Full Text of SB1609 97th General Assembly
SB1609 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1609 Introduced 2/9/2011, by Sen. Mike Jacobs SYNOPSIS AS INTRODUCED: |
| 20 ILCS 3855/1-75 | | 20 ILCS 3855/1-125 | | 220 ILCS 5/16-115D | |
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Amends the Illinois Power Agency Act. Provides that beginning April 1, 2012, and each year thereafter, the Illinois Power Agency shall prepare a report for the General Assembly and Illinois Commerce Commission that shall include, but not be limited to, renewable portfolio standards. Provides that a required annual report shall include the quantity, price, and rate impact of all renewable resources purchased pursuant to long-term contracts under the electricity procurement plans for electric utilities. Amends the Public Utilities Act. Provides that beginning April 1, 2012 and by April 1 of each year thereafter, the Illinois Power Agency shall submit an annual report to the General Assembly, the Commission, and alternative retail electric suppliers that shall include specified information. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 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 1-75 and 1-125 as follows: | 6 | | (20 ILCS 3855/1-75) | 7 | | Sec. 1-75. Planning and Procurement Bureau. The Planning | 8 | | and Procurement Bureau has the following duties and | 9 | | responsibilities: | 10 | | (a) The Planning and Procurement Bureau shall each | 11 | | year, beginning in 2008, develop procurement plans and | 12 | | conduct competitive procurement processes in accordance | 13 | | with the requirements of Section 16-111.5 of the Public | 14 | | Utilities Act for the eligible retail customers of electric | 15 | | utilities that on December 31, 2005 provided electric | 16 | | service to at least 100,000 customers in Illinois. For the | 17 | | purposes of this Section, the term "eligible retail | 18 | | customers" has the same definition as found in Section | 19 | | 16-111.5(a) of the Public Utilities Act. | 20 | | (1) The Agency shall each year, beginning in 2008, | 21 | | as needed, issue a request for qualifications for | 22 | | experts or expert consulting firms to develop the | 23 | | procurement plans in accordance with Section 16-111.5 |
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| 1 | | of the Public Utilities Act. In order to qualify an | 2 | | expert or expert consulting firm must have: | 3 | | (A) direct previous experience assembling | 4 | | large-scale power supply plans or portfolios for | 5 | | end-use customers; | 6 | | (B) an advanced degree in economics, | 7 | | mathematics, engineering, risk management, or a | 8 | | related area of study; | 9 | | (C) 10 years of experience in the electricity | 10 | | sector, including managing supply risk; | 11 | | (D) expertise in wholesale electricity market | 12 | | rules, including those established by the Federal | 13 | | Energy Regulatory Commission and regional | 14 | | transmission organizations; | 15 | | (E) expertise in credit protocols and | 16 | | familiarity with contract protocols; | 17 | | (F) adequate resources to perform and fulfill | 18 | | the required functions and responsibilities; and | 19 | | (G) the absence of a conflict of interest and | 20 | | inappropriate bias for or against potential | 21 | | bidders or the affected electric utilities. | 22 | | (2) The Agency shall each year, as needed, issue a | 23 | | request for qualifications for a procurement | 24 | | administrator to conduct the competitive procurement | 25 | | processes in accordance with Section 16-111.5 of the | 26 | | Public Utilities Act. In order to qualify an expert or |
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| 1 | | expert consulting firm must have: | 2 | | (A) direct previous experience administering a | 3 | | large-scale competitive procurement process; | 4 | | (B) an advanced degree in economics, | 5 | | mathematics, engineering, or a related area of | 6 | | study; | 7 | | (C) 10 years of experience in the electricity | 8 | | sector, including risk management experience; | 9 | | (D) expertise in wholesale electricity market | 10 | | rules, including those established by the Federal | 11 | | Energy Regulatory Commission and regional | 12 | | transmission organizations; | 13 | | (E) expertise in credit and contract | 14 | | protocols; | 15 | | (F) adequate resources to perform and fulfill | 16 | | the required functions and responsibilities; and | 17 | | (G) the absence of a conflict of interest and | 18 | | inappropriate bias for or against potential | 19 | | bidders or the affected electric utilities. | 20 | | (3) The Agency shall provide affected utilities | 21 | | and other interested parties with the lists of | 22 | | qualified experts or expert consulting firms | 23 | | identified through the request for qualifications | 24 | | processes that are under consideration to develop the | 25 | | procurement plans and to serve as the procurement | 26 | | administrator. The Agency shall also provide each |
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| 1 | | qualified expert's or expert consulting firm's | 2 | | response to the request for qualifications. All | 3 | | information provided under this subparagraph shall | 4 | | also be provided to the Commission. The Agency may | 5 | | provide by rule for fees associated with supplying the | 6 | | information to utilities and other interested parties. | 7 | | These parties shall, within 5 business days, notify the | 8 | | Agency in writing if they object to any experts or | 9 | | expert consulting firms on the lists. Objections shall | 10 | | be based on: | 11 | | (A) failure to satisfy qualification criteria; | 12 | | (B) identification of a conflict of interest; | 13 | | or | 14 | | (C) evidence of inappropriate bias for or | 15 | | against potential bidders or the affected | 16 | | utilities. | 17 | | The Agency shall remove experts or expert | 18 | | consulting firms from the lists within 10 days if there | 19 | | is a reasonable basis for an objection and provide the | 20 | | updated lists to the affected utilities and other | 21 | | interested parties. If the Agency fails to remove an | 22 | | expert or expert consulting firm from a list, an | 23 | | objecting party may seek review by the Commission | 24 | | within 5 days thereafter by filing a petition, and the | 25 | | Commission shall render a ruling on the petition within | 26 | | 10 days. There is no right of appeal of the |
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| 1 | | Commission's ruling. | 2 | | (4) The Agency shall issue requests for proposals | 3 | | to the qualified experts or expert consulting firms to | 4 | | develop a procurement plan for the affected utilities | 5 | | and to serve as procurement administrator. | 6 | | (5) The Agency shall select an expert or expert | 7 | | consulting firm to develop procurement plans based on | 8 | | the proposals submitted and shall award one-year | 9 | | contracts to those selected with an option for the | 10 | | Agency for a one-year renewal. | 11 | | (6) The Agency shall select an expert or expert | 12 | | consulting firm, with approval of the Commission, to | 13 | | serve as procurement administrator based on the | 14 | | proposals submitted. If the Commission rejects, within | 15 | | 5 days, the Agency's selection, the Agency shall submit | 16 | | another recommendation within 3 days based on the | 17 | | proposals submitted. The Agency shall award a one-year | 18 | | contract to the expert or expert consulting firm so | 19 | | selected with Commission approval with an option for | 20 | | the Agency for a one-year renewal. | 21 | | (b) The experts or expert consulting firms retained by | 22 | | the Agency shall, as appropriate, prepare procurement | 23 | | plans, and conduct a competitive procurement process as | 24 | | prescribed in Section 16-111.5 of the Public Utilities Act, | 25 | | to ensure adequate, reliable, affordable, efficient, and | 26 | | environmentally sustainable electric service at the lowest |
