103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3415

 

Introduced 2/17/2023, by Rep. Anna Moeller

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-5
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-93 new
20 ILCS 3855/1-94 new
220 ILCS 5/16-108
220 ILCS 5/16-111.5

    Amends the Illinois Power Agency Act. Makes legislative declarations and findings regarding the deployment of energy storage systems. Makes it a goal of the Illinois Power Agency to include implementing procurement of energy storage credits to cost-effectively deploy contracted energy storage systems. Provides that the Agency is authorized to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve, at minimum, certain energy storage standards. Provides that the Agency has the power to request, review, and accept proposals, execute contracts, and procure energy storage credits. Provides that the Agency shall develop a storage procurement plan that results in the electric utilities contracting for energy storage credits from contracted energy storage systems in specified amounts. Provides that within 90 days of the effective date of the amendatory Act, the Agency shall develop an energy storage procurement plan. Provides that for all procurements of energy storage credits, the Agency shall direct respondents to offer a strike price. Provides that all procurements under these provisions shall comply with the geographic requirements of the Act and shall follow the procurement processes and procedures described in the Act and the Public Utilities Act. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Provides that no later than December 31, 2026 and every 2 years thereafter, the Agency shall conduct an analysis to determine whether the contracted quantity of energy storage in energy storage capacity and energy storage duration is sufficient to support the State's renewable energy standards and carbon emission standards. Defines terms. Makes corresponding changes in the Public Utilities Act. Effective immediately.


LRB103 30909 AMQ 57456 b

 

 

A BILL FOR

 

HB3415LRB103 30909 AMQ 57456 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 5. The Illinois Power Agency Act is amended by
5changing Sections 1-5, 1-10, and 1-20 and by adding Section
61-93 and 1-94 as follows:
 
7    (20 ILCS 3855/1-5)
8    Sec. 1-5. Legislative declarations and findings. The
9General Assembly finds and declares:
10        (1) The health, welfare, and prosperity of all
11    Illinois residents require the provision of adequate,
12    reliable, affordable, efficient, and environmentally
13    sustainable electric service at the lowest total cost over
14    time, taking into account any benefits of price stability.
15        (1.5) To provide the highest quality of life for the
16    residents of Illinois and to provide for a clean and
17    healthy environment, it is the policy of this State to
18    rapidly transition to 100% clean energy by 2050.
19        (2) (Blank).
20        (3) (Blank).
21        (4) It is necessary to improve the process of
22    procuring electricity to serve Illinois residents, to
23    promote investment in energy efficiency and

 

 

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1    demand-response measures, and to maintain and support
2    development of clean coal technologies, generation
3    resources that operate at all hours of the day and under
4    all weather conditions, zero emission facilities, and
5    renewable resources.
6        (5) Procuring a diverse electricity supply portfolio
7    will ensure the lowest total cost over time for adequate,
8    reliable, efficient, and environmentally sustainable
9    electric service.
10        (6) Including renewable resources and zero emission
11    credits from zero emission facilities in that portfolio
12    will reduce long-term direct and indirect costs to
13    consumers by decreasing environmental impacts and by
14    avoiding or delaying the need for new generation,
15    transmission, and distribution infrastructure. Developing
16    new renewable energy resources in Illinois, including
17    brownfield solar projects and community solar projects,
18    will help to diversify Illinois electricity supply, avoid
19    and reduce pollution, reduce peak demand, and enhance
20    public health and well-being of Illinois residents.
21        (7) Developing community solar projects in Illinois
22    will help to expand access to renewable energy resources
23    to more Illinois residents.
24        (8) Developing brownfield solar projects in Illinois
25    will help return blighted or contaminated land to
26    productive use while enhancing public health and the

 

 

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1    well-being of Illinois residents, including those in
2    environmental justice communities.
3        (9) Energy efficiency, demand-response measures, zero
4    emission energy, and renewable energy are resources
5    currently underused in Illinois. These resources should be
6    used, when cost effective, to reduce costs to consumers,
7    improve reliability, and improve environmental quality and
8    public health.
9        (10) The State should encourage the use of advanced
10    clean coal technologies that capture and sequester carbon
11    dioxide emissions to advance environmental protection
12    goals and to demonstrate the viability of coal and
13    coal-derived fuels in a carbon-constrained economy.
14        (10.5) The State should encourage the development of
15    interregional high voltage direct current (HVDC)
16    transmission lines that benefit Illinois. All ratepayers
17    in the State served by the regional transmission
18    organization where the HVDC converter station is
19    interconnected benefit from the long-term price stability
20    and market access provided by interregional HVDC
21    transmission facilities. The benefits to Illinois include:
22    reduction in wholesale power prices; access to lower-cost
23    markets; enabling the integration of additional renewable
24    generating units within the State through near
25    instantaneous dispatchability and the provision of
26    ancillary services; creating good-paying union jobs in

 

 

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1    Illinois; and, enhancing grid reliability and climate
2    resilience via HVDC facilities that are installed
3    underground.
4        (10.6) The health, welfare, and safety of the people
5    of the State are advanced by developing new HVDC
6    transmission lines predominantly along transportation
7    rights-of-way, with an HVDC converter station that is
8    located in the service territory of a public utility as
9    defined in Section 3-105 of the Public Utilities Act
10    serving more than 3,000,000 retail customers, and with a
11    project labor agreement as defined in Section 1-10 of this
12    Act.
13        (11) The General Assembly enacted Public Act 96-0795
14    to reform the State's purchasing processes, recognizing
15    that government procurement is susceptible to abuse if
16    structural and procedural safeguards are not in place to
17    ensure independence, insulation, oversight, and
18    transparency.
19        (12) The principles that underlie the procurement
20    reform legislation apply also in the context of power
21    purchasing.
22        (13) To ensure that the benefits of installing
23    renewable resources are available to all Illinois
24    residents and located across the State, subject to
25    appropriation, it is necessary for the Agency to provide
26    public information and educational resources on how

 

 

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1    residents can benefit from the expansion of renewable
2    energy in Illinois and participate in the Illinois Solar
3    for All Program established in Section 1-56, the
4    Adjustable Block program established in Section 1-75, the
5    job training programs established by paragraph (1) of
6    subsection (a) of Section 16-108.12 of the Public
7    Utilities Act, and the programs and resources established
8    by the Energy Transition Act.
9        (14) The deployment of energy storage systems is
10    necessary to achieve high levels of renewable energy, to
11    avoid the use of peaking fossil fuel plants, and to
12    maintain an efficient, reliable, and resilient electric
13    grid.
14    The General Assembly therefore finds that it is necessary
15to create the Illinois Power Agency and that the goals and
16objectives of that Agency are to accomplish each of the
17following:
18        (A) Develop electricity procurement plans to ensure
19    adequate, reliable, affordable, efficient, and
20    environmentally sustainable electric service at the lowest
21    total cost over time, taking into account any benefits of
22    price stability, for electric utilities that on December
23    31, 2005 provided electric service to at least 100,000
24    customers in Illinois and for small multi-jurisdictional
25    electric utilities that (i) on December 31, 2005 served
26    less than 100,000 customers in Illinois and (ii) request a

 

 

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1    procurement plan for their Illinois jurisdictional load.
2    The procurement plan shall be updated on an annual basis
3    and shall include renewable energy resources and,
4    beginning with the delivery year commencing June 1, 2017,
5    zero emission credits from zero emission facilities
6    sufficient to achieve the standards specified in this Act.
7        (B) Conduct the competitive procurement processes
8    identified in this Act.
9        (C) Develop electric generation and co-generation
10    facilities that use indigenous coal or renewable
11    resources, or both, financed with bonds issued by the
12    Illinois Finance Authority.
13        (D) Supply electricity from the Agency's facilities at
14    cost to one or more of the following: municipal electric
15    systems, governmental aggregators, or rural electric
16    cooperatives in Illinois.
17        (E) Ensure that the process of power procurement is
18    conducted in an ethical and transparent fashion, immune
19    from improper influence.
20        (F) Continue to review its policies and practices to
21    determine how best to meet its mission of providing the
22    lowest cost power to the greatest number of people, at any
23    given point in time, in accordance with applicable law.
24        (G) Operate in a structurally insulated, independent,
25    and transparent fashion so that nothing impedes the
26    Agency's mission to secure power at the best prices the

 

 

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1    market will bear, provided that the Agency meets all
2    applicable legal requirements.
3        (H) Implement renewable energy procurement and
4    training programs throughout the State to diversify
5    Illinois electricity supply, improve reliability, avoid
6    and reduce pollution, reduce peak demand, and enhance
7    public health and well-being of Illinois residents,
8    including low-income residents.
9        (I) Implement procurement of energy storage credits to
10    cost-effectively deploy contracted energy storage systems.
11(Source: P.A. 102-662, eff. 9-15-21.)
 
12    (20 ILCS 3855/1-10)
13    Sec. 1-10. Definitions.
14    "Agency" means the Illinois Power Agency.
15    "Agency loan agreement" means any agreement pursuant to
16which the Illinois Finance Authority agrees to loan the
17proceeds of revenue bonds issued with respect to a project to
18the Agency upon terms providing for loan repayment
19installments at least sufficient to pay when due all principal
20of, interest and premium, if any, on those revenue bonds, and
21providing for maintenance, insurance, and other matters in
22respect of the project.
23    "Authority" means the Illinois Finance Authority.
24    "Brownfield site photovoltaic project" means photovoltaics
25that are either:

 

 

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1        (1) interconnected to an electric utility as defined
2    in this Section, a municipal utility as defined in this
3    Section, a public utility as defined in Section 3-105 of
4    the Public Utilities Act, or an electric cooperative as
5    defined in Section 3-119 of the Public Utilities Act and
6    located at a site that is regulated by any of the following
7    entities under the following programs:
8            (A) the United States Environmental Protection
9        Agency under the federal Comprehensive Environmental
10        Response, Compensation, and Liability Act of 1980, as
11        amended;
12            (B) the United States Environmental Protection
13        Agency under the Corrective Action Program of the
14        federal Resource Conservation and Recovery Act, as
15        amended;
16            (C) the Illinois Environmental Protection Agency
17        under the Illinois Site Remediation Program; or
18            (D) the Illinois Environmental Protection Agency
19        under the Illinois Solid Waste Program; or
20        (2) located at the site of a coal mine that has
21    permanently ceased coal production, permanently halted any
22    re-mining operations, and is no longer accepting any coal
23    combustion residues; has both completed all clean-up and
24    remediation obligations under the federal Surface Mining
25    and Reclamation Act of 1977 and all applicable Illinois
26    rules and any other clean-up, remediation, or ongoing

 

 

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1    monitoring to safeguard the health and well-being of the
2    people of the State of Illinois, as well as demonstrated
3    compliance with all applicable federal and State
4    environmental rules and regulations, including, but not
5    limited, to 35 Ill. Adm. Code Part 845 and any rules for
6    historic fill of coal combustion residuals, including any
7    rules finalized in Subdocket A of Illinois Pollution
8    Control Board docket R2020-019.
9    "Clean coal facility" means an electric generating
10facility that uses primarily coal as a feedstock and that
11captures and sequesters carbon dioxide emissions at the
12following levels: at least 50% of the total carbon dioxide
13emissions that the facility would otherwise emit if, at the
14time construction commences, the facility is scheduled to
15commence operation before 2016, at least 70% of the total
16carbon dioxide emissions that the facility would otherwise
17emit if, at the time construction commences, the facility is
18scheduled to commence operation during 2016 or 2017, and at
19least 90% of the total carbon dioxide emissions that the
20facility would otherwise emit if, at the time construction
21commences, the facility is scheduled to commence operation
22after 2017. The power block of the clean coal facility shall
23not exceed allowable emission rates for sulfur dioxide,
24nitrogen oxides, carbon monoxide, particulates and mercury for
25a natural gas-fired combined-cycle facility the same size as
26and in the same location as the clean coal facility at the time

 

 

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1the clean coal facility obtains an approved air permit. All
2coal used by a clean coal facility shall have high volatile
3bituminous rank and greater than 1.7 pounds of sulfur per
4million Btu btu content, unless the clean coal facility does
5not use gasification technology and was operating as a
6conventional coal-fired electric generating facility on June
71, 2009 (the effective date of Public Act 95-1027).
8    "Clean coal SNG brownfield facility" means a facility that
9(1) has commenced construction by July 1, 2015 on an urban
10brownfield site in a municipality with at least 1,000,000
11residents; (2) uses a gasification process to produce
12substitute natural gas; (3) uses coal as at least 50% of the
13total feedstock over the term of any sourcing agreement with a
14utility and the remainder of the feedstock may be either
15petroleum coke or coal, with all such coal having a high
16bituminous rank and greater than 1.7 pounds of sulfur per
17million Btu content unless the facility reasonably determines
18that it is necessary to use additional petroleum coke to
19deliver additional consumer savings, in which case the
20facility shall use coal for at least 35% of the total feedstock
21over the term of any sourcing agreement; and (4) captures and
22sequesters at least 85% of the total carbon dioxide emissions
23that the facility would otherwise emit.
24    "Clean coal SNG facility" means a facility that uses a
25gasification process to produce substitute natural gas, that
26sequesters at least 90% of the total carbon dioxide emissions

