103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3636

 

Introduced 2/9/2024, by Sen. Bill Cunningham

 

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 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. Makes other provisions. Defines terms. Makes corresponding changes in the Public Utilities Act. Effective immediately.


LRB103 39306 CES 69460 b

 

 

A BILL FOR

 

SB3636LRB103 39306 CES 69460 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 content, unless the clean coal facility does not
5use 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 content, and that has a valid and effective permit
5to 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 of dams;
20        (2) is interconnected at the distribution system level
21    of an electric utility as defined in this Section, a
22    municipal utility as defined in this Section that owns or
23    operates electric distribution facilities, a public
24    utility as defined in Section 3-105 of the Public
25    Utilities Act, or an electric cooperative, as defined in
26    Section 3-119 of the Public Utilities Act;

 

 

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

 

 

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1    required by lenders, and other financing costs, and other
2    expenses for professional services; and
3        (5) the costs of plans, specifications, site study and
4    investigation, installation, surveys, other Agency costs
5    and estimates of costs, and other expenses necessary or
6    incidental to determining the feasibility of any project,
7    together with such other expenses as may be necessary or
8    incidental to the financing, insuring, acquisition, and
9    construction of a specific project and starting up,
10    commissioning, and placing that project in operation.
11    "Delivery services" has the same definition as found in
12Section 16-102 of the Public Utilities Act.
13    "Delivery year" means the consecutive 12-month period
14beginning June 1 of a given year and ending May 31 of the
15following year.
16    "Department" means the Department of Commerce and Economic
17Opportunity.
18    "Director" means the Director of the Illinois Power
19Agency.
20    "Demand-response" means measures that decrease peak
21electricity demand or shift demand from peak to off-peak
22periods.
23    "Distributed renewable energy generation device" means a
24device that is:
25        (1) powered by wind, solar thermal energy,
26    photovoltaic cells or panels, biodiesel, crops and

 

 

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1    untreated and unadulterated organic waste biomass, tree
2    waste, and hydropower that does not involve new
3    construction of dams, waste heat to power systems, or
4    qualified combined heat and power systems;
5        (2) interconnected at the distribution system level of
6    either an electric utility as defined in this Section, a
7    municipal utility as defined in this Section that owns or
8    operates electric distribution facilities, or a rural
9    electric cooperative as defined in Section 3-119 of the
10    Public Utilities Act;
11        (3) located on the customer side of the customer's
12    electric meter and is primarily used to offset that
13    customer's electricity load; and
14        (4) (blank).
15    "Energy efficiency" means measures that reduce the amount
16of electricity or natural gas consumed in order to achieve a
17given end use. "Energy efficiency" includes voltage
18optimization measures that optimize the voltage at points on
19the electric distribution voltage system and thereby reduce
20electricity consumption by electric customers' end use
21devices. "Energy efficiency" also includes measures that
22reduce the total Btus of electricity, natural gas, and other
23fuels needed to meet the end use or uses.
24    "Energy storage capacity" means the nameplate capacity of
25a contracted energy storage system, measured in megawatts AC.
26    "Energy storage credit" means a fungible credit that

 

 

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1represents the flexibility value of a contracted energy
2storage system. An energy storage credit is produced for each
3one megawatt of energy storage capacity multiplied by the
4energy storage duration each month that the contracted energy
5storage system is interconnected with wholesale electricity
6markets.
7    "Energy storage credit counterparty" has the same meaning
8as "public utility" as defined in Section 3-105 of the Public
9Utilities Act.
10    "Energy storage credit value" means a price, measured in
11dollars per credit, calculated for each month for a contracted
12energy storage system.
13    "Energy storage duration" means the number of hours over
14which an energy storage system is capable of continuously
15discharging energy at its full energy storage capacity.
16    "Energy storage system" means commercially available
17technology that is capable of absorbing energy and storing it
18for use at a later time, including, but not limited to,
19electrochemical, thermal, and electromechanical technologies.
20    "Electric utility" has the same definition as found in
21Section 16-102 of the Public Utilities Act.
22    "Equity investment eligible community" or "eligible
23community" are synonymous and mean the geographic areas
24throughout Illinois which would most benefit from equitable
25investments by the State designed to combat discrimination.
26Specifically, the eligible communities shall be defined as the

 

 

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1following areas:
2        (1) R3 Areas as established pursuant to Section 10-40
3    of the Cannabis Regulation and Tax Act, where residents
4    have historically been excluded from economic
5    opportunities, including opportunities in the energy
6    sector; and
7        (2) environmental justice communities, as defined by
8    the Illinois Power Agency pursuant to the Illinois Power
9    Agency Act, where residents have historically been subject
10    to disproportionate burdens of pollution, including
11    pollution from the energy sector.
12    "Equity eligible persons" or "eligible persons" means
13persons who would most benefit from equitable investments by
14the State designed to combat discrimination, specifically:
15        (1) persons who graduate from or are current or former
16    participants in the Clean Jobs Workforce Network Program,
17    the Clean Energy Contractor Incubator Program, the
18    Illinois Climate Works Preapprenticeship Program,
19    Returning Residents Clean Jobs Training Program, or the
20    Clean Energy Primes Contractor Accelerator Program, and
21    the solar training pipeline and multi-cultural jobs
22    program created in paragraphs (a)(1) and (a)(3) of Section
23    16-208.12 of the Public Utilities Act;
24        (2) persons who are graduates of or currently enrolled
25    in the foster care system;
26        (3) persons who were formerly incarcerated;

 

 

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1        (4) persons whose primary residence is in an equity
2    investment eligible community.
3    "Equity eligible contractor" means a business that is
4majority-owned by eligible persons, or a nonprofit or
5cooperative that is majority-governed by eligible persons, or
6is a natural person that is an eligible person offering
7personal services as an independent contractor.
8    "Facility" means an electric generating unit or a
9co-generating unit that produces electricity along with
10related equipment necessary to connect the facility to an
11electric transmission or distribution system.
12    "Firm energy resource" means electrical resources,
13including long-duration energy storage and multi-day energy
14storage, that can individually, or in combination, deliver
15electricity with guaranteed high availability at rated
16capacity for the expected duration of multi-day extreme or
17atypical weather events, including periods of low renewable
18energy generation, and facilitate integration of eligible
19renewable energy resources into the electrical grid and the
20transition to a zero-carbon electrical grid.
21    "General contractor" means the entity or organization with
22main responsibility for the building of a construction project
23and who is the party signing the prime construction contract
24for the project.
25    "Governmental aggregator" means one or more units of local
26government that individually or collectively procure

 

 

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1electricity to serve residential retail electrical loads
2located within its or their jurisdiction.
3    "High voltage direct current converter station" means the
4collection of equipment that converts direct current energy
5from a high voltage direct current transmission line into
6alternating current using Voltage Source Conversion technology
7and that is interconnected with transmission or distribution
8assets located in Illinois.
9    "High voltage direct current renewable energy credit"
10means a renewable energy credit associated with a renewable
11energy resource where the renewable energy resource has
12entered into a contract to transmit the energy associated with
13such renewable energy credit over high voltage direct current
14transmission facilities.
15    "High voltage direct current transmission facilities"
16means the collection of installed equipment that converts
17alternating current energy in one location to direct current
18and transmits that direct current energy to a high voltage
19direct current converter station using Voltage Source
20Conversion technology. "High voltage direct current
21transmission facilities" includes the high voltage direct
22current converter station itself and associated high voltage
23direct current transmission lines. Notwithstanding the
24preceding, after September 15, 2021 (the effective date of
25Public Act 102-662), an otherwise qualifying collection of
26equipment does not qualify as high voltage direct current

 

 

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1transmission facilities unless its developer entered into a
2project labor agreement, is capable of transmitting
3electricity at 525kv with an Illinois converter station
4located and interconnected in the region of the PJM
5Interconnection, LLC, and the system does not operate as a
6public utility, as that term is defined in Section 3-105 of the
7Public Utilities Act.
8    "Hydropower" means any method of electricity generation or
9storage that results from the flow of water, including
10impoundment facilities, diversion facilities, and pumped
11storage facilities.
12    "Index price" means the real-time energy settlement price
13at the applicable Illinois trading hub, such as PJM-NIHUB or
14MISO-IL, for a given settlement period.
15    "Indexed renewable energy credit" means a tradable credit
16that represents the environmental attributes of one megawatt
17hour of energy produced from a renewable energy resource, the
18price of which shall be calculated by subtracting the strike
19price offered by a new utility-scale wind project or a new
20utility-scale photovoltaic project from the index price in a
21given settlement period.
22    "Indexed renewable energy credit counterparty" has the
23same meaning as "public utility" as defined in Section 3-105
24of the Public Utilities Act.
25    "Local government" means a unit of local government as
26defined in Section 1 of Article VII of the Illinois

 

 

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1Constitution.
2    "Long-duration energy storage" means an energy storage
3system capable of dispatching energy at its full rated
4capacity for 10 hours or greater.
5    "Long-term energy storage contract" means a contract for
6the purchase of energy storage credits generated by an energy
7storage system for a period of at least 15 years.
8    "Multi-day energy storage" means an energy storage system
9capable of dispatching energy at its full rated capacity for
10greater than 24 hours.
11    "Modernized" or "retooled" means the construction, repair,
12maintenance, or significant expansion of turbines and existing
13hydropower dams.
14    "Municipality" means a city, village, or incorporated
15town.
16    "Municipal utility" means a public utility owned and
17operated by any subdivision or municipal corporation of this
18State.
19    "Nameplate capacity" means the aggregate inverter
20nameplate capacity in kilowatts AC.
21    "Person" means any natural person, firm, partnership,
22corporation, either domestic or foreign, company, association,
23limited liability company, joint stock company, or association
24and includes any trustee, receiver, assignee, or personal
25representative thereof.
26    "Project" means the planning, bidding, and construction of

 

 

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1a facility.
2    "Project labor agreement" means a pre-hire collective
3bargaining agreement that covers all terms and conditions of
4employment on a specific construction project and must include
5the following:
6        (1) provisions establishing the minimum hourly wage
7    for each class of labor organization employee;
8        (2) provisions establishing the benefits and other
9    compensation for each class of labor organization
10    employee;
11        (3) provisions establishing that no strike or disputes
12    will be engaged in by the labor organization employees;
13        (4) provisions establishing that no lockout or
14    disputes will be engaged in by the general contractor
15    building the project; and
16        (5) provisions for minorities and women, as defined
17    under the Business Enterprise for Minorities, Women, and
18    Persons with Disabilities Act, setting forth goals for
19    apprenticeship hours to be performed by minorities and
20    women and setting forth goals for total hours to be
21    performed by underrepresented minorities and women.
22    A labor organization and the general contractor building
23the project shall have the authority to include other terms
24and conditions as they deem necessary.
25    "Public utility" has the same definition as found in
26Section 3-105 of the Public Utilities Act.