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| 1 | | total cost over time, taking into account any benefits of | 2 | | price stability, for eligible retail customers of electric | 3 | | utilities that on December 31, 2005 provided electric | 4 | | service to at least 100,000 customers in the State of | 5 | | Illinois. | 6 | | (c) Renewable portfolio standard. | 7 | | (1) The procurement plans shall include | 8 | | cost-effective renewable energy resources. A minimum | 9 | | percentage of each utility's total supply to serve the | 10 | | load of eligible retail customers, as defined in | 11 | | Section 16-111.5(a) of the Public Utilities Act, | 12 | | procured for each of the following years shall be | 13 | | generated from cost-effective renewable energy | 14 | | resources: at least 2% by June 1, 2008; at least 4% by | 15 | | June 1, 2009; at least 5% by June 1, 2010; at least 6% | 16 | | by June 1, 2011; at least 7% by June 1, 2012; at least | 17 | | 8% by June 1, 2013; at least 9% by June 1, 2014; at | 18 | | least 10% by June 1, 2015; and increasing by at least | 19 | | 1.5% each year thereafter to at least 25% by June 1, | 20 | | 2025. To the extent that it is available, at least 75% | 21 | | of the renewable energy resources used to meet these | 22 | | standards shall come from wind generation and, | 23 | | beginning on June 1, 2011, at least the following | 24 | | percentages of the renewable energy resources used to | 25 | | meet these standards shall come from photovoltaics on | 26 | | the following schedule: 0.5% by June 1, 2012, 1.5% by |
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| 1 | | June 1, 2013; 3% by June 1, 2014; and 6% by June 1, | 2 | | 2015 and thereafter. For purposes of this subsection | 3 | | (c), "cost-effective" means that the costs of | 4 | | procuring renewable energy resources do not cause the | 5 | | limit stated in paragraph (2) of this subsection (c) to | 6 | | be exceeded and do not exceed benchmarks based on | 7 | | market prices for renewable energy resources in the | 8 | | region, which shall be developed by the procurement | 9 | | administrator, in consultation with the Commission | 10 | | staff, Agency staff, and the procurement monitor and | 11 | | shall be subject to Commission review and approval. | 12 | | (2) For purposes of this subsection (c), the | 13 | | required procurement of cost-effective renewable | 14 | | energy resources for a particular year shall be | 15 | | measured as a percentage of the actual amount of | 16 | | electricity (megawatt-hours) supplied by the electric | 17 | | utility to eligible retail customers in the planning | 18 | | year ending immediately prior to the procurement. For | 19 | | purposes of this subsection (c), the amount paid per | 20 | | kilowatthour means the total amount paid for electric | 21 | | service expressed on a per kilowatthour basis. For | 22 | | purposes of this subsection (c), the total amount paid | 23 | | for electric service includes without limitation | 24 | | amounts paid for supply, transmission, distribution, | 25 | | surcharges, and add-on taxes. | 26 | | Notwithstanding the requirements of this |
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| 1 | | subsection (c), the total of renewable energy | 2 | | resources procured pursuant to the procurement plan | 3 | | for any single year shall be reduced by an amount | 4 | | necessary to limit the annual estimated average net | 5 | | increase due to the costs of these resources included | 6 | | in the amounts paid by eligible retail customers in | 7 | | connection with electric service to: | 8 | | (A) in 2008, no more than 0.5% of the amount | 9 | | paid per kilowatthour by those customers during | 10 | | the year ending May 31, 2007; | 11 | | (B) in 2009, the greater of an additional 0.5% | 12 | | of the amount paid per kilowatthour by those | 13 | | customers during the year ending May 31, 2008 or 1% | 14 | | of the amount paid per kilowatthour by those | 15 | | customers during the year ending May 31, 2007; | 16 | | (C) in 2010, the greater of an additional 0.5% | 17 | | of the amount paid per kilowatthour by those | 18 | | customers during the year ending May 31, 2009 or | 19 | | 1.5% of the amount paid per kilowatthour by those | 20 | | customers during the year ending May 31, 2007; | 21 | | (D) in 2011, the greater of an additional 0.5% | 22 | | of the amount paid per kilowatthour by those | 23 | | customers during the year ending May 31, 2010 or 2% | 24 | | of the amount paid per kilowatthour by those | 25 | | customers during the year ending May 31, 2007; and | 26 | | (E) thereafter, the amount of renewable energy |
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| 1 | | resources procured pursuant to the procurement | 2 | | plan for any single year shall be reduced by an | 3 | | amount necessary to limit the estimated average | 4 | | net increase due to the cost of these resources | 5 | | included in the amounts paid by eligible retail | 6 | | customers in connection with electric service to | 7 | | no more than the greater of 2.015% of the amount | 8 | | paid per kilowatthour by those customers during | 9 | | the year ending May 31, 2007 or the incremental | 10 | | amount per kilowatthour paid for these resources | 11 | | in 2011. | 12 | | No later than June 30, 2011, the Commission shall | 13 | | review the limitation on the amount of renewable energy | 14 | | resources procured pursuant to this subsection (c) and | 15 | | report to the General Assembly its findings as to | 16 | | whether that limitation unduly constrains the | 17 | | procurement of cost-effective renewable energy | 18 | | resources. | 19 | | (3) Through June 1, 2011, renewable energy | 20 | | resources shall be counted for the purpose of meeting | 21 | | the renewable energy standards set forth in paragraph | 22 | | (1) of this subsection (c) only if they are generated | 23 | | from facilities located in the State, provided that | 24 | | cost-effective renewable energy resources are | 25 | | available from those facilities. If those | 26 | | cost-effective resources are not available in |
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| 1 | | Illinois, they shall be procured in states that adjoin | 2 | | Illinois and may be counted towards compliance. If | 3 | | those cost-effective resources are not available in | 4 | | Illinois or in states that adjoin Illinois, they shall | 5 | | be purchased elsewhere and shall be counted towards | 6 | | compliance. After June 1, 2011, cost-effective | 7 | | renewable energy resources located in Illinois and in | 8 | | states that adjoin Illinois may be counted towards | 9 | | compliance with the standards set forth in paragraph | 10 | | (1) of this subsection (c). If those cost-effective | 11 | | resources are not available in Illinois or in states | 12 | | that adjoin Illinois, they shall be purchased | 13 | | elsewhere and shall be counted towards compliance. | 14 | | (4) The electric utility shall retire all | 15 | | renewable energy credits used to comply with the | 16 | | standard. | 17 | | (5) Beginning with the year commencing June 1, | 18 | | 2010, an electric utility subject to this subsection | 19 | | (c) shall apply the lesser of the maximum alternative | 20 | | compliance payment rate or the most recent estimated | 21 | | alternative compliance payment rate for its service | 22 | | territory for the corresponding compliance period, | 23 | | established pursuant to subsection (d) of Section | 24 | | 16-115D of the Public Utilities Act to its retail | 25 | | customers that take service pursuant to the electric | 26 | | utility's hourly pricing tariff or tariffs. The |
