| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
1 | AN ACT concerning regulation.
| ||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||
4 | Section 5. The Illinois Power Agency Act is amended by | ||||||||||||||||||||||||
5 | changing Sections 1-5, 1-10, 1-20, 1-56, and 1-75 as follows: | ||||||||||||||||||||||||
6 | (20 ILCS 3855/1-5) | ||||||||||||||||||||||||
7 | Sec. 1-5. Legislative declarations and findings. The | ||||||||||||||||||||||||
8 | General Assembly finds and declares: | ||||||||||||||||||||||||
9 | (1) The health, welfare, and prosperity of all Illinois | ||||||||||||||||||||||||
10 | citizens require the provision of adequate, reliable, | ||||||||||||||||||||||||
11 | affordable, efficient, and environmentally sustainable | ||||||||||||||||||||||||
12 | electric service at the lowest total cost over time, taking | ||||||||||||||||||||||||
13 | into account any benefits of price stability. | ||||||||||||||||||||||||
14 | (2) The transition to retail competition is not | ||||||||||||||||||||||||
15 | complete. Some customers, especially residential and small | ||||||||||||||||||||||||
16 | commercial customers, have failed to benefit from lower | ||||||||||||||||||||||||
17 | electricity costs from retail and wholesale competition. | ||||||||||||||||||||||||
18 | (3) Escalating prices for electricity in Illinois pose | ||||||||||||||||||||||||
19 | a serious threat to the economic well-being, health, and | ||||||||||||||||||||||||
20 | safety of the residents of and the commerce and industry of | ||||||||||||||||||||||||
21 | the State. | ||||||||||||||||||||||||
22 | (4) To protect against this threat to economic | ||||||||||||||||||||||||
23 | well-being, health, and safety it is necessary to improve |
| |||||||
| |||||||
1 | the process of procuring electricity to serve Illinois | ||||||
2 | residents, to promote investment in energy efficiency and | ||||||
3 | demand-response measures, and to support development of | ||||||
4 | clean coal technologies and renewable resources. | ||||||
5 | (5) Procuring a diverse electricity supply portfolio | ||||||
6 | will ensure the lowest total cost over time for adequate, | ||||||
7 | reliable, efficient, and environmentally sustainable | ||||||
8 | electric service. | ||||||
9 | (6) Including cost-effective renewable resources in | ||||||
10 | that portfolio will reduce long-term direct and indirect | ||||||
11 | costs to consumers by decreasing environmental impacts and | ||||||
12 | by avoiding or delaying the need for new generation, | ||||||
13 | transmission, and distribution infrastructure. | ||||||
14 | (7) Energy efficiency, demand-response measures, and | ||||||
15 | renewable energy are resources currently underused in | ||||||
16 | Illinois. These and other demand-side resources should be | ||||||
17 | used when cost-effective to reduce costs to consumers and | ||||||
18 | encourage job creation. | ||||||
19 | (8) The State should encourage the use of advanced | ||||||
20 | clean coal technologies that capture and sequester carbon | ||||||
21 | dioxide emissions to advance environmental protection | ||||||
22 | goals and to demonstrate the viability of coal and | ||||||
23 | coal-derived fuels in a carbon-constrained economy. | ||||||
24 | (9) The General Assembly enacted Public Act 96-0795 to | ||||||
25 | reform the State's purchasing processes, recognizing that | ||||||
26 | government procurement is susceptible to abuse if |
| |||||||
| |||||||
1 | structural and procedural safeguards are not in place to | ||||||
2 | ensure independence, insulation, oversight, and | ||||||
3 | transparency. | ||||||
4 | (10) The principles that underlie the procurement | ||||||
5 | reform legislation apply also in the context of power | ||||||
6 | purchasing. | ||||||
7 | The General Assembly therefore finds that it is necessary | ||||||
8 | to create the Illinois Power Agency and that the goals and | ||||||
9 | objectives of that Agency are to accomplish each of the | ||||||
10 | following: | ||||||
11 | (A) Develop electricity procurement plans to ensure | ||||||
12 | adequate, reliable, affordable, efficient, and | ||||||
13 | environmentally sustainable electric service at the lowest | ||||||
14 | total cost over time, taking into account any benefits of | ||||||
15 | price stability, for electric utilities that on December | ||||||
16 | 31, 2005 provided electric service to at least 100,000 | ||||||
17 | customers in Illinois and for small multi-jurisdictional | ||||||
18 | electric utilities that (i) on December 31, 2005 served | ||||||
19 | less than 100,000 customers in Illinois and (ii) request a | ||||||
20 | procurement plan for their Illinois jurisdictional load. | ||||||
21 | The procurement plan shall be updated on an annual basis | ||||||
22 | and shall include renewable energy resources sufficient to | ||||||
23 | achieve the standards specified in this Act. | ||||||
24 | (B) Conduct competitive procurement processes to | ||||||
25 | procure the supply resources identified in the procurement | ||||||
26 | plan. |
| |||||||
| |||||||
1 | (C) Develop electric generation and co-generation | ||||||
2 | facilities that use indigenous coal or renewable | ||||||
3 | resources, or both, financed with bonds issued by the | ||||||
4 | Illinois Finance Authority. | ||||||
5 | (D) Supply electricity from the Agency's facilities at | ||||||
6 | cost to one or more of the following: municipal electric | ||||||
7 | systems, governmental aggregators, or rural electric | ||||||
8 | cooperatives in Illinois.
| ||||||
9 | (E) Ensure that the process of power procurement is | ||||||
10 | conducted in an ethical and transparent fashion, immune | ||||||
11 | from improper influence. | ||||||
12 | (F) Continue to review its policies and practices to | ||||||
13 | determine how best to meet its mission of providing the | ||||||
14 | lowest cost power to the greatest number of people, at any | ||||||
15 | given point in time, in accordance with applicable law. | ||||||
16 | (G) Operate in a structurally insulated, independent, | ||||||
17 | and transparent fashion so that nothing impedes the | ||||||
18 | Agency's mission to secure power at the best prices the | ||||||
19 | market will bear, provided that the Agency meets all | ||||||
20 | applicable legal requirements. | ||||||
21 | (Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11; | ||||||
22 | 97-813, eff. 7-13-12.)
| ||||||
23 | (20 ILCS 3855/1-10)
| ||||||
24 | Sec. 1-10. Definitions. | ||||||
25 | "Agency" means the Illinois Power Agency. |
| |||||||
| |||||||
1 | "Agency loan agreement" means any agreement pursuant to | ||||||
2 | which the Illinois Finance Authority agrees to loan the | ||||||
3 | proceeds of revenue bonds issued with respect to a project to | ||||||
4 | the Agency upon terms providing for loan repayment installments | ||||||
5 | at least sufficient to pay when due all principal of, interest | ||||||
6 | and premium, if any, on those revenue bonds, and providing for | ||||||
7 | maintenance, insurance, and other matters in respect of the | ||||||
8 | project. | ||||||
9 | "Authority" means the Illinois Finance Authority. | ||||||
10 | "Brownfield solar project" means an electric generating | ||||||
11 | facility that: | ||||||
12 | (1) generates electricity using photovoltaic cells; | ||||||
13 | (2) is interconnected at the distribution system level | ||||||
14 | of either an electric utility as defined in this Section, a | ||||||
15 | municipal utility as defined in Section 3-105 of the Public | ||||||
16 | Utilities Act, or a rural electric cooperative as defined | ||||||
17 | in Section 3-119 of the Public Utilities Act; and | ||||||
18 | (3) is located on a site that is regulated by any of | ||||||
19 | the following entities under the following programs: | ||||||
20 | (i) the United States Environmental Protection | ||||||
21 | Agency under the federal Comprehensive Environmental | ||||||
22 | Response, Compensation, and Liability Act of 1980, as | ||||||
23 | amended; | ||||||
24 | (ii) the United States Environmental Protection | ||||||
25 | Agency under the Corrective Action Program of the | ||||||
26 | federal Resource Conservation and Recovery Act, as |
| |||||||
| |||||||
1 | amended; | ||||||
2 | (iii) the Illinois Environmental Protection Agency | ||||||
3 | under the Illinois Site Remediation Program; or | ||||||
4 | (iv) the Illinois Environmental Protection Agency | ||||||
5 | under the Illinois Solid Waste Program. | ||||||
6 | "Clean coal facility" means an electric generating | ||||||
7 | facility that uses primarily coal as a feedstock and that | ||||||
8 | captures and sequesters carbon dioxide emissions at the | ||||||
9 | following levels: at least 50% of the total carbon dioxide | ||||||
10 | emissions that the facility would otherwise emit if, at the | ||||||
11 | time construction commences, the facility is scheduled to | ||||||
12 | commence operation before 2016, at least 70% of the total | ||||||
13 | carbon dioxide emissions that the facility would otherwise emit | ||||||
14 | if, at the time construction commences, the facility is | ||||||
15 | scheduled to commence operation during 2016 or 2017, and at | ||||||
16 | least 90% of the total carbon dioxide emissions that the | ||||||
17 | facility would otherwise emit if, at the time construction | ||||||
18 | commences, the facility is scheduled to commence operation | ||||||
19 | after 2017. The power block of the clean coal facility shall | ||||||
20 | not exceed allowable emission rates for sulfur dioxide, | ||||||
21 | nitrogen oxides, carbon monoxide, particulates and mercury for | ||||||
22 | a natural gas-fired combined-cycle facility the same size as | ||||||
23 | and in the same location as the clean coal facility at the time | ||||||
24 | the clean coal facility obtains an approved air permit. All | ||||||
25 | coal used by a clean coal facility shall have high volatile | ||||||
26 | bituminous rank and greater than 1.7 pounds of sulfur per |
| |||||||
| |||||||
1 | million btu content, unless the clean coal facility does not | ||||||
2 | use gasification technology and was operating as a conventional | ||||||
3 | coal-fired electric generating facility on June 1, 2009 (the | ||||||
4 | effective date of Public Act 95-1027). | ||||||
5 | "Clean coal SNG brownfield facility" means a facility that | ||||||
6 | (1) has commenced construction by July 1, 2015 on an urban | ||||||
7 | brownfield site in a municipality with at least 1,000,000 | ||||||
8 | residents; (2) uses a gasification process to produce | ||||||
9 | substitute natural gas; (3) uses coal as at least 50% of the | ||||||
10 | total feedstock over the term of any sourcing agreement with a | ||||||
11 | utility and the remainder of the feedstock may be either | ||||||
12 | petroleum coke or coal, with all such coal having a high | ||||||
13 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
14 | million Btu content unless the facility reasonably determines
| ||||||
15 | that it is necessary to use additional petroleum coke to
| ||||||
16 | deliver additional consumer savings, in which case the
facility | ||||||
17 | shall use coal for at least 35% of the total
feedstock over the | ||||||
18 | term of any sourcing agreement; and (4) captures and sequesters | ||||||
19 | at least 85% of the total carbon dioxide emissions that the | ||||||
20 | facility would otherwise emit. | ||||||
21 | "Clean coal SNG facility" means a facility that uses a | ||||||
22 | gasification process to produce substitute natural gas, that | ||||||
23 | sequesters at least 90% of the total carbon dioxide emissions | ||||||
24 | that the facility would otherwise emit, that uses at least 90% | ||||||
25 | coal as a feedstock, with all such coal having a high | ||||||
26 | bituminous rank and greater than 1.7 pounds of sulfur per |
| |||||||
| |||||||
1 | million btu content, and that has a valid and effective permit | ||||||
2 | to construct emission sources and air pollution control | ||||||
3 | equipment and approval with respect to the federal regulations | ||||||
4 | for Prevention of Significant Deterioration of Air Quality | ||||||
5 | (PSD) for the plant pursuant to the federal Clean Air Act; | ||||||
6 | provided, however, a clean coal SNG brownfield facility shall | ||||||
7 | not be a clean coal SNG facility. | ||||||
8 | "Commission" means the Illinois Commerce Commission. | ||||||
9 | "Community solar project" means an electric generating | ||||||
10 | facility that: | ||||||
11 | (1) generates electricity using photovoltaic cells; | ||||||
12 | (2) is interconnected at the distribution system level | ||||||
13 | of an electric utility as defined in this Section; | ||||||
14 | (3) credits the value of electricity generated by the | ||||||
15 | facility to the subscribers of the facility; and | ||||||
16 | (4) is limited in nameplate capacity to no more than | ||||||
17 | 2,000 kilowatts. | ||||||
18 | "Costs incurred in connection with the development and | ||||||
19 | construction of a facility" means: | ||||||
20 | (1) the cost of acquisition of all real property, | ||||||
21 | fixtures, and improvements in connection therewith and | ||||||
22 | equipment, personal property, and other property, rights, | ||||||
23 | and easements acquired that are deemed necessary for the | ||||||
24 | operation and maintenance of the facility; | ||||||
25 | (2) financing costs with respect to bonds, notes, and | ||||||
26 | other evidences of indebtedness of the Agency; |
| |||||||
| |||||||
1 | (3) all origination, commitment, utilization, | ||||||
2 | facility, placement, underwriting, syndication, credit | ||||||
3 | enhancement, and rating agency fees; | ||||||
4 | (4) engineering, design, procurement, consulting, | ||||||
5 | legal, accounting, title insurance, survey, appraisal, | ||||||
6 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
7 | interest rate swap, capitalized interest, contingency, as | ||||||
8 | required by lenders, and other financing costs, and other | ||||||
9 | expenses for professional services; and | ||||||
10 | (5) the costs of plans, specifications, site study and | ||||||
11 | investigation, installation, surveys, other Agency costs | ||||||
12 | and estimates of costs, and other expenses necessary or | ||||||
13 | incidental to determining the feasibility of any project, | ||||||
14 | together with such other expenses as may be necessary or | ||||||
15 | incidental to the financing, insuring, acquisition, and | ||||||
16 | construction of a specific project and starting up, | ||||||
17 | commissioning, and placing that project in operation. | ||||||
18 | "Delivery services" has the same definition as found in | ||||||
19 | Section 16-102 of the Public Utilities Act. | ||||||
20 | "Delivery year" means the year beginning June 1 of the year | ||||||
21 | referenced and ending May 31 of the following year. | ||||||
22 | "Department" means the Department of Commerce and Economic | ||||||
23 | Opportunity. | ||||||
24 | "Director" means the Director of the Illinois Power Agency. | ||||||
25 | "Demand-response" means measures that decrease peak | ||||||
26 | electricity demand or shift demand from peak to off-peak |
| |||||||
| |||||||
1 | periods. | ||||||
2 | "Distributed renewable energy generation device" means a | ||||||
3 | device that is: | ||||||
4 | (1) powered by wind, solar thermal energy, | ||||||
5 | photovoltaic cells and panels, biodiesel, crops and | ||||||
6 | untreated and unadulterated organic waste biomass, tree | ||||||
7 | waste, and hydropower that does not involve new | ||||||
8 | construction or significant expansion of hydropower dams; | ||||||
9 | (2) interconnected at the distribution system level of | ||||||
10 | either an electric utility as defined in this Section, an | ||||||
11 | alternative retail electric supplier as defined in Section | ||||||
12 | 16-102 of the Public Utilities Act, a municipal utility as | ||||||
13 | defined in Section 3-105 of the Public Utilities Act, or a | ||||||
14 | rural electric cooperative as defined in Section 3-119 of | ||||||
15 | the Public Utilities Act; | ||||||
16 | (3) located on the customer side of the customer's | ||||||
17 | electric meter and is primarily used to offset that | ||||||
18 | customer's electricity load; and | ||||||
19 | (4) limited in nameplate capacity to no more than 2,000 | ||||||
20 | kilowatts. | ||||||
21 | "Energy efficiency" means measures that reduce the amount | ||||||
22 | of electricity or natural gas required to achieve a given end | ||||||
23 | use. "Energy efficiency" also includes measures that reduce the | ||||||
24 | total Btus of electricity and natural gas needed to meet the | ||||||
25 | end use or uses. | ||||||
26 | "Electric utility" has the same definition as found in |
| |||||||
| |||||||
1 | Section 16-102 of the Public Utilities Act. | ||||||
2 | "Facility" means an electric generating unit or a | ||||||
3 | co-generating unit that produces electricity along with | ||||||
4 | related equipment necessary to connect the facility to an | ||||||
5 | electric transmission or distribution system. | ||||||
6 | "Governmental aggregator" means one or more units of local | ||||||
7 | government that individually or collectively procure | ||||||
8 | electricity to serve residential retail electrical loads | ||||||
9 | located within its or their jurisdiction. | ||||||
10 | "Local government" means a unit of local government as | ||||||
11 | defined in Section 1 of Article VII of the Illinois | ||||||
12 | Constitution. | ||||||
13 | "Municipality" means a city, village, or incorporated | ||||||
14 | town. | ||||||
15 | "Person" means any natural person, firm, partnership, | ||||||
16 | corporation, either domestic or foreign, company, association, | ||||||
17 | limited liability company, joint stock company, or association | ||||||
18 | and includes any trustee, receiver, assignee, or personal | ||||||
19 | representative thereof. | ||||||
20 | "Nameplate capacity" means the aggregate inverter | ||||||
21 | nameplate capacity in kilowatts AC. | ||||||
22 | "Project" means the planning, bidding, and construction of | ||||||
23 | a facility. | ||||||
24 | "Public utility" has the same definition as found in | ||||||
25 | Section 3-105 of the Public Utilities Act. | ||||||
26 | "Real property" means any interest in land together with |
| |||||||
| |||||||
1 | all structures, fixtures, and improvements thereon, including | ||||||
2 | lands under water and riparian rights, any easements, | ||||||
3 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
4 | interests, together with any liens, judgments, mortgages, or | ||||||
5 | other claims or security interests related to real property. | ||||||
6 | "Renewable energy credit" means a tradable credit that | ||||||
7 | represents the environmental attributes of one megawatt hour a | ||||||
8 | certain amount of energy produced from a renewable energy | ||||||
9 | generating facility resource . | ||||||
10 | "Renewable energy resources" includes energy and its | ||||||
11 | associated renewable energy credit or renewable energy credits | ||||||
12 | from wind, solar thermal energy, photovoltaic cells and panels, | ||||||
13 | biodiesel, anaerobic digestion, crops and untreated and | ||||||
14 | unadulterated organic waste biomass, tree waste, hydropower | ||||||
15 | that does not involve new construction or significant expansion | ||||||
16 | of hydropower dams, and other alternative sources of | ||||||
17 | environmentally preferable energy. For purposes of this Act, | ||||||
18 | landfill gas produced in the State is considered a renewable | ||||||
19 | energy resource. "Renewable energy resources" does not include | ||||||
20 | the incineration or burning of tires, garbage, general | ||||||
21 | household, institutional, and commercial waste, industrial | ||||||
22 | lunchroom or office waste, landscape waste other than tree | ||||||
23 | waste, railroad crossties, utility poles, or construction or | ||||||
24 | demolition debris, other than untreated and unadulterated | ||||||
25 | waste wood. | ||||||
26 | "Revenue bond" means any bond, note, or other evidence of |
| |||||||
| |||||||
1 | indebtedness issued by the Authority, the principal and | ||||||
2 | interest of which is payable solely from revenues or income | ||||||
3 | derived from any project or activity of the Agency. | ||||||
4 | "Sequester" means permanent storage of carbon dioxide by | ||||||
5 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
6 | or an oil reservoir, directly or through an enhanced oil | ||||||
7 | recovery process that may involve intermediate storage, | ||||||
8 | regardless of whether these activities are conducted by a clean | ||||||
9 | coal facility, a clean coal SNG facility, a clean coal SNG | ||||||
10 | brownfield facility, or a party with which a clean coal | ||||||
11 | facility, clean coal SNG facility, or clean coal SNG brownfield | ||||||
12 | facility has contracted for such purposes. | ||||||
13 | "Service area" has the same definition as found in Section | ||||||
14 | 16-102 of the Public Utilities Act. | ||||||
15 | "Sourcing agreement" means (i) in the case of an electric | ||||||
16 | utility, an agreement between the owner of a clean coal | ||||||
17 | facility and such electric utility, which agreement shall have | ||||||
18 | terms and conditions meeting the requirements of paragraph (3) | ||||||
19 | of subsection (d) of Section 1-75, (ii) in the case of an | ||||||
20 | alternative retail electric supplier, an agreement between the | ||||||
21 | owner of a clean coal facility and such alternative retail | ||||||
22 | electric supplier, which agreement shall have terms and | ||||||
23 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
24 | the Public Utilities Act, and (iii) in case of a gas utility, | ||||||
25 | an agreement between the owner of a clean coal SNG brownfield | ||||||
26 | facility and the gas utility, which agreement shall have the |
| |||||||
| |||||||
1 | terms and conditions meeting the requirements of subsection | ||||||
2 | (h-1) of Section 9-220 of the Public Utilities Act. | ||||||
3 | "Standard wholesale product" means any type of product that | ||||||
4 | is routinely traded in a liquid regional wholesale market, | ||||||
5 | including, but not limited to, energy or demand-side resources. | ||||||
6 | "Subscriber" means any customer that takes delivery | ||||||
7 | service from an electric utility who owns one or more | ||||||
8 | subscriptions to a community solar project and who has | ||||||
9 | identified an individual billing meter within the same electric | ||||||
10 | utility service territory as the community solar project is | ||||||
11 | located to which each subscription shall be attributed. Each | ||||||
12 | subscriber to a single community solar project must have a | ||||||
13 | separate legal or corporate identity, and no subscriber's | ||||||
14 | subscriptions may total more than 40% of an individual | ||||||
15 | community solar project. | ||||||
16 | "Subscription" means a percentage interest in a community | ||||||
17 | solar project. Each subscription shall represent a percentage | ||||||
18 | of the community solar project's generating capacity, provided | ||||||
19 | that the subscription is intended to primarily offset part or | ||||||
20 | all of the subscriber's electricity usage. | ||||||
21 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
22 | by gasification of hydrocarbon feedstock, which is | ||||||
23 | substantially interchangeable in use and distribution with | ||||||
24 | conventional natural gas. | ||||||
25 | "Total resource cost test" or "TRC test" means a standard | ||||||
26 | that is met if, for an investment in energy efficiency or |
| |||||||
| |||||||
1 | demand-response measures, the benefit-cost ratio is greater | ||||||
2 | than one. The benefit-cost ratio is the ratio of the net | ||||||
3 | present value of the total benefits of the program to the net | ||||||
4 | present value of the total costs as calculated over the | ||||||
5 | lifetime of the measures. A total resource cost test compares | ||||||
6 | the sum of avoided electric utility costs, representing the | ||||||
7 | benefits that accrue to the system and the participant in the | ||||||
8 | delivery of those efficiency measures, including avoided | ||||||
9 | energy costs, avoided generating capacity costs, avoided | ||||||
10 | transmission and distribution system investments and price | ||||||
11 | suppression effects, as well as other quantifiable societal | ||||||
12 | benefits, including avoided natural gas utility costs, other | ||||||
13 | avoided energy costs, and reasonable estimates of non-energy | ||||||
14 | benefits, such as the health, safety, comfort, operation and | ||||||
15 | maintenance, business productivity, and financial security | ||||||
16 | benefits to low-income and moderate-income customers of | ||||||
17 | efficiency investments, to the sum of all incremental costs of | ||||||
18 | end-use measures that are implemented due to the program | ||||||
19 | (including both utility and participant contributions), plus | ||||||
20 | costs to administer, deliver, and evaluate each demand-side | ||||||
21 | program, to quantify the net savings obtained by substituting | ||||||
22 | the demand-side program for supply resources. In calculating | ||||||
23 | avoided costs of power and energy that an electric utility | ||||||
24 | would otherwise have had to acquire, reasonable estimates shall | ||||||
25 | be included of financial costs likely to be imposed by future | ||||||
26 | regulations and legislation on emissions of greenhouse gases. |
| |||||||
| |||||||
1 | In discounting future costs and benefits for the purpose of | ||||||
2 | computing net present values, a societal discount rate based on | ||||||
3 | real, long-term Treasury bond yields or other appropriate | ||||||
4 | indictors should be used.
| ||||||
5 | (Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491, | ||||||
6 | eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12; | ||||||
7 | 98-90, eff. 7-15-13.)
| ||||||
8 | (20 ILCS 3855/1-20)
| ||||||
9 | Sec. 1-20. General powers of the Agency. | ||||||
10 | (a) The Agency is authorized to do each of the following: | ||||||
11 | (1) Develop electricity procurement plans to ensure | ||||||
12 | adequate, reliable, affordable, efficient, and | ||||||
13 | environmentally sustainable electric service at the lowest | ||||||
14 | total cost over time, taking into account any benefits of | ||||||
15 | price stability, for electric utilities that on December | ||||||
16 | 31, 2005 provided electric service to at least 100,000 | ||||||
17 | customers in Illinois and for small multi-jurisdictional | ||||||
18 | electric utilities that (A) on December 31, 2005 served | ||||||
19 | less than 100,000 customers in Illinois and (B) request a | ||||||
20 | procurement plan for their Illinois jurisdictional load. | ||||||
21 | The electricity procurement plans shall be updated on an | ||||||
22 | annual basis and shall , until May 31, 2016, include | ||||||
23 | electricity generated from renewable resources sufficient | ||||||
24 | to achieve the standards specified in this Act and shall | ||||||
25 | include energy efficiency and demand response resources |
| |||||||
| |||||||
1 | identified under Sections 16-108.5, 16-111.5, and | ||||||
2 | 16-111.5B of the Public Utilities Act . | ||||||
3 | (1.5) Beginning with the planning process for the plan | ||||||
4 | or plans to be implemented in the 2016 delivery year, | ||||||
5 | develop a long-term renewable resources procurement plan | ||||||
6 | in accordance with subdivision (c) of Section 1-75 of this | ||||||
7 | Act for renewable energy credits in amounts sufficient to | ||||||
8 | achieve the standards specified in this Act for all | ||||||
9 | customers taking delivery service from an electric | ||||||
10 | utility. | ||||||
11 | (2) Conduct competitive procurement processes to | ||||||
12 | procure the supply resources identified in the electricity | ||||||
13 | procurement plan, pursuant to Section 16-111.5 of the | ||||||
14 | Public Utilities Act. | ||||||
15 | Beginning with the 2016 delivery year, conduct | ||||||
16 | competitive procurement processes and implement programs | ||||||
17 | to procure renewable energy credits identified in the | ||||||
18 | long-term renewable resources procurement plan developed | ||||||
19 | pursuant to subdivision (c) of Section 1-75 of this Act and | ||||||
20 | procured pursuant to Section 16-111.5C of the Public | ||||||
21 | Utilities Act. | ||||||
22 | (3) Develop electric generation and co-generation | ||||||
23 | facilities that use indigenous coal or renewable | ||||||
24 | resources, or both, financed with bonds issued by the | ||||||
25 | Illinois Finance Authority. | ||||||
26 | (4) Supply electricity from the Agency's facilities at |
| |||||||
| |||||||
1 | cost to one or more of the following: municipal electric | ||||||
2 | systems, governmental aggregators, or rural electric | ||||||
3 | cooperatives in Illinois. | ||||||
4 | (b) Except as otherwise limited by this Act, the Agency has | ||||||
5 | all of the powers necessary or convenient to carry out the | ||||||
6 | purposes and provisions of this Act, including without | ||||||
7 | limitation, each of the following: | ||||||
8 | (1) To have a corporate seal, and to alter that seal at | ||||||
9 | pleasure, and to use it by causing it or a facsimile to be | ||||||
10 | affixed or impressed or reproduced in any other manner. | ||||||
11 | (2) To use the services of the Illinois Finance | ||||||
12 | Authority necessary to carry out the Agency's purposes. | ||||||
13 | (3) To negotiate and enter into loan agreements and | ||||||
14 | other agreements with the Illinois Finance Authority. | ||||||
15 | (4) To obtain and employ personnel and hire consultants | ||||||
16 | that are necessary to fulfill the Agency's purposes, and to | ||||||
17 | make expenditures for that purpose within the | ||||||
18 | appropriations for that purpose. | ||||||
19 | (5) To purchase, receive, take by grant, gift, devise, | ||||||
20 | bequest, or otherwise, lease, or otherwise acquire, own, | ||||||
21 | hold, improve, employ, use, and otherwise deal in and with, | ||||||
22 | real or personal property whether tangible or intangible, | ||||||
23 | or any interest therein, within the State. | ||||||
24 | (6) To acquire real or personal property, whether | ||||||
25 | tangible or intangible, including without limitation | ||||||
26 | property rights, interests in property, franchises, |
| |||||||
| |||||||
1 | obligations, contracts, and debt and equity securities, | ||||||
2 | and to do so by the exercise of the power of eminent domain | ||||||
3 | in accordance with Section 1-21; except that any real | ||||||
4 | property acquired by the exercise of the power of eminent | ||||||
5 | domain must be located within the State. | ||||||
6 | (7) To sell, convey, lease, exchange, transfer, | ||||||
7 | abandon, or otherwise dispose of, or mortgage, pledge, or | ||||||
8 | create a security interest in, any of its assets, | ||||||
9 | properties, or any interest therein, wherever situated. | ||||||
10 | (8) To purchase, take, receive, subscribe for, or | ||||||
11 | otherwise acquire, hold, make a tender offer for, vote, | ||||||
12 | employ, sell, lend, lease, exchange, transfer, or | ||||||
13 | otherwise dispose of, mortgage, pledge, or grant a security | ||||||
14 | interest in, use, and otherwise deal in and with, bonds and | ||||||
15 | other obligations, shares, or other securities (or | ||||||
16 | interests therein) issued by others, whether engaged in a | ||||||
17 | similar or different business or activity. | ||||||
18 | (9) To make and execute agreements, contracts, and | ||||||
19 | other instruments necessary or convenient in the exercise | ||||||
20 | of the powers and functions of the Agency under this Act, | ||||||
21 | including contracts with any person, including personal | ||||||
22 | service contracts, or with any local government, State | ||||||
23 | agency, or other entity; and all State agencies and all | ||||||
24 | local governments are authorized to enter into and do all | ||||||
25 | things necessary to perform any such agreement, contract, | ||||||
26 | or other instrument with the Agency. No such agreement, |
| |||||||
| |||||||
1 | contract, or other instrument shall exceed 40 years. | ||||||
2 | (10) To lend money, invest and reinvest its funds in | ||||||
3 | accordance with the Public Funds Investment Act, and take | ||||||
4 | and hold real and personal property as security for the | ||||||
5 | payment of funds loaned or invested. | ||||||
6 | (11) To borrow money at such rate or rates of interest | ||||||
7 | as the Agency may determine, issue its notes, bonds, or | ||||||
8 | other obligations to evidence that indebtedness, and | ||||||
9 | secure any of its obligations by mortgage or pledge of its | ||||||
10 | real or personal property, machinery, equipment, | ||||||
11 | structures, fixtures, inventories, revenues, grants, and | ||||||
12 | other funds as provided or any interest therein, wherever | ||||||
13 | situated. | ||||||
14 | (12) To enter into agreements with the Illinois Finance | ||||||
15 | Authority to issue bonds whether or not the income | ||||||
16 | therefrom is exempt from federal taxation. | ||||||
17 | (13) To procure insurance against any loss in | ||||||
18 | connection with its properties or operations in such amount | ||||||
19 | or amounts and from such insurers, including the federal | ||||||
20 | government, as it may deem necessary or desirable, and to | ||||||
21 | pay any premiums therefor. | ||||||
22 | (14) To negotiate and enter into agreements with | ||||||
23 | trustees or receivers appointed by United States | ||||||
24 | bankruptcy courts or federal district courts or in other | ||||||
25 | proceedings involving adjustment of debts and authorize | ||||||
26 | proceedings involving adjustment of debts and authorize |
| |||||||
| |||||||
1 | legal counsel for the Agency to appear in any such | ||||||
2 | proceedings. | ||||||
3 | (15) To file a petition under Chapter 9 of Title 11 of | ||||||
4 | the United States Bankruptcy Code or take other similar | ||||||
5 | action for the adjustment of its debts. | ||||||
6 | (16) To enter into management agreements for the | ||||||
7 | operation of any of the property or facilities owned by the | ||||||
8 | Agency. | ||||||
9 | (17) To enter into an agreement to transfer and to | ||||||
10 | transfer any land, facilities, fixtures, or equipment of | ||||||
11 | the Agency to one or more municipal electric systems, | ||||||
12 | governmental aggregators, or rural electric agencies or | ||||||
13 | cooperatives, for such consideration and upon such terms as | ||||||
14 | the Agency may determine to be in the best interest of the | ||||||
15 | citizens of Illinois. | ||||||
16 | (18) To enter upon any lands and within any building | ||||||
17 | whenever in its judgment it may be necessary for the | ||||||
18 | purpose of making surveys and examinations to accomplish | ||||||
19 | any purpose authorized by this Act. | ||||||
20 | (19) To maintain an office or offices at such place or | ||||||
21 | places in the State as it may determine. | ||||||
22 | (20) To request information, and to make any inquiry, | ||||||
23 | investigation, survey, or study that the Agency may deem | ||||||
24 | necessary to enable it effectively to carry out the | ||||||
25 | provisions of this Act. | ||||||
26 | (21) To accept and expend appropriations. |
| |||||||
| |||||||
1 | (22) To engage in any activity or operation that is | ||||||
2 | incidental to and in furtherance of efficient operation to | ||||||
3 | accomplish the Agency's purposes, including hiring | ||||||
4 | employees that the Director deems essential for the | ||||||
5 | operations of the Agency. | ||||||
6 | (23) To adopt, revise, amend, and repeal rules with | ||||||
7 | respect to its operations, properties, and facilities as | ||||||
8 | may be necessary or convenient to carry out the purposes of | ||||||
9 | this Act, subject to the provisions of the Illinois | ||||||
10 | Administrative Procedure Act and Sections 1-22 and 1-35 of | ||||||
11 | this Act. | ||||||
12 | (24) To establish and collect charges and fees as | ||||||
13 | described in this Act.
| ||||||
14 | (25) To conduct competitive gasification feedstock | ||||||
15 | procurement processes to procure the feedstocks for the | ||||||
16 | clean coal SNG brownfield facility in accordance with the | ||||||
17 | requirements of Section 1-78 of this Act. | ||||||
18 | (26) To review, revise, and approve sourcing | ||||||
19 | agreements and mediate and resolve disputes between gas | ||||||
20 | utilities and the clean coal SNG brownfield facility | ||||||
21 | pursuant to subsection (h-1) of Section 9-220 of the Public | ||||||
22 | Utilities Act or to fulfill its responsibilities for | ||||||
23 | developing energy efficiency potential studies as required | ||||||
24 | under subsection (f) of Section 8-103 of the Public | ||||||
25 | Utilities Act . | ||||||
26 | (Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; |
| |||||||
| |||||||
1 | 97-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff. | ||||||
2 | 10-26-11; 97-813, eff. 7-13-12.) | ||||||
3 | (20 ILCS 3855/1-56) | ||||||
4 | Sec. 1-56. Illinois Power Agency Renewable Energy | ||||||
5 | Resources Fund. | ||||||
6 | (a) The Illinois Power Agency Renewable Energy Resources | ||||||
7 | Fund is created as a special fund in the State treasury. | ||||||
8 | (b) The Illinois Power Agency Renewable Energy Resources | ||||||
9 | Fund shall be administered by the Agency for the following | ||||||
10 | purposes: | ||||||
11 | (1) to purchase renewable energy credits according to | ||||||
12 | any approved procurement plan developed by the Agency prior | ||||||
13 | to June 1, 2016; and | ||||||
14 | (2) to purchase renewable energy credits and pay for | ||||||
15 | other applicable expenses as part of a low-income solar | ||||||
16 | program; the Agency shall create a low-income solar program | ||||||
17 | with the objective of bringing solar photovoltaics to | ||||||
18 | low-income communities in a manner that maximizes the | ||||||
19 | development of new renewable energy generating facilities, | ||||||
20 | provides workforce development opportunities within | ||||||
21 | low-income communities, creates a long-term, low-income | ||||||
22 | solar marketplace throughout Illinois, and minimizes | ||||||
23 | administrative costs; the Agency shall include the | ||||||
24 | low-income solar program as part of the long-term renewable | ||||||
25 | resources procurement plan authorized by subdivision (c) |
| |||||||
| |||||||
1 | of Section 1-75 of this Act, and the program shall be | ||||||
2 | designed to grow the low-income solar market over at least | ||||||
3 | 10 years; for this program, the Agency shall purchase | ||||||
4 | renewable energy credits from either (i) photovoltaic | ||||||
5 | distributed renewable energy generation devices or (ii) | ||||||
6 | community solar projects. The electricity generated by | ||||||
7 | each distributed generation device or community solar | ||||||
8 | project must primarily be used to offset the electricity | ||||||
9 | usage of (i) lower-income households, (ii) properties | ||||||
10 | where the majority of occupants are lower-income | ||||||
11 | households, (iii) public sector buildings that primarily | ||||||
12 | serve lower-income households, or (iv) not-for-profit | ||||||
13 | corporations that primarily serve lower-income households. | ||||||
14 | As used in this subsection (b), "lower-income households" | ||||||
15 | means persons and families whose income does not exceed 80% of | ||||||
16 | area median income, adjusted for family size and revised every | ||||||
17 | 5 years. | ||||||
18 | Administrative costs associated with the low-income solar | ||||||
19 | program, including, but not limited to, the Agency's general | ||||||
20 | administrative expenses associated with developing and | ||||||
21 | operating the program, costs associated with the program | ||||||
22 | manager referenced in this Section, and costs related to the | ||||||
23 | evaluation of the low-income solar program, may be paid for | ||||||
24 | using the Illinois Power Agency Renewable Energy Resources | ||||||
25 | Fund, but the Agency and program manager shall strive to | ||||||
26 | minimize administrative expenses in the implementation of the |
| |||||||
| |||||||
1 | program. | ||||||
2 | The Agency shall purchase renewable energy credits through | ||||||
3 | an upfront payment per kilowatt of installed nameplate capacity | ||||||
4 | paid once the device is energized. The payment shall be in | ||||||
5 | exchange for an assignment of all renewable energy credits | ||||||
6 | generated by the system during the first 15 years of operation | ||||||
7 | and shall be structured to overcome barriers to participation | ||||||
8 | in the solar market by the low-income community. The Agency | ||||||
9 | shall retire any renewable energy credits purchased from this | ||||||
10 | program and shall use the renewable energy credits to reduce | ||||||
11 | the obligation under subdivision (c) of Section 1-75 of this | ||||||
12 | Act for the electric utility to which the project is | ||||||
13 | interconnected. | ||||||
14 | The Agency shall establish the low-income solar program | ||||||
15 | terms, conditions, and requirements, including the initial | ||||||
16 | purchase price of renewable energy credits, through the | ||||||
17 | development, review, and approval of the Agency's long-term | ||||||
18 | renewable resources procurement plan described in subdivision | ||||||
19 | (c) of Section 1-75 of this Act. The Agency may review and | ||||||
20 | adjust the program terms, conditions, and requirements, | ||||||
21 | including the price offered to new systems, to ensure the | ||||||
22 | long-term viability and success of the program. The Commission | ||||||
23 | shall review and approve any modifications to the program | ||||||
24 | through the periodic plan revision process described in Section | ||||||
25 | 16-111.5C of the Public Utilities Act. | ||||||
26 | The Agency shall issue a request for qualifications for a |
| |||||||
| |||||||
1 | third-party program manager to administer the low-income solar | ||||||
2 | program. The third-party program manager may be a government | ||||||
3 | entity or a not-for-profit corporation and shall be chosen | ||||||
4 | through a competitive bid process based on selection criteria | ||||||
5 | and requirements developed by the Agency. In selecting a | ||||||
6 | program manager, the Agency shall consider a bidder's | ||||||
7 | experience in (i) administering low-income energy programs | ||||||
8 | with evidence of strong consumer protection, (ii) providing | ||||||
9 | low-income job training opportunities, and (iii) providing or | ||||||
10 | overseeing solar installation or energy efficiency services. | ||||||
11 | At least every 2 years, the Commission shall select an | ||||||
12 | independent evaluator to review and report on the low-income | ||||||
13 | solar program and the performance of the third-party program | ||||||
14 | manager of the low-income solar program. The report shall | ||||||
15 | include the number of projects installed, the total installed | ||||||
16 | capacity in kilowatts, the average cost per kilowatt of | ||||||
17 | installed capacity, the total number of jobs or job training | ||||||
18 | opportunities, and other economic, social and environmental | ||||||
19 | benefits created, and the total administrative costs expended | ||||||
20 | by the Agency and program manager to implement and evaluate the | ||||||
21 | program. The report shall be delivered to the Commission and | ||||||
22 | posted on the Agency's website and used, as needed, to revise | ||||||
23 | the low-income solar program. | ||||||
24 | The low-income solar program manager shall administer the | ||||||
25 | low-income solar program, which shall include the development | ||||||
26 | of standard contract forms, the development and implementation |
| |||||||
| |||||||
1 | of a marketing and outreach program for eligible low-income | ||||||
2 | customers, and providing solar installation services, | ||||||
3 | including subcontractor solicitations when necessary. The | ||||||
4 | low-income solar program shall also include energy efficiency | ||||||
5 | referral and education services, solar job training and | ||||||
6 | workforce development opportunities, and consumer protection | ||||||
7 | provisions. | ||||||
8 | (b-5) Upon the submission of all payments required by | ||||||
9 | Section 16-115D of the Public Utilities Act, no funds shall be | ||||||
10 | deposited into the Illinois Power Agency Renewable Energy | ||||||
11 | Resources Fund unless directed by order of the Commission. | ||||||
12 | (b-10) Upon the balance of the Illinois Power Agency | ||||||
13 | Renewable Energy Resources Fund falling below $5,000, the Fund | ||||||
14 | shall be terminated, and any remaining funds shall be | ||||||
15 | transferred to the Low Income Home Energy Assistance Program, | ||||||
16 | as authorized by the Energy Assistance Act. | ||||||
17 | to procure renewable energy resources. Prior to June 1, 2011, | ||||||
18 | resources procured pursuant to this Section shall be procured | ||||||
19 | from facilities located in Illinois, provided the resources are | ||||||
20 | available from those facilities. If resources are not available | ||||||
21 | in Illinois, then they shall be procured in states that adjoin | ||||||
22 | Illinois. If resources are not available in Illinois or in | ||||||
23 | states that adjoin Illinois, then they may be purchased | ||||||
24 | elsewhere. Beginning June 1, 2011, resources procured pursuant | ||||||
25 | to this Section shall be procured from facilities located in | ||||||
26 | Illinois or states that adjoin Illinois. If resources are not |
| |||||||
| |||||||
1 | available in Illinois or in states that adjoin Illinois, then | ||||||
2 | they may be procured elsewhere. To the extent available, at | ||||||
3 | least 75% of these renewable energy resources shall come from | ||||||
4 | wind generation. Of the renewable energy resources procured | ||||||
5 | pursuant to this Section at least the following specified | ||||||
6 | percentages shall come from photovoltaics on the following | ||||||
7 | schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by | ||||||
8 | June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the | ||||||
9 | renewable energy resources procured pursuant to this Section, | ||||||
10 | at least the following percentages shall come from distributed | ||||||
11 | renewable energy generation devices: 0.5% by June 1, 2013, | ||||||
12 | 0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. | ||||||
13 | To the extent available, half of the renewable energy resources | ||||||
14 | procured from distributed renewable energy generation shall | ||||||
15 | come from devices of less than 25 kilowatts in nameplate | ||||||
16 | capacity. Renewable energy resources procured from distributed | ||||||
17 | generation devices may also count towards the required | ||||||
18 | percentages for wind and solar photovoltaics. Procurement of | ||||||
19 | renewable energy resources from distributed renewable energy | ||||||
20 | generation devices shall be done on an annual basis through | ||||||
21 | multi-year contracts of no less than 5 years, and shall consist | ||||||
22 | solely of renewable energy credits. | ||||||
23 | The Agency shall create credit requirements for suppliers | ||||||
24 | of distributed renewable energy. In order to minimize the | ||||||
25 | administrative burden on contracting entities, the Agency | ||||||
26 | shall solicit the use of third-party organizations to aggregate |
| |||||||
| |||||||
1 | distributed renewable energy into groups of no less than one | ||||||
2 | megawatt in installed capacity. These third-party | ||||||
3 | organizations shall administer contracts with individual | ||||||
4 | distributed renewable energy generation device owners. An | ||||||
5 | individual distributed renewable energy generation device | ||||||
6 | owner shall have the ability to measure the output of his or | ||||||
7 | her distributed renewable energy generation device. | ||||||
8 | (c) (Blank). The Agency shall procure renewable energy | ||||||
9 | resources at least once each year in conjunction with a | ||||||
10 | procurement event for electric utilities required to comply | ||||||
11 | with Section 1-75 of the Act and shall, whenever possible, | ||||||
12 | enter into long-term contracts on an annual basis for a portion | ||||||
13 | of the incremental requirement for the given procurement year. | ||||||
14 | (d) (Blank). The price paid to procure renewable energy | ||||||
15 | credits using monies from the Illinois Power Agency Renewable | ||||||
16 | Energy Resources Fund shall not exceed the winning bid prices | ||||||
17 | paid for like resources procured for electric utilities | ||||||
18 | required to comply with Section 1-75 of this Act. | ||||||
19 | (e) All renewable energy credits procured using monies from | ||||||
20 | the Illinois Power Agency Renewable Energy Resources Fund shall | ||||||
21 | be permanently retired. | ||||||
22 | (f) The selection of the third-party program manager, the | ||||||
23 | selection of the independent evaluator, and the procurement | ||||||
24 | process described in this Section are exempt from the | ||||||
25 | requirements of Section 20-10 of the Illinois Procurement Code. | ||||||
26 | The procurement process described in this Section is exempt |
| |||||||
| |||||||
1 | from the requirements of the Illinois Procurement Code, | ||||||
2 | pursuant to Section 20-10 of that Code. | ||||||
3 | (g) All disbursements from the Illinois Power Agency | ||||||
4 | Renewable Energy Resources Fund shall be made only upon | ||||||
5 | warrants of the Comptroller drawn upon the Treasurer as | ||||||
6 | custodian of the Fund upon vouchers signed by the Director or | ||||||
7 | by the person or persons designated by the Director for that | ||||||
8 | purpose. The Comptroller is authorized to draw the warrant upon | ||||||
9 | vouchers so signed. The Treasurer shall accept all warrants so | ||||||
10 | signed and shall be released from liability for all payments | ||||||
11 | made on those warrants. | ||||||
12 | (h) The Illinois Power Agency Renewable Energy Resources | ||||||
13 | Fund shall not be subject to sweeps, administrative charges, or | ||||||
14 | chargebacks, including, but not limited to, those authorized | ||||||
15 | under Section 8h of the State Finance Act, that would in any | ||||||
16 | way result in the transfer of any funds from this Fund to any | ||||||
17 | other fund of this State or in having any such funds utilized | ||||||
18 | for any purpose other than the express purposes set forth in | ||||||
19 | this Section.