 

 

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1that the facility would otherwise emit, that uses at least 90%
2coal as a feedstock, with all such coal having a high
3bituminous rank and greater than 1.7 pounds of sulfur per
4million Btu btu content, and that has a valid and effective
5permit to construct emission sources and air pollution control
6equipment and approval with respect to the federal regulations
7for Prevention of Significant Deterioration of Air Quality
8(PSD) for the plant pursuant to the federal Clean Air Act;
9provided, however, a clean coal SNG brownfield facility shall
10not be a clean coal SNG facility.
11    "Clean energy" means energy generation that is 90% or
12greater free of carbon dioxide emissions.
13    "Commission" means the Illinois Commerce Commission.
14    "Community renewable generation project" means an electric
15generating facility that:
16        (1) is powered by wind, solar thermal energy,
17    photovoltaic cells or panels, biodiesel, crops and
18    untreated and unadulterated organic waste biomass, and
19    hydropower that does not involve new construction or
20    significant expansion of hydropower dams;
21        (2) is interconnected at the distribution system level
22    of an electric utility as defined in this Section, a
23    municipal utility as defined in this Section that owns or
24    operates electric distribution facilities, a public
25    utility as defined in Section 3-105 of the Public
26    Utilities Act, or an electric cooperative, as defined in

 

 

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1    Section 3-119 of the Public Utilities Act;
2        (3) credits the value of electricity generated by the
3    facility to the subscribers of the facility; and
4        (4) is limited in nameplate capacity to less than or
5    equal to 5,000 kilowatts.
6    "Contracted energy storage system" means an energy storage
7system that is the subject of a long-term energy storage
8contract under Section 1-93. "Contracted energy storage
9system" does not include an energy storage system put into
10service before the effective date of this amendatory Act of
11the 103rd General Assembly.
12    "Costs incurred in connection with the development and
13construction of a facility" means:
14        (1) the cost of acquisition of all real property,
15    fixtures, and improvements in connection therewith and
16    equipment, personal property, and other property, rights,
17    and easements acquired that are deemed necessary for the
18    operation and maintenance of the facility;
19        (2) financing costs with respect to bonds, notes, and
20    other evidences of indebtedness of the Agency;
21        (3) all origination, commitment, utilization,
22    facility, placement, underwriting, syndication, credit
23    enhancement, and rating agency fees;
24        (4) engineering, design, procurement, consulting,
25    legal, accounting, title insurance, survey, appraisal,
26    escrow, trustee, collateral agency, interest rate hedging,

 

 

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1    interest rate swap, capitalized interest, contingency, as
2    required by lenders, and other financing costs, and other
3    expenses for professional services; and
4        (5) the costs of plans, specifications, site study and
5    investigation, installation, surveys, other Agency costs
6    and estimates of costs, and other expenses necessary or
7    incidental to determining the feasibility of any project,
8    together with such other expenses as may be necessary or
9    incidental to the financing, insuring, acquisition, and
10    construction of a specific project and starting up,
11    commissioning, and placing that project in operation.
12    "Daily energy volatility index" means a calculation, for a
13contracted energy storage system, of the difference between
14the "X" highest-priced hours and the "X" lowest-priced hours
15of the energy storage duration of the contracted energy
16storage system for each day in the day-ahead energy market of
17the applicable pricing node of the independent system operator
18or regional transmission organization, where "X" equals the
19energy storage duration of the contracted energy storage
20system.
21    "Delivery services" has the same definition as found in
22Section 16-102 of the Public Utilities Act.
23    "Delivery year" means the consecutive 12-month period
24beginning June 1 of a given year and ending May 31 of the
25following year.
26    "Department" means the Department of Commerce and Economic

 

 

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1Opportunity.
2    "Director" means the Director of the Illinois Power
3Agency.
4    "Demand-response" means measures that decrease peak
5electricity demand or shift demand from peak to off-peak
6periods.
7    "Distributed renewable energy generation device" means a
8device that is:
9        (1) powered by wind, solar thermal energy,
10    photovoltaic cells or panels, biodiesel, crops and
11    untreated and unadulterated organic waste biomass, tree
12    waste, and hydropower that does not involve new
13    construction or significant expansion of hydropower dams,
14    waste heat to power systems, or qualified combined heat
15    and power systems;
16        (2) interconnected at the distribution system level of
17    either an electric utility as defined in this Section, a
18    municipal utility as defined in this Section that owns or
19    operates electric distribution facilities, or a rural
20    electric cooperative as defined in Section 3-119 of the
21    Public Utilities Act;
22        (3) located on the customer side of the customer's
23    electric meter and is primarily used to offset that
24    customer's electricity load; and
25        (4) (blank).
26    "Energy efficiency" means measures that reduce the amount

 

 

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1of electricity or natural gas consumed in order to achieve a
2given end use. "Energy efficiency" includes voltage
3optimization measures that optimize the voltage at points on
4the electric distribution voltage system and thereby reduce
5electricity consumption by electric customers' end use
6devices. "Energy efficiency" also includes measures that
7reduce the total Btus of electricity, natural gas, and other
8fuels needed to meet the end use or uses.
9    "Energy storage capacity" means the nameplate capacity of
10a contracted energy storage system, measured in megawatts AC.
11    "Energy storage credit" means a fungible credit that
12represents the flexibility value of a contracted energy
13storage system. An energy storage credit is produced for each
14one megawatt of energy storage capacity multiplied by the
15energy storage duration each day that the contracted energy
16storage system is interconnected with wholesale electricity
17markets.
18    "Energy storage credit counterparty" has the same meaning
19as "public utility" as defined in Section 3-105 of the Public
20Utilities Act.
21    "Energy storage credit value" means a price, measured in
22dollars per credit, calculated for each day for a contracted
23energy storage system by subtracting the daily energy
24volatility index and the reference capacity price from the
25energy storage strike price.
26    "Energy storage duration" means the number of hours over

 

 

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1which an energy storage system is capable of continuously
2discharging energy at its full energy storage capacity.
3    "Energy storage strike price" means a contract price for
4energy storage credits from a contracted energy storage
5system.
6    "Energy storage system" means commercially available
7technology that is capable of absorbing energy and storing it
8for use at a later time, including, but not limited to,
9electrochemical, thermal, and electromechanical technologies.
10    "Electric utility" has the same definition as found in
11Section 16-102 of the Public Utilities Act.
12    "Equity investment eligible community" or "eligible
13community" are synonymous and mean the geographic areas
14throughout Illinois which would most benefit from equitable
15investments by the State designed to combat discrimination.
16Specifically, the eligible communities shall be defined as the
17following areas:
18        (1) R3 Areas as established pursuant to Section 10-40
19    of the Cannabis Regulation and Tax Act, where residents
20    have historically been excluded from economic
21    opportunities, including opportunities in the energy
22    sector; and
23        (2) environmental Environmental justice communities,
24    as defined by the Illinois Power Agency pursuant to the
25    Illinois Power Agency Act, where residents have
26    historically been subject to disproportionate burdens of

 

 

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1    pollution, including pollution from the energy sector.
2    "Equity eligible persons" or "eligible persons" means
3persons who would most benefit from equitable investments by
4the State designed to combat discrimination, specifically:
5        (1) persons who graduate from or are current or former
6    participants in the Clean Jobs Workforce Network Program,
7    the Clean Energy Contractor Incubator Program, the
8    Illinois Climate Works Preapprenticeship Program,
9    Returning Residents Clean Jobs Training Program, or the
10    Clean Energy Primes Contractor Accelerator Program, and
11    the solar training pipeline and multi-cultural jobs
12    program created in paragraphs (a)(1) and (a)(3) of Section
13    16-208.12 16-108.21 of the Public Utilities Act;
14        (2) persons who are graduates of or currently enrolled
15    in the foster care system;
16        (3) persons who were formerly incarcerated;
17        (4) persons whose primary residence is in an equity
18    investment eligible community.
19    "Equity eligible contractor" means a business that is
20majority-owned by eligible persons, or a nonprofit or
21cooperative that is majority-governed by eligible persons, or
22is a natural person that is an eligible person offering
23personal services as an independent contractor.
24    "Facility" means an electric generating unit or a
25co-generating unit that produces electricity along with
26related equipment necessary to connect the facility to an

 

 

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1electric transmission or distribution system.
2    "Firm energy resource" means electrical resources,
3including long-duration energy storage and multi-day energy
4storage, that can individually, or in combination, deliver
5electricity with guaranteed high availability at rated
6capacity for the expected duration of multi-day extreme or
7atypical weather events, including periods of low renewable
8energy generation, and facilitate integration of eligible
9renewable energy resources into the electrical grid and the
10transition to a zero-carbon electrical grid.
11    "General contractor Contractor" means the entity or
12organization with main responsibility for the building of a
13construction project and who is the party signing the prime
14construction contract for the project.
15    "Governmental aggregator" means one or more units of local
16government that individually or collectively procure
17electricity to serve residential retail electrical loads
18located within its or their jurisdiction.
19    "High voltage direct current converter station" means the
20collection of equipment that converts direct current energy
21from a high voltage direct current transmission line into
22alternating current using Voltage Source Conversion technology
23and that is interconnected with transmission or distribution
24assets located in Illinois.
25    "High voltage direct current renewable energy credit"
26means a renewable energy credit associated with a renewable

 

 

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1energy resource where the renewable energy resource has
2entered into a contract to transmit the energy associated with
3such renewable energy credit over high voltage direct current
4transmission facilities.
5    "High voltage direct current transmission facilities"
6means the collection of installed equipment that converts
7alternating current energy in one location to direct current
8and transmits that direct current energy to a high voltage
9direct current converter station using Voltage Source
10Conversion technology. "High voltage direct current
11transmission facilities" includes the high voltage direct
12current converter station itself and associated high voltage
13direct current transmission lines. Notwithstanding the
14preceding, after September 15, 2021 (the effective date of
15Public Act 102-662) this amendatory Act of the 102nd General
16Assembly, an otherwise qualifying collection of equipment does
17not qualify as high voltage direct current transmission
18facilities unless its developer entered into a project labor
19agreement, is capable of transmitting electricity at 525kv
20with an Illinois converter station located and interconnected
21in the region of the PJM Interconnection, LLC, and the system
22does not operate as a public utility, as that term is defined
23in Section 3-105 of the Public Utilities Act.
24    "Index price" means the real-time energy settlement price
25at the applicable Illinois trading hub, such as PJM-NIHUB or
26MISO-IL, for a given settlement period.

 

 

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1    "Indexed renewable energy credit" means a tradable credit
2that represents the environmental attributes of one megawatt
3hour of energy produced from a renewable energy resource, the
4price of which shall be calculated by subtracting the strike
5price offered by a new utility-scale wind project or a new
6utility-scale photovoltaic project from the index price in a
7given settlement period.
8    "Indexed renewable energy credit counterparty" has the
9same meaning as "public utility" as defined in Section 3-105
10of the Public Utilities Act.
11    "Local government" means a unit of local government as
12defined in Section 1 of Article VII of the Illinois
13Constitution.
14    "Long-duration energy storage" means an energy storage
15system capable of dispatching energy at its full rated
16capacity for 10 hours or greater.
17    "Long-term energy storage contract" means a contract for
18the purchase of energy storage credits generated by an energy
19storage system for a period of at least 15 years.
20    "Multi-day energy storage" means an energy storage system
21capable of dispatching energy at its full rated capacity for
22greater than 24 hours.
23    "Municipality" means a city, village, or incorporated
24town.
25    "Municipal utility" means a public utility owned and
26operated by any subdivision or municipal corporation of this

 

 

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1State.
2    "Nameplate capacity" means the aggregate inverter
3nameplate capacity in kilowatts AC.
4    "Person" means any natural person, firm, partnership,
5corporation, either domestic or foreign, company, association,
6limited liability company, joint stock company, or association
7and includes any trustee, receiver, assignee, or personal
8representative thereof.
9    "Project" means the planning, bidding, and construction of
10a facility.
11    "Project labor agreement" means a pre-hire collective
12bargaining agreement that covers all terms and conditions of
13employment on a specific construction project and must include
14the following:
15        (1) provisions establishing the minimum hourly wage
16    for each class of labor organization employee;
17        (2) provisions establishing the benefits and other
18    compensation for each class of labor organization
19    employee;
20        (3) provisions establishing that no strike or disputes
21    will be engaged in by the labor organization employees;
22        (4) provisions establishing that no lockout or
23    disputes will be engaged in by the general contractor
24    building the project; and
25        (5) provisions for minorities and women, as defined
26    under the Business Enterprise for Minorities, Women, and

 

 