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| 1 | | electric utility shall retain all amounts collected as | 2 | | a result of the application of the alternative | 3 | | compliance payment rate or rates to such customers, | 4 | | and, beginning in 2011, the utility shall include in | 5 | | the information provided under item (1) of subsection | 6 | | (d) of Section 16-111.5 of the Public Utilities Act the | 7 | | amounts collected under the alternative compliance | 8 | | payment rate or rates for the prior year ending May 31. | 9 | | Notwithstanding any limitation on the procurement of | 10 | | renewable energy resources imposed by item (2) of this | 11 | | subsection (c), the Agency shall increase its spending | 12 | | on the purchase of renewable energy resources to be | 13 | | procured by the electric utility for the next plan year | 14 | | by an amount equal to the amounts collected by the | 15 | | utility under the alternative compliance payment rate | 16 | | or rates in the prior year ending May 31. Beginning | 17 | | April 1, 2012, and each year thereafter, the Agency | 18 | | shall prepare a public report for the General Assembly | 19 | | and Illinois Commerce Commission that shall include, | 20 | | but not necessarily be limited to: | 21 | | (A) a comparison of the costs associated with | 22 | | the Agency's procurement of renewable energy | 23 | | resources to the Agency's costs associated with | 24 | | electricity generated by other types of generation | 25 | | facilities; and | 26 | | (B) an analysis of the rate impacts associated |
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| 1 | | with the Illinois Power Agency's procurement of | 2 | | renewable resources, including, but not limited | 3 | | to, any long-term contracts, on the eligible | 4 | | retail customers of electric utilities. | 5 | | The analysis shall include the Agency's estimate | 6 | | of the total dollar impact that the Agency's | 7 | | procurement of renewable resources has had on the | 8 | | annual electricity bills of the customer classes that | 9 | | comprise each eligible retail customer class taking | 10 | | service from an electric utility. The Agency's report | 11 | | shall also analyze how the operation of the alternative | 12 | | compliance payment mechanism, any long-term contracts, | 13 | | or other aspects of the applicable renewable portfolio | 14 | | standards impacts the rates of customers of | 15 | | alternative retail electric suppliers. | 16 | | (d) Clean coal portfolio standard. | 17 | | (1) The procurement plans shall include electricity | 18 | | generated using clean coal. Each utility shall enter into | 19 | | one or more sourcing agreements with the initial clean coal | 20 | | facility, as provided in paragraph (3) of this subsection | 21 | | (d), covering electricity generated by the initial clean | 22 | | coal facility representing at least 5% of each utility's | 23 | | total supply to serve the load of eligible retail customers | 24 | | in 2015 and each year thereafter, as described in paragraph | 25 | | (3) of this subsection (d), subject to the limits specified | 26 | | in paragraph (2) of this subsection (d). It is the goal of |
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| 1 | | the State that by January 1, 2025, 25% of the electricity | 2 | | used in the State shall be generated by cost-effective | 3 | | clean coal facilities. For purposes of this subsection (d), | 4 | | "cost-effective" means that the expenditures pursuant to | 5 | | such sourcing agreements do not cause the limit stated in | 6 | | paragraph (2) of this subsection (d) to be exceeded and do | 7 | | not exceed cost-based benchmarks, which shall be developed | 8 | | to assess all expenditures pursuant to such sourcing | 9 | | agreements covering electricity generated by clean coal | 10 | | facilities, other than the initial clean coal facility, by | 11 | | the procurement administrator, in consultation with the | 12 | | Commission staff, Agency staff, and the procurement | 13 | | monitor and shall be subject to Commission review and | 14 | | approval. | 15 | | (A) A utility party to a sourcing agreement shall | 16 | | immediately retire any emission credits that it | 17 | | receives in connection with the electricity covered by | 18 | | such agreement. | 19 | | (B) Utilities shall maintain adequate records | 20 | | documenting the purchases under the sourcing agreement | 21 | | to comply with this subsection (d) and shall file an | 22 | | accounting with the load forecast that must be filed | 23 | | with the Agency by July 15 of each year, in accordance | 24 | | with subsection (d) of Section 16-111.5 of the Public | 25 | | Utilities Act. | 26 | | (C) A utility shall be deemed to have complied with |
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| 1 | | the clean coal portfolio standard specified in this | 2 | | subsection (d) if the utility enters into a sourcing | 3 | | agreement as required by this subsection (d). | 4 | | (2) For purposes of this subsection (d), the required | 5 | | execution of sourcing agreements with the initial clean | 6 | | coal facility for a particular year shall be measured as a | 7 | | percentage of the actual amount of electricity | 8 | | (megawatt-hours) supplied by the electric utility to | 9 | | eligible retail customers in the planning year ending | 10 | | immediately prior to the agreement's execution. For | 11 | | purposes of this subsection (d), the amount paid per | 12 | | kilowatthour means the total amount paid for electric | 13 | | service expressed on a per kilowatthour basis. For purposes | 14 | | of this subsection (d), the total amount paid for electric | 15 | | service includes without limitation amounts paid for | 16 | | supply, transmission, distribution, surcharges and add-on | 17 | | taxes. | 18 | | Notwithstanding the requirements of this subsection | 19 | | (d), the total amount paid under sourcing agreements with | 20 | | clean coal facilities pursuant to the procurement plan for | 21 | | any given year shall be reduced by an amount necessary to | 22 | | limit the annual estimated average net increase due to the | 23 | | costs of these resources included in the amounts paid by | 24 | | eligible retail customers in connection with electric | 25 | | service to: | 26 | | (A) in 2010, no more than 0.5% of the amount |
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| 1 | | paid per kilowatthour by those customers during | 2 | | the year ending May 31, 2009; | 3 | | (B) in 2011, the greater of an additional 0.5% | 4 | | of the amount paid per kilowatthour by those | 5 | | customers during the year ending May 31, 2010 or 1% | 6 | | of the amount paid per kilowatthour by those | 7 | | customers during the year ending May 31, 2009; | 8 | | (C) in 2012, the greater of an additional 0.5% | 9 | | of the amount paid per kilowatthour by those | 10 | | customers during the year ending May 31, 2011 or | 11 | | 1.5% of the amount paid per kilowatthour by those | 12 | | customers during the year ending May 31, 2009; | 13 | | (D) in 2013, the greater of an additional 0.5% | 14 | | of the amount paid per kilowatthour by those | 15 | | customers during the year ending May 31, 2012 or 2% | 16 | | of the amount paid per kilowatthour by those | 17 | | customers during the year ending May 31, 2009; and | 18 | | (E) thereafter, the total amount paid under | 19 | | sourcing agreements with clean coal facilities | 20 | | pursuant to the procurement plan for any single | 21 | | year shall be reduced by an amount necessary to | 22 | | limit the estimated average net increase due to the | 23 | | cost of these resources included in the amounts | 24 | | paid by eligible retail customers in connection | 25 | | with electric service to no more than the greater | 26 | | of (i) 2.015% of the amount paid per kilowatthour |
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| 1 | | by those customers during the year ending May 31, | 2 | | 2009 or (ii) the incremental amount per | 3 | | kilowatthour paid for these resources in 2013. | 4 | | These requirements may be altered only as provided | 5 | | by statute.