| ||||||
20 | (i) Supplemental procurement process. | ||||||
21 | (1) Within 90 days after the effective date of this | ||||||
22 | amendatory Act of the 98th General Assembly, the Agency | ||||||
23 | shall develop a one-time supplemental procurement plan | ||||||
24 | limited to the procurement of renewable energy credits, if | ||||||
25 | available, from new or existing photovoltaics, including, | ||||||
26 | but not limited to, distributed photovoltaic generation. |
| |||||||
| |||||||
1 | Nothing in this subsection (i) requires procurement of wind | ||||||
2 | generation through the supplemental procurement. | ||||||
3 | Renewable energy credits procured from new | ||||||
4 | photovoltaics, including, but not limited to, distributed | ||||||
5 | photovoltaic generation, under this subsection (i) must be | ||||||
6 | procured from devices installed by a qualified person. In | ||||||
7 | its supplemental procurement plan, the Agency shall | ||||||
8 | establish contractually enforceable mechanisms for | ||||||
9 | ensuring that the installation of new photovoltaics is | ||||||
10 | performed by a qualified person. | ||||||
11 | For the purposes of this paragraph (1), "qualified | ||||||
12 | person" means a person who performs installations of | ||||||
13 | photovoltaics, including, but not limited to, distributed | ||||||
14 | photovoltaic generation, and who: (A) has completed an | ||||||
15 | apprenticeship as a journeyman electrician from a United | ||||||
16 | States Department of Labor registered electrical | ||||||
17 | apprenticeship and training program and received a | ||||||
18 | certification of satisfactory completion; or (B) does not | ||||||
19 | currently meet the criteria under clause (A) of this | ||||||
20 | paragraph (1), but is enrolled in a United States | ||||||
21 | Department of Labor registered electrical apprenticeship | ||||||
22 | program, provided that the person is directly supervised by | ||||||
23 | a person who meets the criteria under clause (A) of this | ||||||
24 | paragraph (1); or (C) has obtained one of the following | ||||||
25 | credentials in addition to attesting to satisfactory | ||||||
26 | completion of at least 5 years or 8,000 hours of documented |
| |||||||
| |||||||
1 | hands-on electrical experience: (i) a North American Board | ||||||
2 | of Certified Energy Practitioners (NABCEP) Installer | ||||||
3 | Certificate for Solar PV; (ii) an Underwriters | ||||||
4 | Laboratories (UL) PV Systems Installer Certificate; (iii) | ||||||
5 | an Electronics Technicians Association, International | ||||||
6 | (ETAI) Level 3 PV Installer Certificate; or (iv) an | ||||||
7 | Associate in Applied Science degree from an Illinois | ||||||
8 | Community College Board approved community college program | ||||||
9 | in renewable energy or a distributed generation | ||||||
10 | technology. | ||||||
11 | For the purposes of this paragraph (1), "directly | ||||||
12 | supervised" means that there is a qualified person who | ||||||
13 | meets the qualifications under clause (A) of this paragraph | ||||||
14 | (1) and who is available for supervision and consultation | ||||||
15 | regarding the work performed by persons under clause (B) of | ||||||
16 | this paragraph (1), including a final inspection of the | ||||||
17 | installation work that has been directly supervised to | ||||||
18 | ensure safety and conformity with applicable codes. | ||||||
19 | For the purposes of this paragraph (1), "install" means | ||||||
20 | the major activities and actions required to connect, in | ||||||
21 | accordance with applicable building and electrical codes, | ||||||
22 | the conductors, connectors, and all associated fittings, | ||||||
23 | devices, power outlets, or apparatuses mounted at the | ||||||
24 | premises that are directly involved in delivering energy to | ||||||
25 | the premises' electrical wiring from the photovoltaics, | ||||||
26 | including, but not limited to, to distributed photovoltaic |
| |||||||
| |||||||
1 | generation. | ||||||
2 | The renewable energy credits procured pursuant to the | ||||||
3 | supplemental procurement plan shall be procured using up to | ||||||
4 | $30,000,000 from the Illinois Power Agency Renewable | ||||||
5 | Energy Resources Fund. The Agency shall not plan to use | ||||||
6 | funds from the Illinois Power Agency Renewable Energy | ||||||
7 | Resources Fund in excess of the monies on deposit in such | ||||||
8 | fund or projected to be deposited into such fund. The | ||||||
9 | supplemental procurement plan shall ensure adequate, | ||||||
10 | reliable, affordable, efficient, and environmentally | ||||||
11 | sustainable renewable energy resources (including credits) | ||||||
12 | at the lowest total cost over time, taking into account any | ||||||
13 | benefits of price stability. | ||||||
14 | To the extent available, 50% of the renewable energy | ||||||
15 | credits procured from distributed renewable energy | ||||||
16 | generation shall come from devices of less than 25 | ||||||
17 | kilowatts in nameplate capacity. Procurement of renewable | ||||||
18 | energy credits from distributed renewable energy | ||||||
19 | generation devices shall be done through multi-year | ||||||
20 | contracts of no less than 5 years. The Agency shall create | ||||||
21 | credit requirements for counterparties. In order to | ||||||
22 | minimize the administrative burden on contracting | ||||||
23 | entities, the Agency shall solicit the use of third parties | ||||||
24 | to aggregate distributed renewable energy. These third | ||||||
25 | parties shall enter into and administer contracts with | ||||||
26 | individual distributed renewable energy generation device |
| |||||||
| |||||||
1 | owners. An individual distributed renewable energy | ||||||
2 | generation device owner shall
have the ability to measure | ||||||
3 | the output of his or her distributed renewable energy | ||||||
4 | generation device. | ||||||
5 | In developing the supplemental procurement plan, the | ||||||
6 | Agency shall hold at least one workshop open to the public | ||||||
7 | within 90 days after the effective date of this amendatory | ||||||
8 | Act of the 98th General Assembly and shall consider any | ||||||
9 | comments made by stakeholders or the public. Upon | ||||||
10 | development of the supplemental procurement plan within | ||||||
11 | this 90-day period, copies of the supplemental procurement | ||||||
12 | plan shall be posted and made publicly available on the | ||||||
13 | Agency's and Commission's websites. All interested parties | ||||||
14 | shall have 14 days following the date of posting to provide | ||||||
15 | comment to the Agency on the supplemental procurement plan. | ||||||
16 | All comments submitted to the Agency shall be specific, | ||||||
17 | supported by data or other detailed analyses, and, if | ||||||
18 | objecting to all or a portion of the supplemental | ||||||
19 | procurement plan, accompanied by specific alternative | ||||||
20 | wording or proposals. All comments shall be posted on the | ||||||
21 | Agency's and Commission's websites. Within 14 days | ||||||
22 | following the end of the 14-day review period, the Agency | ||||||
23 | shall revise the supplemental procurement plan as | ||||||
24 | necessary based on the comments received and file its | ||||||
25 | revised supplemental procurement plan with the Commission | ||||||
26 | for approval. |
| |||||||
| |||||||
1 | (2) Within 5 days after the filing of the supplemental | ||||||
2 | procurement plan at the Commission, any person objecting to | ||||||
3 | the supplemental procurement plan shall file an objection | ||||||
4 | with the Commission. Within 10 days after the filing, the | ||||||
5 | Commission shall determine whether a hearing is necessary. | ||||||
6 | The Commission shall enter its order confirming or | ||||||
7 | modifying the supplemental procurement plan within 90 days | ||||||
8 | after the filing of the supplemental procurement plan by | ||||||
9 | the Agency. | ||||||
10 | (3) The Commission shall approve the supplemental | ||||||
11 | procurement plan of renewable energy credits to be procured | ||||||
12 | from new or existing photovoltaics, including, but not | ||||||
13 | limited to, distributed photovoltaic generation, if the | ||||||
14 | Commission determines that it will ensure adequate, | ||||||
15 | reliable, affordable, efficient, and environmentally | ||||||
16 | sustainable electric service in the form of renewable | ||||||
17 | energy credits at the lowest total cost over time, taking | ||||||
18 | into account any benefits of price stability. | ||||||
19 | (4) The supplemental procurement process under this | ||||||
20 | subsection (i) shall include each of the following | ||||||
21 | components: | ||||||
22 | (A) Procurement administrator. The Agency may | ||||||
23 | retain a procurement administrator in the manner set | ||||||
24 | forth in item (2) of subsection (a) of Section 1-75 of | ||||||
25 | this Act to conduct the supplemental procurement or may | ||||||
26 | elect to use the same procurement administrator |
| |||||||
| |||||||
1 | administering the Agency's annual procurement under | ||||||
2 | Section 1-75. | ||||||
3 | (B) Procurement monitor. The procurement monitor | ||||||
4 | retained by the Commission pursuant to Section | ||||||
5 | 16-111.5 of the Public Utilities Act shall: | ||||||
6 | (i) monitor interactions among the procurement | ||||||
7 | administrator and bidders and suppliers; | ||||||
8 | (ii) monitor and report to the Commission on | ||||||
9 | the progress of the supplemental procurement | ||||||
10 | process; | ||||||
11 | (iii) provide an independent confidential | ||||||
12 | report to the Commission regarding the results of | ||||||
13 | the procurement events; | ||||||
14 | (iv) assess compliance with the procurement | ||||||
15 | plan approved by the Commission for the | ||||||
16 | supplemental procurement process; | ||||||
17 | (v) preserve the confidentiality of supplier | ||||||
18 | and bidding information in a manner consistent | ||||||
19 | with all applicable laws, rules, regulations, and | ||||||
20 | tariffs; | ||||||
21 | (vi) provide expert advice to the Commission | ||||||
22 | and consult with the procurement administrator | ||||||
23 | regarding issues related to procurement process | ||||||
24 | design, rules, protocols, and policy-related | ||||||
25 | matters; | ||||||
26 | (vii) consult with the procurement |
| |||||||
| |||||||
1 | administrator regarding the development and use of | ||||||
2 | benchmark criteria, standard form contracts, | ||||||
3 | credit policies, and bid documents; and | ||||||
4 | (viii) perform, with respect to the | ||||||
5 | supplemental procurement process, any other | ||||||
6 | procurement monitor duties specifically delineated | ||||||
7 | within subsection (i) of this Section. | ||||||
8 | (C) Solicitation, pre-qualification, and | ||||||
9 | registration of bidders. The procurement administrator | ||||||
10 | shall disseminate information to potential bidders to | ||||||
11 | promote a procurement event, notify potential bidders | ||||||
12 | that the procurement administrator may enter into a | ||||||
13 | post-bid price negotiation with bidders that meet the | ||||||
14 | applicable benchmarks, provide supply requirements, | ||||||
15 | and otherwise explain the competitive procurement | ||||||
16 | process. In addition to such other publication as the | ||||||
17 | procurement administrator determines is appropriate, | ||||||
18 | this information shall be posted on the Agency's and | ||||||
19 | the Commission's websites. The procurement | ||||||
20 | administrator shall also administer the | ||||||
21 | prequalification process, including evaluation of | ||||||
22 | credit worthiness, compliance with procurement rules, | ||||||
23 | and agreement to the standard form contract developed | ||||||
24 | pursuant to item (D) of this paragraph (4). The | ||||||
25 | procurement administrator shall then identify and | ||||||
26 | register bidders to participate in the procurement |
| |||||||
| |||||||
1 | event. | ||||||
2 | (D) Standard contract forms and credit terms and | ||||||
3 | instruments. The procurement administrator, in | ||||||
4 | consultation with the Agency, the Commission, and | ||||||
5 | other interested parties and subject to Commission | ||||||
6 | oversight, shall develop and provide standard contract | ||||||
7 | forms for the supplier contracts that meet generally | ||||||
8 | accepted industry practices as well as include any | ||||||
9 | applicable State of Illinois terms and conditions that | ||||||
10 | are required for contracts entered into by an agency of | ||||||
11 | the State of Illinois. Standard credit terms and | ||||||
12 | instruments that meet generally accepted industry | ||||||
13 | practices shall be similarly developed. Contracts for | ||||||
14 | new photovoltaics shall include a provision attesting | ||||||
15 | that the supplier will use a qualified person for the | ||||||
16 | installation of the device pursuant to paragraph (1) of | ||||||
17 | subsection (i) of this Section. The procurement | ||||||
18 | administrator shall make available to the Commission | ||||||
19 | all written comments it receives on the contract forms,
| ||||||
20 | credit terms, or instruments. If the procurement | ||||||
21 | administrator cannot reach agreement with the parties | ||||||
22 | as to the contract terms and conditions, the | ||||||
23 | procurement administrator must notify the Commission | ||||||
24 | of any disputed terms and the Commission shall resolve | ||||||
25 | the dispute. The terms of the contracts shall not be | ||||||
26 | subject to negotiation by winning bidders, and the |
| |||||||
| |||||||
1 | bidders must agree to the terms of the contract in | ||||||
2 | advance so that winning bids are selected solely on the | ||||||
3 | basis of price. | ||||||
4 | (E) Requests for proposals; competitive | ||||||
5 | procurement process. The procurement administrator | ||||||
6 | shall design and issue requests for proposals to supply | ||||||
7 | renewable energy credits in accordance with the | ||||||
8 | supplemental procurement plan, as approved by the | ||||||
9 | Commission. The requests for proposals shall set forth | ||||||
10 | a procedure for sealed, binding commitment bidding | ||||||
11 | with pay-as-bid settlement, and provision for | ||||||
12 | selection of bids on the basis of price, provided, | ||||||
13 | however, that no bid shall be accepted if it exceeds | ||||||
14 | the benchmark developed pursuant to item (F) of this | ||||||
15 | paragraph (4). | ||||||
16 | (F) Benchmarks. Benchmarks for each product to be | ||||||
17 | procured shall be developed by the procurement | ||||||
18 | administrator in consultation with Commission staff, | ||||||
19 | the Agency, and the procurement monitor for use in this | ||||||
20 | supplemental procurement. | ||||||
21 | (G) A plan for implementing contingencies in the | ||||||
22 | event of supplier default, Commission rejection of | ||||||
23 | results, or any other cause. | ||||||
24 | (5) Within 2 business days after opening the sealed | ||||||
25 | bids, the procurement administrator shall submit a | ||||||
26 | confidential report to the Commission. The report shall |
| |||||||
| |||||||
1 | contain the results of the bidding for each of the products | ||||||
2 | along with the procurement administrator's recommendation | ||||||
3 | for the acceptance and rejection of bids based on the price | ||||||
4 | benchmark criteria and other factors observed in the | ||||||
5 | process. The procurement monitor also shall submit a | ||||||
6 | confidential report to the Commission within 2 business | ||||||
7 | days after opening the sealed bids. The report shall | ||||||
8 | contain the procurement monitor's assessment of bidder | ||||||
9 | behavior in the process as well as an assessment of the | ||||||
10 | procurement administrator's compliance with the | ||||||
11 | procurement process and rules. The Commission shall review | ||||||
12 | the confidential reports submitted by the procurement | ||||||
13 | administrator and procurement monitor and shall accept or | ||||||
14 | reject the recommendations of the procurement | ||||||
15 | administrator within 2 business days after receipt of the | ||||||
16 | reports. | ||||||
17 | (6) Within 3 business days after the Commission | ||||||
18 | decision approving the results of a procurement event, the | ||||||
19 | Agency shall enter into binding contractual arrangements | ||||||
20 | with the winning suppliers using the standard form | ||||||
21 | contracts. | ||||||
22 | (7) The names of the successful bidders and the average | ||||||
23 | of the winning bid prices for each contract type and for | ||||||
24 | each contract term shall be made available to the public | ||||||
25 | within 2 days after the supplemental procurement event. The | ||||||
26 | Commission, the procurement monitor, the procurement |
| |||||||
| |||||||
1 | administrator, the Agency, and all participants in the | ||||||
2 | procurement process shall maintain the confidentiality of | ||||||
3 | all other supplier and bidding information in a manner | ||||||
4 | consistent with all applicable laws, rules, regulations, | ||||||
5 | and tariffs. Confidential information, including the | ||||||
6 | confidential reports submitted by the procurement | ||||||
7 | administrator and procurement monitor pursuant to this | ||||||
8 | Section, shall not be made publicly available and shall not | ||||||
9 | be discoverable by any party in any proceeding, absent a | ||||||
10 | compelling demonstration of need, nor shall those reports | ||||||
11 | be admissible in any proceeding other than one for law | ||||||
12 | enforcement purposes. | ||||||
13 | (8) The supplemental procurement provided in this | ||||||
14 | subsection (i) shall not be subject to the requirements and | ||||||
15 | limitations of subsections (c) and (d) of this Section. | ||||||
16 | (9) Expenses incurred in connection with the | ||||||
17 | procurement process held pursuant to this Section, | ||||||
18 | including, but not limited to, the cost of developing the | ||||||
19 | supplemental procurement plan, the procurement | ||||||
20 | administrator, procurement monitor, and the cost of the | ||||||
21 | retirement of renewable energy credits purchased pursuant | ||||||
22 | to the supplemental procurement shall be paid for from the | ||||||
23 | Illinois Power Agency Renewable Energy Resources Fund. The | ||||||
24 | Agency shall enter into an interagency agreement with the | ||||||
25 | Commission to reimburse the Commission for its costs | ||||||
26 | associated with the procurement monitor for the |
| |||||||
| |||||||
1 | supplemental procurement process. | ||||||
2 | (Source: P.A. 97-616, eff. 10-26-11; 98-672, eff. 6-30-14.) | ||||||
3 | (20 ILCS 3855/1-75) | ||||||
4 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
5 | and Procurement Bureau has the following duties and | ||||||
6 | responsibilities: | ||||||
7 | (a) The Planning and Procurement Bureau shall each year, | ||||||
8 | beginning in 2008, develop procurement plans and conduct | ||||||
9 | competitive procurement processes in accordance with the | ||||||
10 | requirements of Section 16-111.5 of the Public Utilities Act | ||||||
11 | for the eligible retail customers of electric utilities that on | ||||||
12 | December 31, 2005 provided electric service to at least 100,000 | ||||||
13 | customers in Illinois. The Planning and Procurement Bureau | ||||||
14 | shall also develop procurement plans and conduct competitive | ||||||
15 | procurement processes in accordance with the requirements of | ||||||
16 | Section 16-111.5 of the Public Utilities Act for the eligible | ||||||
17 | retail customers of small multi-jurisdictional electric | ||||||
18 | utilities that (i) on December 31, 2005 served less than | ||||||
19 | 100,000 customers in Illinois and (ii) request a procurement | ||||||
20 | plan for their Illinois jurisdictional load. This Section shall | ||||||
21 | not apply to a small multi-jurisdictional utility until such | ||||||
22 | time as a small multi-jurisdictional utility requests the | ||||||
23 | Agency to prepare a procurement plan for their Illinois | ||||||
24 | jurisdictional load. For the purposes of this Section, the term | ||||||
25 | "eligible retail customers" has the same definition as found in |
| |||||||
| |||||||
1 | Section 16-111.5(a) of the Public Utilities Act. | ||||||
2 | Notwithstanding the requirements of this subdivision (a), | ||||||
3 | beginning with the planning process for the plan or plans to be | ||||||
4 | implemented in the 2016 delivery year, the Agency shall no | ||||||
5 | longer include the procurement of renewable energy resources in | ||||||
6 | the procurement plans required by this subdivision (a) and | ||||||
7 | shall instead develop a long-term renewable resources | ||||||
8 | procurement plan in accordance with subdivision (c) of this | ||||||
9 | Section. | ||||||
10 | (1) The Agency shall each year, beginning in 2008, as | ||||||
11 | needed, issue a request for qualifications for experts or | ||||||
12 | expert consulting firms to develop the procurement plans in | ||||||
13 | accordance with Section 16-111.5 of the Public Utilities | ||||||
14 | Act. In order to qualify an expert or expert consulting | ||||||
15 | firm must have: | ||||||
16 | (A) direct previous experience assembling | ||||||
17 | large-scale power supply plans or portfolios for | ||||||
18 | end-use customers; | ||||||
19 | (B) an advanced degree in economics, mathematics, | ||||||
20 | engineering, risk management, or a related area of | ||||||
21 | study; | ||||||
22 | (C) 10 years of experience in the electricity | ||||||
23 | sector, including managing supply risk; | ||||||
24 | (D) expertise in wholesale electricity market | ||||||
25 | rules, including those established by the Federal | ||||||
26 | Energy Regulatory Commission and regional transmission |
| |||||||
| |||||||
1 | organizations; | ||||||
2 | (E) expertise in credit protocols and familiarity | ||||||
3 | with contract protocols; | ||||||
4 | (F) adequate resources to perform and fulfill the | ||||||
5 | required functions and responsibilities; and | ||||||
6 | (G) the absence of a conflict of interest and | ||||||
7 | inappropriate bias for or against potential bidders or | ||||||
8 | the affected electric utilities. | ||||||
9 | (2) The Agency shall each year, as needed, issue a | ||||||
10 | request for qualifications for a procurement administrator | ||||||
11 | to conduct the competitive procurement processes in | ||||||
12 | accordance with Section 16-111.5 of the Public Utilities | ||||||
13 | Act. In order to qualify an expert or expert consulting | ||||||
14 | firm must have: | ||||||
15 | (A) direct previous experience administering a | ||||||
16 | large-scale competitive procurement process; | ||||||
17 | (B) an advanced degree in economics, mathematics, | ||||||
18 | engineering, or a related area of study; | ||||||
19 | (C) 10 years of experience in the electricity | ||||||
20 | sector, including risk management experience; | ||||||
21 | (D) expertise in wholesale electricity market | ||||||
22 | rules, including those established by the Federal | ||||||
23 | Energy Regulatory Commission and regional transmission | ||||||
24 | organizations; | ||||||
25 | (E) expertise in credit and contract protocols; | ||||||
26 | (F) adequate resources to perform and fulfill the |
| |||||||
| |||||||
1 | required functions and responsibilities; and | ||||||
2 | (G) the absence of a conflict of interest and | ||||||
3 | inappropriate bias for or against potential bidders or | ||||||
4 | the affected electric utilities. | ||||||
5 | (3) The Agency shall provide affected utilities and | ||||||
6 | other interested parties with the lists of qualified | ||||||
7 | experts or expert consulting firms identified through the | ||||||
8 | request for qualifications processes that are under | ||||||
9 | consideration to develop the procurement plans and to serve | ||||||
10 | as the procurement administrator. The Agency shall also | ||||||
11 | provide each qualified expert's or expert consulting | ||||||
12 | firm's response to the request for qualifications. All | ||||||
13 | information provided under this subparagraph shall also be | ||||||
14 | provided to the Commission. The Agency may provide by rule | ||||||
15 | for fees associated with supplying the information to | ||||||
16 | utilities and other interested parties. These parties | ||||||
17 | shall, within 5 business days, notify the Agency in writing | ||||||
18 | if they object to any experts or expert consulting firms on | ||||||
19 | the lists. Objections shall be based on: | ||||||
20 | (A) failure to satisfy qualification criteria; | ||||||
21 | (B) identification of a conflict of interest; or | ||||||
22 | (C) evidence of inappropriate bias for or against | ||||||
23 | potential bidders or the affected utilities. | ||||||
24 | The Agency shall remove experts or expert consulting | ||||||
25 | firms from the lists within 10 days if there is a | ||||||
26 | reasonable basis for an objection and provide the updated |
| |||||||
| |||||||
1 | lists to the affected utilities and other interested | ||||||
2 | parties. If the Agency fails to remove an expert or expert | ||||||
3 | consulting firm from a list, an objecting party may seek | ||||||
4 | review by the Commission within 5 days thereafter by filing | ||||||
5 | a petition, and the Commission shall render a ruling on the | ||||||
6 | petition within 10 days. There is no right of appeal of the | ||||||
7 | Commission's ruling. | ||||||
8 | (4) The Agency shall issue requests for proposals to | ||||||
9 | the qualified experts or expert consulting firms to develop | ||||||
10 | a procurement plan for the affected utilities and to serve | ||||||
11 | as procurement administrator. | ||||||
12 | (5) The Agency shall select an expert or expert | ||||||
13 | consulting firm to develop procurement plans based on the | ||||||
14 | proposals submitted and shall award contracts of up to 5 | ||||||
15 | years to those selected. | ||||||
16 | (6) The Agency shall select an expert or expert | ||||||
17 | consulting firm, with approval of the Commission, to serve | ||||||
18 | as procurement administrator based on the proposals | ||||||
19 | submitted. If the Commission rejects, within 5 days, the | ||||||
20 | Agency's selection, the Agency shall submit another | ||||||
21 | recommendation within 3 days based on the proposals | ||||||
22 | submitted. The Agency shall award a 5-year contract to the | ||||||
23 | expert or expert consulting firm so selected with | ||||||
24 | Commission approval. | ||||||
25 | (b) The experts or expert consulting firms retained by the | ||||||
26 | Agency shall, as appropriate, prepare procurement plans, and |
| |||||||
| |||||||
1 | conduct a competitive procurement process as prescribed in | ||||||
2 | Section 16-111.5 of the Public Utilities Act, to ensure | ||||||
3 | adequate, reliable, affordable, efficient, and environmentally | ||||||
4 | sustainable electric service at the lowest total cost over | ||||||
5 | time, taking into account any benefits of price stability, for | ||||||
6 | eligible retail customers of electric utilities that on | ||||||
7 | December 31, 2005 provided electric service to at least 100,000 | ||||||
8 | customers in the State of Illinois, and for eligible Illinois | ||||||
9 | retail customers of small multi-jurisdictional electric | ||||||
10 | utilities that (i) on December 31, 2005 served less than | ||||||
11 | 100,000 customers in Illinois and (ii) request a procurement | ||||||
12 | plan for their Illinois jurisdictional load. | ||||||
13 | (c) Renewable portfolio standard. | ||||||
14 | (1) The Planning and Procurement Bureau shall develop a | ||||||
15 | long-term renewable resources procurement plan that | ||||||
16 | includes all renewable energy credits necessary to meet the | ||||||
17 | goals set forth in this subdivision (c). The long-term | ||||||
18 | renewable resources procurement plan shall include | ||||||
19 | long-term programs and competitive procurement events | ||||||
20 | designed to meet the renewable resources goals in this | ||||||
21 | subdivision (c) from the date of the plan through the 2030 | ||||||
22 | delivery year. The initial long-term renewable resources | ||||||
23 | procurement plan shall be released for comment no later | ||||||
24 | than 120 days after the effective date of this amendatory | ||||||
25 | Act of the 99th General Assembly. The Agency shall review | ||||||
26 | and revise the long-term renewable resources procurement |
| |||||||
| |||||||
1 | plan at least every 2 years. The initial long-term | ||||||
2 | renewable resources procurement plan and each revised plan | ||||||
3 | shall be subject to review and approval by the Commission | ||||||
4 | pursuant to Section 16-111.5C of the Public Utilities Act. | ||||||
5 | (1.5) The Agency shall continue to implement all | ||||||
6 | procurements of renewable energy credits included in all | ||||||
7 | prior procurement plans filed with the Commission prior to | ||||||
8 | June 1, 2016. Any renewable energy credits procured as a | ||||||
9 | result of these prior procurements, including renewable | ||||||
10 | energy credits as part of bundled renewable energy | ||||||
11 | resources, shall be used to meet the goals set forth in | ||||||
12 | this subdivision (c) and shall be included as resources in | ||||||
13 | the long-term renewable resources plan required in | ||||||
14 | paragraph (1) of this subdivision (c). Any costs associated | ||||||
15 | with the procurement of renewable energy credits as a | ||||||
16 | result of these prior procurements, including the cost of | ||||||
17 | renewable energy credits included in the cost of bundled | ||||||
18 | renewable energy resources, but not including any | ||||||
19 | renewable energy credits procured as a result of | ||||||
20 | procurements authorized by subsection (i) of Section 1-56 | ||||||
21 | of this Act or paid for using funds collected as a result | ||||||
22 | of paragraph (5) of this subdivision (c), shall be included | ||||||
23 | in the total cost of renewable energy credits procured | ||||||
24 | pursuant to the long-term procurement plan, as limited in | ||||||
25 | paragraph (1.15) of this subdivision (c). | ||||||
26 | As used in this subdivision (c): |
| |||||||
| |||||||
1 | "Bundled renewable energy resources" means electricity | ||||||
2 | generated by a renewable energy system and its associated | ||||||
3 | renewable energy credit. | ||||||
4 | "Cost of renewable energy credits included in the cost | ||||||
5 | of bundled renewable energy resources" means the | ||||||
6 | difference between the contract price for the bundled | ||||||
7 | renewable energy resources and the day-ahead locational | ||||||
8 | marginal price at the load zone at which the contract is | ||||||
9 | settled multiplied by the megawatt hours of electricity | ||||||
10 | generated in each hour. | ||||||
11 | (1.10) The cost of any renewable energy credits | ||||||
12 | procured through a competitive procurement event pursuant | ||||||
13 | to an approved plan shall not exceed benchmarks established | ||||||
14 | by the procurement administrator, in consultation with the | ||||||
15 | Commission staff, Agency staff, and the procurement | ||||||
16 | monitor. The benchmarks shall be based on price data for | ||||||
17 | similar products for the same delivery period and same | ||||||
18 | utility delivery hub or other utility delivery hubs after | ||||||
19 | adjusting for that difference. The price benchmarks may | ||||||
20 | also be adjusted to take into account differences between | ||||||
21 | the information reflected in the underlying data sources | ||||||
22 | and the specific products and procurement process being | ||||||
23 | used to procure power for the Illinois utilities. The | ||||||
24 | benchmarks shall be confidential, but shall be provided to | ||||||
25 | the Commission and shall be subject to Commission review | ||||||
26 | and approval prior to a procurement event. |
| |||||||
| |||||||
1 | (1.15) Notwithstanding the requirements of this | ||||||
2 | subdivision (c), the total amount of renewable energy | ||||||
3 | credits procured pursuant to the long-term renewable | ||||||
4 | resources procurement plan shall be reduced by an amount | ||||||
5 | necessary to limit the annual estimated average net | ||||||
6 | increase due to the costs of these credits included in the | ||||||
7 | amounts paid by all customers taking delivery service from | ||||||
8 | an electric utility to no more than 2.015% of the amount | ||||||
9 | paid per kilowatthour by eligible retail customers during | ||||||
10 | the year ending May 31, 2007. For purposes of this | ||||||
11 | subdivision (c), the amount paid per kilowatthour means the | ||||||
12 | total amount paid for electric service expressed on a per | ||||||
13 | kilowatthour basis, including without limitation amounts | ||||||
14 | paid for supply, transmission, distribution, surcharges, | ||||||
15 | and add-on taxes. | ||||||
16 | (1.20) The long-term renewable resources procurement | ||||||
17 | plan shall include the procurement of renewable energy | ||||||
18 | credits in amounts equal to at least the following | ||||||
19 | percentages measured as a percentage of the projected | ||||||
20 | amount of electricity in kilowatthours to be delivered by | ||||||
21 | the electric utilities to all customers taking delivery | ||||||
22 | service from an electric utility: 11.5% by the 2016 | ||||||
23 | delivery year, and increasing by at least 1.5% each | ||||||
24 | delivery year thereafter to at least 25% by the 2025 | ||||||
25 | delivery year; and increasing at least 2% each delivery | ||||||
26 | year thereafter to at least 35% by the 2030 delivery year, |
| |||||||
| |||||||
1 | continuing at that percentage for each delivery year | ||||||
2 | thereafter. | ||||||
3 | (A) By the end of the 2020 delivery year: | ||||||
4 | (i) 75% of the total renewable energy credits | ||||||
5 | procured shall come from wind generation, of which | ||||||
6 | at least 25% shall come from new wind projects; and | ||||||
7 | (ii) 5% of the total renewable energy credits | ||||||
8 | procured or the equivalent amount of renewable | ||||||
9 | energy credits from 1,000 megawatts of solar | ||||||
10 | photovoltaic nameplate capacity, whichever is | ||||||
11 | larger, shall come from new photovoltaic projects; | ||||||
12 | of that amount, to the extent possible, the Agency | ||||||
13 | shall procure 75% from photovoltaic projects using | ||||||
14 | the program outlined in paragraph (1.25) of this | ||||||
15 | subdivision (c) from distributed renewable energy | ||||||
16 | devices or community solar projects and shall give | ||||||
17 | preference to brownfield solar projects that are | ||||||
18 | not community solar projects for the remaining | ||||||
19 | 25%. | ||||||
20 | (B) By the end of the 2025 delivery year: | ||||||
21 | (i) 75% of the total renewable energy credits | ||||||
22 | procured shall come from wind generation, of which | ||||||
23 | at least 25% shall come from new wind projects; and | ||||||
24 | (ii) 6% of the total renewable energy credits | ||||||
25 | procured or the equivalent amount of renewable | ||||||
26 | energy credits from 1,500 megawatts of solar |
| |||||||
| |||||||
1 | photovoltaic nameplate capacity, whichever is | ||||||
2 | larger, shall come from new photovoltaic projects; | ||||||
3 | of that amount, to the extent possible the Agency | ||||||
4 | shall procure 75% from photovoltaic projects using | ||||||
5 | the program outlined in paragraph (1.25) of this | ||||||
6 | subdivision (c) from distributed renewable energy | ||||||
7 | devices or community solar projects and shall give | ||||||
8 | preference to brownfield solar projects that are | ||||||
9 | not community solar projects for the remaining | ||||||
10 | 25%. | ||||||
11 | (C) By the end of the 2030 delivery year: | ||||||
12 | (i) 75% of the total renewable energy credits | ||||||
13 | procured shall come from wind generation, of which | ||||||
14 | at least 25% shall come from new wind projects; and | ||||||
15 | (ii) 7% of the total renewable energy credits | ||||||
16 | procured or the equivalent amount of renewable | ||||||
17 | energy credits from 2,000 megawatts of solar | ||||||
18 | photovoltaic nameplate capacity, whichever is | ||||||
19 | larger, shall come from new photovoltaic projects; | ||||||
20 | of that amount, to the extent possible the Agency | ||||||
21 | shall procure 75% from photovoltaic projects using | ||||||
22 | the program outlined in paragraph (1.25) of this | ||||||
23 | subdivision (c) from distributed renewable energy | ||||||
24 | devices or community solar projects and shall give | ||||||
25 | preference to brownfield solar projects that are | ||||||
26 | not community solar projects for the remaining |
| |||||||
| |||||||
1 | 25%. | ||||||
2 | Renewable energy credits are eligible to be counted | ||||||
3 | toward the renewable energy requirements of this | ||||||
4 | subsection (c) if the renewable energy facility is located | ||||||
5 | in Illinois, if the facility has a generator | ||||||
6 | interconnection agreement with PJM or MISO, or if the | ||||||
7 | renewable energy facility is located in the United States | ||||||
8 | and the output of the facility is delivered to a | ||||||
9 | transmission asset that is controlled by PJM or MISO, where | ||||||
10 | "delivered" means the generated output of the facility has | ||||||
11 | been demonstrated to have a distribution factor of 25% or | ||||||
12 | greater on the transmission asset of PJM or MISO, and where | ||||||
13 | "distribution factor" means a measurement of the | ||||||
14 | sensitivity of the flow of electricity from a renewable | ||||||
15 | energy generator to a consuming load on a transmission | ||||||
16 | asset under the control of MISO or PJM. In procuring | ||||||
17 | renewable energy credits, the Agency may consider bid | ||||||
18 | selection criteria that include public interest factors, | ||||||
19 | such as the potential to increase fuel and resource | ||||||
20 | diversity in Illinois, enhance system reliability and | ||||||
21 | resiliency, and contribute to a cleaner and healthier | ||||||
22 | environment for the citizens of Illinois. In its long-term | ||||||
23 | plan, the Agency shall develop the method for incorporating | ||||||
24 | these public interest factors, in addition to bid price, | ||||||
25 | into its bid selection process. The Agency's method may | ||||||
26 | include, but may not be limited to, quantitatively scoring |
| |||||||
| |||||||
1 | the evaluation of individual bids under public interest | ||||||
2 | criteria or the establishment of procurement minimums for | ||||||
3 | project categories informed by the public interest factors | ||||||
4 | described in this paragraph (1.15). | ||||||
5 | In the event that the rate impact cap in paragraph | ||||||
6 | (1.15) of this subdivision (c) prevents the Agency from | ||||||
7 | meeting all of the percentage goals in this subdivision | ||||||
8 | (c), the Agency shall prioritize compliance with the goals | ||||||
9 | for new wind and photovoltaic projects. | ||||||
10 | As used in this paragraph (1.20): | ||||||
11 | "New wind projects" means wind renewable energy | ||||||
12 | projects (i) that begin energy delivery no earlier than 3 | ||||||
13 | years prior to the procurement date and (ii) for projects | ||||||
14 | located within Illinois, for which the owner of the project | ||||||
15 | has certified that not less than the prevailing wage was or | ||||||
16 | will be paid to employees who are engaged in construction | ||||||
17 | activities associated with the project. | ||||||
18 | "New photovoltaic projects" means photovoltaic | ||||||
19 | renewable energy projects (i) that are interconnected at | ||||||
20 | the distribution system level of either an electric | ||||||
21 | utility, a municipal utility as defined in Section 3-105 of | ||||||
22 | the Public Utilities Act, or a rural electric cooperative | ||||||
23 | as defined in Section 3-119 of the Public Utilities Act, | ||||||
24 | (ii) that are energized after January 1, 2016 for the first | ||||||
25 | procurement year or within one year of the procurement date | ||||||
26 | for subsequent procurement years, and (iii) for projects |
| |||||||
| |||||||
1 | over 1,000 kilowatts in nameplate capacity, for which the | ||||||
2 | owner of the project has certified that not less than the | ||||||
3 | prevailing wage was or will be paid to employees who are | ||||||
4 | engaged in construction activities associated with the | ||||||
5 | project. | ||||||
6 | "Prevailing wage" has the same definition as in | ||||||
7 | subsection (F) of Section 5.5(a)(3) of the Enterprise Zone | ||||||
8 | Act. | ||||||
9 | (1.25) The long-term renewable resources procurement | ||||||
10 | plan developed by the Agency in accordance with this | ||||||
11 | subdivision (c) shall include a declining block program for | ||||||
12 | the procurement of renewable energy credits from | ||||||
13 | photovoltaic projects that are distributed renewable | ||||||
14 | energy generation devices or community solar projects. The | ||||||
15 | declining block program shall be designed to provide a | ||||||
16 | transparent schedule of prices and capacity to enable the | ||||||
17 | photovoltaic market to scale up and for renewable energy | ||||||
18 | credit prices to fall at a predictable, sustainable rate | ||||||
19 | over time. The declining block program shall include for | ||||||
20 | each category of eligible projects: (i) a schedule of | ||||||
21 | standard, declining block purchase prices to be offered, | ||||||
22 | (ii) a series of steps, with associated nameplate capacity | ||||||
23 | and purchase prices that decline from step to step, and | ||||||
24 | (iii) automatic opening of the next step as soon as the | ||||||
25 | nameplate capacity and available purchase prices for an | ||||||
26 | open step are fully committed or reserved. Only projects |
| |||||||
| |||||||
1 | energized on or after January 1, 2016, shall be eligible | ||||||
2 | for the declining block program. For each block group the | ||||||
3 | Agency shall determine the number of blocks, the amount of | ||||||
4 | generation capacity in each block, and the purchase price | ||||||
5 | for each block, provided that the purchase price provided | ||||||
6 | and the total amount of generation in all blocks for all | ||||||
7 | block groups shall be sufficient to meet the goals in | ||||||
8 | paragraph (1.20) of this subdivision (c). The Agency may | ||||||
9 | periodically review the purchase prices and may | ||||||
10 | redistribute available funds as necessary and appropriate, | ||||||
11 | subject to Commission approval as part of the periodic plan | ||||||
12 | revision process described in Section 16-111.5C of the | ||||||
13 | Public Utilities Act. | ||||||
14 | The declining block program shall include at least the | ||||||
15 | following block groups, which may be adjusted upon review | ||||||
16 | by the Agency and approval of the Commission: | ||||||
17 | (A) Distributed renewable energy generation | ||||||
18 | devices with a nameplate capacity of no more than 10 | ||||||
19 | kilowatts. | ||||||
20 | (B) Distributed renewable energy generation | ||||||
21 | devices with a nameplate capacity of more than 10 | ||||||
22 | kilowatts and no more than 100 kilowatts. | ||||||
23 | (C) Distributed renewable energy generation | ||||||
24 | devices with a nameplate capacity of more than 100 | ||||||
25 | kilowatts and no more than 500 kilowatts. | ||||||
26 | (D) Distributed renewable energy generation |
| |||||||
| |||||||
1 | devices with a nameplate capacity of more than 500 | ||||||
2 | kilowatts and no more than 2,000 kilowatts. | ||||||
3 | (E) Distributed renewable energy generation | ||||||
4 | devices with a nameplate capacity of no more than 2,000 | ||||||
5 | kilowatts that are owned by a municipality, a school | ||||||
6 | district, a unit of local government, a public | ||||||
7 | university, or a not-for-profit corporation, and | ||||||
8 | primarily used to offset their own electricity load. | ||||||
9 | (F) Community solar projects. | ||||||
10 | For projects that qualify under paragraph (A) of this | ||||||
11 | paragraph (1.25), the renewable energy credit purchase | ||||||
12 | price shall be paid as an upfront payment per installed | ||||||
13 | kilowatt of nameplate capacity paid once the device is | ||||||
14 | energized. The electric utility shall receive all | ||||||
15 | renewable energy credits generated by the project for the | ||||||
16 | first 15 years of operation. For projects that qualify | ||||||
17 | under items (B) through (F) of this paragraph (1.25) and | ||||||
18 | any additional categories included in the long-term | ||||||
19 | renewable resources plan and approved by the Commission, | ||||||
20 | the renewable energy credit purchase price shall be in | ||||||
21 | exchange for an assignment of all renewable energy credits | ||||||
22 | generated by the project for the first 15 years of | ||||||
23 | operation. The Agency shall pay for those credits over the | ||||||
24 | first 5 years of operation of the system through a partial | ||||||
25 | payment made after the system is first energized and | ||||||
26 | additional payments over the first 4 years of operation |
| |||||||
| |||||||
1 | based on actual energy produced. The electric utility shall | ||||||
2 | receive all renewable energy credits generated by the | ||||||
3 | project for the first 15 years of operation. | ||||||
4 | The Agency shall issue a request for qualifications for | ||||||
5 | a third-party program manager to administer the declining | ||||||
6 | block program. The third-party program manager shall be | ||||||
7 | chosen through a competitive bid process based on selection | ||||||
8 | criteria and requirements developed by the Agency, | ||||||
9 | including consideration of prior experience in | ||||||
10 | administering an incentive program for energy efficiency, | ||||||
11 | renewable energy, or other similar resources. The | ||||||
12 | third-party program manager shall be the counterparty to | ||||||
13 | the contract to purchase renewable energy credits from | ||||||
14 | individual systems. The utility shall transfer funds | ||||||
15 | needed to cover the cost of purchasing renewable energy | ||||||
16 | credits and administering the declining block program to | ||||||
17 | the third-party program manager at the order of the | ||||||
18 | Commission. The utility's obligation under this paragraph | ||||||
19 | (1.25) shall be considered met upon transfer of funds to | ||||||
20 | the third-party program manager and retirement of | ||||||
21 | associated renewable energy credits. At least every 2 | ||||||
22 | years, the Agency shall select an independent evaluator to | ||||||
23 | review and report on the declining block program and the | ||||||
24 | performance of the declining block program manager. The | ||||||
25 | report should include the number of projects installed, the | ||||||
26 | total installed capacity in kilowatts, the average cost per |
| |||||||
| |||||||
1 | kilowatt of installed capacity, the total number of jobs, | ||||||
2 | and other economic, social, and environmental benefits | ||||||
3 | created. The report shall be posted on the Agency's website | ||||||
4 | and used, as needed, to revise the declining block program. | ||||||
5 | Upon order of the Commission, the utility shall provide | ||||||
6 | payment for the independent evaluation of the declining | ||||||
7 | block program. Costs associated with evaluation of the | ||||||
8 | declining block program shall not be included in paragraph | ||||||
9 | (1.15) of this subdivision (c), however these costs shall | ||||||
10 | be recoverable as a utility cost of service under the | ||||||
11 | Public Utilities Act. The selection of the third-party | ||||||
12 | program manager, the selection of the independent | ||||||
13 | evaluator, and the procurement process described in this | ||||||
14 | paragraph (1.25) are exempt from the requirements of | ||||||
15 | Section 20-10 of the Illinois Procurement Code. | ||||||
16 | (1.30) The long-term renewable resources procurement | ||||||
17 | plan required by the subdivision (c) shall include a | ||||||
18 | Community Solar Program. The Agency shall develop the | ||||||
19 | Community Solar Program to purchase renewable energy | ||||||
20 | credits from community solar projects with a goal to expand | ||||||
21 | renewable energy generating facility access to a broader | ||||||
22 | group of energy consumers, including those who cannot | ||||||
23 | install renewable energy on their own properties, while | ||||||
24 | prioritizing those persons most sensitive to market | ||||||
25 | barriers. | ||||||
26 | The Agency shall establish the terms, conditions, and |
| |||||||
| |||||||
1 | program requirements for community solar projects as part | ||||||
2 | of the long-term renewable resources plan required by this | ||||||
3 | Section. Any plan approved by the Commission must | ||||||
4 | reasonably allow for the creation, financing, and | ||||||
5 | accessibility of community solar projects and shall allow | ||||||
6 | subscriptions to community solar projects to be portable | ||||||
7 | and transferrable. Electric utilities shall establish a | ||||||
8 | tariff to provide bill credits to subscribers of community | ||||||
9 | solar projects, as specified in an approved long-term | ||||||
10 | renewable resources plan. The community solar bill credits | ||||||
11 | shall account for the fair value of the distributed solar | ||||||
12 | energy and its delivery, generation capacity, transmission | ||||||
13 | capacity, transmission and distribution line losses, and | ||||||
14 | environmental value. The Agency may provide an enhanced | ||||||
15 | bill credit for community solar projects that are located | ||||||
16 | within brownfield sites or within strategic zones | ||||||
17 | identified by the utility with approval by the Commission | ||||||
18 | to provide the greatest benefits to the electric | ||||||
19 | distribution system. If the electrical capacity of a | ||||||
20 | community solar project is not fully subscribed during the | ||||||
21 | first full year of operation, the electric utility shall | ||||||
22 | purchase the energy associated with the unsubscribed | ||||||
23 | capacity at the electric utility's avoided cost of | ||||||
24 | electricity supply over the month period or as otherwise | ||||||
25 | specified by the terms of a power purchase agreement | ||||||
26 | negotiated by the community solar owners or subscribers and |
| |||||||
| |||||||
1 | the electricity provider. After the first full year of | ||||||
2 | operation, if the electrical capacity of a community solar | ||||||
3 | project is not fully subscribed, the electric utility shall | ||||||
4 | purchase the energy associated with the unsubscribed | ||||||
5 | capacity at the electric utility's avoided cost of | ||||||
6 | electricity supply over the month period unless excess | ||||||
7 | capacity is otherwise provided for in a power purchase | ||||||
8 | agreement. The Agency shall purchase renewable energy | ||||||
9 | credits from subscribed shares of community solar projects | ||||||
10 | through the declining block program described in paragraph | ||||||
11 | (6) of this subdivision (c) or through the low income solar | ||||||
12 | program described in Section 1-56 of this Act. The owners | ||||||
13 | of and any subscribers to a community solar project shall | ||||||
14 | not be considered public utilities or alternative retail | ||||||
15 | electricity suppliers under the Public Utilities Act | ||||||
16 | solely as a result of their interest in or subscription to | ||||||
17 | a community solar project and shall not be required to | ||||||
18 | become an alternative retail electric supplier by | ||||||
19 | participating in a community solar project with a public | ||||||
20 | utility. | ||||||
21 | The procurement plans shall include cost-effective | ||||||
22 | renewable energy resources. A minimum percentage of each | ||||||
23 | utility's total supply to serve the load of eligible retail | ||||||
24 | customers, as defined in Section 16-111.5(a) of the Public | ||||||
25 | Utilities Act, procured for each of the following years | ||||||
26 | shall be generated from cost-effective renewable energy |
| |||||||
| |||||||
1 | resources: at least 2% by June 1, 2008; at least 4% by June | ||||||
2 | 1, 2009; at least 5% by June 1, 2010; at least 6% by June 1, | ||||||
3 | 2011; at least 7% by June 1, 2012; at least 8% by June 1, | ||||||
4 | 2013; at least 9% by June 1, 2014; at least 10% by June 1, | ||||||
5 | 2015; and increasing by at least 1.5% each year thereafter | ||||||
6 | to at least 25% by June 1, 2025. To the extent that it is | ||||||
7 | available, at least 75% of the renewable energy resources | ||||||
8 | used to meet these standards shall come from wind | ||||||
9 | generation and, beginning on June 1, 2011, at least the | ||||||
10 | following percentages of the renewable energy resources | ||||||
11 | used to meet these standards shall come from photovoltaics | ||||||
12 | on the following schedule: 0.5% by June 1, 2012, 1.5% by | ||||||
13 | June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015 and | ||||||
14 | thereafter. Of the renewable energy resources procured | ||||||
15 | pursuant to this Section, at least the following | ||||||
16 | percentages shall come from distributed renewable energy | ||||||
17 | generation devices: 0.5% by June 1, 2013, 0.75% by June 1, | ||||||
18 | 2014, and 1% by June 1, 2015 and thereafter. To the extent | ||||||
19 | available, half of the renewable energy resources procured | ||||||
20 | from distributed renewable energy generation shall come | ||||||
21 | from devices of less than 25 kilowatts in nameplate | ||||||
22 | capacity. Renewable energy resources procured from | ||||||
23 | distributed generation devices may also count towards the | ||||||
24 | required percentages for wind and solar photovoltaics. | ||||||
25 | Procurement of renewable energy resources from distributed | ||||||
26 | renewable energy generation devices shall be done on an |
| |||||||
| |||||||
1 | annual basis through multi-year contracts of no less than 5 | ||||||
2 | years, and shall consist solely of renewable energy | ||||||
3 | credits. | ||||||
4 | The Agency shall create credit requirements for | ||||||
5 | suppliers of distributed renewable energy. In order to | ||||||
6 | minimize the administrative burden on contracting | ||||||
7 | entities, the Agency shall solicit the use of third-party | ||||||