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1    Persons with Disabilities Act, setting forth goals for
2    apprenticeship hours to be performed by minorities and
3    women and setting forth goals for total hours to be
4    performed by underrepresented minorities and women.
5    A labor organization and the general contractor building
6the project shall have the authority to include other terms
7and conditions as they deem necessary.
8    "Public utility" has the same definition as found in
9Section 3-105 of the Public Utilities Act.
10    "Qualified combined heat and power systems" means systems
11that, either simultaneously or sequentially, produce
12electricity and useful thermal energy from a single fuel
13source. Such systems are eligible for "renewable energy
14credits" in an amount equal to its total energy output where a
15renewable fuel is consumed or in an amount equal to the net
16reduction in nonrenewable fuel consumed on a total energy
17output basis.
18    "Real property" means any interest in land together with
19all structures, fixtures, and improvements thereon, including
20lands under water and riparian rights, any easements,
21covenants, licenses, leases, rights-of-way, uses, and other
22interests, together with any liens, judgments, mortgages, or
23other claims or security interests related to real property.
24    "Reference capacity price" means a price, measured in
25dollars per megawatt-hours, representing the revenue available
26for a contracted energy storage system through participation

 

 

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1in the MISO Planning Resource Auction or the PJM Base Residual
2Auction, or their successor resource adequacy constructs. The
3reference capacity price shall be calculated by adjusting the
4most recent clearing price in the MISO Planning Resource
5Auction or the PJM Base Residual Action, or their successor
6resource adequacy constructs, by the accredited capacity of
7the contracted energy storage system and converting the units
8to megawatt-hours.
9    "Renewable energy credit" means a tradable credit that
10represents the environmental attributes of one megawatt hour
11of energy produced from a renewable energy resource.
12    "Renewable energy resources" includes energy and its
13associated renewable energy credit or renewable energy credits
14from wind, solar thermal energy, photovoltaic cells and
15panels, biodiesel, anaerobic digestion, crops and untreated
16and unadulterated organic waste biomass, and hydropower that
17does not involve new construction or significant expansion of
18hydropower dams, waste heat to power systems, or qualified
19combined heat and power systems. For purposes of this Act,
20landfill gas produced in the State is considered a renewable
21energy resource. "Renewable energy resources" does not include
22the incineration or burning of tires, garbage, general
23household, institutional, and commercial waste, industrial
24lunchroom or office waste, landscape waste, railroad
25crossties, utility poles, or construction or demolition
26debris, other than untreated and unadulterated waste wood.

 

 

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1"Renewable energy resources" also includes high voltage direct
2current renewable energy credits and the associated energy
3converted to alternating current by a high voltage direct
4current converter station to the extent that: (1) the
5generator of such renewable energy resource contracted with a
6third party to transmit the energy over the high voltage
7direct current transmission facilities, and (2) the
8third-party contracting for delivery of renewable energy
9resources over the high voltage direct current transmission
10facilities have ownership rights over the unretired associated
11high voltage direct current renewable energy credit.
12    "Retail customer" has the same definition as found in
13Section 16-102 of the Public Utilities Act.
14    "Revenue bond" means any bond, note, or other evidence of
15indebtedness issued by the Authority, the principal and
16interest of which is payable solely from revenues or income
17derived from any project or activity of the Agency.
18    "Sequester" means permanent storage of carbon dioxide by
19injecting it into a saline aquifer, a depleted gas reservoir,
20or an oil reservoir, directly or through an enhanced oil
21recovery process that may involve intermediate storage,
22regardless of whether these activities are conducted by a
23clean coal facility, a clean coal SNG facility, a clean coal
24SNG brownfield facility, or a party with which a clean coal
25facility, clean coal SNG facility, or clean coal SNG
26brownfield facility has contracted for such purposes.

 

 

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1    "Service area" has the same definition as found in Section
216-102 of the Public Utilities Act.
3    "Settlement period" means the period of time utilized by
4MISO and PJM and their successor organizations as the basis
5for settlement calculations in the real-time energy market.
6    "Sourcing agreement" means (i) in the case of an electric
7utility, an agreement between the owner of a clean coal
8facility and such electric utility, which agreement shall have
9terms and conditions meeting the requirements of paragraph (3)
10of subsection (d) of Section 1-75, (ii) in the case of an
11alternative retail electric supplier, an agreement between the
12owner of a clean coal facility and such alternative retail
13electric supplier, which agreement shall have terms and
14conditions meeting the requirements of Section 16-115(d)(5) of
15the Public Utilities Act, and (iii) in case of a gas utility,
16an agreement between the owner of a clean coal SNG brownfield
17facility and the gas utility, which agreement shall have the
18terms and conditions meeting the requirements of subsection
19(h-1) of Section 9-220 of the Public Utilities Act.
20    "Strike price" means a contract price for energy and
21renewable energy credits from a new utility-scale wind project
22or a new utility-scale photovoltaic project.
23    "Subscriber" means a person who (i) takes delivery service
24from an electric utility, and (ii) has a subscription of no
25less than 200 watts to a community renewable generation
26project that is located in the electric utility's service

 

 

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1area. No subscriber's subscriptions may total more than 40% of
2the nameplate capacity of an individual community renewable
3generation project. Entities that are affiliated by virtue of
4a common parent shall not represent multiple subscriptions
5that total more than 40% of the nameplate capacity of an
6individual community renewable generation project.
7    "Subscription" means an interest in a community renewable
8generation project expressed in kilowatts, which is sized
9primarily to offset part or all of the subscriber's
10electricity usage.
11    "Substitute natural gas" or "SNG" means a gas manufactured
12by gasification of hydrocarbon feedstock, which is
13substantially interchangeable in use and distribution with
14conventional natural gas.
15    "Total resource cost test" or "TRC test" means a standard
16that is met if, for an investment in energy efficiency or
17demand-response measures, the benefit-cost ratio is greater
18than one. The benefit-cost ratio is the ratio of the net
19present value of the total benefits of the program to the net
20present value of the total costs as calculated over the
21lifetime of the measures. A total resource cost test compares
22the sum of avoided electric utility costs, representing the
23benefits that accrue to the system and the participant in the
24delivery of those efficiency measures and including avoided
25costs associated with reduced use of natural gas or other
26fuels, avoided costs associated with reduced water

 

 

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1consumption, and avoided costs associated with reduced
2operation and maintenance costs, as well as other quantifiable
3societal benefits, to the sum of all incremental costs of
4end-use measures that are implemented due to the program
5(including both utility and participant contributions), plus
6costs to administer, deliver, and evaluate each demand-side
7program, to quantify the net savings obtained by substituting
8the demand-side program for supply resources. In calculating
9avoided costs of power and energy that an electric utility
10would otherwise have had to acquire, reasonable estimates
11shall be included of financial costs likely to be imposed by
12future regulations and legislation on emissions of greenhouse
13gases. In discounting future societal costs and benefits for
14the purpose of calculating net present values, a societal
15discount rate based on actual, long-term Treasury bond yields
16should be used. Notwithstanding anything to the contrary, the
17TRC test shall not include or take into account a calculation
18of market price suppression effects or demand reduction
19induced price effects.
20    "Utility-scale solar project" means an electric generating
21facility that:
22        (1) generates electricity using photovoltaic cells;
23    and
24        (2) has a nameplate capacity that is greater than
25    5,000 kilowatts.
26    "Utility-scale wind project" means an electric generating

 

 

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1facility that:
2        (1) generates electricity using wind; and
3        (2) has a nameplate capacity that is greater than
4    5,000 kilowatts.
5    "Waste Heat to Power Systems" means systems that capture
6and generate electricity from energy that would otherwise be
7lost to the atmosphere without the use of additional fuel.
8    "Zero emission credit" means a tradable credit that
9represents the environmental attributes of one megawatt hour
10of energy produced from a zero emission facility.
11    "Zero emission facility" means a facility that: (1) is
12fueled by nuclear power; and (2) is interconnected with PJM
13Interconnection, LLC or the Midcontinent Independent System
14Operator, Inc., or their successors.
15(Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
 
16    (20 ILCS 3855/1-20)
17    Sec. 1-20. General powers and duties of the Agency.
18    (a) The Agency is authorized to do each of the following:
19        (1) Develop electricity procurement plans to 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, for electric utilities that on December
24    31, 2005 provided electric service to at least 100,000
25    customers in Illinois and for small multi-jurisdictional

 

 

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1    electric utilities that (A) on December 31, 2005 served
2    less than 100,000 customers in Illinois and (B) request a
3    procurement plan for their Illinois jurisdictional load.
4    Except as provided in paragraph (1.5) of this subsection
5    (a), the electricity procurement plans shall be updated on
6    an annual basis and shall include electricity generated
7    from renewable resources sufficient to achieve the
8    standards specified in this Act. Beginning with the
9    delivery year commencing June 1, 2017, develop procurement
10    plans to include zero emission credits generated from zero
11    emission facilities sufficient to achieve the standards
12    specified in this Act. Beginning with the delivery year
13    commencing on June 1, 2022, the Agency is authorized to
14    develop carbon mitigation credit procurement plans to
15    include carbon mitigation credits generated from
16    carbon-free energy resources sufficient to achieve the
17    standards specified in this Act.
18        (1.5) Develop a long-term renewable resources
19    procurement plan in accordance with subsection (c) of
20    Section 1-75 of this Act for renewable energy credits in
21    amounts sufficient to achieve the standards specified in
22    this Act for delivery years commencing June 1, 2017 and
23    for the programs and renewable energy credits specified in
24    Section 1-56 of this Act. Electricity procurement plans
25    for delivery years commencing after May 31, 2017, shall
26    not include procurement of renewable energy resources.

 

 

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1        (2) Conduct competitive procurement processes to
2    procure the supply resources identified in the electricity
3    procurement plan, pursuant to Section 16-111.5 of the
4    Public Utilities Act, and, for the delivery year
5    commencing June 1, 2017, conduct procurement processes to
6    procure zero emission credits from zero emission
7    facilities, under subsection (d-5) of Section 1-75 of this
8    Act. For the delivery year commencing June 1, 2022, the
9    Agency is authorized to conduct procurement processes to
10    procure carbon mitigation credits from carbon-free energy
11    resources, under subsection (d-10) of Section 1-75 of this
12    Act.
13        (2.5) Beginning with the procurement for the 2017
14    delivery year, conduct competitive procurement processes
15    and implement programs to procure renewable energy credits
16    identified in the long-term renewable resources
17    procurement plan developed and approved under subsection
18    (c) of Section 1-75 of this Act and Section 16-111.5 of the
19    Public Utilities Act.
20        (2.10) Oversee the procurement by electric utilities
21    that served more than 300,000 customers in this State as
22    of January 1, 2019 of renewable energy credits from new
23    renewable energy facilities to be installed, along with
24    energy storage facilities, at or adjacent to the sites of
25    electric generating facilities that burned coal as their
26    primary fuel source as of January 1, 2016 in accordance

 

 

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1    with subsection (c-5) of Section 1-75 of this Act.
2        (3) Develop electric generation and co-generation
3    facilities that use indigenous coal or renewable
4    resources, or both, financed with bonds issued by the
5    Illinois Finance Authority.
6        (4) Supply electricity from the Agency's facilities at
7    cost to one or more of the following: municipal electric
8    systems, governmental aggregators, or rural electric
9    cooperatives in Illinois.
10        (5) Conduct competitive solicitations to procure
11    energy storage credits sufficient to achieve, at minimum,
12    the energy storage standard under Section 1-93 of this
13    Act.
14    (b) Except as otherwise limited by this Act, the Agency
15has all of the powers necessary or convenient to carry out the
16purposes and provisions of this Act, including without
17limitation, each of the following:
18        (1) To have a corporate seal, and to alter that seal at
19    pleasure, and to use it by causing it or a facsimile to be
20    affixed or impressed or reproduced in any other manner.
21        (2) To use the services of the Illinois Finance
22    Authority necessary to carry out the Agency's purposes.
23        (3) To negotiate and enter into loan agreements and
24    other agreements with the Illinois Finance Authority.
25        (4) To obtain and employ personnel and hire
26    consultants that are necessary to fulfill the Agency's

 

 

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

 

 

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1    in a similar or different business or activity.
2        (9) To make and execute agreements, contracts, and
3    other instruments necessary or convenient in the exercise
4    of the powers and functions of the Agency under this Act,
5    including contracts with any person, including personal
6    service contracts, or with any local government, State
7    agency, or other entity; and all State agencies and all
8    local governments are authorized to enter into and do all
9    things necessary to perform any such agreement, contract,
10    or other instrument with the Agency. No such agreement,
11    contract, or other instrument shall exceed 40 years.
12        (10) To lend money, invest and reinvest its funds in
13    accordance with the Public Funds Investment Act, and take
14    and hold real and personal property as security for the
15    payment of funds loaned or invested.
16        (11) To borrow money at such rate or rates of interest
17    as the Agency may determine, issue its notes, bonds, or
18    other obligations to evidence that indebtedness, and
19    secure any of its obligations by mortgage or pledge of its
20    real or personal property, machinery, equipment,
21    structures, fixtures, inventories, revenues, grants, and
22    other funds as provided or any interest therein, wherever
23    situated.
24        (12) To enter into agreements with the Illinois
25    Finance Authority to issue bonds whether or not the income
26    therefrom is exempt from federal taxation.

