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Electric Utility Oversight Committee
Adopted in House Comm. on Mar 12, 2008
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LRB095 17917 MJR 48216 a |
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| AMENDMENT TO HOUSE BILL 5855
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| AMENDMENT NO. ______. Amend House Bill 5855 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Illinois Power Agency Act is amended by |
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| changing Section 1-75 as follows: |
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| (20 ILCS 3855/1-75)
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| Sec. 1-75. Planning and Procurement Bureau. The Planning |
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| and Procurement Bureau has the following duties and |
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| responsibilities: |
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| (a) The Planning and Procurement Bureau shall each |
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| year, beginning in 2008, develop procurement plans and |
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| conduct competitive procurement processes in accordance |
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| with the requirements of Section 16-111.5 of the Public |
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| Utilities Act for the eligible retail customers of electric |
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| utilities that on December 31, 2005 provided electric |
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| service to at least 100,000 customers in Illinois. For the |
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| purposes of this Section, the term "eligible retail |
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| customers" has the same definition as found in Section |
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| 16-111.5(a) of the Public Utilities Act. |
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| (1) The Agency shall each year, beginning in 2008, |
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| as needed, issue a request for qualifications for |
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| experts or expert consulting firms to develop the |
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| procurement plans in accordance with Section 16-111.5 |
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| of the Public Utilities Act. In order to qualify an |
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| expert or expert consulting firm must have: |
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| (A) direct previous experience assembling |
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| large-scale power supply plans or portfolios for |
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| end-use customers; |
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| (B) an advanced degree in economics, |
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| mathematics, engineering, risk management, or a |
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| related area of study; |
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| (C) 10 years of experience in the electricity |
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| sector, including managing supply risk; |
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| (D) expertise in wholesale electricity market |
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| rules, including those established by the Federal |
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| Energy Regulatory Commission and regional |
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| transmission organizations; |
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| (E) expertise in credit protocols and |
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| familiarity with contract protocols; |
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| (F) adequate resources to perform and fulfill |
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| the required functions and responsibilities; and |
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| (G) the absence of a conflict of interest and |
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| inappropriate bias for or against potential |
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| bidders or the affected electric utilities. |
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| (2) The Agency shall each year, as needed, issue a |
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| request for qualifications for a procurement |
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| administrator to conduct the competitive procurement |
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| processes in accordance with Section 16-111.5 of the |
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| Public Utilities Act. In order to qualify an expert or |
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| expert consulting firm must have: |
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| (A) direct previous experience administering a |
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| large-scale competitive procurement process; |
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| (B) an advanced degree in economics, |
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| mathematics, engineering, or a related area of |
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| study; |
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| (C) 10 years of experience in the electricity |
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| sector, including risk management experience; |
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| (D) expertise in wholesale electricity market |
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| rules, including those established by the Federal |
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| Energy Regulatory Commission and regional |
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| transmission organizations; |
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| (E) expertise in credit and contract |
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| protocols; |
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| (F) adequate resources to perform and fulfill |
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| the required functions and responsibilities; and |
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| (G) the absence of a conflict of interest and |
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| inappropriate bias for or against potential |
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| bidders or the affected electric utilities. |
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| (3) The Agency shall provide affected utilities |
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| and other interested parties with the lists of |
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| qualified experts or expert consulting firms |
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| identified through the request for qualifications |
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| processes that are under consideration to develop the |
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| procurement plans and to serve as the procurement |
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| administrator. The Agency shall also provide each |
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| qualified expert's or expert consulting firm's |
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| response to the request for qualifications. All |
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| information provided under this subparagraph shall |
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| also be provided to the Commission. The Agency may |
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| provide by rule for fees associated with supplying the |
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| information to utilities and other interested parties. |
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| These parties shall, within 5 business days, notify the |
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| Agency in writing if they object to any experts or |
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| expert consulting firms on the lists. Objections shall |
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| be based on: |
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| (A) failure to satisfy qualification criteria; |
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| (B) identification of a conflict of interest; |
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| or |
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| (C) evidence of inappropriate bias for or |
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| against potential bidders or the affected |
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| utilities. |
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| The Agency shall remove experts or expert |
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| consulting firms from the lists within 10 days if there |
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| is a reasonable basis for an objection and provide the |
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| updated lists to the affected utilities and other |
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| interested parties. If the Agency fails to remove an |
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| expert or expert consulting firm from a list, an |
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| objecting party may seek review by the Commission |
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| within 5 days thereafter by filing a petition, and the |
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| Commission shall render a ruling on the petition within |
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| 10 days. There is no right of appeal of the |
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| Commission's ruling. |
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| (4) The Agency shall issue requests for proposals |
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| to the qualified experts or expert consulting firms to |
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| develop a procurement plan for the affected utilities |
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| and to serve as procurement administrator. |
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| (5) The Agency shall select an expert or expert |
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| consulting firm to develop procurement plans based on |
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| the proposals submitted and shall award one-year |
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| contracts to those selected with an option for the |
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| Agency for a one-year renewal. |
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| (6) The Agency shall select an expert or expert |
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| consulting firm, with approval of the Commission, to |
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| serve as procurement administrator based on the |
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| proposals submitted. If the Commission rejects, within |
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| 5 days, the Agency's selection, the Agency shall submit |
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| another recommendation within 3 days based on the |
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| proposals submitted. The Agency shall award a one-year |
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| contract to the expert or expert consulting firm so |
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| selected with Commission approval with an option for |
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| the Agency for a one-year renewal. |
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| (b) The experts or expert consulting firms retained by |
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| the Agency shall, as appropriate, prepare procurement |
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| plans, and conduct a competitive procurement process as |
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| prescribed in Section 16-111.5 of the Public Utilities Act, |
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| to ensure adequate, reliable, affordable, efficient, and |
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| environmentally sustainable electric service at the lowest |
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| total cost over time, taking into account any benefits of |
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| price stability, for eligible retail customers of electric |
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| utilities that on December 31, 2005 provided electric |
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| service to at least 100,000 customers in the State of |
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| Illinois. |
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| (c) Renewable portfolio standard. |
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| (1) The procurement plans shall include |
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| cost-effective renewable energy resources. A minimum |
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| percentage of each utility's total supply to serve the |
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| load of eligible retail customers, as defined in |
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| Section 16-111.5(a) of the Public Utilities Act, |
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| procured for each of the following years shall be |
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| generated from cost-effective renewable energy |
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| resources: at least 2% by June 1, 2008; at least 4% by |
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| June 1, 2009; at least 5% by June 1, 2010; at least 6% |
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| by June 1, 2011; at least 7% by June 1, 2012; at least |
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| 8% by June 1, 2013; at least 9% by June 1, 2014; at |
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| least 10% by June 1, 2015; and increasing by at least |
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| 1.5% each year thereafter to at least 25% by June 1, |
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| 2025. To the extent that it is available, at least 75% |
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| of the renewable energy resources used to meet these |
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| standards shall come from wind generation. For |
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| purposes of this Section, "cost-effective" means that |
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| the costs of procuring renewable energy resources do |
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| not cause the limit stated in paragraph (2) of this |
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| subsection (c) to be exceeded. For purposes of meeting |