8 | organizations to aggregate distributed renewable energy | ||||||
9 | into groups of no less than one megawatt in installed | ||||||
10 | capacity. These third-party organizations shall administer | ||||||
11 | contracts with individual distributed renewable energy | ||||||
12 | generation device owners. An individual distributed | ||||||
13 | renewable energy generation device owner shall have the | ||||||
14 | ability to measure the output of his or her distributed | ||||||
15 | renewable energy generation device. | ||||||
16 | For purposes of this subsection (c), "cost-effective" | ||||||
17 | means that the costs of procuring renewable energy | ||||||
18 | resources do not cause the limit stated in paragraph (2) of | ||||||
19 | this subsection (c) to be exceeded and do not exceed | ||||||
20 | benchmarks based on market prices for renewable energy | ||||||
21 | resources in the region, which shall be developed by the | ||||||
22 | procurement administrator, in consultation with the | ||||||
23 | Commission staff, Agency staff, and the procurement | ||||||
24 | monitor and shall be subject to Commission review and | ||||||
25 | approval. | ||||||
26 | (2) (Blank). For purposes of this subsection (c), the |
| |||||||
| |||||||
1 | required procurement of cost-effective renewable energy | ||||||
2 | resources for a particular year shall be measured as a | ||||||
3 | percentage of the actual amount of electricity | ||||||
4 | (megawatt-hours) supplied by the electric utility to | ||||||
5 | eligible retail customers in the planning year ending | ||||||
6 | immediately prior to the procurement. For purposes of this | ||||||
7 | subsection (c), the amount paid per kilowatthour means the | ||||||
8 | total amount paid for electric service expressed on a per | ||||||
9 | kilowatthour basis. For purposes of this subsection (c), | ||||||
10 | the total amount paid for electric service includes without | ||||||
11 | limitation amounts paid for supply, transmission, | ||||||
12 | distribution, surcharges, and add-on taxes. | ||||||
13 | Notwithstanding the requirements of this subsection | ||||||
14 | (c), the total of renewable energy resources procured | ||||||
15 | pursuant to the procurement plan for any single year shall | ||||||
16 | be reduced by an amount necessary to limit the annual | ||||||
17 | estimated average net increase due to the costs of these | ||||||
18 | resources included in the amounts paid by eligible retail | ||||||
19 | customers in connection with electric service to: | ||||||
20 | (A) in 2008, no more than 0.5% of the amount paid | ||||||
21 | per kilowatthour by those customers during the year | ||||||
22 | ending May 31, 2007; | ||||||
23 | (B) in 2009, the greater of an additional 0.5% of | ||||||
24 | the amount paid per kilowatthour by those customers | ||||||
25 | during the year ending May 31, 2008 or 1% of the amount | ||||||
26 | paid per kilowatthour by those customers during the |
| |||||||
| |||||||
1 | year ending May 31, 2007; | ||||||
2 | (C) in 2010, the greater of an additional 0.5% of | ||||||
3 | the amount paid per kilowatthour by those customers | ||||||
4 | during the year ending May 31, 2009 or 1.5% of the | ||||||
5 | amount paid per kilowatthour by those customers during | ||||||
6 | the year ending May 31, 2007; | ||||||
7 | (D) in 2011, the greater of an additional 0.5% of | ||||||
8 | the amount paid per kilowatthour by those customers | ||||||
9 | during the year ending May 31, 2010 or 2% of the amount | ||||||
10 | paid per kilowatthour by those customers during the | ||||||
11 | year ending May 31, 2007; and | ||||||
12 | (E) thereafter, the amount of renewable energy | ||||||
13 | resources procured pursuant to the procurement plan | ||||||
14 | for any single year shall be reduced by an amount | ||||||
15 | necessary to limit the estimated average net increase | ||||||
16 | due to the cost of these resources included in the | ||||||
17 | amounts paid by eligible retail customers in | ||||||
18 | connection with electric service to no more than the | ||||||
19 | greater of 2.015% of the amount paid per kilowatthour | ||||||
20 | by those customers during the year ending May 31, 2007 | ||||||
21 | or the incremental amount per kilowatthour paid for | ||||||
22 | these resources in 2011. | ||||||
23 | No later than June 30, 2011, the Commission shall | ||||||
24 | review the limitation on the amount of renewable energy | ||||||
25 | resources procured pursuant to this subsection (c) and | ||||||
26 | report to the General Assembly its findings as to |
| |||||||
| |||||||
1 | whether that limitation unduly constrains the | ||||||
2 | procurement of cost-effective renewable energy | ||||||
3 | resources. | ||||||
4 | (3) (Blank). Through June 1, 2011, renewable energy | ||||||
5 | resources shall be counted for the purpose of meeting the | ||||||
6 | renewable energy standards set forth in paragraph (1) of | ||||||
7 | this subsection (c) only if they are generated from | ||||||
8 | facilities located in the State, provided that | ||||||
9 | cost-effective renewable energy resources are available | ||||||
10 | from those facilities. If those cost-effective resources | ||||||
11 | are not available in Illinois, they shall be procured in | ||||||
12 | states that adjoin Illinois and may be counted towards | ||||||
13 | compliance. If those cost-effective resources are not | ||||||
14 | available in Illinois or in states that adjoin Illinois, | ||||||
15 | they shall be purchased elsewhere and shall be counted | ||||||
16 | towards compliance. After June 1, 2011, cost-effective | ||||||
17 | renewable energy resources located in Illinois and in | ||||||
18 | states that adjoin Illinois may be counted towards | ||||||
19 | compliance with the standards set forth in paragraph (1) of | ||||||
20 | this subsection (c). If those cost-effective resources are | ||||||
21 | not available in Illinois or in states that adjoin | ||||||
22 | Illinois, they shall be purchased elsewhere and shall be | ||||||
23 | counted towards compliance. | ||||||
24 | (4) The electric utility shall retire all renewable | ||||||
25 | energy credits used to comply with the standard. | ||||||
26 | (5) Beginning with the 2010 delivery year and ending |
| |||||||
| |||||||
1 | after the 2016 delivery year year commencing June 1, 2010 , | ||||||
2 | an electric utility subject to this subsection (c) shall | ||||||
3 | apply the lesser of the maximum alternative compliance | ||||||
4 | payment rate or the most recent estimated alternative | ||||||
5 | compliance payment rate for its service territory for the | ||||||
6 | corresponding compliance period, established pursuant to | ||||||
7 | subsection (d) of Section 16-115D of the Public Utilities | ||||||
8 | Act to its retail customers that take service pursuant to | ||||||
9 | the electric utility's hourly pricing tariff or tariffs. | ||||||
10 | The electric utility shall retain all amounts collected as | ||||||
11 | a result of the application of the alternative compliance | ||||||
12 | payment rate or rates to such customers, and, beginning in | ||||||
13 | 2011, the utility shall include in the information provided | ||||||
14 | under item (1) of subsection (d) of Section 16-111.5 of the | ||||||
15 | Public Utilities Act the amounts collected under the | ||||||
16 | alternative compliance payment rate or rates for the prior | ||||||
17 | year ending May 31. Notwithstanding any limitation on the | ||||||
18 | procurement of renewable energy resources imposed by item | ||||||
19 | (2) of this subsection (c), the Agency shall increase its | ||||||
20 | spending on the purchase of renewable energy resources to | ||||||
21 | be procured by the electric utility for the next plan year | ||||||
22 | by an amount equal to the amounts collected by the utility | ||||||
23 | under the alternative compliance payment rate or rates in | ||||||
24 | the prior year ending May 31. Beginning April 1, 2012, and | ||||||
25 | each year thereafter, the Agency shall prepare a public | ||||||
26 | report for the General Assembly and Illinois Commerce |
| |||||||
| |||||||
1 | Commission that shall include, but not necessarily be | ||||||
2 | limited to: | ||||||
3 | (A) a comparison of the costs associated with the | ||||||
4 | Agency's procurement of renewable energy resources to | ||||||
5 | (1) the Agency's costs associated with electricity | ||||||
6 | generated by other types of generation facilities and | ||||||
7 | (2) the benefits associated with the Agency's | ||||||
8 | procurement of renewable energy resources; and | ||||||
9 | (B) an analysis of the rate impacts associated with | ||||||
10 | the Illinois Power Agency's procurement of renewable | ||||||
11 | resources, including, but not limited to, any | ||||||
12 | long-term contracts, on the eligible retail customers | ||||||
13 | of electric utilities. | ||||||
14 | The analysis shall include the Agency's estimate of the | ||||||
15 | total dollar impact that the Agency's procurement of | ||||||
16 | renewable resources has had on the annual electricity bills | ||||||
17 | of the customer classes that comprise each eligible retail | ||||||
18 | customer class taking service from an electric utility. The | ||||||
19 | Agency's report shall also analyze how the operation of the | ||||||
20 | alternative compliance payment mechanism, any long-term | ||||||
21 | contracts, or other aspects of the applicable renewable | ||||||
22 | portfolio standards impacts the rates of customers of | ||||||
23 | alternative retail electric suppliers. | ||||||
24 | (6) Costs of procuring renewable energy credits | ||||||
25 | pursuant to plans approved under Section 16-111.5C of the | ||||||
26 | Public Utilities Act and associated reasonable expenses |
| |||||||
| |||||||
1 | for implementing the procurement programs, including the | ||||||
2 | costs of administering and evaluating the declining block | ||||||
3 | program, shall be recoverable as a utility cost of service | ||||||
4 | under the Public Utilities Act. | ||||||
5 | (7) In meeting the renewable energy requirements of | ||||||
6 | this subdivision (c), to the extent feasible and consistent | ||||||
7 | with State and federal law, the renewable energy credit | ||||||
8 | procurements, declining block solar program, and community | ||||||
9 | solar program shall provide employment opportunities for | ||||||
10 | all segments of the population and workforce, including | ||||||
11 | minority-owned and female-owned business enterprises, and | ||||||
12 | shall not, consistent with State and federal law, | ||||||
13 | discriminate based on race or socioeconomic status. | ||||||
14 | (d) Clean coal portfolio standard. | ||||||
15 | (1) The procurement plans shall include electricity | ||||||
16 | generated using clean coal. Each utility shall enter into | ||||||
17 | one or more sourcing agreements with the initial clean coal | ||||||
18 | facility, as provided in paragraph (3) of this subsection | ||||||
19 | (d), covering electricity generated by the initial clean | ||||||
20 | coal facility representing at least 5% of each utility's | ||||||
21 | total supply to serve the load of eligible retail customers | ||||||
22 | in 2015 and each year thereafter, as described in paragraph | ||||||
23 | (3) of this subsection (d), subject to the limits specified | ||||||
24 | in paragraph (2) of this subsection (d). It is the goal of | ||||||
25 | the State that by January 1, 2025, 25% of the electricity | ||||||
26 | used in the State shall be generated by cost-effective |
| |||||||
| |||||||
1 | clean coal facilities. For purposes of this subsection (d), | ||||||
2 | "cost-effective" means that the expenditures pursuant to | ||||||
3 | such sourcing agreements do not cause the limit stated in | ||||||
4 | paragraph (2) of this subsection (d) to be exceeded and do | ||||||
5 | not exceed cost-based benchmarks, which shall be developed | ||||||
6 | to assess all expenditures pursuant to such sourcing | ||||||
7 | agreements covering electricity generated by clean coal | ||||||
8 | facilities, other than the initial clean coal facility, by | ||||||
9 | the procurement administrator, in consultation with the | ||||||
10 | Commission staff, Agency staff, and the procurement | ||||||
11 | monitor and shall be subject to Commission review and | ||||||
12 | approval. | ||||||
13 | A utility party to a sourcing agreement shall | ||||||
14 | immediately retire any emission credits that it receives in | ||||||
15 | connection with the electricity covered by such agreement. | ||||||
16 | Utilities shall maintain adequate records documenting | ||||||
17 | the purchases under the sourcing agreement to comply with | ||||||
18 | this subsection (d) and shall file an accounting with the | ||||||
19 | load forecast that must be filed with the Agency by July 15 | ||||||
20 | of each year, in accordance with subsection (d) of Section | ||||||
21 | 16-111.5 of the Public Utilities Act. | ||||||
22 | A utility shall be deemed to have complied with the | ||||||
23 | clean coal portfolio standard specified in this subsection | ||||||
24 | (d) if the utility enters into a sourcing agreement as | ||||||
25 | required by this subsection (d). | ||||||
26 | (2) For purposes of this subsection (d), the required |
| |||||||
| |||||||
1 | execution of sourcing agreements with the initial clean | ||||||
2 | coal facility for a particular year shall be measured as a | ||||||
3 | percentage of the actual amount of electricity | ||||||
4 | (megawatt-hours) supplied by the electric utility to | ||||||
5 | eligible retail customers in the planning year ending | ||||||
6 | immediately prior to the agreement's execution. For | ||||||
7 | purposes of this subsection (d), the amount paid per | ||||||
8 | kilowatthour means the total amount paid for electric | ||||||
9 | service expressed on a per kilowatthour basis. For purposes | ||||||
10 | of this subsection (d), the total amount paid for electric | ||||||
11 | service includes without limitation amounts paid for | ||||||
12 | supply, transmission, distribution, surcharges and add-on | ||||||
13 | taxes. | ||||||
14 | Notwithstanding the requirements of this subsection | ||||||
15 | (d), the total amount paid under sourcing agreements with | ||||||
16 | clean coal facilities pursuant to the procurement plan for | ||||||
17 | any given year shall be reduced by an amount necessary to | ||||||
18 | limit the annual estimated average net increase due to the | ||||||
19 | costs of these resources included in the amounts paid by | ||||||
20 | eligible retail customers in connection with electric | ||||||
21 | service to: | ||||||
22 | (A) in 2010, no more than 0.5% of the amount paid | ||||||
23 | per kilowatthour by those customers during the year | ||||||
24 | ending May 31, 2009; | ||||||
25 | (B) in 2011, the greater of an additional 0.5% of | ||||||
26 | the amount paid per kilowatthour by those customers |
| |||||||
| |||||||
1 | during the year ending May 31, 2010 or 1% of the amount | ||||||
2 | paid per kilowatthour by those customers during the | ||||||
3 | year ending May 31, 2009; | ||||||
4 | (C) in 2012, the greater of an additional 0.5% of | ||||||
5 | the amount paid per kilowatthour by those customers | ||||||
6 | during the year ending May 31, 2011 or 1.5% of the | ||||||
7 | amount paid per kilowatthour by those customers during | ||||||
8 | the year ending May 31, 2009; | ||||||
9 | (D) in 2013, the greater of an additional 0.5% of | ||||||
10 | the amount paid per kilowatthour by those customers | ||||||
11 | during the year ending May 31, 2012 or 2% of the amount | ||||||
12 | paid per kilowatthour by those customers during the | ||||||
13 | year ending May 31, 2009; and | ||||||
14 | (E) thereafter, the total amount paid under | ||||||
15 | sourcing agreements with clean coal facilities | ||||||
16 | pursuant to the procurement plan for any single year | ||||||
17 | shall be reduced by an amount necessary to limit the | ||||||
18 | estimated average net increase due to the cost of these | ||||||
19 | resources included in the amounts paid by eligible | ||||||
20 | retail customers in connection with electric service | ||||||
21 | to no more than the greater of (i) 2.015% of the amount | ||||||
22 | paid per kilowatthour by those customers during the | ||||||
23 | year ending May 31, 2009 or (ii) the incremental amount | ||||||
24 | per kilowatthour paid for these resources in 2013. | ||||||
25 | These requirements may be altered only as provided by | ||||||
26 | statute. |
| |||||||
| |||||||
1 | No later than June 30, 2015, the Commission shall | ||||||
2 | review the limitation on the total amount paid under | ||||||
3 | sourcing agreements, if any, with clean coal facilities | ||||||
4 | pursuant to this subsection (d) and report to the General | ||||||
5 | Assembly its findings as to whether that limitation unduly | ||||||
6 | constrains the amount of electricity generated by | ||||||
7 | cost-effective clean coal facilities that is covered by | ||||||
8 | sourcing agreements. | ||||||
9 | (3) Initial clean coal facility. In order to promote | ||||||
10 | development of clean coal facilities in Illinois, each | ||||||
11 | electric utility subject to this Section shall execute a | ||||||
12 | sourcing agreement to source electricity from a proposed | ||||||
13 | clean coal facility in Illinois (the "initial clean coal | ||||||
14 | facility") that will have a nameplate capacity of at least | ||||||
15 | 500 MW when commercial operation commences, that has a | ||||||
16 | final Clean Air Act permit on the effective date of this | ||||||
17 | amendatory Act of the 95th General Assembly, and that will | ||||||
18 | meet the definition of clean coal facility in Section 1-10 | ||||||
19 | of this Act when commercial operation commences. The | ||||||
20 | sourcing agreements with this initial clean coal facility | ||||||
21 | shall be subject to both approval of the initial clean coal | ||||||
22 | facility by the General Assembly and satisfaction of the | ||||||
23 | requirements of paragraph (4) of this subsection (d) and | ||||||
24 | shall be executed within 90 days after any such approval by | ||||||
25 | the General Assembly. The Agency and the Commission shall | ||||||
26 | have authority to inspect all books and records associated |
| |||||||
| |||||||
1 | with the initial clean coal facility during the term of | ||||||
2 | such a sourcing agreement. A utility's sourcing agreement | ||||||
3 | for electricity produced by the initial clean coal facility | ||||||
4 | shall include: | ||||||
5 | (A) a formula contractual price (the "contract | ||||||
6 | price") approved pursuant to paragraph (4) of this | ||||||
7 | subsection (d), which shall: | ||||||
8 | (i) be determined using a cost of service | ||||||
9 | methodology employing either a level or deferred | ||||||
10 | capital recovery component, based on a capital | ||||||
11 | structure consisting of 45% equity and 55% debt, | ||||||
12 | and a return on equity as may be approved by the | ||||||
13 | Federal Energy Regulatory Commission, which in any | ||||||
14 | case may not exceed the lower of 11.5% or the rate | ||||||
15 | of return approved by the General Assembly | ||||||
16 | pursuant to paragraph (4) of this subsection (d); | ||||||
17 | and | ||||||
18 | (ii) provide that all miscellaneous net | ||||||
19 | revenue, including but not limited to net revenue | ||||||
20 | from the sale of emission allowances, if any, | ||||||
21 | substitute natural gas, if any, grants or other | ||||||
22 | support provided by the State of Illinois or the | ||||||
23 | United States Government, firm transmission | ||||||
24 | rights, if any, by-products produced by the | ||||||
25 | facility, energy or capacity derived from the | ||||||
26 | facility and not covered by a sourcing agreement |
| |||||||
| |||||||
1 | pursuant to paragraph (3) of this subsection (d) or | ||||||
2 | item (5) of subsection (d) of Section 16-115 of the | ||||||
3 | Public Utilities Act, whether generated from the | ||||||
4 | synthesis gas derived from coal, from SNG, or from | ||||||
5 | natural gas, shall be credited against the revenue | ||||||
6 | requirement for this initial clean coal facility; | ||||||
7 | (B) power purchase provisions, which shall: | ||||||
8 | (i) provide that the utility party to such | ||||||
9 | sourcing agreement shall pay the contract price | ||||||
10 | for electricity delivered under such sourcing | ||||||
11 | agreement; | ||||||
12 | (ii) require delivery of electricity to the | ||||||
13 | regional transmission organization market of the | ||||||
14 | utility that is party to such sourcing agreement; | ||||||
15 | (iii) require the utility party to such | ||||||
16 | sourcing agreement to buy from the initial clean | ||||||
17 | coal facility in each hour an amount of energy | ||||||
18 | equal to all clean coal energy made available from | ||||||
19 | the initial clean coal facility during such hour | ||||||
20 | times a fraction, the numerator of which is such | ||||||
21 | utility's retail market sales of electricity | ||||||
22 | (expressed in kilowatthours sold) in the State | ||||||
23 | during the prior calendar month and the | ||||||
24 | denominator of which is the total retail market | ||||||
25 | sales of electricity (expressed in kilowatthours | ||||||
26 | sold) in the State by utilities during such prior |
| |||||||
| |||||||
1 | month and the sales of electricity (expressed in | ||||||
2 | kilowatthours sold) in the State by alternative | ||||||
3 | retail electric suppliers during such prior month | ||||||
4 | that are subject to the requirements of this | ||||||
5 | subsection (d) and paragraph (5) of subsection (d) | ||||||
6 | of Section 16-115 of the Public Utilities Act, | ||||||
7 | provided that the amount purchased by the utility | ||||||
8 | in any year will be limited by paragraph (2) of | ||||||
9 | this subsection (d); and | ||||||
10 | (iv) be considered pre-existing contracts in | ||||||
11 | such utility's procurement plans for eligible | ||||||
12 | retail customers; | ||||||
13 | (C) contract for differences provisions, which | ||||||
14 | shall: | ||||||
15 | (i) require the utility party to such sourcing | ||||||
16 | agreement to contract with the initial clean coal | ||||||
17 | facility in each hour with respect to an amount of | ||||||
18 | energy equal to all clean coal energy made | ||||||
19 | available from the initial clean coal facility | ||||||
20 | during such hour times a fraction, the numerator of | ||||||
21 | which is such utility's retail market sales of | ||||||
22 | electricity (expressed in kilowatthours sold) in | ||||||
23 | the utility's service territory in the State | ||||||
24 | during the prior calendar month and the | ||||||
25 | denominator of which is the total retail market | ||||||
26 | sales of electricity (expressed in kilowatthours |
| |||||||
| |||||||
1 | sold) in the State by utilities during such prior | ||||||
2 | month and the sales of electricity (expressed in | ||||||
3 | kilowatthours sold) in the State by alternative | ||||||
4 | retail electric suppliers during such prior month | ||||||
5 | that are subject to the requirements of this | ||||||
6 | subsection (d) and paragraph (5) of subsection (d) | ||||||
7 | of Section 16-115 of the Public Utilities Act, | ||||||
8 | provided that the amount paid by the utility in any | ||||||
9 | year will be limited by paragraph (2) of this | ||||||
10 | subsection (d); | ||||||
11 | (ii) provide that the utility's payment | ||||||
12 | obligation in respect of the quantity of | ||||||
13 | electricity determined pursuant to the preceding | ||||||
14 | clause (i) shall be limited to an amount equal to | ||||||
15 | (1) the difference between the contract price | ||||||
16 | determined pursuant to subparagraph (A) of | ||||||
17 | paragraph (3) of this subsection (d) and the | ||||||
18 | day-ahead price for electricity delivered to the | ||||||
19 | regional transmission organization market of the | ||||||
20 | utility that is party to such sourcing agreement | ||||||
21 | (or any successor delivery point at which such | ||||||
22 | utility's supply obligations are financially | ||||||
23 | settled on an hourly basis) (the "reference | ||||||
24 | price") on the day preceding the day on which the | ||||||
25 | electricity is delivered to the initial clean coal | ||||||
26 | facility busbar, multiplied by (2) the quantity of |
| |||||||
| |||||||
1 | electricity determined pursuant to the preceding | ||||||
2 | clause (i); and | ||||||
3 | (iii) not require the utility to take physical | ||||||
4 | delivery of the electricity produced by the | ||||||
5 | facility; | ||||||
6 | (D) general provisions, which shall: | ||||||
7 | (i) specify a term of no more than 30 years, | ||||||
8 | commencing on the commercial operation date of the | ||||||
9 | facility; | ||||||
10 | (ii) provide that utilities shall maintain | ||||||
11 | adequate records documenting purchases under the | ||||||
12 | sourcing agreements entered into to comply with | ||||||
13 | this subsection (d) and shall file an accounting | ||||||
14 | with the load forecast that must be filed with the | ||||||
15 | Agency by July 15 of each year, in accordance with | ||||||
16 | subsection (d) of Section 16-111.5 of the Public | ||||||
17 | Utilities Act; | ||||||
18 | (iii) provide that all costs associated with | ||||||
19 | the initial clean coal facility will be | ||||||
20 | periodically reported to the Federal Energy | ||||||
21 | Regulatory Commission and to purchasers in | ||||||
22 | accordance with applicable laws governing | ||||||
23 | cost-based wholesale power contracts; | ||||||
24 | (iv) permit the Illinois Power Agency to | ||||||
25 | assume ownership of the initial clean coal | ||||||
26 | facility, without monetary consideration and |
| |||||||
| |||||||
1 | otherwise on reasonable terms acceptable to the | ||||||
2 | Agency, if the Agency so requests no less than 3 | ||||||
3 | years prior to the end of the stated contract term; | ||||||
4 | (v) require the owner of the initial clean coal | ||||||
5 | facility to provide documentation to the | ||||||
6 | Commission each year, starting in the facility's | ||||||
7 | first year of commercial operation, accurately | ||||||
8 | reporting the quantity of carbon emissions from | ||||||
9 | the facility that have been captured and | ||||||
10 | sequestered and report any quantities of carbon | ||||||
11 | released from the site or sites at which carbon | ||||||
12 | emissions were sequestered in prior years, based | ||||||
13 | on continuous monitoring of such sites. If, in any | ||||||
14 | year after the first year of commercial operation, | ||||||
15 | the owner of the facility fails to demonstrate that | ||||||
16 | the initial clean coal facility captured and | ||||||
17 | sequestered at least 50% of the total carbon | ||||||
18 | emissions that the facility would otherwise emit | ||||||
19 | or that sequestration of emissions from prior | ||||||
20 | years has failed, resulting in the release of | ||||||
21 | carbon dioxide into the atmosphere, the owner of | ||||||
22 | the facility must offset excess emissions. Any | ||||||
23 | such carbon offsets must be permanent, additional, | ||||||
24 | verifiable, real, located within the State of | ||||||
25 | Illinois, and legally and practicably enforceable. | ||||||
26 | The cost of such offsets for the facility that are |
| |||||||
| |||||||
1 | not recoverable shall not exceed $15 million in any | ||||||
2 | given year. No costs of any such purchases of | ||||||
3 | carbon offsets may be recovered from a utility or | ||||||
4 | its customers. All carbon offsets purchased for | ||||||
5 | this purpose and any carbon emission credits | ||||||
6 | associated with sequestration of carbon from the | ||||||
7 | facility must be permanently retired. The initial | ||||||
8 | clean coal facility shall not forfeit its | ||||||
9 | designation as a clean coal facility if the | ||||||
10 | facility fails to fully comply with the applicable | ||||||
11 | carbon sequestration requirements in any given | ||||||
12 | year, provided the requisite offsets are | ||||||
13 | purchased. However, the Attorney General, on | ||||||
14 | behalf of the People of the State of Illinois, may | ||||||
15 | specifically enforce the facility's sequestration | ||||||
16 | requirement and the other terms of this contract | ||||||
17 | provision. Compliance with the sequestration | ||||||
18 | requirements and offset purchase requirements | ||||||
19 | specified in paragraph (3) of this subsection (d) | ||||||
20 | shall be reviewed annually by an independent | ||||||
21 | expert retained by the owner of the initial clean | ||||||
22 | coal facility, with the advance written approval | ||||||
23 | of the Attorney General. The Commission may, in the | ||||||
24 | course of the review specified in item (vii), | ||||||
25 | reduce the allowable return on equity for the | ||||||
26 | facility if the facility wilfully fails to comply |
| |||||||
| |||||||
1 | with the carbon capture and sequestration | ||||||
2 | requirements set forth in this item (v); | ||||||
3 | (vi) include limits on, and accordingly | ||||||
4 | provide for modification of, the amount the | ||||||
5 | utility is required to source under the sourcing | ||||||
6 | agreement consistent with paragraph (2) of this | ||||||
7 | subsection (d); | ||||||
8 | (vii) require Commission review: (1) to | ||||||
9 | determine the justness, reasonableness, and | ||||||
10 | prudence of the inputs to the formula referenced in | ||||||
11 | subparagraphs (A)(i) through (A)(iii) of paragraph | ||||||
12 | (3) of this subsection (d), prior to an adjustment | ||||||
13 | in those inputs including, without limitation, the | ||||||
14 | capital structure and return on equity, fuel | ||||||
15 | costs, and other operations and maintenance costs | ||||||
16 | and (2) to approve the costs to be passed through | ||||||
17 | to customers under the sourcing agreement by which | ||||||
18 | the utility satisfies its statutory obligations. | ||||||
19 | Commission review shall occur no less than every 3 | ||||||
20 | years, regardless of whether any adjustments have | ||||||
21 | been proposed, and shall be completed within 9 | ||||||
22 | months; | ||||||
23 | (viii) limit the utility's obligation to such | ||||||
24 | amount as the utility is allowed to recover through | ||||||
25 | tariffs filed with the Commission, provided that | ||||||
26 | neither the clean coal facility nor the utility |
| |||||||
| |||||||
1 | waives any right to assert federal pre-emption or | ||||||
2 | any other argument in response to a purported | ||||||
3 | disallowance of recovery costs; | ||||||
4 | (ix) limit the utility's or alternative retail | ||||||
5 | electric supplier's obligation to incur any | ||||||
6 | liability until such time as the facility is in | ||||||
7 | commercial operation and generating power and | ||||||
8 | energy and such power and energy is being delivered | ||||||
9 | to the facility busbar; | ||||||
10 | (x) provide that the owner or owners of the | ||||||
11 | initial clean coal facility, which is the | ||||||
12 | counterparty to such sourcing agreement, shall | ||||||
13 | have the right from time to time to elect whether | ||||||
14 | the obligations of the utility party thereto shall | ||||||
15 | be governed by the power purchase provisions or the | ||||||
16 | contract for differences provisions; | ||||||
17 | (xi) append documentation showing that the | ||||||
18 | formula rate and contract, insofar as they relate | ||||||
19 | to the power purchase provisions, have been | ||||||
20 | approved by the Federal Energy Regulatory | ||||||
21 | Commission pursuant to Section 205 of the Federal | ||||||
22 | Power Act; | ||||||
23 | (xii) provide that any changes to the terms of | ||||||
24 | the contract, insofar as such changes relate to the | ||||||
25 | power purchase provisions, are subject to review | ||||||
26 | under the public interest standard applied by the |
| |||||||
| |||||||
1 | Federal Energy Regulatory Commission pursuant to | ||||||
2 | Sections 205 and 206 of the Federal Power Act; and | ||||||
3 | (xiii) conform with customary lender | ||||||
4 | requirements in power purchase agreements used as | ||||||
5 | the basis for financing non-utility generators. | ||||||
6 | (4) Effective date of sourcing agreements with the | ||||||
7 | initial clean coal facility. | ||||||
8 | Any proposed sourcing agreement with the initial clean | ||||||
9 | coal facility shall not become effective unless the | ||||||
10 | following reports are prepared and submitted and | ||||||
11 | authorizations and approvals obtained: | ||||||
12 | (i) Facility cost report. The owner of the initial | ||||||
13 | clean coal facility shall submit to the Commission, the | ||||||
14 | Agency, and the General Assembly a front-end | ||||||
15 | engineering and design study, a facility cost report, | ||||||
16 | method of financing (including but not limited to | ||||||
17 | structure and associated costs), and an operating and | ||||||
18 | maintenance cost quote for the facility (collectively | ||||||
19 | "facility cost report"), which shall be prepared in | ||||||
20 | accordance with the requirements of this paragraph (4) | ||||||
21 | of subsection (d) of this Section, and shall provide | ||||||
22 | the Commission and the Agency access to the work | ||||||
23 | papers, relied upon documents, and any other backup | ||||||
24 | documentation related to the facility cost report. | ||||||
25 | (ii) Commission report. Within 6 months following | ||||||
26 | receipt of the facility cost report, the Commission, in |
| |||||||
| |||||||
1 | consultation with the Agency, shall submit a report to | ||||||
2 | the General Assembly setting forth its analysis of the | ||||||
3 | facility cost report. Such report shall include, but | ||||||
4 | not be limited to, a comparison of the costs associated | ||||||
5 | with electricity generated by the initial clean coal | ||||||
6 | facility to the costs associated with electricity | ||||||
7 | generated by other types of generation facilities, an | ||||||
8 | analysis of the rate impacts on residential and small | ||||||
9 | business customers over the life of the sourcing | ||||||
10 | agreements, and an analysis of the likelihood that the | ||||||
11 | initial clean coal facility will commence commercial | ||||||
12 | operation by and be delivering power to the facility's | ||||||
13 | busbar by 2016. To assist in the preparation of its | ||||||
14 | report, the Commission, in consultation with the | ||||||
15 | Agency, may hire one or more experts or consultants, | ||||||
16 | the costs of which shall be paid for by the owner of | ||||||
17 | the initial clean coal facility. The Commission and | ||||||
18 | Agency may begin the process of selecting such experts | ||||||
19 | or consultants prior to receipt of the facility cost | ||||||
20 | report. | ||||||
21 | (iii) General Assembly approval. The proposed | ||||||
22 | sourcing agreements shall not take effect unless, | ||||||
23 | based on the facility cost report and the Commission's | ||||||
24 | report, the General Assembly enacts authorizing | ||||||
25 | legislation approving (A) the projected price, stated | ||||||
26 | in cents per kilowatthour, to be charged for |
| |||||||
| |||||||
1 | electricity generated by the initial clean coal | ||||||
2 | facility, (B) the projected impact on residential and | ||||||
3 | small business customers' bills over the life of the | ||||||
4 | sourcing agreements, and (C) the maximum allowable | ||||||
5 | return on equity for the project; and | ||||||
6 | (iv) Commission review. If the General Assembly | ||||||
7 | enacts authorizing legislation pursuant to | ||||||
8 | subparagraph (iii) approving a sourcing agreement, the | ||||||
9 | Commission shall, within 90 days of such enactment, | ||||||
10 | complete a review of such sourcing agreement. During | ||||||
11 | such time period, the Commission shall implement any | ||||||
12 | directive of the General Assembly, resolve any | ||||||
13 | disputes between the parties to the sourcing agreement | ||||||
14 | concerning the terms of such agreement, approve the | ||||||
15 | form of such agreement, and issue an order finding that | ||||||
16 | the sourcing agreement is prudent and reasonable. | ||||||
17 | The facility cost report shall be prepared as follows: | ||||||
18 | (A) The facility cost report shall be prepared by | ||||||
19 | duly licensed engineering and construction firms | ||||||
20 | detailing the estimated capital costs payable to one or | ||||||
21 | more contractors or suppliers for the engineering, | ||||||
22 | procurement and construction of the components | ||||||
23 | comprising the initial clean coal facility and the | ||||||
24 | estimated costs of operation and maintenance of the | ||||||
25 | facility. The facility cost report shall include: | ||||||
26 | (i) an estimate of the capital cost of the core |
| |||||||
| |||||||
1 | plant based on one or more front end engineering | ||||||
2 | and design studies for the gasification island and | ||||||
3 | related facilities. The core plant shall include | ||||||
4 | all civil, structural, mechanical, electrical, | ||||||
5 | control, and safety systems. | ||||||
6 | (ii) an estimate of the capital cost of the | ||||||
7 | balance of the plant, including any capital costs | ||||||
8 | associated with sequestration of carbon dioxide | ||||||
9 | emissions and all interconnects and interfaces | ||||||
10 | required to operate the facility, such as | ||||||
11 | transmission of electricity, construction or | ||||||
12 | backfeed power supply, pipelines to transport | ||||||
13 | substitute natural gas or carbon dioxide, potable | ||||||
14 | water supply, natural gas supply, water supply, | ||||||
15 | water discharge, landfill, access roads, and coal | ||||||
16 | delivery. | ||||||
17 | The quoted construction costs shall be expressed | ||||||
18 | in nominal dollars as of the date that the quote is | ||||||
19 | prepared and shall include capitalized financing costs | ||||||
20 | during construction,
taxes, insurance, and other | ||||||
21 | owner's costs, and an assumed escalation in materials | ||||||
22 | and labor beyond the date as of which the construction | ||||||
23 | cost quote is expressed. | ||||||
24 | (B) The front end engineering and design study for | ||||||
25 | the gasification island and the cost study for the | ||||||
26 | balance of plant shall include sufficient design work |
| |||||||
| |||||||
1 | to permit quantification of major categories of | ||||||
2 | materials, commodities and labor hours, and receipt of | ||||||
3 | quotes from vendors of major equipment required to | ||||||
4 | construct and operate the clean coal facility. | ||||||
5 | (C) The facility cost report shall also include an | ||||||
6 | operating and maintenance cost quote that will provide | ||||||
7 | the estimated cost of delivered fuel, personnel, | ||||||
8 | maintenance contracts, chemicals, catalysts, | ||||||
9 | consumables, spares, and other fixed and variable | ||||||
10 | operations and maintenance costs. The delivered fuel | ||||||
11 | cost estimate will be provided by a recognized third | ||||||
12 | party expert or experts in the fuel and transportation | ||||||
13 | industries. The balance of the operating and | ||||||
14 | maintenance cost quote, excluding delivered fuel | ||||||
15 | costs, will be developed based on the inputs provided | ||||||
16 | by duly licensed engineering and construction firms | ||||||
17 | performing the construction cost quote, potential | ||||||
18 | vendors under long-term service agreements and plant | ||||||
19 | operating agreements, or recognized third party plant | ||||||
20 | operator or operators. | ||||||
21 | The operating and maintenance cost quote | ||||||
22 | (including the cost of the front end engineering and | ||||||
23 | design study) shall be expressed in nominal dollars as | ||||||
24 | of the date that the quote is prepared and shall | ||||||
25 | include taxes, insurance, and other owner's costs, and | ||||||
26 | an assumed escalation in materials and labor beyond the |
| |||||||
| |||||||
1 | date as of which the operating and maintenance cost | ||||||
2 | quote is expressed. | ||||||
3 | (D) The facility cost report shall also include an | ||||||
4 | analysis of the initial clean coal facility's ability | ||||||
5 | to deliver power and energy into the applicable | ||||||
6 | regional transmission organization markets and an | ||||||
7 | analysis of the expected capacity factor for the | ||||||
8 | initial clean coal facility. | ||||||
9 | (E) Amounts paid to third parties unrelated to the | ||||||
10 | owner or owners of the initial clean coal facility to | ||||||
11 | prepare the core plant construction cost quote, | ||||||
12 | including the front end engineering and design study, | ||||||
13 | and the operating and maintenance cost quote will be | ||||||
14 | reimbursed through Coal Development Bonds. | ||||||
15 | (5) Re-powering and retrofitting coal-fired power | ||||||
16 | plants previously owned by Illinois utilities to qualify as | ||||||
17 | clean coal facilities. During the 2009 procurement | ||||||
18 | planning process and thereafter, the Agency and the | ||||||
19 | Commission shall consider sourcing agreements covering | ||||||
20 | electricity generated by power plants that were previously | ||||||
21 | owned by Illinois utilities and that have been or will be | ||||||
22 | converted into clean coal facilities, as defined by Section | ||||||
23 | 1-10 of this Act. Pursuant to such procurement planning | ||||||
24 | process, the owners of such facilities may propose to the | ||||||
25 | Agency sourcing agreements with utilities and alternative | ||||||
26 | retail electric suppliers required to comply with |
| |||||||
| |||||||
1 | subsection (d) of this Section and item (5) of subsection | ||||||
2 | (d) of Section 16-115 of the Public Utilities Act, covering | ||||||
3 | electricity generated by such facilities. In the case of | ||||||
4 | sourcing agreements that are power purchase agreements, | ||||||
5 | the contract price for electricity sales shall be | ||||||
6 | established on a cost of service basis. In the case of | ||||||
7 | sourcing agreements that are contracts for differences, | ||||||
8 | the contract price from which the reference price is | ||||||
9 | subtracted shall be established on a cost of service basis. | ||||||
10 | The Agency and the Commission may approve any such utility | ||||||
11 | sourcing agreements that do not exceed cost-based | ||||||
12 | benchmarks developed by the procurement administrator, in | ||||||
13 | consultation with the Commission staff, Agency staff and | ||||||
14 | the procurement monitor, subject to Commission review and | ||||||
15 | approval. The Commission shall have authority to inspect | ||||||
16 | all books and records associated with these clean coal | ||||||
17 | facilities during the term of any such contract. | ||||||
18 | (6) Costs incurred under this subsection (d) or | ||||||
19 | pursuant to a contract entered into under this subsection | ||||||
20 | (d) shall be deemed prudently incurred and reasonable in | ||||||
21 | amount and the electric utility shall be entitled to full | ||||||
22 | cost recovery pursuant to the tariffs filed with the | ||||||
23 | Commission. | ||||||
24 | (e) The draft procurement plans are subject to public | ||||||
25 | comment, as required by Section 16-111.5 of the Public | ||||||
26 | Utilities Act. |
| |||||||
| |||||||
1 | (f) The Agency shall submit the final procurement plan to | ||||||
2 | the Commission. The Agency shall revise a procurement plan if | ||||||
3 | the Commission determines that it does not meet the standards | ||||||
4 | set forth in Section 16-111.5 of the Public Utilities Act. | ||||||
5 | (g) The Agency shall assess fees to each affected utility | ||||||
6 | to recover the costs incurred in preparation of the annual | ||||||
7 | procurement plan for the utility. | ||||||
8 | (h) The Agency shall assess fees to each bidder to recover | ||||||
9 | the costs incurred in connection with a competitive procurement | ||||||
10 | process.
| ||||||
11 | (Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11; | ||||||
12 | 97-618, eff. 10-26-11; 97-658, eff. 1-13-12; 97-813, eff. | ||||||
13 | 7-13-12; 98-463, eff. 8-16-13.) | ||||||
14 | Section 10. The Public Utilities Act is amended by changing | ||||||
15 | Sections 8-101, 8-103, 8-104, 16-107, 16-108.5, 16-108.8, | ||||||
16 | 16-111.5, 16-111.5B, 16-111.7, 16-115D, and 19-140 and by | ||||||
17 | adding Section 16-111.5C as follows:
| ||||||
18 | (220 ILCS 5/8-101) (from Ch. 111 2/3, par. 8-101)
| ||||||
19 | Sec. 8-101. Duties of public utilities; nondiscrimination. | ||||||
20 | A
public utility shall furnish, provide, and maintain such
| ||||||
21 | service instrumentalities, equipment, and facilities as shall | ||||||
22 | promote the
safety, health, comfort, and convenience of its | ||||||
23 | patrons, employees, and
public and as shall be in all respects | ||||||
24 | adequate, efficient, just, and
reasonable.
|
| |||||||
| |||||||
1 | All rules and regulations made by a public utility | ||||||
2 | affecting or
pertaining to its charges or service to the public | ||||||
3 | shall be just and
reasonable.
| ||||||
4 | A public utility shall, upon reasonable notice, furnish to | ||||||
5 | all
persons who may apply therefor and be reasonably entitled | ||||||
6 | thereto, suitable
facilities and service, without | ||||||
7 | discrimination and without delay.
| ||||||
8 | Nothing in this Section shall be construed to prevent a | ||||||
9 | public utility from
accepting payment electronically or by the | ||||||
10 | use of a customer-preferred
financially accredited credit or | ||||||
11 | debit methodology.
| ||||||
12 | A public utility shall not discriminate against | ||||||
13 | technologies, regardless of generator, prime mover, or | ||||||
14 | inverter, when presented with an application for | ||||||
15 | interconnection of a distributed generation facility, | ||||||
16 | including without limitation a battery or energy storage | ||||||
17 | facility, that operates in parallel with the electric | ||||||
18 | distribution system. | ||||||
19 | (Source: P.A. 92-22, eff. 6-30-01.)
| ||||||
20 | (220 ILCS 5/8-103)
| ||||||
21 | Sec. 8-103. Energy efficiency and demand-response | ||||||
22 | measures. | ||||||
23 | (a) It is the policy of the State that electric utilities | ||||||
24 | are required to use cost-effective energy efficiency and | ||||||
25 | demand-response measures to reduce delivery load. Requiring |
| |||||||
| |||||||
1 | investment in cost-effective energy efficiency and | ||||||
2 | demand-response measures will reduce direct and indirect costs | ||||||
3 | to consumers by decreasing environmental impacts , by reducing | ||||||
4 | electricity prices in the regional power market, and by | ||||||
5 | avoiding or delaying the need for new generation, transmission, | ||||||
6 | and distribution infrastructure. It serves the public interest | ||||||
7 | to allow electric utilities to recover costs for reasonably and | ||||||
8 | prudently incurred expenses for energy efficiency and | ||||||
9 | demand-response measures. As used in this Section, | ||||||
10 | "cost-effective" means that the measures satisfy the total | ||||||
11 | resource cost test. The low-income measures described in | ||||||
12 | subsection (f)(4) of this Section shall not be required to meet | ||||||
13 | the total resource cost test. For purposes of this Section, the | ||||||
14 | terms "energy-efficiency", "demand-response", "electric | ||||||
15 | utility", and "total resource cost test" shall have the | ||||||
16 | meanings set forth in the Illinois Power Agency Act. For | ||||||
17 | purposes of this Section, the amount per kilowatthour means the | ||||||
18 | total amount paid for electric service expressed on a per | ||||||
19 | kilowatthour basis. For purposes of this Section, the total | ||||||
20 | amount paid for electric service includes without limitation | ||||||
21 | estimated amounts paid for supply, transmission, distribution, | ||||||
22 | surcharges, and add-on-taxes. | ||||||
23 | (b) Electric utilities shall implement cost-effective | ||||||
24 | energy efficiency measures to meet the following incremental | ||||||
25 | annual energy savings goals: | ||||||
26 | (1) 0.2% of energy delivered in the year commencing |
| |||||||
| |||||||
1 | June 1, 2008; | ||||||
2 | (2) 0.4% of energy delivered in the year commencing | ||||||
3 | June 1, 2009; | ||||||
4 | (3) 0.6% of energy delivered in the year commencing | ||||||
5 | June 1, 2010; | ||||||
6 | (4) 0.8% of energy delivered in the year commencing | ||||||
7 | June 1, 2011; | ||||||
8 | (5) 1% of energy delivered in the year commencing June | ||||||
9 | 1, 2012; | ||||||
10 | (6) 1.4% of energy delivered in the year commencing | ||||||
11 | June 1, 2013; | ||||||
12 | (7) 1.8% of energy delivered in the year commencing | ||||||
13 | June 1, 2014; and | ||||||
14 | (8) 2% of energy delivered in each the year commencing | ||||||
15 | June 1, 2015 and ending on December 31, 2017; and each year | ||||||
16 | thereafter. | ||||||
17 | (9) beginning in January 2018, an amount to be | ||||||
18 | determined by the Illinois Commerce Commission through the | ||||||
19 | process described in subsection (f) of this Section in | ||||||
20 | order to achieve a cumulative annual persisting reduction | ||||||
21 | in electric energy demand from efficiency measures | ||||||
22 | implemented as a result of utility programs from 2012 | ||||||
23 | through 2025 of 20%, relative to average annual electricity | ||||||
24 | sales from 2014 through 2016, by the year ending December | ||||||
25 | 31 2025; cumulative persisting annual reductions are the | ||||||
26 | reductions realized in a given year from measures installed |
| |||||||
| |||||||
1 | in either the that year or in previous years that are still | ||||||
2 | operational and providing savings in that year because they | ||||||
3 | have not yet reached the end of their useful life; and | ||||||
4 | After 2025, the incremental annual energy goal shall be an | ||||||
5 | amount to be determined by the Illinois Commerce Commission in | ||||||
6 | order to fully capture the cost-effective potential for | ||||||
7 | electricity savings as assessed by the Illinois Power Agency | ||||||
8 | under subsection (j-10) of this Section. | ||||||
9 | Electric utilities may comply with this subsection (b) by | ||||||
10 | meeting the annual incremental savings goal in the applicable | ||||||
11 | year or by showing that the total cumulative annual savings | ||||||
12 | within a 3-year planning period associated with measures | ||||||
13 | implemented after May 31, 2014 was equal to the sum of each | ||||||
14 | annual incremental savings requirement from May 31, 2014 | ||||||
15 | through the end of the applicable year. Beginning January 1, | ||||||
16 | 2018, electric utilities may comply by showing that the total | ||||||
17 | cumulative annual savings persisting the last year of the | ||||||
18 | applicable 4-year planning period was equal to the cumulative | ||||||
19 | persisting annual savings required in that year by the Illinois | ||||||
20 | Commerce Commission pursuant to the plans approved under | ||||||
21 | subsection (f) of this Section. Annually, beginning on March 1, | ||||||
22 | 2019, each participating utility shall file third-party | ||||||
23 | evaluations of the savings achieved in the preceding year. | ||||||
24 | Within 5 days after the filing, any person objecting to the | ||||||
25 | filing shall file an objection. Within 10 days after the | ||||||
26 | filing, the Commission shall determine whether a hearing is |
| |||||||
| |||||||
1 | necessary. The Commission shall enter its order confirming or | ||||||
2 | modifying the savings estimates within 90 days after the filing | ||||||
3 | date. | ||||||
4 | (c) Electric utilities shall implement cost-effective | ||||||
5 | demand-response measures to reduce peak demand by 0.1% over the | ||||||
6 | prior year for its delivery customers eligible retail | ||||||
7 | customers, as defined in Section 16-111.5 of this Act, and for | ||||||
8 | customers that elect hourly service from the utility pursuant | ||||||
9 | to Section 16-107 of this Act, provided those customers have | ||||||
10 | not been declared competitive. This requirement commences June | ||||||
11 | 1, 2008 and continues for 10 years . | ||||||
12 | (d) Notwithstanding the requirements of subsections (b) | ||||||
13 | and (c) of this Section, an electric utility shall reduce the | ||||||
14 | amount of energy efficiency and demand-response measures | ||||||
15 | implemented over a 3-year planning period by an amount | ||||||
16 | necessary to limit the estimated average annual increase in the | ||||||
17 | amounts paid by retail customers in connection with electric | ||||||
18 | service due to the cost of those measures to: | ||||||
19 | (1) in 2008, no more than 0.5% of the amount paid per | ||||||
20 | kilowatthour by those customers during the year ending May | ||||||
21 | 31, 2007; | ||||||
22 | (2) in 2009, the greater of an additional 0.5% of the | ||||||
23 | amount paid per kilowatthour by those customers during the | ||||||
24 | year ending May 31, 2008 or 1% of the amount paid per | ||||||
25 | kilowatthour by those customers during the year ending May | ||||||
26 | 31, 2007; |
| |||||||
| |||||||
1 | (3) in 2010, the greater of an additional 0.5% of the | ||||||
2 | amount paid per kilowatthour by those customers during the | ||||||
3 | year ending May 31, 2009 or 1.5% of the amount paid per | ||||||
4 | kilowatthour by those customers during the year ending May | ||||||
5 | 31, 2007; | ||||||
6 | (4) in 2011, the greater of an additional 0.5% of the | ||||||
7 | amount paid per kilowatthour by those customers during the | ||||||
8 | year ending May 31, 2010 or 2% of the amount paid per | ||||||
9 | kilowatthour by those customers during the year ending May | ||||||
10 | 31, 2007; and
| ||||||
11 | (5) in 2012 and in each subsequent year through 2017 | ||||||
12 | thereafter , the amount of energy efficiency and | ||||||
13 | demand-response measures implemented for any single year | ||||||
14 | shall be reduced by an amount necessary to limit the | ||||||
15 | estimated average net increase due to the cost of these | ||||||
16 | measures included in the amounts paid by eligible retail | ||||||
17 | customers in connection with electric service to no more | ||||||
18 | than the greater of 2.015% of the amount paid per | ||||||
19 | kilowatthour by those customers during the year ending May | ||||||
20 | 31, 2007 or the incremental amount per kilowatthour paid | ||||||
21 | for these measures in 2011.