 

 

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1        (13) To procure insurance against any loss in
2    connection with its properties or operations in such
3    amount or amounts and from such insurers, including the
4    federal government, as it may deem necessary or desirable,
5    and to pay any premiums therefor.
6        (14) To negotiate and enter into agreements with
7    trustees or receivers appointed by United States
8    bankruptcy courts or federal district courts or in other
9    proceedings involving adjustment of debts and authorize
10    proceedings involving adjustment of debts and authorize
11    legal counsel for the Agency to appear in any such
12    proceedings.
13        (15) To file a petition under Chapter 9 of Title 11 of
14    the United States Bankruptcy Code or take other similar
15    action for the adjustment of its debts.
16        (16) To enter into management agreements for the
17    operation of any of the property or facilities owned by
18    the Agency.
19        (17) To enter into an agreement to transfer and to
20    transfer any land, facilities, fixtures, or equipment of
21    the Agency to one or more municipal electric systems,
22    governmental aggregators, or rural electric agencies or
23    cooperatives, for such consideration and upon such terms
24    as the Agency may determine to be in the best interest of
25    the residents of Illinois.
26        (18) To enter upon any lands and within any building

 

 

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

 

 

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1    requirements of Section 1-78 of this Act.
2        (26) To review, revise, and approve sourcing
3    agreements and mediate and resolve disputes between gas
4    utilities and the clean coal SNG brownfield facility
5    pursuant to subsection (h-1) of Section 9-220 of the
6    Public Utilities Act.
7        (27) To request, review and accept proposals, execute
8    contracts, purchase renewable energy credits and otherwise
9    dedicate funds from the Illinois Power Agency Renewable
10    Energy Resources Fund to create and carry out the
11    objectives of the Illinois Solar for All Program in
12    accordance with Section 1-56 of this Act.
13        (28) To ensure Illinois residents and business benefit
14    from programs administered by the Agency and are properly
15    protected from any deceptive or misleading marketing
16    practices by participants in the Agency's programs and
17    procurements.
18        (29) To request, review, and accept proposals, execute
19    contracts, and procure energy storage credits.
20    (c) In conducting the procurement of electricity or other
21products, beginning January 1, 2022, the Agency shall not
22procure any products or services from persons or organizations
23that are in violation of the Displaced Energy Workers Bill of
24Rights, as provided under the Energy Community Reinvestment
25Act at the time of the procurement event or fail to comply the
26labor standards established in subparagraph (Q) of paragraph

 

 

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1(1) of subsection (c) of Section 1-75.
2(Source: P.A. 102-662, eff. 9-15-21.)
 
3    (20 ILCS 3855/1-93 new)
4    Sec. 1-93. Energy storage credit targets.
5    (a) The Agency shall develop a storage procurement plan
6that results in the electric utilities contracting for energy
7storage credits from contracted energy storage systems in the
8following amounts:
9        (1) at least 1,000 megawatts of cumulative energy
10    storage capacity by the end of delivery year 2024;
11        (2) at least 3,000 megawatts of cumulative energy
12    storage capacity by delivery year 2026;
13        (3) at least 5,000 megawatts of cumulative energy
14    storage capacity by delivery year 2028; and
15        (4) at least 7,500 megawatts of cumulative energy
16    storage capacity by delivery year 2030.
17    (b) Within 90 days of the effective date of this
18amendatory Act of the 103rd General Assembly, the Agency shall
19develop an energy storage procurement plan in accordance with
20this Section and Section 16-111.5 of the Public Utilities Act.
21    (c) For all procurements of energy storage credits, the
22Agency shall procure indexed energy storage credits and direct
23respondents to offer an energy storage strike price. The
24purchase price of the indexed energy storage credit payment
25shall be calculated for each settlement period. The payment,

 

 

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1for any settlement period, shall be equal to the difference
2resulting from subtracting from the energy storage strike
3price the sum of the daily energy volatility index and the
4reference capacity price for that settlement period. If this
5difference results in a positive number, the electric utility
6shall owe the seller this amount multiplied by the number of
7indexed energy storage credits produced in the relevant
8settlement period. If this difference results in a negative
9number, the settlement shall be zero. The parties shall cash
10settle every month, summing up all settlements for the prior
11month.
12    (d) All procurements under this Section shall comply with
13the geographic requirements in subparagraph (I) of paragraph
14(1) of subsection (c) of Section 1-75 and shall follow the
15procurement processes and procedures described in this Section
16and Section 16-111.5 of the Public Utilities Act to the extent
17practicable, and these processes and procedures may be
18expedited to accommodate the schedule established by this
19Section. The Agency shall select bids based solely on the
20strike price. The winning bidders shall comply with the
21prevailing wage requirements in subparagraph (Q) of paragraph
22(1) of subsection (c) of Section 1-75 and equity
23accountability system requirements in Section (c-10) of
24Section 1-75.
25    (e) No later than December 31, 2026 and every 2 years
26thereafter, the Agency shall conduct an analysis to determine

 

 

HB3415- 39 -LRB103 30909 AMQ 57456 b

1whether the contracted quantity of energy storage in energy
2storage capacity and energy storage duration is sufficient to
3support the State's renewable energy standards and carbon
4emission standards. To conduct the analysis, the Agency shall
5retain an independent consultant with experience in wholesale
6electric system modeling in PJM and MISO and may seek the
7support of the federal Department of Energy and National Labs
8to conduct its analysis. The independent consultant shall
9utilize a production cost model, capacity expansion model, or
10similar comprehensive analysis of the electricity systems and
11shall provide opportunities for stakeholders to provide
12feedback on the scope, inputs, and assumptions used in the
13analysis. The Agency is authorized to collect costs for
14conducting the analysis from electric utilities. The electric
15utilities are authorized to recover the cost of the analysis
16as part of the recovery of the cost of energy storage credits,
17as authorized in this Section and Section 16-108 of the Public
18Utilities Act. If the Agency determines that the need for
19energy storage capacity or energy storage duration is greater
20than the energy storage credit target in this Section, the
21Agency shall establish and the Commission shall approve new
22energy storage credit targets to meet the identified need. If
23the Agency determines that deployment of energy storage beyond
242030 will not be achieved through wholesale market prices and
25other energy storage programs established by the State, the
26Agency shall establish additional targets for years beyond

 

 

HB3415- 40 -LRB103 30909 AMQ 57456 b

12030.
 
2    (20 ILCS 3855/1-94 new)
3    Sec. 1-94. Firm energy resource procurement plan. The
4Agency is authorized to develop and implement a firm energy
5resource procurement plan for new resources, including
6initiating proceedings and conducting competitive
7solicitations to deploy new long-duration and multi-day energy
8storage. The procurement plan shall ensure regular procurement
9opportunities to deploy new long-duration and multi-day energy
10storage resources by 2030 and shall ensure stable, competitive
11resource development at a pace needed to ensure grid
12reliability and resilience during atypical or extreme grid
13conditions that may occur at least once in 20 years while
14meeting the emissions requirements of Section 9.15 of the
15Environmental Protection Act.
16    The Agency's plan shall ensure that a minimum of 2 new
17long-duration or multi-day energy storage resources each with
18a rated capacity greater than 20 megawatts shall be deployed
19or contracted by the end of delivery year 2026.
20    Within 365 days of the effective date of this amendatory
21Act of the 103rd General Assembly, the Agency shall develop a
22firm energy resource procurement plan in accordance with this
23Section and Section 16-111.5 of the Public Utilities Act.
 
24    Section 10. The Public Utilities Act is amended by

 

 

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1changing Sections 16-108 and 16-111.5 as follows:
 
2    (220 ILCS 5/16-108)
3    Sec. 16-108. Recovery of costs associated with the
4provision of delivery and other services.
5    (a) An electric utility shall file a delivery services
6tariff with the Commission at least 210 days prior to the date
7that it is required to begin offering such services pursuant
8to this Act. An electric utility shall provide the components
9of delivery services that are subject to the jurisdiction of
10the Federal Energy Regulatory Commission at the same prices,
11terms and conditions set forth in its applicable tariff as
12approved or allowed into effect by that Commission. The
13Commission shall otherwise have the authority pursuant to
14Article IX to review, approve, and modify the prices, terms
15and conditions of those components of delivery services not
16subject to the jurisdiction of the Federal Energy Regulatory
17Commission, including the authority to determine the extent to
18which such delivery services should be offered on an unbundled
19basis. In making any such determination the Commission shall
20consider, at a minimum, the effect of additional unbundling on
21(i) the objective of just and reasonable rates, (ii) electric
22utility employees, and (iii) the development of competitive
23markets for electric energy services in Illinois.
24    (b) The Commission shall enter an order approving, or
25approving as modified, the delivery services tariff no later

 

 

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1than 30 days prior to the date on which the electric utility
2must commence offering such services. The Commission may
3subsequently modify such tariff pursuant to this Act.
4    (c) The electric utility's tariffs shall define the
5classes of its customers for purposes of delivery services
6charges. Delivery services shall be priced and made available
7to all retail customers electing delivery services in each
8such class on a nondiscriminatory basis regardless of whether
9the retail customer chooses the electric utility, an affiliate
10of the electric utility, or another entity as its supplier of
11electric power and energy. Charges for delivery services shall
12be cost based, and shall allow the electric utility to recover
13the costs of providing delivery services through its charges
14to its delivery service customers that use the facilities and
15services associated with such costs. Such costs shall include
16the costs of owning, operating and maintaining transmission
17and distribution facilities. The Commission shall also be
18authorized to consider whether, and if so to what extent, the
19following costs are appropriately included in the electric
20utility's delivery services rates: (i) the costs of that
21portion of generation facilities used for the production and
22absorption of reactive power in order that retail customers
23located in the electric utility's service area can receive
24electric power and energy from suppliers other than the
25electric utility, and (ii) the costs associated with the use
26and redispatch of generation facilities to mitigate

 

 

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1constraints on the transmission or distribution system in
2order that retail customers located in the electric utility's
3service area can receive electric power and energy from
4suppliers other than the electric utility. Nothing in this
5subsection shall be construed as directing the Commission to
6allocate any of the costs described in (i) or (ii) that are
7found to be appropriately included in the electric utility's
8delivery services rates to any particular customer group or
9geographic area in setting delivery services rates.
10    (d) The Commission shall establish charges, terms and
11conditions for delivery services that are just and reasonable
12and shall take into account customer impacts when establishing
13such charges. In establishing charges, terms and conditions
14for delivery services, the Commission shall take into account
15voltage level differences. A retail customer shall have the
16option to request to purchase electric service at any delivery
17service voltage reasonably and technically feasible from the
18electric facilities serving that customer's premises provided
19that there are no significant adverse impacts upon system
20reliability or system efficiency. A retail customer shall also
21have the option to request to purchase electric service at any
22point of delivery that is reasonably and technically feasible
23provided that there are no significant adverse impacts on
24system reliability or efficiency. Such requests shall not be
25unreasonably denied.
26    (e) Electric utilities shall recover the costs of

 

 

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1installing, operating or maintaining facilities for the
2particular benefit of one or more delivery services customers,
3including without limitation any costs incurred in complying
4with a customer's request to be served at a different voltage
5level, directly from the retail customer or customers for
6whose benefit the costs were incurred, to the extent such
7costs are not recovered through the charges referred to in
8subsections (c) and (d) of this Section.
9    (f) An electric utility shall be entitled but not required
10to implement transition charges in conjunction with the
11offering of delivery services pursuant to Section 16-104. If
12an electric utility implements transition charges, it shall
13implement such charges for all delivery services customers and
14for all customers described in subsection (h), but shall not
15implement transition charges for power and energy that a
16retail customer takes from cogeneration or self-generation
17facilities located on that retail customer's premises, if such
18facilities meet the following criteria:
19        (i) the cogeneration or self-generation facilities
20    serve a single retail customer and are located on that
21    retail customer's premises (for purposes of this
22    subparagraph and subparagraph (ii), an industrial or
23    manufacturing retail customer and a third party contractor
24    that is served by such industrial or manufacturing
25    customer through such retail customer's own electrical
26    distribution facilities under the circumstances described

 

 

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

 

 