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| the requirements of this Section, utilities may enter |
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| into contracts with renewable energy generators for a |
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| term of up to 20 years. |
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| (2) For purposes of this subsection (c), the |
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| required procurement of cost-effective renewable |
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| energy resources for a particular year shall be |
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| measured as a percentage of the actual amount of |
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| electricity (megawatt-hours) supplied by the electric |
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| utility to eligible retail customers in the planning |
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| year ending immediately prior to the procurement. For |
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| purposes of this subsection (c), the amount per |
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| kilowatthour means the total amount paid for electric |
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| service expressed on a per kilowatthour basis. For |
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| purposes of this subsection (c), the total amount paid |
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| for electric service includes without limitation |
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| amounts paid for supply, transmission, distribution, |
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| surcharges, and add-on taxes. |
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| Notwithstanding the requirements of this |
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| subsection (c), the total of renewable energy |
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LRB095 17917 MJR 48216 a |
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| resources procured pursuant to the procurement plan |
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| for any single year shall be reduced by an amount |
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| necessary to limit the annual estimated average net |
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| increase due to the costs of these resources included |
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| in the amounts paid by eligible retail customers in |
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| connection with electric service to: |
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| (A) in 2008, no more than 0.5% of the amount |
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| paid per kilowatthour by those customers during |
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| the year ending May 31, 2007; |
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| (B) in 2009, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2008 or 1% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2007; |
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| (C) in 2010, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2009 or |
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| 1.5% of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2007; |
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| (D) in 2011, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2010 or 2% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2007; and |
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| (E) thereafter, the amount of renewable energy |
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| resources procured pursuant to the procurement |
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LRB095 17917 MJR 48216 a |
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| plan for any single year shall be reduced by an |
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| amount necessary to limit the estimated average |
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| net increase due to the cost of these resources |
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| included in the amounts paid by eligible retail |
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| customers in connection with electric service to |
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| no more than the greater of 2.015% of the amount |
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| paid per kilowatthour by those customers during |
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| the year ending May 31, 2007 or the incremental |
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| amount per kilowatthour paid for these resources |
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| in 2011. |
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| No later than June 30, 2011, the Commission shall |
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| review the limitation on the amount of renewable energy |
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| resources procured pursuant to this subsection (c) and |
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| report to the General Assembly its findings as to |
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| whether that limitation unduly constrains the |
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| procurement of cost-effective renewable energy |
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| resources. |
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| (3) Through June 1, 2011, renewable energy |
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| resources shall be counted for the purpose of meeting |
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| the renewable energy standards set forth in paragraph |
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| (1) of this subsection (c) only if they are generated |
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| from facilities located in the State, provided that |
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| cost-effective renewable energy resources are |
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| available from those facilities. If those |
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| cost-effective resources are not available in |
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| Illinois, they shall be procured in states that adjoin |
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LRB095 17917 MJR 48216 a |
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| Illinois and may be counted towards compliance. If |
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| those cost-effective resources are not available in |
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| Illinois or in states that adjoin Illinois, they shall |
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| be purchased elsewhere and shall be counted towards |
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| compliance. After June 1, 2011, cost-effective |
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| renewable energy resources located in Illinois and in |
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| states that adjoin Illinois may be counted towards |
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| compliance with the standards set forth in paragraph |
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| (1) of this subsection (c). If those cost-effective |
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| resources are not available in Illinois or in states |
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| that adjoin Illinois, they shall be purchased |
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| elsewhere and shall be counted towards compliance. |
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| (4) The electric utility shall retire all |
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| renewable energy credits used to comply with the |
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| standard. |
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| (d) The draft procurement plans are subject to public |
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| comment, as required by Section 16-111.5 of the Public |
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| Utilities Act. |
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| (e) The Agency shall submit the final procurement plan |
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| to the Commission. The Agency shall revise a procurement |
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| plan if the Commission determines that it does not meet the |
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| standards set forth in Section 16-111.5 of the Public |
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| Utilities Act. |
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| (f) The Agency shall assess fees to each affected |
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| utility to recover the costs incurred in preparation of the |
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| annual procurement plan for the utility. |
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| (g) The Agency shall assess fees to each bidder to |
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| recover the costs incurred in connection with a competitive |
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| procurement process. |
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| (h) Notwithstanding any other rulemaking authority |
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| that may exist, neither the Governor nor any agency or |
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| agency head under the jurisdiction of the Governor has any |
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| authority to make or promulgate rules to implement or |
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| enforce the provisions of this amendatory Act of the 95th |
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| General Assembly. If, however, the Governor believes that |
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| rules are necessary to implement or enforce the provisions |
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| of this amendatory Act of the 95th General Assembly, the |
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| Governor may suggest rules to the General Assembly by |
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| filing them with the Clerk of the House and the Secretary |
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| of the Senate and by requesting that the General Assembly |
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| authorize such rulemaking by law, enact those suggested |
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| rules into law, or take any other appropriate action in the |
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| General Assembly's discretion. Nothing contained in this |
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| amendatory Act of the 95th General Assembly shall be |
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| interpreted to grant rulemaking authority under any other |
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| Illinois statute where such authority is not otherwise |
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| explicitly given. For the purposes of this amendatory Act |
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| of the 95th General Assembly, "rules" is given the meaning |
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| contained in Section 1-70 of the Illinois Administrative |
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| Procedure Act, and "agency" and "agency head" are given the |
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| meanings contained in Sections 1-20 and 1-25 of the |
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| Illinois Administrative Procedure Act to the extent that |
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LRB095 17917 MJR 48216 a |
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| such definitions apply to agencies or agency heads under |
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| the jurisdiction of the Governor.
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| (Source: P.A. 95-481, eff. 8-28-07.) |
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| Section 10. The Public Utilities Act is amended by changing |
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| Sections 16-107.5 and 16-111.5 as follows: |
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| (220 ILCS 5/16-107.5)
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| Sec. 16-107.5. Net electricity metering. |
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| (a) The Legislature finds and declares that a program to |
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| provide net electricity
metering, as defined in this Section,
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| for eligible customers can encourage private investment in |
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| renewable energy
resources, stimulate
economic growth, enhance |
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| the continued diversification of Illinois' energy
resource |
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| mix, and protect
the Illinois environment.
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| (b) As used in this Section, (i) "eligible customer" means |
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| a retail
customer that owns or operates a
solar, wind, or other |
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| eligible renewable electrical generating facility with a rated |
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| capacity of not more than
2,000 kilowatts that is
located on |
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| the customer's premises and is intended primarily to offset the |
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| customer's
own electrical requirements; (ii) "electricity |
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| provider" means an electric utility or alternative retail |
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| electric supplier; (iii) "eligible renewable electrical |
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| generating facility" means a generator powered by solar |
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| electric energy, wind, dedicated crops grown for electricity |
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| generation, anaerobic digestion of livestock or food |
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| processing waste, fuel cells or microturbines powered by |
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| renewable fuels, or hydroelectric energy; and (iv) "net |
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| electricity metering" (or "net metering") means the
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| measurement, during the
billing period applicable to an |
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| eligible customer, of the net amount of
electricity supplied by |
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| an
electricity provider to the customer's premises or provided |
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| to the electricity provider by the customer.