| ||||||
22 | No later than June 30, 2011, the Commission shall review | ||||||
23 | the limitation on the amount of energy efficiency and | ||||||
24 | demand-response measures implemented pursuant to this Section | ||||||
25 | and report to the General Assembly its findings as to whether | ||||||
26 | that limitation unduly constrains the procurement of energy |
| |||||||
| |||||||
1 | efficiency and demand-response measures. | ||||||
2 | For utility efficiency programs offered on or after January | ||||||
3 | 2018, the amount of savings shall be limited only to the extent | ||||||
4 | necessary to ensure that the measures installed will, in the | ||||||
5 | aggregate, result in net benefits to customers when the full | ||||||
6 | costs of the efficiency programs are compared with the full | ||||||
7 | benefits, as defined in the total resource cost test. | ||||||
8 | (e) Electric utilities shall be responsible for overseeing | ||||||
9 | the design, development, and filing of energy efficiency and | ||||||
10 | demand-response plans with the Commission. Electric utilities | ||||||
11 | shall implement 100% of the demand-response measures in the | ||||||
12 | plans. Electric utilities shall implement 75% of the energy | ||||||
13 | efficiency measures approved by the Commission, and may, as | ||||||
14 | part of that implementation, outsource various aspects of | ||||||
15 | program development and implementation. The remaining 25% of | ||||||
16 | those energy efficiency measures approved by the Commission | ||||||
17 | shall be implemented by the Department of Commerce and Economic | ||||||
18 | Opportunity, and must be designed in conjunction with the | ||||||
19 | utility and the filing process. The Department may outsource | ||||||
20 | development and implementation of energy efficiency measures. | ||||||
21 | A minimum of 10% of the entire portfolio of cost-effective | ||||||
22 | energy efficiency measures shall be procured from units of | ||||||
23 | local government, municipal corporations, school districts, | ||||||
24 | and community college districts. A minimum of 12.5% of the | ||||||
25 | entire portfolio of cost-effective energy efficiency measures | ||||||
26 | shall be allocated to programs that serve low-income |
| |||||||
| |||||||
1 | residential customers. The Department shall coordinate the | ||||||
2 | implementation of these measures. As much as half of the | ||||||
3 | minimum low-income requirement may be met through energy | ||||||
4 | efficiency measures that result in savings related to fuels | ||||||
5 | other than electricity if necessary: | ||||||
6 | (1) to comprehensively capture treatment of efficiency | ||||||
7 | opportunities for low-income residential customers; | ||||||
8 | (2) to enable effective administration of low-income | ||||||
9 | programs; or | ||||||
10 | (3) to address limitations on availability of other | ||||||
11 | funding sources for efficiency measures to improve the | ||||||
12 | efficiency of use of natural gas, fuel oil, or other fuels | ||||||
13 | used by low-income residential customers. | ||||||
14 | The Department shall coordinate the implementation of these | ||||||
15 | measures. | ||||||
16 | The apportionment of the dollars to cover the costs to | ||||||
17 | implement the Department's share of the portfolio of energy | ||||||
18 | efficiency measures shall be made to the Department once the | ||||||
19 | Department has executed rebate agreements, grants, or | ||||||
20 | contracts for energy efficiency measures and provided | ||||||
21 | supporting documentation for those rebate agreements, grants, | ||||||
22 | and contracts to the utility. The Department is authorized to | ||||||
23 | adopt any rules necessary and prescribe procedures in order to | ||||||
24 | ensure compliance by applicants in carrying out the purposes of | ||||||
25 | rebate agreements for energy efficiency measures implemented | ||||||
26 | by the Department made under this Section. |
| |||||||
| |||||||
1 | The details of the measures implemented by the Department | ||||||
2 | shall be submitted by the Department to the Commission in | ||||||
3 | connection with the utility's filing regarding the energy | ||||||
4 | efficiency and demand-response measures that the utility | ||||||
5 | implements. | ||||||
6 | A utility providing approved energy efficiency and | ||||||
7 | demand-response measures in the State before December 31, 2017 | ||||||
8 | shall be permitted to recover costs of those measures through | ||||||
9 | an automatic adjustment clause tariff filed with and approved | ||||||
10 | by the Commission. The tariff shall be established outside the | ||||||
11 | context of a general rate case. Each year the Commission shall | ||||||
12 | initiate a review to reconcile any amounts collected with the | ||||||
13 | actual costs and to determine the required adjustment to the | ||||||
14 | annual tariff factor to match annual expenditures. Beginning | ||||||
15 | January 1, 2018, a participating utility providing approved | ||||||
16 | energy efficiency and demand-response measures in the State | ||||||
17 | that has elected to be subject to Section 16-108.5 of the | ||||||
18 | Public Utilities Act may recover the costs of those measures as | ||||||
19 | part of its cost of service in its performance-based formula | ||||||
20 | rate as provided in paragraph (1) of subsection (c) of Section | ||||||
21 | 16-108.5. | ||||||
22 | Each utility shall include, in its recovery of costs, the | ||||||
23 | costs estimated for both the utility's and the Department's | ||||||
24 | implementation of energy efficiency and demand-response | ||||||
25 | measures. Costs collected by the utility for measures | ||||||
26 | implemented by the Department shall be submitted to the |
| |||||||
| |||||||
1 | Department pursuant to Section 605-323 of the Civil | ||||||
2 | Administrative Code of Illinois, shall be deposited into the | ||||||
3 | Energy Efficiency Portfolio Standards Fund, and shall be used | ||||||
4 | by the Department solely for the purpose of implementing these | ||||||
5 | measures. A utility shall not be required to advance any moneys | ||||||
6 | to the Department but only to forward such funds as it has | ||||||
7 | collected. The Department shall report to the Commission on an | ||||||
8 | annual basis regarding the costs actually incurred by the | ||||||
9 | Department in the implementation of the measures. Any changes | ||||||
10 | to the costs of energy efficiency measures as a result of plan | ||||||
11 | modifications shall be appropriately reflected in amounts | ||||||
12 | recovered by the utility and turned over to the Department. | ||||||
13 | The portfolio of measures, administered by both the | ||||||
14 | utilities and the Department, shall, in combination, be | ||||||
15 | designed to achieve the annual savings targets described in | ||||||
16 | subsections (b) and (c) of this Section, as modified by | ||||||
17 | subsection (d) of this Section. | ||||||
18 | The utility and the Department shall agree upon a | ||||||
19 | reasonable portfolio of measures and determine the measurable | ||||||
20 | corresponding percentage of the savings goals associated with | ||||||
21 | measures implemented by the utility or Department. | ||||||
22 | No utility shall be assessed a penalty under subsection (f) | ||||||
23 | of this Section for failure to make a timely filing if that | ||||||
24 | failure is the result of a lack of agreement with the | ||||||
25 | Department with respect to the allocation of responsibilities | ||||||
26 | or related costs or target assignments. In that case, the |
| |||||||
| |||||||
1 | Department and the utility shall file their respective plans | ||||||
2 | with the Commission and the Commission shall determine an | ||||||
3 | appropriate division of measures and programs that meets the | ||||||
4 | requirements of this Section. | ||||||
5 | If the Department is unable to meet incremental annual | ||||||
6 | performance goals for the portion of the portfolio implemented | ||||||
7 | by the Department, then the utility and the Department shall | ||||||
8 | jointly submit a modified filing to the Commission explaining | ||||||
9 | the performance shortfall and recommending an appropriate | ||||||
10 | course going forward, including any program modifications that | ||||||
11 | may be appropriate in light of the evaluations conducted under | ||||||
12 | item (7) of subsection (f) of this Section. In this case, the | ||||||
13 | utility obligation to collect the Department's costs and turn | ||||||
14 | over those funds to the Department under this subsection (e) | ||||||
15 | shall continue only if the Commission approves the | ||||||
16 | modifications to the plan proposed by the Department. | ||||||
17 | (f) No later than November 15, 2007, each electric utility | ||||||
18 | shall file an energy efficiency and demand-response plan with | ||||||
19 | the Commission to meet the energy efficiency and | ||||||
20 | demand-response standards for 2008 through 2010. No later than | ||||||
21 | October 1, 2010, each electric utility shall file an energy | ||||||
22 | efficiency and demand-response plan with the Commission to meet | ||||||
23 | the energy efficiency and demand-response standards for 2011 | ||||||
24 | through 2013. By September 1, 2013, each electric utility shall | ||||||
25 | file an energy efficiency and demand-response plan for 2014 | ||||||
26 | through 2017. By January 1, 2016, the Illinois Power Agency |
| |||||||
| |||||||
1 | shall publish a draft statewide energy efficiency potential | ||||||
2 | study that assesses the technical, economic, and maximum | ||||||
3 | cost-effective achievable potential for energy efficiency for | ||||||
4 | each electric utility service territory from 2018 through 2021 | ||||||
5 | and from 2022 through 2025. The Agency shall seek input from | ||||||
6 | stakeholders in advance of conducting the study. After the | ||||||
7 | draft study is published, the Agency shall accept public | ||||||
8 | comments on the study through March 1, 2016 and shall transmit | ||||||
9 | a final proposed study to the Commission by April 15, 2017. The | ||||||
10 | Commission shall approve the study or approve with | ||||||
11 | modifications by June 1, 2016. By January 1, 2017, each | ||||||
12 | electric utility and the Department shall file an energy | ||||||
13 | efficiency plan for the period beginning January 1, 2018 | ||||||
14 | through December 31, 2021 that seeks to achieve a cumulative | ||||||
15 | persisting annual reduction in electricity demand in 2021, from | ||||||
16 | efficiency measures installed as a result of its programs from | ||||||
17 | 2012 through 2021, of at least 12% compared to average annual | ||||||
18 | electricity sales from 2014 through 2016, unless such levels | ||||||
19 | have been clearly shown by the Illinois Power Agency's | ||||||
20 | potential study to not be cost-effective or achievable, in | ||||||
21 | which case the plans should be designed to capture all of the | ||||||
22 | cost-effective potential for energy savings identified as | ||||||
23 | achievable in the potential study completed by the Illinois | ||||||
24 | Power Agency. By January 1, 2020 and every 4 years thereafter, | ||||||
25 | the Illinois Power Agency shall publish a second draft | ||||||
26 | statewide energy efficiency potential study updating its |
| |||||||
| |||||||
1 | assessment of the cost-effective achievable potential for | ||||||
2 | energy efficiency for each electric utility service territory | ||||||
3 | from 2022 through 2025. The agency shall seek input from | ||||||
4 | stakeholders in advance of conducting the study. The agency | ||||||
5 | will accept public comments on the draft study through March 1, | ||||||
6 | 2020 and shall transmit a final proposed study to the | ||||||
7 | Commission by April 15, 2020. The Commission shall approve the | ||||||
8 | study or approve with modifications by June 1, 2020. By January | ||||||
9 | 1, 2021, each electric utility and the Department shall file an | ||||||
10 | energy efficiency plan for the period beginning January 1, 2022 | ||||||
11 | through December 31, 2025 that seeks to achieve a cumulative | ||||||
12 | persisting annual reduction in electricity demand in 2025, from | ||||||
13 | efficiency measures installed as a result of its programs from | ||||||
14 | 2012 through 2025, of at least 20% compared to average annual | ||||||
15 | electricity sales from 2014 through 2016, unless such levels | ||||||
16 | have been clearly shown by the Illinois Power Agency's study to | ||||||
17 | not be cost-effective or achievable, in which case the plans | ||||||
18 | should be designed to capture all of the cost-effective | ||||||
19 | potential for energy savings identified in the potential study | ||||||
20 | completed by the Illinois Power Agency. On January 1, 2024 and | ||||||
21 | every 4 years thereafter, each electric utility and the | ||||||
22 | Department shall file an energy efficiency plan covering a | ||||||
23 | 4-year period beginning January 1 of the following year. Every | ||||||
24 | 3 years thereafter, each electric utility shall file, no later | ||||||
25 | than September 1, an energy efficiency and demand-response plan | ||||||
26 | with the Commission. If a utility does not file such a plan by |
| |||||||
| |||||||
1 | the deadlines described in this Section September 1 of an | ||||||
2 | applicable year , it shall face a penalty of $100,000 per day | ||||||
3 | until the plan is filed. Each utility's plan shall set forth | ||||||
4 | the utility's proposals to meet the utility's portion of the | ||||||
5 | energy efficiency standards identified in subsection (b) and | ||||||
6 | the demand-response standards identified in subsection (c) of | ||||||
7 | this Section as modified by subsections (d) and (e), taking | ||||||
8 | into account the unique circumstances of the utility's service | ||||||
9 | territory. The Commission shall seek public comment on the | ||||||
10 | utility's plan and shall issue an order approving or | ||||||
11 | disapproving each plan within 6 5 months after its submission. | ||||||
12 | If the Commission disapproves a plan, the Commission shall, | ||||||
13 | within 30 days, describe in detail the reasons for the | ||||||
14 | disapproval and describe a path by which the utility may file a | ||||||
15 | revised draft of the plan to address the Commission's concerns | ||||||
16 | satisfactorily. If the utility does not refile with the | ||||||
17 | Commission within 60 days, the utility shall be subject to | ||||||
18 | penalties at a rate of $100,000 per day until the plan is | ||||||
19 | filed. This process shall continue, and penalties shall accrue, | ||||||
20 | until the utility has successfully filed a portfolio of energy | ||||||
21 | efficiency and demand-response measures. Penalties shall be | ||||||
22 | deposited into the Energy Efficiency Trust Fund. In submitting | ||||||
23 | proposed energy efficiency and demand-response plans and | ||||||
24 | funding levels to meet the savings goals adopted by this Act | ||||||
25 | the utility shall: | ||||||
26 | (1) Demonstrate that its proposed energy efficiency |
| |||||||
| |||||||
1 | and demand-response measures will achieve the requirements | ||||||
2 | that are identified in subsections (b) and (c) of this | ||||||
3 | Section, as modified by subsections (d) and (e). | ||||||
4 | (2) Present specific proposals to implement new | ||||||
5 | building and appliance standards that have been placed into | ||||||
6 | effect. | ||||||
7 | (3) Present estimates of the total amount paid for | ||||||
8 | electric service expressed on a per kilowatthour basis | ||||||
9 | associated with the proposed portfolio of measures | ||||||
10 | designed to meet the requirements that are identified in | ||||||
11 | subsections (b) and (c) of this Section, as modified by | ||||||
12 | subsections (d) and (e). | ||||||
13 | (4) Coordinate with the Department to present a | ||||||
14 | portfolio of energy efficiency measures proportionate to | ||||||
15 | the share of total annual utility revenues in Illinois from | ||||||
16 | households at or below 150% of the poverty level. The | ||||||
17 | energy efficiency programs shall be targeted to households | ||||||
18 | with incomes at or below 80% of area median income. | ||||||
19 | (5) Demonstrate that its overall portfolio of energy | ||||||
20 | efficiency and demand-response measures, not including | ||||||
21 | programs covered by item (4) of this subsection (f), are | ||||||
22 | cost-effective using the total resource cost test and | ||||||
23 | represent a diverse cross-section of opportunities for | ||||||
24 | customers of all rate classes to participate in the | ||||||
25 | programs. | ||||||
26 | (5.5) Include meaningful opportunities for third-party |
| |||||||
| |||||||
1 | energy efficiency businesses to deliver energy savings. | ||||||
2 | (5.10) Ensure that the portfolio as a whole, including | ||||||
3 | the portion administered by the Department of Commerce and | ||||||
4 | Economic Opportunity and programs offered by third-party | ||||||
5 | energy service providers, include opportunities for a | ||||||
6 | diverse set of building types, including both program | ||||||
7 | offering tailored to the needs of specific building types | ||||||
8 | and opportunities to source energy efficiency savings from | ||||||
9 | building, including, but not limited to, hospitals, health | ||||||
10 | care facilities, long-term care facilities, units of local | ||||||
11 | government, school districts, park districts, cultural | ||||||
12 | institutions, museums, facilities licensed under the Child | ||||||
13 | Care Act of 1969, preschools, churches and houses of | ||||||
14 | worship, public universities, private colleges, community | ||||||
15 | college districts, and wastewater and drinking water | ||||||
16 | treatment plant agencies and operators. | ||||||
17 | (5.15) Demonstrate that the utility consulted with | ||||||
18 | interested stakeholders, including customer groups, | ||||||
19 | environmental advocates, Commission staff, the Illinois | ||||||
20 | Commission on Environmental Justice, and other entities | ||||||
21 | who have participated in Commission proceedings to | ||||||
22 | consider the approval of past energy efficiency plans under | ||||||
23 | this Section and that those entities concerns and input | ||||||
24 | have been taken into consideration during the development | ||||||
25 | of the proposed plan. | ||||||
26 | (5.20) Ensure that the portfolio maximizes the use of |
| |||||||
| |||||||
1 | cost-effective measures with measure lives of 10 years or | ||||||
2 | greater. | ||||||
3 | (6) Include a proposed cost-recovery tariff mechanism | ||||||
4 | to fund the proposed energy efficiency and demand-response | ||||||
5 | measures and to ensure the recovery of the prudently and | ||||||
6 | reasonably incurred costs of Commission-approved programs. | ||||||
7 | Beginning in 2018, a participating utility, as defined in | ||||||
8 | Section 16-108.5, providing approved energy efficiency and | ||||||
9 | demand-response measures in the State shall recover the | ||||||
10 | costs of those measures as part of its performance-based | ||||||
11 | formula rate as provided in paragraph (1) of subsection (c) | ||||||
12 | of Section 16-108.5. | ||||||
13 | (7) Provide for an annual independent evaluation of the | ||||||
14 | performance of the cost-effectiveness of the utility's | ||||||
15 | portfolio of measures and the Department's portfolio of | ||||||
16 | measures, as well as a full review of the full multi-year | ||||||
17 | portfolio 3-year results of the broader net program impacts | ||||||
18 | and , to the extent practical, for adjustment of the | ||||||
19 | measures on a going-forward basis as a result of the | ||||||
20 | evaluations. The resources dedicated to evaluation shall | ||||||
21 | not exceed 3% of portfolio resources in any given year. The | ||||||
22 | evaluations shall be performed by independent experts that | ||||||
23 | are retained for this purpose by the Illinois Commerce | ||||||
24 | Commission. | ||||||
25 | (g) No more than 3% of energy efficiency and | ||||||
26 | demand-response program revenue may be allocated for research, |
| |||||||
| |||||||
1 | development, or pilot deployment of new equipment or measures | ||||||
2 | demonstration of breakthrough equipment and devices . | ||||||
3 | (h) This Section does not apply to an electric utility that | ||||||
4 | on December 31, 2005 provided electric service to fewer than | ||||||
5 | 100,000 customers in Illinois. | ||||||
6 | (i) If, after 2 years, an electric utility fails to meet | ||||||
7 | the efficiency standard specified in subsection (b) of this | ||||||
8 | Section, as modified by subsections (d) and (e), it shall make | ||||||
9 | a contribution to the Low-Income Home Energy Assistance | ||||||
10 | Program. The combined total liability for failure to meet the | ||||||
11 | goal shall be $1,000,000, which shall be assessed as follows: a | ||||||
12 | large electric utility shall pay $665,000, and a medium | ||||||
13 | electric utility shall pay $335,000. If, after 3 years, an | ||||||
14 | electric utility fails to meet the efficiency standard | ||||||
15 | specified in subsection (b) of this Section, as modified by | ||||||
16 | subsections (d) and (e), it shall make a contribution to the | ||||||
17 | Low-Income Home Energy Assistance Program. The combined total | ||||||
18 | liability for failure to meet the goal shall be $1,000,000, | ||||||
19 | which shall be assessed as follows: a large electric utility | ||||||
20 | shall pay $665,000, and a medium electric utility shall pay | ||||||
21 | $335,000. In addition, the responsibility for implementing the | ||||||
22 | energy efficiency measures of the utility making the payment | ||||||
23 | shall be transferred to the Illinois Power Agency if, after 3 | ||||||
24 | years, or in any subsequent 3-year period, the utility fails to | ||||||
25 | meet the efficiency standard specified in subsection (b) of | ||||||
26 | this Section, as modified by subsections (d) and (e). The |
| |||||||
| |||||||
1 | Agency shall implement a competitive procurement program to | ||||||
2 | procure resources necessary to meet the standards specified in | ||||||
3 | this Section as modified by subsections (d) and (e), with costs | ||||||
4 | for those resources to be recovered in the same manner as | ||||||
5 | products purchased through the procurement plan as provided in | ||||||
6 | Section 16-111.5. The Director shall implement this | ||||||
7 | requirement in connection with the procurement plan as provided | ||||||
8 | in Section 16-111.5. | ||||||
9 | For purposes of this Section, (i) a "large electric | ||||||
10 | utility" is an electric utility that, on December 31, 2005, | ||||||
11 | served more than 2,000,000 electric customers in Illinois; (ii) | ||||||
12 | a "medium electric utility" is an electric utility that, on | ||||||
13 | December 31, 2005, served 2,000,000 or fewer but more than | ||||||
14 | 100,000 electric customers in Illinois; and (iii) Illinois | ||||||
15 | electric utilities that are affiliated by virtue of a common | ||||||
16 | parent company are considered a single electric utility. | ||||||
17 | (j) If, after 3 years, or any subsequent 3-year period, the | ||||||
18 | Department fails to implement the Department's share of energy | ||||||
19 | efficiency measures required by the standards in subsection | ||||||
20 | (b), then the Illinois Power Agency may assume responsibility | ||||||
21 | for and control of the Department's share of the required | ||||||
22 | energy efficiency measures. The Agency shall implement a | ||||||
23 | competitive procurement program to procure resources necessary | ||||||
24 | to meet the standards specified in this Section, with the costs | ||||||
25 | of these resources to be recovered in the same manner as | ||||||
26 | provided for the Department in this Section.
|
| |||||||
| |||||||
1 | (j-5) By June 1, 2016 and every 4 years thereafter, the | ||||||
2 | Department of Commerce and Economic Opportunity shall perform | ||||||
3 | and make publicly available a study assessing the job creation | ||||||
4 | impact of implementation of energy efficiency programs and | ||||||
5 | policies in Illinois. The Department shall seek input from | ||||||
6 | stakeholders in advance of conducting the study. | ||||||
7 | (j-10) For the purposes of conducting the energy efficiency | ||||||
8 | potential studies required in subsection (f) of this Section, | ||||||
9 | the Illinois Power Agency shall: | ||||||
10 | (1) base estimates of the portion of economic potential | ||||||
11 | that could be achieved on document experience of the most | ||||||
12 | successful programs in other jurisdictions in each of the | ||||||
13 | specific efficiency markets being analyzed; | ||||||
14 | (2) include impacts from emergence of new technologies | ||||||
15 | that can reasonably be expected to emerge after the study | ||||||
16 | is conducted but during the period covered by the study; | ||||||
17 | (3) account for potential for measure costs to decline | ||||||
18 | as volumes of sales increase; | ||||||
19 | (4) account for economies that could be achieved | ||||||
20 | through joint electric-gas program delivery or | ||||||
21 | coordination; | ||||||
22 | (5) include estimates of potential from behavioral | ||||||
23 | changes and process improvements (in addition to | ||||||
24 | technologies); | ||||||
25 | (6) include estimates of impacts from fuel-switching | ||||||
26 | measures; and |
| |||||||
| |||||||
1 | (7) include estimates of impacts from either | ||||||
2 | supporting adoption of stricter building codes or | ||||||
3 | equipment standards or better compliance with existing | ||||||
4 | codes and standards. | ||||||
5 | (j-15) The Commission shall issue an order extending the | ||||||
6 | programs approved under subsection (f) of this Section for the | ||||||
7 | period beginning June 1, 2014 and ending May 31, 2017 so that | ||||||
8 | these programs continue to be offered until December 31, 2017. | ||||||
9 | The savings goals and budgets associated with these approved | ||||||
10 | programs shall be modified to ensure that the programs will | ||||||
11 | continue to operate and acquire additional savings during this | ||||||
12 | period and under the same cost-effectiveness requirements | ||||||
13 | applicable when the programs were approved. | ||||||
14 | (k) No electric utility shall be deemed to have failed to | ||||||
15 | meet the energy efficiency standards to the extent any such | ||||||
16 | failure is due to a failure of the Department or the Agency.
| ||||||
17 | (l) In meeting the energy efficiency requirements of this | ||||||
18 | Section, to the extent feasible and consistent with State and | ||||||
19 | federal law, the energy efficiency credit procurements, | ||||||
20 | declining block solar program, and community solar program | ||||||
21 | should provide employment opportunities for all segments of the | ||||||
22 | population and workforce, including minority-owned and | ||||||
23 | female-owned business enterprises, and shall not, consistent | ||||||
24 | with State and federal law, discriminate based on race or | ||||||
25 | socioeconomic status. | ||||||
26 | (Source: P.A. 97-616, eff. 10-26-11; 97-841, eff. 7-20-12; |
| |||||||
| |||||||
1 | 98-90, eff. 7-15-13.)
| ||||||
2 | (220 ILCS 5/8-104)
| ||||||
3 | Sec. 8-104. Natural gas energy efficiency programs. | ||||||
4 | (a) It is the policy of the State that natural gas | ||||||
5 | utilities and the Department of Commerce and Economic | ||||||
6 | Opportunity are required to use cost-effective energy | ||||||
7 | efficiency to reduce direct and indirect costs to consumers. It | ||||||
8 | serves the public interest to allow natural gas utilities to | ||||||
9 | recover costs for reasonably and prudently incurred expenses | ||||||
10 | for cost-effective energy efficiency measures. | ||||||
11 | (b) For purposes of this Section, "energy efficiency" means | ||||||
12 | measures that reduce the amount of energy required to achieve a | ||||||
13 | given end use. "Energy efficiency" also includes measures that | ||||||
14 | reduce the total Btus of electricity and natural gas needed to | ||||||
15 | meet the end use or uses. "Cost-effective" means that the | ||||||
16 | measures satisfy the total resource cost test , which, for | ||||||
17 | purposes of this Section, has the meaning given to that term in | ||||||
18 | Section 1-10 of the Illinois Power Agency Act. means a standard | ||||||
19 | that is met if, for an investment in energy efficiency, the | ||||||
20 | benefit-cost ratio is greater than one. The benefit-cost ratio | ||||||
21 | is the ratio of the net present value of the total benefits of | ||||||
22 | the measures to the net present value of the total costs as | ||||||
23 | calculated over the lifetime of the measures. The total | ||||||
24 | resource cost test compares the sum of avoided natural gas | ||||||
25 | utility costs, representing the benefits that accrue to the |
| |||||||
| |||||||
1 | system and the participant in the delivery of those efficiency | ||||||
2 | measures, as well as other quantifiable societal benefits, | ||||||
3 | including avoided electric utility costs, to the sum of all | ||||||
4 | incremental costs of end use measures (including both utility | ||||||
5 | and participant contributions), plus costs to administer, | ||||||
6 | deliver, and evaluate each demand-side measure, to quantify the | ||||||
7 | net savings obtained by substituting demand-side measures for | ||||||
8 | supply resources. In calculating avoided costs, reasonable | ||||||
9 | estimates shall be included for financial costs likely to be | ||||||
10 | imposed by future regulation of emissions of greenhouse gases. | ||||||
11 | The low-income programs described in item (4) of subsection (f) | ||||||
12 | of this Section shall not be required to meet the total | ||||||
13 | resource cost test. | ||||||
14 | (c) Natural gas utilities shall implement cost-effective | ||||||
15 | energy efficiency measures to meet at least the following | ||||||
16 | natural gas savings requirements, which shall be based upon the | ||||||
17 | total amount of gas delivered to retail customers, other than | ||||||
18 | the customers described in subsection (m) of this Section, | ||||||
19 | during calendar year 2009 multiplied by the applicable | ||||||
20 | percentage. Natural gas utilities may comply with this Section | ||||||
21 | by meeting the annual incremental savings goal in the | ||||||
22 | applicable year or by showing that total cumulative annual | ||||||
23 | savings within a 3-year planning period associated with | ||||||
24 | measures implemented after May 31, 2011 were equal to the sum | ||||||
25 | of each annual incremental savings requirement from May 31, | ||||||
26 | 2011 through the end of the applicable year: |
| |||||||
| |||||||
1 | (1) 0.2% by May 31, 2012; | ||||||
2 | (2) an additional 0.4% by May 31, 2013, increasing | ||||||
3 | total savings to .6%; | ||||||
4 | (3) an additional 0.6% by May 31, 2014, increasing | ||||||
5 | total savings to 1.2%; | ||||||
6 | (4) an additional 0.8% by May 31, 2015, increasing | ||||||
7 | total savings to 2.0%; | ||||||
8 | (5) an additional 1% by May 31, 2016, increasing total | ||||||
9 | savings to 3.0%; | ||||||
10 | (6) an additional 1.2% by May 31, 2017, increasing | ||||||
11 | total savings to 4.2%; | ||||||
12 | (7) an additional 1.4% by May 31, 2018, increasing | ||||||
13 | total savings to 5.6%; | ||||||
14 | (8) an additional 1.5% by May 31, 2019, increasing | ||||||
15 | total savings to 7.1%; and | ||||||
16 | (9) an additional 1.5% in each 12-month period | ||||||
17 | thereafter. | ||||||
18 | (d) Notwithstanding the requirements of subsection (c) of | ||||||
19 | this Section, a natural gas utility shall limit the amount of | ||||||
20 | energy efficiency implemented in any 3-year reporting period | ||||||
21 | established by subsection (f) of Section 8-104 of this Act, by | ||||||
22 | an amount necessary to limit the estimated average increase in | ||||||
23 | the amounts paid by retail customers in connection with natural | ||||||
24 | gas service to no more than 2% in the applicable 3-year | ||||||
25 | reporting period. The energy savings requirements in | ||||||
26 | subsection (c) of this Section may be reduced by the Commission |
| |||||||
| |||||||
1 | for the subject plan, if the utility demonstrates by | ||||||
2 | substantial evidence that it is highly unlikely that the | ||||||
3 | requirements could be achieved without exceeding the | ||||||
4 | applicable spending limits in any 3-year reporting period. No | ||||||
5 | later than September 1, 2013, the Commission shall review the | ||||||
6 | limitation on the amount of energy efficiency measures | ||||||
7 | implemented pursuant to this Section and report to the General | ||||||
8 | Assembly, in the report required by subsection (k) of this | ||||||
9 | Section, its findings as to whether that limitation unduly | ||||||
10 | constrains the procurement of energy efficiency measures. | ||||||
11 | (e) Natural gas utilities shall be responsible for | ||||||
12 | overseeing the design, development, and filing of their | ||||||
13 | efficiency plans with the Commission. The utility shall utilize | ||||||
14 | 75% of the available funding associated with energy efficiency | ||||||
15 | programs approved by the Commission, and may outsource various | ||||||
16 | aspects of program development and implementation. The | ||||||
17 | remaining 25% of available funding shall be used by the | ||||||
18 | Department of Commerce and Economic Opportunity to implement | ||||||
19 | energy efficiency measures that achieve no less than 20% of the | ||||||
20 | requirements of subsection (c) of this Section. Such measures | ||||||
21 | shall be designed in conjunction with the utility and approved | ||||||
22 | by the Commission. The Department may outsource development and | ||||||
23 | implementation of energy efficiency measures. A minimum of 10% | ||||||
24 | of the entire portfolio of cost-effective energy efficiency | ||||||
25 | measures shall be procured from local government, municipal | ||||||
26 | corporations, school districts, and community college |
| |||||||
| |||||||
1 | districts. Five percent of the entire portfolio of | ||||||
2 | cost-effective energy efficiency measures may be granted to | ||||||
3 | local government and municipal corporations for market | ||||||
4 | transformation initiatives. The Department shall coordinate | ||||||
5 | the implementation of these measures and shall integrate | ||||||
6 | delivery of natural gas efficiency programs with electric | ||||||
7 | efficiency programs delivered pursuant to Section 8-103 of this | ||||||
8 | Act, unless the Department can show that integration is not | ||||||
9 | feasible. | ||||||
10 | The apportionment of the dollars to cover the costs to | ||||||
11 | implement the Department's share of the portfolio of energy | ||||||
12 | efficiency measures shall be made to the Department once the | ||||||
13 | Department has executed rebate agreements, grants, or | ||||||
14 | contracts for energy efficiency measures and provided | ||||||
15 | supporting documentation for those rebate agreements, grants, | ||||||
16 | and contracts to the utility. The Department is authorized to | ||||||
17 | adopt any rules necessary and prescribe procedures in order to | ||||||
18 | ensure compliance by applicants in carrying out the purposes of | ||||||
19 | rebate agreements for energy efficiency measures implemented | ||||||
20 | by the Department made under this Section. | ||||||
21 | The details of the measures implemented by the Department | ||||||
22 | shall be submitted by the Department to the Commission in | ||||||
23 | connection with the utility's filing regarding the energy | ||||||
24 | efficiency measures that the utility implements. | ||||||
25 | A utility providing approved energy efficiency measures in | ||||||
26 | this State shall be permitted to recover costs of those |
| |||||||
| |||||||
1 | measures through an automatic adjustment clause tariff filed | ||||||
2 | with and approved by the Commission. The tariff shall be | ||||||
3 | established outside the context of a general rate case and | ||||||
4 | shall be applicable to the utility's customers other than the | ||||||
5 | customers described in subsection (m) of this Section. Each | ||||||
6 | year the Commission shall initiate a review to reconcile any | ||||||
7 | amounts collected with the actual costs and to determine the | ||||||
8 | required adjustment to the annual tariff factor to match annual | ||||||
9 | expenditures. | ||||||
10 | Each utility shall include, in its recovery of costs, the | ||||||
11 | costs estimated for both the utility's and the Department's | ||||||
12 | implementation of energy efficiency measures. Costs collected | ||||||
13 | by the utility for measures implemented by the Department shall | ||||||
14 | be submitted to the Department pursuant to Section 605-323 of | ||||||
15 | the Civil Administrative Code of Illinois, shall be deposited | ||||||
16 | into the Energy Efficiency Portfolio Standards Fund, and shall | ||||||
17 | be used by the Department solely for the purpose of | ||||||
18 | implementing these measures. A utility shall not be required to | ||||||
19 | advance any moneys to the Department but only to forward such | ||||||
20 | funds as it has collected. The Department shall report to the | ||||||
21 | Commission on an annual basis regarding the costs actually | ||||||
22 | incurred by the Department in the implementation of the | ||||||
23 | measures. Any changes to the costs of energy efficiency | ||||||
24 | measures as a result of plan modifications shall be | ||||||
25 | appropriately reflected in amounts recovered by the utility and | ||||||
26 | turned over to the Department. |
| |||||||
| |||||||
1 | The portfolio of measures, administered by both the | ||||||
2 | utilities and the Department, shall, in combination, be | ||||||
3 | designed to achieve the annual energy savings requirements set | ||||||
4 | forth in subsection (c) of this Section, as modified by | ||||||
5 | subsection (d) of this Section. | ||||||
6 | The utility and the Department shall agree upon a | ||||||
7 | reasonable portfolio of measures and determine the measurable | ||||||
8 | corresponding percentage of the savings goals associated with | ||||||
9 | measures implemented by the Department. | ||||||
10 | No utility shall be assessed a penalty under subsection (f) | ||||||
11 | of this Section for failure to make a timely filing if that | ||||||
12 | failure is the result of a lack of agreement with the | ||||||
13 | Department with respect to the allocation of responsibilities | ||||||
14 | or related costs or target assignments. In that case, the | ||||||
15 | Department and the utility shall file their respective plans | ||||||
16 | with the Commission and the Commission shall determine an | ||||||
17 | appropriate division of measures and programs that meets the | ||||||
18 | requirements of this Section. | ||||||
19 | If the Department is unable to meet performance | ||||||
20 | requirements for the portion of the portfolio implemented by | ||||||
21 | the Department, then the utility and the Department shall | ||||||
22 | jointly submit a modified filing to the Commission explaining | ||||||
23 | the performance shortfall and recommending an appropriate | ||||||
24 | course going forward, including any program modifications that | ||||||
25 | may be appropriate in light of the evaluations conducted under | ||||||
26 | item (8) of subsection (f) of this Section. In this case, the |
| |||||||
| |||||||
1 | utility obligation to collect the Department's costs and turn | ||||||
2 | over those funds to the Department under this subsection (e) | ||||||
3 | shall continue only if the Commission approves the | ||||||
4 | modifications to the plan proposed by the Department. | ||||||
5 | (f) No later than October 1, 2010, each gas utility shall | ||||||
6 | file an energy efficiency plan with the Commission to meet the | ||||||
7 | energy efficiency standards through May 31, 2014. Every 3 years | ||||||
8 | thereafter, each utility shall file, no later than October 1, | ||||||
9 | an energy efficiency plan with the Commission , except that for | ||||||
10 | plans covering 2018 through 2025, each gas utility shall file | ||||||
11 | plans on the same schedule as is required for the electric | ||||||
12 | utilities under subsection (f) of Section 8-103 of this Act . If | ||||||
13 | a utility does not file such a plan by the statutory deadline | ||||||
14 | described in this Section October 1 of the applicable year , | ||||||
15 | then it shall face a penalty of $100,000 per day until the plan | ||||||
16 | is filed. Each utility's plan shall set forth the utility's | ||||||
17 | proposals to meet the utility's portion of the energy | ||||||
18 | efficiency standards identified in subsection (c) of this | ||||||
19 | Section, as modified by subsection (d) of this Section, taking | ||||||
20 | into account the unique circumstances of the utility's service | ||||||
21 | territory. The Commission shall seek public comment on the | ||||||
22 | utility's plan and shall issue an order approving or | ||||||
23 | disapproving each plan. If the Commission disapproves a plan, | ||||||
24 | the Commission shall, within 30 days, describe in detail the | ||||||
25 | reasons for the disapproval and describe a path by which the | ||||||
26 | utility may file a revised draft of the plan to address the |
| |||||||
| |||||||
1 | Commission's concerns satisfactorily. If the utility does not | ||||||
2 | refile with the Commission within 60 days after the | ||||||
3 | disapproval, the utility shall be subject to penalties at a | ||||||
4 | rate of $100,000 per day until the plan is filed. This process | ||||||
5 | shall continue, and penalties shall accrue, until the utility | ||||||
6 | has successfully filed a portfolio of energy efficiency | ||||||
7 | measures. Penalties shall be deposited into the Energy | ||||||
8 | Efficiency Trust Fund and the cost of any such penalties may | ||||||
9 | not be recovered from ratepayers. In submitting proposed energy | ||||||
10 | efficiency plans and funding levels to meet the savings goals | ||||||
11 | adopted by this Act the utility shall: | ||||||
12 | (1) Demonstrate that its proposed energy efficiency | ||||||
13 | measures will achieve the requirements that are identified | ||||||
14 | in subsection (c) of this Section, as modified by | ||||||
15 | subsection (d) of this Section. | ||||||
16 | (2) Present specific proposals to implement new | ||||||
17 | building and appliance standards that have been placed into | ||||||
18 | effect. | ||||||
19 | (3) Present estimates of the total amount paid for gas | ||||||
20 | service expressed on a per therm basis associated with the | ||||||
21 | proposed portfolio of measures designed to meet the | ||||||
22 | requirements that are identified in subsection (c) of this | ||||||
23 | Section, as modified by subsection (d) of this Section. | ||||||
24 | (4) Coordinate with the Department to present a | ||||||
25 | portfolio of energy efficiency measures proportionate to | ||||||
26 | the share of total annual utility revenues in Illinois from |
| |||||||
| |||||||
1 | households at or below 150% of the poverty level. Such | ||||||
2 | programs shall be targeted to households with incomes at or | ||||||
3 | below 80% of area median income. | ||||||
4 | (5) Demonstrate that its overall portfolio of energy | ||||||
5 | efficiency measures, not including programs covered by | ||||||
6 | item (4) of this subsection (f), are cost-effective using | ||||||
7 | the total resource cost test and represent a diverse cross | ||||||
8 | section of opportunities for customers of all rate classes | ||||||
9 | to participate in the programs. | ||||||
10 | (6) Demonstrate that a gas utility affiliated with an | ||||||
11 | electric utility that is required to comply with Section | ||||||
12 | 8-103 of this Act has integrated gas and electric | ||||||
13 | efficiency measures into a single program that reduces | ||||||
14 | program or participant costs and appropriately allocates | ||||||
15 | costs to gas and electric ratepayers. The Department shall | ||||||
16 | integrate all gas and electric programs it delivers in any | ||||||
17 | such utilities' service territories, unless the Department | ||||||
18 | can show that integration is not feasible or appropriate. | ||||||
19 | (7) Include a proposed cost recovery tariff mechanism | ||||||
20 | to fund the proposed energy efficiency measures and to | ||||||
21 | ensure the recovery of the prudently and reasonably | ||||||
22 | incurred costs of Commission-approved programs. | ||||||
23 | (8) Provide for quarterly status reports tracking | ||||||
24 | implementation of and expenditures for the utility's | ||||||
25 | portfolio of measures and the Department's portfolio of | ||||||
26 | measures, an annual independent review, and a full |
| |||||||
| |||||||
1 | independent evaluation of the 3-year results of the | ||||||
2 | performance and the cost-effectiveness of the utility's | ||||||
3 | and Department's portfolios of measures and broader net | ||||||
4 | program impacts and, to the extent practical, for | ||||||
5 | adjustment of the measures on a going forward basis as a | ||||||
6 | result of the evaluations. The resources dedicated to | ||||||
7 | evaluation shall not exceed 3% of portfolio resources in | ||||||
8 | any given 3-year period. | ||||||
9 | (g) No more than 3% of expenditures on energy efficiency | ||||||
10 | measures may be allocated for demonstration of breakthrough | ||||||
11 | equipment and devices. | ||||||
12 | (h) Illinois natural gas utilities that are affiliated by | ||||||
13 | virtue of a common parent company may, at the utilities' | ||||||
14 | request, be considered a single natural gas utility for | ||||||
15 | purposes of complying with this Section. | ||||||
16 | (i) If, after 3 years, a gas utility fails to meet the | ||||||
17 | efficiency standard specified in subsection (c) of this Section | ||||||
18 | as modified by subsection (d), then it shall make a | ||||||
19 | contribution to the Low-Income Home Energy Assistance Program. | ||||||
20 | The total liability for failure to meet the goal shall be | ||||||
21 | assessed as follows: | ||||||
22 | (1) a large gas utility shall pay $600,000; | ||||||
23 | (2) a medium gas utility shall pay $400,000; and | ||||||
24 | (3) a small gas utility shall pay $200,000. | ||||||
25 | For purposes of this Section, (i) a "large gas utility" is | ||||||
26 | a gas utility that on December 31, 2008, served more than |
| |||||||
| |||||||
1 | 1,500,000 gas customers in Illinois; (ii) a "medium gas | ||||||
2 | utility" is a gas utility that on December 31, 2008, served | ||||||
3 | fewer than 1,500,000, but more than 500,000 gas customers in | ||||||
4 | Illinois; and (iii) a "small gas utility" is a gas utility that | ||||||
5 | on December 31, 2008, served fewer than 500,000 and more than | ||||||
6 | 100,000 gas customers in Illinois. The costs of this | ||||||
7 | contribution may not be recovered from ratepayers. | ||||||
8 | If a gas utility fails to meet the efficiency standard | ||||||
9 | specified in subsection (c) of this Section, as modified by | ||||||
10 | subsection (d) of this Section, in any 2 consecutive 3-year | ||||||
11 | planning periods, then the responsibility for implementing the | ||||||
12 | utility's energy efficiency measures shall be transferred to an | ||||||
13 | independent program administrator selected by the Commission. | ||||||
14 | Reasonable and prudent costs incurred by the independent | ||||||
15 | program administrator to meet the efficiency standard | ||||||
16 | specified in subsection (c) of this Section, as modified by | ||||||
17 | subsection (d) of this Section, may be recovered from the | ||||||
18 | customers of the affected gas utilities, other than customers | ||||||
19 | described in subsection (m) of this Section. The utility shall | ||||||
20 | provide the independent program administrator with all | ||||||
21 | information and assistance necessary to perform the program | ||||||
22 | administrator's duties including but not limited to customer, | ||||||
23 | account, and energy usage data, and shall allow the program | ||||||
24 | administrator to include inserts in customer bills. The utility | ||||||
25 | may recover reasonable costs associated with any such | ||||||
26 | assistance. |
| |||||||
| |||||||
1 | (j) No utility shall be deemed to have failed to meet the | ||||||
2 | energy efficiency standards to the extent any such failure is | ||||||
3 | due to a failure of the Department. | ||||||
4 | (k) Not later than January 1, 2012, the Commission shall | ||||||
5 | develop and solicit public comment on a plan to foster | ||||||
6 | statewide coordination and consistency between statutorily | ||||||
7 | mandated natural gas and electric energy efficiency programs to | ||||||
8 | reduce program or participant costs or to improve program | ||||||
9 | performance. Not later than September 1, 2013, the Commission | ||||||
10 | shall issue a report to the General Assembly containing its | ||||||
11 | findings and recommendations. | ||||||
12 | (l) This Section does not apply to a gas utility that on | ||||||
13 | January 1, 2009, provided gas service to fewer than 100,000 | ||||||
14 | customers in Illinois. | ||||||
15 | (m) Subsections (a) through (k) of this Section do not | ||||||
16 | apply to customers of a natural gas utility that have a North | ||||||
17 | American Industry Classification System code number that is | ||||||
18 | 22111 or any such code number beginning with the digits 31, 32, | ||||||
19 | or 33 and (i) annual usage in the aggregate of 4 million therms | ||||||
20 | or more within the service territory of the affected gas | ||||||
21 | utility or with aggregate usage of 8 million therms or more in | ||||||
22 | this State and complying with the provisions of item (l) of | ||||||
23 | this subsection (m); or (ii) using natural gas as feedstock and | ||||||
24 | meeting the usage requirements described in item (i) of this | ||||||
25 | subsection (m), to the extent such annual feedstock usage is | ||||||
26 | greater than 60% of the customer's total annual usage of |
| |||||||
| |||||||
1 | natural gas. | ||||||
2 | (1) Customers described in this subsection (m) of this | ||||||
3 | Section shall apply, on a form approved on or before | ||||||
4 | October 1, 2009 by the Department, to the Department to be | ||||||
5 | designated as a self-directing customer ("SDC") or as an | ||||||
6 | exempt customer using natural gas as a feedstock from which | ||||||
7 | other products are made, including, but not limited to, | ||||||
8 | feedstock for a hydrogen plant, on or before the 1st day of | ||||||
9 | February, 2010. Thereafter, application may be made not | ||||||
10 | less than 6 months before the filing date of the gas | ||||||
11 | utility energy efficiency plan described in subsection (f) | ||||||
12 | of this Section; however, a new customer that commences | ||||||
13 | taking service from a natural gas utility after February 1, | ||||||
14 | 2010 may apply to become a SDC or exempt customer up to 30 | ||||||
15 | days after beginning service. Customers described in this | ||||||
16 | subsection (m) that have not already been approved by the | ||||||
17 | Department may apply to be designated a self-directing | ||||||
18 | customer or exempt customer, on a form approved by the | ||||||
19 | Department, between September 1, 2013 and September 30, | ||||||
20 | 2013. Customer applications that are approved by the | ||||||
21 | Department under this amendatory Act of the 98th General | ||||||
22 | Assembly shall be considered to be a self-directing | ||||||
23 | customer or exempt customer, as applicable, for the current | ||||||
24 | 3-year planning period effective December 1, 2013. Such | ||||||
25 | application shall contain the following: | ||||||
26 | (A) the customer's certification that, at the time |
| |||||||
| |||||||
1 | of its application, it qualifies to be a SDC or exempt | ||||||
2 | customer described in this subsection (m) of this | ||||||
3 | Section; | ||||||
4 | (B) in the case of a SDC, the customer's | ||||||
5 | certification that it has established or will | ||||||
6 | establish by the beginning of the utility's 3-year | ||||||
7 | planning period commencing subsequent to the | ||||||
8 | application, and will maintain for accounting | ||||||
9 | purposes, an energy efficiency reserve account and | ||||||
10 | that the customer will accrue funds in said account to | ||||||
11 | be held for the purpose of funding, in whole or in | ||||||
12 | part, energy efficiency measures of the customer's | ||||||
13 | choosing, which may include, but are not limited to, | ||||||
14 | projects involving combined heat and power systems | ||||||
15 | that use the same energy source both for the generation | ||||||
16 | of electrical or mechanical power and the production of | ||||||
17 | steam or another form of useful thermal energy or the | ||||||
18 | use of combustible gas produced from biomass, or both; | ||||||
19 | (C) in the case of a SDC, the customer's | ||||||
20 | certification that annual funding levels for the | ||||||
21 | energy efficiency reserve account will be equal to 2% | ||||||
22 | of the customer's cost of natural gas, composed of the | ||||||
23 | customer's commodity cost and the delivery service | ||||||
24 | charges paid to the gas utility, or $150,000, whichever | ||||||
25 | is less; | ||||||
26 | (D) in the case of a SDC, the customer's |
| |||||||
| |||||||
1 | certification that the required reserve account | ||||||
2 | balance will be capped at 3 years' worth of accruals | ||||||
3 | and that the customer may, at its option, make further | ||||||
4 | deposits to the account to the extent such deposit | ||||||
5 | would increase the reserve account balance above the | ||||||
6 | designated cap level; | ||||||
7 | (E) in the case of a SDC, the customer's | ||||||
8 | certification that by October 1 of each year, beginning | ||||||
9 | no sooner than October 1, 2012, the customer will | ||||||
10 | report to the Department information, for the 12-month | ||||||
11 | period ending May 31 of the same year, on all deposits | ||||||
12 | and reductions, if any, to the reserve account during | ||||||
13 | the reporting year, and to the extent deposits to the | ||||||
14 | reserve account in any year are in an amount less than | ||||||
15 | $150,000, the basis for such reduced deposits; reserve | ||||||
16 | account balances by month; a description of energy | ||||||
17 | efficiency measures undertaken by the customer and | ||||||
18 | paid for in whole or in part with funds from the | ||||||
19 | reserve account; an estimate of the energy saved, or to | ||||||
20 | be saved, by the measure; and that the report shall | ||||||
21 | include a verification by an officer or plant manager | ||||||
22 | of the customer or by a registered professional | ||||||
23 | engineer or certified energy efficiency trade | ||||||
24 | professional that the funds withdrawn from the reserve | ||||||
25 | account were used for the energy efficiency measures; | ||||||
26 | (F) in the case of an exempt customer, the |
| |||||||
| |||||||
1 | customer's certification of the level of gas usage as | ||||||
2 | feedstock in the customer's operation in a typical year | ||||||
3 | and that it will provide information establishing this | ||||||
4 | level, upon request of the Department; | ||||||
5 | (G) in the case of either an exempt customer or a | ||||||
6 | SDC, the customer's certification that it has provided | ||||||
7 | the gas utility or utilities serving the customer with | ||||||
8 | a copy of the application as filed with the Department; | ||||||
9 | (H) in the case of either an exempt customer or a | ||||||
10 | SDC, certification of the natural gas utility or | ||||||
11 | utilities serving the customer in Illinois including | ||||||
12 | the natural gas utility accounts that are the subject | ||||||
13 | of the application; and | ||||||
14 | (I) in the case of either an exempt customer or a | ||||||
15 | SDC, a verification signed by a plant manager or an | ||||||
16 | authorized corporate officer attesting to the | ||||||
17 | truthfulness and accuracy of the information contained | ||||||
18 | in the application. | ||||||
19 | (2) The Department shall review the application to | ||||||
20 | determine that it contains the information described in | ||||||
21 | provisions (A) through (I) of item (1) of this subsection | ||||||
22 | (m), as applicable. The review shall be completed within 30 | ||||||
23 | days after the date the application is filed with the | ||||||
24 | Department. Absent a determination by the Department | ||||||
25 | within the 30-day period, the applicant shall be considered | ||||||
26 | to be a SDC or exempt customer, as applicable, for all |
| |||||||
| |||||||
1 | subsequent 3-year planning periods, as of the date of | ||||||
2 | filing the application described in this subsection (m). If | ||||||
3 | the Department determines that the application does not | ||||||
4 | contain the applicable information described in provisions | ||||||
5 | (A) through (I) of item (1) of this subsection (m), it | ||||||
6 | shall notify the customer, in writing, of its determination | ||||||
7 | that the application does not contain the required | ||||||
8 | information and identify the information that is missing, | ||||||
9 | and the customer shall provide the missing information | ||||||
10 | within 15 working days after the date of receipt of the | ||||||
11 | Department's notification. | ||||||
12 | (3) The Department shall have the right to audit the | ||||||
13 | information provided in the customer's application and | ||||||
14 | annual reports to ensure continued compliance with the | ||||||
15 | requirements of this subsection. Based on the audit, if the | ||||||
16 | Department determines the customer is no longer in | ||||||
17 | compliance with the requirements of items (A) through (I) | ||||||
18 | of item (1) of this subsection (m), as applicable, the | ||||||
19 | Department shall notify the customer in writing of the | ||||||
20 | noncompliance. The customer shall have 30 days to establish | ||||||
21 | its compliance, and failing to do so, may have its status | ||||||
22 | as a SDC or exempt customer revoked by the Department. The | ||||||
23 | Department shall treat all information provided by any | ||||||
24 | customer seeking SDC status or exemption from the | ||||||
25 | provisions of this Section as strictly confidential. | ||||||
26 | (4) Upon request, or on its own motion, the Commission |
| |||||||
| |||||||
1 | may open an investigation, no more than once every 3 years | ||||||
2 | and not before October 1, 2014, to evaluate the | ||||||
3 | effectiveness of the self-directing program described in | ||||||
4 | this subsection (m). | ||||||
5 | Customers described in this subsection (m) that applied to | ||||||
6 | the Department on January 3, 2013, were approved by the | ||||||
7 | Department on February 13, 2013 to be a self-directing customer | ||||||
8 | or exempt customer, and receive natural gas from a utility that | ||||||
9 | provides gas service to at least 500,000 retail customers in | ||||||
10 | Illinois and electric service to at least 1,000,000 retail | ||||||
11 | customers in Illinois shall be considered to be a | ||||||
12 | self-directing customer or exempt customer, as applicable, for | ||||||
13 | the current 3-year planning period effective December 1, 2013. | ||||||
14 | (n) The applicability of this Section to customers | ||||||
15 | described in subsection (m) of this Section is conditioned on | ||||||
16 | the existence of the SDC program. In no event will any | ||||||
17 | provision of this Section apply to such customers after January | ||||||
18 | 1, 2020.
| ||||||
19 | (Source: P.A. 97-813, eff. 7-13-12; 97-841, eff. 7-20-12; | ||||||
20 | 98-90, eff. 7-15-13; 98-225, eff. 8-9-13; 98-604, eff. | ||||||
21 | 12-17-13.)
| ||||||
22 | (220 ILCS 5/16-107)
| ||||||
23 | Sec. 16-107. Real-time pricing.
| ||||||
24 | (a) Each electric utility shall file, on or before May 1,
| ||||||
25 | 1998, a tariff or tariffs which allow nonresidential retail
|
| |||||||
| |||||||
1 | customers in the electric utility's service area to elect
| ||||||
2 | real-time pricing beginning October 1, 1998.
| ||||||
3 | (b) Each electric utility shall file, on or before May 1,
| ||||||
4 | 2000, a tariff or tariffs which allow residential retail
| ||||||
5 | customers in the electric utility's service area to elect
| ||||||
6 | real-time pricing beginning October 1, 2000.
| ||||||
7 | (b-5) Each electric utility shall file a tariff or tariffs | ||||||
8 | allowing residential retail customers in the electric | ||||||
9 | utility's service area to elect real-time pricing beginning | ||||||
10 | January 2, 2007. A customer who elects real-time pricing shall | ||||||
11 | remain on such rate for a minimum of 12 months. The Commission | ||||||
12 | may, after notice and hearing, approve the tariff or tariffs, | ||||||
13 | provided that the Commission finds that the potential for | ||||||
14 | demand reductions will result in net economic benefits to all | ||||||
15 | residential customers of the electric utility. In examining | ||||||
16 | economic benefits from demand reductions, the Commission | ||||||
17 | shall, at a minimum, consider the following: improvements to | ||||||
18 | system reliability and power quality, reduction in wholesale | ||||||
19 | market prices and price volatility, electric utility cost | ||||||
20 | avoidance and reductions, market power mitigation, and other | ||||||
21 | benefits of demand reductions, but only to the extent that the | ||||||
22 | effects of reduced demand can be demonstrated to lower the cost | ||||||
23 | of electricity delivered to residential customers. A tariff or | ||||||
24 | tariffs approved pursuant to this subsection (b-5) shall, at a | ||||||
25 | minimum, describe (i) the methodology for determining the | ||||||
26 | market price of energy to be reflected in the real-time rate |
| |||||||
| |||||||
1 | and (ii) the manner in which customers who elect real-time | ||||||
2 | pricing will be provided with ready access to hourly market | ||||||
3 | prices, including, but not limited to, day-ahead hourly energy | ||||||
4 | prices. | ||||||
5 | A proceeding under this subsection (b-5) may not exceed 120 | ||||||
6 | days in length.
| ||||||
7 | (b-10) Each electric utility providing real-time pricing | ||||||
8 | pursuant to subsection (b-5) shall install a meter capable of | ||||||
9 | recording hourly interval energy use at the service location of | ||||||
10 | each customer that elects real-time pricing pursuant to this | ||||||
11 | subsection. | ||||||
12 | (b-15) If the Commission issues an order pursuant to | ||||||
13 | subsection (b-5), the affected electric utility shall contract | ||||||
14 | with an entity not affiliated with the electric utility to | ||||||
15 | serve as a program administrator to develop and implement a | ||||||
16 | program to provide consumer outreach, enrollment, and | ||||||
17 | education concerning real-time pricing and to establish and | ||||||
18 | administer an information system and technical and other | ||||||
19 | customer assistance that is necessary to enable customers to | ||||||
20 | manage electricity use. The program administrator: (i) shall be | ||||||
21 | selected and compensated by the electric utility, subject to | ||||||
22 | Commission approval; (ii) shall have demonstrated technical | ||||||
23 | and managerial competence in the development and | ||||||
24 | administration of demand management programs; and (iii) may | ||||||
25 | develop and implement risk management, energy efficiency, and | ||||||
26 | other services related to energy use management for which the |
| |||||||
| |||||||
1 | program administrator shall be compensated by participants in | ||||||
2 | the program receiving such services. The electric utility shall | ||||||
3 | provide the program administrator with all information and | ||||||
4 | assistance necessary to perform the program administrator's | ||||||
5 | duties, including, but not limited to, customer, account, and | ||||||
6 | energy use data. The electric utility shall permit the program | ||||||
7 | administrator to include inserts in residential customer bills | ||||||
8 | 2 times per year to assist with customer outreach and | ||||||
9 | enrollment. | ||||||
10 | The program administrator shall submit an annual report to | ||||||
11 | the electric utility no later than April 1 of each year | ||||||
12 | describing the operation and results of the program, including | ||||||
13 | information concerning the number and types of customers using | ||||||
14 | real-time pricing, changes in customers' energy use patterns, | ||||||
15 | an assessment of the value of the program to both participants | ||||||
16 | and non-participants, and recommendations concerning | ||||||
17 | modification of the program and the tariff or tariffs filed | ||||||
18 | under subsection (b-5). This report shall be filed by the | ||||||
19 | electric utility with the Commission within 30 days of receipt | ||||||
20 | and shall be available to the public on the Commission's web | ||||||
21 | site. | ||||||
22 | (b-20) The Commission shall monitor the performance of | ||||||
23 | programs established pursuant to subsection (b-15) and shall | ||||||
24 | order the termination or modification of a program if it | ||||||
25 | determines that the program is not, after a reasonable period | ||||||
26 | of time for development not to exceed 4 years, resulting in net |
| |||||||
| |||||||
1 | benefits to the residential customers of the electric utility.
| ||||||
2 | (b-25) An electric utility shall be entitled to recover | ||||||
3 | reasonable costs incurred in complying with this Section, | ||||||
4 | provided that recovery of the costs is fairly apportioned among | ||||||
5 | its residential customers as provided in this subsection | ||||||
6 | (b-25). The electric utility may apportion greater costs on the | ||||||
7 | residential customers who elect real-time pricing, but may also | ||||||
8 | impose some of the costs of real-time pricing on customers who | ||||||
9 | do not elect real-time pricing, provided that the Commission | ||||||
10 | determines that the cost savings resulting from real-time | ||||||
11 | pricing will exceed the costs imposed on customers for | ||||||
12 | maintaining the program.
| ||||||
13 | (c) The electric utility's tariff or tariffs filed
pursuant | ||||||
14 | to this Section shall be subject to Article IX.
| ||||||
15 | (d) This Section does not apply to any electric utility | ||||||
16 | providing service to 100,000 or fewer customers.
| ||||||
17 | (Source: P.A. 94-977, eff. 6-30-06.)