 

 

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1    "Qualified combined heat and power systems" means systems
2that, either simultaneously or sequentially, produce
3electricity and useful thermal energy from a single fuel
4source. Such systems are eligible for "renewable energy
5credits" in an amount equal to its total energy output where a
6renewable fuel is consumed or in an amount equal to the net
7reduction in nonrenewable fuel consumed on a total energy
8output basis.
9    "Real property" means any interest in land together with
10all structures, fixtures, and improvements thereon, including
11lands under water and riparian rights, any easements,
12covenants, licenses, leases, rights-of-way, uses, and other
13interests, together with any liens, judgments, mortgages, or
14other claims or security interests related to real property.
15    "Reference capacity price" means a price, measured in
16dollars per megawatt-hours, representing the revenue available
17for a contracted energy storage system through participation
18in the MISO Planning Resource Auction or the PJM Base Residual
19Auction, or their successor resource adequacy constructs. The
20reference capacity price shall be calculated by adjusting the
21most recent clearing price in the MISO Planning Resource
22Auction or the PJM Base Residual Action, or their successor
23resource adequacy constructs, by the accredited capacity of
24the contracted energy storage system and converting the units
25to megawatt-hours.
26    "Renewable energy credit" means a tradable credit that

 

 

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1represents the environmental attributes of one megawatt hour
2of energy produced from a renewable energy resource.
3    "Renewable energy resources" includes energy and its
4associated renewable energy credit or renewable energy credits
5from wind, solar thermal energy, photovoltaic cells and
6panels, biodiesel, anaerobic digestion, crops and untreated
7and unadulterated organic waste biomass, and hydropower that
8does not involve new construction of dams, waste heat to power
9systems, or qualified combined heat and power systems. For
10purposes of this Act, landfill gas produced in the State is
11considered a renewable energy resource. "Renewable energy
12resources" does not include the incineration or burning of
13tires, garbage, general household, institutional, and
14commercial waste, industrial lunchroom or office waste,
15landscape waste, railroad crossties, utility poles, or
16construction or demolition debris, other than untreated and
17unadulterated waste wood. "Renewable energy resources" also
18includes high voltage direct current renewable energy credits
19and the associated energy converted to alternating current by
20a high voltage direct current converter station to the extent
21that: (1) the generator of such renewable energy resource
22contracted with a third party to transmit the energy over the
23high voltage direct current transmission facilities, and (2)
24the third-party contracting for delivery of renewable energy
25resources over the high voltage direct current transmission
26facilities have ownership rights over the unretired associated

 

 

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1high voltage direct current renewable energy credit.
2    "Retail customer" has the same definition as found in
3Section 16-102 of the Public Utilities Act.
4    "Revenue bond" means any bond, note, or other evidence of
5indebtedness issued by the Authority, the principal and
6interest of which is payable solely from revenues or income
7derived from any project or activity of the Agency.
8    "Sequester" means permanent storage of carbon dioxide by
9injecting it into a saline aquifer, a depleted gas reservoir,
10or an oil reservoir, directly or through an enhanced oil
11recovery process that may involve intermediate storage,
12regardless of whether these activities are conducted by a
13clean coal facility, a clean coal SNG facility, a clean coal
14SNG brownfield facility, or a party with which a clean coal
15facility, clean coal SNG facility, or clean coal SNG
16brownfield facility has contracted for such purposes.
17    "Service area" has the same definition as found in Section
1816-102 of the Public Utilities Act.
19    "Settlement period" means the period of time utilized by
20MISO and PJM and their successor organizations as the basis
21for settlement calculations in the real-time energy market.
22    "Sourcing agreement" means (i) in the case of an electric
23utility, an agreement between the owner of a clean coal
24facility and such electric utility, which agreement shall have
25terms and conditions meeting the requirements of paragraph (3)
26of subsection (d) of Section 1-75, (ii) in the case of an

 

 

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1alternative retail electric supplier, an agreement between the
2owner of a clean coal facility and such alternative retail
3electric supplier, which agreement shall have terms and
4conditions meeting the requirements of Section 16-115(d)(5) of
5the Public Utilities Act, and (iii) in case of a gas utility,
6an agreement between the owner of a clean coal SNG brownfield
7facility and the gas utility, which agreement shall have the
8terms and conditions meeting the requirements of subsection
9(h-1) of Section 9-220 of the Public Utilities Act.
10    "Strike price" means a contract price for energy and
11renewable energy credits from a new utility-scale wind project
12or a new utility-scale photovoltaic project.
13    "Subscriber" means a person who (i) takes delivery service
14from an electric utility, and (ii) has a subscription of no
15less than 200 watts to a community renewable generation
16project that is located in the electric utility's service
17area. No subscriber's subscriptions may total more than 40% of
18the nameplate capacity of an individual community renewable
19generation project. Entities that are affiliated by virtue of
20a common parent shall not represent multiple subscriptions
21that total more than 40% of the nameplate capacity of an
22individual community renewable generation project.
23    "Subscription" means an interest in a community renewable
24generation project expressed in kilowatts, which is sized
25primarily to offset part or all of the subscriber's
26electricity usage.

 

 

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

 

 

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1shall be included of financial costs likely to be imposed by
2future regulations and legislation on emissions of greenhouse
3gases. In discounting future societal costs and benefits for
4the purpose of calculating net present values, a societal
5discount rate based on actual, long-term Treasury bond yields
6should be used. Notwithstanding anything to the contrary, the
7TRC test shall not include or take into account a calculation
8of market price suppression effects or demand reduction
9induced price effects.
10    "Utility-scale solar project" means an electric generating
11facility that:
12        (1) generates electricity using photovoltaic cells;
13    and
14        (2) has a nameplate capacity that is greater than
15    5,000 kilowatts.
16    "Utility-scale wind project" means an electric generating
17facility that:
18        (1) generates electricity using wind; and
19        (2) has a nameplate capacity that is greater than
20    5,000 kilowatts.
21    "Waste Heat to Power Systems" means systems that capture
22and generate electricity from energy that would otherwise be
23lost to the atmosphere without the use of additional fuel.
24    "Zero emission credit" means a tradable credit that
25represents the environmental attributes of one megawatt hour
26of energy produced from a zero emission facility.

 

 

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1    "Zero emission facility" means a facility that: (1) is
2fueled by nuclear power; and (2) is interconnected with PJM
3Interconnection, LLC or the Midcontinent Independent System
4Operator, Inc., or their successors.
5(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
6103-380, eff. 1-1-24.)
 
7    (20 ILCS 3855/1-20)
8    Sec. 1-20. General powers and duties of the Agency.
9    (a) The Agency is authorized to do each of the following:
10        (1) Develop electricity procurement plans to ensure
11    adequate, reliable, affordable, efficient, and
12    environmentally sustainable electric service at the lowest
13    total cost over time, taking into account any benefits of
14    price stability, for electric utilities that on December
15    31, 2005 provided electric service to at least 100,000
16    customers in Illinois and for small multi-jurisdictional
17    electric utilities that (A) on December 31, 2005 served
18    less than 100,000 customers in Illinois and (B) request a
19    procurement plan for their Illinois jurisdictional load.
20    Except as provided in paragraph (1.5) of this subsection
21    (a), the electricity procurement plans shall be updated on
22    an annual basis and shall include electricity generated
23    from renewable resources sufficient to achieve the
24    standards specified in this Act. Beginning with the
25    delivery year commencing June 1, 2017, develop procurement

 

 

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1    plans to include zero emission credits generated from zero
2    emission facilities sufficient to achieve the standards
3    specified in this Act. Beginning with the delivery year
4    commencing on June 1, 2022, the Agency is authorized to
5    develop carbon mitigation credit procurement plans to
6    include carbon mitigation credits generated from
7    carbon-free energy resources sufficient to achieve the
8    standards specified in this Act.
9        (1.5) Develop a long-term renewable resources
10    procurement plan in accordance with subsection (c) of
11    Section 1-75 of this Act for renewable energy credits in
12    amounts sufficient to achieve the standards specified in
13    this Act for delivery years commencing June 1, 2017 and
14    for the programs and renewable energy credits specified in
15    Section 1-56 of this Act. Electricity procurement plans
16    for delivery years commencing after May 31, 2017, shall
17    not include procurement of renewable energy resources.
18        (2) Conduct competitive procurement processes to
19    procure the supply resources identified in the electricity
20    procurement plan, pursuant to Section 16-111.5 of the
21    Public Utilities Act, and, for the delivery year
22    commencing June 1, 2017, conduct procurement processes to
23    procure zero emission credits from zero emission
24    facilities, under subsection (d-5) of Section 1-75 of this
25    Act. For the delivery year commencing June 1, 2022, the
26    Agency is authorized to conduct procurement processes to

 

 

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1    procure carbon mitigation credits from carbon-free energy
2    resources, under subsection (d-10) of Section 1-75 of this
3    Act.
4        (2.5) Beginning with the procurement for the 2017
5    delivery year, conduct competitive procurement processes
6    and implement programs to procure renewable energy credits
7    identified in the long-term renewable resources
8    procurement plan developed and approved under subsection
9    (c) of Section 1-75 of this Act and Section 16-111.5 of the
10    Public Utilities Act.
11        (2.10) Oversee the procurement by electric utilities
12    that served more than 300,000 customers in this State as
13    of January 1, 2019 of renewable energy credits from new
14    renewable energy facilities to be installed, along with
15    energy storage facilities, at or adjacent to the sites of
16    electric generating facilities that burned coal as their
17    primary fuel source as of January 1, 2016 in accordance
18    with subsection (c-5) of Section 1-75 of this Act.
19        (2.15) Oversee the procurement by electric utilities
20    of renewable energy credits from newly modernized or
21    retooled hydropower dams or dams that have been converted
22    to support hydropower generation.
23        (3) Develop electric generation and co-generation
24    facilities that use indigenous coal or renewable
25    resources, or both, financed with bonds issued by the
26    Illinois Finance Authority.