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| (c) A net metering facility shall be equipped with metering |
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| equipment that can measure the flow of electricity in both |
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| directions at the same rate. For eligible residential |
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| customers, this shall typically be accomplished through use of |
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| a single, bi-directional meter. If the eligible customer's |
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| existing electric revenue meter does not meet this requirement, |
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| the electricity provider shall arrange for the local electric |
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| utility or a meter service provider to install and maintain a |
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| new revenue meter at the electricity provider's expense. For |
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| non-residential customers, the electricity provider may |
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| arrange for the local electric utility or a meter service |
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| provider to install and maintain metering equipment capable of |
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| measuring the flow of electricity both into and out of the |
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| customer's facility at the same rate and ratio, typically |
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| through the use of a dual channel meter. For generators with a |
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| nameplate rating of 40 kilowatts and below, the costs of |
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| installing such equipment shall be paid for by the electricity |
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| provider. For generators with a nameplate rating over 40 |
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| kilowatts and up to 2,000 kilowatts capacity, the costs of |
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| installing such equipment shall be paid for by the customer. |
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| Any subsequent revenue meter change necessitated by any |
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| eligible customer shall be paid for by the customer.
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| (d) An electricity provider shall
measure and charge or |
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| credit for the net
electricity supplied to eligible customers |
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| or provided by eligible customers in
the following manner:
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| (1) If the amount of electricity used by the customer |
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| during the billing
period exceeds the
amount of electricity |
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| produced by the customer, the electricity provider shall |
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| charge the customer for the net electricity supplied to and |
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| used
by the customer as provided in subsection (e) of this |
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| Section.
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| (2) If the amount of electricity produced by a customer |
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| during the billing period exceeds the amount of electricity |
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| used by the customer during that billing period, the |
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| electricity provider supplying that customer shall apply a |
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| 1:1 kilowatt-hour credit to a subsequent bill for service |
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| to the customer for the net electricity supplied to the |
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| electricity provider. The electricity provider shall |
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| continue to carry over any excess kilowatt-hour credits |
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| earned and apply those credits to subsequent billing |
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| periods to offset any customer-generator consumption in |
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| those billing periods until all credits are used or until |
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| the end of the annualized period.
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| (3) At the end of the year or annualized over the |
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| period that service is supplied by means of net metering, |
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LRB095 17917 MJR 48216 a |
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| or in the event that the retail customer terminates service |
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| with the electricity provider prior to the end of the year |
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| or the annualized period, any remaining credits in the |
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| customer's account shall expire.
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| (e) An electricity provider shall provide to net metering |
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| customers electric service at non-discriminatory rates that |
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| are identical, with respect to rate structure, retail rate |
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| components, and any monthly charges, to the rates that the |
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| customer would be charged if not a net metering customer. An |
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| electricity provider shall not charge net metering customers |
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| any fee or charge or require additional equipment, insurance, |
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| or any other requirements not specifically authorized by |
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| interconnection standards authorized by the Commission, unless |
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| the fee, charge, or other requirement would apply to other |
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| similarly situated customers who are not net metering |
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| customers. The customer will remain responsible for all taxes, |
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| fees, and utility delivery charges that would otherwise be |
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| applicable to the net amount of electricity used by the |
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| customer. Subsections (c) through (e) of this Section shall not |
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| be construed to prevent an arms-length agreement between an |
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| electricity provider and an eligible customer that sets forth |
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| different prices, terms, and conditions for the provision of |
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| net metering service, including, but not limited to, the |
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| provision of the appropriate metering equipment for |
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| non-residential customers.
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| (f) Notwithstanding the requirements of subsections (c) |
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| through (e) of this Section, an electricity provider must |
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| require dual-channel metering for non-residential customers |
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| operating eligible renewable electrical generating facilities |
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| with a nameplate rating over 40 kilowatts and up to 2,000 |
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| kilowatts. In such cases, electricity charges and credits shall |
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| be determined as follows:
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| (1) The electricity provider shall assess and the |
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| customer remains responsible for all taxes, fees, and |
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| utility delivery charges that would otherwise be |
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| applicable to the gross amount of kilowatt-hours supplied |
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| to the eligible customer by the electricity provider. |
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| (2) Each month that service is supplied by means of |
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| dual-channel metering, the electricity provider shall |
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| compensate the eligible customer for any excess |
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| kilowatt-hour credits at the electricity provider's |
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| avoided cost of electricity supply over the monthly period |
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| or as otherwise specified by the terms of a power-purchase |
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| agreement negotiated between the customer and electricity |
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| provider. |
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| (3) For all eligible net metering customers taking |
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| service from an electricity provider under contracts or |
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| tariffs employing time of use rates, any monthly |
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| consumption of electricity shall be calculated according |
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| to the terms of the contract or tariff to which the same |
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| customer would be assigned to or be eligible for if the |
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| customer was not a net metering customer. When those same |
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| customer-generators are net generators during any discrete |
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| time of use period, the net kilowatt-hours produced shall |
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| be valued at the same price per kilowatt-hour as the |
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| electric service provider would charge for retail |
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| kilowatt-hour sales during that same time of use period.
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| (g) Notwithstanding subsections (a) through (f) of this |
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| Section, a netmetering customer shall be compensated for all |
8 |
| gross kilowatt-hours generated using photovoltaic technology |
9 |
| at a rate that is 200% of the price the electric service |
10 |
| provider would charge that customer for retail kilowatt-hour |
11 |
| sales during the same period. |
12 |
| (h) (g) For purposes of federal and State laws providing |
13 |
| renewable energy credits or greenhouse gas credits, the |
14 |
| eligible customer shall be treated as owning and having title |
15 |
| to the renewable energy attributes, renewable energy credits, |
16 |
| and greenhouse gas emission credits related to any electricity |
17 |
| produced by the qualified generating unit. The electricity |
18 |
| provider may not condition participation in a net metering |
19 |
| program on the signing over of a customer's renewable energy |
20 |
| credits; provided, however, this subsection (h) (g) shall not |
21 |
| be construed to prevent an arms-length agreement between an |
22 |
| electricity provider and an eligible customer that sets forth |
23 |
| the ownership or title of the credits.
|
24 |
| (i) (h) Within 120 days after the effective date of this
|
25 |
| amendatory Act of the 95th General Assembly, the Commission |
26 |
| shall establish standards for net metering and, if the |
|
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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1 |
| Commission has not already acted on its own initiative, |
2 |
| standards for the interconnection of eligible renewable |
3 |
| generating equipment to the utility system. The |
4 |
| interconnection standards shall address any procedural |
5 |
| barriers, delays, and administrative costs associated with the |
6 |
| interconnection of customer-generation while ensuring the |
7 |
| safety and reliability of the units and the electric utility |
8 |
| system. The Commission shall consider the Institute of |
9 |
| Electrical and Electronics Engineers (IEEE) Standard 1547 and |
10 |
| the issues of (i) reasonable and fair fees and costs, (ii) |
11 |
| clear timelines for major milestones in the interconnection |
12 |
| process, (iii) nondiscriminatory terms of agreement, and (iv) |
13 |
| any best practices for interconnection of distributed |
14 |
| generation.
|
15 |
| (j) (i) All electricity providers shall begin to offer net |
16 |
| metering
no later than April 1,
2008.
|
17 |
| (k) (j) An electricity provider shall provide net metering |
18 |
| to eligible
customers until the load of its net metering |
19 |
| customers equals 1% of
the total peak demand supplied by
that |
20 |
| electricity provider during the
previous year. Electricity |
21 |
| providers are authorized to offer net metering beyond
the 1% |
22 |
| level if they so choose. The number of new eligible customers |
23 |
| with generators that have a nameplate rating of 40 kilowatts |
24 |
| and below will be limited to 200 total new billing accounts for |
25 |
| the utilities (Ameren Companies, ComEd, and MidAmerican) for |
26 |
| the period of April 1, 2008 through March 31, 2009.