| ||||||
18 | (220 ILCS 5/16-108.5) | ||||||
19 | Sec. 16-108.5. Infrastructure investment and | ||||||
20 | modernization; regulatory reform. | ||||||
21 | (a) (Blank). | ||||||
22 | (b) For purposes of this Section, "participating utility" | ||||||
23 | means an electric utility or a combination utility serving more | ||||||
24 | than 1,000,000 customers in Illinois that voluntarily elects | ||||||
25 | and commits to undertake (i) the infrastructure investment |
| |||||||
| |||||||
1 | program consisting of the commitments and obligations | ||||||
2 | described in this subsection (b) and (ii) the customer | ||||||
3 | assistance program consisting of the commitments and | ||||||
4 | obligations described in subsection (b-10) of this Section, | ||||||
5 | notwithstanding any other provisions of this Act and without | ||||||
6 | obtaining any approvals from the Commission or any other agency | ||||||
7 | other than as set forth in this Section, regardless of whether | ||||||
8 | any such approval would otherwise be required. "Combination | ||||||
9 | utility" means a utility that, as of January 1, 2011, provided | ||||||
10 | electric service to at least one million retail customers in | ||||||
11 | Illinois and gas service to at least 500,000 retail customers | ||||||
12 | in Illinois. A participating utility shall recover the | ||||||
13 | expenditures made under the infrastructure investment program | ||||||
14 | through the ratemaking process, including, but not limited to, | ||||||
15 | the performance-based formula rate and process set forth in | ||||||
16 | this Section. | ||||||
17 | During the infrastructure investment program's peak | ||||||
18 | program year, a participating utility other than a combination | ||||||
19 | utility shall create 2,000 full-time equivalent jobs in | ||||||
20 | Illinois, and a participating utility that is a combination | ||||||
21 | utility shall create 450 full-time equivalent jobs in Illinois | ||||||
22 | related to the provision of electric service. These jobs shall | ||||||
23 | include direct jobs, contractor positions, and induced jobs, | ||||||
24 | but shall not include any portion of a job commitment, not | ||||||
25 | specifically contingent on an amendatory Act of the 97th | ||||||
26 | General Assembly becoming law, between a participating utility |
| |||||||
| |||||||
1 | and a labor union that existed on the effective date of this | ||||||
2 | amendatory Act of the 97th General Assembly and that has not | ||||||
3 | yet been fulfilled. A portion of the full-time equivalent jobs | ||||||
4 | created by each participating utility shall include | ||||||
5 | incremental personnel hired subsequent to the effective date of | ||||||
6 | this amendatory Act of the 97th General Assembly. For purposes | ||||||
7 | of this Section, "peak program year" means the consecutive | ||||||
8 | 12-month period with the highest number of full-time equivalent | ||||||
9 | jobs that occurs between the beginning of investment year 2 and | ||||||
10 | the end of investment year 4. | ||||||
11 | A participating utility shall meet one of the following | ||||||
12 | commitments, as applicable: | ||||||
13 | (1) Beginning no later than 180 days after a | ||||||
14 | participating utility other than a combination utility | ||||||
15 | files a performance-based formula rate tariff pursuant to | ||||||
16 | subsection (c) of this Section, or, beginning no later than | ||||||
17 | January 1, 2012 if such utility files such | ||||||
18 | performance-based formula rate tariff within 14 days of the | ||||||
19 | effective date of this amendatory Act of the 97th General | ||||||
20 | Assembly, the participating utility shall, except as | ||||||
21 | provided in subsection (b-5): | ||||||
22 | (A) over a 5-year period, invest an estimated | ||||||
23 | $1,300,000,000 in electric system upgrades, | ||||||
24 | modernization projects, and training facilities, | ||||||
25 | including, but not limited to: | ||||||
26 | (i) distribution infrastructure improvements |
| |||||||
| |||||||
1 | totaling an estimated $1,000,000,000, including | ||||||
2 | underground residential distribution cable | ||||||
3 | injection and replacement and mainline cable | ||||||
4 | system refurbishment and replacement projects; | ||||||
5 | (ii) training facility construction or upgrade | ||||||
6 | projects totaling an estimated $10,000,000, | ||||||
7 | provided that, at a minimum, one such facility | ||||||
8 | shall be located in a municipality having a | ||||||
9 | population of more than 2 million residents and one | ||||||
10 | such facility shall be located in a municipality | ||||||
11 | having a population of more than 150,000 residents | ||||||
12 | but fewer than 170,000 residents; any such new | ||||||
13 | facility located in a municipality having a | ||||||
14 | population of more than 2 million residents must be | ||||||
15 | designed for the purpose of obtaining, and the | ||||||
16 | owner of the facility shall apply for, | ||||||
17 | certification under the United States Green | ||||||
18 | Building Council's Leadership in Energy Efficiency | ||||||
19 | Design Green Building Rating System; | ||||||
20 | (iii) wood pole inspection, treatment, and | ||||||
21 | replacement programs; | ||||||
22 | (iv) an estimated $200,000,000 for reducing | ||||||
23 | the susceptibility of certain circuits to | ||||||
24 | storm-related damage, including, but not limited | ||||||
25 | to, high winds, thunderstorms, and ice storms; | ||||||
26 | improvements may include, but are not limited to, |
| |||||||
| |||||||
1 | overhead to underground conversion and other | ||||||
2 | engineered outcomes for circuits; the | ||||||
3 | participating utility shall prioritize the | ||||||
4 | selection of circuits based on each circuit's | ||||||
5 | historical susceptibility to storm-related damage | ||||||
6 | and the ability to provide the greatest customer | ||||||
7 | benefit upon completion of the improvements; to be | ||||||
8 | eligible for improvement, the participating | ||||||
9 | utility's ability to maintain proper tree | ||||||
10 | clearances surrounding the overhead circuit must | ||||||
11 | not have
been impeded by third parties; and | ||||||
12 | (B) over a 10-year period, invest an estimated | ||||||
13 | $1,300,000,000 to upgrade and modernize its | ||||||
14 | transmission and distribution infrastructure and in | ||||||
15 | Smart Grid electric system upgrades, including, but | ||||||
16 | not limited to: | ||||||
17 | (i) additional smart meters; | ||||||
18 | (ii) distribution automation; | ||||||
19 | (iii) associated cyber secure data | ||||||
20 | communication network; and | ||||||
21 | (iv) substation micro-processor relay | ||||||
22 | upgrades. | ||||||
23 | (2) Beginning no later than 180 days after a | ||||||
24 | participating utility that is a combination utility files a | ||||||
25 | performance-based formula rate tariff pursuant to | ||||||
26 | subsection (c) of this Section, or, beginning no later than |
| |||||||
| |||||||
1 | January 1, 2012 if such utility files such | ||||||
2 | performance-based formula rate tariff within 14 days of the | ||||||
3 | effective date of this amendatory Act of the 97th General | ||||||
4 | Assembly, the participating utility shall, except as | ||||||
5 | provided in subsection (b-5): | ||||||
6 | (A) over a 10-year period, invest an estimated | ||||||
7 | $265,000,000 in electric system upgrades, | ||||||
8 | modernization projects, and training facilities, | ||||||
9 | including, but not limited to: | ||||||
10 | (i) distribution infrastructure improvements | ||||||
11 | totaling an estimated $245,000,000, which may | ||||||
12 | include bulk supply substations, transformers, | ||||||
13 | reconductoring, and rebuilding overhead | ||||||
14 | distribution and sub-transmission lines, | ||||||
15 | underground residential distribution cable | ||||||
16 | injection and replacement and mainline cable | ||||||
17 | system refurbishment and replacement projects; | ||||||
18 | (ii) training facility construction or upgrade | ||||||
19 | projects totaling an estimated $1,000,000; any | ||||||
20 | such new facility must be designed for the purpose | ||||||
21 | of obtaining, and the owner of the facility shall | ||||||
22 | apply for, certification under the United States | ||||||
23 | Green Building Council's Leadership in Energy | ||||||
24 | Efficiency Design Green Building Rating System; | ||||||
25 | and | ||||||
26 | (iii) wood pole inspection, treatment, and |
| |||||||
| |||||||
1 | replacement programs; and | ||||||
2 | (B) over a 10-year period, invest an estimated | ||||||
3 | $360,000,000 to upgrade and modernize its transmission | ||||||
4 | and distribution infrastructure and in Smart Grid | ||||||
5 | electric system upgrades, including, but not limited | ||||||
6 | to: | ||||||
7 | (i) additional smart meters; | ||||||
8 | (ii) distribution automation; | ||||||
9 | (iii) associated cyber secure data | ||||||
10 | communication network; and | ||||||
11 | (iv) substation micro-processor relay | ||||||
12 | upgrades. | ||||||
13 | For purposes of this Section, "Smart Grid electric system | ||||||
14 | upgrades" shall have the meaning set forth in subsection (a) of | ||||||
15 | Section 16-108.6 of this Act. | ||||||
16 | The investments in the infrastructure investment program | ||||||
17 | described in this subsection (b) shall be incremental to the | ||||||
18 | participating utility's annual capital investment program, as | ||||||
19 | defined by, for purposes of this subsection (b), the | ||||||
20 | participating utility's average capital spend for calendar | ||||||
21 | years 2008, 2009, and 2010 as reported in the applicable | ||||||
22 | Federal Energy Regulatory Commission (FERC) Form 1; provided | ||||||
23 | that where one or more utilities have merged, the average | ||||||
24 | capital spend shall be determined using the aggregate of the | ||||||
25 | merged utilities' capital spend reported in FERC Form 1 for the | ||||||
26 | years 2008, 2009, and 2010. A participating utility may add |
| |||||||
| |||||||
1 | reasonable construction ramp-up and ramp-down time to the | ||||||
2 | investment periods specified in this subsection (b). For each | ||||||
3 | such investment period, the ramp-up and ramp-down time shall | ||||||
4 | not exceed a total of 6 months. | ||||||
5 | Within 60 days after filing a tariff under subsection (c) | ||||||
6 | of this Section, a participating utility shall submit to the | ||||||
7 | Commission its plan, including scope, schedule, and staffing, | ||||||
8 | for satisfying its infrastructure investment program | ||||||
9 | commitments pursuant to this subsection (b). The submitted plan | ||||||
10 | shall include a schedule and staffing plan for the next | ||||||
11 | calendar year. The plan shall also include a plan for the | ||||||
12 | creation, operation, and administration of a Smart Grid test | ||||||
13 | bed as described in subsection (c) of Section 16-108.8. The | ||||||
14 | plan need not allocate the work equally over the respective | ||||||
15 | periods, but should allocate material increments throughout | ||||||
16 | such periods commensurate with the work to be undertaken. No | ||||||
17 | later than April 1 of each subsequent year, the utility shall | ||||||
18 | submit to the Commission a report that includes any updates to | ||||||
19 | the plan, a schedule for the next calendar year, the | ||||||
20 | expenditures made for the prior calendar year and cumulatively, | ||||||
21 | and the number of full-time equivalent jobs created for the | ||||||
22 | prior calendar year and cumulatively. If the utility is | ||||||
23 | materially deficient in satisfying a schedule or staffing plan, | ||||||
24 | then the report must also include a corrective action plan to | ||||||
25 | address the deficiency. The fact that the plan, implementation | ||||||
26 | of the plan, or a schedule changes shall not imply the |
| |||||||
| |||||||
1 | imprudence or unreasonableness of the infrastructure | ||||||
2 | investment program, plan, or schedule. Further, no later than | ||||||
3 | 45 days following the last day of the first, second, and third | ||||||
4 | quarters of each year of the plan, a participating utility | ||||||
5 | shall submit to the Commission a verified quarterly report for | ||||||
6 | the prior quarter that includes (i) the total number of | ||||||
7 | full-time equivalent jobs created during the prior quarter, | ||||||
8 | (ii) the total number of employees as of the last day of the | ||||||
9 | prior quarter, (iii) the total number of full-time equivalent | ||||||
10 | hours in each job classification or job title, (iv) the total | ||||||
11 | number of incremental employees and contractors in support of | ||||||
12 | the investments undertaken pursuant to this subsection (b) for | ||||||
13 | the prior quarter, and (v) any other information that the | ||||||
14 | Commission may require by rule. | ||||||
15 | With respect to the participating utility's peak job | ||||||
16 | commitment, if, after considering the utility's corrective | ||||||
17 | action plan and compliance thereunder, the Commission enters an | ||||||
18 | order finding, after notice and hearing, that a participating | ||||||
19 | utility did not satisfy its peak job commitment described in | ||||||
20 | this subsection (b) for reasons that are reasonably within its | ||||||
21 | control, then the Commission shall also determine, after | ||||||
22 | consideration of the evidence, including, but not limited to, | ||||||
23 | evidence submitted by the Department of Commerce and Economic | ||||||
24 | Opportunity and the utility, the deficiency in the number of | ||||||
25 | full-time equivalent jobs during the peak program year due to | ||||||
26 | such failure. The Commission shall notify the Department of any |
| |||||||
| |||||||
1 | proceeding that is initiated pursuant to this paragraph. For | ||||||
2 | each full-time equivalent job deficiency during the peak | ||||||
3 | program year that the Commission finds as set forth in this | ||||||
4 | paragraph, the participating utility shall, within 30 days | ||||||
5 | after the entry of the Commission's order, pay $6,000 to a fund | ||||||
6 | for training grants administered under Section 605-800 of The | ||||||
7 | Department of Commerce and Economic Opportunity Law, which | ||||||
8 | shall not be a recoverable expense. | ||||||
9 | With respect to the participating utility's investment | ||||||
10 | amount commitments, if, after considering the utility's | ||||||
11 | corrective action plan and compliance thereunder, the | ||||||
12 | Commission enters an order finding, after notice and hearing, | ||||||
13 | that a participating utility is not satisfying its investment | ||||||
14 | amount commitments described in this subsection (b), then the | ||||||
15 | utility shall no longer be eligible to annually update the | ||||||
16 | performance-based formula rate tariff pursuant to subsection | ||||||
17 | (d) of this Section. In such event, the then current rates | ||||||
18 | shall remain in effect until such time as new rates are set | ||||||
19 | pursuant to Article IX of this Act, subject to retroactive | ||||||
20 | adjustment, with interest, to reconcile rates charged with | ||||||
21 | actual costs. | ||||||
22 | If the Commission finds that a participating utility is no | ||||||
23 | longer eligible to update the performance-based formula rate | ||||||
24 | tariff pursuant to subsection (d) of this Section, or the | ||||||
25 | performance-based formula rate is otherwise terminated, then | ||||||
26 | the participating utility's voluntary commitments and |
| |||||||
| |||||||
1 | obligations under this subsection (b) shall immediately | ||||||
2 | terminate, except for the utility's obligation to pay an amount | ||||||
3 | already owed to the fund for training grants pursuant to a | ||||||
4 | Commission order. | ||||||
5 | In meeting the obligations of this subsection (b), to the | ||||||
6 | extent feasible and consistent with State and federal law, the | ||||||
7 | investments under the infrastructure investment program should | ||||||
8 | provide employment opportunities for all segments of the | ||||||
9 | population and workforce, including minority-owned and | ||||||
10 | female-owned business enterprises, and shall not, consistent | ||||||
11 | with State and federal law, discriminate based on race or | ||||||
12 | socioeconomic status. | ||||||
13 | (b-5) Nothing in this Section shall prohibit the Commission | ||||||
14 | from investigating the prudence and reasonableness of the | ||||||
15 | expenditures made under the infrastructure investment program | ||||||
16 | during the annual review required by subsection (d) of this | ||||||
17 | Section and shall, as part of such investigation, determine | ||||||
18 | whether the utility's actual costs under the program are | ||||||
19 | prudent and reasonable. The fact that a participating utility | ||||||
20 | invests more than the minimum amounts specified in subsection | ||||||
21 | (b) of this Section or its plan shall not imply imprudence or | ||||||
22 | unreasonableness. | ||||||
23 | If the participating utility finds that it is implementing | ||||||
24 | its plan for satisfying the infrastructure investment program | ||||||
25 | commitments described in subsection (b) of this Section at a | ||||||
26 | cost below the estimated amounts specified in subsection (b) of |
| |||||||
| |||||||
1 | this Section, then the utility may file a petition with the | ||||||
2 | Commission requesting that it be permitted to satisfy its | ||||||
3 | commitments by spending less than the estimated amounts | ||||||
4 | specified in subsection (b) of this Section. The Commission | ||||||
5 | shall, after notice and hearing, enter its order approving, or | ||||||
6 | approving as modified, or denying each such petition within 150 | ||||||
7 | days after the filing of the petition. | ||||||
8 | In no event, absent General Assembly approval, shall the | ||||||
9 | capital investment costs incurred by a participating utility | ||||||
10 | other than a combination utility in satisfying its | ||||||
11 | infrastructure investment program commitments described in | ||||||
12 | subsection (b) of this Section exceed $3,000,000,000 or, for a | ||||||
13 | participating utility that is a combination utility, | ||||||
14 | $720,000,000. If the participating utility's updated cost | ||||||
15 | estimates for satisfying its infrastructure investment program | ||||||
16 | commitments described in subsection (b) of this Section exceed | ||||||
17 | the limitation imposed by this subsection (b-5), then it shall | ||||||
18 | submit a report to the Commission that identifies the increased | ||||||
19 | costs and explains the reason or reasons for the increased | ||||||
20 | costs no later than the year in which the utility estimates it | ||||||
21 | will exceed the limitation. The Commission shall review the | ||||||
22 | report and shall, within 90 days after the participating | ||||||
23 | utility files the report, report to the General Assembly its | ||||||
24 | findings regarding the participating utility's report. If the | ||||||
25 | General Assembly does not amend the limitation imposed by this | ||||||
26 | subsection (b-5), then the utility may modify its plan so as |
| |||||||
| |||||||
1 | not to exceed the limitation imposed by this subsection (b-5) | ||||||
2 | and may propose corresponding changes to the metrics | ||||||
3 | established pursuant to subparagraphs (5) through (8) of | ||||||
4 | subsection (f) of this Section, and the Commission may modify | ||||||
5 | the metrics and incremental savings goals established pursuant | ||||||
6 | to subsection (f) of this Section accordingly. | ||||||
7 | (b-10) All participating utilities shall make | ||||||
8 | contributions for an energy low-income and support program in | ||||||
9 | accordance with this subsection. Beginning no later than 180 | ||||||
10 | days after a participating utility files a performance-based | ||||||
11 | formula rate tariff pursuant to subsection (c) of this Section, | ||||||
12 | or beginning no later than January 1, 2012 if such utility | ||||||
13 | files such performance-based formula rate tariff within 14 days | ||||||
14 | of the effective date of this amendatory Act of the 97th | ||||||
15 | General Assembly, and without obtaining any approvals from the | ||||||
16 | Commission or any other agency other than as set forth in this | ||||||
17 | Section, regardless of whether any such approval would | ||||||
18 | otherwise be required, a participating utility other than a | ||||||
19 | combination utility shall pay $10,000,000 per year for 5 years | ||||||
20 | and a participating utility that is a combination utility shall | ||||||
21 | pay $1,000,000 per year for 10 years to the energy low-income | ||||||
22 | and support program, which is intended to fund customer | ||||||
23 | assistance programs with the primary purpose being avoidance of
| ||||||
24 | imminent disconnection. Such programs may include: | ||||||
25 | (1) a residential hardship program that may partner | ||||||
26 | with community-based
organizations, including senior |
| |||||||
| |||||||
1 | citizen organizations, and provides grants to low-income | ||||||
2 | residential customers, including low-income senior | ||||||
3 | citizens, who demonstrate a hardship; | ||||||
4 | (2) a program that provides grants and other bill | ||||||
5 | payment concessions to disabled veterans who demonstrate a | ||||||
6 | hardship and members of the armed services or reserve | ||||||
7 | forces of the United States or members of the Illinois | ||||||
8 | National Guard who are on active duty pursuant to an | ||||||
9 | executive order of the President of the United States, an | ||||||
10 | act of the Congress of the United States, or an order of | ||||||
11 | the Governor and who demonstrate a
hardship; | ||||||
12 | (3) a budget assistance program that provides tools and | ||||||
13 | education to low-income senior citizens to assist them with | ||||||
14 | obtaining information regarding energy usage and
effective | ||||||
15 | means of managing energy costs; | ||||||
16 | (4) a non-residential special hardship program that | ||||||
17 | provides grants to non-residential customers such as small | ||||||
18 | businesses and non-profit organizations that demonstrate a | ||||||
19 | hardship, including those providing services to senior | ||||||
20 | citizen and low-income customers; and | ||||||
21 | (5) a performance-based assistance program that | ||||||
22 | provides grants to encourage residential customers to make | ||||||
23 | on-time payments by matching a portion of the customer's | ||||||
24 | payments or providing credits towards arrearages. | ||||||
25 | The payments made by a participating utility pursuant to | ||||||
26 | this subsection (b-10) shall not be a recoverable expense. A |
| |||||||
| |||||||
1 | participating utility may elect to fund either new or existing | ||||||
2 | customer assistance programs, including, but not limited to, | ||||||
3 | those that are administered by the utility. | ||||||
4 | Programs that use funds that are provided by a | ||||||
5 | participating utility to reduce utility bills shall may be | ||||||
6 | implemented through tariffs that are filed with and reviewed by | ||||||
7 | the Commission. If a utility elects to file tariffs with the | ||||||
8 | Commission to implement all or a portion of the programs, those | ||||||
9 | tariffs shall, regardless of the date actually filed, be deemed | ||||||
10 | accepted and approved, and shall become effective on the | ||||||
11 | effective date of this amendatory Act of the 97th General | ||||||
12 | Assembly. The participating utilities whose customers benefit | ||||||
13 | from the funds that are disbursed as contemplated in this | ||||||
14 | Section shall file annual reports documenting the disbursement | ||||||
15 | of those funds with the Commission. The Commission has the | ||||||
16 | authority to audit disbursement of the funds to ensure they | ||||||
17 | were disbursed consistently with this Section. | ||||||
18 | If the Commission finds that a participating utility is no | ||||||
19 | longer eligible to update the performance-based formula rate | ||||||
20 | tariff pursuant to subsection (d) of this Section, or the | ||||||
21 | performance-based formula rate is otherwise terminated, then | ||||||
22 | the participating utility's voluntary commitments and | ||||||
23 | obligations under this subsection (b-10) shall immediately | ||||||
24 | terminate. | ||||||
25 | (c) A participating utility shall may elect to recover its | ||||||
26 | delivery services costs through a performance-based formula |
| |||||||
| |||||||
1 | rate approved by the Commission, which shall specify the cost | ||||||
2 | components that form the basis of the rate charged to customers | ||||||
3 | with sufficient specificity to operate in a standardized manner | ||||||
4 | and be updated annually with transparent information that | ||||||
5 | reflects the utility's actual costs to be recovered during the | ||||||
6 | applicable rate year, which is the period beginning with the | ||||||
7 | first billing day of January and extending through the last | ||||||
8 | billing day of the following December. In the event the utility | ||||||
9 | recovers a portion of its costs through automatic adjustment | ||||||
10 | clause tariffs on the effective date of this amendatory Act of | ||||||
11 | the 97th General Assembly, the utility may elect to continue to | ||||||
12 | recover these costs through such tariffs, but then these costs | ||||||
13 | shall not be recovered through the performance-based formula | ||||||
14 | rate. In the event the participating utility, prior to the | ||||||
15 | effective date of this amendatory Act of the 97th General | ||||||
16 | Assembly, filed electric delivery services tariffs with the | ||||||
17 | Commission pursuant to Section 9-201 of this Act that are | ||||||
18 | related to the recovery of its electric delivery services costs | ||||||
19 | that are still pending on the effective date of this amendatory | ||||||
20 | Act of the 97th General Assembly, the participating utility | ||||||
21 | shall, at the time it files its performance-based formula rate | ||||||
22 | tariff with the Commission, also file a notice of withdrawal | ||||||
23 | with the Commission to withdraw the electric delivery services | ||||||
24 | tariffs previously filed pursuant to Section 9-201 of this Act. | ||||||
25 | Upon receipt of such notice, the Commission shall dismiss with | ||||||
26 | prejudice any docket that had been initiated to investigate the |
| |||||||
| |||||||
1 | electric delivery services tariffs filed pursuant to Section | ||||||
2 | 9-201 of this Act, and such tariffs and the record related | ||||||
3 | thereto shall not be the subject of any further hearing, | ||||||
4 | investigation, or proceeding of any kind related to rates for | ||||||
5 | electric delivery services. | ||||||
6 | The performance-based formula rate shall be implemented | ||||||
7 | through a tariff filed with the Commission consistent with the | ||||||
8 | provisions of this subsection (c) that shall be applicable to | ||||||
9 | all delivery services customers. The Commission shall initiate | ||||||
10 | and conduct an investigation of the tariff in a manner | ||||||
11 | consistent with the provisions of this subsection (c) and the | ||||||
12 | provisions of Article IX of this Act to the extent they do not | ||||||
13 | conflict with this subsection (c). Except in the case where the | ||||||
14 | Commission finds, after notice and hearing, that a | ||||||
15 | participating utility is not satisfying its investment amount | ||||||
16 | commitments under subsection (b) of this Section, the | ||||||
17 | performance-based formula rate shall remain in effect at the | ||||||
18 | discretion of the utility. The performance-based formula rate | ||||||
19 | approved by the Commission shall do the following: | ||||||
20 | (1) Provide for the recovery of the utility's actual | ||||||
21 | costs of delivery services that are prudently incurred and | ||||||
22 | reasonable in amount consistent with Commission practice | ||||||
23 | and law. The sole fact that a cost differs from that | ||||||
24 | incurred in a prior calendar year or that an investment is | ||||||
25 | different from that made in a prior calendar year shall not | ||||||
26 | imply the imprudence or unreasonableness of that cost or |
| |||||||
| |||||||
1 | investment. | ||||||
2 | (2) Reflect the utility's actual year-end capital | ||||||
3 | structure for the applicable calendar year, excluding | ||||||
4 | goodwill, subject to a determination of prudence and | ||||||
5 | reasonableness consistent with Commission practice and | ||||||
6 | law. | ||||||
7 | (3) Include a cost of equity, which shall be calculated | ||||||
8 | as the sum of the following: | ||||||
9 | (A) the average for the applicable calendar year of | ||||||
10 | the monthly average yields of 30-year U.S. Treasury | ||||||
11 | bonds published by the Board of Governors of the | ||||||
12 | Federal Reserve System in its weekly H.15 Statistical | ||||||
13 | Release or successor publication; and | ||||||
14 | (B) 580 basis points. | ||||||
15 | At such time as the Board of Governors of the Federal | ||||||
16 | Reserve System ceases to include the monthly average yields | ||||||
17 | of 30-year U.S. Treasury bonds in its weekly H.15 | ||||||
18 | Statistical Release or successor publication, the monthly | ||||||
19 | average yields of the U.S. Treasury bonds then having the | ||||||
20 | longest duration published by the Board of Governors in its | ||||||
21 | weekly H.15 Statistical Release or successor publication | ||||||
22 | shall instead be used for purposes of this paragraph (3). | ||||||
23 | (4) Permit and set forth protocols, subject to a | ||||||
24 | determination of prudence and reasonableness consistent | ||||||
25 | with Commission practice and law, for the following: | ||||||
26 | (A) recovery of incentive compensation expense |
| |||||||
| |||||||
1 | that is based on the achievement of operational | ||||||
2 | metrics, including metrics related to budget controls, | ||||||
3 | outage duration and frequency, safety, customer | ||||||
4 | service, efficiency and productivity, and | ||||||
5 | environmental compliance. Incentive compensation | ||||||
6 | expense that is based on net income or an affiliate's | ||||||
7 | earnings per share shall not be recoverable under the | ||||||
8 | performance-based formula rate; | ||||||
9 | (B) recovery of pension and other post-employment | ||||||
10 | benefits expense, provided that such costs are | ||||||
11 | supported by an actuarial study; | ||||||
12 | (C) recovery of severance costs, provided that if | ||||||
13 | the amount is over $3,700,000 for a participating | ||||||
14 | utility that is a combination utility or $10,000,000 | ||||||
15 | for a participating utility that serves more than 3 | ||||||
16 | million retail customers, then the full amount shall be | ||||||
17 | amortized consistent with subparagraph (F) of this | ||||||
18 | paragraph (4); | ||||||
19 | (D) investment return at a rate equal to the | ||||||
20 | utility's weighted average cost of long-term debt, on | ||||||
21 | the pension assets as, and in the amount, reported in | ||||||
22 | Account 186 (or in such other Account or Accounts as | ||||||
23 | such asset may subsequently be recorded) of the | ||||||
24 | utility's most recently filed FERC Form 1, net of | ||||||
25 | deferred tax benefits; | ||||||
26 | (E) recovery of the expenses related to the |
| |||||||
| |||||||
1 | Commission proceeding under this subsection (c) to | ||||||
2 | approve this performance-based formula rate and | ||||||
3 | initial rates or to subsequent proceedings related to | ||||||
4 | the formula, provided that the recovery shall be | ||||||
5 | amortized over a 3-year period; recovery of expenses | ||||||
6 | related to the annual Commission proceedings under | ||||||
7 | subsection (d) of this Section to review the inputs to | ||||||
8 | the performance-based formula rate shall be expensed | ||||||
9 | and recovered through the performance-based formula | ||||||
10 | rate; | ||||||
11 | (F) amortization over a 5-year period of the full | ||||||
12 | amount of each charge or credit that exceeds $3,700,000 | ||||||
13 | for a participating utility that is a combination | ||||||
14 | utility or $10,000,000 for a participating utility | ||||||
15 | that serves more than 3 million retail customers in the | ||||||
16 | applicable calendar year and that relates to a | ||||||
17 | workforce reduction program's severance costs, changes | ||||||
18 | in accounting rules, changes in law, compliance with | ||||||
19 | any Commission-initiated audit, or a single storm or | ||||||
20 | other similar expense, provided that any unamortized | ||||||
21 | balance shall be reflected in rate base. For purposes | ||||||
22 | of this subparagraph (F), changes in law includes any | ||||||
23 | enactment, repeal, or amendment in a law, ordinance, | ||||||
24 | rule, regulation, interpretation, permit, license, | ||||||
25 | consent, or order, including those relating to taxes, | ||||||
26 | accounting, or to environmental matters, or in the |
| |||||||
| |||||||
1 | interpretation or application thereof by any | ||||||
2 | governmental authority occurring after the effective | ||||||
3 | date of this amendatory Act of the 97th General | ||||||
4 | Assembly; | ||||||
5 | (G) recovery of existing regulatory assets over | ||||||
6 | the periods previously authorized by the Commission; | ||||||
7 | (H) historical weather normalized billing | ||||||
8 | determinants; and | ||||||
9 | (I) allocation methods for common costs. | ||||||
10 | (5) Provide that if the participating utility's earned | ||||||
11 | rate of return on common equity related to the provision of | ||||||
12 | delivery services for the prior rate year (calculated using | ||||||
13 | costs and capital structure approved by the Commission as | ||||||
14 | provided in subparagraph (2) of this subsection (c), | ||||||
15 | consistent with this Section, in accordance with | ||||||
16 | Commission rules and orders, including, but not limited to, | ||||||
17 | adjustments for goodwill, and after any Commission-ordered | ||||||
18 | disallowances and taxes) is more than 50 basis points | ||||||
19 | higher than the rate of return on common equity calculated | ||||||
20 | pursuant to paragraph (3) of this subsection (c) (after | ||||||
21 | adjusting for any penalties to the rate of return on common | ||||||
22 | equity applied pursuant to the performance metrics | ||||||
23 | provision of subsection (f) of this Section), then the | ||||||
24 | participating utility shall apply a credit through the | ||||||
25 | performance-based formula rate that reflects an amount | ||||||
26 | equal to the value of that portion of the earned rate of |
| |||||||
| |||||||
1 | return on common equity that is more than 50 basis points | ||||||
2 | higher than the rate of return on common equity calculated | ||||||
3 | pursuant to paragraph (3) of this subsection (c) (after | ||||||
4 | adjusting for any penalties to the rate of return on common | ||||||
5 | equity applied pursuant to the performance metrics | ||||||
6 | provision of subsection (f) of this Section) for the prior | ||||||
7 | rate year, adjusted for taxes. If the participating | ||||||
8 | utility's earned rate of return on common equity related to | ||||||
9 | the provision of delivery services for the prior rate year | ||||||
10 | (calculated using costs and capital structure approved by | ||||||
11 | the Commission as provided in subparagraph (2) of this | ||||||
12 | subsection (c), consistent with this Section, in | ||||||
13 | accordance with Commission rules and orders, including, | ||||||
14 | but not limited to, adjustments for goodwill, and after any | ||||||
15 | Commission-ordered disallowances and taxes) is more than | ||||||
16 | 50 basis points less than the return on common equity | ||||||
17 | calculated pursuant to paragraph (3) of this subsection (c) | ||||||
18 | (after adjusting for any penalties to the rate of return on | ||||||
19 | common equity applied pursuant to the performance metrics | ||||||
20 | provision of subsection (f) of this Section), then the | ||||||
21 | participating utility shall apply a charge through the | ||||||
22 | performance-based formula rate that reflects an amount | ||||||
23 | equal to the value of that portion of the earned rate of | ||||||
24 | return on common equity that is more than 50 basis points | ||||||
25 | less than the rate of return on common equity calculated | ||||||
26 | pursuant to paragraph (3) of this subsection (c) (after |
| |||||||
| |||||||
1 | adjusting for any penalties to the rate of return on common | ||||||
2 | equity applied pursuant to the performance metrics | ||||||
3 | provision of subsection (f) of this Section) for the prior | ||||||
4 | rate year, adjusted for taxes. | ||||||
5 | (6) Provide for an annual reconciliation, as described | ||||||
6 | in subsection (d) of this Section, with interest, of the | ||||||
7 | revenue requirement reflected in rates for each calendar | ||||||
8 | year, beginning with the calendar year in which the utility | ||||||
9 | files its performance-based formula rate tariff pursuant | ||||||
10 | to subsection (c) of this Section, with what the revenue | ||||||
11 | requirement would have been had the actual cost information | ||||||
12 | for the applicable calendar year been available at the | ||||||
13 | filing date. | ||||||
14 | The utility shall file, together with its tariff, final | ||||||
15 | data based on its most recently filed FERC Form 1, plus | ||||||
16 | projected plant additions and correspondingly updated | ||||||
17 | depreciation reserve and expense for the calendar year in which | ||||||
18 | the tariff and data are filed, that shall populate the | ||||||
19 | performance-based formula rate and set the initial delivery | ||||||
20 | services rates under the formula. For purposes of this Section, | ||||||
21 | "FERC Form 1" means the Annual Report of Major Electric | ||||||
22 | Utilities, Licensees and Others that electric utilities are | ||||||
23 | required to file with the Federal Energy Regulatory Commission | ||||||
24 | under the Federal Power Act, Sections 3, 4(a), 304 and 209, | ||||||
25 | modified as necessary to be consistent with 83 Ill. Admin. Code | ||||||
26 | Part 415 as of May 1, 2011. Nothing in this Section is intended |
| |||||||
| |||||||
1 | to allow costs that are not otherwise recoverable to be | ||||||
2 | recoverable by virtue of inclusion in FERC Form 1. | ||||||
3 | After the utility files its proposed performance-based | ||||||
4 | formula rate structure and protocols and initial rates, the | ||||||
5 | Commission shall initiate a docket to review the filing. The | ||||||
6 | Commission shall enter an order approving, or approving as | ||||||
7 | modified, the performance-based formula rate, including the | ||||||
8 | initial rates, as just and reasonable within 270 days after the | ||||||
9 | date on which the tariff was filed, or, if the tariff is filed | ||||||
10 | within 14 days after the effective date of this amendatory Act | ||||||
11 | of the 97th General Assembly, then by May 31, 2012. Such review | ||||||
12 | shall be based on the same evidentiary standards, including, | ||||||
13 | but not limited to, those concerning the prudence and | ||||||
14 | reasonableness of the costs incurred by the utility, the | ||||||
15 | Commission applies in a hearing to review a filing for a | ||||||
16 | general increase in rates under Article IX of this Act. The | ||||||
17 | initial rates shall take effect within 30 days after the | ||||||
18 | Commission's order approving the performance-based formula | ||||||
19 | rate tariff. | ||||||
20 | Until such time as the Commission approves a different rate | ||||||
21 | design and cost allocation pursuant to subsection (e) of this | ||||||
22 | Section, rate design and cost allocation across customer | ||||||
23 | classes shall be consistent with the Commission's most recent | ||||||
24 | order regarding the participating utility's request for a | ||||||
25 | general increase in its delivery services rates. | ||||||
26 | Subsequent changes to the performance-based formula rate |
| |||||||
| |||||||
1 | structure or protocols shall be made as set forth in Section | ||||||
2 | 9-201 of this Act, but nothing in this subsection (c) is | ||||||
3 | intended to limit the Commission's authority under Article IX | ||||||
4 | and other provisions of this Act to initiate an investigation | ||||||
5 | of a participating utility's performance-based formula rate | ||||||
6 | tariff, provided that any such changes shall be consistent with | ||||||
7 | paragraphs (1) through (6) of this subsection (c). Any change | ||||||
8 | ordered by the Commission shall be made at the same time new | ||||||
9 | rates take effect following the Commission's next order | ||||||
10 | pursuant to subsection (d) of this Section, provided that the | ||||||
11 | new rates take effect no less than 30 days after the date on | ||||||
12 | which the Commission issues an order adopting the change. | ||||||
13 | A participating utility that files a tariff pursuant to | ||||||
14 | this subsection (c) must submit a one-time $200,000 filing fee | ||||||
15 | at the time the Chief Clerk of the Commission accepts the | ||||||
16 | filing, which shall be a recoverable expense. | ||||||
17 | In the event the performance-based formula rate is | ||||||
18 | terminated, the then current rates shall remain in effect until | ||||||
19 | such time as new rates are set pursuant to Article IX of this | ||||||
20 | Act, subject to retroactive rate adjustment, with interest, to | ||||||
21 | reconcile rates charged with actual costs. At such time that | ||||||
22 | the performance-based formula rate is terminated, the | ||||||
23 | participating utility's voluntary commitments and obligations | ||||||
24 | under subsection (b) of this Section shall immediately | ||||||
25 | terminate, except for the utility's obligation to pay an amount | ||||||
26 | already owed to the fund for training grants pursuant to a |
| |||||||
| |||||||
1 | Commission order issued under subsection (b) of this Section. | ||||||
2 | (d) Subsequent to the Commission's issuance of an order | ||||||
3 | approving the utility's performance-based formula rate | ||||||
4 | structure and protocols, and initial rates under subsection (c) | ||||||
5 | of this Section, the utility shall file, on or before May 1 of | ||||||
6 | each year, with the Chief Clerk of the Commission its updated | ||||||
7 | cost inputs to the performance-based formula rate for the | ||||||
8 | applicable rate year and the corresponding new charges. Each | ||||||
9 | such filing shall conform to the following requirements and | ||||||
10 | include the following information: | ||||||
11 | (1) The inputs to the performance-based formula rate | ||||||
12 | for the applicable rate year shall be based on final | ||||||
13 | historical data reflected in the utility's most recently | ||||||
14 | filed annual FERC Form 1 plus projected plant additions and | ||||||
15 | correspondingly updated depreciation reserve and expense | ||||||
16 | for the calendar year in which the inputs are filed. The | ||||||
17 | filing shall also include a reconciliation of the revenue | ||||||
18 | requirement that was in effect for the prior rate year (as | ||||||
19 | set by the cost inputs for the prior rate year) with the | ||||||
20 | actual revenue requirement for the prior rate year | ||||||
21 | (determined using a year-end rate base) that uses amounts | ||||||
22 | reflected in the applicable FERC Form 1 that reports the | ||||||
23 | actual costs for the prior rate year. Any over-collection | ||||||
24 | or under-collection indicated by such reconciliation shall | ||||||
25 | be reflected as a credit against, or recovered as an | ||||||
26 | additional charge to, respectively, with interest |
| |||||||
| |||||||
1 | calculated at a rate equal to the utility's weighted | ||||||
2 | average cost of capital approved by the Commission for the | ||||||
3 | prior rate year, the charges for the applicable rate year. | ||||||
4 | Provided, however, that the first such reconciliation | ||||||
5 | shall be for the calendar year in which the utility files | ||||||
6 | its performance-based formula rate tariff pursuant to | ||||||
7 | subsection (c) of this Section and shall reconcile (i) the | ||||||
8 | revenue requirement or requirements established by the | ||||||
9 | rate order or orders in effect from time to time during | ||||||
10 | such calendar year (weighted, as applicable) with (ii) the | ||||||
11 | revenue requirement determined using a year-end rate base | ||||||
12 | for that calendar year calculated pursuant to the | ||||||
13 | performance-based formula rate using (A) actual costs for | ||||||
14 | that year as reflected in the applicable FERC Form 1, and | ||||||
15 | (B) for the first such reconciliation only, the cost of | ||||||
16 | equity, which shall be calculated as the sum of 590 basis | ||||||
17 | points plus the average for the applicable calendar year of | ||||||
18 | the monthly average yields of 30-year U.S. Treasury bonds | ||||||
19 | published by the Board of Governors of the Federal Reserve | ||||||
20 | System in its weekly H.15 Statistical Release or successor | ||||||
21 | publication. The first such reconciliation is not intended | ||||||
22 | to provide for the recovery of costs previously excluded | ||||||
23 | from rates based on a prior Commission order finding of | ||||||
24 | imprudence or unreasonableness. Each reconciliation shall | ||||||
25 | be certified by the participating utility in the same | ||||||
26 | manner that FERC Form 1 is certified. The filing shall also |
| |||||||
| |||||||
1 | include the charge or credit, if any, resulting from the | ||||||
2 | calculation required by paragraph (6) of subsection (c) of | ||||||
3 | this Section. | ||||||
4 | Notwithstanding anything that may be to the contrary, | ||||||
5 | the intent of the reconciliation is to ultimately reconcile | ||||||
6 | the revenue requirement reflected in rates for each | ||||||
7 | calendar year, beginning with the calendar year in which | ||||||
8 | the utility files its performance-based formula rate | ||||||
9 | tariff pursuant to subsection (c) of this Section, with | ||||||
10 | what the revenue requirement determined using a year-end | ||||||
11 | rate base for the applicable calendar year would have been | ||||||
12 | had the actual cost information for the applicable calendar | ||||||
13 | year been available at the filing date. | ||||||
14 | (2) The new charges shall take effect beginning on the | ||||||
15 | first billing day of the following January billing period | ||||||
16 | and remain in effect through the last billing day of the | ||||||
17 | next December billing period regardless of whether the | ||||||
18 | Commission enters upon a hearing pursuant to this | ||||||
19 | subsection (d). | ||||||
20 | (3) The filing shall include relevant and necessary | ||||||
21 | data and documentation for the applicable rate year that is | ||||||
22 | consistent with the Commission's rules applicable to a | ||||||
23 | filing for a general increase in rates or any rules adopted | ||||||
24 | by the Commission to implement this Section. Normalization | ||||||
25 | adjustments shall not be required. Notwithstanding any | ||||||
26 | other provision of this Section or Act or any rule or other |
| |||||||
| |||||||
1 | requirement adopted by the Commission, a participating | ||||||
2 | utility that is a combination utility with more than one | ||||||
3 | rate zone shall not be required to file a separate set of | ||||||
4 | such data and documentation for each rate zone and may | ||||||
5 | combine such data and documentation into a single set of | ||||||
6 | schedules. | ||||||
7 | Within 45 days after the utility files its annual update of | ||||||
8 | cost inputs to the performance-based formula rate, the | ||||||
9 | Commission shall have the authority, either upon complaint or | ||||||
10 | its own initiative, but with reasonable notice, to enter upon a | ||||||
11 | hearing concerning the prudence and reasonableness of the costs | ||||||
12 | incurred by the utility to be recovered during the applicable | ||||||
13 | rate year that are reflected in the inputs to the | ||||||
14 | performance-based formula rate derived from the utility's FERC | ||||||
15 | Form 1. During the course of the hearing, each objection shall | ||||||
16 | be stated with particularity and evidence provided in support | ||||||
17 | thereof, after which the utility shall have the opportunity to | ||||||
18 | rebut the evidence. Discovery shall be allowed consistent with | ||||||
19 | the Commission's Rules of Practice, which Rules shall be | ||||||
20 | enforced by the Commission or the assigned hearing examiner. | ||||||
21 | The Commission shall apply the same evidentiary standards, | ||||||
22 | including, but not limited to, those concerning the prudence | ||||||
23 | and reasonableness of the costs incurred by the utility, in the | ||||||
24 | hearing as it would apply in a hearing to review a filing for a | ||||||
25 | general increase in rates under Article IX of this Act. The | ||||||
26 | Commission shall not, however, have the authority in a |
| |||||||
| |||||||
1 | proceeding under this subsection (d) to consider or order any | ||||||
2 | changes to the structure or protocols of the performance-based | ||||||
3 | formula rate approved pursuant to subsection (c) of this | ||||||
4 | Section. In a proceeding under this subsection (d), the | ||||||
5 | Commission shall enter its order no later than the earlier of | ||||||
6 | 240 days after the utility's filing of its annual update of | ||||||
7 | cost inputs to the performance-based formula rate or December | ||||||
8 | 31. The Commission's determinations of the prudence and | ||||||
9 | reasonableness of the costs incurred for the applicable | ||||||
10 | calendar year shall be final upon entry of the Commission's | ||||||
11 | order and shall not be subject to reopening, reexamination, or | ||||||
12 | collateral attack in any other Commission proceeding, case, | ||||||
13 | docket, order, rule or regulation, provided, however, that | ||||||
14 | nothing in this subsection (d) shall prohibit a party from | ||||||
15 | petitioning the Commission to rehear or appeal to the courts | ||||||
16 | the order pursuant to the provisions of this Act. | ||||||
17 | In the event the Commission does not, either upon complaint | ||||||
18 | or its own initiative, enter upon a hearing within 45 days | ||||||
19 | after the utility files the annual update of cost inputs to its | ||||||
20 | performance-based formula rate, then the costs incurred for the | ||||||
21 | applicable calendar year shall be deemed prudent and | ||||||
22 | reasonable, and the filed charges shall not be subject to | ||||||
23 | reopening, reexamination, or collateral attack in any other | ||||||
24 | proceeding, case, docket, order, rule, or regulation. | ||||||
25 | A participating utility's first filing of the updated cost | ||||||
26 | inputs, and any Commission investigation of such inputs |
| |||||||
| |||||||
1 | pursuant to this subsection (d) shall proceed notwithstanding | ||||||
2 | the fact that the Commission's investigation under subsection | ||||||
3 | (c) of this Section is still pending and notwithstanding any | ||||||
4 | other law, order, rule, or Commission practice to the contrary. | ||||||
5 | (e) Nothing in subsections (c) or (d) of this Section shall | ||||||
6 | prohibit the Commission from investigating, or a participating | ||||||
7 | utility from filing, revenue-neutral tariff changes related to | ||||||
8 | rate design of a performance-based formula rate that has been | ||||||
9 | placed into effect for the utility. Following approval of a | ||||||
10 | participating utility's performance-based formula rate tariff | ||||||
11 | pursuant to subsection (c) of this Section, the utility shall | ||||||
12 | make a filing with the Commission within one year after the | ||||||
13 | effective date of the performance-based formula rate tariff | ||||||
14 | that proposes changes to the tariff to incorporate the findings | ||||||
15 | of any final rate design orders of the Commission applicable to | ||||||
16 | the participating utility and entered subsequent to the | ||||||
17 | Commission's approval of the tariff. The Commission shall, | ||||||
18 | after notice and hearing, enter its order approving, or | ||||||
19 | approving with modification, the proposed changes to the | ||||||
20 | performance-based formula rate tariff within 240 days after the | ||||||
21 | utility's filing. Following such approval, the utility shall | ||||||
22 | make a filing with the Commission during each subsequent 3-year | ||||||
23 | period that either proposes revenue-neutral tariff changes or | ||||||
24 | re-files the existing tariffs without change, which shall | ||||||
25 | present the Commission with an opportunity to suspend the | ||||||
26 | tariffs and consider revenue-neutral tariff changes related to |
| |||||||
| |||||||
1 | rate design. | ||||||
2 | (f) Within 30 days after the filing of a tariff pursuant to | ||||||
3 | subsection (c) of this Section, each participating utility | ||||||
4 | shall develop and file with the Commission multi-year metrics | ||||||
5 | designed to achieve, ratably (i.e., in equal segments) over a | ||||||
6 | 10-year period, improvement over baseline performance values | ||||||
7 | as follows: | ||||||
8 | (1) Twenty percent improvement in the System Average | ||||||
9 | Interruption Frequency Index, using a baseline of the | ||||||
10 | average of the data from 2001 through 2010. | ||||||
11 | (2) Fifteen percent improvement in the system Customer | ||||||
12 | Average Interruption Duration Index, using a baseline of | ||||||
13 | the average of the data from 2001 through 2010. | ||||||
14 | (3) For a participating utility other than a | ||||||
15 | combination utility, 20% improvement in the System Average | ||||||
16 | Interruption Frequency Index for its Southern Region, | ||||||
17 | using a baseline of the average of the data from 2001 | ||||||
18 | through 2010. For purposes of this paragraph (3), Southern | ||||||
19 | Region shall have the meaning set forth in the | ||||||
20 | participating utility's most recent report filed pursuant | ||||||
21 | to Section 16-125 of this Act. | ||||||
22 | (3.5) For a participating utility other than a | ||||||
23 | combination utility, 20% improvement in the System Average | ||||||
24 | Interruption Frequency Index for its Northeastern Region, | ||||||
25 | using a baseline of the average of the data from 2001 | ||||||
26 | through 2010. For purposes of this paragraph (3.5), |
| |||||||
| |||||||
1 | Northeastern Region shall have the meaning set forth in the | ||||||
2 | participating utility's most recent report filed pursuant | ||||||
3 | to Section 16-125 of this Act. | ||||||
4 | (4) Seventy-five percent improvement in the total | ||||||
5 | number of customers who exceed the service reliability | ||||||
6 | targets as set forth in subparagraphs (A) through (C) of | ||||||
7 | paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part | ||||||
8 | 411.140 as of May 1, 2011, using 2010 as the baseline year. | ||||||
9 | (5) Reduction in issuance of estimated electric bills: | ||||||
10 | 90% improvement for a participating utility other than a | ||||||
11 | combination utility, and 56% improvement for a | ||||||
12 | participating utility that is a combination utility, using | ||||||
13 | a baseline of the average number of estimated bills for the | ||||||
14 | years 2008 through 2010. | ||||||
15 | (6) Consumption on inactive meters: 90% improvement | ||||||
16 | for a participating utility other than a combination | ||||||
17 | utility, and 56% improvement for a participating utility | ||||||
18 | that is a combination utility, using a baseline of the | ||||||
19 | average unbilled kilowatthours for the years 2009 and 2010. | ||||||
20 | (7) Unaccounted for energy: 50% improvement for a | ||||||
21 | participating utility other than a combination utility | ||||||
22 | using a baseline of the non-technical line loss unaccounted | ||||||
23 | for energy kilowatthours for the year 2009. | ||||||
24 | (8) Uncollectible expense: reduce uncollectible | ||||||
25 | expense by at least $30,000,000 for a participating utility | ||||||
26 | other than a combination utility and by at least $3,500,000 |
| |||||||
| |||||||
1 | for a participating utility that is a combination utility, | ||||||
2 | using a baseline of the average uncollectible expense for | ||||||
3 | the years 2008 through 2010. | ||||||
4 | (9) Opportunities for minority-owned and female-owned | ||||||
5 | business enterprises: design a performance metric | ||||||
6 | regarding the creation of opportunities for minority-owned | ||||||
7 | and female-owned business enterprises consistent with | ||||||
8 | State and federal law using a base performance value of the | ||||||
9 | percentage of the participating utility's capital | ||||||
10 | expenditures that were paid to minority-owned and | ||||||
11 | female-owned business enterprises in 2010. | ||||||
12 | (10) Achieving cost-effective energy efficiency | ||||||
13 | savings consistent with Section 8-103 of this Act. By | ||||||
14 | January 1, 2018, each participating utility shall file with | ||||||
15 | the Commission a proposed set of performance metrics | ||||||
16 | designed to align financial rewards with the utility's | ||||||
17 | performance relative to the goal provided in Section 8-103 | ||||||
18 | of this Act. | ||||||
19 | (11) Improve load shape by achieving a 20% reduction in | ||||||
20 | peak load by January 1, 2025 as compared to the baseline | ||||||
21 | year of 2009 through annual incremental reductions. | ||||||
22 | The definitions set forth in 83 Ill. Admin. Code Part | ||||||
23 | 411.20 as of May 1, 2011 shall be used for purposes of | ||||||
24 | calculating performance under paragraphs (1) through (3.5) of | ||||||
25 | this subsection (f), provided, however, that the participating | ||||||
26 | utility may exclude up to 9 extreme weather event days from |
| |||||||
| |||||||
1 | such calculation for each year, and provided further that the
| ||||||
2 | participating utility shall exclude 9 extreme weather event | ||||||
3 | days when calculating each year of the baseline period to the | ||||||
4 | extent that there are 9 such days in a given year of the | ||||||
5 | baseline period. For purposes of this Section, an extreme | ||||||
6 | weather event day is a 24-hour calendar day (beginning at 12:00 | ||||||
7 | a.m. and ending at 11:59 p.m.) during which any weather event | ||||||
8 | (e.g., storm, tornado) caused interruptions for 10,000 or more | ||||||
9 | of the participating utility's customers for 3 hours or more. | ||||||
10 | If there are more than 9 extreme weather event days in a year, | ||||||
11 | then the utility may choose no more than 9 extreme weather | ||||||
12 | event days to exclude, provided that the same extreme weather | ||||||
13 | event days are excluded from each of the calculations performed | ||||||
14 | under paragraphs (1) through (3.5) of this subsection (f). | ||||||
15 | The metrics shall include incremental performance goals | ||||||
16 | for each year of the 10-year period, which shall be designed to | ||||||
17 | demonstrate that the utility is on track to achieve the | ||||||
18 | performance goal in each category at the end of the 10-year | ||||||
19 | period. The utility shall elect when the 10-year period shall | ||||||
20 | commence for the metrics set forth in subparagraphs (1) through | ||||||
21 | (4) and (9) of this subsection (f), provided that it begins no | ||||||
22 | later than 14 months following the date on which the utility | ||||||
23 | begins investing pursuant to subsection (b) of this Section, | ||||||
24 | and when the 10-year period shall commence for the metrics set | ||||||
25 | forth in subparagraphs (5) through (8) of this subsection (f), | ||||||
26 | provided that it begins no later than 14 months following the |
| |||||||
| |||||||
1 | date on which the Commission enters its order approving the | ||||||
2 | utility's Advanced Metering Infrastructure Deployment Plan | ||||||
3 | pursuant to subsection (c) of Section 16-108.6 of this Act. | ||||||
4 | The metrics and performance goals set forth in | ||||||
5 | subparagraphs (5) through (8) of this subsection (f) are based | ||||||
6 | on the assumptions that the participating utility may fully | ||||||
7 | implement the technology described in subsection (b) of this | ||||||
8 | Section, including utilizing the full functionality of such | ||||||
9 | technology and that there is no requirement for personal | ||||||
10 | on-site notification. If the utility is unable to meet the | ||||||
11 | metrics and performance goals set forth in subparagraphs (5) | ||||||
12 | through (8) of this subsection (f) for such reasons, and the | ||||||
13 | Commission so finds after notice and hearing, then the utility | ||||||
14 | shall be excused from compliance, but only to the limited | ||||||
15 | extent achievement of the affected metrics and performance | ||||||
16 | goals was hindered by the less than full implementation. | ||||||
17 | (f-5) The financial penalties applicable to the metrics | ||||||
18 | described in subparagraphs (1) through (8) of subsection (f) of | ||||||
19 | this Section, as applicable, shall be applied through an | ||||||
20 | adjustment to the participating utility's return on equity of | ||||||
21 | no more than a total of 30 basis points in each of the first 3 | ||||||
22 | years, of no more than a total of 34 basis points
in each of the | ||||||
23 | 3 years thereafter, and of no more than a total of 38 basis | ||||||
24 | points in each
of the 4 years thereafter, as follows: | ||||||
25 | (1) With respect to each of the incremental annual | ||||||
26 | performance goals established pursuant to paragraph (1) of |
| |||||||
| |||||||
1 | subsection (f) of this Section, | ||||||
2 | (A) for each year that a participating utility | ||||||
3 | other than a combination utility does not achieve the | ||||||
4 | annual goal, the participating utility's return on | ||||||
5 | equity shall be reduced as
follows: during years 1 | ||||||
6 | through 3, by 5 basis points; during years 4 through 6, | ||||||
7 | by 6 basis points; and during years 7 through 10, by 7 | ||||||
8 | basis points; and | ||||||
9 | (B) for each year that a participating utility that | ||||||
10 | is a combination utility does not achieve the annual | ||||||
11 | goal, the participating utility's return on equity | ||||||
12 | shall be reduced as follows: during years 1 through 3, | ||||||
13 | by 10 basis points; during years 4 through 6, by 12
| ||||||
14 | basis points; and during years 7 through 10, by 14 | ||||||
15 | basis points. | ||||||
16 | (2) With respect to each of the incremental annual | ||||||
17 | performance goals established pursuant to paragraph (2) of | ||||||
18 | subsection (f) of this Section, for each year that the | ||||||
19 | participating utility does not achieve each such goal, the | ||||||
20 | participating utility's return on equity shall be reduced | ||||||
21 | as follows: during years 1 through 3, by 5 basis points; | ||||||
22 | during years 4
through 6, by 6 basis points; and during | ||||||
23 | years 7 through 10, by 7 basis points. | ||||||
24 | (3) With respect to each of the incremental annual | ||||||
25 | performance goals established
pursuant to paragraphs (3) | ||||||
26 | and (3.5) of subsection (f) of this Section, for each year |
| |||||||
| |||||||
1 | that a participating utility other than a combination | ||||||
2 | utility does not achieve both such
goals, the participating | ||||||
3 | utility's return on equity shall be reduced as follows: | ||||||
4 | during years 1 through 3, by 5 basis points; during years 4 | ||||||
5 | through 6, by 6 basis points; and during years 7 through | ||||||
6 | 10, by 7 basis points. | ||||||
7 | (4) With respect to each of the incremental annual | ||||||
8 | performance goals established
pursuant to paragraph (4) of | ||||||
9 | subsection (f) of this Section, for each year that the | ||||||
10 | participating utility does not achieve each such goal, the | ||||||
11 | participating utility's return
on equity shall be reduced | ||||||
12 | as follows: during years 1 through 3, by 5 basis points;
| ||||||
13 | during years 4 through 6, by 6 basis points; and during | ||||||
14 | years 7 through 10, by 7 basis points. | ||||||
15 | (5) With respect to each of the incremental annual | ||||||
16 | performance goals established pursuant to subparagraph (5) | ||||||
17 | of subsection (f) of this Section, for each year that the | ||||||
18 | participating utility does not achieve at least 95% of each | ||||||
19 | such goal, the participating utility's return on equity | ||||||
20 | shall be reduced by 5 basis points for each such unachieved | ||||||
21 | goal. | ||||||
22 | (6) With respect to each of the incremental annual | ||||||
23 | performance goals established pursuant to paragraphs (6), | ||||||
24 | (7), and (8) of subsection (f) of this Section, as | ||||||
25 | applicable, which together measure non-operational | ||||||
26 | customer savings and benefits
relating to the |
| |||||||
| |||||||
1 | implementation of the Advanced Metering Infrastructure | ||||||
2 | Deployment
Plan, as defined in Section 16-108.6 of this | ||||||
3 | Act, the performance under each such goal shall be | ||||||
4 | calculated in terms of the percentage of the goal achieved. | ||||||
5 | The percentage of goal achieved for each of the goals shall | ||||||
6 | be aggregated, and an average percentage value calculated, | ||||||
7 | for each year of the 10-year period. If the utility does | ||||||
8 | not achieve an average percentage value in a given year of | ||||||
9 | at least 95%, the participating utility's return on equity | ||||||
10 | shall be reduced by 5 basis points. | ||||||
11 | The financial penalties shall be applied as described in | ||||||
12 | this subsection (f-5) for the 12-month period in which the | ||||||
13 | deficiency occurred through a separate tariff mechanism, which | ||||||
14 | shall be filed by the utility together with its metrics. In the | ||||||
15 | event the formula rate tariff established pursuant to | ||||||
16 | subsection (c) of this Section terminates, the utility's | ||||||
17 | obligations under subsection (f) of this Section and this | ||||||
18 | subsection (f-5) shall also terminate, provided, however, that | ||||||
19 | the tariff mechanism established pursuant to subsection (f) of | ||||||
20 | this Section and this subsection (f-5) shall remain in effect | ||||||
21 | until any penalties due and owing at the time of such | ||||||
22 | termination are applied. | ||||||
23 | The Commission shall, after notice and hearing, enter an | ||||||
24 | order within 120 days after the metrics are filed approving, or | ||||||
25 | approving with modification, a participating utility's tariff | ||||||
26 | or mechanism to satisfy the metrics set forth in subsection (f) |
| |||||||
| |||||||
1 | of this Section. On June 1 of each subsequent year, each | ||||||
2 | participating utility shall file a report with the Commission | ||||||
3 | that includes, among other things, a description of how the | ||||||
4 | participating utility performed under each metric and an | ||||||
5 | identification of any extraordinary events that adversely | ||||||
6 | impacted the utility's performance. Whenever a participating | ||||||
7 | utility does not satisfy the metrics required pursuant to | ||||||
8 | subsection (f) of this Section, the Commission shall, after | ||||||
9 | notice and hearing, enter an order approving financial | ||||||
10 | penalties in accordance with this subsection (f-5). The | ||||||
11 | Commission-approved financial penalties shall be applied | ||||||
12 | beginning with the next rate year. Nothing in this Section | ||||||
13 | shall authorize the Commission to reduce or otherwise obviate | ||||||
14 | the imposition of financial penalties for failing to achieve | ||||||
15 | one or more of the metrics established pursuant to subparagraph | ||||||
16 | (1) through (4) of subsection (f) of this Section. | ||||||
17 | (g) On or before July 31, 2014, each participating utility | ||||||
18 | shall file a report with the Commission that sets forth the | ||||||
19 | average annual increase in the average amount paid per | ||||||
20 | kilowatthour for residential eligible retail customers, | ||||||
21 | exclusive of the effects of energy efficiency programs, | ||||||
22 | comparing the 12-month period ending May 31, 2012; the 12-month | ||||||
23 | period ending May 31, 2013; and the 12-month period ending May | ||||||
24 | 31, 2014. For a participating utility that is a combination | ||||||
25 | utility with more than one rate zone, the weighted average | ||||||
26 | aggregate increase shall be provided. The report shall be filed |
| |||||||
| |||||||
1 | together with a statement from an independent auditor attesting | ||||||
2 | to the accuracy of the report. The cost of the independent | ||||||
3 | auditor shall be borne by the participating utility and shall | ||||||
4 | not be a recoverable expense. "The average amount paid per | ||||||
5 | kilowatthour" shall be based on the participating utility's | ||||||
6 | tariffed rates actually in effect and shall not be calculated | ||||||
7 | using any hypothetical rate or adjustments to actual charges | ||||||
8 | (other than as specified for energy efficiency) as an input. | ||||||
9 | In the event that the average annual increase exceeds 2.5% | ||||||
10 | as calculated pursuant to this subsection (g), then Sections | ||||||
11 | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other | ||||||
12 | than this subsection, shall be inoperative as they relate to | ||||||
13 | the utility and its service area as of the date of the report | ||||||
14 | due to be submitted pursuant to this subsection and the utility | ||||||
15 | shall no longer be eligible to annually update the | ||||||
16 | performance-based formula rate tariff pursuant to subsection | ||||||
17 | (d) of this Section. In such event, the then current rates | ||||||
18 | shall remain in effect until such time as new rates are set | ||||||
19 | pursuant to Article IX of this Act, subject to retroactive | ||||||
20 | adjustment, with interest, to reconcile rates charged with | ||||||
21 | actual costs, and the participating utility's voluntary | ||||||
22 | commitments and obligations under subsection (b) of this | ||||||
23 | Section shall immediately terminate, except for the utility's | ||||||
24 | obligation to pay an amount already owed to the fund for | ||||||
25 | training grants pursuant to a Commission order issued under | ||||||
26 | subsection (b) of this Section. |
| |||||||
| |||||||
1 | In the event that the average annual increase is 2.5% or | ||||||
2 | less as calculated pursuant to this subsection (g), then the | ||||||
3 | performance-based formula rate shall remain in effect as set | ||||||
4 | forth in this Section. | ||||||
5 | For purposes of this Section, the amount per kilowatthour | ||||||
6 | means the total amount paid for electric service expressed on a | ||||||
7 | per kilowatthour basis, and the total amount paid for electric | ||||||
8 | service includes without limitation amounts paid for supply, | ||||||
9 | transmission, distribution, surcharges, and add-on taxes | ||||||
10 | exclusive of any increases in taxes or new taxes imposed after | ||||||
11 | the effective date of this amendatory Act of the 97th General | ||||||
12 | Assembly. For purposes of this Section, "eligible retail | ||||||
13 | customers" shall have the meaning set forth in Section 16-111.5 | ||||||
14 | of this Act. | ||||||
15 | The fact that this Section becomes inoperative as set forth | ||||||
16 | in this subsection shall not be construed to mean that the | ||||||
17 | Commission may reexamine or otherwise reopen prudence or | ||||||
18 | reasonableness determinations already made. | ||||||
19 | (h) Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of | ||||||
20 | this Act, other than this subsection, are inoperative after | ||||||
21 | December 31, 2017 for every participating utility, after which | ||||||
22 | time a participating utility shall no longer be eligible to | ||||||
23 | annually update the performance-based formula rate tariff | ||||||
24 | pursuant to subsection (d) of this Section. At such time, the | ||||||
25 | then current rates shall remain in effect until such time as | ||||||
26 | new rates are set pursuant to Article IX of this Act, subject |
| |||||||
| |||||||
1 | to retroactive adjustment, with interest, to reconcile rates | ||||||
2 | charged with actual costs. | ||||||
3 | By December 31, 2017, the Commission shall prepare and file | ||||||
4 | with the General Assembly a report on the infrastructure | ||||||
5 | program and the performance-based formula rate. The report | ||||||
6 | shall include the change in the average amount per kilowatthour | ||||||
7 | paid by residential customers between June 1, 2011 and May 31, | ||||||
8 | 2017. If the change in the total average rate paid exceeds 2.5% | ||||||
9 | compounded annually, the Commission shall include in the report | ||||||
10 | an analysis that shows the portion of the change due to the | ||||||
11 | delivery services component and the portion of the change due | ||||||
12 | to the supply component of the rate. The report shall include | ||||||
13 | separate sections for each participating utility. | ||||||
14 | In the event Sections 16-108.5, 16-108.6, 16-108.7, and | ||||||
15 | 16-108.8 of this Act do not become inoperative after December | ||||||
16 | 31, 2017, then these Sections are inoperative after December | ||||||
17 | 31, 2022 for every participating utility, after which time a | ||||||
18 | participating utility shall no longer be eligible to annually | ||||||
19 | update the performance-based formula rate tariff pursuant to | ||||||
20 | subsection (d) of this Section. At such time, the then current | ||||||
21 | rates shall remain in effect until such time as new rates are | ||||||
22 | set pursuant to Article IX of this Act, subject to retroactive | ||||||
23 | adjustment, with interest, to reconcile rates charged with | ||||||
24 | actual costs. | ||||||
25 | The fact that this Section becomes inoperative as set forth | ||||||
26 | in this subsection shall not be construed to mean that the |
| |||||||
| |||||||
1 | Commission may reexamine or otherwise reopen prudence or | ||||||
2 | reasonableness determinations already made. The fact that this | ||||||
3 | Section becomes inoperative, as set forth in this Section, | ||||||
4 | shall not eliminate a utility's obligations under Section 8-103 | ||||||
5 | of this Act. | ||||||
6 | (i) While a participating utility may use, develop, and | ||||||
7 | maintain broadband systems and the delivery of broadband | ||||||
8 | services, voice-over-internet-protocol services, | ||||||
9 | telecommunications services, and cable and video programming | ||||||
10 | services for use in providing delivery services and Smart Grid | ||||||
11 | functionality or application to its retail customers, | ||||||
12 | including, but not limited to, the installation, | ||||||
13 | implementation and maintenance of Smart Grid electric system | ||||||
14 | upgrades as defined in Section 16-108.6 of this Act, a | ||||||
15 | participating utility is prohibited from offering to its retail | ||||||
16 | customers broadband services or the delivery of broadband | ||||||
17 | services, voice-over-internet-protocol services, | ||||||
18 | telecommunications services, or cable or video programming | ||||||
19 | services, unless they are part of a service directly related to | ||||||
20 | delivery services or Smart Grid functionality or applications | ||||||
21 | as defined in Section 16-108.6 of this Act, and from recovering | ||||||
22 | the costs of such offerings from retail customers. | ||||||
23 | (j) Nothing in this Section is intended to legislatively | ||||||
24 | overturn the opinion issued in Commonwealth Edison Co. v. Ill. | ||||||
25 | Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, | ||||||
26 | 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. |
| |||||||
| |||||||
1 | Ct. 2d Dist. Sept. 30, 2010). This amendatory Act of the 97th | ||||||
2 | General Assembly shall not be construed as creating a contract | ||||||
3 | between the General Assembly and the participating utility, and | ||||||
4 | shall not establish a property right in the participating | ||||||
5 | utility.