 

 

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1        (4) Supply electricity from the Agency's facilities at
2    cost to one or more of the following: municipal electric
3    systems, governmental aggregators, or rural electric
4    cooperatives in Illinois.
5        (5) Conduct competitive solicitations to procure
6    energy storage credits sufficient to achieve, at minimum,
7    the energy storage standard under Section 1-93 of this
8    Act.
9    (b) Except as otherwise limited by this Act, the Agency
10has all of the powers necessary or convenient to carry out the
11purposes and provisions of this Act, including without
12limitation, each of the following:
13        (1) To have a corporate seal, and to alter that seal at
14    pleasure, and to use it by causing it or a facsimile to be
15    affixed or impressed or reproduced in any other manner.
16        (2) To use the services of the Illinois Finance
17    Authority necessary to carry out the Agency's purposes.
18        (3) To negotiate and enter into loan agreements and
19    other agreements with the Illinois Finance Authority.
20        (4) To obtain and employ personnel and hire
21    consultants that are necessary to fulfill the Agency's
22    purposes, and to make expenditures for that purpose within
23    the appropriations for that purpose.
24        (5) To purchase, receive, take by grant, gift, devise,
25    bequest, or otherwise, lease, or otherwise acquire, own,
26    hold, improve, employ, use, and otherwise deal in and

 

 

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

 

 

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

 

 

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1        (14) To negotiate and enter into agreements with
2    trustees or receivers appointed by United States
3    bankruptcy courts or federal district courts or in other
4    proceedings involving adjustment of debts and authorize
5    proceedings involving adjustment of debts and authorize
6    legal counsel for the Agency to appear in any such
7    proceedings.
8        (15) To file a petition under Chapter 9 of Title 11 of
9    the United States Bankruptcy Code or take other similar
10    action for the adjustment of its debts.
11        (16) To enter into management agreements for the
12    operation of any of the property or facilities owned by
13    the Agency.
14        (17) To enter into an agreement to transfer and to
15    transfer any land, facilities, fixtures, or equipment of
16    the Agency to one or more municipal electric systems,
17    governmental aggregators, or rural electric agencies or
18    cooperatives, for such consideration and upon such terms
19    as the Agency may determine to be in the best interest of
20    the residents of Illinois.
21        (18) To enter upon any lands and within any building
22    whenever in its judgment it may be necessary for the
23    purpose of making surveys and examinations to accomplish
24    any purpose authorized by this Act.
25        (19) To maintain an office or offices at such place or
26    places in the State as it may determine.

 

 

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1        (20) To request information, and to make any inquiry,
2    investigation, survey, or study that the Agency may deem
3    necessary to enable it effectively to carry out the
4    provisions of this Act.
5        (21) To accept and expend appropriations.
6        (22) To engage in any activity or operation that is
7    incidental to and in furtherance of efficient operation to
8    accomplish the Agency's purposes, including hiring
9    employees that the Director deems essential for the
10    operations of the Agency.
11        (23) To adopt, revise, amend, and repeal rules with
12    respect to its operations, properties, and facilities as
13    may be necessary or convenient to carry out the purposes
14    of this Act, subject to the provisions of the Illinois
15    Administrative Procedure Act and Sections 1-22 and 1-35 of
16    this Act.
17        (24) To establish and collect charges and fees as
18    described in this Act.
19        (25) To conduct competitive gasification feedstock
20    procurement processes to procure the feedstocks for the
21    clean coal SNG brownfield facility in accordance with the
22    requirements of Section 1-78 of this Act.
23        (26) To review, revise, and approve sourcing
24    agreements and mediate and resolve disputes between gas
25    utilities and the clean coal SNG brownfield facility
26    pursuant to subsection (h-1) of Section 9-220 of the

 

 

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1    Public Utilities Act.
2        (27) To request, review and accept proposals, execute
3    contracts, purchase renewable energy credits and otherwise
4    dedicate funds from the Illinois Power Agency Renewable
5    Energy Resources Fund to create and carry out the
6    objectives of the Illinois Solar for All Program in
7    accordance with Section 1-56 of this Act.
8        (28) To ensure Illinois residents and business benefit
9    from programs administered by the Agency and are properly
10    protected from any deceptive or misleading marketing
11    practices by participants in the Agency's programs and
12    procurements.
13        (29) To request, review, and accept proposals, execute
14    contracts, and procure energy storage credits.
15    (c) In conducting the procurement of electricity or other
16products, beginning January 1, 2022, the Agency shall not
17procure any products or services from persons or organizations
18that are in violation of the Displaced Energy Workers Bill of
19Rights, as provided under the Energy Community Reinvestment
20Act at the time of the procurement event or fail to comply the
21labor standards established in subparagraph (Q) of paragraph
22(1) of subsection (c) of Section 1-75.
23(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
 
24    (20 ILCS 3855/1-93 new)
25    Sec. 1-93. Energy storage credit targets.

 

 

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1    (a) The Agency shall develop a storage procurement plan
2that results in the electric utilities contracting for energy
3storage credits from contracted energy storage systems in the
4following amounts:
5        (1) at least 1,000 megawatts of cumulative energy
6    storage capacity by the end of delivery year 2024;
7        (2) at least 3,000 megawatts of cumulative energy
8    storage capacity by delivery year 2026;
9        (3) at least 5,000 megawatts of cumulative energy
10    storage capacity by delivery year 2028; and
11        (4) at least 7,500 megawatts of cumulative energy
12    storage capacity by delivery year 2030.
13    (b) Within 90 days of the effective date of this
14amendatory Act of the 103rd General Assembly, the Agency shall
15develop an energy storage procurement plan in accordance with
16this Section and Section 16-111.5 of the Public Utilities Act.
17    (c) For all procurements of energy storage credits, the
18Agency shall procure energy storage credits and direct
19respondents to offer an energy storage capacity price. The
20purchase price of the energy storage credit payment shall be
21calculated for each settlement period. The payment, for any
22settlement period, shall be equal to the energy storage
23capacity for that settlement period.
24    (d) All procurements under this Section shall comply with
25the geographic requirements in subparagraph (I) of paragraph
26(1) of subsection (c) of Section 1-75 and shall follow the

 

 

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1procurement processes and procedures described in this Section
2and Section 16-111.5 of the Public Utilities Act to the extent
3practicable, and these processes and procedures may be
4expedited to accommodate the schedule established by this
5Section. The Agency shall select bids based solely on the
6strike price. The winning bidders shall comply with the
7prevailing wage requirements in subparagraph (Q) of paragraph
8(1) of subsection (c) of Section 1-75 and equity
9accountability system requirements in Section (c-10) of
10Section 1-75.
11    (e) No later than December 31, 2026 and every 2 years
12thereafter, the Agency shall conduct an analysis to determine
13whether the contracted quantity of energy storage in energy
14storage capacity and energy storage duration is sufficient to
15support the State's renewable energy standards and carbon
16emission standards. To conduct the analysis, the Agency shall
17retain an independent consultant with experience in wholesale
18electric system modeling in PJM and MISO and may seek the
19support of the federal Department of Energy and National Labs
20to conduct its analysis. The independent consultant shall
21utilize a production cost model, capacity expansion model, or
22similar comprehensive analysis of the electricity systems and
23shall provide opportunities for stakeholders to provide
24feedback on the scope, inputs, and assumptions used in the
25analysis. The Agency is authorized to collect costs for
26conducting the analysis from electric utilities. The electric

 

 

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1utilities are authorized to recover the cost of the analysis
2as part of the recovery of the cost of energy storage credits,
3as authorized in this Section and Section 16-108 of the Public
4Utilities Act. If the Agency determines that the need for
5energy storage capacity or energy storage duration is greater
6than the energy storage credit target in this Section, the
7Agency shall establish and the Commission shall approve new
8energy storage credit targets to meet the identified need. If
9the Agency determines that deployment of energy storage beyond
102030 will not be achieved through wholesale market prices and
11other energy storage programs established by the State, the
12Agency shall establish additional targets for years beyond
132030.
 
14    (20 ILCS 3855/1-94 new)
15    Sec. 1-94. Firm energy resource procurement plan. The
16Agency is authorized to develop and implement a firm energy
17resource procurement plan for new resources, including
18initiating proceedings and conducting competitive
19solicitations to deploy new long-duration and multi-day energy
20storage. The procurement plan shall ensure regular procurement
21opportunities to deploy new long-duration and multi-day energy
22storage resources by 2030 and shall ensure stable, competitive
23resource development at a pace needed to ensure grid
24reliability and resilience during atypical or extreme grid
25conditions that may occur at least once in 20 years while

 

 

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1meeting the emissions requirements of Section 9.15 of the
2Environmental Protection Act.
3    The Agency's plan shall ensure that a minimum of 2 new
4long-duration or multi-day energy storage resources each with
5a rated capacity greater than 20 megawatts shall be deployed
6or contracted by the end of delivery year 2026.
7    Within 365 days of the effective date of this amendatory
8Act of the 103rd General Assembly, the Agency shall develop a
9firm energy resource procurement plan in accordance with this
10Section and Section 16-111.5 of the Public Utilities Act.
 
11    Section 10. The Public Utilities Act is amended by
12changing Sections 16-108 and 16-111.5 as follows:
 
13    (220 ILCS 5/16-108)
14    Sec. 16-108. Recovery of costs associated with the
15provision of delivery and other services.
16    (a) An electric utility shall file a delivery services
17tariff with the Commission at least 210 days prior to the date
18that it is required to begin offering such services pursuant
19to this Act. An electric utility shall provide the components
20of delivery services that are subject to the jurisdiction of
21the Federal Energy Regulatory Commission at the same prices,
22terms and conditions set forth in its applicable tariff as
23approved or allowed into effect by that Commission. The
24Commission shall otherwise have the authority pursuant to

 

 

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1Article IX to review, approve, and modify the prices, terms
2and conditions of those components of delivery services not
3subject to the jurisdiction of the Federal Energy Regulatory
4Commission, including the authority to determine the extent to
5which such delivery services should be offered on an unbundled
6basis. In making any such determination the Commission shall
7consider, at a minimum, the effect of additional unbundling on
8(i) the objective of just and reasonable rates, (ii) electric
9utility employees, and (iii) the development of competitive
10markets for electric energy services in Illinois.
11    (b) The Commission shall enter an order approving, or
12approving as modified, the delivery services tariff no later
13than 30 days prior to the date on which the electric utility
14must commence offering such services. The Commission may
15subsequently modify such tariff pursuant to this Act.
16    (c) The electric utility's tariffs shall define the
17classes of its customers for purposes of delivery services
18charges. Delivery services shall be priced and made available
19to all retail customers electing delivery services in each
20such class on a nondiscriminatory basis regardless of whether
21the retail customer chooses the electric utility, an affiliate
22of the electric utility, or another entity as its supplier of
23electric power and energy. Charges for delivery services shall
24be cost based, and shall allow the electric utility to recover
25the costs of providing delivery services through its charges
26to its delivery service customers that use the facilities and

