zero emission facility
22    is owned by more than one entity, then the quantity of zero
23    emission credits to be procured under the contracts shall
24    be the amount of zero emission credits that are generated
25    from the portion of the zero emission facility that is
26    owned by the winning supplier.

 

 

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1        The 16% value identified in this paragraph (1) is the
2    average of the percentage targets in subparagraph (B) of
3    paragraph (1) of subsection (c) of this Section for the 5
4    delivery years beginning June 1, 2017.
5        The procurement process shall be subject to the
6    following provisions:
7            (A) Those zero emission facilities that intend to
8        participate in the procurement shall submit to the
9        Agency the following eligibility information for each
10        zero emission facility on or before the date
11        established by the Agency:
12                (i) the in-service date and remaining useful
13            life of the zero emission facility;
14                (ii) the amount of power generated annually
15            for each of the years 2005 through 2015, and the
16            projected zero emission credits to be generated
17            over the remaining useful life of the zero emission
18            facility, which shall be used to determine the
19            capability of each facility;
20                (iii) the annual zero emission facility cost
21            projections, expressed on a per megawatthour
22            basis, over the next 6 delivery years, which shall
23            include the following: operation and maintenance
24            expenses; fully allocated overhead costs, which
25            shall be allocated using the methodology developed
26            by the Institute for Nuclear Power Operations;

 

 

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1            fuel expenditures; non-fuel capital expenditures;
2            spent fuel expenditures; a return on working
3            capital; the cost of operational and market risks
4            that could be avoided by ceasing operation; and any
5            other costs necessary for continued operations,
6            provided that "necessary" means, for purposes of
7            this item (iii), that the costs could reasonably be
8            avoided only by ceasing operations of the zero
9            emission facility; and
10                (iv) a commitment to continue operating, for
11            the duration of the contract or contracts executed
12            under the procurement held under this subsection
13            (d-5), the zero emission facility that produces
14            the zero emission credits to be procured in the
15            procurement.
16            The information described in item (iii) of this
17        subparagraph (A) may be submitted on a confidential
18        basis and shall be treated and maintained by the
19        Agency, the procurement administrator, and the
20        Commission as confidential and proprietary and exempt
21        from disclosure under subparagraphs (a) and (g) of
22        paragraph (1) of Section 7 of the Freedom of
23        Information Act. The Office of Attorney General shall
24        have access to, and maintain the confidentiality of,
25        such information pursuant to Section 6.5 of the
26        Attorney General Act.

 

 

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1            (B) The price for each zero emission credit
2        procured under this subsection (d-5) for each delivery
3        year shall be in an amount that equals the Social Cost
4        of Carbon, expressed on a price per megawatthour basis.
5        However, to ensure that the procurement remains
6        affordable to retail customers in this State if
7        electricity prices increase, the price in an
8        applicable delivery year shall be reduced below the
9        Social Cost of Carbon by the amount ("Price
10        Adjustment") by which the market price index for the
11        applicable delivery year exceeds the baseline market
12        price index for the consecutive 12-month period ending
13        May 31, 2016. If the Price Adjustment is greater than
14        or equal to the Social Cost of Carbon in an applicable
15        delivery year, then no payments shall be due in that
16        delivery year. The components of this calculation are
17        defined as follows:
18                (i) Social Cost of Carbon: The Social Cost of
19            Carbon is $16.50 per megawatthour, which is based
20            on the U.S. Interagency Working Group on Social
21            Cost of Carbon's price in the August 2016 Technical
22            Update using a 3% discount rate, adjusted for
23            inflation for each year of the program. Beginning
24            with the delivery year commencing June 1, 2023, the
25            price per megawatthour shall increase by $1 per
26            megawatthour, and continue to increase by an

 

 

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1            additional $1 per megawatthour each delivery year
2            thereafter.
3                (ii) Baseline market price index: The baseline
4            market price index for the consecutive 12-month
5            period ending May 31, 2016 is $31.40 per
6            megawatthour, which is based on the sum of (aa) the
7            average day-ahead energy price across all hours of
8            such 12-month period at the PJM Interconnection
9            LLC Northern Illinois Hub, (bb) 50% multiplied by
10            the Base Residual Auction, or its successor,
11            capacity price for the rest of the RTO zone group
12            determined by PJM Interconnection LLC, divided by
13            24 hours per day, and (cc) 50% multiplied by the
14            Planning Resource Auction, or its successor,
15            capacity price for Zone 4 determined by the
16            Midcontinent Independent System Operator, Inc.,
17            divided by 24 hours per day.
18                (iii) Market price index: The market price
19            index for a delivery year shall be the sum of
20            projected energy prices and projected capacity
21            prices determined as follows:
22                    (aa) Projected energy prices: the
23                projected energy prices for the applicable
24                delivery year shall be calculated once for the
25                year using the forward market price for the PJM
26                Interconnection, LLC Northern Illinois Hub.

 

 

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1                The forward market price shall be calculated as
2                follows: the energy forward prices for each
3                month of the applicable delivery year averaged
4                for each trade date during the calendar year
5                immediately preceding that delivery year to
6                produce a single energy forward price for the
7                delivery year. The forward market price
8                calculation shall use data published by the
9                Intercontinental Exchange, or its successor.
10                    (bb) Projected capacity prices:
11                        (I) For the delivery years commencing
12                    June 1, 2017, June 1, 2018, and June 1,
13                    2019, the projected capacity price shall
14                    be equal to the sum of (1) 50% multiplied
15                    by the Base Residual Auction, or its
16                    successor, price for the rest of the RTO
17                    zone group as determined by PJM
18                    Interconnection LLC, divided by 24 hours
19                    per day and, (2) 50% multiplied by the
20                    resource auction price determined in the
21                    resource auction administered by the
22                    Midcontinent Independent System Operator,
23                    Inc., in which the largest percentage of
24                    load cleared for Local Resource Zone 4,
25                    divided by 24 hours per day, and where such
26                    price is determined by the Midcontinent

 

 

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1                    Independent System Operator, Inc.
2                        (II) For the delivery year commencing
3                    June 1, 2020, and each year thereafter, the
4                    projected capacity price shall be equal to
5                    the sum of (1) 50% multiplied by the Base
6                    Residual Auction, or its successor, price
7                    for the ComEd zone as determined by PJM
8                    Interconnection LLC, divided by 24 hours
9                    per day, and (2) 50% multiplied by the
10                    resource auction price determined in the
11                    resource auction administered by the
12                    Midcontinent Independent System Operator,
13                    Inc., in which the largest percentage of
14                    load cleared for Local Resource Zone 4,
15                    divided by 24 hours per day, and where such
16                    price is determined by the Midcontinent
17                    Independent System Operator, Inc.
18            For purposes of this subsection (d-5):
19                "Rest of the RTO" and "ComEd Zone" shall have
20            the meaning ascribed to them by PJM
21            Interconnection, LLC.
22                "RTO" means regional transmission
23            organization.
24            (C) No later than 45 days after June 1, 2017 (the
25        effective date of Public Act 99-906), the Agency shall
26        publish its proposed zero emission standard

 

 

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1        procurement plan. The plan shall be consistent with the
2        provisions of this paragraph (1) and shall provide that
3        winning bids shall be selected based on public interest
4        criteria that include, but are not limited to,
5        minimizing carbon dioxide emissions that result from
6        electricity consumed in Illinois and minimizing sulfur
7        dioxide, nitrogen oxide, and particulate matter
8        emissions that adversely affect the citizens of this
9        State. In particular, the selection of winning bids
10        shall take into account the incremental environmental
11        benefits resulting from the procurement, such as any
12        existing environmental benefits that are preserved by
13        the procurements held under Public Act 99-906 and would
14        cease to exist if the procurements were not held,
15        including the preservation of zero emission
16        facilities. The plan shall also describe in detail how
17        each public interest factor shall be considered and
18        weighted in the bid selection process to ensure that
19        the public interest criteria are applied to the
20        procurement and given full effect.
21            For purposes of developing the plan, the Agency
22        shall consider any reports issued by a State agency,
23        board, or commission under House Resolution 1146 of the
24        98th General Assembly and paragraph (4) of subsection
25        (d) of this Section, as well as publicly available
26        analyses and studies performed by or for regional

 

 

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1        transmission organizations that serve the State and
2        their independent market monitors.
3            Upon publishing of the zero emission standard
4        procurement plan, copies of the plan shall be posted
5        and made publicly available on the Agency's website.
6        All interested parties shall have 10 days following the
7        date of posting to provide comment to the Agency on the
8        plan. All comments shall be posted to the Agency's
9        website. Following the end of the comment period, but
10        no more than 60 days later than June 1, 2017 (the
11        effective date of Public Act 99-906), the Agency shall
12        revise the plan as necessary based on the comments
13        received and file its zero emission standard
14        procurement plan with the Commission.
15            If the Commission determines that the plan will
16        result in the procurement of cost-effective zero
17        emission credits, then the Commission shall, after
18        notice and hearing, but no later than 45 days after the
19        Agency filed the plan, approve the plan or approve with
20        modification. For purposes of this subsection (d-5),
21        "cost effective" means the projected costs of
22        procuring zero emission credits from zero emission
23        facilities do not cause the limit stated in paragraph
24        (2) of this subsection to be exceeded.
25            (C-5) As part of the Commission's review and
26        acceptance or rejection of the procurement results,

 

 

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1        the Commission shall, in its public notice of
2        successful bidders:
3                (i) identify how the winning bids satisfy the
4            public interest criteria described in subparagraph
5            (C) of this paragraph (1) of minimizing carbon
6            dioxide emissions that result from electricity
7            consumed in Illinois and minimizing sulfur
8            dioxide, nitrogen oxide, and particulate matter
9            emissions that adversely affect the citizens of
10            this State;
11                (ii) specifically address how the selection of
12            winning bids takes into account the incremental
13            environmental benefits resulting from the
14            procurement, including any existing environmental
15            benefits that are preserved by the procurements
16            held under Public Act 99-906 and would have ceased
17            to exist if the procurements had not been held,
18            such as the preservation of zero emission
19            facilities;
20                (iii) quantify the environmental benefit of
21            preserving the resources identified in item (ii)
22            of this subparagraph (C-5), including the
23            following:
24                    (aa) the value of avoided greenhouse gas
25                emissions measured as the product of the zero
26                emission facilities' output over the contract