No later than June 30, 2015, the | 6 | | Commission shall review the limitation on the | 7 | | total amount paid under sourcing agreements, if | 8 | | any, with clean coal facilities pursuant to this | 9 | | subsection (d) and report to the General Assembly | 10 | | its findings as to whether that limitation unduly | 11 | | constrains the amount of electricity generated by | 12 | | cost-effective clean coal facilities that is | 13 | | covered by sourcing agreements. | 14 | | (3) Initial clean coal facility. In order to promote | 15 | | development of clean coal facilities in Illinois, each | 16 | | electric utility subject to this Section shall execute a | 17 | | sourcing agreement to source electricity from a proposed | 18 | | clean coal facility in Illinois (the "initial clean coal | 19 | | facility") that will have a nameplate capacity of at least | 20 | | 500 MW when commercial operation commences, that has a | 21 | | final Clean Air Act permit on the effective date of this | 22 | | amendatory Act of the 95th General Assembly, and that will | 23 | | meet the definition of clean coal facility in Section 1-10 | 24 | | of this Act when commercial operation commences. The | 25 | | sourcing agreements with this initial clean coal facility | 26 | | shall be subject to both approval of the initial clean coal |
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| 1 | | facility by the General Assembly and satisfaction of the | 2 | | requirements of paragraph (4) of this subsection (d) and | 3 | | shall be executed within 90 days after any such approval by | 4 | | the General Assembly. The Agency and the Commission shall | 5 | | have authority to inspect all books and records associated | 6 | | with the initial clean coal facility during the term of | 7 | | such a sourcing agreement. A utility's sourcing agreement | 8 | | for electricity produced by the initial clean coal facility | 9 | | shall include: | 10 | | (A) a formula contractual price (the "contract | 11 | | price") approved pursuant to paragraph (4) of this | 12 | | subsection (d), which shall: | 13 | | (i) be determined using a cost of service | 14 | | methodology employing either a level or deferred | 15 | | capital recovery component, based on a capital | 16 | | structure consisting of 45% equity and 55% debt, | 17 | | and a return on equity as may be approved by the | 18 | | Federal Energy Regulatory Commission, which in any | 19 | | case may not exceed the lower of 11.5% or the rate | 20 | | of return approved by the General Assembly | 21 | | pursuant to paragraph (4) of this subsection (d); | 22 | | and | 23 | | (ii) provide that all miscellaneous net | 24 | | revenue, including but not limited to net revenue | 25 | | from the sale of emission allowances, if any, | 26 | | substitute natural gas, if any, grants or other |
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| 1 | | support provided by the State of Illinois or the | 2 | | United States Government, firm transmission | 3 | | rights, if any, by-products produced by the | 4 | | facility, energy or capacity derived from the | 5 | | facility and not covered by a sourcing agreement | 6 | | pursuant to paragraph (3) of this subsection (d) or | 7 | | item (5) of subsection (d) of Section 16-115 of the | 8 | | Public Utilities Act, whether generated from the | 9 | | synthesis gas derived from coal, from SNG, or from | 10 | | natural gas, shall be credited against the revenue | 11 | | requirement for this initial clean coal facility; | 12 | | (B) power purchase provisions, which shall: | 13 | | (i) provide that the utility party to such | 14 | | sourcing agreement shall pay the contract price | 15 | | for electricity delivered under such sourcing | 16 | | agreement; | 17 | | (ii) require delivery of electricity to the | 18 | | regional transmission organization market of the | 19 | | utility that is party to such sourcing agreement; | 20 | | (iii) require the utility party to such | 21 | | sourcing agreement to buy from the initial clean | 22 | | coal facility in each hour an amount of energy | 23 | | equal to all clean coal energy made available from | 24 | | the initial clean coal facility during such hour | 25 | | times a fraction, the numerator of which is such | 26 | | utility's retail market sales of electricity |
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| 1 | | (expressed in kilowatthours sold) in the State | 2 | | during the prior calendar month and the | 3 | | denominator of which is the total retail market | 4 | | sales of electricity (expressed in kilowatthours | 5 | | sold) in the State by utilities during such prior | 6 | | month and the sales of electricity (expressed in | 7 | | kilowatthours sold) in the State by alternative | 8 | | retail electric suppliers during such prior month | 9 | | that are subject to the requirements of this | 10 | | subsection (d) and paragraph (5) of subsection (d) | 11 | | of Section 16-115 of the Public Utilities Act, | 12 | | provided that the amount purchased by the utility | 13 | | in any year will be limited by paragraph (2) of | 14 | | this subsection (d); and | 15 | | (iv) be considered pre-existing contracts in | 16 | | such utility's procurement plans for eligible | 17 | | retail customers; | 18 | | (C) contract for differences provisions, which | 19 | | shall: | 20 | | (i) require the utility party to such sourcing | 21 | | agreement to contract with the initial clean coal | 22 | | facility in each hour with respect to an amount of | 23 | | energy equal to all clean coal energy made | 24 | | available from the initial clean coal facility | 25 | | during such hour times a fraction, the numerator of | 26 | | which is such utility's retail market sales of |
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| 1 | | electricity (expressed in kilowatthours sold) in | 2 | | the utility's service territory in the State | 3 | | during the prior calendar month and the | 4 | | denominator of which is the total retail market | 5 | | sales of electricity (expressed in kilowatthours | 6 | | sold) in the State by utilities during such prior | 7 | | month and the sales of electricity (expressed in | 8 | | kilowatthours sold) in the State by alternative | 9 | | retail electric suppliers during such prior month | 10 | | that are subject to the requirements of this | 11 | | subsection (d) and paragraph (5) of subsection (d) | 12 | | of Section 16-115 of the Public Utilities Act, | 13 | | provided that the amount paid by the utility in any | 14 | | year will be limited by paragraph (2) of this | 15 | | subsection (d); | 16 | | (ii) provide that the utility's payment | 17 | | obligation in respect of the quantity of | 18 | | electricity determined pursuant to the preceding | 19 | | clause (i) shall be limited to an amount equal to | 20 | | (1) the difference between the contract price | 21 | | determined pursuant to subparagraph (A) of | 22 | | paragraph (3) of this subsection (d) and the | 23 | | day-ahead price for electricity delivered to the | 24 | | regional transmission organization market of the | 25 | | utility that is party to such sourcing agreement | 26 | | (or any successor delivery point at which such |