| ||||||
6 | (k) The changes made in subsections (c) and (d) of this | ||||||
7 | Section by this amendatory Act of the 98th General Assembly are | ||||||
8 | intended to be a restatement and clarification of existing law, | ||||||
9 | and intended to give binding effect to the provisions of House | ||||||
10 | Resolution 1157 adopted by the House of Representatives of the | ||||||
11 | 97th General Assembly and Senate Resolution 821 adopted by the | ||||||
12 | Senate of the 97th General Assembly that are reflected in | ||||||
13 | paragraph (3) of this subsection. In addition, this amendatory | ||||||
14 | Act of the 98th General Assembly preempts and supersedes any | ||||||
15 | final Commission orders entered in Docket Nos. 11-0721, | ||||||
16 | 12-0001, 12-0293, and 12-0321 to the extent inconsistent with | ||||||
17 | the amendatory language added to subsections (c) and (d). | ||||||
18 | (1) No earlier than 5 business days after the effective | ||||||
19 | date of this amendatory Act of the 98th General Assembly, | ||||||
20 | each participating utility shall file any tariff changes | ||||||
21 | necessary to implement the amendatory language set forth in | ||||||
22 | subsections (c) and (d) of this Section by this amendatory | ||||||
23 | Act of the 98th General Assembly and a revised revenue | ||||||
24 | requirement under the participating utility's | ||||||
25 | performance-based formula rate. The Commission shall enter | ||||||
26 | a final order approving such tariff changes and revised |
| |||||||
| |||||||
1 | revenue requirement within 21 days after the participating | ||||||
2 | utility's filing. | ||||||
3 | (2) Notwithstanding anything that may be to the | ||||||
4 | contrary, a participating utility may file a tariff to | ||||||
5 | retroactively recover its previously unrecovered actual | ||||||
6 | costs of delivery service that are no longer subject to | ||||||
7 | recovery through a reconciliation adjustment under | ||||||
8 | subsection (d) of this Section. This retroactive recovery | ||||||
9 | shall include any derivative adjustments resulting from | ||||||
10 | the changes to subsections (c) and (d) of this Section by | ||||||
11 | this amendatory Act of the 98th General Assembly. Such | ||||||
12 | tariff shall allow the utility to assess, on current | ||||||
13 | customer bills over a period of 12 monthly billing periods, | ||||||
14 | a charge or credit related to those unrecovered costs with | ||||||
15 | interest at the utility's weighted average cost of capital | ||||||
16 | during the period in which those costs were unrecovered. A | ||||||
17 | participating utility may file a tariff that implements a | ||||||
18 | retroactive charge or credit as described in this paragraph | ||||||
19 | for amounts not otherwise included in the tariff filing | ||||||
20 | provided for in paragraph (1) of this subsection (k). The | ||||||
21 | Commission shall enter a final order approving such tariff | ||||||
22 | within 21 days after the participating utility's filing. | ||||||
23 | (3) The tariff changes described in paragraphs (1) and | ||||||
24 | (2) of this subsection (k) shall relate only to, and be | ||||||
25 | consistent with, the following provisions of this | ||||||
26 | amendatory Act of the 98th General Assembly: paragraph (2) |
| |||||||
| |||||||
1 | of subsection (c) regarding year-end capital structure, | ||||||
2 | subparagraph (D) of paragraph (4) of subsection (c) | ||||||
3 | regarding pension assets, and subsection (d) regarding the | ||||||
4 | reconciliation components related to year-end rate base | ||||||
5 | and interest calculated at a rate equal to the utility's | ||||||
6 | weighted average cost of capital. | ||||||
7 | (4) Nothing in this subsection is intended to effect a | ||||||
8 | dismissal of or otherwise affect an appeal from any final | ||||||
9 | Commission orders entered in Docket Nos. 11-0721, 12-0001, | ||||||
10 | 12-0293, and 12-0321 other than to the extent of the | ||||||
11 | amendatory language contained in subsections (c) and (d) of | ||||||
12 | this amendatory Act of the 98th General Assembly. | ||||||
13 | (l) Each participating utility shall be deemed to have been | ||||||
14 | in full compliance with all requirements of subsection (b) of | ||||||
15 | this Section, subsection (c) of this Section, Section 16-108.6 | ||||||
16 | of this Act, and all Commission orders entered pursuant to | ||||||
17 | Sections 16-108.5 and 16-108.6 of this Act, up to and including | ||||||
18 | the effective date of this amendatory Act of the 98th General | ||||||
19 | Assembly. The Commission shall not undertake any investigation | ||||||
20 | of such compliance and no penalty shall be assessed or adverse | ||||||
21 | action taken against a participating utility for noncompliance | ||||||
22 | with Commission orders associated with subsection (b) of this | ||||||
23 | Section, subsection (c) of this Section, and Section 16-108.6 | ||||||
24 | of this Act prior to such date. Each participating utility | ||||||
25 | other than a combination utility shall be permitted, without | ||||||
26 | penalty, a period of 12 months after such effective date to |
| |||||||
| |||||||
1 | take actions required to ensure its infrastructure investment | ||||||
2 | program is in compliance with subsection (b) of this Section | ||||||
3 | and with Section 16-108.6 of this Act. Provided further: | ||||||
4 | (1) if this amendatory Act of the 98th General Assembly | ||||||
5 | takes effect on or before June 15, 2013, the following | ||||||
6 | subparagraphs shall apply to a participating utility other | ||||||
7 | than a combination utility: | ||||||
8 | (A) if the Commission has initiated a proceeding | ||||||
9 | pursuant to subsection (e) of Section 16-108.6 of this | ||||||
10 | Act that is pending as of the effective date of this | ||||||
11 | amendatory Act of the 98th General Assembly, then the | ||||||
12 | order entered in such proceeding shall, after notice | ||||||
13 | and hearing, accelerate the commencement of the meter | ||||||
14 | deployment schedule approved in the final Commission | ||||||
15 | order on rehearing entered in Docket No. 12-0298; | ||||||
16 | (B) if the Commission has entered an order pursuant | ||||||
17 | to subsection (e) of Section 16-108.6 of this Act prior | ||||||
18 | to the effective date of this amendatory Act of the | ||||||
19 | 98th General Assembly that does not accelerate the | ||||||
20 | commencement of the meter deployment schedule approved | ||||||
21 | in the final Commission order on rehearing entered in | ||||||
22 | Docket No. 12-0298, then the utility shall file with | ||||||
23 | the Commission, within 45 days after such effective | ||||||
24 | date, a plan for accelerating the commencement of the | ||||||
25 | utility's meter deployment schedule approved in the | ||||||
26 | final Commission order on rehearing entered in Docket |
| |||||||
| |||||||
1 | No. 12-0298; the Commission shall reopen the | ||||||
2 | proceeding in which it entered its order pursuant to | ||||||
3 | subsection (e) of Section 16-108.6 of this Act and | ||||||
4 | shall, after notice and hearing, enter an amendatory | ||||||
5 | order that approves or approves as modified such | ||||||
6 | accelerated plan within 90 days after the utility's | ||||||
7 | filing; or | ||||||
8 | (C) if the Commission has not initiated a | ||||||
9 | proceeding pursuant to subsection (e) of Section | ||||||
10 | 16-108.6 of this Act prior to the effective date of | ||||||
11 | this amendatory Act of the 98th General Assembly, then | ||||||
12 | the utility shall file with the Commission, within 45 | ||||||
13 | days after such effective date, a plan for accelerating | ||||||
14 | the commencement of the utility's meter deployment | ||||||
15 | schedule approved in the final Commission order on | ||||||
16 | rehearing entered in Docket No. 12-0298 and the | ||||||
17 | Commission shall, after notice and hearing, approve or | ||||||
18 | approve as modified such plan within 90 days after the | ||||||
19 | utility's filing; | ||||||
20 | (2) if this amendatory Act of the 98th General Assembly | ||||||
21 | takes effect after June 15, 2013, then each participating | ||||||
22 | utility other than a combination utility shall file with | ||||||
23 | the Commission, within 45 days after such effective date, a | ||||||
24 | plan for accelerating the commencement of the utility's | ||||||
25 | meter deployment schedule approved in the final Commission | ||||||
26 | order on rehearing entered in Docket No. 12-0298; the |
| |||||||
| |||||||
1 | Commission shall reopen the most recent proceeding in which | ||||||
2 | it entered an order pursuant to subsection (e) of Section | ||||||
3 | 16-108.6 of this Act and within 90 days after the utility's | ||||||
4 | filing shall, after notice and hearing, enter an amendatory | ||||||
5 | order that approves or approves as modified such | ||||||
6 | accelerated plan, provided that if there was no such prior | ||||||
7 | proceeding the Commission shall open a new proceeding and | ||||||
8 | within 90 days after the utility's filing shall, after | ||||||
9 | notice and hearing, enter an order that approves or | ||||||
10 | approves as modified such accelerated plan. | ||||||
11 | Any schedule for meter deployment approved by the | ||||||
12 | Commission pursuant to subparagraphs (1) or (2) of this | ||||||
13 | subsection (l) shall take into consideration procurement times | ||||||
14 | for meters and other equipment and operational issues. Nothing | ||||||
15 | in this amendatory Act of the 98th General Assembly shall | ||||||
16 | shorten or extend the end dates for the 5-year or 10-year | ||||||
17 | periods set forth in subsection (b) of this Section or Section | ||||||
18 | 16-108.6 of this Act. Nothing in this subsection is intended to | ||||||
19 | address whether a participating utility has, or has not, | ||||||
20 | satisfied any or all of the metrics and performance goals | ||||||
21 | established pursuant to subsection (f) of this Section. | ||||||
22 | (m) The provisions of this amendatory Act of the 98th | ||||||
23 | General Assembly are severable under Section 1.31 of the | ||||||
24 | Statute on Statutes. | ||||||
25 | (Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11; | ||||||
26 | 98-15, eff. 5-22-13.) |
| |||||||
| |||||||
1 | (220 ILCS 5/16-108.8) | ||||||
2 | Sec. 16-108.8. Illinois Smart Grid test bed. | ||||||
3 | (a) Within 180 days after the effective date of this | ||||||
4 | amendatory Act of the 97th General Assembly, each participating | ||||||
5 | utility, as defined by Section 16-108.5 of this Act, shall | ||||||
6 | create or otherwise designate a Smart Grid test bed, which may | ||||||
7 | be located at one or more places within the utility's system, | ||||||
8 | for the purposes of allowing for the testing of Smart Grid | ||||||
9 | technologies. The objectives of this test bed shall be to: | ||||||
10 | (1) provide an open, unbiased opportunity for testing | ||||||
11 | programs, technologies, business models, and other Smart | ||||||
12 | Grid-related activities; | ||||||
13 | (2) provide on-grid locations for the testing of | ||||||
14 | potentially innovative Smart Grid-related technologies and | ||||||
15 | services, including but not limited to those funded by the | ||||||
16 | trust or foundation established pursuant to Section | ||||||
17 | 16-108.7 of this Act; | ||||||
18 | (3) facilitate testing of business models or services | ||||||
19 | that help integrate Smart Grid-related technologies into | ||||||
20 | the electric grid, especially those business models that | ||||||
21 | may help promote new products and services for retail | ||||||
22 | customers; | ||||||
23 | (4) offer opportunities to test and showcase Smart Grid | ||||||
24 | technologies and services, especially those likely to | ||||||
25 | support the economic development goals of the State of |
| |||||||
| |||||||
1 | Illinois. | ||||||
2 | (b) The test bed shall reside in one or more locations on | ||||||
3 | the participating utility's network. Such locations shall be | ||||||
4 | chosen by the utility to maximize the opportunity for real-time | ||||||
5 | and real-world testing of Smart Grid technologies and services | ||||||
6 | taking into account the safety and security of the | ||||||
7 | participating utility's grid and grid operations. | ||||||
8 | (c) The participating utility, with input from the Smart | ||||||
9 | Grid Advisory Council established pursuant to Section 16-108.6 | ||||||
10 | of this Act, shall, as part of its filing under subsection (b) | ||||||
11 | of Section 16-108.5, include a plan for the creation, | ||||||
12 | operation, and administration of the test bed. This plan shall | ||||||
13 | address the following: | ||||||
14 | (1) how the utility proposes to comply with each of the | ||||||
15 | objectives set forth in subsection (a) of this Section; | ||||||
16 | (2) the proposed location or locations of the test bed; | ||||||
17 | (3) the process by which the utility will receive, | ||||||
18 | review, and qualify proposals to use the test bed; | ||||||
19 | (4) the criteria by which the utility proposes to | ||||||
20 | qualify proposals to use the test bed, including, but not | ||||||
21 | limited to, safety, reliability, security, customer data | ||||||
22 | security, privacy, and economic development | ||||||
23 | considerations; | ||||||
24 | (5) the engineering and operations support that the | ||||||
25 | utility will provide to test bed users, including provision | ||||||
26 | of customer data; and |
| |||||||
| |||||||
1 | (6) the estimated costs to establish, administer and | ||||||
2 | promote the availability of the test bed. | ||||||
3 | (d) The test bed should be open to all qualified entities | ||||||
4 | wishing to test programs, technologies, business models, and | ||||||
5 | other Smart Grid-related activities, provided that the utility | ||||||
6 | retains control of its grid and operations and may reject any | ||||||
7 | programs, technologies, business models, and other Smart | ||||||
8 | Grid-related activities that threaten the reliability, safety, | ||||||
9 | security, or operations of its network, or that would threaten | ||||||
10 | the security of customer-identifiable data in the judgment of | ||||||
11 | the utility. The number of technologies and entities | ||||||
12 | participating in the test bed at any time may be limited by the | ||||||
13 | utility based on its determination of its ability to maintain a | ||||||
14 | secure, safe, and reliable grid. | ||||||
15 | (e) At a minimum, the test bed shall have the ability to | ||||||
16 | receive live signals from PJM Interconnection LLC or other | ||||||
17 | applicable regional transmission organization, the ability to | ||||||
18 | test new applications in a utility scale environment (to | ||||||
19 | include ramp rate regulations for distributed wind and solar | ||||||
20 | resources), critical peak price response, and market-based | ||||||
21 | power dispatch. | ||||||
22 | (f) At the end of the fourth year of operation the test bed | ||||||
23 | shall be subject to an independent evaluation to determine if | ||||||
24 | the test bed is meeting the objectives of this Section or is | ||||||
25 | likely to meet the objectives in the future. The evaluation | ||||||
26 | shall include the performance of the utility as test bed |
| |||||||
| |||||||
1 | operator. Subject to the findings, the utility and the trust or | ||||||
2 | foundation established pursuant to Section 16-108.7 of this Act | ||||||
3 | may choose to continue operating the test bed. | ||||||
4 | (g) The utility shall be entitled to recover all prudently | ||||||
5 | incurred and reasonable costs associated with evaluation of | ||||||
6 | proposals, engineering, construction, operation, and | ||||||
7 | administration of the test bed through the performance-based | ||||||
8 | formula rate tariff established pursuant to Section 16-108.5 of | ||||||
9 | this Act. | ||||||
10 | (h) The utility is authorized to charge fees to users of | ||||||
11 | the test bed that shall recover the costs associated with the | ||||||
12 | incremental direct costs to the utility associated with | ||||||
13 | administration of the test bed, provided, however, that any | ||||||
14 | such fees collected by the utility shall be used to offset the | ||||||
15 | costs to be recovered pursuant to subsection (g) of this | ||||||
16 | Section. | ||||||
17 | (i) On a quarterly basis, the utility shall provide the | ||||||
18 | trust or foundation established pursuant to Section 16-108.7 of | ||||||
19 | this Act with a report summarizing test bed activities, | ||||||
20 | customers, discoveries, and other information as shall be | ||||||
21 | mutually deemed relevant. | ||||||
22 | (j) To the extent practicable, the utility and trust or | ||||||
23 | foundation established pursuant to Section 16-108.7 of this Act | ||||||
24 | shall jointly pursue resources that enhance the capabilities | ||||||
25 | and capacity of the test bed. | ||||||
26 | (k) If Section 16-108.5 of this Act becomes inoperative |
| |||||||
| |||||||
1 | with respect to one or more participating utilities as set | ||||||
2 | forth in subsection (g) or (h) of that Section, then Sections | ||||||
3 | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | ||||||
4 | become inoperative as to each affected utility and its service | ||||||
5 | area on the same date as Section 16-108.5 become inoperative.
| ||||||
6 | (Source: P.A. 97-616, eff. 10-26-11.) | ||||||
7 | (220 ILCS 5/16-111.5) | ||||||
8 | Sec. 16-111.5. Provisions relating to electricity | ||||||
9 | procurement. | ||||||
10 | (a) An electric utility that on December 31, 2005 served at | ||||||
11 | least 100,000 customers in Illinois shall procure power and | ||||||
12 | energy for its eligible retail customers in accordance with the | ||||||
13 | applicable provisions set forth in Section 1-75 of the Illinois | ||||||
14 | Power Agency Act and this Section. A small multi-jurisdictional | ||||||
15 | electric utility that on December 31, 2005 served less than | ||||||
16 | 100,000 customers in Illinois may elect to procure power and | ||||||
17 | energy for all or a portion of its eligible Illinois retail | ||||||
18 | customers in accordance with the applicable provisions set | ||||||
19 | forth in this Section and Section 1-75 of the Illinois Power | ||||||
20 | Agency Act. This Section shall not apply to a small | ||||||
21 | multi-jurisdictional utility until such time as a small | ||||||
22 | multi-jurisdictional utility requests the Illinois Power | ||||||
23 | Agency to prepare an electricity a procurement plan for its | ||||||
24 | eligible retail customers. "Eligible retail customers" for the | ||||||
25 | purposes of this Section means those retail customers that |
| |||||||
| |||||||
1 | purchase power and energy from the electric utility under | ||||||
2 | fixed-price bundled service tariffs, other than those retail | ||||||
3 | customers whose service is declared or deemed competitive under | ||||||
4 | Section 16-113 and those other customer groups specified in | ||||||
5 | this Section, including self-generating customers, customers | ||||||
6 | electing hourly pricing, or those customers who are otherwise | ||||||
7 | ineligible for fixed-price bundled tariff service. Those | ||||||
8 | customers that are excluded from the definition of "eligible | ||||||
9 | retail customers" shall not be included in the electricity | ||||||
10 | procurement plan load requirements, and the utility shall | ||||||
11 | procure any supply requirements, including capacity, ancillary | ||||||
12 | services, and hourly priced energy, in the applicable markets | ||||||
13 | as needed to serve those customers, provided that the utility | ||||||
14 | may include in its electricity procurement plan load | ||||||
15 | requirements for the load that is associated with those retail | ||||||
16 | customers whose service has been declared or deemed competitive | ||||||
17 | pursuant to Section 16-113 of this Act to the extent that those | ||||||
18 | customers are purchasing power and energy during one of the | ||||||
19 | transition periods identified in subsection (b) of Section | ||||||
20 | 16-113 of this Act. | ||||||
21 | (b) An electricity A procurement plan shall be prepared for | ||||||
22 | each electric utility consistent with the applicable | ||||||
23 | requirements of the Illinois Power Agency Act and this Section. | ||||||
24 | For purposes of this Section, Illinois electric utilities that | ||||||
25 | are affiliated by virtue of a common parent company are | ||||||
26 | considered to be a single electric utility. Small |
| |||||||
| |||||||
1 | multi-jurisdictional utilities may request an electricity a | ||||||
2 | procurement plan for a portion of or all of its Illinois load. | ||||||
3 | Each electricity procurement plan shall analyze the projected | ||||||
4 | balance of supply and demand for eligible retail customers over | ||||||
5 | a 5-year period with the first planning year beginning on June | ||||||
6 | 1 of the year following the year in which the plan is filed. | ||||||
7 | The plan shall specifically identify the wholesale products to | ||||||
8 | be procured following plan approval, and shall follow all the | ||||||
9 | requirements set forth in the Public Utilities Act and all | ||||||
10 | applicable State and federal laws, statutes, rules, or | ||||||
11 | regulations, as well as Commission orders. Nothing in this | ||||||
12 | Section precludes consideration of contracts longer than 5 | ||||||
13 | years and related forecast data. Unless specified otherwise in | ||||||
14 | this Section, in the electricity procurement plan or in the | ||||||
15 | implementing tariff, any procurement occurring in accordance | ||||||
16 | with this plan shall be competitively bid through a request for | ||||||
17 | proposals process. Approval and implementation of the | ||||||
18 | electricity procurement plan shall be subject to review and | ||||||
19 | approval by the Commission according to the provisions set | ||||||
20 | forth in this Section. An electricity A procurement plan shall | ||||||
21 | include each of the following components: | ||||||
22 | (1) Hourly load analysis. This analysis shall include: | ||||||
23 | (i) multi-year historical analysis of hourly | ||||||
24 | loads; | ||||||
25 | (ii) switching trends and competitive retail | ||||||
26 | market analysis; |
| |||||||
| |||||||
1 | (iii) known or projected changes to future loads; | ||||||
2 | and | ||||||
3 | (iv) growth forecasts by customer class. | ||||||
4 | (2) Analysis of the impact of any demand side and | ||||||
5 | renewable energy initiatives. This analysis shall include: | ||||||
6 | (i) the impact of demand response programs and | ||||||
7 | energy efficiency programs, both current and | ||||||
8 | projected; for small multi-jurisdictional utilities, | ||||||
9 | the impact of demand response and energy efficiency | ||||||
10 | programs approved pursuant to Section 8-408 of this | ||||||
11 | Act, both current and projected; and | ||||||
12 | (ii) supply side needs that are projected to be | ||||||
13 | offset by purchases of renewable energy resources, if | ||||||
14 | any. | ||||||
15 | (3) A plan for meeting the expected load requirements | ||||||
16 | that will not be met through preexisting contracts. This | ||||||
17 | plan shall include: | ||||||
18 | (i) definitions of the different Illinois retail | ||||||
19 | customer classes for which supply is being purchased; | ||||||
20 | (ii) the proposed mix of demand-response products | ||||||
21 | for which contracts will be executed during the next | ||||||
22 | year. For small multi-jurisdictional electric | ||||||
23 | utilities that on December 31, 2005 served fewer than | ||||||
24 | 100,000 customers in Illinois, these shall be defined | ||||||
25 | as demand-response products offered in an energy | ||||||
26 | efficiency plan approved pursuant to Section 8-408 of |
| |||||||
| |||||||
1 | this Act. The cost-effective demand-response measures | ||||||
2 | shall be procured whenever the cost is lower than | ||||||
3 | procuring comparable capacity products, provided that | ||||||
4 | such products shall: | ||||||
5 | (A) be procured by a demand-response provider | ||||||
6 | from eligible retail customers; | ||||||
7 | (B) at least satisfy the demand-response | ||||||
8 | requirements of the regional transmission | ||||||
9 | organization market in which the utility's service | ||||||
10 | territory is located, including, but not limited | ||||||
11 | to, any applicable capacity or dispatch | ||||||
12 | requirements; | ||||||
13 | (C) provide for customers' participation in | ||||||
14 | the stream of benefits produced by the | ||||||
15 | demand-response products; | ||||||
16 | (D) provide for reimbursement by the | ||||||
17 | demand-response provider of the utility for any | ||||||
18 | costs incurred as a result of the failure of the | ||||||
19 | supplier of such products to perform its | ||||||
20 | obligations thereunder; and | ||||||
21 | (E) meet the same credit requirements as apply | ||||||
22 | to suppliers of capacity, in the applicable | ||||||
23 | regional transmission organization market; | ||||||
24 | (iii) monthly forecasted system supply | ||||||
25 | requirements, including expected minimum, maximum, and | ||||||
26 | average values for the planning period; |
| |||||||
| |||||||
1 | (iv) the proposed mix and selection of standard | ||||||
2 | wholesale products for which contracts will be | ||||||
3 | executed during the next year, separately or in | ||||||
4 | combination, to meet that portion of its load | ||||||
5 | requirements not met through pre-existing contracts, | ||||||
6 | including but not limited to monthly 5 x 16 peak period | ||||||
7 | block energy, monthly off-peak wrap energy, monthly 7 x | ||||||
8 | 24 energy, annual 5 x 16 energy, annual off-peak wrap | ||||||
9 | energy, annual 7 x 24 energy, monthly capacity, annual | ||||||
10 | capacity, peak load capacity obligations, capacity | ||||||
11 | purchase plan, and ancillary services; | ||||||
12 | (v) proposed term structures for each wholesale | ||||||
13 | product type included in the proposed electricity | ||||||
14 | procurement plan portfolio of products; and | ||||||
15 | (vi) an assessment of the price risk, load | ||||||
16 | uncertainty, and other factors that are associated | ||||||
17 | with the proposed electricity procurement plan; this | ||||||
18 | assessment, to the extent possible, shall include an | ||||||
19 | analysis of the following factors: contract terms, | ||||||
20 | time frames for securing products or services, fuel | ||||||
21 | costs, weather patterns, transmission costs, market | ||||||
22 | conditions, and the governmental regulatory | ||||||
23 | environment; the proposed electricity procurement plan | ||||||
24 | shall also identify alternatives for those portfolio | ||||||
25 | measures that are identified as having significant | ||||||
26 | price risk. |
| |||||||
| |||||||
1 | (4) Proposed procedures for balancing loads. The | ||||||
2 | electricity procurement plan shall include, for load | ||||||
3 | requirements included in the electricity procurement plan, | ||||||
4 | the process for (i) hourly balancing of supply and demand | ||||||
5 | and (ii) the criteria for portfolio re-balancing in the | ||||||
6 | event of significant shifts in load. | ||||||
7 | (c) The procurement process set forth in Section 1-75 of | ||||||
8 | the Illinois Power Agency Act and subsection (e) of this | ||||||
9 | Section shall be administered by a procurement administrator | ||||||
10 | and monitored by a procurement monitor. | ||||||
11 | (1) The procurement administrator shall: | ||||||
12 | (i) design the final procurement process in | ||||||
13 | accordance with Section 1-75 of the Illinois Power | ||||||
14 | Agency Act and subsection (e) of this Section following | ||||||
15 | Commission approval of the electricity procurement | ||||||
16 | plan; | ||||||
17 | (ii) develop benchmarks in accordance with | ||||||
18 | subsection (e)(3) to be used to evaluate bids; these | ||||||
19 | benchmarks shall be submitted to the Commission for | ||||||
20 | review and approval on a confidential basis prior to | ||||||
21 | the procurement event; | ||||||
22 | (iii) serve as the interface between the electric | ||||||
23 | utility and suppliers; | ||||||
24 | (iv) manage the bidder pre-qualification and | ||||||
25 | registration process; | ||||||
26 | (v) obtain the electric utilities' agreement to |
| |||||||
| |||||||
1 | the final form of all supply contracts and credit | ||||||
2 | collateral agreements; | ||||||
3 | (vi) administer the request for proposals process; | ||||||
4 | (vii) have the discretion to negotiate to | ||||||
5 | determine whether bidders are willing to lower the | ||||||
6 | price of bids that meet the benchmarks approved by the | ||||||
7 | Commission; any post-bid negotiations with bidders | ||||||
8 | shall be limited to price only and shall be completed | ||||||
9 | within 24 hours after opening the sealed bids and shall | ||||||
10 | be conducted in a fair and unbiased manner; in | ||||||
11 | conducting the negotiations, there shall be no | ||||||
12 | disclosure of any information derived from proposals | ||||||
13 | submitted by competing bidders; if information is | ||||||
14 | disclosed to any bidder, it shall be provided to all | ||||||
15 | competing bidders; | ||||||
16 | (viii) maintain confidentiality of supplier and | ||||||
17 | bidding information in a manner consistent with all | ||||||
18 | applicable laws, rules, regulations, and tariffs; | ||||||
19 | (ix) submit a confidential report to the | ||||||
20 | Commission recommending acceptance or rejection of | ||||||
21 | bids; | ||||||
22 | (x) notify the utility of contract counterparties | ||||||
23 | and contract specifics; and | ||||||
24 | (xi) administer related contingency procurement | ||||||
25 | events. | ||||||
26 | (2) The procurement monitor, who shall be retained by |
| |||||||
| |||||||
1 | the Commission, shall: | ||||||
2 | (i) monitor interactions among the procurement | ||||||
3 | administrator, suppliers, and utility; | ||||||
4 | (ii) monitor and report to the Commission on the | ||||||
5 | progress of the procurement process; | ||||||
6 | (iii) provide an independent confidential report | ||||||
7 | to the Commission regarding the results of the | ||||||
8 | procurement event; | ||||||
9 | (iv) assess compliance with the electricity | ||||||
10 | procurement plans approved by the Commission for each | ||||||
11 | utility that on December 31, 2005 provided electric | ||||||
12 | service to a least 100,000 customers in Illinois and | ||||||
13 | for each small multi-jurisdictional utility that on | ||||||
14 | December 31, 2005 served less than 100,000 customers in | ||||||
15 | Illinois; | ||||||
16 | (v) preserve the confidentiality of supplier and | ||||||
17 | bidding information in a manner consistent with all | ||||||
18 | applicable laws, rules, regulations, and tariffs; | ||||||
19 | (vi) provide expert advice to the Commission and | ||||||
20 | consult with the procurement administrator regarding | ||||||
21 | issues related to procurement process design, rules, | ||||||
22 | protocols, and policy-related matters; and | ||||||
23 | (vii) consult with the procurement administrator | ||||||
24 | regarding the development and use of benchmark | ||||||
25 | criteria, standard form contracts, credit policies, | ||||||
26 | and bid documents. |
| |||||||
| |||||||
1 | (d) Except as provided in subsection (j), the planning | ||||||
2 | process shall be conducted as follows: | ||||||
3 | (1) Beginning in 2008, each Illinois utility procuring | ||||||
4 | power pursuant to this Section shall annually provide a | ||||||
5 | range of load forecasts to the Illinois Power Agency by | ||||||
6 | July 15 of each year, or such other date as may be required | ||||||
7 | by the Commission or Agency. The load forecasts shall cover | ||||||
8 | the 5-year electricity procurement planning period for the | ||||||
9 | next electricity procurement plan and shall include hourly | ||||||
10 | data representing a high-load, low-load and expected-load | ||||||
11 | scenario for the load of the eligible retail customers. The | ||||||
12 | utility shall provide supporting data and assumptions for | ||||||
13 | each of the scenarios.