 

 

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1                term multiplied by the U.S. Environmental
2                Protection Agency eGrid subregion carbon
3                dioxide emission rate and the U.S. Interagency
4                Working Group on Social Cost of Carbon's price
5                in the August 2016 Technical Update using a 3%
6                discount rate, adjusted for inflation for each
7                delivery year; and
8                    (bb) the costs of replacement with other
9                zero carbon dioxide resources, including wind
10                and photovoltaic, based upon the simple
11                average of the following:
12                        (I) the price, or if there is more than
13                    one price, the average of the prices, paid
14                    for renewable energy credits from new
15                    utility-scale wind projects in the
16                    procurement events specified in item (i)
17                    of subparagraph (G) of paragraph (1) of
18                    subsection (c) of this Section; and
19                        (II) the price, or if there is more
20                    than one price, the average of the prices,
21                    paid for renewable energy credits from new
22                    utility-scale solar projects and
23                    brownfield site photovoltaic projects in
24                    the procurement events specified in item
25                    (ii) of subparagraph (G) of paragraph (1)
26                    of subsection (c) of this Section and,

 

 

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1                    after January 1, 2015, renewable energy
2                    credits from photovoltaic distributed
3                    generation projects in procurement events
4                    held under subsection (c) of this Section.
5            Each utility shall enter into binding contractual
6        arrangements with the winning suppliers.
7            The procurement described in this subsection
8        (d-5), including, but not limited to, the execution of
9        all contracts procured, shall be completed no later
10        than May 10, 2017. Based on the effective date of
11        Public Act 99-906, the Agency and Commission may, as
12        appropriate, modify the various dates and timelines
13        under this subparagraph and subparagraphs (C) and (D)
14        of this paragraph (1). The procurement and plan
15        approval processes required by this subsection (d-5)
16        shall be conducted in conjunction with the procurement
17        and plan approval processes required by subsection (c)
18        of this Section and Section 16-111.5 of the Public
19        Utilities Act, to the extent practicable.
20        Notwithstanding whether a procurement event is
21        conducted under Section 16-111.5 of the Public
22        Utilities Act, the Agency shall immediately initiate a
23        procurement process on June 1, 2017 (the effective date
24        of Public Act 99-906).
25            (D) Following the procurement event described in
26        this paragraph (1) and consistent with subparagraph

 

 

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1        (B) of this paragraph (1), the Agency shall calculate
2        the payments to be made under each contract for the
3        next delivery year based on the market price index for
4        that delivery year. The Agency shall publish the
5        payment calculations no later than May 25, 2017 and
6        every May 25 thereafter.
7            (E) Notwithstanding the requirements of this
8        subsection (d-5), the contracts executed under this
9        subsection (d-5) shall provide that the zero emission
10        facility may, as applicable, suspend or terminate
11        performance under the contracts in the following
12        instances:
13                (i) A zero emission facility shall be excused
14            from its performance under the contract for any
15            cause beyond the control of the resource,
16            including, but not restricted to, acts of God,
17            flood, drought, earthquake, storm, fire,
18            lightning, epidemic, war, riot, civil disturbance
19            or disobedience, labor dispute, labor or material
20            shortage, sabotage, acts of public enemy,
21            explosions, orders, regulations or restrictions
22            imposed by governmental, military, or lawfully
23            established civilian authorities, which, in any of
24            the foregoing cases, by exercise of commercially
25            reasonable efforts the zero emission facility
26            could not reasonably have been expected to avoid,

 

 

HB5663- 109 -LRB101 19090 SPS 68550 b

1            and which, by the exercise of commercially
2            reasonable efforts, it has been unable to
3            overcome. In such event, the zero emission
4            facility shall be excused from performance for the
5            duration of the event, including, but not limited
6            to, delivery of zero emission credits, and no
7            payment shall be due to the zero emission facility
8            during the duration of the event.
9                (ii) A zero emission facility shall be
10            permitted to terminate the contract if legislation
11            is enacted into law by the General Assembly that
12            imposes or authorizes a new tax, special
13            assessment, or fee on the generation of
14            electricity, the ownership or leasehold of a
15            generating unit, or the privilege or occupation of
16            such generation, ownership, or leasehold of
17            generation units by a zero emission facility.
18            However, the provisions of this item (ii) do not
19            apply to any generally applicable tax, special
20            assessment or fee, or requirements imposed by
21            federal law.
22                (iii) A zero emission facility shall be
23            permitted to terminate the contract in the event
24            that the resource requires capital expenditures in
25            excess of $40,000,000 that were neither known nor
26            reasonably foreseeable at the time it executed the

 

 

HB5663- 110 -LRB101 19090 SPS 68550 b

1            contract and that a prudent owner or operator of
2            such resource would not undertake.
3                (iv) A zero emission facility shall be
4            permitted to terminate the contract in the event
5            the Nuclear Regulatory Commission terminates the
6            resource's license.
7            (F) If the zero emission facility elects to
8        terminate a contract under subparagraph (E) of this
9        paragraph (1), then the Commission shall reopen the
10        docket in which the Commission approved the zero
11        emission standard procurement plan under subparagraph
12        (C) of this paragraph (1) and, after notice and
13        hearing, enter an order acknowledging the contract
14        termination election if such termination is consistent
15        with the provisions of this subsection (d-5).
16        (2) For purposes of this subsection (d-5), the amount
17    paid per kilowatthour means the total amount paid for
18    electric service expressed on a per kilowatthour basis. For
19    purposes of this subsection (d-5), the total amount paid
20    for electric service includes, without limitation, amounts
21    paid for supply, transmission, distribution, surcharges,
22    and add-on taxes.
23        Notwithstanding the requirements of this subsection
24    (d-5), the contracts executed under this subsection (d-5)
25    shall provide that the total of zero emission credits
26    procured under a procurement plan shall be subject to the

 

 

HB5663- 111 -LRB101 19090 SPS 68550 b

1    limitations of this paragraph (2). For each delivery year,
2    the contractual volume receiving payments in such year
3    shall be reduced for all retail customers based on the
4    amount necessary to limit the net increase that delivery
5    year to the costs of those credits included in the amounts
6    paid by eligible retail customers in connection with
7    electric service to no more than 1.65% of the amount paid
8    per kilowatthour by eligible retail customers during the
9    year ending May 31, 2009. The result of this computation
10    shall apply to and reduce the procurement for all retail
11    customers, and all those customers shall pay the same
12    single, uniform cents per kilowatthour charge under
13    subsection (k) of Section 16-108 of the Public Utilities
14    Act. To arrive at a maximum dollar amount of zero emission
15    credits to be paid for the particular delivery year, the
16    resulting per kilowatthour amount shall be applied to the
17    actual amount of kilowatthours of electricity delivered by
18    the electric utility in the delivery year immediately prior
19    to the procurement, to all retail customers in its service
20    territory. Unpaid contractual volume for any delivery year
21    shall be paid in any subsequent delivery year in which such
22    payments can be made without exceeding the amount specified
23    in this paragraph (2). The calculations required by this
24    paragraph (2) shall be made only once for each procurement
25    plan year. Once the determination as to the amount of zero
26    emission credits to be paid is made based on the

 

 

HB5663- 112 -LRB101 19090 SPS 68550 b

1    calculations set forth in this paragraph (2), no subsequent
2    rate impact determinations shall be made and no adjustments
3    to those contract amounts shall be allowed. All costs
4    incurred under those contracts and in implementing this
5    subsection (d-5) shall be recovered by the electric utility
6    as provided in this Section.
7        No later than June 30, 2019, the Commission shall
8    review the limitation on the amount of zero emission
9    credits procured under this subsection (d-5) and report to
10    the General Assembly its findings as to whether that
11    limitation unduly constrains the procurement of
12    cost-effective zero emission credits.
13        (3) Six years after the execution of a contract under
14    this subsection (d-5), the Agency shall determine whether
15    the actual zero emission credit payments received by the
16    supplier over the 6-year period exceed the Average ZEC
17    Payment. In addition, at the end of the term of a contract
18    executed under this subsection (d-5), or at the time, if
19    any, a zero emission facility's contract is terminated
20    under subparagraph (E) of paragraph (1) of this subsection
21    (d-5), then the Agency shall determine whether the actual
22    zero emission credit payments received by the supplier over
23    the term of the contract exceed the Average ZEC Payment,
24    after taking into account any amounts previously credited
25    back to the utility under this paragraph (3). If the Agency
26    determines that the actual zero emission credit payments

 

 

HB5663- 113 -LRB101 19090 SPS 68550 b

1    received by the supplier over the relevant period exceed
2    the Average ZEC Payment, then the supplier shall credit the
3    difference back to the utility. The amount of the credit
4    shall be remitted to the applicable electric utility no
5    later than 120 days after the Agency's determination, which
6    the utility shall reflect as a credit on its retail
7    customer bills as soon as practicable; however, the credit
8    remitted to the utility shall not exceed the total amount
9    of payments received by the facility under its contract.
10        For purposes of this Section, the Average ZEC Payment
11    shall be calculated by multiplying the quantity of zero
12    emission credits delivered under the contract times the
13    average contract price. The average contract price shall be
14    determined by subtracting the amount calculated under
15    subparagraph (B) of this paragraph (3) from the amount
16    calculated under subparagraph (A) of this paragraph (3), as
17    follows:
18            (A) The average of the Social Cost of Carbon, as
19        defined in subparagraph (B) of paragraph (1) of this
20        subsection (d-5), during the term of the contract.
21            (B) The average of the market price indices, as
22        defined in subparagraph (B) of paragraph (1) of this
23        subsection (d-5), during the term of the contract,
24        minus the baseline market price index, as defined in
25        subparagraph (B) of paragraph (1) of this subsection
26        (d-5).