 

 

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1services associated with such costs. Such costs shall include
2the costs of owning, operating and maintaining transmission
3and distribution facilities. The Commission shall also be
4authorized to consider whether, and if so to what extent, the
5following costs are appropriately included in the electric
6utility's delivery services rates: (i) the costs of that
7portion of generation facilities used for the production and
8absorption of reactive power in order that retail customers
9located in the electric utility's service area can receive
10electric power and energy from suppliers other than the
11electric utility, and (ii) the costs associated with the use
12and redispatch of generation facilities to mitigate
13constraints on the transmission or distribution system in
14order that retail customers located in the electric utility's
15service area can receive electric power and energy from
16suppliers other than the electric utility. Nothing in this
17subsection shall be construed as directing the Commission to
18allocate any of the costs described in (i) or (ii) that are
19found to be appropriately included in the electric utility's
20delivery services rates to any particular customer group or
21geographic area in setting delivery services rates.
22    (d) The Commission shall establish charges, terms and
23conditions for delivery services that are just and reasonable
24and shall take into account customer impacts when establishing
25such charges. In establishing charges, terms and conditions
26for delivery services, the Commission shall take into account

 

 

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

 

 

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1implement transition charges for power and energy that a
2retail customer takes from cogeneration or self-generation
3facilities located on that retail customer's premises, if such
4facilities meet the following criteria:
5        (i) the cogeneration or self-generation facilities
6    serve a single retail customer and are located on that
7    retail customer's premises (for purposes of this
8    subparagraph and subparagraph (ii), an industrial or
9    manufacturing retail customer and a third party contractor
10    that is served by such industrial or manufacturing
11    customer through such retail customer's own electrical
12    distribution facilities under the circumstances described
13    in subsection (vi) of the definition of "alternative
14    retail electric supplier" set forth in Section 16-102,
15    shall be considered a single retail customer);
16        (ii) the cogeneration or self-generation facilities
17    either (A) are sized pursuant to generally accepted
18    engineering standards for the retail customer's electrical
19    load at that premises (taking into account standby or
20    other reliability considerations related to that retail
21    customer's operations at that site) or (B) if the facility
22    is a cogeneration facility located on the retail
23    customer's premises, the retail customer is the thermal
24    host for that facility and the facility has been designed
25    to meet that retail customer's thermal energy requirements
26    resulting in electrical output beyond that retail

 

 

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1    customer's electrical demand at that premises, comply with
2    the operating and efficiency standards applicable to
3    "qualifying facilities" specified in title 18 Code of
4    Federal Regulations Section 292.205 as in effect on the
5    effective date of this amendatory Act of 1999;
6        (iii) the retail customer on whose premises the
7    facilities are located either has an exclusive right to
8    receive, and corresponding obligation to pay for, all of
9    the electrical capacity of the facility, or in the case of
10    a cogeneration facility that has been designed to meet the
11    retail customer's thermal energy requirements at that
12    premises, an identified amount of the electrical capacity
13    of the facility, over a minimum 5-year period; and
14        (iv) if the cogeneration facility is sized for the
15    retail customer's thermal load at that premises but
16    exceeds the electrical load, any sales of excess power or
17    energy are made only at wholesale, are subject to the
18    jurisdiction of the Federal Energy Regulatory Commission,
19    and are not for the purpose of circumventing the
20    provisions of this subsection (f).
21If a generation facility located at a retail customer's
22premises does not meet the above criteria, an electric utility
23implementing transition charges shall implement a transition
24charge until December 31, 2006 for any power and energy taken
25by such retail customer from such facility as if such power and
26energy had been delivered by the electric utility. Provided,

 

 

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1however, that an industrial retail customer that is taking
2power from a generation facility that does not meet the above
3criteria but that is located on such customer's premises will
4not be subject to a transition charge for the power and energy
5taken by such retail customer from such generation facility if
6the facility does not serve any other retail customer and
7either was installed on behalf of the customer and for its own
8use prior to January 1, 1997, or is both predominantly fueled
9by byproducts of such customer's manufacturing process at such
10premises and sells or offers an average of 300 megawatts or
11more of electricity produced from such generation facility
12into the wholesale market. Such charges shall be calculated as
13provided in Section 16-102, and shall be collected on each
14kilowatt-hour delivered under a delivery services tariff to a
15retail customer from the date the customer first takes
16delivery services until December 31, 2006 except as provided
17in subsection (h) of this Section. Provided, however, that an
18electric utility, other than an electric utility providing
19service to at least 1,000,000 customers in this State on
20January 1, 1999, shall be entitled to petition for entry of an
21order by the Commission authorizing the electric utility to
22implement transition charges for an additional period ending
23no later than December 31, 2008. The electric utility shall
24file its petition with supporting evidence no earlier than 16
25months, and no later than 12 months, prior to December 31,
262006. The Commission shall hold a hearing on the electric

 

 

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1utility's petition and shall enter its order no later than 8
2months after the petition is filed. The Commission shall
3determine whether and to what extent the electric utility
4shall be authorized to implement transition charges for an
5additional period. The Commission may authorize the electric
6utility to implement transition charges for some or all of the
7additional period, and shall determine the mitigation factors
8to be used in implementing such transition charges; provided,
9that the Commission shall not authorize mitigation factors
10less than 110% of those in effect during the 12 months ended
11December 31, 2006. In making its determination, the Commission
12shall consider the following factors: the necessity to
13implement transition charges for an additional period in order
14to maintain the financial integrity of the electric utility;
15the prudence of the electric utility's actions in reducing its
16costs since the effective date of this amendatory Act of 1997;
17the ability of the electric utility to provide safe, adequate
18and reliable service to retail customers in its service area;
19and the impact on competition of allowing the electric utility
20to implement transition charges for the additional period.
21    (g) The electric utility shall file tariffs that establish
22the transition charges to be paid by each class of customers to
23the electric utility in conjunction with the provision of
24delivery services. The electric utility's tariffs shall define
25the classes of its customers for purposes of calculating
26transition charges. The electric utility's tariffs shall

 

 

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1provide for the calculation of transition charges on a
2customer-specific basis for any retail customer whose average
3monthly maximum electrical demand on the electric utility's
4system during the 6 months with the customer's highest monthly
5maximum electrical demands equals or exceeds 3.0 megawatts for
6electric utilities having more than 1,000,000 customers, and
7for other electric utilities for any customer that has an
8average monthly maximum electrical demand on the electric
9utility's system of one megawatt or more, and (A) for which
10there exists data on the customer's usage during the 3 years
11preceding the date that the customer became eligible to take
12delivery services, or (B) for which there does not exist data
13on the customer's usage during the 3 years preceding the date
14that the customer became eligible to take delivery services,
15if in the electric utility's reasonable judgment there exists
16comparable usage information or a sufficient basis to develop
17such information, and further provided that the electric
18utility can require customers for which an individual
19calculation is made to sign contracts that set forth the
20transition charges to be paid by the customer to the electric
21utility pursuant to the tariff.
22    (h) An electric utility shall also be entitled to file
23tariffs that allow it to collect transition charges from
24retail customers in the electric utility's service area that
25do not take delivery services but that take electric power or
26energy from an alternative retail electric supplier or from an

 

 

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1electric utility other than the electric utility in whose
2service area the customer is located. Such charges shall be
3calculated, in accordance with the definition of transition
4charges in Section 16-102, for the period of time that the
5customer would be obligated to pay transition charges if it
6were taking delivery services, except that no deduction for
7delivery services revenues shall be made in such calculation,
8and usage data from the customer's class shall be used where
9historical usage data is not available for the individual
10customer. The customer shall be obligated to pay such charges
11on a lump sum basis on or before the date on which the customer
12commences to take service from the alternative retail electric
13supplier or other electric utility, provided, that the
14electric utility in whose service area the customer is located
15shall offer the customer the option of signing a contract
16pursuant to which the customer pays such charges ratably over
17the period in which the charges would otherwise have applied.
18    (i) An electric utility shall be entitled to add to the
19bills of delivery services customers charges pursuant to
20Sections 9-221, 9-222 (except as provided in Section 9-222.1),
21and Section 16-114 of this Act, Section 5-5 of the Electricity
22Infrastructure Maintenance Fee Law, Section 6-5 of the
23Renewable Energy, Energy Efficiency, and Coal Resources
24Development Law of 1997, and Section 13 of the Energy
25Assistance Act.
26    (i-5) An electric utility required to impose the Coal to

 

 

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1Solar and Energy Storage Initiative Charge provided for in
2subsection (c-5) of Section 1-75 of the Illinois Power Agency
3Act shall add such charge to the bills of its delivery services
4customers pursuant to the terms of a tariff conforming to the
5requirements of subsection (c-5) of Section 1-75 of the
6Illinois Power Agency Act and this subsection (i-5) and filed
7with and approved by the Commission. The electric utility
8shall file its proposed tariff with the Commission on or
9before July 1, 2022 to be effective, after review and approval
10or modification by the Commission, beginning January 1, 2023.
11On or before December 1, 2022, the Commission shall review the
12electric utility's proposed tariff, including by conducting a
13docketed proceeding if deemed necessary by the Commission, and
14shall approve the proposed tariff or direct the electric
15utility to make modifications the Commission finds necessary
16for the tariff to conform to the requirements of subsection
17(c-5) of Section 1-75 of the Illinois Power Agency Act and this
18subsection (i-5). The electric utility's tariff shall provide
19for imposition of the Coal to Solar and Energy Storage
20Initiative Charge on a per-kilowatthour basis to all
21kilowatthours delivered by the electric utility to its
22delivery services customers. The tariff shall provide for the
23calculation of the Coal to Solar and Energy Storage Initiative
24Charge to be in effect for the year beginning January 1, 2023
25and each year beginning January 1 thereafter, sufficient to
26collect the electric utility's estimated payment obligations

 

 

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1for the delivery year beginning the following June 1 under
2contracts for purchase of renewable energy credits entered
3into pursuant to subsection (c-5) of Section 1-75 of the
4Illinois Power Agency Act and the obligations of the
5Department of Commerce and Economic Opportunity, or any
6successor department or agency, which for purposes of this
7subsection (i-5) shall be referred to as the Department, to
8make grant payments during such delivery year from the Coal to
9Solar and Energy Storage Initiative Fund pursuant to grant
10contracts entered into pursuant to subsection (c-5) of Section
111-75 of the Illinois Power Agency Act, and using the electric
12utility's kilowatthour deliveries to its delivery services
13customers during the delivery year ended May 31 of the
14preceding calendar year. On or before November 1 of each year
15beginning November 1, 2022, the Department shall notify the
16electric utilities of the amount of the Department's estimated
17obligations for grant payments during the delivery year
18beginning the following June 1 pursuant to grant contracts
19entered into pursuant to subsection (c-5) of Section 1-75 of
20the Illinois Power Agency Act; and each electric utility shall
21incorporate in the calculation of its Coal to Solar and Energy
22Storage Initiative Charge the fractional portion of the
23Department's estimated obligations equal to the electric
24utility's kilowatthour deliveries to its delivery services
25customers in the delivery year ended the preceding May 31
26divided by the aggregate deliveries of both electric utilities