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1    of the facility, over a minimum 5-year period; and
2        (iv) if the cogeneration facility is sized for the
3    retail customer's thermal load at that premises but
4    exceeds the electrical load, any sales of excess power or
5    energy are made only at wholesale, are subject to the
6    jurisdiction of the Federal Energy Regulatory Commission,
7    and are not for the purpose of circumventing the
8    provisions of this subsection (f).
9If a generation facility located at a retail customer's
10premises does not meet the above criteria, an electric utility
11implementing transition charges shall implement a transition
12charge until December 31, 2006 for any power and energy taken
13by such retail customer from such facility as if such power and
14energy had been delivered by the electric utility. Provided,
15however, that an industrial retail customer that is taking
16power from a generation facility that does not meet the above
17criteria but that is located on such customer's premises will
18not be subject to a transition charge for the power and energy
19taken by such retail customer from such generation facility if
20the facility does not serve any other retail customer and
21either was installed on behalf of the customer and for its own
22use prior to January 1, 1997, or is both predominantly fueled
23by byproducts of such customer's manufacturing process at such
24premises and sells or offers an average of 300 megawatts or
25more of electricity produced from such generation facility
26into the wholesale market. Such charges shall be calculated as

 

 

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1provided in Section 16-102, and shall be collected on each
2kilowatt-hour delivered under a delivery services tariff to a
3retail customer from the date the customer first takes
4delivery services until December 31, 2006 except as provided
5in subsection (h) of this Section. Provided, however, that an
6electric utility, other than an electric utility providing
7service to at least 1,000,000 customers in this State on
8January 1, 1999, shall be entitled to petition for entry of an
9order by the Commission authorizing the electric utility to
10implement transition charges for an additional period ending
11no later than December 31, 2008. The electric utility shall
12file its petition with supporting evidence no earlier than 16
13months, and no later than 12 months, prior to December 31,
142006. The Commission shall hold a hearing on the electric
15utility's petition and shall enter its order no later than 8
16months after the petition is filed. The Commission shall
17determine whether and to what extent the electric utility
18shall be authorized to implement transition charges for an
19additional period. The Commission may authorize the electric
20utility to implement transition charges for some or all of the
21additional period, and shall determine the mitigation factors
22to be used in implementing such transition charges; provided,
23that the Commission shall not authorize mitigation factors
24less than 110% of those in effect during the 12 months ended
25December 31, 2006. In making its determination, the Commission
26shall consider the following factors: the necessity to

 

 

HB3415- 48 -LRB103 30909 AMQ 57456 b

1implement transition charges for an additional period in order
2to maintain the financial integrity of the electric utility;
3the prudence of the electric utility's actions in reducing its
4costs since the effective date of this amendatory Act of 1997;
5the ability of the electric utility to provide safe, adequate
6and reliable service to retail customers in its service area;
7and the impact on competition of allowing the electric utility
8to implement transition charges for the additional period.
9    (g) The electric utility shall file tariffs that establish
10the transition charges to be paid by each class of customers to
11the electric utility in conjunction with the provision of
12delivery services. The electric utility's tariffs shall define
13the classes of its customers for purposes of calculating
14transition charges. The electric utility's tariffs shall
15provide for the calculation of transition charges on a
16customer-specific basis for any retail customer whose average
17monthly maximum electrical demand on the electric utility's
18system during the 6 months with the customer's highest monthly
19maximum electrical demands equals or exceeds 3.0 megawatts for
20electric utilities having more than 1,000,000 customers, and
21for other electric utilities for any customer that has an
22average monthly maximum electrical demand on the electric
23utility's system of one megawatt or more, and (A) for which
24there exists data on the customer's usage during the 3 years
25preceding the date that the customer became eligible to take
26delivery services, or (B) for which there does not exist data

 

 

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

 

 

HB3415- 50 -LRB103 30909 AMQ 57456 b

1supplier or other electric utility, provided, that the
2electric utility in whose service area the customer is located
3shall offer the customer the option of signing a contract
4pursuant to which the customer pays such charges ratably over
5the period in which the charges would otherwise have applied.
6    (i) An electric utility shall be entitled to add to the
7bills of delivery services customers charges pursuant to
8Sections 9-221, 9-222 (except as provided in Section 9-222.1),
9and Section 16-114 of this Act, Section 5-5 of the Electricity
10Infrastructure Maintenance Fee Law, Section 6-5 of the
11Renewable Energy, Energy Efficiency, and Coal Resources
12Development Law of 1997, and Section 13 of the Energy
13Assistance Act.
14    (i-5) An electric utility required to impose the Coal to
15Solar and Energy Storage Initiative Charge provided for in
16subsection (c-5) of Section 1-75 of the Illinois Power Agency
17Act shall add such charge to the bills of its delivery services
18customers pursuant to the terms of a tariff conforming to the
19requirements of subsection (c-5) of Section 1-75 of the
20Illinois Power Agency Act and this subsection (i-5) and filed
21with and approved by the Commission. The electric utility
22shall file its proposed tariff with the Commission on or
23before July 1, 2022 to be effective, after review and approval
24or modification by the Commission, beginning January 1, 2023.
25On or before December 1, 2022, the Commission shall review the
26electric utility's proposed tariff, including by conducting a

 

 

HB3415- 51 -LRB103 30909 AMQ 57456 b

1docketed proceeding if deemed necessary by the Commission, and
2shall approve the proposed tariff or direct the electric
3utility to make modifications the Commission finds necessary
4for the tariff to conform to the requirements of subsection
5(c-5) of Section 1-75 of the Illinois Power Agency Act and this
6subsection (i-5). The electric utility's tariff shall provide
7for imposition of the Coal to Solar and Energy Storage
8Initiative Charge on a per-kilowatthour basis to all
9kilowatthours delivered by the electric utility to its
10delivery services customers. The tariff shall provide for the
11calculation of the Coal to Solar and Energy Storage Initiative
12Charge to be in effect for the year beginning January 1, 2023
13and each year beginning January 1 thereafter, sufficient to
14collect the electric utility's estimated payment obligations
15for the delivery year beginning the following June 1 under
16contracts for purchase of renewable energy credits entered
17into pursuant to subsection (c-5) of Section 1-75 of the
18Illinois Power Agency Act and the obligations of the
19Department of Commerce and Economic Opportunity, or any
20successor department or agency, which for purposes of this
21subsection (i-5) shall be referred to as the Department, to
22make grant payments during such delivery year from the Coal to
23Solar and Energy Storage Initiative Fund pursuant to grant
24contracts entered into pursuant to subsection (c-5) of Section
251-75 of the Illinois Power Agency Act, and using the electric
26utility's kilowatthour deliveries to its delivery services

 

 

HB3415- 52 -LRB103 30909 AMQ 57456 b

1customers during the delivery year ended May 31 of the
2preceding calendar year. On or before November 1 of each year
3beginning November 1, 2022, the Department shall notify the
4electric utilities of the amount of the Department's estimated
5obligations for grant payments during the delivery year
6beginning the following June 1 pursuant to grant contracts
7entered into pursuant to subsection (c-5) of Section 1-75 of
8the Illinois Power Agency Act; and each electric utility shall
9incorporate in the calculation of its Coal to Solar and Energy
10Storage Initiative Charge the fractional portion of the
11Department's estimated obligations equal to the electric
12utility's kilowatthour deliveries to its delivery services
13customers in the delivery year ended the preceding May 31
14divided by the aggregate deliveries of both electric utilities
15to delivery services customers in such delivery year. The
16electric utility shall remit on a monthly basis to the State
17Treasurer, for deposit in the Coal to Solar and Energy Storage
18Initiative Fund provided for in subsection (c-5) of Section
191-75 of the Illinois Power Agency Act, the electric utility's
20collections of the Coal to Solar and Energy Storage Initiative
21Charge estimated to be needed by the Department for grant
22payments pursuant to grant contracts entered into pursuant to
23subsection (c-5) of Section 1-75 of the Illinois Power Agency
24Act. The initial charge under the electric utility's tariff
25shall be effective for kilowatthours delivered beginning
26January 1, 2023, and thereafter shall be revised to be

 

 

HB3415- 53 -LRB103 30909 AMQ 57456 b

1effective January 1, 2024 and each January 1 thereafter, based
2on the payment obligations for the delivery year beginning the
3following June 1. The tariff shall provide for the electric
4utility to make an annual filing with the Commission on or
5before November 15 of each year, beginning in 2023, setting
6forth the Coal to Solar and Energy Storage Initiative Charge
7to be in effect for the year beginning the following January 1.
8The electric utility's tariff shall also provide that the
9electric utility shall make a filing with the Commission on or
10before August 1 of each year beginning in 2024 setting forth a
11reconciliation, for the delivery year ended the preceding May
1231, of the electric utility's collections of the Coal to Solar
13and Energy Storage Initiative Charge against actual payments
14for renewable energy credits pursuant to contracts entered
15into, and the actual grant payments by the Department pursuant
16to grant contracts entered into, pursuant to subsection (c-5)
17of Section 1-75 of the Illinois Power Agency Act. The tariff
18shall provide that any excess or shortfall of collections to
19payments shall be deducted from or added to, on a
20per-kilowatthour basis, the Coal to Solar and Energy Storage
21Initiative Charge, over the 6-month period beginning October 1
22of that calendar year.
23    (j) If a retail customer that obtains electric power and
24energy from cogeneration or self-generation facilities
25installed for its own use on or before January 1, 1997,
26subsequently takes service from an alternative retail electric

 

 

HB3415- 54 -LRB103 30909 AMQ 57456 b

1supplier or an electric utility other than the electric
2utility in whose service area the customer is located for any
3portion of the customer's electric power and energy
4requirements formerly obtained from those facilities
5(including that amount purchased from the utility in lieu of
6such generation and not as standby power purchases, under a
7cogeneration displacement tariff in effect as of the effective
8date of this amendatory Act of 1997), the transition charges
9otherwise applicable pursuant to subsections (f), (g), or (h)
10of this Section shall not be applicable in any year to that
11portion of the customer's electric power and energy
12requirements formerly obtained from those facilities,
13provided, that for purposes of this subsection (j), such
14portion shall not exceed the average number of kilowatt-hours
15per year obtained from the cogeneration or self-generation
16facilities during the 3 years prior to the date on which the
17customer became eligible for delivery services, except as
18provided in subsection (f) of Section 16-110.
19    (k) The electric utility shall be entitled to recover
20through tariffed charges all of the costs associated with the
21purchase of zero emission credits from zero emission
22facilities to meet the requirements of subsection (d-5) of
23Section 1-75 of the Illinois Power Agency Act and all of the
24costs associated with the purchase of carbon mitigation
25credits from carbon-free energy resources to meet the
26requirements of subsection (d-10) of Section 1-75 of the

 

 

HB3415- 55 -LRB103 30909 AMQ 57456 b

1Illinois Power Agency Act. Such costs shall include the costs
2of procuring the zero emission credits and carbon mitigation
3credits from carbon-free energy resources, as well as the
4reasonable costs that the utility incurs as part of the
5procurement processes and to implement and comply with plans
6and processes approved by the Commission under subsections
7(d-5) and (d-10). The costs shall be allocated across all
8retail customers through a single, uniform cents per
9kilowatt-hour charge applicable to all retail customers, which
10shall appear as a separate line item on each customer's bill.
11Beginning June 1, 2024, the electric utility shall be entitled
12to recover through tariffed charges all of the costs
13associated with the purchase of energy storage credits to meet
14the energy storage standards of Section 1-93 of the Illinois
15Power Agency Act under procurement plans as approved in
16accordance with that Section and Section 16-111.5 of this Act.
17Such costs shall include the costs of procuring the energy
18storage credits and the reasonable costs that the utility
19incurs as part of the procurement processes and implementing
20and complying with plans and processes approved by the
21Commission under such Sections. The costs associated with the
22purchase of energy storage credits shall be allocated across
23all retail customers in proportion to the amount of energy
24storage credits the electric utility procures for such
25customers through a single, uniform cents per kilowatthour
26charge applicable to such retail customers, which shall appear

 

 

HB3415- 56 -LRB103 30909 AMQ 57456 b

1as a separate line item on each customer's bill. Beginning
2June 1, 2017, the electric utility shall be entitled to
3recover through tariffed charges all of the costs associated
4with the purchase of renewable energy resources to meet the
5renewable energy resource standards of subsection (c) of
6Section 1-75 of the Illinois Power Agency Act, under
7procurement plans as approved in accordance with that Section
8and Section 16-111.5 of this Act. Such costs shall include the
9costs of procuring the renewable energy resources, as well as
10the reasonable costs that the utility incurs as part of the
11procurement processes and to implement and comply with plans
12and processes approved by the Commission under such Sections.
13The costs associated with the purchase of renewable energy
14resources shall be allocated across all retail customers in
15proportion to the amount of renewable energy resources the
16utility procures for such customers through a single, uniform
17cents per kilowatt-hour charge applicable to such retail
18customers, which shall appear as a separate line item on each
19such customer's bill. The credits, costs, and penalties
20associated with the self-direct renewable portfolio standard
21compliance program described in subparagraph (R) of paragraph
22(1) of subsection (c) of Section 1-75 of the Illinois Power
23Agency Act shall be allocated to approved eligible self-direct
24customers by the utility in a cents per kilowatt-hour credit,
25cost, or penalty, which shall appear as a separate line item on
26each such customer's bill.