| ||||||
14 | (2) Beginning in 2008, the Illinois Power Agency shall | ||||||
15 | prepare an electricity a procurement plan by August 15th of | ||||||
16 | each year, or such other date as may be required by the | ||||||
17 | Commission. The electricity procurement plan shall | ||||||
18 | identify the portfolio of demand-response and power and | ||||||
19 | energy products to be procured. Cost-effective | ||||||
20 | demand-response measures shall be procured as set forth in | ||||||
21 | item (iii) of subsection (b) of this Section. Copies of the | ||||||
22 | electricity procurement plan shall be posted and made | ||||||
23 | publicly available on the Agency's and Commission's | ||||||
24 | websites, and copies shall also be provided to each | ||||||
25 | affected electric utility. An affected utility shall have | ||||||
26 | 30 days following the date of posting to provide comment to |
| |||||||
| |||||||
1 | the Agency on the electricity procurement plan. Other | ||||||
2 | interested entities also may comment on the electricity | ||||||
3 | procurement plan. All comments submitted to the Agency | ||||||
4 | shall be specific, supported by data or other detailed | ||||||
5 | analyses, and, if objecting to all or a portion of the | ||||||
6 | electricity procurement plan, accompanied by specific | ||||||
7 | alternative wording or proposals. All comments shall be | ||||||
8 | posted on the Agency's and Commission's websites. During | ||||||
9 | this 30-day comment period, the Agency shall hold at least | ||||||
10 | one public hearing within each utility's service area for | ||||||
11 | the purpose of receiving public comment on the electricity | ||||||
12 | procurement plan. Within 14 days following the end of the | ||||||
13 | 30-day review period, the Agency shall revise the | ||||||
14 | electricity procurement plan as necessary based on the | ||||||
15 | comments received and file the electricity procurement | ||||||
16 | plan with the Commission and post the electricity | ||||||
17 | procurement plan on the websites. | ||||||
18 | (3) Within 5 days after the filing of the electricity | ||||||
19 | procurement plan, any person objecting to the electricity | ||||||
20 | procurement plan shall file an objection with the | ||||||
21 | Commission. Within 10 days after the filing, the Commission | ||||||
22 | shall determine whether a hearing is necessary. The | ||||||
23 | Commission shall enter its order confirming or modifying | ||||||
24 | the electricity procurement plan within 90 days after the | ||||||
25 | filing of the electricity procurement plan by the Illinois | ||||||
26 | Power Agency. |
| |||||||
| |||||||
1 | (4) The Commission shall approve the electricity | ||||||
2 | procurement plan, including expressly the forecast used in | ||||||
3 | the electricity procurement plan, if the Commission | ||||||
4 | determines that it will ensure adequate, reliable, | ||||||
5 | affordable, efficient, and environmentally sustainable | ||||||
6 | electric service at the lowest total cost over time, taking | ||||||
7 | into account any benefits of price stability. | ||||||
8 | (e) The procurement process shall include each of the | ||||||
9 | following components: | ||||||
10 | (1) Solicitation, pre-qualification, and registration | ||||||
11 | of bidders. The procurement administrator shall | ||||||
12 | disseminate information to potential bidders to promote a | ||||||
13 | procurement event, notify potential bidders that the | ||||||
14 | procurement administrator may enter into a post-bid price | ||||||
15 | negotiation with bidders that meet the applicable | ||||||
16 | benchmarks, provide supply requirements, and otherwise | ||||||
17 | explain the competitive procurement process. In addition | ||||||
18 | to such other publication as the procurement administrator | ||||||
19 | determines is appropriate, this information shall be | ||||||
20 | posted on the Illinois Power Agency's and the Commission's | ||||||
21 | websites. The procurement administrator shall also | ||||||
22 | administer the prequalification process, including | ||||||
23 | evaluation of credit worthiness, compliance with | ||||||
24 | procurement rules, and agreement to the standard form | ||||||
25 | contract developed pursuant to paragraph (2) of this | ||||||
26 | subsection (e). The procurement administrator shall then |
| |||||||
| |||||||
1 | identify and register bidders to participate in the | ||||||
2 | procurement event. | ||||||
3 | (2) Standard contract forms and credit terms and | ||||||
4 | instruments. The procurement administrator, in | ||||||
5 | consultation with the utilities, the Commission, and other | ||||||
6 | interested parties and subject to Commission oversight, | ||||||
7 | shall develop and provide standard contract forms for the | ||||||
8 | supplier contracts that meet generally accepted industry | ||||||
9 | practices. Standard credit terms and instruments that meet | ||||||
10 | generally accepted industry practices shall be similarly | ||||||
11 | developed. The procurement administrator shall make | ||||||
12 | available to the Commission all written comments it | ||||||
13 | receives on the contract forms, credit terms, or | ||||||
14 | instruments. If the procurement administrator cannot reach | ||||||
15 | agreement with the applicable electric utility as to the | ||||||
16 | contract terms and conditions, the procurement | ||||||
17 | administrator must notify the Commission of any disputed | ||||||
18 | terms and the Commission shall resolve the dispute. The | ||||||
19 | terms of the contracts shall not be subject to negotiation | ||||||
20 | by winning bidders, and the bidders must agree to the terms | ||||||
21 | of the contract in advance so that winning bids are | ||||||
22 | selected solely on the basis of price. | ||||||
23 | (3) Establishment of a market-based price benchmark. | ||||||
24 | As part of the development of the procurement process, the | ||||||
25 | procurement administrator, in consultation with the | ||||||
26 | Commission staff, Agency staff, and the procurement |
| |||||||
| |||||||
1 | monitor, shall establish benchmarks for evaluating the | ||||||
2 | final prices in the contracts for each of the products that | ||||||
3 | will be procured through the procurement process. The | ||||||
4 | benchmarks shall be based on price data for similar | ||||||
5 | products for the same delivery period and same delivery | ||||||
6 | hub, or other delivery hubs after adjusting for that | ||||||
7 | difference. The price benchmarks may also be adjusted to | ||||||
8 | take into account differences between the information | ||||||
9 | reflected in the underlying data sources and the specific | ||||||
10 | products and procurement process being used to procure | ||||||
11 | power for the Illinois utilities. The benchmarks shall be | ||||||
12 | confidential but shall be provided to, and will be subject | ||||||
13 | to Commission review and approval, prior to a procurement | ||||||
14 | event. | ||||||
15 | (4) Request for proposals competitive procurement | ||||||
16 | process. The procurement administrator shall design and | ||||||
17 | issue a request for proposals to supply electricity in | ||||||
18 | accordance with each utility's electricity procurement | ||||||
19 | plan, as approved by the Commission. The request for | ||||||
20 | proposals shall set forth a procedure for sealed, binding | ||||||
21 | commitment bidding with pay-as-bid settlement, and | ||||||
22 | provision for selection of bids on the basis of price. | ||||||
23 | (5) A plan for implementing contingencies in the event | ||||||
24 | of supplier default or failure of the procurement process | ||||||
25 | to fully meet the expected load requirement due to | ||||||
26 | insufficient supplier participation, Commission rejection |
| |||||||
| |||||||
1 | of results, or any other cause. | ||||||
2 | (i) Event of supplier default: In the event of | ||||||
3 | supplier default, the utility shall review the | ||||||
4 | contract of the defaulting supplier to determine if the | ||||||
5 | amount of supply is 200 megawatts or greater, and if | ||||||
6 | there are more than 60 days remaining of the contract | ||||||
7 | term. If both of these conditions are met, and the | ||||||
8 | default results in termination of the contract, the | ||||||
9 | utility shall immediately notify the Illinois Power | ||||||
10 | Agency that a request for proposals must be issued to | ||||||
11 | procure replacement power, and the procurement | ||||||
12 | administrator shall run an additional procurement | ||||||
13 | event. If the contracted supply of the defaulting | ||||||
14 | supplier is less than 200 megawatts or there are less | ||||||
15 | than 60 days remaining of the contract term, the | ||||||
16 | utility shall procure power and energy from the | ||||||
17 | applicable regional transmission organization market, | ||||||
18 | including ancillary services, capacity, and day-ahead | ||||||
19 | or real time energy, or both, for the duration of the | ||||||
20 | contract term to replace the contracted supply; | ||||||
21 | provided, however, that if a needed product is not | ||||||
22 | available through the regional transmission | ||||||
23 | organization market it shall be purchased from the | ||||||
24 | wholesale market. | ||||||
25 | (ii) Failure of the procurement process to fully | ||||||
26 | meet the expected load requirement: If the procurement |
| |||||||
| |||||||
1 | process fails to fully meet the expected load | ||||||
2 | requirement due to insufficient supplier participation | ||||||
3 | or due to a Commission rejection of the procurement | ||||||
4 | results, the procurement administrator, the | ||||||
5 | procurement monitor, and the Commission staff shall | ||||||
6 | meet within 10 days to analyze potential causes of low | ||||||
7 | supplier interest or causes for the Commission | ||||||
8 | decision. If changes are identified that would likely | ||||||
9 | result in increased supplier participation, or that | ||||||
10 | would address concerns causing the Commission to | ||||||
11 | reject the results of the prior procurement event, the | ||||||
12 | procurement administrator may implement those changes | ||||||
13 | and rerun the request for proposals process according | ||||||
14 | to a schedule determined by those parties and | ||||||
15 | consistent with Section 1-75 of the Illinois Power | ||||||
16 | Agency Act and this subsection. In any event, a new | ||||||
17 | request for proposals process shall be implemented by | ||||||
18 | the procurement administrator within 90 days after the | ||||||
19 | determination that the procurement process has failed | ||||||
20 | to fully meet the expected load requirement. | ||||||
21 | (iii) In all cases where there is insufficient | ||||||
22 | supply provided under contracts awarded through the | ||||||
23 | procurement process to fully meet the electric | ||||||
24 | utility's load requirement, the utility shall meet the | ||||||
25 | load requirement by procuring power and energy from the | ||||||
26 | applicable regional transmission organization market, |
| |||||||
| |||||||
1 | including ancillary services, capacity, and day-ahead | ||||||
2 | or real time energy or both; provided, however, that if | ||||||
3 | a needed product is not available through the regional | ||||||
4 | transmission organization market it shall be purchased | ||||||
5 | from the wholesale market. | ||||||
6 | (6) The procurement process described in this | ||||||
7 | subsection is exempt from the requirements of the Illinois | ||||||
8 | Procurement Code, pursuant to Section 20-10 of that Code. | ||||||
9 | (f) Within 2 business days after opening the sealed bids, | ||||||
10 | the procurement administrator shall submit a confidential | ||||||
11 | report to the Commission. The report shall contain the results | ||||||
12 | of the bidding for each of the products along with the | ||||||
13 | procurement administrator's recommendation for the acceptance | ||||||
14 | and rejection of bids based on the price benchmark criteria and | ||||||
15 | other factors observed in the process. The procurement monitor | ||||||
16 | also shall submit a confidential report to the Commission | ||||||
17 | within 2 business days after opening the sealed bids. The | ||||||
18 | report shall contain the procurement monitor's assessment of | ||||||
19 | bidder behavior in the process as well as an assessment of the | ||||||
20 | procurement administrator's compliance with the procurement | ||||||
21 | process and rules. The Commission shall review the confidential | ||||||
22 | reports submitted by the procurement administrator and | ||||||
23 | procurement monitor, and shall accept or reject the | ||||||
24 | recommendations of the procurement administrator within 2 | ||||||
25 | business days after receipt of the reports. | ||||||
26 | (g) Within 3 business days after the Commission decision |
| |||||||
| |||||||
1 | approving the results of a procurement event, the utility shall | ||||||
2 | enter into binding contractual arrangements with the winning | ||||||
3 | suppliers using the standard form contracts; except that the | ||||||
4 | utility shall not be required either directly or indirectly to | ||||||
5 | execute the contracts if a tariff that is consistent with | ||||||
6 | subsection (l) of this Section has not been approved and placed | ||||||
7 | into effect for that utility. | ||||||
8 | (h) The names of the successful bidders and the load | ||||||
9 | weighted average of the winning bid prices for each contract | ||||||
10 | type and for each contract term shall be made available to the | ||||||
11 | public at the time of Commission approval of a procurement | ||||||
12 | event. The Commission, the procurement monitor, the | ||||||
13 | procurement administrator, the Illinois Power Agency, and all | ||||||
14 | participants in the procurement process shall maintain the | ||||||
15 | confidentiality of all other supplier and bidding information | ||||||
16 | in a manner consistent with all applicable laws, rules, | ||||||
17 | regulations, and tariffs. Confidential information, including | ||||||
18 | the confidential reports submitted by the procurement | ||||||
19 | administrator and procurement monitor pursuant to subsection | ||||||
20 | (f) of this Section, shall not be made publicly available and | ||||||
21 | shall not be discoverable by any party in any proceeding, | ||||||
22 | absent a compelling demonstration of need, nor shall those | ||||||
23 | reports be admissible in any proceeding other than one for law | ||||||
24 | enforcement purposes. | ||||||
25 | (i) Within 2 business days after a Commission decision | ||||||
26 | approving the results of a procurement event or such other date |
| |||||||
| |||||||
1 | as may be required by the Commission from time to time, the | ||||||
2 | utility shall file for informational purposes with the | ||||||
3 | Commission its actual or estimated retail supply charges, as | ||||||
4 | applicable, by customer supply group reflecting the costs | ||||||
5 | associated with the procurement and computed in accordance with | ||||||
6 | the tariffs filed pursuant to subsection (l) of this Section | ||||||
7 | and approved by the Commission. | ||||||
8 | (j) Within 60 days following the effective date of this | ||||||
9 | amendatory Act, each electric utility that on December 31, 2005 | ||||||
10 | provided electric service to at least 100,000 customers in | ||||||
11 | Illinois shall prepare and file with the Commission an initial | ||||||
12 | electricity procurement plan, which shall conform in all | ||||||
13 | material respects to the requirements of the electricity | ||||||
14 | procurement plan set forth in subsection (b); provided, | ||||||
15 | however, that the Illinois Power Agency Act shall not apply to | ||||||
16 | the initial electricity procurement plan prepared pursuant to | ||||||
17 | this subsection. The initial electricity procurement plan | ||||||
18 | shall identify the portfolio of power and energy products to be | ||||||
19 | procured and delivered for the period June 2008 through May | ||||||
20 | 2009, and shall identify the proposed procurement | ||||||
21 | administrator, who shall have the same experience and expertise | ||||||
22 | as is required of a procurement administrator hired pursuant to | ||||||
23 | Section 1-75 of the Illinois Power Agency Act. Copies of the | ||||||
24 | electricity procurement plan shall be posted and made publicly | ||||||
25 | available on the Commission's website. The initial electricity | ||||||
26 | procurement plan may include contracts for renewable resources |
| |||||||
| |||||||
1 | that extend beyond May 2009. | ||||||
2 | (i) Within 14 days following filing of the initial | ||||||
3 | electricity procurement plan, any person may file a | ||||||
4 | detailed objection with the Commission contesting the | ||||||
5 | electricity procurement plan submitted by the electric | ||||||
6 | utility. All objections to the electric utility's plan | ||||||
7 | shall be specific, supported by data or other detailed | ||||||
8 | analyses. The electric utility may file a response to any | ||||||
9 | objections to its electricity procurement plan within 7 | ||||||
10 | days after the date objections are due to be filed. Within | ||||||
11 | 7 days after the date the utility's response is due, the | ||||||
12 | Commission shall determine whether a hearing is necessary. | ||||||
13 | If it determines that a hearing is necessary, it shall | ||||||
14 | require the hearing to be completed and issue an order on | ||||||
15 | the electricity procurement plan within 60 days after the | ||||||
16 | filing of the electricity procurement plan by the electric | ||||||
17 | utility. | ||||||
18 | (ii) The order shall approve or modify the electricity | ||||||
19 | procurement plan, approve an independent procurement | ||||||
20 | administrator, and approve or modify the electric | ||||||
21 | utility's tariffs that are proposed with the initial | ||||||
22 | electricity procurement plan. The Commission shall approve | ||||||
23 | the electricity procurement plan if the Commission | ||||||
24 | determines that it will ensure adequate, reliable, | ||||||
25 | affordable, efficient, and environmentally sustainable | ||||||
26 | electric service at the lowest total cost over time, taking |
| |||||||
| |||||||
1 | into account any benefits of price stability. | ||||||
2 | (k) In order to promote price stability for residential and | ||||||
3 | small commercial customers during the transition to | ||||||
4 | competition in Illinois, and notwithstanding any other | ||||||
5 | provision of this Act, each electric utility subject to this | ||||||
6 | Section shall enter into one or more multi-year financial swap | ||||||
7 | contracts that become effective on the effective date of this | ||||||
8 | amendatory Act. These contracts may be executed with generators | ||||||
9 | and power marketers, including affiliated interests of the | ||||||
10 | electric utility. These contracts shall be for a term of no | ||||||
11 | more than 5 years and shall, for each respective utility or for | ||||||
12 | any Illinois electric utilities that are affiliated by virtue | ||||||
13 | of a common parent company and that are thereby considered a | ||||||
14 | single electric utility for purposes of this subsection (k), | ||||||
15 | not exceed in the aggregate 3,000 megawatts for any hour of the | ||||||
16 | year. The contracts shall be financial contracts and not energy | ||||||
17 | sales contracts. The contracts shall be executed as | ||||||
18 | transactions under a negotiated master agreement based on the | ||||||
19 | form of master agreement for financial swap contracts sponsored | ||||||
20 | by the International Swaps and Derivatives Association, Inc. | ||||||
21 | and shall be considered pre-existing contracts in the | ||||||
22 | utilities' electricity procurement plans for residential and | ||||||
23 | small commercial customers. Costs incurred pursuant to a | ||||||
24 | contract authorized by this subsection (k) shall be deemed | ||||||
25 | prudently incurred and reasonable in amount and the electric | ||||||
26 | utility shall be entitled to full cost recovery pursuant to the |
| |||||||
| |||||||
1 | tariffs filed with the Commission. | ||||||
2 | (k-5) In order to promote price stability for residential | ||||||
3 | and small commercial customers during the infrastructure | ||||||
4 | investment program described in subsection (b) of Section | ||||||
5 | 16-108.5 of this Act, and notwithstanding any other provision | ||||||
6 | of this Act or the Illinois Power Agency Act, for each electric | ||||||
7 | utility that serves more than one million retail customers in | ||||||
8 | Illinois, the Illinois Power Agency shall conduct a procurement | ||||||
9 | event within 120 days after October 26, 2011 (the effective | ||||||
10 | date of Public Act 97-616) and may procure contracts for energy | ||||||
11 | and renewable energy credits for the period June 1, 2013 | ||||||
12 | through December 31, 2017 that satisfy the requirements of this | ||||||
13 | subsection (k-5), including the benchmarks described in this | ||||||
14 | subsection. These contracts shall be entered into as the result | ||||||
15 | of a competitive procurement event, and, to the extent that any | ||||||
16 | provisions of this Section or the Illinois Power Agency Act do | ||||||
17 | not conflict with this subsection (k-5), such provisions shall | ||||||
18 | apply to the procurement event. The energy contracts shall be | ||||||
19 | for 24 hour by 7 day supply over a term that runs from the first | ||||||
20 | delivery year through December 31, 2017. For a utility that | ||||||
21 | serves over 2 million customers, the energy contracts shall be | ||||||
22 | multi-year with pricing escalating at 2.5% per annum. The | ||||||
23 | energy contracts may be designed as financial swaps or may | ||||||
24 | require physical delivery. | ||||||
25 | Within 30 days of October 26, 2011 (the effective date of | ||||||
26 | Public Act 97-616), each such utility shall submit to the |
| |||||||
| |||||||
1 | Agency updated load forecasts for the period June 1, 2013 | ||||||
2 | through December 31, 2017. The megawatt volume of the contracts | ||||||
3 | shall be based on the updated load forecasts of the minimum | ||||||
4 | monthly on-peak or off-peak average load requirements shown in | ||||||
5 | the forecasts, taking into account any existing energy | ||||||
6 | contracts in effect as well as the expected migration of the | ||||||
7 | utility's customers to alternative retail electric suppliers. | ||||||
8 | The renewable energy credit volume shall be based on the number | ||||||
9 | of credits that would satisfy the requirements of subsection | ||||||
10 | (c) of Section 1-75 of the Illinois Power Agency Act, subject | ||||||
11 | to the rate impact caps and other provisions of subsection (c) | ||||||
12 | of Section 1-75 of the Illinois Power Agency Act. The | ||||||
13 | evaluation of contract bids in the competitive procurement | ||||||
14 | events for energy and for renewable energy credits shall | ||||||
15 | incorporate price benchmarks set collaboratively by the | ||||||
16 | Agency, the procurement administrator, the staff of the | ||||||
17 | Commission, and the procurement monitor. If the contracts are | ||||||
18 | swap contracts, then they shall be executed as transactions | ||||||
19 | under a negotiated master agreement based on the form of master | ||||||
20 | agreement for financial swap contracts sponsored by the | ||||||
21 | International Swaps and Derivatives Association, Inc. Costs | ||||||
22 | incurred pursuant to a contract authorized by this subsection | ||||||
23 | (k-5) shall be deemed prudently incurred and reasonable in | ||||||
24 | amount and the electric utility shall be entitled to full cost | ||||||
25 | recovery pursuant to the tariffs filed with the Commission. | ||||||
26 | The cost of administering the procurement event described |
| |||||||
| |||||||
1 | in this subsection (k-5) shall be paid by the winning supplier | ||||||
2 | or suppliers to the procurement administrator through a | ||||||
3 | supplier fee. In the event that there is no winning supplier | ||||||
4 | for a particular utility, such utility will pay the procurement | ||||||
5 | administrator for the costs associated with the procurement | ||||||
6 | event, and those costs shall not be a recoverable expense. | ||||||
7 | Nothing in this subsection (k-5) is intended to alter the | ||||||
8 | recovery of costs for any other procurement event. | ||||||
9 | (l) An electric utility shall recover its costs incurred | ||||||
10 | under this Section, including, but not limited to, the costs of | ||||||
11 | procuring power and energy demand-response resources under | ||||||
12 | this Section. The utility shall file with the initial | ||||||
13 | electricity procurement plan its proposed tariffs through | ||||||
14 | which its costs of procuring power that are incurred pursuant | ||||||
15 | to a Commission-approved electricity procurement plan and | ||||||
16 | those other costs identified in this subsection (l), will be | ||||||
17 | recovered. The tariffs shall include a formula rate or charge | ||||||
18 | designed to pass through both the costs incurred by the utility | ||||||
19 | in procuring a supply of electric power and energy for the | ||||||
20 | applicable customer classes with no mark-up or return on the | ||||||
21 | price paid by the utility for that supply, plus any just and | ||||||
22 | reasonable costs that the utility incurs in arranging and | ||||||
23 | providing for the supply of electric power and energy. The | ||||||
24 | formula rate or charge shall also contain provisions that | ||||||
25 | ensure that its application does not result in over or under | ||||||
26 | recovery due to changes in customer usage and demand patterns, |
| |||||||
| |||||||
1 | and that provide for the correction, on at least an annual | ||||||
2 | basis, of any accounting errors that may occur. A utility shall | ||||||
3 | recover through the tariff all reasonable costs incurred to | ||||||
4 | implement or comply with any electricity procurement plan that | ||||||
5 | is developed and put into effect pursuant to Section 1-75 of | ||||||
6 | the Illinois Power Agency Act and this Section, including any | ||||||
7 | fees assessed by the Illinois Power Agency, costs associated | ||||||
8 | with load balancing, and contingency plan costs. The electric | ||||||
9 | utility shall also recover its full costs of procuring electric | ||||||
10 | supply for which it contracted before the effective date of | ||||||
11 | this Section in conjunction with the provision of full | ||||||
12 | requirements service under fixed-price bundled service tariffs | ||||||
13 | subsequent to December 31, 2006. All such costs shall be deemed | ||||||
14 | to have been prudently incurred. The pass-through tariffs that | ||||||
15 | are filed and approved pursuant to this Section shall not be | ||||||
16 | subject to review under, or in any way limited by, Section | ||||||
17 | 16-111(i) of this Act. | ||||||
18 | (m) The Commission has the authority to adopt rules to | ||||||
19 | carry out the provisions of this Section. For the public | ||||||
20 | interest, safety, and welfare, the Commission also has | ||||||
21 | authority to adopt rules to carry out the provisions of this | ||||||
22 | Section on an emergency basis immediately following the | ||||||
23 | effective date of this amendatory Act. | ||||||
24 | (n) Notwithstanding any other provision of this Act, any | ||||||
25 | affiliated electric utilities that submit a single electricity | ||||||
26 | procurement plan covering their combined needs may procure for |
| |||||||
| |||||||
1 | those combined needs in conjunction with that plan, and may | ||||||
2 | enter jointly into power supply contracts, purchases, and other | ||||||
3 | procurement arrangements, and allocate capacity and energy and | ||||||
4 | cost responsibility therefor among themselves in proportion to | ||||||
5 | their requirements. | ||||||
6 | (o) On or before June 1 of each year, the Commission shall | ||||||
7 | hold an informal hearing for the purpose of receiving comments | ||||||
8 | on the prior year's procurement process and any recommendations | ||||||
9 | for change.
| ||||||
10 | (p) An electric utility subject to this Section may propose | ||||||
11 | to invest, lease, own, or operate an electric generation | ||||||
12 | facility as part of its electricity procurement plan, provided | ||||||
13 | the utility demonstrates that such facility is the least-cost | ||||||
14 | option to provide electric service to eligible retail | ||||||
15 | customers. If the facility is shown to be the least-cost option | ||||||
16 | and is included in an electricity a procurement plan prepared | ||||||
17 | in accordance with Section 1-75 of the Illinois Power Agency | ||||||
18 | Act and this Section, then the electric utility shall make a | ||||||
19 | filing pursuant to Section 8-406 of this Act, and may request | ||||||
20 | of the Commission any statutory relief required thereunder. If | ||||||
21 | the Commission grants all of the necessary approvals for the | ||||||
22 | proposed facility, such supply shall thereafter be considered | ||||||
23 | as a pre-existing contract under subsection (b) of this | ||||||
24 | Section. The Commission shall in any order approving a proposal | ||||||
25 | under this subsection specify how the utility will recover the | ||||||
26 | prudently incurred costs of investing in, leasing, owning, or |
| |||||||
| |||||||
1 | operating such generation facility through just and reasonable | ||||||
2 | rates charged to eligible retail customers. Cost recovery for | ||||||
3 | facilities included in the utility's electricity procurement | ||||||
4 | plan pursuant to this subsection shall not be subject to review | ||||||
5 | under or in any way limited by the provisions of Section | ||||||
6 | 16-111(i) of this Act. Nothing in this Section is intended to | ||||||
7 | prohibit a utility from filing for a fuel adjustment clause as | ||||||
8 | is otherwise permitted under Section 9-220 of this Act.
| ||||||
9 | (q) Notwithstanding any other provisions of this Section, | ||||||
10 | beginning with the 2016 delivery year, the procurement of | ||||||
11 | renewable energy credits in accordance with subdivision (c) of | ||||||
12 | Section 1-75 of the Illinois Power Agency Act shall not be | ||||||
13 | subject to this Section. For the purposes of this Section, | ||||||
14 | "delivery year" has the same meaning as in Section 1-10 of the | ||||||
15 | Illinois Power Agency Act. | ||||||
16 | (Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11; | ||||||
17 | 97-813, eff. 7-13-12.) | ||||||
18 | (220 ILCS 5/16-111.5B) | ||||||
19 | Sec. 16-111.5B. Provisions relating to energy efficiency | ||||||
20 | procurement. | ||||||
21 | (a) Beginning in 2012, procurement plans prepared pursuant | ||||||
22 | to Section 16-111.5 of this Act shall be subject to the | ||||||
23 | following additional requirements , except that beginning in | ||||||
24 | 2018, any utility that has achieved the performance metrics | ||||||
25 | under paragraph (10) of subsection (f) of Section 16-108.5 of |
| |||||||
| |||||||
1 | this Act shall be exempt from this Section : | ||||||
2 | (1) The analysis included pursuant to paragraph (2) of | ||||||
3 | subsection (b) of Section 16-111.5 shall also include the | ||||||
4 | impact of energy efficiency building codes or appliance | ||||||
5 | standards, both current and projected. | ||||||
6 | (2) The procurement plan components described in | ||||||
7 | subsection (b) of Section 16-111.5 shall also include an | ||||||
8 | assessment of opportunities to expand the programs | ||||||
9 | promoting energy efficiency measures that have been | ||||||
10 | offered under plans approved pursuant to Section 8-103 of | ||||||
11 | this Act or to implement additional cost-effective energy | ||||||
12 | efficiency programs or measures. | ||||||
13 | (3) In addition to the information provided pursuant to | ||||||
14 | paragraph (1) of subsection (d) of Section 16-111.5 of this | ||||||
15 | Act, each Illinois utility procuring power pursuant to that | ||||||
16 | Section shall annually provide to the Illinois Power Agency | ||||||
17 | by July 15 of each year, or such other date as may be | ||||||
18 | required by the Commission or Agency, an assessment of | ||||||
19 | cost-effective energy efficiency programs or measures that | ||||||
20 | could be included in the procurement plan. The assessment | ||||||
21 | shall include the following: | ||||||
22 | (A) A comprehensive energy efficiency potential | ||||||
23 | study for the utility's service territory that was | ||||||
24 | completed within the past 3 years. | ||||||
25 | (B) Beginning in 2014, the most recent analysis | ||||||
26 | submitted pursuant to Section 8-103A of this Act and |
| |||||||
| |||||||
1 | approved by the Commission under subsection (f) of | ||||||
2 | Section 8-103 of this Act. | ||||||
3 | (C) Identification of new or expanded | ||||||
4 | cost-effective energy efficiency programs or measures | ||||||
5 | that are incremental to those included in energy | ||||||
6 | efficiency and demand-response plans approved by the | ||||||
7 | Commission pursuant to Section 8-103 of this Act and | ||||||
8 | that would be offered to all retail customers whose | ||||||
9 | electric service has not been declared competitive | ||||||
10 | under Section 16-113 of this Act and who are eligible | ||||||
11 | to purchase power and energy from the utility under | ||||||
12 | fixed-price bundled service tariffs, regardless of | ||||||
13 | whether such customers actually do purchase such power | ||||||
14 | and energy from the utility. | ||||||
15 | (D) Analysis showing that the new or expanded | ||||||
16 | cost-effective energy efficiency programs or measures | ||||||
17 | would lead to a reduction in the overall cost of | ||||||
18 | electric service. | ||||||
19 | (E) Analysis of how the cost of procuring | ||||||
20 | additional cost-effective energy efficiency measures | ||||||
21 | compares over the life of the measures to the | ||||||
22 | prevailing cost of comparable supply. | ||||||
23 | (F) An energy savings goal, expressed in | ||||||
24 | megawatt-hours, for the year in which the measures will | ||||||
25 | be implemented. | ||||||
26 | (G) For each expanded or new program, the estimated |
| |||||||
| |||||||
1 | amount that the program may reduce the agency's need to | ||||||
2 | procure supply. | ||||||
3 | In preparing such assessments, a utility shall conduct | ||||||
4 | an annual solicitation process for purposes of requesting | ||||||
5 | proposals from third-party vendors, the results of which | ||||||
6 | shall be provided to the Agency as part of the assessment, | ||||||
7 | including documentation of all bids received. The utility | ||||||
8 | shall develop requests for proposals consistent with the | ||||||
9 | manner in which it develops requests for proposals under | ||||||
10 | plans approved pursuant to Section 8-103 of this Act, which | ||||||
11 | considers input from the Agency and interested | ||||||
12 | stakeholders. | ||||||
13 | (4) The Illinois Power Agency shall include in the | ||||||
14 | procurement plan prepared pursuant to paragraph (2) of | ||||||
15 | subsection (d) of Section 16-111.5 of this Act energy | ||||||
16 | efficiency programs and measures it determines are | ||||||
17 | cost-effective and the associated annual energy savings | ||||||
18 | goal included in the annual solicitation process and | ||||||
19 | assessment submitted pursuant to paragraph (3) of this | ||||||
20 | subsection (a). | ||||||
21 | (5) Pursuant to paragraph (4) of subsection (d) of | ||||||
22 | Section 16-111.5 of this Act, the Commission shall also | ||||||
23 | approve the energy efficiency programs and measures | ||||||
24 | included in the procurement plan, including the annual | ||||||
25 | energy savings goal, if the Commission determines they | ||||||
26 | fully capture the potential for all achievable |
| |||||||
| |||||||
1 | cost-effective savings, to the extent practicable, and | ||||||
2 | otherwise satisfy the requirements of Section 8-103 of this | ||||||
3 | Act. | ||||||
4 | In the event the Commission approves the procurement of | ||||||
5 | additional energy efficiency, it shall reduce the amount of | ||||||
6 | power to be procured under the procurement plan to reflect | ||||||
7 | the additional energy efficiency and shall direct the | ||||||
8 | utility to undertake the procurement of such energy | ||||||
9 | efficiency, which shall not be subject to the requirements | ||||||
10 | of subsection (e) of Section 16-111.5 of this Act. The | ||||||
11 | utility shall consider input from the Agency and interested | ||||||
12 | stakeholders on the procurement and administration | ||||||
13 | process. | ||||||
14 | (6) An electric utility shall recover its costs | ||||||
15 | incurred under this Section related to the implementation | ||||||
16 | of energy efficiency programs and measures approved by the | ||||||
17 | Commission in its order approving the procurement plan | ||||||
18 | under Section 16-111.5 of this Act, including, but not | ||||||
19 | limited to, all costs associated with complying with this | ||||||
20 | Section and all start-up and administrative costs and the | ||||||
21 | costs for any evaluation, measurement, and verification of | ||||||
22 | the measures, from all retail customers whose electric | ||||||
23 | service has not been declared competitive under Section | ||||||
24 | 16-113 of this Act and who are eligible to purchase power | ||||||
25 | and energy from the utility under fixed-price bundled | ||||||
26 | service tariffs, regardless of whether such customers |
| |||||||
| |||||||
1 | actually do purchase such power and energy from the utility | ||||||
2 | through the automatic adjustment clause tariff established | ||||||
3 | pursuant to Section 8-103 of this Act, provided, however, | ||||||
4 | that the limitations described in subsection (d) of that | ||||||
5 | Section shall not apply to the costs incurred pursuant to | ||||||
6 | this Section or Section 16-111.7 of this Act. | ||||||
7 | (b) For purposes of this Section, the term "energy | ||||||
8 | efficiency" shall have the meaning set forth in Section 1-10 of | ||||||
9 | the Illinois Power Agency Act, and the term "cost-effective" | ||||||
10 | shall have the meaning set forth in subsection (a) of Section | ||||||
11 | 8-103 of this Act.
| ||||||
12 | (Source: P.A. 97-616, eff. 10-26-11; 97-824, eff. 7-18-12.) | ||||||
13 | (220 ILCS 5/16-111.5C new) | ||||||
14 | Sec. 16-111.5C. Provisions related to renewable energy | ||||||
15 | credit procurement. | ||||||
16 | (a) Beginning with the planning process to develop a plan | ||||||
17 | or plans for implementation starting in the 2016 delivery year, | ||||||
18 | a long-term renewable resources procurement plan for the | ||||||
19 | procurement of renewable energy credits shall be prepared | ||||||
20 | consistent with the applicable requirements of the Illinois | ||||||
21 | Power Agency Act and this Section. The long-term renewable | ||||||
22 | resources procurement plan and all subsequent revisions shall | ||||||
23 | be subject to review and approval by the Commission according | ||||||
24 | to the provisions set forth in this Section. For the purposes | ||||||
25 | of this Section, "delivery year" has the same meaning as in |
| |||||||
| |||||||
1 | Section 1-10 of the Illinois Power Agency Act. | ||||||
2 | (b) The long-term renewable resources planning process | ||||||
3 | shall be conducted as follows: | ||||||
4 | (1) Electric utilities shall provide a range of load | ||||||
5 | forecasts to the Illinois Power Agency within 30 days after | ||||||
6 | the effective date of this amendatory Act of the 99th | ||||||
7 | General Assembly and on July 15 of each year thereafter or | ||||||
8 | upon such other date as may be required by the Commission | ||||||
9 | or Agency. The load forecasts shall cover the procurement | ||||||
10 | planning period through the 2030 delivery year and beyond | ||||||
11 | and shall include a high-load, low-load, and expected-load | ||||||
12 | scenario for the load of all customers taking delivery | ||||||
13 | service from the electric utility. The utility shall | ||||||
14 | provide supporting data and assumptions for each of the | ||||||
15 | scenarios. | ||||||
16 | (2) The Illinois Power Agency shall publish for comment | ||||||
17 | the initial long-term renewable resources plan no later | ||||||
18 | than 120 days after the effective date of this amendatory | ||||||
19 | Act of the 99th General Assembly and shall make revisions | ||||||
20 | to the plan at least every 2 years thereafter. The | ||||||
21 | long-term renewable resources procurement plan shall | ||||||
22 | identify the procurement programs and competitive | ||||||
23 | procurement events consistent with the applicable | ||||||
24 | requirements of the Illinois Power Agency Act and designed | ||||||
25 | to achieve the goals set forth in subdivision (c) of | ||||||
26 | Section 1-75 of that Act. Copies of the long-term renewable |
| |||||||
| |||||||
1 | resources procurement plan shall be posted and made | ||||||
2 | publicly available on the Agency's and Commission's | ||||||
3 | websites, and copies shall also be provided to each | ||||||
4 | affected electric utility. An affected utility and other | ||||||
5 | interested parties shall have 30 days following the date of | ||||||
6 | posting to provide comment to the Agency on the procurement | ||||||
7 | plan. All comments submitted to the Agency shall be | ||||||
8 | specific, supported by data or other detailed analyses, | ||||||
9 | and, if objecting to all or a portion of the procurement | ||||||
10 | plan, accompanied by specific alternative wording or | ||||||
11 | proposals. All comments shall be posted on the Agency's and | ||||||
12 | Commission's websites. During this 30-day comment period, | ||||||
13 | the Agency shall hold at least one public hearing within | ||||||
14 | each utility's service area for the purpose of receiving | ||||||
15 | public comment on the long-term renewable resources | ||||||
16 | procurement plan. Within 14 days following the end of the | ||||||
17 | 30-day review period, the Agency shall revise the long-term | ||||||
18 | renewable resources procurement plan as necessary based on | ||||||
19 | the comments received and file the plan with the Commission | ||||||
20 | for review and approval. | ||||||
21 | (3) Within 14 days after the filing of the long-term | ||||||
22 | renewable resources procurement plan, any person objecting | ||||||
23 | to the plan shall file an objection with the Commission. | ||||||
24 | Within 21 days after the filing, the Commission shall | ||||||
25 | determine whether a hearing is necessary. The Commission | ||||||
26 | shall enter its order confirming or modifying the |
| |||||||
| |||||||
1 | procurement plan within 120 days after the filing of the | ||||||
2 | procurement plan by the Illinois Power Agency. | ||||||
3 | (4) The Commission shall approve the long-term | ||||||
4 | renewable resources procurement plan if the Commission | ||||||
5 | determines that the plan will reasonably and prudently | ||||||
6 | fulfill the relevant requirements of Section 1-56 and | ||||||
7 | subdivision (c) of Section 1-75 of the Illinois Power | ||||||
8 | Agency Act. | ||||||
9 | (c) The Agency or third parties contracted by the Agency | ||||||
10 | shall implement all programs authorized by the Commission in an | ||||||
11 | approved long-term renewable resources procurement plan. For | ||||||
12 | those renewable energy credits subject to procurement through a | ||||||
13 | competitive bid process under the plan, the Agency shall follow | ||||||
14 | the procurement process specified in the provisions relating to | ||||||
15 | electricity procurement in subsections (e) through (i) of | ||||||
16 | Section 16-111.5 of this Act. | ||||||
17 | (d) An electric utility shall recover its costs incurred | ||||||
18 | under this Section, including, but not limited to, the costs of | ||||||
19 | procuring renewable energy credits under this Section, as a | ||||||
20 | utility cost of service under the Illinois Public Utilities | ||||||
21 | Act. | ||||||
22 | (e) The Commission has the authority to adopt rules to | ||||||
23 | carry out the provisions of this Section. For the public | ||||||
24 | interest, safety, and welfare, the Commission also has | ||||||
25 | authority to adopt rules to carry out the provisions of this | ||||||
26 | Section on an emergency basis immediately following the |
| |||||||
| |||||||
1 | effective date of this amendatory Act of the 99th General | ||||||
2 | Assembly. | ||||||
3 | (f) On or before July 1 of each year, the Commission shall | ||||||
4 | hold an informal hearing for the purpose of receiving comments | ||||||
5 | on the prior year's procurement process and any recommendations | ||||||
6 | for change. | ||||||
7 | (220 ILCS 5/16-111.7)
| ||||||
8 | Sec. 16-111.7. On-bill financing program; electric | ||||||
9 | utilities. | ||||||
10 | (a) The Illinois General Assembly finds that Illinois homes | ||||||
11 | and businesses have the potential to save energy through | ||||||
12 | conservation and cost-effective energy efficiency measures. | ||||||
13 | Programs created pursuant to this Section will allow utility | ||||||
14 | customers to purchase cost-effective energy efficiency | ||||||
15 | measures, including measures set forth in a | ||||||
16 | Commission-approved energy efficiency and demand-response plan | ||||||
17 | under Section 8-103 of this Act, with no required initial | ||||||
18 | upfront payment, and to pay the cost of those products and | ||||||
19 | services over time on their utility bill. | ||||||
20 | (a-5) As used in this Section: | ||||||
21 | "Eligible electric energy efficiency measure" or "measure" | ||||||
22 | means a product or service for which one or more of the | ||||||
23 | following is true: | ||||||
24 | (1) a building energy assessment, performed by an | ||||||
25 | energy auditor who is certified by the Building Performance |
| |||||||
| |||||||
1 | Institute or who holds a similar certification, has | ||||||
2 | recommended the product or service as likely to be | ||||||
3 | cost-effective over the course of its installed life for | ||||||
4 | the building in which the measure is to be installed; | ||||||
5 | (2) the projected electricity savings (determined by | ||||||
6 | rates in effect at the time of purchase) are sufficient to | ||||||
7 | cover the costs of implementing the measures, including | ||||||
8 | finance charges and any program fees not recovered pursuant | ||||||
9 | to subsection (g) of this Section; | ||||||
10 | (3) the product or service is included in a | ||||||
11 | Commission-approved energy efficiency and demand-response | ||||||
12 | plan under Section 8-103 of this Act and is cost-effective | ||||||
13 | as that term is defined by that Section; or | ||||||
14 | (4) the product or service is necessary to safely or | ||||||
15 | correctly install to code or industry standard an | ||||||
16 | efficiency measure, including, but not limited to, | ||||||
17 | installation work; changes needed to plumbing or | ||||||
18 | electrical connections; upgrades to wiring or fixtures; | ||||||
19 | removal of hazardous materials; correction of leaks; | ||||||
20 | changes to thermostats, controls or similar devices; and | ||||||
21 | changes to venting or exhaust necessitated by the measure. | ||||||
22 | "Small commercial customer" means, for an electric utility | ||||||
23 | serving more than 3,000,000 retail customers, those customers | ||||||
24 | having peak demand of less than 100 kilowatts, and, for an | ||||||
25 | electric utility serving less than 3,000,000 retail customers, | ||||||
26 | those customers having peak demand of less than 150 kilowatts; |
| |||||||
| |||||||
1 | provided, however, that in the event the Commission, after | ||||||
2 | August 27, 2013 (the effective date of Public Act 98-586), | ||||||
3 | approves changes to a utility's tariffs that reflect new or | ||||||
4 | revised demand criteria for the utility's customer rate | ||||||
5 | classifications, then the utility may file a petition with the | ||||||
6 | Commission to revise the applicable definition of a small | ||||||
7 | commercial customer to reflect the new or revised demand | ||||||
8 | criteria for the purposes of this Section. After notice and | ||||||
9 | hearing, the Commission shall enter an order approving, or | ||||||
10 | approving with modification, the revised definition within 60 | ||||||
11 | days after the utility files the petition. | ||||||
12 | (b) Notwithstanding any other provision of this Act, an | ||||||
13 | electric utility serving more than 100,000 customers on January | ||||||
14 | 1, 2009 shall offer a Commission-approved on-bill financing | ||||||
15 | program ("program") that allows its eligible retail customers, | ||||||
16 | as that term is defined in Section 16-111.5 of this Act, who | ||||||
17 | own a residential single family home, duplex, or other | ||||||
18 | residential building with 4 or less units, or condominium at | ||||||
19 | which the electric service is being provided (i) to borrow | ||||||
20 | funds from a third party lender in order to purchase electric | ||||||
21 | energy efficiency measures approved under the program for | ||||||
22 | installation in such home or condominium without any required | ||||||
23 | upfront payment and (ii) to pay back such funds over time | ||||||
24 | through the electric utility's bill. Based upon the process | ||||||
25 | described in subsection (b-5) of this Section, small commercial | ||||||
26 | customers who own the premises at which electric service is |
| |||||||
| |||||||
1 | being provided may be included in such program. After receiving | ||||||
2 | a request from an electric utility for approval of a proposed | ||||||
3 | program and tariffs pursuant to this Section, the Commission | ||||||
4 | shall render its decision within 120 days. If no decision is | ||||||
5 | rendered within 120 days, then the request shall be deemed to | ||||||
6 | be approved. | ||||||
7 | Beginning no later than December 31, 2013, an electric | ||||||
8 | utility subject to this subsection (b) shall also offer its | ||||||
9 | program to eligible retail customers that own multifamily | ||||||
10 | residential or mixed-use buildings with no more than 50 | ||||||
11 | residential units , provided, however, that such customers must | ||||||
12 | either be a residential customer or small commercial customer | ||||||
13 | and may not use the program in such a way that repayment of the | ||||||
14 | cost of energy efficiency measures is made through tenants' | ||||||
15 | utility bills. An electric utility may impose a per site loan | ||||||
16 | limit not to exceed $150,000. The program, and loans issued | ||||||
17 | thereunder, shall only be offered to customers of the utility | ||||||
18 | that meet the requirements of this Section and that also have | ||||||
19 | an electric service account at the premises where the energy | ||||||
20 | efficiency measures being financed shall be installed. | ||||||
21 | Beginning no later than December 31, 2015, an electric | ||||||
22 | utility subject to this subsection (b) shall also offer its | ||||||
23 | program to eligible retail customers that are Unit Owners' | ||||||
24 | Associations, as defined in subsection (o) of Section 2 of the | ||||||
25 | Condominium Property Act, or Master Associations, as defined in | ||||||
26 | subsection (u) of Section 2 of the Condominium Property Act; |
| |||||||
| |||||||
1 | however, such customers must either be residential customers or | ||||||
2 | small commercial customers and may not use the program in such | ||||||
3 | a way that repayment of the cost of energy efficiency measures | ||||||
4 | is made through unit owners' utility bills. The program and | ||||||
5 | loans issued under the program shall only be offered to | ||||||
6 | customers of the utility that meet the requirements of this | ||||||
7 | Section and that also have an electric service account at the | ||||||
8 | premises where the energy efficiency measures being financed | ||||||
9 | shall be installed. | ||||||
10 | For purposes of this Section, "small commercial customer" | ||||||
11 | means, for an electric utility serving more than 3,000,000 | ||||||
12 | retail customers, those customers having peak demand of less | ||||||
13 | than 100 kilowatts, and, for an electric utility serving less | ||||||
14 | than 3,000,000 retail customers, those customers having peak | ||||||
15 | demand of less than 150 kilowatts; provided, however, that in | ||||||
16 | the event the Commission, after the effective date of this | ||||||
17 | amendatory Act of the 98th General Assembly, approves changes | ||||||
18 | to a utility's tariffs that reflects new or revised demand | ||||||
19 | criteria for the utility's customer rate classifications, then | ||||||
20 | the utility may file a petition with the Commission to revise | ||||||
21 | the applicable definition of a small commercial customer to | ||||||
22 | reflect the new or revised demand criteria for the purposes of | ||||||
23 | this Section. After notice and hearing, the Commission shall | ||||||
24 | enter an order approving, or approving with modification, the | ||||||
25 | revised definition within 60 days after the utility files the | ||||||
26 | petition. |
| |||||||
| |||||||
1 | (b-5) Within 30 days after the effective date of this | ||||||
2 | amendatory Act of the 96th General Assembly, the Commission | ||||||
3 | shall convene a workshop process during which interested | ||||||
4 | participants may discuss issues related to the program, | ||||||
5 | including program design, eligible electric energy efficiency | ||||||
6 | measures, vendor qualifications, and a methodology for | ||||||
7 | ensuring ongoing compliance with such qualifications, | ||||||
8 | financing, sample documents such as request for proposals, | ||||||
9 | contracts and agreements, dispute resolution, pre-installment | ||||||
10 | and post-installment verification, and evaluation. The | ||||||
11 | workshop process shall be completed within 150 days after the | ||||||
12 | effective date of this amendatory Act of the 96th General | ||||||
13 | Assembly. | ||||||
14 | (c) Not later than 60 days following completion of the | ||||||
15 | workshop process described in subsection (b-5) of this Section, | ||||||
16 | each electric utility subject to subsection (b) of this Section | ||||||
17 | shall submit a proposed program to the Commission that contains | ||||||
18 | the following components: | ||||||
19 | (1) A description of how the program will determine if | ||||||
20 | measures to be financed are eligible electric energy | ||||||
21 | efficiency measures, as defined in subsection (b) of this | ||||||
22 | Section. A list of recommended electric energy efficiency | ||||||
23 | measures that will be eligible for on-bill financing. An | ||||||
24 | eligible electric energy efficiency measure ("measure") | ||||||
25 | shall be a product or service for which one or more of the | ||||||
26 | following is true: |
| |||||||
| |||||||
1 | (A) (blank); | ||||||
2 | (B) the projected electricity savings (determined | ||||||
3 | by rates in effect at the time of purchase) are | ||||||
4 | sufficient to cover the costs of implementing the | ||||||
5 | measures, including finance charges and any program | ||||||
6 | fees not recovered pursuant to subsection (f) of this | ||||||
7 | Section; or | ||||||
8 | (C) the product or service is included in a | ||||||
9 | Commission-approved energy efficiency and | ||||||
10 | demand-response plan under Section 8-103 of this Act. | ||||||
11 | (2) The electric utility shall issue a request for | ||||||
12 | proposals ("RFP") to lenders for purposes of providing | ||||||
13 | financing to participants to pay for approved measures. | ||||||
14 | Lenders may be for-profit or not-for-profit institutions | ||||||
15 | which can accept, manage, and lend utility funds consistent | ||||||
16 | with applicable financial regulations. The RFP criteria | ||||||
17 | shall include, but not be limited to, the interest rate, | ||||||
18 | origination fees, and credit terms. The utility shall | ||||||
19 | select the winning bidders based on its evaluation of these | ||||||
20 | criteria, with a preference for those bids containing the | ||||||
21 | rates, fees, and terms most favorable to participants; | ||||||
22 | (3) The utility shall work with the lenders selected | ||||||
23 | pursuant to the RFP process, and with vendors, to establish | ||||||
24 | the terms and processes pursuant to which a participant can | ||||||
25 | purchase eligible electric energy efficiency measures | ||||||
26 | using the financing obtained from the lender. The vendor |
| |||||||
| |||||||
1 | shall explain and offer the approved financing packaging to | ||||||
2 | those customers identified in subsection (b) of this | ||||||
3 | Section and shall assist customers in applying for | ||||||
4 | financing. As part of the process, vendors shall also | ||||||
5 | provide to participants information about any other | ||||||
6 | incentives that may be available for the measures. | ||||||
7 | (4) The lender shall determine loan eligibility by | ||||||
8 | first examining customer utility bill payment history, | ||||||
9 | unless untimely to do so, and then by conducting conduct | ||||||
10 | credit checks or undertaking undertake other appropriate | ||||||
11 | measures to limit credit risk, and shall review and approve | ||||||
12 | or deny financing applications submitted by customers | ||||||
13 | identified in subsection (b) of this Section. If a customer | ||||||
14 | is not approved for financing as a result of a credit | ||||||
15 | check, the lender shall determine whether to approve or | ||||||
16 | deny financing by considering the customer's utility bill | ||||||
17 | repayment history and the bill reductions likely from the | ||||||
18 | energy efficiency measures to be financed and other | ||||||
19 | appropriate measures. Following the lender's approval of | ||||||
20 | financing and the participant's purchase of the measure or | ||||||
21 | measures, the lender shall forward payment information to | ||||||
22 | the electric utility, and the utility shall add as a | ||||||
23 | separate line item on the participant's utility bill a | ||||||
24 | charge showing the amount due under the program each month. | ||||||
25 | (5) A loan issued to a participant pursuant to the | ||||||
26 | program shall be the sole responsibility of the |
| |||||||
| |||||||
1 | participant, and any dispute that may arise concerning the | ||||||
2 | loan's terms, conditions, or charges shall be resolved | ||||||
3 | between the participant and lender. Upon transfer of the | ||||||
4 | property title for the premises at which the participant | ||||||
5 | receives electric service from the utility or the | ||||||
6 | participant's request to terminate service at such | ||||||
7 | premises, the participant shall pay in full its electric | ||||||
8 | utility bill, including all amounts due under the program, | ||||||
9 | provided that this obligation may be modified as provided | ||||||
10 | in subsection (g) of this Section. Amounts due under the | ||||||
11 | program shall be deemed amounts owed for residential and, | ||||||
12 | as appropriate, small commercial electric service. | ||||||
13 | (6) The electric utility shall remit payment in full to | ||||||
14 | the lender each month on behalf of the participant. In the | ||||||
15 | event a participant defaults on payment of its electric | ||||||
16 | utility bill, the electric utility shall continue to remit | ||||||
17 | all payments due under the program to the lender, up to the | ||||||
18 | larger of $10,000,000 or 50% of the total allowable | ||||||
19 | outstanding amount financed under paragraph (7) of this | ||||||
20 | subsection (c), and the utility shall be entitled to | ||||||
21 | recover all costs related to a participant's nonpayment , up | ||||||
22 | to the larger of $10,000,000 or 50% of the total allowable | ||||||
23 | outstanding amount financed under paragraph (7) of this | ||||||
24 | subsection (c), through the automatic adjustment clause | ||||||
25 | tariff established pursuant to Section 16-111.8 of this | ||||||
26 | Act. In addition, the electric utility shall retain a |
| |||||||
| |||||||
1 | security interest in the measure or measures purchased | ||||||
2 | under the program, and the utility retains its right to | ||||||
3 | disconnect a participant that defaults on the payment of | ||||||
4 | its utility bill. | ||||||
5 | (7) The total annual outstanding amount financed under | ||||||
6 | the program in this subsection and subsection (c-5) of this | ||||||
7 | Section shall not exceed $20,000,000 $2.5 million for an | ||||||
8 | electric utility or electric utilities under a single | ||||||
9 | holding company, provided that the electric utility or | ||||||
10 | electric utilities may petition the Commission for an | ||||||
11 | increase in such amount. A utility may meet the annual | ||||||
12 | obligation using funds repaid through this program or | ||||||
13 | through additional contributions. | ||||||
14 | (c-5) Within 120 days after the effective date of this | ||||||
15 | amendatory Act of the 98th General Assembly, each electric | ||||||
16 | utility subject to the requirements of this Section shall | ||||||
17 | submit an informational filing to the Commission that describes | ||||||
18 | its plan for implementing the provisions of this amendatory Act | ||||||
19 | of the 98th General Assembly on or before December 31, 2013. | ||||||
20 | Such filing shall also describe how the electric utility shall | ||||||
21 | coordinate its program with any gas utility or utilities that | ||||||
22 | provide gas service to buildings within the electric utility's | ||||||
23 | service territory so that it is practical and feasible for the | ||||||
24 | owner of a multifamily building to make a single application to | ||||||
25 | access loans for both gas and electric energy efficiency | ||||||
26 | measures in any individual building. |
| |||||||
| |||||||
1 | Within 60 days after the effective date of this amendatory | ||||||
2 | Act of the 99th General Assembly, each electric utility subject | ||||||
3 | to the requirements of this Section shall submit a filing to | ||||||
4 | the Commission that describes its plan for implementing the | ||||||
5 | provisions of this amendatory Act of the 99th General Assembly | ||||||
6 | on or before December 31, 2015. The Commission shall seek | ||||||
7 | public comment on the utility's plan and shall issue an order | ||||||
8 | approving or disapproving each plan within 120 days of its | ||||||
9 | submission. If the Commission disapproves a plan, the | ||||||
10 | Commission shall, within 30 days, describe in detail the | ||||||
11 | reasons for the disapproval and describe a path by which the | ||||||
12 | utility may file a revised draft of the plan to address the | ||||||
13 | Commission's concerns satisfactorily. | ||||||
14 | (d) A program approved by the Commission shall also include | ||||||
15 | the following criteria and guidelines for such program: | ||||||
16 | (1) guidelines for financing of measures installed | ||||||
17 | under a program, including, but not limited to, RFP | ||||||
18 | criteria and limits on both individual loan amounts and the | ||||||
19 | duration of the loans; | ||||||
20 | (2) criteria and standards for identifying and | ||||||
21 | approving measures; | ||||||
22 | (3) qualifications of vendors that will market or | ||||||
23 | install measures, as well as a methodology for ensuring | ||||||
24 | ongoing compliance with such qualifications; | ||||||
25 | (4) sample contracts and agreements necessary to | ||||||
26 | implement the measures and program; and |
| |||||||
| |||||||
1 | (5) the types of data and information that utilities | ||||||
2 | and vendors participating in the program shall collect for | ||||||
3 | purposes of preparing the reports required under | ||||||
4 | subsection (g) of this Section. | ||||||
5 | (e) The proposed program submitted by each electric utility | ||||||
6 | shall be consistent with the provisions of this Section that | ||||||
7 | define operational, financial and billing arrangements between | ||||||
8 | and among program participants, vendors, lenders, and the | ||||||
9 | electric utility. | ||||||
10 | (f) An electric utility shall recover all of the prudently | ||||||
11 | incurred costs of offering a program approved by the Commission | ||||||
12 | pursuant to this Section, including, but not limited to, all | ||||||
13 | start-up and administrative costs and the costs for program | ||||||
14 | evaluation. All prudently incurred costs under this Section | ||||||
15 | shall be recovered from the residential and small commercial | ||||||
16 | retail customer classes eligible to participate in the program | ||||||
17 | through the automatic adjustment clause tariff established | ||||||
18 | pursuant to Section 8-103 of this Act. | ||||||
19 | (g) An independent evaluation of a program shall be | ||||||
20 | conducted after 3 years of the program's operation. The | ||||||
21 | electric utility shall retain an independent evaluator who | ||||||
22 | shall evaluate the effects of the measures installed under the | ||||||
23 | program and the overall operation of the program, including, | ||||||
24 | but not limited to, customer eligibility criteria and whether | ||||||
25 | the payment obligation for permanent electric energy | ||||||
26 | efficiency measures that will continue to provide benefits of |
| |||||||
| |||||||
1 | energy savings should attach to the meter location. As part of | ||||||
2 | the evaluation process, the evaluator shall also solicit | ||||||
3 | feedback from participants and interested stakeholders. The | ||||||
4 | evaluator shall issue a report to the Commission on its | ||||||
5 | findings no later than 4 years after the date on which the | ||||||
6 | program commenced, and the Commission shall issue a report to | ||||||
7 | the Governor and General Assembly including a summary of the | ||||||
8 | information described in this Section as well as its | ||||||
9 | recommendations as to whether the program should be | ||||||
10 | discontinued, continued with modification or modifications or | ||||||
11 | continued without modification, provided that any recommended | ||||||
12 | modifications shall only apply prospectively and to measures | ||||||
13 | not yet installed or financed. The Commission's report shall | ||||||
14 | discuss changes to the program that were not considered in the | ||||||
15 | independent evaluation, if any. | ||||||
16 | (h) An electric utility offering a Commission-approved | ||||||
17 | program pursuant to this Section shall not be required to | ||||||
18 | comply with any other statute, order, rule, or regulation of | ||||||
19 | this State that may relate to the offering of such program, | ||||||
20 | provided that nothing in this Section is intended to limit the | ||||||
21 | electric utility's obligation to comply with this Act and the | ||||||
22 | Commission's orders, rules, and regulations, including Part | ||||||
23 | 280 of Title 83 of the Illinois Administrative Code. | ||||||
24 | (i) The source of a utility customer's electric supply | ||||||
25 | shall not disqualify a customer from participation in the | ||||||
26 | utility's on-bill financing program. Customers of alternative |
| |||||||
| |||||||
1 | retail electric suppliers may participate in the program under | ||||||
2 | the same terms and conditions applicable to the utility's | ||||||
3 | supply customers.