 

 

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1to delivery services customers in such delivery year. The
2electric utility shall remit on a monthly basis to the State
3Treasurer, for deposit in the Coal to Solar and Energy Storage
4Initiative Fund provided for in subsection (c-5) of Section
51-75 of the Illinois Power Agency Act, the electric utility's
6collections of the Coal to Solar and Energy Storage Initiative
7Charge estimated to be needed by the Department for grant
8payments pursuant to grant contracts entered into pursuant to
9subsection (c-5) of Section 1-75 of the Illinois Power Agency
10Act. The initial charge under the electric utility's tariff
11shall be effective for kilowatthours delivered beginning
12January 1, 2023, and thereafter shall be revised to be
13effective January 1, 2024 and each January 1 thereafter, based
14on the payment obligations for the delivery year beginning the
15following June 1. The tariff shall provide for the electric
16utility to make an annual filing with the Commission on or
17before November 15 of each year, beginning in 2023, setting
18forth the Coal to Solar and Energy Storage Initiative Charge
19to be in effect for the year beginning the following January 1.
20The electric utility's tariff shall also provide that the
21electric utility shall make a filing with the Commission on or
22before August 1 of each year beginning in 2024 setting forth a
23reconciliation, for the delivery year ended the preceding May
2431, of the electric utility's collections of the Coal to Solar
25and Energy Storage Initiative Charge against actual payments
26for renewable energy credits pursuant to contracts entered

 

 

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1into, and the actual grant payments by the Department pursuant
2to grant contracts entered into, pursuant to subsection (c-5)
3of Section 1-75 of the Illinois Power Agency Act. The tariff
4shall provide that any excess or shortfall of collections to
5payments shall be deducted from or added to, on a
6per-kilowatthour basis, the Coal to Solar and Energy Storage
7Initiative Charge, over the 6-month period beginning October 1
8of that calendar year.
9    (j) If a retail customer that obtains electric power and
10energy from cogeneration or self-generation facilities
11installed for its own use on or before January 1, 1997,
12subsequently takes service from an alternative retail electric
13supplier or an electric utility other than the electric
14utility in whose service area the customer is located for any
15portion of the customer's electric power and energy
16requirements formerly obtained from those facilities
17(including that amount purchased from the utility in lieu of
18such generation and not as standby power purchases, under a
19cogeneration displacement tariff in effect as of the effective
20date of this amendatory Act of 1997), the transition charges
21otherwise applicable pursuant to subsections (f), (g), or (h)
22of this Section shall not be applicable in any year to that
23portion of the customer's electric power and energy
24requirements formerly obtained from those facilities,
25provided, that for purposes of this subsection (j), such
26portion shall not exceed the average number of kilowatt-hours

 

 

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1per year obtained from the cogeneration or self-generation
2facilities during the 3 years prior to the date on which the
3customer became eligible for delivery services, except as
4provided in subsection (f) of Section 16-110.
5    (k) The electric utility shall be entitled to recover
6through tariffed charges all of the costs associated with the
7purchase of zero emission credits from zero emission
8facilities to meet the requirements of subsection (d-5) of
9Section 1-75 of the Illinois Power Agency Act and all of the
10costs associated with the purchase of carbon mitigation
11credits from carbon-free energy resources to meet the
12requirements of subsection (d-10) of Section 1-75 of the
13Illinois Power Agency Act. Such costs shall include the costs
14of procuring the zero emission credits and carbon mitigation
15credits from carbon-free energy resources, as well as the
16reasonable costs that the utility incurs as part of the
17procurement processes and to implement and comply with plans
18and processes approved by the Commission under subsections
19(d-5) and (d-10). The costs shall be allocated across all
20retail customers through a single, uniform cents per
21kilowatt-hour charge applicable to all retail customers, which
22shall appear as a separate line item on each customer's bill.
23Beginning June 1, 2024, the electric utility shall be entitled
24to recover through tariffed charges all of the costs
25associated with the purchase of energy storage credits to meet
26the energy storage standards of Section 1-93 of the Illinois

 

 

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

 

 

SB3636- 56 -LRB103 39306 CES 69460 b

1proportion to the amount of renewable energy resources the
2utility procures for such customers through a single, uniform
3cents per kilowatt-hour charge applicable to such retail
4customers, which shall appear as a separate line item on each
5such customer's bill. The credits, costs, and penalties
6associated with the self-direct renewable portfolio standard
7compliance program described in subparagraph (R) of paragraph
8(1) of subsection (c) of Section 1-75 of the Illinois Power
9Agency Act shall be allocated to approved eligible self-direct
10customers by the utility in a cents per kilowatt-hour credit,
11cost, or penalty, which shall appear as a separate line item on
12each such customer's bill.
13    Notwithstanding whether the Commission has approved the
14initial long-term renewable resources procurement plan as of
15June 1, 2017, an electric utility shall place new tariffed
16charges into effect beginning with the June 2017 monthly
17billing period, to the extent practicable, to begin recovering
18the costs of procuring renewable energy resources, as those
19charges are calculated under the limitations described in
20subparagraph (E) of paragraph (1) of subsection (c) of Section
211-75 of the Illinois Power Agency Act. Notwithstanding the
22date on which the utility places such new tariffed charges
23into effect, the utility shall be permitted to collect the
24charges under such tariff as if the tariff had been in effect
25beginning with the first day of the June 2017 monthly billing
26period. For the delivery years commencing June 1, 2017, June

 

 

SB3636- 57 -LRB103 39306 CES 69460 b

11, 2018, June 1, 2019, and each delivery year thereafter, the
2electric utility shall deposit into a separate interest
3bearing account of a financial institution the monies
4collected under the tariffed charges. Money collected from
5customers for the procurement of renewable energy resources in
6a given delivery year may be spent by the utility for the
7procurement of renewable resources over any of the following 5
8delivery years, after which unspent money shall be credited
9back to retail customers. The electric utility shall spend all
10money collected in earlier delivery years that has not yet
11been returned to customers, first, before spending money
12collected in later delivery years. Any interest earned shall
13be credited back to retail customers under the reconciliation
14proceeding provided for in this subsection (k), provided that
15the electric utility shall first be reimbursed from the
16interest for the administrative costs that it incurs to
17administer and manage the account. Any taxes due on the funds
18in the account, or interest earned on it, will be paid from the
19account or, if insufficient monies are available in the
20account, from the monies collected under the tariffed charges
21to recover the costs of procuring renewable energy resources.
22Monies deposited in the account shall be subject to the
23review, reconciliation, and true-up process described in this
24subsection (k) that is applicable to the funds collected and
25costs incurred for the procurement of renewable energy
26resources.

 

 

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1    The electric utility shall be entitled to recover all of
2the costs identified in this subsection (k) through automatic
3adjustment clause tariffs applicable to all of the utility's
4retail customers that allow the electric utility to adjust its
5tariffed charges consistent with this subsection (k). The
6determination as to whether any excess funds were collected
7during a given delivery year for the purchase of renewable
8energy resources, and the crediting of any excess funds back
9to retail customers, shall not be made until after the close of
10the delivery year, which will ensure that the maximum amount
11of funds is available to implement the approved long-term
12renewable resources procurement plan during a given delivery
13year. The amount of excess funds eligible to be credited back
14to retail customers shall be reduced by an amount equal to the
15payment obligations required by any contracts entered into by
16an electric utility under contracts described in subsection
17(b) of Section 1-56 and subsection (c) of Section 1-75 of the
18Illinois Power Agency Act, even if such payments have not yet
19been made and regardless of the delivery year in which those
20payment obligations were incurred. Notwithstanding anything to
21the contrary, including in tariffs authorized by this
22subsection (k) in effect before the effective date of this
23amendatory Act of the 102nd General Assembly, all unspent
24funds as of May 31, 2021, excluding any funds credited to
25customers during any utility billing cycle that commences
26prior to the effective date of this amendatory Act of the 102nd

 

 

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1General Assembly, shall remain in the utility account and
2shall on a first in, first out basis be used toward utility
3payment obligations under contracts described in subsection
4(b) of Section 1-56 and subsection (c) of Section 1-75 of the
5Illinois Power Agency Act. The electric utility's collections
6under such automatic adjustment clause tariffs to recover the
7costs of renewable energy resources, zero emission credits
8from zero emission facilities, and carbon mitigation credits
9from carbon-free energy resources shall be subject to separate
10annual review, reconciliation, and true-up against actual
11costs by the Commission under a procedure that shall be
12specified in the electric utility's automatic adjustment
13clause tariffs and that shall be approved by the Commission in
14connection with its approval of such tariffs. The procedure
15shall provide that any difference between the electric
16utility's collections for zero emission credits and carbon
17mitigation credits under the automatic adjustment charges for
18an annual period and the electric utility's actual costs of
19zero emission credits from zero emission facilities and carbon
20mitigation credits from carbon-free energy resources for that
21same annual period shall be refunded to or collected from, as
22applicable, the electric utility's retail customers in
23subsequent periods.
24    Nothing in this subsection (k) is intended to affect,
25limit, or change the right of the electric utility to recover
26the costs associated with the procurement of renewable energy

 

 

SB3636- 60 -LRB103 39306 CES 69460 b

1resources for periods commencing before, on, or after June 1,
22017, as otherwise provided in the Illinois Power Agency Act.
3    The funding available under this subsection (k), if any,
4for the programs described under subsection (b) of Section
51-56 of the Illinois Power Agency Act shall not reduce the
6amount of funding for the programs described in subparagraph
7(O) of paragraph (1) of subsection (c) of Section 1-75 of the
8Illinois Power Agency Act. If funding is available under this
9subsection (k) for programs described under subsection (b) of
10Section 1-56 of the Illinois Power Agency Act, then the
11long-term renewable resources plan shall provide for the
12Agency to procure contracts in an amount that does not exceed
13the funding, and the contracts approved by the Commission
14shall be executed by the applicable utility or utilities.
15    (l) A utility that has terminated any contract executed
16under subsection (d-5) or (d-10) of Section 1-75 of the
17Illinois Power Agency Act shall be entitled to recover any
18remaining balance associated with the purchase of zero
19emission credits prior to such termination, and such utility
20shall also apply a credit to its retail customer bills in the
21event of any over-collection.
22    (m)(1) An electric utility that recovers its costs of
23procuring zero emission credits from zero emission facilities
24through a cents-per-kilowatthour charge under subsection (k)
25of this Section shall be subject to the requirements of this
26subsection (m). Notwithstanding anything to the contrary, such