 

 

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1        If the subtraction yields a negative number, then the
2    Average ZEC Payment shall be zero.
3        (4) Cost-effective zero emission credits procured from
4    zero emission facilities shall satisfy the applicable
5    definitions set forth in Section 1-10 of this Act.
6        (5) The electric utility shall retire all zero emission
7    credits used to comply with the requirements of this
8    subsection (d-5).
9        (6) Electric utilities shall be entitled to recover all
10    of the costs associated with the procurement of zero
11    emission credits through an automatic adjustment clause
12    tariff in accordance with subsection (k) and (m) of Section
13    16-108 of the Public Utilities Act, and the contracts
14    executed under this subsection (d-5) shall provide that the
15    utilities' payment obligations under such contracts shall
16    be reduced if an adjustment is required under subsection
17    (m) of Section 16-108 of the Public Utilities Act.
18        (7) This subsection (d-5) shall become inoperative on
19    January 1, 2028.
20    (e) The draft procurement plans are subject to public
21comment, as required by Section 16-111.5 of the Public
22Utilities Act.
23    (f) The Agency shall submit the final procurement plan to
24the Commission. The Agency shall revise a procurement plan if
25the Commission determines that it does not meet the standards
26set forth in Section 16-111.5 of the Public Utilities Act.

 

 

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1    (g) The Agency shall assess fees to each affected utility
2to recover the costs incurred in preparation of the annual
3procurement plan for the utility.
4    (h) The Agency shall assess fees to each bidder to recover
5the costs incurred in connection with a competitive procurement
6process.
7    (i) A renewable energy credit (including renewable energy
8credits sold, delivered, and purchased under a contract entered
9into pursuant to subsection (c-5) of this Section), carbon
10emission credit, or zero emission credit can only be used once
11to comply with a single portfolio or other standard as set
12forth in subsection (c), subsection (c-5), subsection (d), or
13subsection (d-5) of this Section, respectively. A renewable
14energy credit, carbon emission credit, or zero emission credit
15cannot be used to satisfy the requirements of more than one
16standard. If more than one type of credit is issued for the
17same megawatt hour of energy, only one credit can be used to
18satisfy the requirements of a single standard. After such use,
19the credit must be retired together with any other credits
20issued for the same megawatt hour of energy.
21(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
22101-113, eff. 1-1-20.)
 
23    Section 15. The State Finance Act is amended by adding
24Section 5.930 as follows:
 

 

 

HB5663- 116 -LRB101 19090 SPS 68550 b

1    (30 ILCS 105/5.930 new)
2    Sec. 5.930. The Coal to Solar and Energy Storage Incentive
3and Plant Transition Fund.
 
4    Section 20. The Public Utilities Act is amended by changing
5Sections 16-108 and 16-111.5 as follows:
 
6    (220 ILCS 5/16-108)
7    Sec. 16-108. Recovery of costs associated with the
8provision of delivery and certain other charges services.
9    (a) An electric utility shall file a delivery services
10tariff with the Commission at least 210 days prior to the date
11that it is required to begin offering such services pursuant to
12this Act. An electric utility shall provide the components of
13delivery services that are subject to the jurisdiction of the
14Federal Energy Regulatory Commission at the same prices, terms
15and conditions set forth in its applicable tariff as approved
16or allowed into effect by that Commission. The Commission shall
17otherwise have the authority pursuant to Article IX to review,
18approve, and modify the prices, terms and conditions of those
19components of delivery services not subject to the jurisdiction
20of the Federal Energy Regulatory Commission, including the
21authority to determine the extent to which such delivery
22services should be offered on an unbundled basis. In making any
23such determination the Commission shall consider, at a minimum,
24the effect of additional unbundling on (i) the objective of

 

 

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1just and reasonable rates, (ii) electric utility employees, and
2(iii) the development of competitive markets for electric
3energy services in Illinois.
4    (b) The Commission shall enter an order approving, or
5approving as modified, the delivery services tariff no later
6than 30 days prior to the date on which the electric utility
7must commence offering such services. The Commission may
8subsequently modify such tariff pursuant to this Act.
9    (c) The electric utility's tariffs shall define the classes
10of its customers for purposes of delivery services charges.
11Delivery services shall be priced and made available to all
12retail customers electing delivery services in each such class
13on a nondiscriminatory basis regardless of whether the retail
14customer chooses the electric utility, an affiliate of the
15electric utility, or another entity as its supplier of electric
16power and energy. Charges for delivery services shall be cost
17based, and shall allow the electric utility to recover the
18costs of providing delivery services through its charges to its
19delivery service customers that use the facilities and services
20associated with such costs. Such costs shall include the costs
21of owning, operating and maintaining transmission and
22distribution facilities. The Commission shall also be
23authorized to consider whether, and if so to what extent, the
24following costs are appropriately included in the electric
25utility's delivery services rates: (i) the costs of that
26portion of generation facilities used for the production and

 

 

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1absorption of reactive power in order that retail customers
2located in the electric utility's service area can receive
3electric power and energy from suppliers other than the
4electric utility, and (ii) the costs associated with the use
5and redispatch of generation facilities to mitigate
6constraints on the transmission or distribution system in order
7that retail customers located in the electric utility's service
8area can receive electric power and energy from suppliers other
9than the electric utility. Nothing in this subsection shall be
10construed as directing the Commission to allocate any of the
11costs described in (i) or (ii) that are found to be
12appropriately included in the electric utility's delivery
13services rates to any particular customer group or geographic
14area in setting delivery services rates.
15    (d) The Commission shall establish charges, terms and
16conditions for delivery services that are just and reasonable
17and shall take into account customer impacts when establishing
18such charges. In establishing charges, terms and conditions for
19delivery services, the Commission shall take into account
20voltage level differences. A retail customer shall have the
21option to request to purchase electric service at any delivery
22service voltage reasonably and technically feasible from the
23electric facilities serving that customer's premises provided
24that there are no significant adverse impacts upon system
25reliability or system efficiency. A retail customer shall also
26have the option to request to purchase electric service at any

 

 

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1point of delivery that is reasonably and technically feasible
2provided that there are no significant adverse impacts on
3system reliability or efficiency. Such requests shall not be
4unreasonably denied.
5    (e) Electric utilities shall recover the costs of
6installing, operating or maintaining facilities for the
7particular benefit of one or more delivery services customers,
8including without limitation any costs incurred in complying
9with a customer's request to be served at a different voltage
10level, directly from the retail customer or customers for whose
11benefit the costs were incurred, to the extent such costs are
12not recovered through the charges referred to in subsections
13(c) and (d) of this Section.
14    (f) An electric utility shall be entitled but not required
15to implement transition charges in conjunction with the
16offering of delivery services pursuant to Section 16-104. If an
17electric utility implements transition charges, it shall
18implement such charges for all delivery services customers and
19for all customers described in subsection (h), but shall not
20implement transition charges for power and energy that a retail
21customer takes from cogeneration or self-generation facilities
22located on that retail customer's premises, if such facilities
23meet the following criteria:
24        (i) the cogeneration or self-generation facilities
25    serve a single retail customer and are located on that
26    retail customer's premises (for purposes of this

 

 

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1    subparagraph and subparagraph (ii), an industrial or
2    manufacturing retail customer and a third party contractor
3    that is served by such industrial or manufacturing customer
4    through such retail customer's own electrical distribution
5    facilities under the circumstances described in subsection
6    (vi) of the definition of "alternative retail electric
7    supplier" set forth in Section 16-102, shall be considered
8    a single retail customer);
9        (ii) the cogeneration or self-generation facilities
10    either (A) are sized pursuant to generally accepted
11    engineering standards for the retail customer's electrical
12    load at that premises (taking into account standby or other
13    reliability considerations related to that retail
14    customer's operations at that site) or (B) if the facility
15    is a cogeneration facility located on the retail customer's
16    premises, the retail customer is the thermal host for that
17    facility and the facility has been designed to meet that
18    retail customer's thermal energy requirements resulting in
19    electrical output beyond that retail customer's electrical
20    demand at that premises, comply with the operating and
21    efficiency standards applicable to "qualifying facilities"
22    specified in title 18 Code of Federal Regulations Section
23    292.205 as in effect on the effective date of this
24    amendatory Act of 1999;
25        (iii) the retail customer on whose premises the
26    facilities are located either has an exclusive right to

 

 

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1    receive, and corresponding obligation to pay for, all of
2    the electrical capacity of the facility, or in the case of
3    a cogeneration facility that has been designed to meet the
4    retail customer's thermal energy requirements at that
5    premises, an identified amount of the electrical capacity
6    of the facility, over a minimum 5-year period; and
7        (iv) if the cogeneration facility is sized for the
8    retail customer's thermal load at that premises but exceeds
9    the electrical load, any sales of excess power or energy
10    are made only at wholesale, are subject to the jurisdiction
11    of the Federal Energy Regulatory Commission, and are not
12    for the purpose of circumventing the provisions of this
13    subsection (f).
14If a generation facility located at a retail customer's
15premises does not meet the above criteria, an electric utility
16implementing transition charges shall implement a transition
17charge until December 31, 2006 for any power and energy taken
18by such retail customer from such facility as if such power and
19energy had been delivered by the electric utility. Provided,
20however, that an industrial retail customer that is taking
21power from a generation facility that does not meet the above
22criteria but that is located on such customer's premises will
23not be subject to a transition charge for the power and energy
24taken by such retail customer from such generation facility if
25the facility does not serve any other retail customer and
26either was installed on behalf of the customer and for its own

 

 