| ||||||
4 | (Source: P.A. 97-616, eff. 10-26-11; 98-586, eff. 8-27-13.) | ||||||
5 | (220 ILCS 5/16-115D) | ||||||
6 | Sec. 16-115D. Renewable portfolio standard for alternative | ||||||
7 | retail electric suppliers and electric utilities operating | ||||||
8 | outside their service territories. | ||||||
9 | (a) In conjunction with energy deliveries under contracts | ||||||
10 | with customers for the period through May 31, 2016, an An | ||||||
11 | alternative retail electric supplier shall be responsible for | ||||||
12 | procuring cost-effective renewable energy resources as | ||||||
13 | required under item (5) of subsection (d) of Section 16-115 of | ||||||
14 | this Act as outlined herein: | ||||||
15 | (1) The definition of renewable energy resources | ||||||
16 | contained in Section 1-10 of the Illinois Power Agency Act | ||||||
17 | applies to all renewable energy resources required to be | ||||||
18 | procured by alternative retail electric suppliers. | ||||||
19 | (2) The quantity of renewable energy resources shall be | ||||||
20 | measured as a percentage of the actual amount of metered | ||||||
21 | electricity (megawatt-hours) delivered by the alternative | ||||||
22 | retail electric supplier to Illinois retail customers | ||||||
23 | during the 12-month period June 1 through May 31, | ||||||
24 | commencing June 1, 2009, and the comparable 12-month period | ||||||
25 | in each year thereafter except as provided in item (6) of |
| |||||||
| |||||||
1 | this subsection (a). | ||||||
2 | (3) The quantity of renewable energy resources shall be | ||||||
3 | in amounts at least equal to the annual percentages set | ||||||
4 | forth in item (1) of subsection (c) of Section 1-75 of the | ||||||
5 | Illinois Power Agency Act. At least 60% of the renewable | ||||||
6 | energy resources procured pursuant to items (1) through (3) | ||||||
7 | of subsection (b) of this Section shall come from wind | ||||||
8 | generation and, starting June 1, 2015, at least 6% of the | ||||||
9 | renewable energy resources procured pursuant to items (1) | ||||||
10 | through (3) of subsection (b) of this Section shall come | ||||||
11 | from solar photovoltaics. If, in any given year, an | ||||||
12 | alternative retail electric supplier does not purchase at | ||||||
13 | least these levels of renewable energy resources, then the | ||||||
14 | alternative retail electric supplier shall make | ||||||
15 | alternative compliance payments, as described in | ||||||
16 | subsection (d) of this Section. | ||||||
17 | (4) The quantity and source of renewable energy | ||||||
18 | resources shall be independently verified through the PJM | ||||||
19 | Environmental Information System Generation Attribute | ||||||
20 | Tracking System (PJM-GATS) or the Midwest Renewable Energy | ||||||
21 | Tracking System (M-RETS), which shall document the | ||||||
22 | location of generation, resource type, month, and year of | ||||||
23 | generation for all qualifying renewable energy resources | ||||||
24 | that an alternative retail electric supplier uses to comply | ||||||
25 | with this Section. No later than June 1, 2009, the Illinois | ||||||
26 | Power Agency shall provide PJM-GATS, M-RETS, and |
| |||||||
| |||||||
1 | alternative retail electric suppliers with all information | ||||||
2 | necessary to identify resources located in Illinois, | ||||||
3 | within states that adjoin Illinois or within portions of | ||||||
4 | the PJM and MISO footprint in the United States that | ||||||
5 | qualify under the definition of renewable energy resources | ||||||
6 | in Section 1-10 of the Illinois Power Agency Act for | ||||||
7 | compliance with this Section 16-115D. Alternative retail | ||||||
8 | electric suppliers shall not be subject to the requirements | ||||||
9 | in item (3) of subsection (c) of Section 1-75 of the | ||||||
10 | Illinois Power Agency Act. | ||||||
11 | (5) All renewable energy credits used to comply with | ||||||
12 | this Section shall be permanently retired. | ||||||
13 | (6) The required procurement of renewable energy | ||||||
14 | resources by an alternative retail electric supplier shall | ||||||
15 | apply to all metered electricity delivered to Illinois | ||||||
16 | retail customers by the alternative retail electric | ||||||
17 | supplier pursuant to contracts executed or extended after | ||||||
18 | March 15, 2009. | ||||||
19 | (b) For deliveries to customers through May 31, 2016, an An | ||||||
20 | alternative retail electric supplier shall comply with the | ||||||
21 | renewable energy portfolio standards by making an alternative | ||||||
22 | compliance payment, as described in subsection (d) of this | ||||||
23 | Section, to cover at least one-half of the alternative retail | ||||||
24 | electric supplier's compliance obligation and any one or | ||||||
25 | combination of the following means to cover the remainder of | ||||||
26 | the alternative retail electric supplier's compliance |
| |||||||
| |||||||
1 | obligation: | ||||||
2 | (1) Generating electricity using renewable energy | ||||||
3 | resources identified pursuant to item (4) of subsection (a) | ||||||
4 | of this Section. | ||||||
5 | (2) Purchasing electricity generated using renewable | ||||||
6 | energy resources identified pursuant to item (4) of | ||||||
7 | subsection (a) of this Section through an energy contract. | ||||||
8 | (3) Purchasing renewable energy credits from renewable | ||||||
9 | energy resources identified pursuant to item (4) of | ||||||
10 | subsection (a) of this Section. | ||||||
11 | (4) Making an alternative compliance payment as | ||||||
12 | described in subsection (d) of this Section. | ||||||
13 | (c) Use of renewable energy credits. | ||||||
14 | (1) Renewable energy credits that are not used by an | ||||||
15 | alternative retail electric supplier to comply with a | ||||||
16 | renewable portfolio standard in a compliance year may be | ||||||
17 | banked and carried forward up to 2 12-month compliance | ||||||
18 | periods after the compliance period in which the credit was | ||||||
19 | generated for the purpose of complying with a renewable | ||||||
20 | portfolio standard in those 2 subsequent compliance | ||||||
21 | periods. For the 2009-2010 and 2010-2011 compliance | ||||||
22 | periods, an alternative retail electric supplier may use | ||||||
23 | renewable credits generated after December 31, 2008 and | ||||||
24 | before June 1, 2009 to comply with this Section. | ||||||
25 | (2) An alternative retail electric supplier is | ||||||
26 | responsible for demonstrating that a renewable energy |
| |||||||
| |||||||
1 | credit used to comply with a renewable portfolio standard | ||||||
2 | is derived from a renewable energy resource and that the | ||||||
3 | alternative retail electric supplier has not used, traded, | ||||||
4 | sold, or otherwise transferred the credit. | ||||||
5 | (3) The same renewable energy credit may be used by an | ||||||
6 | alternative retail electric supplier to comply with a | ||||||
7 | federal renewable portfolio standard and a renewable | ||||||
8 | portfolio standard established under this Act. An | ||||||
9 | alternative retail electric supplier that uses a renewable | ||||||
10 | energy credit to comply with a renewable portfolio standard | ||||||
11 | imposed by any other state may not use the same credit to | ||||||
12 | comply with a renewable portfolio standard established | ||||||
13 | under this Act. | ||||||
14 | (d) Alternative compliance payments. | ||||||
15 | (1) The Commission shall establish and post on its | ||||||
16 | website, within 5 business days after entering an order | ||||||
17 | approving a procurement plan pursuant to Section 1-75 of | ||||||
18 | the Illinois Power Agency Act, maximum alternative | ||||||
19 | compliance payment rates, expressed on a per kilowatt-hour | ||||||
20 | basis, that will be applicable in the first compliance | ||||||
21 | period following the plan approval. A separate maximum | ||||||
22 | alternative compliance payment rate shall be established | ||||||
23 | for the service territory of each electric utility that is | ||||||
24 | subject to subsection (c) of Section 1-75 of the Illinois | ||||||
25 | Power Agency Act. Each maximum alternative compliance | ||||||
26 | payment rate shall be equal to the maximum allowable annual |
| |||||||
| |||||||
1 | estimated average net increase due to the costs of the | ||||||
2 | utility's purchase of renewable energy resources included | ||||||
3 | in the amounts paid by eligible retail customers in | ||||||
4 | connection with electric service, as described in item (2) | ||||||
5 | of subsection (c) of Section 1-75 of the Illinois Power | ||||||
6 | Agency Act for the compliance period, and as established in | ||||||
7 | the approved procurement plan. Following each procurement | ||||||
8 | event through which renewable energy resources are | ||||||
9 | purchased for one or more of these utilities for the | ||||||
10 | compliance period, the Commission shall establish and post | ||||||
11 | on its website estimates of the alternative compliance | ||||||
12 | payment rates, expressed on a per kilowatt-hour basis, that | ||||||
13 | shall apply for that compliance period. Posting of the | ||||||
14 | estimates shall occur no later than 10 business days | ||||||
15 | following the procurement event, however, the Commission | ||||||
16 | shall not be required to establish and post such estimates | ||||||
17 | more often than once per calendar month. By July 1 of each | ||||||
18 | year, the Commission shall establish and post on its | ||||||
19 | website the actual alternative compliance payment rates | ||||||
20 | for the preceding compliance year. For compliance years | ||||||
21 | beginning prior to June 1, 2014, each alternative | ||||||
22 | compliance payment rate shall be equal to the total amount | ||||||
23 | of dollars that the utility contracted to spend on | ||||||
24 | renewable resources, excepting the additional incremental | ||||||
25 | cost attributable to solar resources, for the compliance | ||||||
26 | period divided by the forecasted load of eligible retail |
| |||||||
| |||||||
1 | customers, at the customers' meters, as previously | ||||||
2 | established in the Commission-approved procurement plan | ||||||
3 | for that compliance year. For compliance years commencing | ||||||
4 | on or after June 1, 2014, each alternative compliance | ||||||
5 | payment rate shall be equal to the total amount of dollars | ||||||
6 | that the utility contracted to spend on all renewable | ||||||
7 | resources for the compliance period divided by the | ||||||
8 | forecasted load of eligible retail customers, at the | ||||||
9 | customers' meters, as previously established in the | ||||||
10 | Commission-approved procurement plan for that compliance | ||||||
11 | year. The actual alternative compliance payment rates may | ||||||
12 | not exceed the maximum alternative compliance payment | ||||||
13 | rates established for the compliance period. For purposes | ||||||
14 | of this subsection (d), the term "eligible retail | ||||||
15 | customers" has the same meaning as found in Section | ||||||
16 | 16-111.5 of this Act. | ||||||
17 | (2) In any given compliance year, an alternative retail | ||||||
18 | electric supplier may elect to use alternative compliance | ||||||
19 | payments to comply with all or a part of the applicable | ||||||
20 | renewable portfolio standard. In the event that an | ||||||
21 | alternative retail electric supplier elects to make | ||||||
22 | alternative compliance payments to comply with all or a | ||||||
23 | part of the applicable renewable portfolio standard, such | ||||||
24 | payments shall be made by September 1, 2010 for the period | ||||||
25 | of June 1, 2009 to May 1, 2010 and by September 1 of each | ||||||
26 | year thereafter for the subsequent compliance period, in |
| |||||||
| |||||||
1 | the manner and form as determined by the Commission. Any | ||||||
2 | election by an alternative retail electric supplier to use | ||||||
3 | alternative compliance payments is subject to review by the | ||||||
4 | Commission under subsection (e) of this Section. | ||||||
5 | (3) An alternative retail electric supplier's | ||||||
6 | alternative compliance payments shall be computed | ||||||
7 | separately for each electric utility's service territory | ||||||
8 | within which the alternative retail electric supplier | ||||||
9 | provided retail service during the compliance period, | ||||||
10 | provided that the electric utility was subject to | ||||||
11 | subsection (c) of Section 1-75 of the Illinois Power Agency | ||||||
12 | Act. For each service territory, the alternative retail | ||||||
13 | electric supplier's alternative compliance payment shall | ||||||
14 | be equal to (i) the actual alternative compliance payment | ||||||
15 | rate established in item (1) of this subsection (d), | ||||||
16 | multiplied by (ii) the actual amount of metered electricity | ||||||
17 | delivered by the alternative retail electric supplier to | ||||||
18 | retail customers within the service territory during the | ||||||
19 | compliance period, multiplied by (iii) the result of one | ||||||
20 | minus the ratios of the quantity of renewable energy | ||||||
21 | resources used by the alternative retail electric supplier | ||||||
22 | to comply with the requirements of this Section within the | ||||||
23 | service territory to the product of the percentage of | ||||||
24 | renewable energy resources required under item (3) of | ||||||
25 | subsection (a) of this Section and the actual amount of | ||||||
26 | metered electricity delivered by the alternative retail |
| |||||||
| |||||||
1 | electric supplier to retail customers within the service | ||||||
2 | territory during the compliance period. | ||||||
3 | (4) All alternative compliance payments by alternative | ||||||
4 | retail electric suppliers shall be deposited in the | ||||||
5 | Illinois Power Agency Renewable Energy Resources Fund and | ||||||
6 | used to purchase renewable energy credits, in accordance | ||||||
7 | with Section 1-56 of the Illinois Power Agency Act. | ||||||
8 | Beginning April 1, 2012 and by April 1 of each year | ||||||
9 | thereafter, the Illinois Power Agency shall submit an | ||||||
10 | annual report to the General Assembly, the Commission, and | ||||||
11 | alternative retail electric suppliers that shall include, | ||||||
12 | but not be limited to: | ||||||
13 | (A) the total amount of alternative compliance | ||||||
14 | payments received in aggregate from alternative retail | ||||||
15 | electric suppliers by planning year for all previous | ||||||
16 | planning years in which the alternative compliance | ||||||
17 | payment was in effect; | ||||||
18 | (B) the amount of those payments utilized to | ||||||
19 | purchased renewable energy credits itemized by the | ||||||
20 | date of each procurement in which the payments were | ||||||
21 | utilized; and | ||||||
22 | (C) the unused and remaining balance in the Agency | ||||||
23 | Renewable Energy Resources Fund attributable to those | ||||||
24 | payments. | ||||||
25 | (5) The Commission, in consultation with the Illinois | ||||||
26 | Power Agency, shall establish a process or proceeding to |
| |||||||
| |||||||
1 | consider the impact of a federal renewable portfolio | ||||||
2 | standard, if enacted, on the operation of the alternative | ||||||
3 | compliance mechanism, which shall include, but not be | ||||||
4 | limited to, developing, to the extent permitted by the | ||||||
5 | applicable federal statute, an appropriate methodology to | ||||||
6 | apportion renewable energy credits retired as a result of | ||||||
7 | alternative compliance payments made in accordance with | ||||||
8 | this Section. The Commission shall commence any such | ||||||
9 | process or proceeding within 35 days after enactment of a | ||||||
10 | federal renewable portfolio standard. | ||||||
11 | (e) Each alternative retail electric supplier shall, by | ||||||
12 | September 1, 2010 and by September 1 of each year thereafter, | ||||||
13 | prepare and submit to the Commission a report, in a format to | ||||||
14 | be specified by the Commission on or before December 31, 2009, | ||||||
15 | that provides information certifying compliance by the | ||||||
16 | alternative retail electric supplier with this Section, | ||||||
17 | including copies of all PJM-GATS and M-RETS reports, and | ||||||
18 | documentation relating to banking, retiring renewable energy | ||||||
19 | credits, and any other information that the Commission | ||||||
20 | determines necessary to ensure compliance with this Section. An | ||||||
21 | alternative retail electric supplier may file commercially or | ||||||
22 | financially sensitive information or trade secrets with the | ||||||
23 | Commission as provided under the rules of the Commission. To be | ||||||
24 | filed confidentially, the information shall be accompanied by | ||||||
25 | an affidavit that sets forth both the reasons for the | ||||||
26 | confidentiality and a public synopsis of the information. |
| |||||||
| |||||||
1 | (f) The Commission may initiate a contested case to review | ||||||
2 | allegations that the alternative retail electric supplier has | ||||||
3 | violated this Section, including an order issued or rule | ||||||
4 | promulgated under this Section. In any such proceeding, the | ||||||
5 | alternative retail electric supplier shall have the burden of | ||||||
6 | proof. If the Commission finds, after notice and hearing, that | ||||||
7 | an alternative retail electric supplier has violated this | ||||||
8 | Section, then the Commission shall issue an order requiring the | ||||||
9 | alternative retail electric supplier to: | ||||||
10 | (1) immediately comply with this Section; and | ||||||
11 | (2) if the violation involves a failure to procure the | ||||||
12 | requisite quantity of renewable energy resources or pay the | ||||||
13 | applicable alternative compliance payment by the annual | ||||||
14 | deadline, the Commission shall require the alternative | ||||||
15 | retail electric supplier to double the applicable | ||||||
16 | alternative compliance payment that would otherwise be | ||||||
17 | required to bring the alternative retail electric supplier | ||||||
18 | into compliance with this Section. | ||||||
19 | If an alternative retail electric supplier fails to comply | ||||||
20 | with the renewable energy resource portfolio requirement in | ||||||
21 | this Section more than once in a 5-year period, then the | ||||||
22 | Commission shall revoke the alternative electric supplier's | ||||||
23 | certificate of service authority. The Commission shall not | ||||||
24 | accept an application for a certificate of service authority | ||||||
25 | from an alternative retail electric supplier that has lost | ||||||
26 | certification under this subsection (f), or any corporate |
| |||||||
| |||||||
1 | affiliate thereof, for at least one year after the date of | ||||||
2 | revocation. | ||||||
3 | (g) All of the provisions of this Section apply to electric | ||||||
4 | utilities operating outside their service area except under | ||||||
5 | item (2) of subsection (a) of this Section the quantity of | ||||||
6 | renewable energy resources shall be measured as a percentage of | ||||||
7 | the actual amount of electricity (megawatt-hours) supplied in | ||||||
8 | the State outside of the utility's service territory during the | ||||||
9 | 12-month period June 1 through May 31, commencing June 1, 2009, | ||||||
10 | and the comparable 12-month period in each year thereafter | ||||||
11 | except as provided in item (6) of subsection (a) of this | ||||||
12 | Section. | ||||||
13 | If any such utility fails to procure the requisite quantity | ||||||
14 | of renewable energy resources by the annual deadline, then the | ||||||
15 | Commission shall require the utility to double the alternative | ||||||
16 | compliance payment that would otherwise be required to bring | ||||||
17 | the utility into compliance with this Section. | ||||||
18 | If any such utility fails to comply with the renewable | ||||||
19 | energy resource portfolio requirement in this Section more than | ||||||
20 | once in a 5-year period, then the Commission shall order the | ||||||
21 | utility to cease all sales outside of the utility's service | ||||||
22 | territory for a period of at least one year. | ||||||
23 | (h) The provisions of this Section and the provisions of | ||||||
24 | subsection (d) of Section 16-115 of this Act relating to | ||||||
25 | procurement of renewable energy resources shall not apply to an | ||||||
26 | alternative retail electric supplier that operates a combined |
| |||||||
| |||||||
1 | heat and power system in this State or that has a corporate | ||||||
2 | affiliate that operates such a combined heat and power system | ||||||
3 | in this State that supplies electricity primarily to or for the | ||||||
4 | benefit of: (i) facilities owned by the supplier, its | ||||||
5 | subsidiary, or other corporate affiliate; (ii) facilities | ||||||
6 | electrically integrated with the electrical system of | ||||||
7 | facilities owned by the supplier, its subsidiary, or other | ||||||
8 | corporate affiliate; or (iii) facilities that are adjacent to | ||||||
9 | the site on which the combined heat and power system is | ||||||
10 | located.
| ||||||
11 | (i) The obligations specified in this Section of | ||||||
12 | alternative retail electric suppliers and electric utilities | ||||||
13 | operating outside their service territories to procure | ||||||
14 | renewable energy resources, make alternative compliance | ||||||
15 | payments, and file annual reports, and the obligations of the | ||||||
16 | Commission to determine and post alternative compliance | ||||||
17 | payment rates, shall terminate effective with the filing of | ||||||
18 | reports and full payments made by alternative retail electric | ||||||
19 | suppliers for energy deliveries to customers for the period | ||||||
20 | ending May 31, 2016, provided that alternative retail electric | ||||||
21 | suppliers and electric utilities operating outside their | ||||||
22 | service territories shall be obligated to make all alternative | ||||||
23 | compliance payments that they were obligated to pay for periods | ||||||
24 | through and including May 31, 2016 but were not paid as of that | ||||||
25 | date and to file all required reports for periods prior to June | ||||||
26 | 1, 2016. The Commission shall continue to enforce the payment |
| |||||||
| |||||||
1 | of unpaid alternative compliance payments after May 31, 2016 in | ||||||
2 | accordance with subsections (f) and (g) of this Section. All | ||||||
3 | alternative compliance payments made after May 31, 2016 shall | ||||||
4 | be deposited in the Illinois Power Agency Renewable Energy | ||||||
5 | Resources Fund and used to purchase renewable energy credits in | ||||||
6 | accordance with Section 1-56 of the Illinois Power Agency Act. | ||||||
7 | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | ||||||
8 | 96-1437, eff. 8-17-10; 97-658, eff. 1-13-12.) | ||||||
9 | (220 ILCS 5/19-140)
| ||||||
10 | Sec. 19-140. On-bill financing program; gas utilities. | ||||||
11 | (a) The Illinois General Assembly finds that Illinois homes | ||||||
12 | and businesses have the potential to save energy through | ||||||
13 | conservation and cost-effective energy efficiency measures. | ||||||
14 | Programs created pursuant to this Section will allow utility | ||||||
15 | customers to purchase cost-effective energy efficiency | ||||||
16 | measures, including measures set forth in a | ||||||
17 | Commission-approved energy efficiency plan under Section 8-104 | ||||||
18 | of this Act, with no required initial upfront payment, and to | ||||||
19 | pay the cost of those products and services over time on their | ||||||
20 | utility bill. | ||||||
21 | (a-5) As used in this Section: | ||||||
22 | "Eligible gas energy efficiency measure" or "measure" | ||||||
23 | means a product or service for which one or more of the | ||||||
24 | following is true: | ||||||
25 | (1) a building energy assessment, performed by an |
| |||||||
| |||||||
1 | energy auditor who is certified by the Building Performance | ||||||
2 | Institute or who holds a similar certification, has | ||||||
3 | recommended the product or service as likely to be | ||||||
4 | cost-effective over the course of its installed life for | ||||||
5 | the building in which the measure is to be installed; | ||||||
6 | (2) the projected gas savings (determined by rates in | ||||||
7 | effect at the time of purchase) are sufficient to cover the | ||||||
8 | costs of implementing the measures, including finance | ||||||
9 | charges and any program fees not recovered pursuant to | ||||||
10 | subsection (f) of this Section; | ||||||
11 | (3) the product or service is included in a | ||||||
12 | Commission-approved energy efficiency and demand-response | ||||||
13 | plan under Section 8-104 of this Act and is cost-effective | ||||||
14 | as that term is defined by that Section; or | ||||||
15 | (4) the product or service is necessary to safely or | ||||||
16 | correctly install to code or industry standard an | ||||||
17 | efficiency measure, including, but not limited to | ||||||
18 | installation work, changes needed to plumbing or | ||||||
19 | electrical connections, upgrades to wiring or fixtures, | ||||||
20 | removal of hazardous materials, correction of leaks, | ||||||
21 | changes to thermostats, controls, or similar devices, and | ||||||
22 | changes to venting or exhaust necessitated by the measure. | ||||||
23 | "Small commercial customer" for a gas utility shall be | ||||||
24 | defined in that gas utility's filing that is made under | ||||||
25 | subsection (c-5) of this Section. | ||||||
26 | (b) Notwithstanding any other provision of this Act, a gas |
| |||||||
| |||||||
1 | utility serving more than 100,000 customers on January 1, 2009 | ||||||
2 | shall offer a Commission-approved on-bill financing program | ||||||
3 | ("program") that allows its retail customers who own a | ||||||
4 | residential single family home, duplex, or other residential | ||||||
5 | building with 4 or less units, or condominium at which the gas | ||||||
6 | service is being provided (i) to borrow funds from a third | ||||||
7 | party lender in order to purchase gas energy efficiency | ||||||
8 | measures approved under the program for installation in such | ||||||
9 | home or condominium without any required upfront payment and | ||||||
10 | (ii) to pay back such funds over time through the gas utility's | ||||||
11 | bill. Based upon the process described in subsection (b-5) of | ||||||
12 | this Section, small commercial customers who own the premises | ||||||
13 | at which gas service is being provided may be included in such | ||||||
14 | program. After receiving a request from a gas utility for | ||||||
15 | approval of a proposed program and tariffs pursuant to this | ||||||
16 | Section, the Commission shall render its decision within 120 | ||||||
17 | days. If no decision is rendered within 120 days, then the | ||||||
18 | request shall be deemed to be approved. Beginning no later than | ||||||
19 | December 31, 2013, a gas utility subject to this subsection (b) | ||||||
20 | shall also offer its program to eligible retail customers that | ||||||
21 | own a multifamily residential or mixed-use building with no | ||||||
22 | more than 50 residential units , provided, however, that such | ||||||
23 | customer must either be a residential customer or small | ||||||
24 | commercial customer and may not use the program in such a way | ||||||
25 | that repayment of the cost of energy efficiency measures is | ||||||
26 | made through tenants' utility bills. A gas utility may impose a |
| |||||||
| |||||||
1 | per site loan limit not to exceed $150,000. The program, and | ||||||
2 | loans issued thereunder, shall only be offered to customers of | ||||||
3 | the utility that meet the requirements of this Section and that | ||||||
4 | also have a gas service account at the premises where the | ||||||
5 | energy efficiency measures being financed shall be installed. | ||||||
6 | Beginning no later than December 31, 2015, a gas utility | ||||||
7 | subject to this subsection (b) shall also offer its program to | ||||||
8 | eligible retail customers that are Unit Owners' Associations, | ||||||
9 | as defined in subsection (o) of Section 2 of the Condominium | ||||||
10 | Property Act, or Master Associations, as defined in subsection | ||||||
11 | (u) of Section 2 of the Condominium Property Act; however, such | ||||||
12 | customers must either be a residential customer or small | ||||||
13 | commercial customer and may not use the program in such a way | ||||||
14 | that repayment of the cost of energy efficiency measures is | ||||||
15 | made through unit owners' utility bills. The program and loans | ||||||
16 | issued under the program shall only be offered to customers of | ||||||
17 | the utility that meet the requirements of this Section and that | ||||||
18 | also have a gas service account at the premises where the | ||||||
19 | energy efficiency measures being financed shall be installed. | ||||||
20 | For purposes of this Section, a small commercial customer | ||||||
21 | for a gas utility shall be defined in that gas utility's | ||||||
22 | informational filing that is made under subsection (c-5) of | ||||||
23 | this Section. | ||||||
24 | (b-5) Within 30 days after the effective date of this | ||||||
25 | amendatory Act of the 96th General Assembly, the Commission | ||||||
26 | shall convene a workshop process during which interested |
| |||||||
| |||||||
1 | participants may discuss issues related to the program, | ||||||
2 | including program design, eligible gas energy efficiency | ||||||
3 | measures, vendor qualifications, and a methodology for | ||||||
4 | ensuring ongoing compliance with such qualifications, | ||||||
5 | financing, sample documents such as request for proposals, | ||||||
6 | contracts and agreements, dispute resolution, pre-installment | ||||||
7 | and post-installment verification, and evaluation. The | ||||||
8 | workshop process shall be completed within 150 days after the | ||||||
9 | effective date of this amendatory Act of the 96th General | ||||||
10 | Assembly. | ||||||
11 | (c) Not later than 60 days following completion of the | ||||||
12 | workshop process described in subsection (b-5) of this Section, | ||||||
13 | each gas utility subject to subsection (b) of this Section | ||||||
14 | shall submit a proposed program to the Commission that contains | ||||||
15 | the following components: | ||||||
16 | (1) A description of how the program will determine if | ||||||
17 | measures to be financed are eligible electric energy | ||||||
18 | efficiency measures, as defined in subsection (a-5) of this | ||||||
19 | Section. A list of recommended gas energy efficiency | ||||||
20 | measures that will be eligible for on-bill financing. An | ||||||
21 | eligible gas energy efficiency measure ("measure") shall | ||||||
22 | be a product or service for which one or more of the | ||||||
23 | following is true: | ||||||
24 | (A) (blank); | ||||||
25 | (B) the projected gas savings (determined by rates | ||||||
26 | in effect at the time of purchase) are sufficient to |
| |||||||
| |||||||
1 | cover the costs of implementing the measures, | ||||||
2 | including finance charges and any program fees not | ||||||
3 | recovered pursuant to subsection (f) of this Section; | ||||||
4 | or | ||||||
5 | (C) the product or service is included in a
| ||||||
6 | Commission-approved energy efficiency plan under | ||||||
7 | Section 8-104 of this Act. | ||||||
8 | (2) The gas utility shall issue a request for proposals | ||||||
9 | ("RFP") to lenders for purposes of providing financing to | ||||||
10 | participants to pay for approved measures. The RFP criteria | ||||||
11 | shall include, but not be limited to, the interest rate, | ||||||
12 | origination fees, and credit terms. The utility shall | ||||||
13 | select the winning bidders based on its evaluation of these | ||||||
14 | criteria, with a preference for those bids containing the | ||||||
15 | rates, fees, and terms most favorable to participants. | ||||||
16 | (3) The utility shall work with the lenders selected | ||||||
17 | pursuant to the RFP process, and with vendors, to establish | ||||||
18 | the terms and processes pursuant to which a participant can | ||||||
19 | purchase eligible gas energy efficiency measures using the | ||||||
20 | financing obtained from the lender. The vendor shall | ||||||
21 | explain and offer the approved financing packaging to those | ||||||
22 | customers identified in subsection (b) of this Section and | ||||||
23 | shall assist customers in applying for financing. As part | ||||||
24 | of such process, vendors shall also provide to participants | ||||||
25 | information about any other incentives that may be | ||||||
26 | available for the measures. |
| |||||||
| |||||||
1 | (4) The lender shall conduct credit checks or undertake | ||||||
2 | other appropriate measures to limit credit risk, and shall | ||||||
3 | review and approve or deny financing applications | ||||||
4 | submitted by customers identified in subsection (b) of this | ||||||
5 | Section. If a customer is not approved for financing as a | ||||||
6 | result of a credit check, the lender shall determine | ||||||
7 | whether to approve or deny financing by considering the | ||||||
8 | customer's utility bill repayment history and the bill | ||||||
9 | reductions likely from the energy efficiency measures to be | ||||||
10 | financed and other appropriate measures. Following the | ||||||
11 | lender's approval of financing and the participant's | ||||||
12 | purchase of the measure or measures, the lender shall | ||||||
13 | forward payment information to the gas utility, and the | ||||||
14 | utility shall add as a separate line item on the | ||||||
15 | participant's utility bill a charge showing the amount due | ||||||
16 | under the program each month. | ||||||
17 | (5) A loan issued to a participant pursuant to the | ||||||
18 | program shall be the sole responsibility of the | ||||||
19 | participant, and any dispute that may arise concerning the | ||||||
20 | loan's terms, conditions, or charges shall be resolved | ||||||
21 | between the participant and lender. Upon transfer of the | ||||||
22 | property title for the premises at which the participant | ||||||
23 | receives gas service from the utility or the participant's | ||||||
24 | request to terminate service at such premises, the | ||||||
25 | participant shall pay in full its gas utility bill, | ||||||
26 | including all amounts due under the program, provided that |
| |||||||
| |||||||
1 | this obligation may be modified as provided in subsection | ||||||
2 | (g) of this Section. Amounts due under the program shall be | ||||||
3 | deemed amounts owed for residential and, as appropriate, | ||||||
4 | small commercial gas service. | ||||||
5 | (6) The gas utility shall remit payment in full to the | ||||||
6 | lender each month on behalf of the participant. In the | ||||||
7 | event a participant defaults on payment of its gas utility | ||||||
8 | bill, the gas utility shall continue to remit all payments | ||||||
9 | due under the program to the lender, up to the larger of | ||||||
10 | $10,000,000 or 50% of the total allowable outstanding | ||||||
11 | amount financed under paragraph (7) of this subsection (c), | ||||||
12 | and the utility shall be entitled to recover all costs | ||||||
13 | related to a participant's nonpayment , up to the larger of | ||||||
14 | $10,000,000 or 50% of the total allowable outstanding | ||||||
15 | amount financed under paragraph (7) of this subsection (c), | ||||||
16 | through the automatic adjustment clause tariff established | ||||||
17 | pursuant to Section 19-145 of this Act. In addition, the | ||||||
18 | gas utility shall retain a security interest in the measure | ||||||
19 | or measures purchased under the program, and the utility | ||||||
20 | retains its right to disconnect a participant that defaults | ||||||
21 | on the payment of its utility bill. | ||||||
22 | (7) The total outstanding amount financed under the | ||||||
23 | program in this subsection and subsection (c-5) of this | ||||||
24 | Section shall not exceed $20,000,000 $2.5 million for a gas | ||||||
25 | utility or gas utilities under a single holding company, | ||||||
26 | provided that the gas utility or gas utilities may petition |
| |||||||
| |||||||
1 | the Commission for an increase in such amount. | ||||||
2 | (c-5) Within 120 days after the effective date of this | ||||||
3 | amendatory Act of the 98th General Assembly, each covered gas | ||||||
4 | utility shall submit an informational filing to the Commission | ||||||
5 | that describes its plan for implementing the provisions of this | ||||||
6 | amendatory Act of the 98th General Assembly on or before | ||||||
7 | December 31, 2013. A gas utility subject to this Section shall | ||||||
8 | cooperate with any electric utility that provides electric | ||||||
9 | service to buildings within the gas utility's service territory | ||||||
10 | so that it is practical and feasible for the owner of a | ||||||
11 | multifamily building to make a single application to access | ||||||
12 | loans for both gas and electric energy efficiency measures in | ||||||
13 | any individual building. | ||||||
14 | Within 60 days after the effective date of this amendatory | ||||||
15 | Act of the 99th General Assembly, each electric utility subject | ||||||
16 | to the requirements of this Section shall submit a filing to | ||||||
17 | the Commission that describes its plan for implementing the | ||||||
18 | provisions of this amendatory Act of the 99th General Assembly | ||||||
19 | on or before December 31, 2015. The Commission shall seek | ||||||
20 | public comment on the utility's plan and shall issue an order | ||||||
21 | approving or disapproving each plan within 120 days of its | ||||||
22 | submission. If the Commission disapproves a plan, the | ||||||
23 | Commission shall, within 30 days, describe in detail the | ||||||
24 | reasons for the disapproval and describe a path by which the | ||||||
25 | utility may file a revised draft of the plan to address the | ||||||
26 | Commission's concerns satisfactorily. |
| |||||||
| |||||||
1 | (d) A program approved by the Commission shall also include | ||||||
2 | the following criteria and guidelines for such program: | ||||||
3 | (1) guidelines for financing of measures installed | ||||||
4 | under a program, including, but not limited to, RFP | ||||||
5 | criteria and limits on both individual loan amounts and the | ||||||
6 | duration of the loans; | ||||||
7 | (2) criteria and standards for identifying and | ||||||
8 | approving measures; | ||||||
9 | (3) qualifications of vendors that will market or | ||||||
10 | install measures, as well as a methodology for ensuring | ||||||
11 | ongoing compliance with such qualifications; | ||||||
12 | (4) sample contracts and agreements necessary to | ||||||
13 | implement the measures and program; and | ||||||
14 | (5) the types of data and information that utilities | ||||||
15 | and vendors participating in the program shall collect for | ||||||
16 | purposes of preparing the reports required under | ||||||
17 | subsection (g) of this Section. | ||||||
18 | (e) The proposed program submitted by each gas utility | ||||||
19 | shall be consistent with the provisions of this Section that | ||||||
20 | define operational, financial, and billing arrangements | ||||||
21 | between and among program participants, vendors, lenders, and | ||||||
22 | the gas utility. | ||||||
23 | (f) A gas utility shall recover all of the prudently | ||||||
24 | incurred costs of offering a program approved by the Commission | ||||||
25 | pursuant to this Section, including, but not limited to, all | ||||||
26 | start-up and administrative costs and the costs for program |
| |||||||
| |||||||
1 | evaluation. All prudently incurred costs under this Section | ||||||
2 | shall be recovered from the residential and small commercial | ||||||
3 | retail customer classes eligible to participate in the program | ||||||
4 | through the automatic adjustment clause tariff established | ||||||
5 | pursuant to Section 8-104 of this Act. | ||||||
6 | (g) An independent evaluation of a program shall be | ||||||
7 | conducted after 3 years of the program's operation. The gas | ||||||
8 | utility shall retain an independent evaluator who shall | ||||||
9 | evaluate the effects of the measures installed under the | ||||||
10 | program and the overall operation of the program, including, | ||||||
11 | but not limited to, customer eligibility criteria and whether | ||||||
12 | the payment obligation for permanent gas energy efficiency | ||||||
13 | measures that will continue to provide benefits of energy | ||||||
14 | savings should attach to the meter location. As part of the | ||||||
15 | evaluation process, the evaluator shall also solicit feedback | ||||||
16 | from participants and interested stakeholders. The evaluator | ||||||
17 | shall issue a report to the Commission on its findings no later | ||||||
18 | than 4 years after the date on which the program commenced, and | ||||||
19 | the Commission shall issue a report to the Governor and General | ||||||
20 | Assembly including a summary of the information described in | ||||||
21 | this Section as well as its recommendations as to whether the | ||||||
22 | program should be discontinued, continued with modification or | ||||||
23 | modifications or continued without modification, provided that | ||||||
24 | any recommended modifications shall only apply prospectively | ||||||
25 | and to measures not yet installed or financed. The Commission's | ||||||
26 | report shall discuss changes to the program that were not |
| |||||||
| |||||||
1 | considered in the independent evaluation, if any. | ||||||
2 | (h) A gas utility offering a Commission-approved program | ||||||
3 | pursuant to this Section shall not be required to comply with | ||||||
4 | any other statute, order, rule, or regulation of this State | ||||||
5 | that may relate to the offering of such program, provided that | ||||||
6 | nothing in this Section is intended to limit the gas utility's | ||||||
7 | obligation to comply with this Act and the Commission's orders, | ||||||
8 | rules, and regulations, including Part 280 of Title 83 of the | ||||||
9 | Illinois Administrative Code. | ||||||
10 | (i) The source of a utility customer's gas supply shall not | ||||||
11 | disqualify a customer from participation in the utility's | ||||||
12 | on-bill financing program. Customers of alternative gas | ||||||
13 | suppliers may participate in the program under the same terms | ||||||
14 | and conditions applicable to the utility's supply customers.
| ||||||
15 | (Source: P.A. 98-586, eff. 8-27-13.) | ||||||
16 | Section 15. The Environmental Protection Act is amended by | ||||||
17 | changing Section 9.1 as follows:
| ||||||
18 | (415 ILCS 5/9.1) (from Ch. 111 1/2, par. 1009.1)
| ||||||
19 | Sec. 9.1.
(a) The General Assembly finds that the federal | ||||||
20 | Clean Air
Act, as amended, and regulations adopted pursuant | ||||||
21 | thereto establish complex
and detailed provisions for | ||||||
22 | State-federal cooperation in the field of air
pollution | ||||||
23 | control, provide for a Prevention of Significant Deterioration
| ||||||
24 | program to regulate the issuance of preconstruction permits to |
| |||||||
| |||||||
1 | insure that
economic growth will occur in a manner consistent | ||||||
2 | with the preservation
of existing clean air resources, and also | ||||||
3 | provide for plan requirements for
nonattainment areas to | ||||||
4 | regulate the construction, modification and operation
of | ||||||
5 | sources of air pollution to insure that economic growth will | ||||||
6 | occur in
a manner consistent with the goal of achieving the | ||||||
7 | national ambient air
quality standards, and that the General | ||||||
8 | Assembly cannot conveniently or
advantageously set forth in | ||||||
9 | this Act all the requirements of such
federal Act or all | ||||||
10 | regulations which may be established thereunder.
| ||||||
11 | It is the purpose of this Section to avoid the existence of | ||||||
12 | duplicative,
overlapping or conflicting State and federal | ||||||
13 | regulatory systems.
| ||||||
14 | (b) The provisions of Section 111 of the federal Clean Air | ||||||
15 | Act (42
USC 7411), as amended, relating to standards of | ||||||
16 | performance for new
stationary sources, and Section 112 of the | ||||||
17 | federal Clean Air Act (42 USC
7412), as amended, relating to | ||||||
18 | the establishment of national emission
standards for hazardous | ||||||
19 | air pollutants are applicable in this State and are
enforceable | ||||||
20 | under this Act. Any such enforcement shall be stayed
consistent | ||||||
21 | with any stay granted in any federal judicial action to review
| ||||||
22 | such standards. Enforcement shall be consistent with the | ||||||
23 | results of any
such judicial review.
| ||||||
24 | (b-5) (1) Upon the promulgation by the U.S. Environmental | ||||||
25 | Protection Agency (USEPA) of a final rule regulating carbon | ||||||
26 | dioxide emissions from existing electric generating units |
| |||||||
| |||||||
1 | under 42 U.S.C. 7411(d) that allows for mass-based compliance | ||||||
2 | and maintains state flexibility to achieve compliance using | ||||||
3 | market-based tools (USEPA Rule), the Illinois Environmental | ||||||
4 | Protection Agency shall develop a state implementation plan | ||||||
5 | (Plan) to comply with the requirements of the USEPA rule by | ||||||
6 | creating a market-based system to reduce carbon dioxide and | ||||||
7 | create a revenue stream to be used by the State of Illinois | ||||||
8 | consistent with paragraphs (2) through (4) of this subsection | ||||||
9 | (b-5). | ||||||
10 | (2) The Illinois Environmental Protection Agency (Agency) | ||||||
11 | is authorized to create and implement a cap and invest program | ||||||
12 | or similar market mechanism (Program) to comply with the USEPA | ||||||
13 | rule, after undertaking a robust and open stakeholder process | ||||||
14 | and a comprehensive analysis and modeling of the impact of such | ||||||
15 | a program on Illinois' energy system, ratepayers, and | ||||||
16 | communities. | ||||||
17 | (A) The Illinois Environmental Protection Agency shall | ||||||
18 | adopt rules to implement the Program consistent with this | ||||||
19 | Act. | ||||||
20 | (B) A comprehensive market-based program shall, at a | ||||||
21 | minimum, achieve the carbon emissions reductions required | ||||||
22 | to meet Illinois' mass-based goal under its Plan and create | ||||||
23 | a mechanism to achieve additional emissions reductions | ||||||
24 | from the power sector when implemented in conjunction with | ||||||
25 | other State policies, including Illinois' Renewable Energy | ||||||
26 | Standard and Energy Efficiency Resource Standard. |
| |||||||
| |||||||
1 | (C) The Illinois Environmental Protection Agency is | ||||||
2 | authorized to evaluate, establish, implement, and manage | ||||||
3 | an annual cap on CO2 emissions and administer an auction | ||||||
4 | program to sell power sector CO2 allowances in a | ||||||
5 | market-based program consistent with this Act and the USEPA | ||||||
6 | rule. The Program shall include a minimum emissions | ||||||
7 | allowance price calibrated to ensure compliance with the | ||||||
8 | State's obligations under the USEPA rule. | ||||||
9 | (D) The Agency shall make every effort to participate | ||||||
10 | in a regional program and regional allowance auctions with | ||||||
11 | other states if it results in greater carbon dioxide | ||||||
12 | emission reductions at a lower cost for Illinois' residents | ||||||
13 | over time. The Agency may conduct Illinois-only auctions if | ||||||
14 | such auctions are found to be in the best interests of | ||||||
15 | Illinois ratepayers, as determined by the Agency, and after | ||||||
16 | consultation with the Illinois Commerce Commission, taking | ||||||
17 | into account the impact on the State's goals under the | ||||||
18 | USEPA rule, State residents' health, and ratepayers. | ||||||
19 | Participation in a regional program does not relieve the | ||||||
20 | Agency of its obligations to comply with the provisions of | ||||||
21 | this Act. | ||||||
22 | (E) The Agency shall perform an environmental justice | ||||||
23 | analysis of its Plan to ensure compliance with the USEPA | ||||||
24 | rule and Federal Executive Order No. 12898, including a | ||||||
25 | cumulative impacts assessment as part of its environmental | ||||||
26 | impact assessment of the Program, following existing USEPA |
| |||||||
| |||||||
1 | methodologies. | ||||||
2 | (F) The Agency shall develop, in coordination with the | ||||||
3 | Illinois Environmental Justice Commission, through an open | ||||||
4 | and inclusive stakeholder process, a list of Environmental | ||||||
5 | Justice Communities, defined as distinct geographic areas | ||||||
6 | of low-income and minority communities that are | ||||||
7 | disproportionately impacted by power plant pollution and | ||||||
8 | co-pollutant emissions. | ||||||
9 | (G) Any Program shall address and mitigate the | ||||||
10 | displacement of Illinois carbon dioxide emissions to other | ||||||
11 | states as well as establish appropriate spatial | ||||||
12 | restrictions on allowance trading to avoid the creation of | ||||||
13 | co-pollutant hotspots or areas with high concentrations of | ||||||
14 | co-pollutants, defined in terms of cumulative impacts. | ||||||
15 | (H) After a Program is in place, the Agency shall | ||||||
16 | require existing electric generating units located in | ||||||
17 | low-income and minority communities to install and | ||||||
18 | maintain monitors that provide detailed information on | ||||||
19 | co-pollutant emissions tied to the purchase of allowances | ||||||
20 | under the program. Information on these trading | ||||||
21 | transactions and reports on emission levels shall be | ||||||
22 | available to the public. | ||||||
23 | (I) The authority in this subsection (b-5) is | ||||||
24 | restricted to verifiable carbon dioxide emissions | ||||||
25 | allowances and credits within the power sector and does not | ||||||
26 | permit inclusion of carbon emissions allowances, credits, |
| |||||||
| |||||||
1 | or offsets from other sectors of the economy. | ||||||
2 | (3) The Illinois Environmental Protection Agency is | ||||||
3 | authorized to invest the auction proceeds under this Act in | ||||||
4 | strategies to meet the State's goal under the USEPA rule, | ||||||
5 | create jobs in the State's renewable energy and energy | ||||||
6 | efficiency industries (as defined in the Illinois Power Agency | ||||||
7 | Act), enable workers' transition to renewable energy jobs, and | ||||||
8 | mitigate adverse health and economic impacts of fossil | ||||||
9 | fuel-fired power plants on minority and low-income | ||||||
10 | communities, in a manner consistent with this Act. | ||||||
11 | (A) A minimum of 65% of the revenue the Agency receives | ||||||
12 | from the Program (Revenue) shall be directed to the | ||||||
13 | Illinois Power Agency to spend on new energy efficiency and | ||||||
14 | renewable energy investments anywhere in the State. At | ||||||
15 | least 20% of this portion must be invested to support | ||||||
16 | energy efficiency and renewable energy investments in | ||||||
17 | low-income communities and low-income households, where | ||||||
18 | preference shall be given to investments in communities | ||||||
19 | designated as Environmental Justice Communities, followed | ||||||
20 | by investments in communities where power plants are or | ||||||
21 | have been located. A portion of these funds shall support | ||||||
22 | energy efficiency and renewable energy projects designed | ||||||
23 | to assist public institutions, including, but not limited | ||||||
24 | to, hospitals, health care facilities, long-term care | ||||||
25 | facilities, schools, preschools, daycare facilities, and | ||||||
26 | wastewater and drinking water treatment plant operators, |
| |||||||
| |||||||
1 | with reducing their operating costs. | ||||||
2 | (B) A minimum of 5% of the Revenue shall be directed to | ||||||
3 | the Low Income Home Energy Assistance Program for bill | ||||||
4 | assistance. | ||||||
5 | (C) A minimum of 5% of the Revenue shall be directed to | ||||||
6 | assist workers in the fossil fuel-fired power plant | ||||||
7 | industry to transition to renewable energy and energy | ||||||
8 | efficiency jobs. | ||||||
9 | (D) A minimum of 10% of the Revenue shall be directed | ||||||
10 | to communities in which power plants are or have been | ||||||
11 | located to mitigate the adverse health and economic impacts | ||||||
12 | of power plants on those communities. Priority shall be | ||||||
13 | given to areas that are designated non-attainment for any | ||||||
14 | criteria pollutant under the Clean Air Act. | ||||||
15 | (E) A maximum of 5% of the Revenue shall be reserved | ||||||
16 | for program administration, pollutant and co-pollutant | ||||||
17 | monitoring as required under item (H) of paragraph (2) of | ||||||
18 | this subsection (b-5), to invest in innovative strategies | ||||||
19 | to reduce carbon emissions in the power sector, mitigate | ||||||
20 | the impacts of climate change, and to increase public | ||||||
21 | awareness of the impacts of climate change. | ||||||
22 | (4) In the development and operation of the Program, the | ||||||
23 | Illinois Environmental Protection Agency is prohibited from | ||||||
24 | doing the following: | ||||||
25 | (A) Implementing any program that leads to the | ||||||
26 | degradation of air quality, or significantly hindering the |
| |||||||
| |||||||
1 | attainment of other air quality standards under this Act. | ||||||
2 | (B) Allocating CO2 allowances to sources covered under | ||||||
3 | the Program for free. | ||||||
4 | (C) Approving of any CO2 credits for emission | ||||||
5 | reductions, allowances, or offsets from outside the scope | ||||||
6 | of the Program. | ||||||
7 | (c) The Board may adopt regulations establishing permit | ||||||
8 | programs meeting
the requirements of Sections 165 and 173 of | ||||||
9 | the Clean Air Act (42 USC 7475
and 42 USC 7503) as amended. The | ||||||
10 | Agency may adopt procedures for the
administration of such | ||||||
11 | programs.
| ||||||
12 | (d) No person shall:
| ||||||
13 | (1) violate any provisions of Sections 111, 112, 165 or | ||||||
14 | 173 of the
Clean Air Act, as now or hereafter amended, or | ||||||
15 | federal regulations
adopted pursuant thereto; or
| ||||||
16 | (2) construct, install, modify or operate any | ||||||
17 | equipment, building,
facility, source or installation | ||||||
18 | which is subject to regulation under
Sections 111, 112, 165 | ||||||
19 | or 173 of the Clean Air Act, as now or hereafter
amended, | ||||||
20 | except in compliance with the requirements of such Sections | ||||||
21 | and
federal regulations adopted pursuant thereto, and no | ||||||
22 | such action shall be
undertaken (A) without a permit | ||||||
23 | granted by the Agency whenever a permit is required | ||||||
24 | pursuant to (i) this Act or Board regulations or (ii) | ||||||
25 | Section 111, 112, 165, or 173 of the Clean Air Act or | ||||||
26 | federal regulations adopted pursuant thereto or (B) in |
| |||||||
| |||||||
1 | violation of any
conditions imposed by such permit. Any | ||||||
2 | denial of such a permit or any
conditions imposed in such a | ||||||
3 | permit shall be reviewable by the Board in
accordance with | ||||||
4 | Section 40 of this Act.
| ||||||
5 | (e) The Board shall exempt from regulation under the State | ||||||
6 | Implementation
Plan for ozone the volatile organic compounds | ||||||
7 | which have been determined
by the U.S. Environmental Protection | ||||||
8 | Agency to be exempt from regulation
under state implementation | ||||||
9 | plans for ozone due to negligible photochemical
reactivity. In | ||||||
10 | accordance with subsection (b) of Section 7.2, the Board
shall | ||||||
11 | adopt regulations identical in substance to the U.S. | ||||||
12 | Environmental
Protection Agency exemptions or deletion of | ||||||
13 | exemptions published in policy
statements on the control of | ||||||
14 | volatile organic compounds in the Federal
Register by amending | ||||||
15 | the list of exemptions to the Board's definition of
volatile | ||||||
16 | organic material found at 35 Ill. Adm. Code Part 211. The
| ||||||
17 | provisions and requirements of Title VII of this Act shall not | ||||||
18 | apply to
regulations adopted under this subsection. Section | ||||||
19 | 5-35 of the Illinois
Administrative Procedure Act, relating to | ||||||
20 | procedures for rulemaking, does not
apply to regulations | ||||||
21 | adopted under this subsection. However, the Board shall
provide | ||||||
22 | for notice, a hearing if required by the U.S. Environmental | ||||||
23 | Protection
Agency, and public comment before adopted rules are | ||||||
24 | filed with the Secretary of
State. The Board may consolidate | ||||||
25 | into a single rulemaking under this subsection
all such federal | ||||||
26 | policy statements published in the Federal Register within a
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | period of time not to exceed 6 months.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | (f) (Blank).
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | (Source: P.A. 97-95, eff. 7-12-11; 98-284, eff. 8-9-13.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | becoming law.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||