|
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| (l) (k) Each electricity provider shall maintain records |
2 |
| and report annually to the Commission the total number of net |
3 |
| metering customers served by the provider, as well as the type, |
4 |
| capacity, and energy sources of the generating systems used by |
5 |
| the net metering customers. Nothing in this Section shall limit |
6 |
| the ability of an electricity provider to request the redaction |
7 |
| of information deemed by the Commission to be confidential |
8 |
| business information. Each electricity provider shall notify |
9 |
| the Commission when the total generating capacity of its net |
10 |
| metering customers is equal to or in excess of the 1% cap |
11 |
| specified in subsection (k) (j) of this Section. |
12 |
| (m) (l) Notwithstanding the definition of "eligible |
13 |
| customer" in item (i) of subsection (b) of this Section, each |
14 |
| electricity provider shall consider whether to allow meter |
15 |
| aggregation for the purposes of net metering on:
|
16 |
| (1) properties owned or leased by multiple customers |
17 |
| that contribute to the operation of an eligible renewable |
18 |
| electrical generating facility, such as a community-owned |
19 |
| wind project or a community methane digester processing |
20 |
| livestock waste from multiple sources; and
|
21 |
| (2) individual units, apartments, or properties owned |
22 |
| or leased by multiple customers and collectively served by |
23 |
| a common eligible renewable electrical generating |
24 |
| facility, such as an apartment building served by |
25 |
| photovoltaic panels on the roof.
|
26 |
| For the purposes of this subsection (l), "meter |
|
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|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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1 |
| aggregation" means the combination of reading and billing on a |
2 |
| pro rata basis for the types of eligible customers described in |
3 |
| this Section.
|
4 |
| (n) (m) Nothing in this Section shall affect the right of |
5 |
| an electricity provider to continue to provide, or the right of |
6 |
| a retail customer to continue to receive service pursuant to a |
7 |
| contract for electric service between the electricity provider |
8 |
| and the retail customer in accordance with the prices, terms, |
9 |
| and conditions provided for in that contract. Either the |
10 |
| electricity provider or the customer may require compliance |
11 |
| with the prices, terms, and conditions of the contract.
|
12 |
| (o) Notwithstanding any other rulemaking authority that |
13 |
| may exist, neither the Governor nor any agency or agency head |
14 |
| under the jurisdiction of the Governor has any authority to |
15 |
| make or promulgate rules to implement or enforce the provisions |
16 |
| of this amendatory Act of the 95th General Assembly. If, |
17 |
| however, the Governor believes that rules are necessary to |
18 |
| implement or enforce the provisions of this amendatory Act of |
19 |
| the 95th General Assembly, the Governor may suggest rules to |
20 |
| the General Assembly by filing them with the Clerk of the House |
21 |
| and the Secretary of the Senate and by requesting that the |
22 |
| General Assembly authorize such rulemaking by law, enact those |
23 |
| suggested rules into law, or take any other appropriate action |
24 |
| in the General Assembly's discretion. Nothing contained in this |
25 |
| amendatory Act of the 95th General Assembly shall be |
26 |
| interpreted to grant rulemaking authority under any other |
|
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|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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|
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| Illinois statute where such authority is not otherwise |
2 |
| explicitly given. For the purposes of this amendatory Act of |
3 |
| the 95th General Assembly, "rules" is given the meaning |
4 |
| contained in Section 1-70 of the Illinois Administrative |
5 |
| Procedure Act, and "agency" and "agency head" are given the |
6 |
| meanings contained in Sections 1-20 and 1-25 of the Illinois |
7 |
| Administrative Procedure Act to the extent that such |
8 |
| definitions apply to agencies or agency heads under the |
9 |
| jurisdiction of the Governor.
|
10 |
| (Source: P.A. 95-420, eff. 8-24-07.) |
11 |
| (220 ILCS 5/16-111.5) |
12 |
| Sec. 16-111.5. Provisions relating to procurement. |
13 |
| (a) An electric utility that on December 31, 2005 served at |
14 |
| least 100,000 customers in Illinois shall procure power and |
15 |
| energy for its eligible retail customers in accordance with the |
16 |
| applicable provisions set forth in Section 1-75 of the Illinois |
17 |
| Power Agency Act and this Section. "Eligible retail customers" |
18 |
| for the purposes of this Section means those retail customers |
19 |
| that purchase power and energy from the electric utility under |
20 |
| fixed-price bundled service tariffs, other than those retail |
21 |
| customers whose service is declared or deemed competitive under |
22 |
| Section 16-113 and those other customer groups specified in |
23 |
| this Section, including self-generating customers, customers |
24 |
| electing hourly pricing, or those customers who are otherwise |
25 |
| ineligible for fixed-price bundled tariff service. Those |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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1 |
| customers that are excluded from the definition of "eligible |
2 |
| retail customers" shall not be included in the procurement plan |
3 |
| load requirements, and the utility shall procure any supply |
4 |
| requirements, including capacity, ancillary services, and |
5 |
| hourly priced energy, in the applicable markets as needed to |
6 |
| serve those customers, provided that the utility may include in |
7 |
| its procurement plan load requirements for the load that is |
8 |
| associated with those retail customers whose service has been |
9 |
| declared or deemed competitive pursuant to Section 16-113 of |
10 |
| this Act to the extent that those customers are purchasing |
11 |
| power and energy during one of the transition periods |
12 |
| identified in subsection (b) of Section 16-113 of this Act. |
13 |
| (b) A procurement plan shall be prepared for each electric |
14 |
| utility consistent with the applicable requirements of the |
15 |
| Illinois Power Agency Act and this Section. For purposes of |
16 |
| this Section, Illinois electric utilities that are affiliated |
17 |
| by virtue of a common parent company are considered to be a |
18 |
| single electric utility. Each procurement plan shall analyze |
19 |
| the projected balance of supply and demand for eligible retail |
20 |
| customers over a 5-year period with the first planning year |
21 |
| beginning on June 1 of the year following the year in which the |
22 |
| plan is filed. The plan shall specifically identify the |
23 |
| wholesale products to be procured following plan approval, and |
24 |
| shall follow all the requirements set forth in the Public |
25 |
| Utilities Act and all applicable State and federal laws, |
26 |
| statutes, rules, or regulations, as well as Commission orders. |
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| Nothing in this Section precludes consideration of contracts |
2 |
| longer than 5 years and related forecast data. Unless specified |
3 |
| otherwise in this Section, in the procurement plan or in the |
4 |
| implementing tariff, any procurement occurring in accordance |
5 |
| with this plan shall be competitively bid through a request for |
6 |
| proposals process. Approval and implementation of the |
7 |
| procurement plan shall be subject to review and approval by the |
8 |
| Commission according to the provisions set forth in this |
9 |
| Section. A procurement plan shall include each of the following |
10 |
| components: |
11 |