 

 

SB3636- 61 -LRB103 39306 CES 69460 b

1electric utility shall, beginning on April 30, 2018, and each
2April 30 thereafter until April 30, 2026, calculate whether
3any reduction must be applied to such cents-per-kilowatthour
4charge that is paid by retail customers of the electric
5utility that have opted out of subsections (a) through (j) of
6Section 8-103B of this Act under subsection (l) of Section
78-103B. Such charge shall be reduced for such customers for
8the next delivery year commencing on June 1 based on the amount
9necessary, if any, to limit the annual estimated average net
10increase for the prior calendar year due to the future energy
11investment costs to no more than 1.3% of 5.98 cents per
12kilowatt-hour, which is the average amount paid per
13kilowatthour for electric service during the year ending
14December 31, 2015 by Illinois industrial retail customers, as
15reported to the Edison Electric Institute.
16    The calculations required by this subsection (m) shall be
17made only once for each year, and no subsequent rate impact
18determinations shall be made.
19    (2) For purposes of this Section, "future energy
20investment costs" shall be calculated by subtracting the
21cents-per-kilowatthour charge identified in subparagraph (A)
22of this paragraph (2) from the sum of the
23cents-per-kilowatthour charges identified in subparagraph (B)
24of this paragraph (2):
25        (A) The cents-per-kilowatthour charge identified in
26    the electric utility's tariff placed into effect under

 

 

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1    Section 8-103 of the Public Utilities Act that, on
2    December 1, 2016, was applicable to those retail customers
3    that have opted out of subsections (a) through (j) of
4    Section 8-103B of this Act under subsection (l) of Section
5    8-103B.
6        (B) The sum of the following cents-per-kilowatthour
7    charges applicable to those retail customers that have
8    opted out of subsections (a) through (j) of Section 8-103B
9    of this Act under subsection (l) of Section 8-103B,
10    provided that if one or more of the following charges has
11    been in effect and applied to such customers for more than
12    one calendar year, then each charge shall be equal to the
13    average of the charges applied over a period that
14    commences with the calendar year ending December 31, 2017
15    and ends with the most recently completed calendar year
16    prior to the calculation required by this subsection (m):
17            (i) the cents-per-kilowatthour charge to recover
18        the costs incurred by the utility under subsection
19        (d-5) of Section 1-75 of the Illinois Power Agency
20        Act, adjusted for any reductions required under this
21        subsection (m); and
22            (ii) the cents-per-kilowatthour charge to recover
23        the costs incurred by the utility under Section
24        16-107.6 of the Public Utilities Act.
25        If no charge was applied for a given calendar year
26    under item (i) or (ii) of this subparagraph (B), then the

 

 

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1    value of the charge for that year shall be zero.
2    (3) If a reduction is required by the calculation
3performed under this subsection (m), then the amount of the
4reduction shall be multiplied by the number of years reflected
5in the averages calculated under subparagraph (B) of paragraph
6(2) of this subsection (m). Such reduction shall be applied to
7the cents-per-kilowatthour charge that is applicable to those
8retail customers that have opted out of subsections (a)
9through (j) of Section 8-103B of this Act under subsection (l)
10of Section 8-103B beginning with the next delivery year
11commencing after the date of the calculation required by this
12subsection (m).
13    (4) The electric utility shall file a notice with the
14Commission on May 1 of 2018 and each May 1 thereafter until May
151, 2026 containing the reduction, if any, which must be
16applied for the delivery year which begins in the year of the
17filing. The notice shall contain the calculations made
18pursuant to this Section. By October 1 of each year beginning
19in 2018, each electric utility shall notify the Commission if
20it appears, based on an estimate of the calculation required
21in this subsection (m), that a reduction will be required in
22the next year.
23(Source: P.A. 102-662, eff. 9-15-21.)
 
24    (220 ILCS 5/16-111.5)
25    Sec. 16-111.5. Provisions relating to procurement.

 

 

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1    (a) An electric utility that on December 31, 2005 served
2at least 100,000 customers in Illinois shall procure power and
3energy for its eligible retail customers in accordance with
4the applicable provisions set forth in Section 1-75 of the
5Illinois Power Agency Act and this Section. Beginning with the
6delivery year commencing on June 1, 2024, an electric utility
7serving over 100,000 customers shall also procure energy
8storage credits in accordance with the applicable provisions
9of Section 1-75 of the Illinois Power Agency Act and this
10Section. Beginning with the delivery year commencing on June
111, 2017, such electric utility shall also procure zero
12emission credits from zero emission facilities in accordance
13with the applicable provisions set forth in Section 1-75 of
14the Illinois Power Agency Act, and, for years beginning on or
15after June 1, 2017, the utility shall procure renewable energy
16resources in accordance with the applicable provisions set
17forth in Section 1-75 of the Illinois Power Agency Act and this
18Section. Beginning with the delivery year commencing on June
191, 2022, an electric utility serving over 3,000,000 customers
20shall also procure carbon mitigation credits from carbon-free
21energy resources in accordance with the applicable provisions
22set forth in Section 1-75 of the Illinois Power Agency Act and
23this Section. A small multi-jurisdictional electric utility
24that on December 31, 2005 served less than 100,000 customers
25in Illinois may elect to procure power and energy for all or a
26portion of its eligible Illinois retail customers in

 

 

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1accordance with the applicable provisions set forth in this
2Section and Section 1-75 of the Illinois Power Agency Act.
3This Section shall not apply to a small multi-jurisdictional
4utility until such time as a small multi-jurisdictional
5utility requests the Illinois Power Agency to prepare a
6procurement plan for its eligible retail customers. "Eligible
7retail customers" for the purposes of this Section means those
8retail customers that purchase power and energy from the
9electric utility under fixed-price bundled service tariffs,
10other than those retail customers whose service is declared or
11deemed competitive under Section 16-113 and those other
12customer groups specified in this Section, including
13self-generating customers, customers electing hourly pricing,
14or those customers who are otherwise ineligible for
15fixed-price bundled tariff service. For those customers that
16are excluded from the procurement plan's electric supply
17service requirements, and the utility shall procure any supply
18requirements, including capacity, ancillary services, and
19hourly priced energy, in the applicable markets as needed to
20serve those customers, provided that the utility may include
21in its procurement plan load requirements for the load that is
22associated with those retail customers whose service has been
23declared or deemed competitive pursuant to Section 16-113 of
24this Act to the extent that those customers are purchasing
25power and energy during one of the transition periods
26identified in subsection (b) of Section 16-113 of this Act.

 

 

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1    (b) A procurement plan shall be prepared for each electric
2utility consistent with the applicable requirements of the
3Illinois Power Agency Act and this Section. For purposes of
4this Section, Illinois electric utilities that are affiliated
5by virtue of a common parent company are considered to be a
6single electric utility. Small multi-jurisdictional utilities
7may request a procurement plan for a portion of or all of its
8Illinois load. Each procurement plan shall analyze the
9projected balance of supply and demand for those retail
10customers to be included in the plan's electric supply service
11requirements over a 5-year period, with the first planning
12year beginning on June 1 of the year following the year in
13which the plan is filed. The plan shall specifically identify
14the wholesale products to be procured following plan approval,
15and shall follow all the requirements set forth in the Public
16Utilities Act and all applicable State and federal laws,
17statutes, rules, or regulations, as well as Commission orders.
18Nothing in this Section precludes consideration of contracts
19longer than 5 years and related forecast data. Unless
20specified otherwise in this Section, in the procurement plan
21or in the implementing tariff, any procurement occurring in
22accordance with this plan shall be competitively bid through a
23request for proposals process. Approval and implementation of
24the procurement plan shall be subject to review and approval
25by the Commission according to the provisions set forth in
26this Section. A procurement plan shall include each of the

 

 

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1following components:
2        (1) Hourly load analysis. This analysis shall include:
3            (i) multi-year historical analysis of hourly
4        loads;
5            (ii) switching trends and competitive retail
6        market analysis;
7            (iii) known or projected changes to future loads;
8        and
9            (iv) growth forecasts by customer class.
10        (2) Analysis of the impact of any demand side and
11    renewable energy initiatives. This analysis shall include:
12            (i) the impact of demand response programs and
13        energy efficiency programs, both current and
14        projected; for small multi-jurisdictional utilities,
15        the impact of demand response and energy efficiency
16        programs approved pursuant to Section 8-408 of this
17        Act, both current and projected; and
18            (ii) supply side needs that are projected to be
19        offset by purchases of renewable energy resources, if
20        any.
21        (3) A plan for meeting the expected load requirements
22    that will not be met through preexisting contracts. This
23    plan shall include:
24            (i) definitions of the different Illinois retail
25        customer classes for which supply is being purchased;
26            (ii) the proposed mix of demand-response products

 

 

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1        for which contracts will be executed during the next
2        year. For small multi-jurisdictional electric
3        utilities that on December 31, 2005 served fewer than
4        100,000 customers in Illinois, these shall be defined
5        as demand-response products offered in an energy
6        efficiency plan approved pursuant to Section 8-408 of
7        this Act. The cost-effective demand-response measures
8        shall be procured whenever the cost is lower than
9        procuring comparable capacity products, provided that
10        such products shall:
11                (A) be procured by a demand-response provider
12            from those retail customers included in the plan's
13            electric supply service requirements;
14                (B) at least satisfy the demand-response
15            requirements of the regional transmission
16            organization market in which the utility's service
17            territory is located, including, but not limited
18            to, any applicable capacity or dispatch
19            requirements;
20                (C) provide for customers' participation in
21            the stream of benefits produced by the
22            demand-response products;
23                (D) provide for reimbursement by the
24            demand-response provider of the utility for any
25            costs incurred as a result of the failure of the
26            supplier of such products to perform its

 

 