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| 1 | | utility's supply obligations are financially | 2 | | settled on an hourly basis) (the "reference | 3 | | price") on the day preceding the day on which the | 4 | | electricity is delivered to the initial clean coal | 5 | | facility busbar, multiplied by (2) the quantity of | 6 | | electricity determined pursuant to the preceding | 7 | | clause (i); and | 8 | | (iii) not require the utility to take physical | 9 | | delivery of the electricity produced by the | 10 | | facility; | 11 | | (D) general provisions, which shall: | 12 | | (i) specify a term of no more than 30 years, | 13 | | commencing on the commercial operation date of the | 14 | | facility; | 15 | | (ii) provide that utilities shall maintain | 16 | | adequate records documenting purchases under the | 17 | | sourcing agreements entered into to comply with | 18 | | this subsection (d) and shall file an accounting | 19 | | with the load forecast that must be filed with the | 20 | | Agency by July 15 of each year, in accordance with | 21 | | subsection (d) of Section 16-111.5 of the Public | 22 | | Utilities Act. | 23 | | (iii) provide that all costs associated with | 24 | | the initial clean coal facility will be | 25 | | periodically reported to the Federal Energy | 26 | | Regulatory Commission and to purchasers in |
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| 1 | | accordance with applicable laws governing | 2 | | cost-based wholesale power contracts; | 3 | | (iv) permit the Illinois Power Agency to | 4 | | assume ownership of the initial clean coal | 5 | | facility, without monetary consideration and | 6 | | otherwise on reasonable terms acceptable to the | 7 | | Agency, if the Agency so requests no less than 3 | 8 | | years prior to the end of the stated contract term; | 9 | | (v) require the owner of the initial clean coal | 10 | | facility to provide documentation to the | 11 | | Commission each year, starting in the facility's | 12 | | first year of commercial operation, accurately | 13 | | reporting the quantity of carbon emissions from | 14 | | the facility that have been captured and | 15 | | sequestered and report any quantities of carbon | 16 | | released from the site or sites at which carbon | 17 | | emissions were sequestered in prior years, based | 18 | | on continuous monitoring of such sites. If, in any | 19 | | year after the first year of commercial operation, | 20 | | the owner of the facility fails to demonstrate that | 21 | | the initial clean coal facility captured and | 22 | | sequestered at least 50% of the total carbon | 23 | | emissions that the facility would otherwise emit | 24 | | or that sequestration of emissions from prior | 25 | | years has failed, resulting in the release of | 26 | | carbon dioxide into the atmosphere, the owner of |
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| 1 | | the facility must offset excess emissions. Any | 2 | | such carbon offsets must be permanent, additional, | 3 | | verifiable, real, located within the State of | 4 | | Illinois, and legally and practicably enforceable. | 5 | | The cost of such offsets for the facility that are | 6 | | not recoverable shall not exceed $15 million in any | 7 | | given year. No costs of any such purchases of | 8 | | carbon offsets may be recovered from a utility or | 9 | | its customers. All carbon offsets purchased for | 10 | | this purpose and any carbon emission credits | 11 | | associated with sequestration of carbon from the | 12 | | facility must be permanently retired. The initial | 13 | | clean coal facility shall not forfeit its | 14 | | designation as a clean coal facility if the | 15 | | facility fails to fully comply with the applicable | 16 | | carbon sequestration requirements in any given | 17 | | year, provided the requisite offsets are | 18 | | purchased. However, the Attorney General, on | 19 | | behalf of the People of the State of Illinois, may | 20 | | specifically enforce the facility's sequestration | 21 | | requirement and the other terms of this contract | 22 | | provision. Compliance with the sequestration | 23 | | requirements and offset purchase requirements | 24 | | specified in paragraph (3) of this subsection (d) | 25 | | shall be reviewed annually by an independent | 26 | | expert retained by the owner of the initial clean |
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| 1 | | coal facility, with the advance written approval | 2 | | of the Attorney General. The Commission may, in the | 3 | | course of the review specified in item (vii), | 4 | | reduce the allowable return on equity for the | 5 | | facility if the facility wilfully fails to comply | 6 | | with the carbon capture and sequestration | 7 | | requirements set forth in this item (v); | 8 | | (vi) include limits on, and accordingly | 9 | | provide for modification of, the amount the | 10 | | utility is required to source under the sourcing | 11 | | agreement consistent with paragraph (2) of this | 12 | | subsection (d); | 13 | | (vii) require Commission review: (1) to | 14 | | determine the justness, reasonableness, and | 15 | | prudence of the inputs to the formula referenced in | 16 | | subparagraphs (A)(i) through (A)(iii) of paragraph | 17 | | (3) of this subsection (d), prior to an adjustment | 18 | | in those inputs including, without limitation, the | 19 | | capital structure and return on equity, fuel | 20 | | costs, and other operations and maintenance costs | 21 | | and (2) to approve the costs to be passed through | 22 | | to customers under the sourcing agreement by which | 23 | | the utility satisfies its statutory obligations. | 24 | | Commission review shall occur no less than every 3 | 25 | | years, regardless of whether any adjustments have | 26 | | been proposed, and shall be completed within 9 |
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| 1 | | months; | 2 | | (viii) limit the utility's obligation to such | 3 | | amount as the utility is allowed to recover through | 4 | | tariffs filed with the Commission, provided that | 5 | | neither the clean coal facility nor the utility | 6 | | waives any right to assert federal pre-emption or | 7 | | any other argument in response to a purported | 8 | | disallowance of recovery costs; | 9 | | (ix) limit the utility's or alternative retail | 10 | | electric supplier's obligation to incur any | 11 | | liability until such time as the facility is in | 12 | | commercial operation and generating power and | 13 | | energy and such power and energy is being delivered | 14 | | to the facility busbar; | 15 | | (x) provide that the owner or owners of the | 16 | | initial clean coal facility, which is the | 17 | | counterparty to such sourcing agreement, shall | 18 | | have the right from time to time to elect whether | 19 | | the obligations of the utility party thereto shall | 20 | | be governed by the power purchase provisions or the | 21 | | contract for differences provisions; | 22 | | (xi) append documentation showing that the | 23 | | formula rate and contract, insofar as they relate | 24 | | to the power purchase provisions, have been | 25 | | approved by the Federal Energy Regulatory | 26 | | Commission pursuant to Section 205 of the Federal |