| (1) Hourly load analysis. This analysis shall include: |
12 |
| (i) multi-year historical analysis of hourly |
13 |
| loads; |
14 |
| (ii) switching trends and competitive retail |
15 |
| market analysis; |
16 |
| (iii) known or projected changes to future loads; |
17 |
| and |
18 |
| (iv) growth forecasts by customer class. |
19 |
| (2) Analysis of the impact of any demand side and |
20 |
| renewable energy initiatives. This analysis shall include: |
21 |
| (i) the impact of demand response programs, both |
22 |
| current and projected; |
23 |
| (ii) supply side needs that are projected to be |
24 |
| offset by purchases of renewable energy resources, if |
25 |
| any; and |
26 |
| (iii) the impact of energy efficiency programs, |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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|
1 |
| both current and projected. Energy efficiency |
2 |
| resources shall be integrated into each utility's plan |
3 |
| and cost-effective energy efficiency shall be treated |
4 |
| as a priority resource. |
5 |
| (3) A plan for meeting the expected load requirements |
6 |
| that will not be met through preexisting contracts. This |
7 |
| plan shall include: |
8 |
| (i) definitions of the different retail customer |
9 |
| classes for which supply is being purchased; |
10 |
| (ii) monthly forecasted system supply |
11 |
| requirements, including expected minimum, maximum, and |
12 |
| average values for the planning period; |
13 |
| (iii) the proposed mix and selection of standard |
14 |
| wholesale products for which contracts will be |
15 |
| executed during the next year, separately or in |
16 |
| combination, to meet that portion of its load |
17 |
| requirements not met through pre-existing contracts, |
18 |
| including but not limited to monthly 5 x 16 peak period |
19 |
| block energy, monthly off-peak wrap energy, monthly 7 x |
20 |
| 24 energy, annual 5 x 16 energy, annual off-peak wrap |
21 |
| energy, annual 7 x 24 energy, monthly capacity, annual |
22 |
| capacity, peak load capacity obligations, capacity |
23 |
| purchase plan, and ancillary services; |
24 |
| (iv) proposed term structures for each wholesale |
25 |
| product type included in the proposed procurement plan |
26 |
| portfolio of products; and |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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1 |
| (v) an assessment of the price risk, load |
2 |
| uncertainty, and other factors that are associated |
3 |
| with the proposed procurement plan; this assessment, |
4 |
| to the extent possible, shall include an analysis of |
5 |
| the following factors: contract terms, time frames for |
6 |
| securing products or services, fuel costs, weather |
7 |
| patterns, transmission costs, market conditions, and |
8 |
| the governmental regulatory environment; the proposed |
9 |
| procurement plan shall also identify alternatives for |
10 |
| those portfolio measures that are identified as having |
11 |
| significant price risk. |
12 |
| (4) Proposed procedures for balancing loads. The |
13 |
| procurement plan shall include, for load requirements |
14 |
| included in the procurement plan, the process for (i) |
15 |
| hourly balancing of supply and demand and (ii) the criteria |
16 |
| for portfolio re-balancing in the event of significant |
17 |
| shifts in load. |
18 |
| (c) The procurement process set forth in Section 1-75 of |
19 |
| the Illinois Power Agency Act and subsection (e) of this |
20 |
| Section shall be administered by a procurement administrator |
21 |
| and monitored by a procurement monitor. |
22 |
| (1) The procurement administrator shall: |
23 |
| (i) design the final procurement process in |
24 |
| accordance with Section 1-75 of the Illinois Power |
25 |
| Agency Act and subsection (e) of this Section following |
26 |
| Commission approval of the procurement plan; |
|
|
|
09500HB5855ham001 |
- 26 - |
LRB095 17917 MJR 48216 a |
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|
1 |
| (ii) develop benchmarks in accordance with |
2 |
| subsection (e)(3) to be used to evaluate bids; these |
3 |
| benchmarks shall be submitted to the Commission for |
4 |
| review and approval on a confidential basis prior to |
5 |
| the procurement event; |
6 |
| (iii) serve as the interface between the electric |
7 |
| utility and suppliers; |
8 |
| (iv) manage the bidder pre-qualification and |
9 |
| registration process; |
10 |
| (v) obtain the electric utilities' agreement to |
11 |
| the final form of all supply contracts and credit |
12 |
| collateral agreements; |
13 |
| (vi) administer the request for proposals process; |
14 |
| (vii) have the discretion to negotiate to |
15 |
| determine whether bidders are willing to lower the |
16 |
| price of bids that meet the benchmarks approved by the |
17 |
| Commission; any post-bid negotiations with bidders |
18 |
| shall be limited to price only and shall be completed |
19 |
| within 24 hours after opening the sealed bids and shall |
20 |
| be conducted in a fair and unbiased manner; in |
21 |
| conducting the negotiations, there shall be no |
22 |
| disclosure of any information derived from proposals |
23 |
| submitted by competing bidders; if information is |
24 |
| disclosed to any bidder, it shall be provided to all |
25 |
| competing bidders; |
26 |
| (viii) maintain confidentiality of supplier and |
|
|
|
09500HB5855ham001 |
- 27 - |
LRB095 17917 MJR 48216 a |
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1 |
| bidding information in a manner consistent with all |
2 |
| applicable laws, rules, regulations, and tariffs; |
3 |
| (ix) submit a confidential report to the |
4 |
| Commission recommending acceptance or rejection of |
5 |
| bids; |
6 |
| (x) notify the utility of contract counterparties |
7 |
| and contract specifics; and |
8 |
| (xi) administer related contingency procurement |
9 |
| events. |
10 |
| (2) The procurement monitor, who shall be retained by |
11 |
| the Commission, shall: |
12 |
| (i) monitor interactions among the procurement |
13 |
| administrator, suppliers, and utility; |
14 |
| (ii) monitor and report to the Commission on the |
15 |
| progress of the procurement process; |
16 |
| (iii) provide an independent confidential report |
17 |
| to the Commission regarding the results of the |
18 |
| procurement event; |
19 |
| (iv) assess compliance with the procurement plans |
20 |
| approved by the Commission for each utility that on |
21 |
| December 31, 2005 provided electric service to a least |
22 |
| 100,000 customers in Illinois; |
23 |
| (v) preserve the confidentiality of supplier and |
24 |
| bidding information in a manner consistent with all |
25 |
| applicable laws, rules, regulations, and tariffs; |
26 |
| (vi) provide expert advice to the Commission and |
|
|
|
09500HB5855ham001 |
- 28 - |
LRB095 17917 MJR 48216 a |
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|
1 |
| consult with the procurement administrator regarding |
2 |
| issues related to procurement process design, rules, |
3 |
| protocols, and policy-related matters; and |
4 |
| (vii) consult with the procurement administrator |
5 |
| regarding the development and use of benchmark |
6 |
| criteria, standard form contracts, credit policies, |
7 |
| and bid documents. |
8 |
| (d) Except as provided in subsection (j), the planning |
9 |
| process shall be conducted as follows: |
10 |
| (1) Beginning in 2008, each Illinois utility procuring |
11 |
| power pursuant to this Section shall annually provide a |
12 |
| range of load forecasts to the Illinois Power Agency by |
13 |
| July 15 of each year, or such other date as may be required |
14 |
| by the Commission or Agency. The load forecasts shall cover |
15 |
| the 5-year procurement planning period for the next |
16 |
| procurement plan and shall include hourly data |
17 |
| representing a high-load, low-load and expected-load |
18 |
| scenario for the load of the eligible retail customers. The |
19 |
| utility shall provide supporting data and assumptions for |
20 |
| each of the scenarios.