 

 

HB3415- 57 -LRB103 30909 AMQ 57456 b

1    Notwithstanding whether the Commission has approved the
2initial long-term renewable resources procurement plan as of
3June 1, 2017, an electric utility shall place new tariffed
4charges into effect beginning with the June 2017 monthly
5billing period, to the extent practicable, to begin recovering
6the costs of procuring renewable energy resources, as those
7charges are calculated under the limitations described in
8subparagraph (E) of paragraph (1) of subsection (c) of Section
91-75 of the Illinois Power Agency Act. Notwithstanding the
10date on which the utility places such new tariffed charges
11into effect, the utility shall be permitted to collect the
12charges under such tariff as if the tariff had been in effect
13beginning with the first day of the June 2017 monthly billing
14period. For the delivery years commencing June 1, 2017, June
151, 2018, June 1, 2019, and each delivery year thereafter, the
16electric utility shall deposit into a separate interest
17bearing account of a financial institution the monies
18collected under the tariffed charges. Money collected from
19customers for the procurement of renewable energy resources in
20a given delivery year may be spent by the utility for the
21procurement of renewable resources over any of the following 5
22delivery years, after which unspent money shall be credited
23back to retail customers. The electric utility shall spend all
24money collected in earlier delivery years that has not yet
25been returned to customers, first, before spending money
26collected in later delivery years. Any interest earned shall

 

 

HB3415- 58 -LRB103 30909 AMQ 57456 b

1be credited back to retail customers under the reconciliation
2proceeding provided for in this subsection (k), provided that
3the electric utility shall first be reimbursed from the
4interest for the administrative costs that it incurs to
5administer and manage the account. Any taxes due on the funds
6in the account, or interest earned on it, will be paid from the
7account or, if insufficient monies are available in the
8account, from the monies collected under the tariffed charges
9to recover the costs of procuring renewable energy resources.
10Monies deposited in the account shall be subject to the
11review, reconciliation, and true-up process described in this
12subsection (k) that is applicable to the funds collected and
13costs incurred for the procurement of renewable energy
14resources.
15    The electric utility shall be entitled to recover all of
16the costs identified in this subsection (k) through automatic
17adjustment clause tariffs applicable to all of the utility's
18retail customers that allow the electric utility to adjust its
19tariffed charges consistent with this subsection (k). The
20determination as to whether any excess funds were collected
21during a given delivery year for the purchase of renewable
22energy resources, and the crediting of any excess funds back
23to retail customers, shall not be made until after the close of
24the delivery year, which will ensure that the maximum amount
25of funds is available to implement the approved long-term
26renewable resources procurement plan during a given delivery

 

 

HB3415- 59 -LRB103 30909 AMQ 57456 b

1year. The amount of excess funds eligible to be credited back
2to retail customers shall be reduced by an amount equal to the
3payment obligations required by any contracts entered into by
4an electric utility under contracts described in subsection
5(b) of Section 1-56 and subsection (c) of Section 1-75 of the
6Illinois Power Agency Act, even if such payments have not yet
7been made and regardless of the delivery year in which those
8payment obligations were incurred. Notwithstanding anything to
9the contrary, including in tariffs authorized by this
10subsection (k) in effect before the effective date of this
11amendatory Act of the 102nd General Assembly, all unspent
12funds as of May 31, 2021, excluding any funds credited to
13customers during any utility billing cycle that commences
14prior to the effective date of this amendatory Act of the 102nd
15General Assembly, shall remain in the utility account and
16shall on a first in, first out basis be used toward utility
17payment obligations under contracts described in subsection
18(b) of Section 1-56 and subsection (c) of Section 1-75 of the
19Illinois Power Agency Act. The electric utility's collections
20under such automatic adjustment clause tariffs to recover the
21costs of renewable energy resources, zero emission credits
22from zero emission facilities, and carbon mitigation credits
23from carbon-free energy resources shall be subject to separate
24annual review, reconciliation, and true-up against actual
25costs by the Commission under a procedure that shall be
26specified in the electric utility's automatic adjustment

 

 

HB3415- 60 -LRB103 30909 AMQ 57456 b

1clause tariffs and that shall be approved by the Commission in
2connection with its approval of such tariffs. The procedure
3shall provide that any difference between the electric
4utility's collections for zero emission credits and carbon
5mitigation credits under the automatic adjustment charges for
6an annual period and the electric utility's actual costs of
7zero emission credits from zero emission facilities and carbon
8mitigation credits from carbon-free energy resources for that
9same annual period shall be refunded to or collected from, as
10applicable, the electric utility's retail customers in
11subsequent periods.
12    Nothing in this subsection (k) is intended to affect,
13limit, or change the right of the electric utility to recover
14the costs associated with the procurement of renewable energy
15resources for periods commencing before, on, or after June 1,
162017, as otherwise provided in the Illinois Power Agency Act.
17    The funding available under this subsection (k), if any,
18for the programs described under subsection (b) of Section
191-56 of the Illinois Power Agency Act shall not reduce the
20amount of funding for the programs described in subparagraph
21(O) of paragraph (1) of subsection (c) of Section 1-75 of the
22Illinois Power Agency Act. If funding is available under this
23subsection (k) for programs described under subsection (b) of
24Section 1-56 of the Illinois Power Agency Act, then the
25long-term renewable resources plan shall provide for the
26Agency to procure contracts in an amount that does not exceed

 

 

HB3415- 61 -LRB103 30909 AMQ 57456 b

1the funding, and the contracts approved by the Commission
2shall be executed by the applicable utility or utilities.
3    (l) A utility that has terminated any contract executed
4under subsection (d-5) or (d-10) of Section 1-75 of the
5Illinois Power Agency Act shall be entitled to recover any
6remaining balance associated with the purchase of zero
7emission credits prior to such termination, and such utility
8shall also apply a credit to its retail customer bills in the
9event of any over-collection.
10    (m)(1) An electric utility that recovers its costs of
11procuring zero emission credits from zero emission facilities
12through a cents-per-kilowatthour charge under subsection (k)
13of this Section shall be subject to the requirements of this
14subsection (m). Notwithstanding anything to the contrary, such
15electric utility shall, beginning on April 30, 2018, and each
16April 30 thereafter until April 30, 2026, calculate whether
17any reduction must be applied to such cents-per-kilowatthour
18charge that is paid by retail customers of the electric
19utility that have opted out of subsections (a) through (j) of
20Section 8-103B of this Act under subsection (l) of Section
218-103B. Such charge shall be reduced for such customers for
22the next delivery year commencing on June 1 based on the amount
23necessary, if any, to limit the annual estimated average net
24increase for the prior calendar year due to the future energy
25investment costs to no more than 1.3% of 5.98 cents per
26kilowatt-hour, which is the average amount paid per

 

 

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1kilowatthour for electric service during the year ending
2December 31, 2015 by Illinois industrial retail customers, as
3reported to the Edison Electric Institute.
4    The calculations required by this subsection (m) shall be
5made only once for each year, and no subsequent rate impact
6determinations shall be made.
7    (2) For purposes of this Section, "future energy
8investment costs" shall be calculated by subtracting the
9cents-per-kilowatthour charge identified in subparagraph (A)
10of this paragraph (2) from the sum of the
11cents-per-kilowatthour charges identified in subparagraph (B)
12of this paragraph (2):
13        (A) The cents-per-kilowatthour charge identified in
14    the electric utility's tariff placed into effect under
15    Section 8-103 of the Public Utilities Act that, on
16    December 1, 2016, was applicable to those retail customers
17    that have opted out of subsections (a) through (j) of
18    Section 8-103B of this Act under subsection (l) of Section
19    8-103B.
20        (B) The sum of the following cents-per-kilowatthour
21    charges applicable to those retail customers that have
22    opted out of subsections (a) through (j) of Section 8-103B
23    of this Act under subsection (l) of Section 8-103B,
24    provided that if one or more of the following charges has
25    been in effect and applied to such customers for more than
26    one calendar year, then each charge shall be equal to the

 

 

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1    average of the charges applied over a period that
2    commences with the calendar year ending December 31, 2017
3    and ends with the most recently completed calendar year
4    prior to the calculation required by this subsection (m):
5            (i) the cents-per-kilowatthour charge to recover
6        the costs incurred by the utility under subsection
7        (d-5) of Section 1-75 of the Illinois Power Agency
8        Act, adjusted for any reductions required under this
9        subsection (m); and
10            (ii) the cents-per-kilowatthour charge to recover
11        the costs incurred by the utility under Section
12        16-107.6 of the Public Utilities Act.
13        If no charge was applied for a given calendar year
14    under item (i) or (ii) of this subparagraph (B), then the
15    value of the charge for that year shall be zero.
16    (3) If a reduction is required by the calculation
17performed under this subsection (m), then the amount of the
18reduction shall be multiplied by the number of years reflected
19in the averages calculated under subparagraph (B) of paragraph
20(2) of this subsection (m). Such reduction shall be applied to
21the cents-per-kilowatthour charge that is applicable to those
22retail customers that have opted out of subsections (a)
23through (j) of Section 8-103B of this Act under subsection (l)
24of Section 8-103B beginning with the next delivery year
25commencing after the date of the calculation required by this
26subsection (m).

 

 

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1    (4) The electric utility shall file a notice with the
2Commission on May 1 of 2018 and each May 1 thereafter until May
31, 2026 containing the reduction, if any, which must be
4applied for the delivery year which begins in the year of the
5filing. The notice shall contain the calculations made
6pursuant to this Section. By October 1 of each year beginning
7in 2018, each electric utility shall notify the Commission if
8it appears, based on an estimate of the calculation required
9in this subsection (m), that a reduction will be required in
10the next year.
11(Source: P.A. 102-662, eff. 9-15-21.)
 
12    (220 ILCS 5/16-111.5)
13    Sec. 16-111.5. Provisions relating to procurement.
14    (a) An electric utility that on December 31, 2005 served
15at least 100,000 customers in Illinois shall procure power and
16energy for its eligible retail customers in accordance with
17the applicable provisions set forth in Section 1-75 of the
18Illinois Power Agency Act and this Section. Beginning with the
19delivery year commencing on June 1, 2024, an electric utility
20serving over 100,000 customers shall also procure energy
21storage credits in accordance with the applicable provisions
22of Section 1-75 of the Illinois Power Agency Act and this
23Section. Beginning with the delivery year commencing on June
241, 2017, such electric utility shall also procure zero
25emission credits from zero emission facilities in accordance

 

 

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1with the applicable provisions set forth in Section 1-75 of
2the Illinois Power Agency Act, and, for years beginning on or
3after June 1, 2017, the utility shall procure renewable energy
4resources in accordance with the applicable provisions set
5forth in Section 1-75 of the Illinois Power Agency Act and this
6Section. Beginning with the delivery year commencing on June
71, 2022, an electric utility serving over 3,000,000 customers
8shall also procure carbon mitigation credits from carbon-free
9energy resources in accordance with the applicable provisions
10set forth in Section 1-75 of the Illinois Power Agency Act and
11this Section. A small multi-jurisdictional electric utility
12that on December 31, 2005 served less than 100,000 customers
13in Illinois may elect to procure power and energy for all or a
14portion of its eligible Illinois retail customers in
15accordance with the applicable provisions set forth in this
16Section and Section 1-75 of the Illinois Power Agency Act.
17This Section shall not apply to a small multi-jurisdictional
18utility until such time as a small multi-jurisdictional
19utility requests the Illinois Power Agency to prepare a
20procurement plan for its eligible retail customers. "Eligible
21retail customers" for the purposes of this Section means those
22retail customers that purchase power and energy from the
23electric utility under fixed-price bundled service tariffs,
24other than those retail customers whose service is declared or
25deemed competitive under Section 16-113 and those other
26customer groups specified in this Section, including

 

 

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

 

 

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

 

 

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

 

 

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1            electric supply service requirements;
2                (B) at least satisfy the demand-response
3            requirements of the regional transmission
4            organization market in which the utility's service
5            territory is located, including, but not limited
6            to, any applicable capacity or dispatch
7            requirements;
8                (C) provide for customers' participation in
9            the stream of benefits produced by the
10            demand-response products;
11                (D) provide for reimbursement by the
12            demand-response provider of the utility for any
13            costs incurred as a result of the failure of the
14            supplier of such products to perform its
15            obligations thereunder; and
16                (E) meet the same credit requirements as apply
17            to suppliers of capacity, in the applicable
18            regional transmission organization market;
19            (iii) monthly forecasted system supply
20        requirements, including expected minimum, maximum, and
21        average values for the planning period;
22            (iv) the proposed mix and selection of standard
23        wholesale products for which contracts will be
24        executed during the next year, separately or in
25        combination, to meet that portion of its load
26        requirements not met through pre-existing contracts,

 

 