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| 1 | | Power Act; | 2 | | (xii) provide that any changes to the terms of | 3 | | the contract, insofar as such changes relate to the | 4 | | power purchase provisions, are subject to review | 5 | | under the public interest standard applied by the | 6 | | Federal Energy Regulatory Commission pursuant to | 7 | | Sections 205 and 206 of the Federal Power Act; and | 8 | | (xiii) conform with customary lender | 9 | | requirements in power purchase agreements used as | 10 | | the basis for financing non-utility generators. | 11 | | (4) Effective date of sourcing agreements with the | 12 | | initial clean coal facility. Any proposed sourcing | 13 | | agreement with the initial clean coal facility shall not | 14 | | become effective unless the following reports are prepared | 15 | | and submitted and authorizations and approvals obtained: | 16 | | (i) Facility cost report. The owner of the | 17 | | initial clean coal facility shall submit to the | 18 | | Commission, the Agency, and the General Assembly a | 19 | | front-end engineering and design study, a facility | 20 | | cost report, method of financing (including but | 21 | | not limited to structure and associated costs), | 22 | | and an operating and maintenance cost quote for the | 23 | | facility (collectively "facility cost report"), | 24 | | which shall be prepared in accordance with the | 25 | | requirements of this paragraph (4) of subsection | 26 | | (d) of this Section, and shall provide the |
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| 1 | | Commission and the Agency access to the work | 2 | | papers, relied upon documents, and any other | 3 | | backup documentation related to the facility cost | 4 | | report. | 5 | | (ii) Commission report. Within 6 months | 6 | | following receipt of the facility cost report, the | 7 | | Commission, in consultation with the Agency, shall | 8 | | submit a report to the General Assembly setting | 9 | | forth its analysis of the facility cost report. | 10 | | Such report shall include, but not be limited to, a | 11 | | comparison of the costs associated with | 12 | | electricity generated by the initial clean coal | 13 | | facility to the costs associated with electricity | 14 | | generated by other types of generation facilities, | 15 | | an analysis of the rate impacts on residential and | 16 | | small business customers over the life of the | 17 | | sourcing agreements, and an analysis of the | 18 | | likelihood that the initial clean coal facility | 19 | | will commence commercial operation by and be | 20 | | delivering power to the facility's busbar by 2016. | 21 | | To assist in the preparation of its report, the | 22 | | Commission, in consultation with the Agency, may | 23 | | hire one or more experts or consultants, the costs | 24 | | of which shall be paid for by the owner of the | 25 | | initial clean coal facility. The Commission and | 26 | | Agency may begin the process of selecting such |
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| 1 | | experts or consultants prior to receipt of the | 2 | | facility cost report. | 3 | | (iii) General Assembly approval. The proposed | 4 | | sourcing agreements shall not take effect unless, | 5 | | based on the facility cost report and the | 6 | | Commission's report, the General Assembly enacts | 7 | | authorizing legislation approving (A) the | 8 | | projected price, stated in cents per kilowatthour, | 9 | | to be charged for electricity generated by the | 10 | | initial clean coal facility, (B) the projected | 11 | | impact on residential and small business | 12 | | customers' bills over the life of the sourcing | 13 | | agreements, and (C) the maximum allowable return | 14 | | on equity for the project; and | 15 | | (iv) Commission review. If the General | 16 | | Assembly enacts authorizing legislation pursuant | 17 | | to subparagraph (iii) approving a sourcing | 18 | | agreement, the Commission shall, within 90 days of | 19 | | such enactment, complete a review of such sourcing | 20 | | agreement. During such time period, the Commission | 21 | | shall implement any directive of the General | 22 | | Assembly, resolve any disputes between the parties | 23 | | to the sourcing agreement concerning the terms of | 24 | | such agreement, approve the form of such | 25 | | agreement, and issue an order finding that the | 26 | | sourcing agreement is prudent and reasonable. |
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| 1 | | The facility cost report shall be prepared as follows: | 2 | | (A) The facility cost report shall be prepared by | 3 | | duly licensed engineering and construction firms | 4 | | detailing the estimated capital costs payable to one or | 5 | | more contractors or suppliers for the engineering, | 6 | | procurement and construction of the components | 7 | | comprising the initial clean coal facility and the | 8 | | estimated costs of operation and maintenance of the | 9 | | facility. The facility cost report shall include: | 10 | | (i) an estimate of the capital cost of the core | 11 | | plant based on one or more front end engineering | 12 | | and design studies for the gasification island and | 13 | | related facilities. The core plant shall include | 14 | | all civil, structural, mechanical, electrical, | 15 | | control, and safety systems. | 16 | | (ii) an estimate of the capital cost of the | 17 | | balance of the plant, including any capital costs | 18 | | associated with sequestration of carbon dioxide | 19 | | emissions and all interconnects and interfaces | 20 | | required to operate the facility, such as | 21 | | transmission of electricity, construction or | 22 | | backfeed power supply, pipelines to transport | 23 | | substitute natural gas or carbon dioxide, potable | 24 | | water supply, natural gas supply, water supply, | 25 | | water discharge, landfill, access roads, and coal | 26 | | delivery. |
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| 1 | | The quoted construction costs shall be expressed | 2 | | in nominal dollars as of the date that the quote is | 3 | | prepared and shall include (1) capitalized financing | 4 | | costs during construction,
(2) taxes, insurance, and | 5 | | other owner's costs, and (3) an assumed escalation in | 6 | | materials and labor beyond the date as of which the | 7 | | construction cost quote is expressed. | 8 | | (B) The front end engineering and design study for | 9 | | the gasification island and the cost study for the | 10 | | balance of plant shall include sufficient design work | 11 | | to permit quantification of major categories of | 12 | | materials, commodities and labor hours, and receipt of | 13 | | quotes from vendors of major equipment required to | 14 | | construct and operate the clean coal facility. | 15 | | (C) The facility cost report shall also include an | 16 | | operating and maintenance cost quote that will provide | 17 | | the estimated cost of delivered fuel, personnel, | 18 | | maintenance contracts, chemicals, catalysts, | 19 | | consumables, spares, and other fixed and variable | 20 | | operations and maintenance costs. | 21 | | (a) The delivered fuel cost estimate will be | 22 | | provided by a recognized third party expert or | 23 | | experts in the fuel and transportation industries. | 24 | | (b) The balance of the operating and | 25 | | maintenance cost quote, excluding delivered fuel | 26 | | costs will be developed based on the inputs |