|
21 |
| (2) Beginning in 2008, the Illinois Power Agency shall |
22 |
| prepare a procurement plan by August 15th of each year, or |
23 |
| such other date as may be required by the Commission. The |
24 |
| procurement plan shall identify the portfolio of power and |
25 |
| energy products to be procured. Copies of the procurement |
26 |
| plan shall be posted and made publicly available on the |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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|
1 |
| Agency's and Commission's websites, and copies shall also |
2 |
| be provided to each affected electric utility. An affected |
3 |
| utility shall have 30 days following the date of posting to |
4 |
| provide comment to the Agency on the procurement plan. |
5 |
| Other interested entities also may comment on the |
6 |
| procurement plan. All comments submitted to the Agency |
7 |
| shall be specific, supported by data or other detailed |
8 |
| analyses, and, if objecting to all or a portion of the |
9 |
| procurement plan, accompanied by specific alternative |
10 |
| wording or proposals. All comments shall be posted on the |
11 |
| Agency's and Commission's websites. During this 30-day |
12 |
| comment period, the Agency shall hold at least one public |
13 |
| hearing within each utility's service area for the purpose |
14 |
| of receiving public comment on the procurement plan. Within |
15 |
| 14 days following the end of the 30-day review period, the |
16 |
| Agency shall revise the procurement plan as necessary based |
17 |
| on the comments received and file the procurement plan with |
18 |
| the Commission and post the procurement plan on the |
19 |
| websites. |
20 |
| (3) Within 5 days after the filing of the procurement |
21 |
| plan, any person objecting to the procurement plan shall |
22 |
| file an objection with the Commission. Within 10 days after |
23 |
| the filing, the Commission shall determine whether a |
24 |
| hearing is necessary. The Commission shall enter its order |
25 |
| confirming or modifying the procurement plan within 90 days |
26 |
| after the filing of the procurement plan by the Illinois |
|
|
|
09500HB5855ham001 |
- 30 - |
LRB095 17917 MJR 48216 a |
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|
1 |
| Power Agency. |
2 |
| (4) The Commission shall approve the procurement plan, |
3 |
| including expressly the forecast used in the procurement |
4 |
| plan, if the Commission determines that it will ensure |
5 |
| adequate, reliable, affordable, efficient, and |
6 |
| environmentally sustainable electric service at the lowest |
7 |
| total cost over time, taking into account any benefits of |
8 |
| price stability. |
9 |
| (e) The procurement process shall include each of the |
10 |
| following components: |
11 |
| (1) Solicitation, pre-qualification, and registration |
12 |
| of bidders. The procurement administrator shall |
13 |
| disseminate information to potential bidders to promote a |
14 |
| procurement event, notify potential bidders that the |
15 |
| procurement administrator may enter into a post-bid price |
16 |
| negotiation with bidders that meet the applicable |
17 |
| benchmarks, provide supply requirements, and otherwise |
18 |
| explain the competitive procurement process. In addition |
19 |
| to such other publication as the procurement administrator |
20 |
| determines is appropriate, this information shall be |
21 |
| posted on the Illinois Power Agency's and the Commission's |
22 |
| websites. The procurement administrator shall also |
23 |
| administer the prequalification process, including |
24 |
| evaluation of credit worthiness, compliance with |
25 |
| procurement rules, and agreement to the standard form |
26 |
| contract developed pursuant to paragraph (2) of this |
|
|
|
09500HB5855ham001 |
- 31 - |
LRB095 17917 MJR 48216 a |
|
|
1 |
| subsection (e). The procurement administrator shall then |
2 |
| identify and register bidders to participate in the |
3 |
| procurement event. |
4 |
| (2) Standard contract forms and credit terms and |
5 |
| instruments. The procurement administrator, in |
6 |
| consultation with the utilities, the Commission, and other |
7 |
| interested parties and subject to Commission oversight, |
8 |
| shall develop and provide standard contract forms for the |
9 |
| supplier contracts that meet generally accepted industry |
10 |
| practices. Standard credit terms and instruments that meet |
11 |
| generally accepted industry practices shall be similarly |
12 |
| developed. The procurement administrator shall make |
13 |
| available to the Commission all written comments it |
14 |
| receives on the contract forms, credit terms, or |
15 |
| instruments. If the procurement administrator cannot reach |
16 |
| agreement with the applicable electric utility as to the |
17 |
| contract terms and conditions, the procurement |
18 |
| administrator must notify the Commission of any disputed |
19 |
| terms and the Commission shall resolve the dispute. The |
20 |
| terms of the contracts shall not be subject to negotiation |
21 |
| by winning bidders, and the bidders must agree to the terms |
22 |
| of the contract in advance so that winning bids are |
23 |
| selected solely on the basis of price. |
24 |
| (3) Establishment of a market-based price benchmark. |
25 |
| As part of the development of the procurement process, the |
26 |
| procurement administrator, in consultation with the |
|
|
|
09500HB5855ham001 |
- 32 - |
LRB095 17917 MJR 48216 a |
|
|
1 |
| Commission staff, Agency staff, and the procurement |
2 |
| monitor, shall establish benchmarks for evaluating the |
3 |
| final prices in the contracts for each of the products that |
4 |
| will be procured through the procurement process. The |
5 |
| benchmarks shall be based on price data for similar |
6 |
| products for the same delivery period and same delivery |
7 |
| hub, or other delivery hubs after adjusting for that |
8 |
| difference. The price benchmarks may also be adjusted to |
9 |
| take into account differences between the information |
10 |
| reflected in the underlying data sources and the specific |
11 |
| products and procurement process being used to procure |
12 |
| power for the Illinois utilities. The benchmarks shall be |
13 |
| confidential but shall be provided to, and will be subject |
14 |
| to Commission review and approval, prior to a procurement |
15 |
| event. |
16 |
| (4) Request for proposals competitive procurement |
17 |
| process. The procurement administrator shall design and |
18 |
| issue a request for proposals to supply electricity in |
19 |
| accordance with each utility's procurement plan, as |
20 |
| approved by the Commission. The request for proposals shall |
21 |
| set forth a procedure for sealed, binding commitment |
22 |
| bidding with pay-as-bid settlement, and provision for |
23 |
| selection of bids on the basis of price. |
24 |
| (5) A plan for implementing contingencies in the event |
25 |
| of supplier default or failure of the procurement process |
26 |
| to fully meet the expected load requirement due to |
|
|
|
09500HB5855ham001 |
- 33 - |
LRB095 17917 MJR 48216 a |
|
|
1 |
| insufficient supplier participation, Commission rejection |
2 |
| of results, or any other cause. |
3 |
| (i) Event of supplier default: In the event of |
4 |
| supplier default, the utility shall review the |
5 |
| contract of the defaulting supplier to determine if the |
6 |
| amount of supply is 200 megawatts or greater, and if |
7 |
| there are more than 60 days remaining of the contract |
8 |
| term. If both of these conditions are met, and the |
9 |
| default results in termination of the contract, the |
10 |
| utility shall immediately notify the Illinois Power |
11 |
| Agency that a request for proposals must be issued to |
12 |
| procure replacement power, and the procurement |
13 |
| administrator shall run an additional procurement |
14 |
| event. If the contracted supply of the defaulting |
15 |
| supplier is less than 200 megawatts or there are less |
16 |
| than 60 days remaining of the contract term, the |
17 |
| utility shall procure power and energy from the |
18 |
| applicable regional transmission organization market, |
19 |
| including ancillary services, capacity, and day-ahead |
20 |
| or real time energy, or both, for the duration of the |
21 |
| contract term to replace the contracted supply; |
22 |
| provided, however, that if a needed product is not |
23 |
| available through the regional transmission |
24 |
| organization market it shall be purchased from the |
25 |
| wholesale market. |