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1use prior to January 1, 1997, or is both predominantly fueled
2by byproducts of such customer's manufacturing process at such
3premises and sells or offers an average of 300 megawatts or
4more of electricity produced from such generation facility into
5the wholesale market. Such charges shall be calculated as
6provided in Section 16-102, and shall be collected on each
7kilowatt-hour delivered under a delivery services tariff to a
8retail customer from the date the customer first takes delivery
9services until December 31, 2006 except as provided in
10subsection (h) of this Section. Provided, however, that an
11electric utility, other than an electric utility providing
12service to at least 1,000,000 customers in this State on
13January 1, 1999, shall be entitled to petition for entry of an
14order by the Commission authorizing the electric utility to
15implement transition charges for an additional period ending no
16later than December 31, 2008. The electric utility shall file
17its petition with supporting evidence no earlier than 16
18months, and no later than 12 months, prior to December 31,
192006. The Commission shall hold a hearing on the electric
20utility's petition and shall enter its order no later than 8
21months after the petition is filed. The Commission shall
22determine whether and to what extent the electric utility shall
23be authorized to implement transition charges for an additional
24period. The Commission may authorize the electric utility to
25implement transition charges for some or all of the additional
26period, and shall determine the mitigation factors to be used

 

 

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1in implementing such transition charges; provided, that the
2Commission shall not authorize mitigation factors less than
3110% of those in effect during the 12 months ended December 31,
42006. In making its determination, the Commission shall
5consider the following factors: the necessity to implement
6transition charges for an additional period in order to
7maintain the financial integrity of the electric utility; the
8prudence of the electric utility's actions in reducing its
9costs since the effective date of this amendatory Act of 1997;
10the ability of the electric utility to provide safe, adequate
11and reliable service to retail customers in its service area;
12and the impact on competition of allowing the electric utility
13to implement transition charges for the additional period.
14    (g) The electric utility shall file tariffs that establish
15the transition charges to be paid by each class of customers to
16the electric utility in conjunction with the provision of
17delivery services. The electric utility's tariffs shall define
18the classes of its customers for purposes of calculating
19transition charges. The electric utility's tariffs shall
20provide for the calculation of transition charges on a
21customer-specific basis for any retail customer whose average
22monthly maximum electrical demand on the electric utility's
23system during the 6 months with the customer's highest monthly
24maximum electrical demands equals or exceeds 3.0 megawatts for
25electric utilities having more than 1,000,000 customers, and
26for other electric utilities for any customer that has an

 

 

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1average monthly maximum electrical demand on the electric
2utility's system of one megawatt or more, and (A) for which
3there exists data on the customer's usage during the 3 years
4preceding the date that the customer became eligible to take
5delivery services, or (B) for which there does not exist data
6on the customer's usage during the 3 years preceding the date
7that the customer became eligible to take delivery services, if
8in the electric utility's reasonable judgment there exists
9comparable usage information or a sufficient basis to develop
10such information, and further provided that the electric
11utility can require customers for which an individual
12calculation is made to sign contracts that set forth the
13transition charges to be paid by the customer to the electric
14utility pursuant to the tariff.
15    (h) An electric utility shall also be entitled to file
16tariffs that allow it to collect transition charges from retail
17customers in the electric utility's service area that do not
18take delivery services but that take electric power or energy
19from an alternative retail electric supplier or from an
20electric utility other than the electric utility in whose
21service area the customer is located. Such charges shall be
22calculated, in accordance with the definition of transition
23charges in Section 16-102, for the period of time that the
24customer would be obligated to pay transition charges if it
25were taking delivery services, except that no deduction for
26delivery services revenues shall be made in such calculation,

 

 

HB5663- 125 -LRB101 19090 SPS 68550 b

1and usage data from the customer's class shall be used where
2historical usage data is not available for the individual
3customer. The customer shall be obligated to pay such charges
4on a lump sum basis on or before the date on which the customer
5commences to take service from the alternative retail electric
6supplier or other electric utility, provided, that the electric
7utility in whose service area the customer is located shall
8offer the customer the option of signing a contract pursuant to
9which the customer pays such charges ratably over the period in
10which the charges would otherwise have applied.
11    (i) An electric utility shall be entitled to add to the
12bills of delivery services customers charges pursuant to
13Sections 9-221, 9-222 (except as provided in Section 9-222.1),
14and Section 16-114 of this Act, Section 5-5 of the Electricity
15Infrastructure Maintenance Fee Law, Section 6-5 of the
16Renewable Energy, Energy Efficiency, and Coal Resources
17Development Law of 1997, and Section 13 of the Energy
18Assistance Act.
19    (i-5) An electric utility required to impose the Coal to
20Solar and Energy Storage Initiative Charge provided for in
21subsection (c-5) of Section 1-75 of the Illinois Power Agency
22Act shall add such charge to the bills of its delivery services
23customers pursuant to the terms of a tariff conforming to the
24requirements of subsection (c-5) of Section 1-75 of the
25Illinois Power Agency Act and filed with and approved by the
26Commission. The electric utility shall file its proposed tariff

 

 

HB5663- 126 -LRB101 19090 SPS 68550 b

1with the Commission within 30 days following the effective date
2of this amendatory Act of the 101st General Assembly. Within 30
3days following the date the proposed tariff is filed with the
4Commission, the Commission shall review and approve the
5electric utility's proposed tariff, or direct the electric
6utility to make modifications to conform to the requirements of
7subsection (c-5) of Section 1-75 of the Illinois Power Agency
8Act. The electric utility's tariff shall be placed into effect
9no later than 90 days following the effective date of this
10amendatory Act of the 101st General Assembly. The electric
11utility shall use the funds collected pursuant to the tariff in
12accordance with subsection (c-5) of Section 1-75 of the
13Illinois Power Agency Act, including remitting a portion of
14such funds to the State Treasurer for deposit into the Coal to
15Solar and Energy Storage Incentive and Plant Transition Fund as
16provided for in subsection (c-5) of Section 1-75 of the
17Illinois Power Agency Act.
18    (j) If a retail customer that obtains electric power and
19energy from cogeneration or self-generation facilities
20installed for its own use on or before January 1, 1997,
21subsequently takes service from an alternative retail electric
22supplier or an electric utility other than the electric utility
23in whose service area the customer is located for any portion
24of the customer's electric power and energy requirements
25formerly obtained from those facilities (including that amount
26purchased from the utility in lieu of such generation and not

 

 

HB5663- 127 -LRB101 19090 SPS 68550 b

1as standby power purchases, under a cogeneration displacement
2tariff in effect as of the effective date of this amendatory
3Act of 1997), the transition charges otherwise applicable
4pursuant to subsections (f), (g), or (h) of this Section shall
5not be applicable in any year to that portion of the customer's
6electric power and energy requirements formerly obtained from
7those facilities, provided, that for purposes of this
8subsection (j), such portion shall not exceed the average
9number of kilowatt-hours per year obtained from the
10cogeneration or self-generation facilities during the 3 years
11prior to the date on which the customer became eligible for
12delivery services, except as provided in subsection (f) of
13Section 16-110.
14    (k) The electric utility shall be entitled to recover
15through tariffed charges all of the costs associated with the
16purchase of zero emission credits from zero emission facilities
17to meet the requirements of subsection (d-5) of Section 1-75 of
18the Illinois Power Agency Act. Such costs shall include the
19costs of procuring the zero emission credits, as well as the
20reasonable costs that the utility incurs as part of the
21procurement processes and to implement and comply with plans
22and processes approved by the Commission under such subsection
23(d-5). The costs shall be allocated across all retail customers
24through a single, uniform cents per kilowatt-hour charge
25applicable to all retail customers, which shall appear as a
26separate line item on each customer's bill. Beginning June 1,

 

 

HB5663- 128 -LRB101 19090 SPS 68550 b

12017, the electric utility shall be entitled to recover through
2tariffed charges all of the costs associated with the purchase
3of renewable energy resources to meet the renewable energy
4resource standards of subsection (c) of Section 1-75 of the
5Illinois Power Agency Act, under procurement plans as approved
6in accordance with that Section and Section 16-111.5 of this
7Act. Such costs shall include the costs of procuring the
8renewable energy resources, as well as the reasonable costs
9that the utility incurs as part of the procurement processes
10and to implement and comply with plans and processes approved
11by the Commission under such Sections. The costs associated
12with the purchase of renewable energy resources shall be
13allocated across all retail customers in proportion to the
14amount of renewable energy resources the utility procures for
15such customers through a single, uniform cents per
16kilowatt-hour charge applicable to such retail customers,
17which shall appear as a separate line item on each such
18customer's bill.
19    Notwithstanding whether the Commission has approved the
20initial long-term renewable resources procurement plan as of
21June 1, 2017, an electric utility shall place new tariffed
22charges into effect beginning with the June 2017 monthly
23billing period, to the extent practicable, to begin recovering
24the costs of procuring renewable energy resources, as those
25charges are calculated under the limitations described in
26subparagraph (E) of paragraph (1) of subsection (c) of Section

 

 

HB5663- 129 -LRB101 19090 SPS 68550 b

11-75 of the Illinois Power Agency Act. Notwithstanding the date
2on which the utility places such new tariffed charges into
3effect, the utility shall be permitted to collect the charges
4under such tariff as if the tariff had been in effect beginning
5with the first day of the June 2017 monthly billing period. For
6the delivery years commencing June 1, 2017, June 1, 2018, and
7June 1, 2019, the electric utility shall deposit into a
8separate interest bearing account of a financial institution
9the monies collected under the tariffed charges. Any interest
10earned shall be credited back to retail customers under the
11reconciliation proceeding provided for in this subsection (k),
12provided that the electric utility shall first be reimbursed
13from the interest for the administrative costs that it incurs
14to administer and manage the account. Any taxes due on the
15funds in the account, or interest earned on it, will be paid
16from the account or, if insufficient monies are available in
17the account, from the monies collected under the tariffed
18charges to recover the costs of procuring renewable energy
19resources. Monies deposited in the account shall be subject to
20the review, reconciliation, and true-up process described in
21this subsection (k) that is applicable to the funds collected
22and costs incurred for the procurement of renewable energy
23resources.
24    The electric utility shall be entitled to recover all of
25the costs identified in this subsection (k) through automatic
26adjustment clause tariffs applicable to all of the utility's

 

 