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| 1 | | provided by duly licensed engineering and | 2 | | construction firms performing the construction | 3 | | cost quote, potential vendors under long-term | 4 | | service agreements and plant operating agreements, | 5 | | or recognized third party plant operator or | 6 | | operators. | 7 | | The operating and maintenance cost quote | 8 | | (including the cost of the front end engineering | 9 | | and design study) shall be expressed in nominal | 10 | | dollars as of the date that the quote is prepared | 11 | | and shall include (1) taxes, insurance, and other | 12 | | owner's costs, and (2) an assumed escalation in | 13 | | materials and labor beyond the date as of which the | 14 | | operating and maintenance cost quote is expressed. | 15 | | (D) The facility cost report shall also include (i) | 16 | | an analysis of the initial clean coal facility's | 17 | | ability to deliver power and energy into the applicable | 18 | | regional transmission organization markets and (ii) an | 19 | | analysis of the expected capacity factor for the | 20 | | initial clean coal facility. | 21 | | (E) Amounts paid to third parties unrelated to the | 22 | | owner or owners of the initial clean coal facility to | 23 | | prepare the core plant construction cost quote, | 24 | | including the front end engineering and design study, | 25 | | and the operating and maintenance cost quote will be | 26 | | reimbursed through Coal Development Bonds. |
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| 1 | | (5) Re-powering and retrofitting coal-fired power | 2 | | plants previously owned by Illinois utilities to qualify as | 3 | | clean coal facilities. During the 2009 procurement | 4 | | planning process and thereafter, the Agency and the | 5 | | Commission shall consider sourcing agreements covering | 6 | | electricity generated by power plants that were previously | 7 | | owned by Illinois utilities and that have been or will be | 8 | | converted into clean coal facilities, as defined by Section | 9 | | 1-10 of this Act. Pursuant to such procurement planning | 10 | | process, the owners of such facilities may propose to the | 11 | | Agency sourcing agreements with utilities and alternative | 12 | | retail electric suppliers required to comply with | 13 | | subsection (d) of this Section and item (5) of subsection | 14 | | (d) of Section 16-115 of the Public Utilities Act, covering | 15 | | electricity generated by such facilities. In the case of | 16 | | sourcing agreements that are power purchase agreements, | 17 | | the contract price for electricity sales shall be | 18 | | established on a cost of service basis. In the case of | 19 | | sourcing agreements that are contracts for differences, | 20 | | the contract price from which the reference price is | 21 | | subtracted shall be established on a cost of service basis. | 22 | | The Agency and the Commission may approve any such utility | 23 | | sourcing agreements that do not exceed cost-based | 24 | | benchmarks developed by the procurement administrator, in | 25 | | consultation with the Commission staff, Agency staff and | 26 | | the procurement monitor, subject to Commission review and |
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| 1 | | approval. The Commission shall have authority to inspect | 2 | | all books and records associated with these clean coal | 3 | | facilities during the term of any such contract. | 4 | | (6) Costs incurred under this subsection (d) or | 5 | | pursuant to a contract entered into under this subsection | 6 | | (d) shall be deemed prudently incurred and reasonable in | 7 | | amount and the electric utility shall be entitled to full | 8 | | cost recovery pursuant to the tariffs filed with the | 9 | | Commission. | 10 | | (e) The draft procurement plans are subject to public | 11 | | comment, as required by Section 16-111.5 of the Public | 12 | | Utilities Act. | 13 | | (f) The Agency shall submit the final procurement plan | 14 | | to the Commission. The Agency shall revise a procurement | 15 | | plan if the Commission determines that it does not meet the | 16 | | standards set forth in Section 16-111.5 of the Public | 17 | | Utilities Act. | 18 | | (g) The Agency shall assess fees to each affected | 19 | | utility to recover the costs incurred in preparation of the | 20 | | annual procurement plan for the utility. | 21 | | (h) The Agency shall assess fees to each bidder to | 22 | | recover the costs incurred in connection with a competitive | 23 | | procurement process.
| 24 | | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09; | 25 | | 96-159, eff. 8-10-09; 96-1437, eff. 8-17-10.) |
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| 1 | | (20 ILCS 3855/1-125)
| 2 | | Sec. 1-125. Agency annual reports. By December 1, 2011 and | 3 | | each December 1 thereafter, the The Agency shall report | 4 | | annually to the Governor and the General Assembly on the | 5 | | operations and transactions of the Agency. The annual report | 6 | | shall include, but not be limited to, each of the following: | 7 | | (1) The quantity, price, and term of all contracts for | 8 | | electricity procured under the procurement plans for | 9 | | electric utilities. | 10 | | (2) The quantity, price, and rate impact of all | 11 | | renewable resources purchased under the electricity | 12 | | procurement plans for electric utilities. | 13 | | (3) The quantity, price, and rate impact of all energy | 14 | | efficiency and demand response measures purchased for | 15 | | electric utilities. | 16 | | (4) The amount of power and energy produced by each | 17 | | Agency facility. | 18 | | (5) The quantity of electricity supplied by each Agency | 19 | | facility to municipal electric systems, governmental | 20 | | aggregators, or rural electric cooperatives in Illinois. | 21 | | (6) The revenues as allocated by the Agency to each | 22 | | facility. | 23 | | (7) The costs as allocated by the Agency to each | 24 | | facility. | 25 | | (8) The accumulated depreciation for each facility. | 26 | | (9) The status of any projects under development. |
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| 1 | | (10) Basic financial and operating information | 2 | | specifically detailed for the reporting year and | 3 | | including, but not limited to, income and expense | 4 | | statements, balance sheets, and changes in financial | 5 | | position, all in accordance with generally accepted | 6 | | accounting principles, debt structure, and a summary of | 7 | | funds on a cash basis. | 8 | | (11) The quantity, price, and rate impact of all | 9 | | renewable resources purchased pursuant to long-term | 10 | | contracts under the electricity procurement plans for | 11 | | electric utilities.