26 |
| (ii) Failure of the procurement process to fully |
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| meet the expected load requirement: If the procurement |
2 |
| process fails to fully meet the expected load |
3 |
| requirement due to insufficient supplier participation |
4 |
| or due to a Commission rejection of the procurement |
5 |
| results, the procurement administrator, the |
6 |
| procurement monitor, and the Commission staff shall |
7 |
| meet within 10 days to analyze potential causes of low |
8 |
| supplier interest or causes for the Commission |
9 |
| decision. If changes are identified that would likely |
10 |
| result in increased supplier participation, or that |
11 |
| would address concerns causing the Commission to |
12 |
| reject the results of the prior procurement event, the |
13 |
| procurement administrator may implement those changes |
14 |
| and rerun the request for proposals process according |
15 |
| to a schedule determined by those parties and |
16 |
| consistent with Section 1-75 of the Illinois Power |
17 |
| Agency Act and this subsection. In any event, a new |
18 |
| request for proposals process shall be implemented by |
19 |
| the procurement administrator within 90 days after the |
20 |
| determination that the procurement process has failed |
21 |
| to fully meet the expected load requirement. |
22 |
| (iii) In all cases where there is insufficient |
23 |
| supply provided under contracts awarded through the |
24 |
| procurement process to fully meet the electric |
25 |
| utility's load requirement, the utility shall meet the |
26 |
| load requirement by procuring power and energy from the |
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| applicable regional transmission organization market, |
2 |
| including ancillary services, capacity, and day-ahead |
3 |
| or real time energy or both; provided, however, that if |
4 |
| a needed product is not available through the regional |
5 |
| transmission organization market it shall be purchased |
6 |
| from the wholesale market. |
7 |
| (6) The procurement process described in this |
8 |
| subsection is exempt from the requirements of the Illinois |
9 |
| Procurement Code, pursuant to Section 20-10 of that Code. |
10 |
| (f) Within 2 business days after opening the sealed bids, |
11 |
| the procurement administrator shall submit a confidential |
12 |
| report to the Commission. The report shall contain the results |
13 |
| of the bidding for each of the products along with the |
14 |
| procurement administrator's recommendation for the acceptance |
15 |
| and rejection of bids based on the price benchmark criteria and |
16 |
| other factors observed in the process. The procurement monitor |
17 |
| also shall submit a confidential report to the Commission |
18 |
| within 2 business days after opening the sealed bids. The |
19 |
| report shall contain the procurement monitor's assessment of |
20 |
| bidder behavior in the process as well as an assessment of the |
21 |
| procurement administrator's compliance with the procurement |
22 |
| process and rules. The Commission shall review the confidential |
23 |
| reports submitted by the procurement administrator and |
24 |
| procurement monitor, and shall accept or reject the |
25 |
| recommendations of the procurement administrator within 2 |
26 |
| business days after receipt of the reports. |
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| (g) Within 3 business days after the Commission decision |
2 |
| approving the results of a procurement event, the utility shall |
3 |
| enter into binding contractual arrangements with the winning |
4 |
| suppliers using the standard form contracts; except that the |
5 |
| utility shall not be required either directly or indirectly to |
6 |
| execute the contracts if a tariff that is consistent with |
7 |
| subsection (l) of this Section has not been approved and placed |
8 |
| into effect for that utility. |
9 |
| (h) The names of the successful bidders and the load |
10 |
| weighted average of the winning bid prices for each contract |
11 |
| type and for each contract term shall be made available to the |
12 |
| public at the time of Commission approval of a procurement |
13 |
| event. The Commission, the procurement monitor, the |
14 |
| procurement administrator, the Illinois Power Agency, and all |
15 |
| participants in the procurement process shall maintain the |
16 |
| confidentiality of all other supplier and bidding information |
17 |
| in a manner consistent with all applicable laws, rules, |
18 |
| regulations, and tariffs. Confidential information, including |
19 |
| the confidential reports submitted by the procurement |
20 |
| administrator and procurement monitor pursuant to subsection |
21 |
| (f) of this Section, shall not be made publicly available and |
22 |
| shall not be discoverable by any party in any proceeding, |
23 |
| absent a compelling demonstration of need, nor shall those |
24 |
| reports be admissible in any proceeding other than one for law |
25 |
| enforcement purposes. |
26 |
| (i) Within 2 business days after a Commission decision |
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| approving the results of a procurement event or such other date |
2 |
| as may be required by the Commission from time to time, the |
3 |
| utility shall file for informational purposes with the |
4 |
| Commission its actual or estimated retail supply charges, as |
5 |
| applicable, by customer supply group reflecting the costs |
6 |
| associated with the procurement and computed in accordance with |
7 |
| the tariffs filed pursuant to subsection (l) of this Section |
8 |
| and approved by the Commission. |
9 |
| (j) Within 60 days following the effective date of this |
10 |
| amendatory Act, each electric utility that on December 31, 2005 |
11 |
| provided electric service to at least 100,000 customers in |
12 |
| Illinois shall prepare and file with the Commission an initial |
13 |
| procurement plan, which shall conform in all material respects |
14 |
| to the requirements of the procurement plan set forth in |
15 |
| subsection (b); provided, however, that the Illinois Power |
16 |
| Agency Act shall not apply to the initial procurement plan |
17 |
| prepared pursuant to this subsection. The initial procurement |
18 |
| plan shall identify the portfolio of power and energy products |
19 |
| to be procured and delivered for the period June 2008 through |
20 |
| May 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 |
| procurement plan shall be posted and made publicly available on |
25 |
| the Commission's website. The initial procurement plan may |
26 |
| include contracts for renewable resources that extend beyond |
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| May 2009. |
2 |
| (i) Within 14 days following filing of the initial |
3 |
| procurement plan, any person may file a detailed objection |
4 |
| with the Commission contesting the procurement plan |
5 |
| submitted by the electric utility. All objections to the |
6 |
| electric utility's plan shall be specific, supported by |
7 |
| data or other detailed analyses. The electric utility may |
8 |
| file a response to any objections to its procurement plan |
9 |
| within 7 days after the date objections are due to be |
10 |
| filed. Within 7 days after the date the utility's response |
11 |
| is due, the Commission shall determine whether a hearing is |
12 |
| necessary. If it determines that a hearing is necessary, it |
13 |
| shall require the hearing to be completed and issue an |
14 |
| order on the procurement plan within 60 days after the |
15 |
| filing of the procurement plan by the electric utility. |
16 |
| (ii) The order shall approve or modify the procurement |
17 |
| plan, approve an independent procurement administrator, |
18 |
| and approve or modify the electric utility's tariffs that |
19 |
| are proposed with the initial procurement plan. The |
20 |
| Commission shall approve the procurement plan if the |
21 |
| Commission determines that it will ensure adequate, |
22 |
| reliable, affordable, efficient, and environmentally |
23 |
| sustainable electric service at the lowest total cost over |
24 |
| time, taking into account any benefits of price stability. |
25 |
| (k) In order to promote price stability for residential and |
26 |
| small commercial customers during the transition to |
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LRB095 17917 MJR 48216 a |
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| competition in Illinois, and notwithstanding any other |