HB5663- 130 -LRB101 19090 SPS 68550 b

1retail customers that allow the electric utility to adjust its
2tariffed charges consistent with this subsection (k). The
3determination as to whether any excess funds were collected
4during a given delivery year for the purchase of renewable
5energy resources, and the crediting of any excess funds back to
6retail customers, shall not be made until after the close of
7the delivery year, which will ensure that the maximum amount of
8funds is available to implement the approved long-term
9renewable resources procurement plan during a given delivery
10year. The electric utility's collections under such automatic
11adjustment clause tariffs to recover the costs of renewable
12energy resources and zero emission credits from zero emission
13facilities shall be subject to separate annual review,
14reconciliation, and true-up against actual costs by the
15Commission under a procedure that shall be specified in the
16electric utility's automatic adjustment clause tariffs and
17that shall be approved by the Commission in connection with its
18approval of such tariffs. The procedure shall provide that any
19difference between the electric utility's collections under
20the automatic adjustment charges for an annual period and the
21electric utility's actual costs of renewable energy resources
22and zero emission credits from zero emission facilities for
23that same annual period shall be refunded to or collected from,
24as applicable, the electric utility's retail customers in
25subsequent periods.
26    Nothing in this subsection (k) is intended to affect,

 

 

HB5663- 131 -LRB101 19090 SPS 68550 b

1limit, or change the right of the electric utility to recover
2the costs associated with the procurement of renewable energy
3resources for periods commencing before, on, or after June 1,
42017, as otherwise provided in the Illinois Power Agency Act.
5    Notwithstanding anything to the contrary, the Commission
6shall not conduct an annual review, reconciliation, and true-up
7associated with renewable energy resources' collections and
8costs for the delivery years commencing June 1, 2017, June 1,
92018, June 1, 2019, and June 1, 2020, and shall instead conduct
10a single review, reconciliation, and true-up associated with
11renewable energy resources' collections and costs for the
124-year period beginning June 1, 2017 and ending May 31, 2021,
13provided that the review, reconciliation, and true-up shall not
14be initiated until after August 31, 2021. During the 4-year
15period, the utility shall be permitted to collect and retain
16funds under this subsection (k) and to purchase renewable
17energy resources under an approved long-term renewable
18resources procurement plan using those funds regardless of the
19delivery year in which the funds were collected during the
204-year period.
21    If the amount of funds collected during the delivery year
22commencing June 1, 2017, exceeds the costs incurred during that
23delivery year, then up to half of this excess amount, as
24calculated on June 1, 2018, may be used to fund the programs
25under subsection (b) of Section 1-56 of the Illinois Power
26Agency Act in the same proportion the programs are funded under

 

 

HB5663- 132 -LRB101 19090 SPS 68550 b

1that subsection (b). However, any amount identified under this
2subsection (k) to fund programs under subsection (b) of Section
31-56 of the Illinois Power Agency Act shall be reduced if it
4exceeds the funding shortfall. For purposes of this Section,
5"funding shortfall" means the difference between $200,000,000
6and the amount appropriated by the General Assembly to the
7Illinois Power Agency Renewable Energy Resources Fund during
8the period that commences on the effective date of this
9amendatory act of the 99th General Assembly and ends on August
101, 2018.
11    If the amount of funds collected during the delivery year
12commencing June 1, 2018, exceeds the costs incurred during that
13delivery year, then up to half of this excess amount, as
14calculated on June 1, 2019, may be used to fund the programs
15under subsection (b) of Section 1-56 of the Illinois Power
16Agency Act in the same proportion the programs are funded under
17that subsection (b). However, any amount identified under this
18subsection (k) to fund programs under subsection (b) of Section
191-56 of the Illinois Power Agency Act shall be reduced if it
20exceeds the funding shortfall.
21    If the amount of funds collected during the delivery year
22commencing June 1, 2019, exceeds the costs incurred during that
23delivery year, then up to half of this excess amount, as
24calculated on June 1, 2020, may be used to fund the programs
25under subsection (b) of Section 1-56 of the Illinois Power
26Agency Act in the same proportion the programs are funded under

 

 

HB5663- 133 -LRB101 19090 SPS 68550 b

1that subsection (b). However, any amount identified under this
2subsection (k) to fund programs under subsection (b) of Section
31-56 of the Illinois Power Agency Act shall be reduced if it
4exceeds the funding shortfall.
5    The funding available under this subsection (k), if any,
6for the programs described under subsection (b) of Section 1-56
7of the Illinois Power Agency Act shall not reduce the amount of
8funding for the programs described in subparagraph (O) of
9paragraph (1) of subsection (c) of Section 1-75 of the Illinois
10Power Agency Act. If funding is available under this subsection
11(k) for programs described under subsection (b) of Section 1-56
12of the Illinois Power Agency Act, then the long-term renewable
13resources plan shall provide for the Agency to procure
14contracts in an amount that does not exceed the funding, and
15the contracts approved by the Commission shall be executed by
16the applicable utility or utilities.
17    (l) A utility that has terminated any contract executed
18under subsection (d-5) of Section 1-75 of the Illinois Power
19Agency Act shall be entitled to recover any remaining balance
20associated with the purchase of zero emission credits prior to
21such termination, and such utility shall also apply a credit to
22its retail customer bills in the event of any over-collection.
23        (m)(1) An electric utility that recovers its costs of
24    procuring zero emission credits from zero emission
25    facilities through a cents-per-kilowatthour charge under
26    to subsection (k) of this Section shall be subject to the

 

 

HB5663- 134 -LRB101 19090 SPS 68550 b

1    requirements of this subsection (m). Notwithstanding
2    anything to the contrary, such electric utility shall,
3    beginning on April 30, 2018, and each April 30 thereafter
4    until April 30, 2026, calculate whether any reduction must
5    be applied to such cents-per-kilowatthour charge that is
6    paid by retail customers of the electric utility that are
7    exempt from subsections (a) through (j) of Section 8-103B
8    of this Act under subsection (l) of Section 8-103B. Such
9    charge shall be reduced for such customers for the next
10    delivery year commencing on June 1 based on the amount
11    necessary, if any, to limit the annual estimated average
12    net increase for the prior calendar year due to the future
13    energy investment costs to no more than 1.3% of 5.98 cents
14    per kilowatt-hour, which is the average amount paid per
15    kilowatthour for electric service during the year ending
16    December 31, 2015 by Illinois industrial retail customers,
17    as reported to the Edison Electric Institute.
18        The calculations required by this subsection (m) shall
19    be made only once for each year, and no subsequent rate
20    impact determinations shall be made.
21        (2) For purposes of this Section, "future energy
22    investment costs" shall be calculated by subtracting the
23    cents-per-kilowatthour charge identified in subparagraph
24    (A) of this paragraph (2) from the sum of the
25    cents-per-kilowatthour charges identified in subparagraph
26    (B) of this paragraph (2):

 

 

HB5663- 135 -LRB101 19090 SPS 68550 b

1            (A) The cents-per-kilowatthour charge identified
2        in the electric utility's tariff placed into effect
3        under Section 8-103 of the Public Utilities Act that,
4        on December 1, 2016, was applicable to those retail
5        customers that are exempt from subsections (a) through
6        (j) of Section 8-103B of this Act under subsection (l)
7        of Section 8-103B.
8            (B) The sum of the following
9        cents-per-kilowatthour charges applicable to those
10        retail customers that are exempt from subsections (a)
11        through (j) of Section 8-103B of this Act under
12        subsection (l) of Section 8-103B, provided that if one
13        or more of the following charges has been in effect and
14        applied to such customers for more than one calendar
15        year, then each charge shall be equal to the average of
16        the charges applied over a period that commences with
17        the calendar year ending December 31, 2017 and ends
18        with the most recently completed calendar year prior to
19        the calculation required by this subsection (m):
20                (i) the cents-per-kilowatthour charge to
21            recover the costs incurred by the utility under
22            subsection (d-5) of Section 1-75 of the Illinois
23            Power Agency Act, adjusted for any reductions
24            required under this subsection (m); and
25                (ii) the cents-per-kilowatthour charge to
26            recover the costs incurred by the utility under

 

 

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1            Section 16-107.6 of the Public Utilities Act.
2            If no charge was applied for a given calendar year
3        under item (i) or (ii) of this subparagraph (B), then
4        the value of the charge for that year shall be zero.
5        (3) If a reduction is required by the calculation
6    performed under this subsection (m), then the amount of the
7    reduction shall be multiplied by the number of years
8    reflected in the averages calculated under subparagraph
9    (B) of paragraph (2) of this subsection (m). Such reduction
10    shall be applied to the cents-per-kilowatthour charge that
11    is applicable to those retail customers that are exempt
12    from subsections (a) through (j) of Section 8-103B of this
13    Act under subsection (l) of Section 8-103B beginning with
14    the next delivery year commencing after the date of the
15    calculation required by this subsection (m).
16        (4) The electric utility shall file a notice with the
17    Commission on May 1 of 2018 and each May 1 thereafter until
18    May 1, 2026 containing the reduction, if any, which must be
19    applied for the delivery year which begins in the year of
20    the filing. The notice shall contain the calculations made
21    pursuant to this Section. By October 1 of each year
22    beginning in 2018, each electric utility shall notify the
23    Commission if it appears, based on an estimate of the
24    calculation required in this subsection (m), that a
25    reduction will be required in the next year.
26(Source: P.A. 99-906, eff. 6-1-17.)
 