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1            obligations thereunder; and
2                (E) meet the same credit requirements as apply
3            to suppliers of capacity, in the applicable
4            regional transmission organization market;
5            (iii) monthly forecasted system supply
6        requirements, including expected minimum, maximum, and
7        average values for the planning period;
8            (iv) the proposed mix and selection of standard
9        wholesale products for which contracts will be
10        executed during the next year, separately or in
11        combination, to meet that portion of its load
12        requirements not met through pre-existing contracts,
13        including but not limited to monthly 5 x 16 peak period
14        block energy, monthly off-peak wrap energy, monthly 7
15        x 24 energy, annual 5 x 16 energy, other standardized
16        energy or capacity products designed to provide
17        eligible retail customer benefits from commercially
18        deployed advanced technologies including but not
19        limited to high voltage direct current converter
20        stations, as such term is defined in Section 1-10 of
21        the Illinois Power Agency Act, whether or not such
22        product is currently available in wholesale markets,
23        annual off-peak wrap energy, annual 7 x 24 energy,
24        monthly capacity, annual capacity, peak load capacity
25        obligations, capacity purchase plan, and ancillary
26        services;

 

 

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1            (v) proposed term structures for each wholesale
2        product type included in the proposed procurement plan
3        portfolio of products; and
4            (vi) an assessment of the price risk, load
5        uncertainty, and other factors that are associated
6        with the proposed procurement plan; this assessment,
7        to the extent possible, shall include an analysis of
8        the following factors: contract terms, time frames for
9        securing products or services, fuel costs, weather
10        patterns, transmission costs, market conditions, and
11        the governmental regulatory environment; the proposed
12        procurement plan shall also identify alternatives for
13        those portfolio measures that are identified as having
14        significant price risk and mitigation in the form of
15        additional retail customer and ratepayer price,
16        reliability, and environmental benefits from
17        standardized energy products delivered from
18        commercially deployed advanced technologies,
19        including, but not limited to, high voltage direct
20        current converter stations, as such term is defined in
21        Section 1-10 of the Illinois Power Agency Act, whether
22        or not such product is currently available in
23        wholesale markets.
24        (4) Proposed procedures for balancing loads. The
25    procurement plan shall include, for load requirements
26    included in the procurement plan, the process for (i)

 

 

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1    hourly balancing of supply and demand and (ii) the
2    criteria for portfolio re-balancing in the event of
3    significant shifts in load.
4        (5) Long-Term Renewable Resources Procurement Plan.
5    The Agency shall prepare a long-term renewable resources
6    procurement plan for the procurement of renewable energy
7    credits under Sections 1-56 and 1-75 of the Illinois Power
8    Agency Act for delivery beginning in the 2017 delivery
9    year.
10            (i) The initial long-term renewable resources
11        procurement plan and all subsequent revisions shall be
12        subject to review and approval by the Commission. For
13        the purposes of this Section, "delivery year" has the
14        same 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 long-term renewable resources planning
18        process shall be conducted as follows:
19                (A) Electric utilities shall provide a range
20            of load forecasts to the Illinois Power Agency
21            within 45 days of the Agency's request for
22            forecasts, which request shall specify the length
23            and conditions for the forecasts including, but
24            not limited to, the quantity of distributed
25            generation expected to be interconnected for each
26            year.

 

 

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

 

 

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

 

 

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1            Within 21 days following the end of the 45-day
2            review period, the Agency may revise the long-term
3            renewable resources procurement plan based on the
4            comments received and shall file the plan with the
5            Commission for review and approval.
6                (C) Within 14 days after the filing of the
7            initial long-term renewable resources procurement
8            plan or any subsequent revisions, any person
9            objecting to the plan may file an objection with
10            the Commission. Within 21 days after the filing of
11            the plan, the Commission shall determine whether a
12            hearing is necessary. The Commission shall enter
13            its order confirming or modifying the initial
14            long-term renewable resources procurement plan or
15            any subsequent revisions within 120 days after the
16            filing of the plan by the Illinois Power Agency.
17                (D) The Commission shall approve the initial
18            long-term renewable resources procurement plan and
19            any subsequent revisions, including expressly the
20            forecast used in the plan and taking into account
21            that funding will be limited to the amount of
22            revenues actually collected by the utilities, if
23            the Commission determines that the plan will
24            reasonably and prudently accomplish the
25            requirements of Section 1-56 and subsection (c) of
26            Section 1-75 of the Illinois Power Agency Act. The

 

 

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1            Commission shall also approve the process for the
2            submission, review, and approval of the proposed
3            contracts to procure renewable energy credits or
4            implement the programs authorized by the
5            Commission pursuant to a long-term renewable
6            resources procurement plan approved under this
7            Section.
8                In approving any long-term renewable resources
9            procurement plan after the effective date of this
10            amendatory Act of the 102nd General Assembly, the
11            Commission shall approve or modify the Agency's
12            proposal for minimum equity standards pursuant to
13            subsection (c-10) of Section 1-75 of the Illinois
14            Power Agency Act. The Commission shall consider
15            any analysis performed by the Agency in developing
16            its proposal, including past performance,
17            availability of equity eligible contractors, and
18            availability of equity eligible persons at the
19            time the long-term renewable resources procurement
20            plan is approved.
21            (iii) The Agency or third parties contracted by
22        the Agency shall implement all programs authorized by
23        the Commission in an approved long-term renewable
24        resources procurement plan without further review and
25        approval by the Commission. Third parties shall not
26        begin implementing any programs or receive any payment

 

 

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1        under this Section until the Commission has approved
2        the contract or contracts under the process authorized
3        by the Commission in item (D) of subparagraph (ii) of
4        paragraph (5) of this subsection (b) and the third
5        party and the Agency or utility, as applicable, have
6        executed the contract. For those renewable energy
7        credits subject to procurement through a competitive
8        bid process under the plan or under the initial
9        forward procurements for wind and solar resources
10        described in subparagraph (G) of paragraph (1) of
11        subsection (c) of Section 1-75 of the Illinois Power
12        Agency Act, the Agency shall follow the procurement
13        process specified in the provisions relating to
14        electricity procurement in subsections (e) through (i)
15        of this Section.
16            (iv) An electric utility shall recover its costs
17        associated with the procurement of renewable energy
18        credits under this Section and pursuant to subsection
19        (c-5) of Section 1-75 of the Illinois Power Agency Act
20        through an automatic adjustment clause tariff under
21        subsection (k) or a tariff pursuant to subsection
22        (i-5), as applicable, of Section 16-108 of this Act. A
23        utility shall not be required to advance any payment
24        or pay any amounts under this Section that exceed the
25        actual amount of revenues collected by the utility
26        under paragraph (6) of subsection (c) of Section 1-75

 

 

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1        of the Illinois Power Agency Act, subsection (c-5) of
2        Section 1-75 of the Illinois Power Agency Act, and
3        subsection (k) or subsection (i-5), as applicable, of
4        Section 16-108 of this Act, and contracts executed
5        under this Section shall expressly incorporate this
6        limitation.
7            (v) For the public interest, safety, and welfare,
8        the Agency and the Commission may adopt rules to carry
9        out the provisions of this Section on an emergency
10        basis immediately following the effective date of this
11        amendatory Act of the 99th General Assembly.
12            (vi) On or before July 1 of each year, the
13        Commission shall hold an informal hearing for the
14        purpose of receiving comments on the prior year's
15        procurement process and any recommendations for
16        change.
17        (6) Long-Term Energy Storage Resources Procurement
18    Plan. The Agency shall prepare an energy storage resources
19    procurement plan for the procurement of energy storage
20    credits in compliance with this Section and Section 1-93
21    of the Illinois Power Agency Act.
22            (i) The initial energy storage resources
23        procurement plan and all subsequent revisions shall be
24        subject to review and approval by the Commission. For
25        purposes of this Section, "delivery year" has the same
26        meaning as in Section 1-10 of the Illinois Power

 

 

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1        Agency Act. For purposes of this Section, "Agency"
2        shall mean the Illinois Power Agency.
3            (ii) The energy storage resources planning process
4        shall be conducted as follows:
5                (A) the Agency shall publish for comment the
6            initial energy storage resources procurement plan
7            no later than 120 days after the effective date of
8            this amendatory Act of the 103rd General Assembly
9            and shall review, and may revise, the plan at
10            least every 2 years thereafter. To the extent
11            practicable, the Agency shall review and propose
12            any revisions to the energy storage resources
13            procurement plan in conjunction with the Agency's
14            other planning and approval processes conducted
15            under this Section. The initial energy storage
16            resources procurement plan shall:
17                    (aa) include a schedule for procurements
18                for energy storage credits from qualified
19                energy storage systems consistent with Section
20                1-93 of the Illinois Power Agency Act; and
21                    (bb) identify the process whereby the
22                Agency will submit to the Commission for
23                review and approval the proposed contracts to
24                implement the programs required by such plan.
25                Copies of the initial energy storage resources
26                procurement plan and all subsequent revisions

 

 

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1                shall be posted and made publicly available on
2                the Agency's and Commission's websites, and
3                copies shall also be provided to each affected
4                electric utility. An affected utility and
5                other interested parties shall have 45 days
6                following the date of posting to provide
7                comment to the Agency on the initial energy
8                storage resources procurement plan and all
9                subsequent revisions. All comments shall be
10                posed on the Agency's and Commission's
11                websites; and
12                (B) the Commission shall approve the initial
13            energy storage resources procurement plan and any
14            subsequent revisions if the Commission determines
15            that the plan will reasonably and prudently
16            accomplish the requirements of Section 1-93 of the
17            Illinois Power Agency Act. The Commission shall
18            also approve the process for the submission,
19            review, and approval of the proposed contracts to
20            procure energy storage credits or implement the
21            programs authorized by the Commission pursuant to
22            a long-term energy storage resources procurement
23            plan approved under this Section.
24                In approving any long-term energy storage
25            procurement plan after the effective date of this
26            amendatory Act of the 103rd General Assembly, the

 

 

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1            Commission shall approve or modify the Agency's
2            proposal for minimum equity standards pursuant to
3            subsection (c-10) of Section 1-75 of the Illinois
4            Power Agency Act. The Commission shall consider
5            any analysis performed by the Agency in developing
6            its proposal, including past performance,
7            availability of equity eligible contractors, and
8            availability of equity eligible persons at the
9            time the long-term renewable resources procurement
10            plan is approved.
11            (iii) The Agency or third parties contracted by
12        the Agency shall implement all programs authorized by
13        the Commission in an approved long-term energy storage
14        procurement plan without further review and approval
15        by the Commission. Third parties shall not begin
16        implementing any programs or receive any payment under
17        this Section until the Commission has approved the
18        long-term storage contract.
19            (iv) An electric utility shall recover its costs
20        associated with the procurement of energy storage
21        credits under this Section and pursuant to Section
22        1-93 of the Illinois Power Agency Act through an
23        automatic adjustment clause tariff under subsection
24        (k) or a tariff pursuant to subsection (i-5), as
25        applicable, of Section 16-108.
26    (b-5) An electric utility that as of January 1, 2019