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1        including but not limited to monthly 5 x 16 peak period
2        block energy, monthly off-peak wrap energy, monthly 7
3        x 24 energy, annual 5 x 16 energy, other standardized
4        energy or capacity products designed to provide
5        eligible retail customer benefits from commercially
6        deployed advanced technologies including but not
7        limited to high voltage direct current converter
8        stations, as such term is defined in Section 1-10 of
9        the Illinois Power Agency Act, whether or not such
10        product is currently available in wholesale markets,
11        annual off-peak wrap energy, annual 7 x 24 energy,
12        monthly capacity, annual capacity, peak load capacity
13        obligations, capacity purchase plan, and ancillary
14        services;
15            (v) proposed term structures for each wholesale
16        product type included in the proposed procurement plan
17        portfolio of products; and
18            (vi) an assessment of the price risk, load
19        uncertainty, and other factors that are associated
20        with the proposed procurement plan; this assessment,
21        to the extent possible, shall include an analysis of
22        the following factors: contract terms, time frames for
23        securing products or services, fuel costs, weather
24        patterns, transmission costs, market conditions, and
25        the governmental regulatory environment; the proposed
26        procurement plan shall also identify alternatives for

 

 

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1        those portfolio measures that are identified as having
2        significant price risk and mitigation in the form of
3        additional retail customer and ratepayer price,
4        reliability, and environmental benefits from
5        standardized energy products delivered from
6        commercially deployed advanced technologies,
7        including, but not limited to, high voltage direct
8        current converter stations, as such term is defined in
9        Section 1-10 of the Illinois Power Agency Act, whether
10        or not such product is currently available in
11        wholesale markets.
12        (4) Proposed procedures for balancing loads. The
13    procurement plan shall include, for load requirements
14    included in the procurement plan, the process for (i)
15    hourly balancing of supply and demand and (ii) the
16    criteria for portfolio re-balancing in the event of
17    significant shifts in load.
18        (5) Long-Term Renewable Resources Procurement Plan.
19    The Agency shall prepare a long-term renewable resources
20    procurement plan for the procurement of renewable energy
21    credits under Sections 1-56 and 1-75 of the Illinois Power
22    Agency Act for delivery beginning in the 2017 delivery
23    year.
24            (i) The initial long-term renewable resources
25        procurement plan and all subsequent revisions shall be
26        subject to review and approval by the Commission. For

 

 

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1        the purposes of this Section, "delivery year" has the
2        same meaning as in Section 1-10 of the Illinois Power
3        Agency Act. For purposes of this Section, "Agency"
4        shall mean the Illinois Power Agency.
5            (ii) The long-term renewable resources planning
6        process shall be conducted as follows:
7                (A) Electric utilities shall provide a range
8            of load forecasts to the Illinois Power Agency
9            within 45 days of the Agency's request for
10            forecasts, which request shall specify the length
11            and conditions for the forecasts including, but
12            not limited to, the quantity of distributed
13            generation expected to be interconnected for each
14            year.
15                (B) The Agency shall publish for comment the
16            initial long-term renewable resources procurement
17            plan no later than 120 days after the effective
18            date of this amendatory Act of the 99th General
19            Assembly and shall review, and may revise, the
20            plan at least every 2 years thereafter. To the
21            extent practicable, the Agency shall review and
22            propose any revisions to the long-term renewable
23            energy resources procurement plan in conjunction
24            with the Agency's other planning and approval
25            processes conducted under this Section. The
26            initial long-term renewable resources procurement

 

 

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1            plan shall:
2                    (aa) Identify the procurement programs and
3                competitive procurement events consistent with
4                the applicable requirements of the Illinois
5                Power Agency Act and shall be designed to
6                achieve the goals set forth in subsection (c)
7                of Section 1-75 of that Act.
8                    (bb) Include a schedule for procurements
9                for renewable energy credits from
10                utility-scale wind projects, utility-scale
11                solar projects, and brownfield site
12                photovoltaic projects consistent with
13                subparagraph (G) of paragraph (1) of
14                subsection (c) of Section 1-75 of the Illinois
15                Power Agency Act.
16                    (cc) Identify the process whereby the
17                Agency will submit to the Commission for
18                review and approval the proposed contracts to
19                implement the programs required by such plan.
20                Copies of the initial long-term renewable
21            resources procurement plan and all subsequent
22            revisions shall be posted and made publicly
23            available on the Agency's and Commission's
24            websites, and copies shall also be provided to
25            each affected electric utility. An affected
26            utility and other interested parties shall have 45

 

 

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1            days following the date of posting to provide
2            comment to the Agency on the initial long-term
3            renewable resources procurement plan and all
4            subsequent revisions. All comments submitted to
5            the Agency shall be specific, supported by data or
6            other detailed analyses, and, if objecting to all
7            or a portion of the procurement plan, accompanied
8            by specific alternative wording or proposals. All
9            comments shall be posted on the Agency's and
10            Commission's websites. During this 45-day comment
11            period, the Agency shall hold at least one public
12            hearing within each utility's service area that is
13            subject to the requirements of this paragraph (5)
14            for the purpose of receiving public comment.
15            Within 21 days following the end of the 45-day
16            review period, the Agency may revise the long-term
17            renewable resources procurement plan based on the
18            comments received and shall file the plan with the
19            Commission for review and approval.
20                (C) Within 14 days after the filing of the
21            initial long-term renewable resources procurement
22            plan or any subsequent revisions, any person
23            objecting to the plan may file an objection with
24            the Commission. Within 21 days after the filing of
25            the plan, the Commission shall determine whether a
26            hearing is necessary. The Commission shall enter

 

 

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1            its order confirming or modifying the initial
2            long-term renewable resources procurement plan or
3            any subsequent revisions within 120 days after the
4            filing of the plan by the Illinois Power Agency.
5                (D) The Commission shall approve the initial
6            long-term renewable resources procurement plan and
7            any subsequent revisions, including expressly the
8            forecast used in the plan and taking into account
9            that funding will be limited to the amount of
10            revenues actually collected by the utilities, if
11            the Commission determines that the plan will
12            reasonably and prudently accomplish the
13            requirements of Section 1-56 and subsection (c) of
14            Section 1-75 of the Illinois Power Agency Act. The
15            Commission shall also approve the process for the
16            submission, review, and approval of the proposed
17            contracts to procure renewable energy credits or
18            implement the programs authorized by the
19            Commission pursuant to a long-term renewable
20            resources procurement plan approved under this
21            Section.
22                In approving any long-term renewable resources
23            procurement plan after the effective date of this
24            amendatory Act of the 102nd General Assembly, the
25            Commission shall approve or modify the Agency's
26            proposal for minimum equity standards pursuant to

 

 

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

 

 

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1        process specified in the provisions relating to
2        electricity procurement in subsections (e) through (i)
3        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 a tariff pursuant to subsection
10        (i-5), as applicable, of Section 16-108 of this Act. A
11        utility shall not be required to advance any payment
12        or pay any amounts under this Section that exceed the
13        actual amount of revenues collected by the utility
14        under paragraph (6) of subsection (c) of Section 1-75
15        of the Illinois Power Agency Act, subsection (c-5) of
16        Section 1-75 of the Illinois Power Agency Act, and
17        subsection (k) or subsection (i-5), as applicable, of
18        Section 16-108 of this Act, and contracts executed
19        under this Section shall expressly incorporate this
20        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

 

 

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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        (6) Long-Term Energy Storage Resources Procurement
6    Plan. The Agency shall prepare an energy storage resources
7    procurement plan for the procurement of energy storage
8    credits in compliance with this Section and Section 1-93
9    of the Illinois Power Agency Act.
10            (i) The initial energy storage resources
11        procurement plan and all subsequent revisions shall be
12        subject to review and approval by the Commission. For
13        purposes of this Section, "delivery year" has the same
14        meaning as in Section 1-10 of the Illinois Power
15        Agency Act. For purposes of this Section, "Agency"
16        shall mean the Illinois Power Agency.
17            (ii) The energy storage resources planning process
18        shall be conducted as follows:
19                (A) the Agency shall publish for comment the
20            initial energy storage resources procurement plan
21            no later than 120 days after the effective date of
22            this amendatory Act of the 103rd General Assembly
23            and shall review, and may revise, the plan at
24            least every 2 years thereafter. To the extent
25            practicable, the Agency shall review and propose
26            any revisions to the energy storage resources

 

 

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1            procurement plan in conjunction with the Agency's
2            other planning and approval processes conducted
3            under this Section. The initial energy storage
4            resources procurement plan shall:
5                    (aa) include a schedule for procurements
6                for energy storage credits from qualified
7                energy storage systems consistent with Section
8                1-93 of the Illinois Power Agency Act; and
9                    (bb) identify the process whereby the
10                Agency will submit to the Commission for
11                review and approval the proposed contracts to
12                implement the programs required by such plan.
13                Copies of the initial energy storage resources
14                procurement plan and all subsequent revisions
15                shall be posted and made publicly available on
16                the Agency's and Commission's websites, and
17                copies shall also be provided to each affected
18                electric utility. An affected utility and
19                other interested parties shall have 45 days
20                following the date of posting to provide
21                comment to the Agency on the initial energy
22                storage resources procurement plan and all
23                subsequent revisions. All comments shall be
24                posed on the Agency's and Commission's
25                websites; and
26                (B) the Commission shall approve the initial

 

 

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1            energy storage resources procurement plan and any
2            subsequent revisions if the Commission determines
3            that the plan will reasonably and prudently
4            accomplish the requirements of Section 1-93 of the
5            Illinois Power Agency Act. The Commission shall
6            also approve the process for the submission,
7            review, and approval of the proposed contracts to
8            procure energy storage credits or implement the
9            programs authorized by the Commission pursuant to
10            a long-term energy storage resources procurement
11            plan approved under this Section.
12                In approving any long-term energy storage
13            procurement plan after the effective date of this
14            amendatory Act of the 103rd General Assembly, the
15            Commission shall approve or modify the Agency's
16            proposal for minimum equity standards pursuant to
17            subsection (c-10) of Section 1-75 of the Illinois
18            Power Agency Act. The Commission shall consider
19            any analysis performed by the Agency in developing
20            its proposal, including past performance,
21            availability of equity eligible contractors, and
22            availability of equity eligible persons at the
23            time the long-term renewable resources procurement
24            plan is approved.
25            (iii) The Agency or third parties contracted by
26        the Agency shall implement all programs authorized by

 

 

HB3415- 81 -LRB103 30909 AMQ 57456 b

1        the Commission in an approved long-term energy storage
2        procurement plan without further review and approval
3        by the Commission. Third parties shall not begin
4        implementing any programs or receive any payment under
5        this Section until the Commission has approved the
6        long-term storage contract.
7            (iv) An electric utility shall recover its costs
8        associated with the procurement of energy storage
9        credits under this Section and pursuant to Section
10        1-93 of the Illinois Power Agency Act through an
11        automatic adjustment clause tariff under subsection
12        (k) or a tariff pursuant to subsection (i-5), as
13        applicable, of Section 16-108.
14    (b-5) An electric utility that as of January 1, 2019
15served more than 300,000 retail customers in this State shall
16purchase renewable energy credits from new renewable energy
17facilities constructed at or adjacent to the sites of
18coal-fueled electric generating facilities in this State in
19accordance with subsection (c-5) of Section 1-75 of the
20Illinois Power Agency Act. Except as expressly provided in
21this Section, the plans and procedures for such procurements
22shall not be included in the procurement plans provided for in
23this Section, but rather shall be conducted and implemented
24solely in accordance with subsection (c-5) of Section 1-75 of
25the Illinois Power Agency Act.
26    (c) The provisions of this subsection (c) shall not apply

 

 

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1to procurements conducted pursuant to subsection (c-5) of
2Section 1-75 of the Illinois Power Agency Act. However, the
3Agency may retain a procurement administrator to assist the
4Agency in planning and carrying out the procurement events and
5implementing the other requirements specified in such
6subsection (c-5) of Section 1-75 of the Illinois Power Agency
7Act, with the costs incurred by the Agency for the procurement
8administrator to be recovered through fees charged to
9applicants for selection to sell and deliver renewable energy
10credits to electric utilities pursuant to subsection (c-5) of
11Section 1-75 of the Illinois Power Agency Act. The procurement
12process set forth in Section 1-75 of the Illinois Power Agency
13Act and subsection (e) of this Section shall be administered
14by a procurement administrator and monitored by a procurement
15monitor.
16        (1) The procurement administrator shall:
17            (i) design the final procurement process in
18        accordance with Section 1-75 of the Illinois Power
19        Agency Act and subsection (e) of this Section
20        following Commission approval of the procurement plan;
21            (ii) develop benchmarks in accordance with
22        subsection (e)(3) to be used to evaluate bids; these
23        benchmarks shall be submitted to the Commission for
24        review and approval on a confidential basis prior to
25        the procurement event;
26            (iii) serve as the interface between the electric

 

 