 

 

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1    (220 ILCS 5/16-111.5)
2    Sec. 16-111.5. Provisions relating to procurement.
3    (a) An electric utility that on December 31, 2005 served at
4least 100,000 customers in Illinois shall procure power and
5energy for its eligible retail customers in accordance with the
6applicable provisions set forth in Section 1-75 of the Illinois
7Power Agency Act and this Section. Beginning with the delivery
8year commencing on June 1, 2017, such electric utility shall
9also procure zero emission credits from zero emission
10facilities in accordance with the applicable provisions set
11forth in Section 1-75 of the Illinois Power Agency Act, and,
12for years beginning on or after June 1, 2017, the utility shall
13procure renewable energy resources in accordance with the
14applicable provisions set forth in Section 1-75 of the Illinois
15Power Agency Act and this Section. A small multi-jurisdictional
16electric utility that on December 31, 2005 served less than
17100,000 customers in Illinois may elect to procure power and
18energy for all or a portion of its eligible Illinois retail
19customers in accordance with the applicable provisions set
20forth in this Section and Section 1-75 of the Illinois Power
21Agency Act. This Section shall not apply to a small
22multi-jurisdictional utility until such time as a small
23multi-jurisdictional utility requests the Illinois Power
24Agency to prepare a procurement plan for its eligible retail
25customers. "Eligible retail customers" for the purposes of this

 

 

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1Section means those retail customers that purchase power and
2energy from the electric utility under fixed-price bundled
3service tariffs, other than those retail customers whose
4service is declared or deemed competitive under Section 16-113
5and those other customer groups specified in this Section,
6including self-generating customers, customers electing hourly
7pricing, or those customers who are otherwise ineligible for
8fixed-price bundled tariff service. For those customers that
9are excluded from the procurement plan's electric supply
10service requirements, and the utility shall procure any supply
11requirements, including capacity, ancillary services, and
12hourly priced energy, in the applicable markets as needed to
13serve those customers, provided that the utility may include in
14its procurement plan load requirements for the load that is
15associated with those retail customers whose service has been
16declared or deemed competitive pursuant to Section 16-113 of
17this Act to the extent that those customers are purchasing
18power and energy during one of the transition periods
19identified in subsection (b) of Section 16-113 of this Act.
20    (b) A procurement plan shall be prepared for each electric
21utility consistent with the applicable requirements of the
22Illinois Power Agency Act and this Section. For purposes of
23this Section, Illinois electric utilities that are affiliated
24by virtue of a common parent company are considered to be a
25single electric utility. Small multi-jurisdictional utilities
26may request a procurement plan for a portion of or all of its

 

 

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

 

 

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

 

 

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1        shall be procured whenever the cost is lower than
2        procuring comparable capacity products, provided that
3        such products shall:
4                (A) be procured by a demand-response provider
5            from those retail customers included in the plan's
6            electric supply service requirements;
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        (5) Long-Term Renewable Resources Procurement Plan.
7    The Agency shall prepare a long-term renewable resources
8    procurement plan for the procurement of renewable energy
9    credits under Sections 1-56 and 1-75 of the Illinois Power
10    Agency Act for delivery beginning in the 2017 delivery
11    year.
12            (i) The initial long-term renewable resources
13        procurement plan and all subsequent revisions shall be
14        subject to review and approval by the Commission. For
15        the purposes of this Section, "delivery year" has the
16        same meaning as in Section 1-10 of the Illinois Power
17        Agency Act. For purposes of this Section, "Agency"
18        shall mean the Illinois Power Agency.
19            (ii) The long-term renewable resources planning
20        process shall be conducted as follows:
21                (A) Electric utilities shall provide a range
22            of load forecasts to the Illinois Power Agency
23            within 45 days of the Agency's request for
24            forecasts, which request shall specify the length
25            and conditions for the forecasts including, but
26            not limited to, the quantity of distributed

 

 

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1            generation expected to be interconnected for each
2            year.
3                (B) The Agency shall publish for comment the
4            initial long-term renewable resources procurement
5            plan no later than 120 days after the effective
6            date of this amendatory Act of the 99th General
7            Assembly and shall review, and may revise, the plan
8            at least every 2 years thereafter. To the extent
9            practicable, the Agency shall review and propose
10            any revisions to the long-term renewable energy
11            resources procurement plan in conjunction with the
12            Agency's other planning and approval processes
13            conducted under this Section. The initial
14            long-term renewable resources procurement plan
15            shall:
16                    (aa) Identify the procurement programs and
17                competitive procurement events consistent with
18                the applicable requirements of the Illinois
19                Power Agency Act and shall be designed to
20                achieve the goals set forth in subsection (c)
21                of Section 1-75 of that Act.
22                    (bb) Include a schedule for procurements
23                for renewable energy credits from
24                utility-scale wind projects, utility-scale
25                solar projects, and brownfield site
26                photovoltaic projects consistent with

 

 

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1                subparagraph (G) of paragraph (1) of
2                subsection (c) of Section 1-75 of the Illinois
3                Power Agency Act.
4                    (cc) Identify the process whereby the
5                Agency will submit to the Commission for review
6                and approval the proposed contracts to
7                implement the programs required by such plan.
8                Copies of the initial long-term renewable
9            resources procurement plan and all subsequent
10            revisions shall be posted and made publicly
11            available on the Agency's and Commission's
12            websites, and copies shall also be provided to each
13            affected electric utility. An affected utility and
14            other interested parties shall have 45 days
15            following the date of posting to provide comment to
16            the Agency on the initial long-term renewable
17            resources procurement plan and all subsequent
18            revisions. All comments submitted to the Agency
19            shall be specific, supported by data or other
20            detailed analyses, and, if objecting to all or a
21            portion of the procurement plan, accompanied by
22            specific alternative wording or proposals. All
23            comments shall be posted on the Agency's and
24            Commission's websites. During this 45-day comment
25            period, the Agency shall hold at least one public
26            hearing within each utility's service area that is

 

 

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1            subject to the requirements of this paragraph (5)
2            for the purpose of receiving public comment.
3            Within 21 days following the end of the 45-day
4            review period, the Agency may revise the long-term
5            renewable resources procurement plan based on the
6            comments received and shall file the plan with the
7            Commission for review and approval.
8                (C) Within 14 days after the filing of the
9            initial long-term renewable resources procurement
10            plan or any subsequent revisions, any person
11            objecting to the plan may file an objection with
12            the Commission. Within 21 days after the filing of
13            the plan, the Commission shall determine whether a
14            hearing is necessary. The Commission shall enter
15            its order confirming or modifying the initial
16            long-term renewable resources procurement plan or
17            any subsequent revisions within 120 days after the
18            filing of the plan by the Illinois Power Agency.
19                (D) The Commission shall approve the initial
20            long-term renewable resources procurement plan and
21            any subsequent revisions, including expressly the
22            forecast used in the plan and taking into account
23            that funding will be limited to the amount of
24            revenues actually collected by the utilities, if
25            the Commission determines that the plan will
26            reasonably and prudently accomplish the

 

 

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1            requirements of Section 1-56 and subsection (c) of
2            Section 1-75 of the Illinois Power Agency Act. The
3            Commission shall also approve the process for the
4            submission, review, and approval of the proposed
5            contracts to procure renewable energy credits or
6            implement the programs authorized by the
7            Commission pursuant to a long-term renewable
8            resources procurement plan approved under this
9            Section.
10            (iii) The Agency or third parties contracted by the
11        Agency shall implement all programs authorized by the
12        Commission in an approved long-term renewable
13        resources procurement plan without further review and
14        approval by the Commission. Third parties shall not
15        begin implementing any programs or receive any payment
16        under this Section until the Commission has approved
17        the contract or contracts under the process authorized
18        by the Commission in item (D) of subparagraph (ii) of
19        paragraph (5) of this subsection (b) and the third
20        party and the Agency or utility, as applicable, have
21        executed the contract. For those renewable energy
22        credits subject to procurement through a competitive
23        bid process under the plan or under the initial forward
24        procurements for wind and solar resources described in
25        subparagraph (G) of paragraph (1) of subsection (c) of
26        Section 1-75 of the Illinois Power Agency Act, the

 

 

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1        Agency shall follow the procurement process specified
2        in the provisions relating to electricity procurement
3        in subsections (e) through (i) of this Section.
4            (iv) An electric utility shall recover its costs
5        associated with the procurement of renewable energy
6        credits under this Section and pursuant to subsection
7        (c-5) of Section 1-75 of the Illinois Power Agency Act
8        through an automatic adjustment clause tariff under
9        subsection (k) or subsection (i-5) of Section 16-108,
10        as applicable, of Section 16-108 of this Act. A utility
11        shall not be required to advance any payment or pay any
12        amounts under this Section that exceed the actual
13        amount of revenues collected by the utility under
14        paragraph (6) of subsection (c) of Section 1-75 of the
15        Illinois Power Agency Act, subsection (c-5) of Section
16        1-75 of the Illinois Power Agency Act, and subsection
17        (k) or subsection (i-5) of Section 16-108, as
18        applicable, of Section 16-108 of this Act, and
19        contracts executed under this Section shall expressly
20        incorporate this limitation.
21            (v) For the public interest, safety, and welfare,
22        the Agency and the Commission may adopt rules to carry
23        out the provisions of this Section on an emergency
24        basis immediately following the effective date of this
25        amendatory Act of the 99th General Assembly.
26            (vi) On or before July 1 of each year, the

 

 

HB5663- 149 -LRB101 19090 SPS 68550 b

1        Commission shall hold an informal hearing for the
2        purpose of receiving comments on the prior year's
3        procurement process and any recommendations for
4        change.
5    (b-5) An electric utility that as of January 1, 2019 served
6more than 300,000 retail customers in this State shall purchase
7renewable energy credits from new renewable energy resources
8constructed at or adjacent to the sites of coal-fueled electric
9generating facilities in this State in accordance with
10subsection (c-5) of Section 1-75 of the Illinois Power Agency
11Act. Except as expressly provided in this Section, the plans
12and procedures for such procurements shall not be included in
13the procurement plans provided for in this Section, but rather
14shall be conducted and implemented solely in accordance with
15subsection (c-5) of Section 1-75 of the Illinois Power Agency
16Act.
17    (c) The provisions of this subsection (c) shall not apply
18to procurements conducted pursuant to subsection (c-5) of
19Section 1-75 of the Illinois Power Agency Act. However, the
20Agency may retain a procurement administrator to assist the
21Agency in planning and carrying out the procurement events and
22implementing the other requirements specified in subsection
23(c-5) of Section 1-75 of the Illinois Power Agency Act, with
24the costs incurred by the Agency for the procurement
25administrator to be recovered through fees charged to
26applicants for selection to sell and deliver renewable energy

 

 