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1the confidential reports submitted by the procurement
2administrator and procurement monitor, and shall accept or
3reject the recommendations of the procurement administrator
4within 2 business days after receipt of the reports.
5    (g) Within 3 business days after the Commission decision
6approving the results of a procurement event, the utility
7shall enter into binding contractual arrangements with the
8winning suppliers using the standard form contracts; except
9that the utility shall not be required either directly or
10indirectly to execute the contracts if a tariff that is
11consistent with subsection (l) of this Section has not been
12approved and placed into effect for that utility.
13    (h) For the procurement of standard wholesale products,
14the names of the successful bidders and the load weighted
15average of the winning bid prices for each contract type and
16for each contract term shall be made available to the public at
17the time of Commission approval of a procurement event. For
18procurements conducted to meet the requirements of subsection
19(b) of Section 1-56 or subsection (c) of Section 1-75 of the
20Illinois Power Agency Act governed by the provisions of this
21Section, the address and nameplate capacity of the new
22renewable energy generating facility proposed by a winning
23bidder shall also be made available to the public at the time
24of Commission approval of a procurement event, along with the
25business address and contact information for any winning
26bidder. An estimate or approximation of the nameplate capacity

 

 

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1of the new renewable energy generating facility may be
2disclosed if necessary to protect the confidentiality of
3individual bid prices.
4    The Commission, the procurement monitor, the procurement
5administrator, the Illinois Power Agency, and all participants
6in the procurement process shall maintain the confidentiality
7of all other supplier and bidding information in a manner
8consistent with all applicable laws, rules, regulations, and
9tariffs. Confidential information, including the confidential
10reports submitted by the procurement administrator and
11procurement monitor pursuant to subsection (f) of this
12Section, shall not be made publicly available and shall not be
13discoverable by any party in any proceeding, absent a
14compelling demonstration of need, nor shall those reports be
15admissible in any proceeding other than one for law
16enforcement purposes.
17    (i) Within 2 business days after a Commission decision
18approving the results of a procurement event or such other
19date as may be required by the Commission from time to time,
20the utility shall file for informational purposes with the
21Commission its actual or estimated retail supply charges, as
22applicable, by customer supply group reflecting the costs
23associated with the procurement and computed in accordance
24with the tariffs filed pursuant to subsection (l) of this
25Section and approved by the Commission.
26    (j) Within 60 days following August 28, 2007 (the

 

 

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1effective date of Public Act 95-481), each electric utility
2that on December 31, 2005 provided electric service to at
3least 100,000 customers in Illinois shall prepare and file
4with the Commission an initial procurement plan, which shall
5conform in all material respects to the requirements of the
6procurement plan set forth in subsection (b); provided,
7however, that the Illinois Power Agency Act shall not apply to
8the initial procurement plan prepared pursuant to this
9subsection. The initial procurement plan shall identify the
10portfolio of power and energy products to be procured and
11delivered for the period June 2008 through May 2009, and shall
12identify the proposed procurement administrator, who shall
13have the same experience and expertise as is required of a
14procurement administrator hired pursuant to Section 1-75 of
15the Illinois Power Agency Act. Copies of the procurement plan
16shall be posted and made publicly available on the
17Commission's website. The initial procurement plan may include
18contracts for renewable resources that extend beyond May 2009.
19        (i) Within 14 days following filing of the initial
20    procurement plan, any person may file a detailed objection
21    with the Commission contesting the procurement plan
22    submitted by the electric utility. All objections to the
23    electric utility's plan shall be specific, supported by
24    data or other detailed analyses. The electric utility may
25    file a response to any objections to its procurement plan
26    within 7 days after the date objections are due to be

 

 

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1    filed. Within 7 days after the date the utility's response
2    is due, the Commission shall determine whether a hearing
3    is necessary. If it determines that a hearing is
4    necessary, it shall require the hearing to be completed
5    and issue an order on the procurement plan within 60 days
6    after the filing of the procurement plan by the electric
7    utility.
8        (ii) The order shall approve or modify the procurement
9    plan, approve an independent procurement administrator,
10    and approve or modify the electric utility's tariffs that
11    are proposed with the initial procurement plan. The
12    Commission shall approve the procurement plan if the
13    Commission determines that it will ensure adequate,
14    reliable, affordable, efficient, and environmentally
15    sustainable electric service at the lowest total cost over
16    time, taking into account any benefits of price stability.
17    (k) (Blank).
18    (k-5) (Blank).
19    (l) An electric utility shall recover its costs incurred
20under this Section and subsection (c-5) of Section 1-75 of the
21Illinois Power Agency Act, including, but not limited to, the
22costs of procuring power and energy demand-response resources
23under this Section and its costs for purchasing renewable
24energy credits pursuant to subsection (c-5) of Section 1-75 of
25the Illinois Power Agency Act. The utility shall file with the
26initial procurement plan its proposed tariffs through which

 

 

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

 

 

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1provision of full requirements service under fixed-price
2bundled service tariffs subsequent to December 31, 2006. All
3such costs shall be deemed to have been prudently incurred.
4The pass-through tariffs that are filed and approved pursuant
5to this Section shall not be subject to review under, or in any
6way limited by, Section 16-111(i) of this Act. All of the costs
7incurred by the electric utility associated with the purchase
8of zero emission credits in accordance with subsection (d-5)
9of Section 1-75 of the Illinois Power Agency Act, all costs
10incurred by the electric utility associated with the purchase
11of carbon mitigation credits in accordance with subsection
12(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
13beginning June 1, 2017, all of the costs incurred by the
14electric utility associated with the purchase of renewable
15energy resources in accordance with Sections 1-56 and 1-75 of
16the Illinois Power Agency Act, and all of the costs incurred by
17the electric utility in purchasing renewable energy credits in
18accordance with subsection (c-5) of Section 1-75 of the
19Illinois Power Agency Act, and all costs incurred by the
20electric utility in purchasing energy storage credits in
21accordance with Section 1-93 of the Illinois Power Agency Act
22shall be recovered through the electric utility's tariffed
23charges applicable to all of its retail customers, as
24specified in subsection (k) or subsection (i-5), as
25applicable, of Section 16-108 of this Act, and shall not be
26recovered through the electric utility's tariffed charges for

 

 

SB3636- 99 -LRB103 39306 CES 69460 b

1electric power and energy supply to its eligible retail
2customers.
3    (m) The Commission has the authority to adopt rules to
4carry out the provisions of this Section. For the public
5interest, safety, and welfare, the Commission also has
6authority to adopt rules to carry out the provisions of this
7Section on an emergency basis immediately following August 28,
82007 (the effective date of Public Act 95-481).
9    (n) Notwithstanding any other provision of this Act, any
10affiliated electric utilities that submit a single procurement
11plan covering their combined needs may procure for those
12combined needs in conjunction with that plan, and may enter
13jointly into power supply contracts, purchases, and other
14procurement arrangements, and allocate capacity and energy and
15cost responsibility therefor among themselves in proportion to
16their requirements.
17    (o) On or before June 1 of each year, the Commission shall
18hold an informal hearing for the purpose of receiving comments
19on the prior year's procurement process and any
20recommendations for change.
21    (p) An electric utility subject to this Section may
22propose to invest, lease, own, or operate an electric
23generation facility as part of its procurement plan, provided
24the utility demonstrates that such facility is the least-cost
25option to provide electric service to those retail customers
26included in the plan's electric supply service requirements.

 

 

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1If the facility is shown to be the least-cost option and is
2included in a procurement plan prepared in accordance with
3Section 1-75 of the Illinois Power Agency Act and this
4Section, then the electric utility shall make a filing
5pursuant to Section 8-406 of this Act, and may request of the
6Commission any statutory relief required thereunder. If the
7Commission grants all of the necessary approvals for the
8proposed facility, such supply shall thereafter be considered
9as a pre-existing contract under subsection (b) of this
10Section. The Commission shall in any order approving a
11proposal under this subsection specify how the utility will
12recover the prudently incurred costs of investing in, leasing,
13owning, or operating such generation facility through just and
14reasonable rates charged to those retail customers included in
15the plan's electric supply service requirements. Cost recovery
16for facilities included in the utility's procurement plan
17pursuant to this subsection shall not be subject to review
18under or in any way limited by the provisions of Section
1916-111(i) of this Act. Nothing in this Section is intended to
20prohibit a utility from filing for a fuel adjustment clause as
21is otherwise permitted under Section 9-220 of this Act.
22    (q) If the Illinois Power Agency filed with the
23Commission, under Section 16-111.5 of this Act, its proposed
24procurement plan for the period commencing June 1, 2017, and
25the Commission has not yet entered its final order approving
26the plan on or before the effective date of this amendatory Act

 

 

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1of the 99th General Assembly, then the Illinois Power Agency
2shall file a notice of withdrawal with the Commission, after
3the effective date of this amendatory Act of the 99th General
4Assembly, to withdraw the proposed procurement of renewable
5energy resources to be approved under the plan, other than the
6procurement of renewable energy credits from distributed
7renewable energy generation devices using funds previously
8collected from electric utilities' retail customers that take
9service pursuant to electric utilities' hourly pricing tariff
10or tariffs and, for an electric utility that serves less than
11100,000 retail customers in the State, other than the
12procurement of renewable energy credits from distributed
13renewable energy generation devices. Upon receipt of the
14notice, the Commission shall enter an order that approves the
15withdrawal of the proposed procurement of renewable energy
16resources from the plan. The initially proposed procurement of
17renewable energy resources shall not be approved or be the
18subject of any further hearing, investigation, proceeding, or
19order of any kind.
20    This amendatory Act of the 99th General Assembly preempts
21and supersedes any order entered by the Commission that
22approved the Illinois Power Agency's procurement plan for the
23period commencing June 1, 2017, to the extent it is
24inconsistent with the provisions of this amendatory Act of the
2599th General Assembly. To the extent any previously entered
26order approved the procurement of renewable energy resources,

 

 

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1the portion of that order approving the procurement shall be
2void, other than the procurement of renewable energy credits
3from distributed renewable energy generation devices using
4funds previously collected from electric utilities' retail
5customers that take service under electric utilities' hourly
6pricing tariff or tariffs and, for an electric utility that
7serves less than 100,000 retail customers in the State, other
8than the procurement of renewable energy credits for
9distributed renewable energy generation devices.
10(Source: P.A. 102-662, eff. 9-15-21.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.