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1        utility and suppliers;
2            (iv) manage the bidder pre-qualification and
3        registration process;
4            (v) obtain the electric utilities' agreement to
5        the final form of all supply contracts and credit
6        collateral agreements;
7            (vi) administer the request for proposals process;
8            (vii) have the discretion to negotiate to
9        determine whether bidders are willing to lower the
10        price of bids that meet the benchmarks approved by the
11        Commission; any post-bid negotiations with bidders
12        shall be limited to price only and shall be completed
13        within 24 hours after opening the sealed bids and
14        shall be conducted in a fair and unbiased manner; in
15        conducting the negotiations, there shall be no
16        disclosure of any information derived from proposals
17        submitted by competing bidders; if information is
18        disclosed to any bidder, it shall be provided to all
19        competing bidders;
20            (viii) maintain confidentiality of supplier and
21        bidding information in a manner consistent with all
22        applicable laws, rules, regulations, and tariffs;
23            (ix) submit a confidential report to the
24        Commission recommending acceptance or rejection of
25        bids;
26            (x) notify the utility of contract counterparties

 

 

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1        and contract specifics; and
2            (xi) administer related contingency procurement
3        events.
4        (2) The procurement monitor, who shall be retained by
5    the Commission, shall:
6            (i) monitor interactions among the procurement
7        administrator, suppliers, and utility;
8            (ii) monitor and report to the Commission on the
9        progress of the procurement process;
10            (iii) provide an independent confidential report
11        to the Commission regarding the results of the
12        procurement event;
13            (iv) assess compliance with the procurement plans
14        approved by the Commission for each utility that on
15        December 31, 2005 provided electric service to at
16        least 100,000 customers in Illinois and for each small
17        multi-jurisdictional utility that on December 31, 2005
18        served less than 100,000 customers in Illinois;
19            (v) preserve the confidentiality of supplier and
20        bidding information in a manner consistent with all
21        applicable laws, rules, regulations, and tariffs;
22            (vi) provide expert advice to the Commission and
23        consult with the procurement administrator regarding
24        issues related to procurement process design, rules,
25        protocols, and policy-related matters; and
26            (vii) consult with the procurement administrator

 

 

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1        regarding the development and use of benchmark
2        criteria, standard form contracts, credit policies,
3        and bid documents.
4    (d) Except as provided in subsection (j), the planning
5process shall be conducted as follows:
6        (1) Beginning in 2008, each Illinois utility procuring
7    power pursuant to this Section shall annually provide a
8    range of load forecasts to the Illinois Power Agency by
9    July 15 of each year, or such other date as may be required
10    by the Commission or Agency. The load forecasts shall
11    cover the 5-year procurement planning period for the next
12    procurement plan and shall include hourly data
13    representing a high-load, low-load, and expected-load
14    scenario for the load of those retail customers included
15    in the plan's electric supply service requirements. The
16    utility shall provide supporting data and assumptions for
17    each of the scenarios.
18        (2) Beginning in 2008, the Illinois Power Agency shall
19    prepare a procurement plan by August 15th of each year, or
20    such other date as may be required by the Commission. The
21    procurement plan shall identify the portfolio of
22    demand-response and power and energy products to be
23    procured. Cost-effective demand-response measures shall be
24    procured as set forth in item (iii) of subsection (b) of
25    this Section. Copies of the procurement plan shall be
26    posted and made publicly available on the Agency's and

 

 

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1    Commission's websites, and copies shall also be provided
2    to each affected electric utility. An affected utility
3    shall have 30 days following the date of posting to
4    provide comment to the Agency on the procurement plan.
5    Other interested entities also may comment on the
6    procurement plan. All comments submitted to the Agency
7    shall be specific, supported by data or other detailed
8    analyses, and, if objecting to all or a portion of the
9    procurement plan, accompanied by specific alternative
10    wording or proposals. All comments shall be posted on the
11    Agency's and Commission's websites. During this 30-day
12    comment period, the Agency shall hold at least one public
13    hearing within each utility's service area for the purpose
14    of receiving public comment on the procurement plan.
15    Within 14 days following the end of the 30-day review
16    period, the Agency shall revise the procurement plan as
17    necessary based on the comments received and file the
18    procurement plan with the Commission and post the
19    procurement plan on the websites.
20        (3) Within 5 days after the filing of the procurement
21    plan, any person objecting to the procurement plan shall
22    file an objection with the Commission. Within 10 days
23    after the filing, the Commission shall determine whether a
24    hearing is necessary. The Commission shall enter its order
25    confirming or modifying the procurement plan within 90
26    days after the filing of the procurement plan by the

 

 

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1    Illinois Power Agency.
2        (4) The Commission shall approve the procurement plan,
3    including expressly the forecast used in the procurement
4    plan, if the Commission determines that it will ensure
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability.
9        (4.5) The Commission shall review the Agency's
10    recommendations for the selection of applicants to enter
11    into long-term contracts for the sale and delivery of
12    renewable energy credits from new renewable energy
13    facilities to be constructed at or adjacent to the sites
14    of coal-fueled electric generating facilities in this
15    State in accordance with the provisions of subsection
16    (c-5) of Section 1-75 of the Illinois Power Agency Act,
17    and shall approve the Agency's recommendations if the
18    Commission determines that the applicants recommended by
19    the Agency for selection, the proposed new renewable
20    energy facilities to be constructed, the amounts of
21    renewable energy credits to be delivered pursuant to the
22    contracts, and the other terms of the contracts, are
23    consistent with the requirements of subsection (c-5) of
24    Section 1-75 of the Illinois Power Agency Act.
25    (e) The procurement process shall include each of the
26following components:

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (h) For the procurement of standard wholesale products,
2the names of the successful bidders and the load weighted
3average of the winning bid prices for each contract type and
4for each contract term shall be made available to the public at
5the time of Commission approval of a procurement event. For
6procurements conducted to meet the requirements of subsection
7(b) of Section 1-56 or subsection (c) of Section 1-75 of the
8Illinois Power Agency Act governed by the provisions of this
9Section, the address and nameplate capacity of the new
10renewable energy generating facility proposed by a winning
11bidder shall also be made available to the public at the time
12of Commission approval of a procurement event, along with the
13business address and contact information for any winning
14bidder. An estimate or approximation of the nameplate capacity
15of the new renewable energy generating facility may be
16disclosed if necessary to protect the confidentiality of
17individual bid prices.
18    The Commission, the procurement monitor, the procurement
19administrator, the Illinois Power Agency, and all participants
20in the procurement process shall maintain the confidentiality
21of all other supplier and bidding information in a manner
22consistent with all applicable laws, rules, regulations, and
23tariffs. Confidential information, including the confidential
24reports submitted by the procurement administrator and
25procurement monitor pursuant to subsection (f) of this
26Section, shall not be made publicly available and shall not be

 

 

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

 

 

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1have the same experience and expertise as is required of a
2procurement administrator hired pursuant to Section 1-75 of
3the Illinois Power Agency Act. Copies of the procurement plan
4shall be posted and made publicly available on the
5Commission's website. The initial procurement plan may include
6contracts for renewable resources that extend beyond May 2009.
7        (i) Within 14 days following filing of the initial
8    procurement plan, any person may file a detailed objection
9    with the Commission contesting the procurement plan
10    submitted by the electric utility. All objections to the
11    electric utility's plan shall be specific, supported by
12    data or other detailed analyses. The electric utility may
13    file a response to any objections to its procurement plan
14    within 7 days after the date objections are due to be
15    filed. Within 7 days after the date the utility's response
16    is due, the Commission shall determine whether a hearing
17    is necessary. If it determines that a hearing is
18    necessary, it shall require the hearing to be completed
19    and issue an order on the procurement plan within 60 days
20    after the filing of the procurement plan by the electric
21    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
15its costs 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
19pass through both the costs incurred by the utility in
20procuring a supply of electric power and energy for the
21applicable customer classes with no mark-up or return on the
22price paid by the utility for that supply, plus any just and
23reasonable costs that the utility incurs in arranging and
24providing for the supply of electric power and energy. The
25formula rate or charge shall also contain provisions that
26ensure that its application does not result in over or under

 

 

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

 

 

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1beginning June 1, 2017, all of the costs incurred by the
2electric utility associated with the purchase of renewable
3energy resources in accordance with Sections 1-56 and 1-75 of
4the Illinois Power Agency Act, and all of the costs incurred by
5the electric utility in purchasing renewable energy credits in
6accordance with subsection (c-5) of Section 1-75 of the
7Illinois Power Agency Act, and all costs incurred by the
8electric utility in purchasing energy storage credits in
9accordance with Section 1-93 of the Illinois Power Agency Act
10shall be recovered through the electric utility's tariffed
11charges applicable to all of its retail customers, as
12specified in subsection (k) or subsection (i-5), as
13applicable, of Section 16-108 of this Act, and shall not be
14recovered through the electric utility's tariffed charges for
15electric power and energy supply to its eligible retail
16customers.
17    (m) The Commission has the authority to adopt rules to
18carry out the provisions of this Section. For the public
19interest, safety, and welfare, the Commission also has
20authority to adopt rules to carry out the provisions of this
21Section on an emergency basis immediately following August 28,
222007 (the effective date of Public Act 95-481).
23    (n) Notwithstanding any other provision of this Act, any
24affiliated electric utilities that submit a single procurement
25plan covering their combined needs may procure for those
26combined needs in conjunction with that plan, and may enter

 

 

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1jointly into power supply contracts, purchases, and other
2procurement arrangements, and allocate capacity and energy and
3cost responsibility therefor among themselves in proportion to
4their requirements.
5    (o) On or before June 1 of each year, the Commission shall
6hold an informal hearing for the purpose of receiving comments
7on the prior year's procurement process and any
8recommendations for change.
9    (p) An electric utility subject to this Section may
10propose to invest, lease, own, or operate an electric
11generation facility as part of its procurement plan, provided
12the utility demonstrates that such facility is the least-cost
13option to provide electric service to those retail customers
14included in the plan's electric supply service requirements.
15If the facility is shown to be the least-cost option and is
16included in a procurement plan prepared in accordance with
17Section 1-75 of the Illinois Power Agency Act and this
18Section, then the electric utility shall make a filing
19pursuant to Section 8-406 of this Act, and may request of the
20Commission any statutory relief required thereunder. If the
21Commission grants all of the necessary approvals for the
22proposed facility, such supply shall thereafter be considered
23as a pre-existing contract under subsection (b) of this
24Section. The Commission shall in any order approving a
25proposal under this subsection specify how the utility will
26recover the prudently incurred costs of investing in, leasing,

 

 

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1owning, or operating such generation facility through just and
2reasonable rates charged to those retail customers included in
3the plan's electric supply service requirements. Cost recovery
4for facilities included in the utility's procurement plan
5pursuant to this subsection shall not be subject to review
6under or in any way limited by the provisions of Section
716-111(i) of this Act. Nothing in this Section is intended to
8prohibit a utility from filing for a fuel adjustment clause as
9is otherwise permitted under Section 9-220 of this Act.
10    (q) If the Illinois Power Agency filed with the
11Commission, under Section 16-111.5 of this Act, its proposed
12procurement plan for the period commencing June 1, 2017, and
13the Commission has not yet entered its final order approving
14the plan on or before the effective date of this amendatory Act
15of the 99th General Assembly, then the Illinois Power Agency
16shall file a notice of withdrawal with the Commission, after
17the effective date of this amendatory Act of the 99th General
18Assembly, to withdraw the proposed procurement of renewable
19energy resources to be approved under the plan, other than the
20procurement of renewable energy credits from distributed
21renewable energy generation devices using funds previously
22collected from electric utilities' retail customers that take
23service pursuant to electric utilities' hourly pricing tariff
24or tariffs and, for an electric utility that serves less than
25100,000 retail customers in the State, other than the
26procurement of renewable energy credits from distributed

 

 

HB3415- 102 -LRB103 30909 AMQ 57456 b

1renewable energy generation devices. Upon receipt of the
2notice, the Commission shall enter an order that approves the
3withdrawal of the proposed procurement of renewable energy
4resources from the plan. The initially proposed procurement of
5renewable energy resources shall not be approved or be the
6subject of any further hearing, investigation, proceeding, or
7order of any kind.
8    This amendatory Act of the 99th General Assembly preempts
9and supersedes any order entered by the Commission that
10approved the Illinois Power Agency's procurement plan for the
11period commencing June 1, 2017, to the extent it is
12inconsistent with the provisions of this amendatory Act of the
1399th General Assembly. To the extent any previously entered
14order approved the procurement of renewable energy resources,
15the portion of that order approving the procurement shall be
16void, other than the procurement of renewable energy credits
17from distributed renewable energy generation devices using
18funds previously collected from electric utilities' retail
19customers that take service under electric utilities' hourly
20pricing tariff or tariffs and, for an electric utility that
21serves less than 100,000 retail customers in the State, other
22than the procurement of renewable energy credits for
23distributed renewable energy generation devices.
24(Source: P.A. 102-662, eff. 9-15-21.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.