HB5663- 150 -LRB101 19090 SPS 68550 b

1credits to electric utilities pursuant to such subsection
2(c-5). The procurement process set forth in Section 1-75 of the
3Illinois Power Agency Act and subsection (e) of this Section
4shall be administered by a procurement administrator and
5monitored by a procurement monitor.
6        (1) The procurement administrator shall:
7            (i) design the final procurement process in
8        accordance with Section 1-75 of the Illinois Power
9        Agency Act and subsection (e) of this Section following
10        Commission approval of the procurement plan;
11            (ii) develop benchmarks in accordance with
12            subsection (e)(3) to be used to evaluate bids;
13            these benchmarks shall be submitted to the
14            Commission for review and approval on a
15            confidential basis prior to the procurement event;
16            (iii) serve as the interface between the electric
17        utility and suppliers;
18            (iv) manage the bidder pre-qualification and
19        registration process;
20            (v) obtain the electric utilities' agreement to
21        the final form of all supply contracts and credit
22        collateral agreements;
23            (vi) administer the request for proposals process;
24            (vii) have the discretion to negotiate to
25        determine whether bidders are willing to lower the
26        price of bids that meet the benchmarks approved by the

 

 

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

 

 

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

 

 

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

 

 

HB5663- 154 -LRB101 19090 SPS 68550 b

1    Commission's websites. During this 30-day comment period,
2    the Agency shall hold at least one public hearing within
3    each utility's service area for the purpose of receiving
4    public comment on the procurement plan. Within 14 days
5    following the end of the 30-day review period, the Agency
6    shall revise the procurement plan as necessary based on the
7    comments received and file the procurement plan with the
8    Commission and post the procurement plan on the websites.
9        (3) Within 5 days after the filing of the procurement
10    plan, any person objecting to the procurement plan shall
11    file an objection with the Commission. Within 10 days after
12    the filing, the Commission shall determine whether a
13    hearing is necessary. The Commission shall enter its order
14    confirming or modifying the procurement plan within 90 days
15    after the filing of the procurement plan by the Illinois
16    Power Agency.
17        (4) The Commission shall approve the procurement plan,
18    including expressly the forecast used in the procurement
19    plan, if the Commission determines that it will ensure
20    adequate, reliable, affordable, efficient, and
21    environmentally sustainable electric service at the lowest
22    total cost over time, taking into account any benefits of
23    price stability.
24        (4.5) The Commission shall review and approve the
25    Agency's recommendation for the selection of applicants to
26    enter into long-term contracts for the sale and delivery of

 

 

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1    renewable energy credits from new renewable energy
2    resources to be constructed at or adjacent to the sites of
3    coal-fueled electric generating facilities in this State
4    in accordance with the provisions of subsection (c-5) of
5    Section 1-75 of the Illinois Power Agency Act, if the
6    Commission determines that the applicants recommended by
7    the Agency for selection, the proposed new renewable energy
8    resources to be constructed, the amounts of renewable
9    energy credits to be delivered pursuant to such contracts,
10    and the other terms of the contracts, are consistent with
11    the requirements of subsection (c-5) of Section 1-75 of the
12    Illinois Power Agency Act.
13    (e) The procurement process shall include each of the
14following components:
15        (1) Solicitation, pre-qualification, and registration
16    of bidders. The procurement administrator shall
17    disseminate information to potential bidders to promote a
18    procurement event, notify potential bidders that the
19    procurement administrator may enter into a post-bid price
20    negotiation with bidders that meet the applicable
21    benchmarks, provide supply requirements, and otherwise
22    explain the competitive procurement process. In addition
23    to such other publication as the procurement administrator
24    determines is appropriate, this information shall be
25    posted on the Illinois Power Agency's and the Commission's
26    websites. The procurement administrator shall also

 

 

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1    administer the prequalification process, including
2    evaluation of credit worthiness, compliance with
3    procurement rules, and agreement to the standard form
4    contract developed pursuant to paragraph (2) of this
5    subsection (e). The procurement administrator shall then
6    identify and register bidders to participate in the
7    procurement event.
8        (2) Standard contract forms and credit terms and
9    instruments. The procurement administrator, in
10    consultation with the utilities, the Commission, and other
11    interested parties and subject to Commission oversight,
12    shall develop and provide standard contract forms for the
13    supplier contracts that meet generally accepted industry
14    practices. Standard credit terms and instruments that meet
15    generally accepted industry practices shall be similarly
16    developed. The procurement administrator shall make
17    available to the Commission all written comments it
18    receives on the contract forms, credit terms, or
19    instruments. If the procurement administrator cannot reach
20    agreement with the applicable electric utility as to the
21    contract terms and conditions, the procurement
22    administrator must notify the Commission of any disputed
23    terms and the Commission shall resolve the dispute. The
24    terms of the contracts shall not be subject to negotiation
25    by winning bidders, and the bidders must agree to the terms
26    of the contract in advance so that winning bids are

 

 

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1    selected solely on the basis of price.
2        (3) Establishment of a market-based price benchmark.
3    As part of the development of the procurement process, the
4    procurement administrator, in consultation with the
5    Commission staff, Agency staff, and the procurement
6    monitor, shall establish benchmarks for evaluating the
7    final prices in the contracts for each of the products that
8    will be procured through the procurement process. The
9    benchmarks shall be based on price data for similar
10    products for the same delivery period and same delivery
11    hub, or other delivery hubs after adjusting for that
12    difference. The price benchmarks may also be adjusted to
13    take into account differences between the information
14    reflected in the underlying data sources and the specific
15    products and procurement process being used to procure
16    power for the Illinois utilities. The benchmarks shall be
17    confidential but shall be provided to, and will be subject
18    to Commission review and approval, prior to a procurement
19    event.
20        (4) Request for proposals competitive procurement
21    process. The procurement administrator shall design and
22    issue a request for proposals to supply electricity in
23    accordance with each utility's procurement plan, as
24    approved by the Commission. The request for proposals shall
25    set forth a procedure for sealed, binding commitment
26    bidding with pay-as-bid settlement, and provision for

 

 

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1    selection of bids on the basis of price.
2        (5) A plan for implementing contingencies in the event
3    of supplier default or failure of the procurement process
4    to fully meet the expected load requirement due to
5    insufficient supplier participation, Commission rejection
6    of results, or any other cause.
7            (i) Event of supplier default: In the event of
8        supplier default, the utility shall review the
9        contract of the defaulting supplier to determine if the
10        amount of supply is 200 megawatts or greater, and if
11        there are more than 60 days remaining of the contract
12        term. If both of these conditions are met, and the
13        default results in termination of the contract, the
14        utility shall immediately notify the Illinois Power
15        Agency that a request for proposals must be issued to
16        procure replacement power, and the procurement
17        administrator shall run an additional procurement
18        event. If the contracted supply of the defaulting
19        supplier is less than 200 megawatts or there are less
20        than 60 days remaining of the contract term, the
21        utility shall procure power and energy from the
22        applicable regional transmission organization market,
23        including ancillary services, capacity, and day-ahead
24        or real time energy, or both, for the duration of the
25        contract term to replace the contracted supply;
26        provided, however, that if a needed product is not

 

 

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1        available through the regional transmission
2        organization market it shall be purchased from the
3        wholesale market.
4            (ii) Failure of the procurement process to fully
5        meet the expected load requirement: If the procurement
6        process fails to fully meet the expected load
7        requirement due to insufficient supplier participation
8        or due to a Commission rejection of the procurement
9        results, the procurement administrator, the
10        procurement monitor, and the Commission staff shall
11        meet within 10 days to analyze potential causes of low
12        supplier interest or causes for the Commission
13        decision. If changes are identified that would likely
14        result in increased supplier participation, or that
15        would address concerns causing the Commission to
16        reject the results of the prior procurement event, the
17        procurement administrator may implement those changes
18        and rerun the request for proposals process according
19        to a schedule determined by those parties and
20        consistent with Section 1-75 of the Illinois Power
21        Agency Act and this subsection. In any event, a new
22        request for proposals process shall be implemented by
23        the procurement administrator within 90 days after the
24        determination that the procurement process has failed
25        to fully meet the expected load requirement.
26            (iii) In all cases where there is insufficient

 

 

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1        supply provided under contracts awarded through the
2        procurement process to fully meet the electric
3        utility's load requirement, the utility shall meet the
4        load requirement by procuring power and energy from the
5        applicable regional transmission organization market,
6        including ancillary services, capacity, and day-ahead
7        or real time energy, or both; provided, however, that
8        if a needed product is not available through the
9        regional transmission organization market it shall be
10        purchased from the wholesale market.
11        (6) The procurement processes process described in
12    this subsection and in subsection (c-5) of Section 1-75 of
13    the Illinois Power Agency Act are is exempt from the
14    requirements of the Illinois Procurement Code, pursuant to
15    Section 20-10 of that Code.
16    (f) Within 2 business days after opening the sealed bids,
17the procurement administrator shall submit a confidential
18report to the Commission. The report shall contain the results
19of the bidding for each of the products along with the
20procurement administrator's recommendation for the acceptance
21and rejection of bids based on the price benchmark criteria and
22other factors observed in the process. The procurement monitor
23also shall submit a confidential report to the Commission
24within 2 business days after opening the sealed bids. The
25report shall contain the procurement monitor's assessment of
26bidder behavior in the process as well as an assessment of the

 

 

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1procurement administrator's compliance with the procurement
2process and rules. The Commission shall review the confidential
3reports submitted by the procurement administrator and
4procurement monitor, and shall accept or reject the
5recommendations of the procurement administrator within 2
6business days after receipt of the reports.
7    (g) Within 3 business days after the Commission decision
8approving the results of a procurement event, the utility shall
9enter into binding contractual arrangements with the winning
10suppliers using the standard form contracts; except that the
11utility shall not be required either directly or indirectly to
12execute the contracts if a tariff that is consistent with
13subsection (l) of this Section has not been approved and placed
14into effect for that utility.
15    (h) The names of the successful bidders and the load
16weighted average of the winning bid prices for each contract
17type and for each contract term shall be made available to the
18public at the time of Commission approval of a procurement
19event. The Commission, the procurement monitor, the
20procurement administrator, the Illinois Power Agency, and all
21participants in the procurement process shall maintain the
22confidentiality of all other supplier and bidding information
23in a manner consistent with all applicable laws, rules,
24regulations, and tariffs. Confidential information, including
25the confidential reports submitted by the procurement
26administrator and procurement monitor pursuant to subsection