2 |
| provision of this Act, each electric utility subject to this |
3 |
| Section shall enter into one or more multi-year financial swap |
4 |
| contracts that become effective on the effective date of this |
5 |
| amendatory Act. These contracts may be executed with generators |
6 |
| and power marketers, including affiliated interests of the |
7 |
| electric utility. These contracts shall be for a term of no |
8 |
| more than 5 years and shall, for each respective utility or for |
9 |
| any Illinois electric utilities that are affiliated by virtue |
10 |
| of a common parent company and that are thereby considered a |
11 |
| single electric utility for purposes of this subsection (k), |
12 |
| not exceed in the aggregate 3,000 megawatts for any hour of the |
13 |
| year. The contracts shall be financial contracts and not energy |
14 |
| sales contracts. The contracts shall be executed as |
15 |
| transactions under a negotiated master agreement based on the |
16 |
| form of master agreement for financial swap contracts sponsored |
17 |
| by the International Swaps and Derivatives Association, Inc. |
18 |
| and shall be considered pre-existing contracts in the |
19 |
| utilities' procurement plans for residential and small |
20 |
| commercial customers. Costs incurred pursuant to a contract |
21 |
| authorized by this subsection (k) shall be deemed prudently |
22 |
| incurred and reasonable in amount and the electric utility |
23 |
| shall be entitled to full cost recovery pursuant to the tariffs |
24 |
| filed with the Commission. |
25 |
| (l) An electric utility shall recover its costs of |
26 |
| procuring power and energy under this Section. The utility |
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| shall file with the initial procurement plan its proposed |
2 |
| tariffs through which its costs of procuring power that are |
3 |
| incurred pursuant to a Commission-approved procurement plan |
4 |
| and those other costs identified in this subsection (l), will |
5 |
| be recovered. The tariffs shall include a formula rate or |
6 |
| charge designed to pass through both the costs incurred by the |
7 |
| utility in procuring a supply of electric power and energy for |
8 |
| the applicable customer classes with no mark-up or return on |
9 |
| the price paid by the utility for that supply, plus any just |
10 |
| and reasonable costs that the utility incurs in arranging and |
11 |
| providing for the supply of electric power and energy. The |
12 |
| formula rate or charge shall also contain provisions that |
13 |
| ensure that its application does not result in over or under |
14 |
| recovery due to changes in customer usage and demand patterns, |
15 |
| and that provide for the correction, on at least an annual |
16 |
| basis, of any accounting errors that may occur. A utility shall |
17 |
| recover through the tariff all reasonable costs incurred to |
18 |
| implement or comply with any procurement plan that is developed |
19 |
| and put into effect pursuant to Section 1-75 of the Illinois |
20 |
| Power Agency Act and this Section, including any fees assessed |
21 |
| by the Illinois Power Agency, costs associated with load |
22 |
| balancing, and contingency plan costs. The electric utility |
23 |
| shall also recover its full costs of procuring electric supply |
24 |
| for which it contracted before the effective date of this |
25 |
| Section in conjunction with the provision of full requirements |
26 |
| service under fixed-price bundled service tariffs subsequent |
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| to December 31, 2006. All such costs shall be deemed to have |
2 |
| been prudently incurred. The pass-through tariffs that are |
3 |
| filed and approved pursuant to this Section shall not be |
4 |
| subject to review under, or in any way limited by, Section |
5 |
| 16-111(i) of this Act. |
6 |
| (m) The Commission has the authority to adopt rules to |
7 |
| carry out the provisions of this Section. For the public |
8 |
| interest, safety, and welfare, the Commission also has |
9 |
| authority to adopt rules to carry out the provisions of this |
10 |
| Section on an emergency basis immediately following the |
11 |
| effective date of this amendatory Act. |
12 |
| (n) Notwithstanding any other provision of this Act, any |
13 |
| affiliated electric utilities that submit a single procurement |
14 |
| plan covering their combined needs may procure for those |
15 |
| combined needs in conjunction with that plan, and may enter |
16 |
| jointly into power supply contracts, purchases, and other |
17 |
| procurement arrangements, and allocate capacity and energy and |
18 |
| cost responsibility therefor among themselves in proportion to |
19 |
| their requirements. |
20 |
| (o) On or before June 1 of each year, the Commission shall |
21 |
| hold an informal hearing for the purpose of receiving comments |
22 |
| on the prior year's procurement process and any recommendations |
23 |
| for change.
|
24 |
| (p) An electric utility subject to this Section may propose |
25 |
| to invest, lease, own, or operate an electric generation |
26 |
| facility as part of its procurement plan, provided the utility |
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09500HB5855ham001 |
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| demonstrates that such facility is the least-cost option to |
2 |
| provide electric service to eligible retail customers. If the |
3 |
| facility is shown to be the least-cost option and is included |
4 |
| in a procurement plan prepared in accordance with Section 1-75 |
5 |
| of the Illinois Power Agency Act and this Section, then the |
6 |
| electric utility shall make a filing pursuant to Section 8-406 |
7 |
| of the Act, and may request of the Commission any statutory |
8 |
| relief required thereunder. If the Commission grants all of the |
9 |
| necessary approvals for the proposed facility, such supply |
10 |
| shall thereafter be considered as a pre-existing contract under |
11 |
| subsection (b) of this Section. The Commission shall in any |
12 |
| order approving a proposal under this subsection specify how |
13 |
| the utility will recover the prudently incurred costs of |
14 |
| investing in, leasing, owning, or operating such generation |
15 |
| facility through just and reasonable rates charged to eligible |
16 |
| retail customers. Cost recovery for facilities included in the |
17 |
| utility's procurement plan pursuant to this subsection shall |
18 |
| not be subject to review under or in any way limited by the |
19 |
| provisions of Section 16-111(i) of this Act. Nothing in this |
20 |
| Section is intended to prohibit a utility from filing for a |
21 |
| fuel adjustment clause as is otherwise permitted under Section |
22 |
| 9-220 of this Act.
|
23 |
| (q) Notwithstanding any other rulemaking authority that |
24 |
| may exist, neither the Governor nor any agency or agency head |
25 |
| under the jurisdiction of the Governor has any authority to |
26 |
| make or promulgate rules to implement or enforce the provisions |
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| of this amendatory Act of the 95th General Assembly. If, |
2 |
| however, the Governor believes that rules are necessary to |
3 |
| implement or enforce the provisions of this amendatory Act of |
4 |
| the 95th General Assembly, the Governor may suggest rules to |
5 |
| the General Assembly by filing them with the Clerk of the House |
6 |
| and the Secretary of the Senate and by requesting that the |
7 |
| General Assembly authorize such rulemaking by law, enact those |
8 |
| suggested rules into law, or take any other appropriate action |
9 |
| in the General Assembly's discretion. Nothing contained in this |
10 |
| amendatory Act of the 95th General Assembly shall be |
11 |
| interpreted to grant rulemaking authority under any other |
12 |
| Illinois statute where such authority is not otherwise |
13 |
| explicitly given. For the purposes of this amendatory Act of |
14 |
| the 95th General Assembly, "rules" is given the meaning |
15 |
| contained in Section 1-70 of the Illinois Administrative |
16 |
| Procedure Act, and "agency" and "agency head" are given the |
17 |
| meanings contained in Sections 1-20 and 1-25 of the Illinois |
18 |
| Administrative Procedure Act to the extent that such |
19 |
| definitions apply to agencies or agency heads under the |
20 |
| jurisdiction of the Governor.
|
21 |
| (Source: P.A. 95-481, eff. 8-28-07.)
|
22 |
| Section 99. Effective date. This Act takes effect upon |
23 |
| becoming law.".
|