 

 

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1(f) of this Section, shall not be made publicly available and
2shall not be discoverable by any party in any proceeding,
3absent a compelling demonstration of need, nor shall those
4reports be admissible in any proceeding other than one for law
5enforcement purposes.
6    (i) Within 2 business days after a Commission decision
7approving the results of a procurement event or such other date
8as may be required by the Commission from time to time, the
9utility shall file for informational purposes with the
10Commission its actual or estimated retail supply charges, as
11applicable, by customer supply group reflecting the costs
12associated with the procurement and computed in accordance with
13the tariffs filed pursuant to subsection (l) of this Section
14and approved by the Commission.
15    (j) Within 60 days following August 28, 2007 (the effective
16date of Public Act 95-481), each electric utility that on
17December 31, 2005 provided electric service to at least 100,000
18customers in Illinois shall prepare and file with the
19Commission an initial procurement plan, which shall conform in
20all material respects to the requirements of the procurement
21plan set forth in subsection (b); provided, however, that the
22Illinois Power Agency Act shall not apply to the initial
23procurement plan prepared pursuant to this subsection. The
24initial procurement plan shall identify the portfolio of power
25and energy products to be procured and delivered for the period
26June 2008 through May 2009, and shall identify the proposed

 

 

HB5663- 163 -LRB101 19090 SPS 68550 b

1procurement administrator, who shall have the same experience
2and expertise as is required of a procurement administrator
3hired pursuant to Section 1-75 of the Illinois Power Agency
4Act. Copies of the procurement plan shall be posted and made
5publicly available on the Commission's website. The initial
6procurement plan may include contracts for renewable resources
7that extend beyond May 2009.
8        (i) Within 14 days following filing of the initial
9    procurement plan, any person may file a detailed objection
10    with the Commission contesting the procurement plan
11    submitted by the electric utility. All objections to the
12    electric utility's plan shall be specific, supported by
13    data or other detailed analyses. The electric utility may
14    file a response to any objections to its procurement plan
15    within 7 days after the date objections are due to be
16    filed. Within 7 days after the date the utility's response
17    is due, the Commission shall determine whether a hearing is
18    necessary. If it determines that a hearing is necessary, it
19    shall require the hearing to be completed and issue an
20    order on the procurement plan within 60 days after the
21    filing of the procurement plan by the electric utility.
22        (ii) The order shall approve or modify the procurement
23    plan, approve an independent procurement administrator,
24    and approve or modify the electric utility's tariffs that
25    are proposed with the initial procurement plan. The
26    Commission shall approve the procurement plan if the

 

 

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1    Commission determines that it will ensure adequate,
2    reliable, affordable, efficient, and environmentally
3    sustainable electric service at the lowest total cost over
4    time, taking into account any benefits of price stability.
5    (k) (Blank).
6    (k-5) (Blank).
7    (l) An electric utility shall recover its costs incurred
8under this Section and subsection (c-5) of Section 1-75 of the
9Illinois Power Agency Act, including, but not limited to, the
10costs of procuring power and energy demand-response resources
11under this Section and its costs for purchasing renewable
12energy credits pursuant to subsection (c-5) of Section 1-75 of
13the Illinois Power Agency Act. The utility shall file with the
14initial procurement plan its proposed tariffs through which its
15costs of procuring power that are incurred pursuant to a
16Commission-approved procurement plan and those other costs
17identified in this subsection (l), will be recovered. The
18tariffs shall include a formula rate or charge designed to pass
19through both the costs incurred by the utility in procuring a
20supply of electric power and energy for the applicable customer
21classes with no mark-up or return on the price paid by the
22utility for that supply, plus any just and reasonable costs
23that the utility incurs in arranging and providing for the
24supply of electric power and energy. The formula rate or charge
25shall also contain provisions that ensure that its application
26does not result in over or under recovery due to changes in

 

 

HB5663- 165 -LRB101 19090 SPS 68550 b

1customer usage and demand patterns, and that provide for the
2correction, on at least an annual basis, of any accounting
3errors that may occur. A utility shall recover through the
4tariff all reasonable costs incurred to implement or comply
5with any procurement plan that is developed and put into effect
6pursuant to Section 1-75 of the Illinois Power Agency Act and
7this Section, and for the procurement of renewable energy
8credits pursuant to subsection (c-5) of Section 1-75 of the
9Illinois Power Agency Act, including any fees assessed by the
10Illinois Power Agency, costs associated with load balancing,
11and contingency plan costs. The electric utility shall also
12recover its full costs of procuring electric supply for which
13it contracted before the effective date of this Section in
14conjunction with the provision of full requirements service
15under fixed-price bundled service tariffs subsequent to
16December 31, 2006. All such costs shall be deemed to have been
17prudently incurred. The pass-through tariffs that are filed and
18approved pursuant to this Section shall not be subject to
19review under, or in any way limited by, Section 16-111(i) of
20this Act. All of the costs incurred by the electric utility
21associated with the purchase of zero emission credits in
22accordance with subsection (d-5) of Section 1-75 of the
23Illinois Power Agency Act and, beginning June 1, 2017, all of
24the costs incurred by the electric utility associated with the
25purchase of renewable energy resources in accordance with
26Sections 1-56 and 1-75 of the Illinois Power Agency Act, and

 

 

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1all of the costs incurred by the electric utility in purchasing
2renewable energy credits in accordance with subsection (c-5) of
3Section 1-75 of the Illinois Power Agency Act, shall be
4recovered through the electric utility's tariffed charges
5applicable to all of its retail customers, as specified in
6subsection (k) or subsection (i-5) of Section 16-108, as
7applicable, of Section 16-108 of this Act, and shall not be
8recovered through the electric utility's tariffed charges for
9electric power and energy supply to its eligible retail
10customers.
11    (m) The Commission has the authority to adopt rules to
12carry out the provisions of this Section. For the public
13interest, safety, and welfare, the Commission also has
14authority to adopt rules to carry out the provisions of this
15Section on an emergency basis immediately following August 28,
162007 (the effective date of Public Act 95-481).
17    (n) Notwithstanding any other provision of this Act, any
18affiliated electric utilities that submit a single procurement
19plan covering their combined needs may procure for those
20combined needs in conjunction with that plan, and may enter
21jointly into power supply contracts, purchases, and other
22procurement arrangements, and allocate capacity and energy and
23cost responsibility therefor among themselves in proportion to
24their requirements.
25    (o) On or before June 1 of each year, the Commission shall
26hold an informal hearing for the purpose of receiving comments

 

 

HB5663- 167 -LRB101 19090 SPS 68550 b

1on the prior year's procurement process and any recommendations
2for change.
3    (p) An electric utility subject to this Section may propose
4to invest, lease, own, or operate an electric generation
5facility as part of its procurement plan, provided the utility
6demonstrates that such facility is the least-cost option to
7provide electric service to those retail customers included in
8the plan's electric supply service requirements. If the
9facility is shown to be the least-cost option and is included
10in a procurement plan prepared in accordance with Section 1-75
11of the Illinois Power Agency Act and this Section, then the
12electric utility shall make a filing pursuant to Section 8-406
13of this Act, and may request of the Commission any statutory
14relief required thereunder. If the Commission grants all of the
15necessary approvals for the proposed facility, such supply
16shall thereafter be considered as a pre-existing contract under
17subsection (b) of this Section. The Commission shall in any
18order approving a proposal under this subsection specify how
19the utility will recover the prudently incurred costs of
20investing in, leasing, owning, or operating such generation
21facility through just and reasonable rates charged to those
22retail customers included in the plan's electric supply service
23requirements. Cost recovery for facilities included in the
24utility's procurement plan pursuant to this subsection shall
25not be subject to review under or in any way limited by the
26provisions of Section 16-111(i) of this Act. Nothing in this

 

 

HB5663- 168 -LRB101 19090 SPS 68550 b

1Section is intended to prohibit a utility from filing for a
2fuel adjustment clause as is otherwise permitted under Section
39-220 of this Act.
4    (q) If the Illinois Power Agency filed with the Commission,
5under Section 16-111.5 of this Act, its proposed procurement
6plan for the period commencing June 1, 2017, and the Commission
7has not yet entered its final order approving the plan on or
8before the effective date of this amendatory Act of the 99th
9General Assembly, then the Illinois Power Agency shall file a
10notice of withdrawal with the Commission, after the effective
11date of this amendatory Act of the 99th General Assembly, to
12withdraw the proposed procurement of renewable energy
13resources to be approved under the plan, other than the
14procurement of renewable energy credits from distributed
15renewable energy generation devices using funds previously
16collected from electric utilities' retail customers that take
17service pursuant to electric utilities' hourly pricing tariff
18or tariffs and, for an electric utility that serves less than
19100,000 retail customers in the State, other than the
20procurement of renewable energy credits from distributed
21renewable energy generation devices. Upon receipt of the
22notice, the Commission shall enter an order that approves the
23withdrawal of the proposed procurement of renewable energy
24resources from the plan. The initially proposed procurement of
25renewable energy resources shall not be approved or be the
26subject of any further hearing, investigation, proceeding, or

 

 

HB5663- 169 -LRB101 19090 SPS 68550 b

1order of any kind.
2    This amendatory Act of the 99th General Assembly preempts
3and supersedes any order entered by the Commission that
4approved the Illinois Power Agency's procurement plan for the
5period commencing June 1, 2017, to the extent it is
6inconsistent with the provisions of this amendatory Act of the
799th General Assembly. To the extent any previously entered
8order approved the procurement of renewable energy resources,
9the portion of that order approving the procurement shall be
10void, other than the procurement of renewable energy credits
11from distributed renewable energy generation devices using
12funds previously collected from electric utilities' retail
13customers that take service under electric utilities' hourly
14pricing tariff or tariffs and, for an electric utility that
15serves less than 100,000 retail customers in the State, other
16than the procurement of renewable energy credits for
17distributed renewable energy generation devices.
18(Source: P.A. 99-906, eff. 6-1-17.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.