| 12 | | (Source: P.A. 95-481, eff. 8-28-07.) | 13 | | Section 10. The Public Utilities Act is amended by changing | 14 | | Section 16-115D as follows: | 15 | | (220 ILCS 5/16-115D) | 16 | | Sec. 16-115D. Renewable portfolio standard for alternative | 17 | | retail electric suppliers and electric utilities operating | 18 | | outside their service territories. | 19 | | (a) An alternative retail electric supplier shall be | 20 | | responsible for procuring cost-effective renewable energy | 21 | | resources as required under item (5) of subsection (d) of | 22 | | Section 16-115 of this Act as outlined herein: | 23 | | (1) The definition of renewable energy resources | 24 | | contained in Section 1-10 of the Illinois Power Agency Act |
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| 1 | | applies to all renewable energy resources required to be | 2 | | procured by alternative retail electric suppliers. | 3 | | (2) The quantity of renewable energy resources shall be | 4 | | measured as a percentage of the actual amount of metered | 5 | | electricity (megawatt-hours) delivered by the alternative | 6 | | retail electric supplier to Illinois retail customers | 7 | | during the 12-month period June 1 through May 31, | 8 | | commencing June 1, 2009, and the comparable 12-month period | 9 | | in each year thereafter except as provided in item (6) of | 10 | | this subsection (a). | 11 | | (3) The quantity of renewable energy resources shall be | 12 | | in amounts at least equal to the annual percentages set | 13 | | forth in item (1) of subsection (c) of Section 1-75 of the | 14 | | Illinois Power Agency Act. At least 60% of the renewable | 15 | | energy resources procured pursuant to items (1) through (3) | 16 | | of subsection (b) of this Section shall come from wind | 17 | | generation and, starting June 1, 2015, at least 6% of the | 18 | | renewable energy resources procured pursuant to items (1) | 19 | | through (3) of subsection (b) of this Section shall come | 20 | | from solar photovoltaics. If, in any given year, an | 21 | | alternative retail electric supplier does not purchase at | 22 | | least these levels of renewable energy resources, then the | 23 | | alternative retail electric supplier shall make | 24 | | alternative compliance payments, as described in | 25 | | subsection (d) of this Section. | 26 | | (4) The quantity and source of renewable energy |
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| 1 | | resources shall be independently verified through the PJM | 2 | | Environmental Information System Generation Attribute | 3 | | Tracking System (PJM-GATS) or the Midwest Renewable Energy | 4 | | Tracking System (M-RETS), which shall document the | 5 | | location of generation, resource type, month, and year of | 6 | | generation for all qualifying renewable energy resources | 7 | | that an alternative retail electric supplier uses to comply | 8 | | with this Section. No later than June 1, 2009, the Illinois | 9 | | Power Agency shall provide PJM-GATS, M-RETS, and | 10 | | alternative retail electric suppliers with all information | 11 | | necessary to identify resources located in Illinois, | 12 | | within states that adjoin Illinois or within portions of | 13 | | the PJM and MISO footprint in the United States that | 14 | | qualify under the definition of renewable energy resources | 15 | | in Section 1-10 of the Illinois Power Agency Act for | 16 | | compliance with this Section 16-115D. Alternative retail | 17 | | electric suppliers shall not be subject to the requirements | 18 | | in item (3) of subsection (c) of Section 1-75 of the | 19 | | Illinois Power Agency Act. | 20 | | (5) All renewable energy credits used to comply with | 21 | | this Section shall be permanently retired. | 22 | | (6) The required procurement of renewable energy | 23 | | resources by an alternative retail electric supplier shall | 24 | | apply to all metered electricity delivered to Illinois | 25 | | retail customers by the alternative retail electric | 26 | | supplier pursuant to contracts executed or extended after |
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| 1 | | March 15, 2009. | 2 | | (b) An alternative retail electric supplier shall comply | 3 | | with the renewable energy portfolio standards by making an | 4 | | alternative compliance payment, as described in subsection (d) | 5 | | of this Section, to cover at least one-half of the alternative | 6 | | retail electric supplier's compliance obligation and any one or | 7 | | combination of the following means to cover the remainder of | 8 | | the alternative retail electric supplier's compliance | 9 | | obligation: | 10 | | (1) Generating electricity using renewable energy | 11 | | resources identified pursuant to item (4) of subsection (a) | 12 | | of this Section. | 13 | | (2) Purchasing electricity generated using renewable | 14 | | energy resources identified pursuant to item (4) of | 15 | | subsection (a) of this Section through an energy contract. | 16 | | (3) Purchasing renewable energy credits from renewable | 17 | | energy resources identified pursuant to item (4) of | 18 | | subsection (a) of this Section. | 19 | | (4) Making an alternative compliance payment as | 20 | | described in subsection (d) of this Section. | 21 | | (c) Use of renewable energy credits. | 22 | | (1) Renewable energy credits that are not used by an | 23 | | alternative retail electric supplier to comply with a | 24 | | renewable portfolio standard in a compliance year may be | 25 | | banked and carried forward up to 2 12-month compliance | 26 | | periods after the compliance period in which the credit was |
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| 1 | | generated for the purpose of complying with a renewable | 2 | | portfolio standard in those 2 subsequent compliance | 3 | | periods. For the 2009-2010 and 2010-2011 compliance | 4 | | periods, an alternative retail electric supplier may use | 5 | | renewable credits generated after December 31, 2008 and | 6 | | before June 1, 2009 to comply with this Section. | 7 | | (2) An alternative retail electric supplier is | 8 | | responsible for demonstrating that a renewable energy | 9 | | credit used to comply with a renewable portfolio standard | 10 | | is derived from a renewable energy resource and that the | 11 | | alternative retail electric supplier has not used, traded, | 12 | | sold, or otherwise transferred the credit. | 13 | | (3) The same renewable energy credit may be used by an | 14 | | alternative retail electric supplier to comply with a | 15 | | federal renewable portfolio standard and a renewable | 16 | | portfolio standard established under this Act. An | 17 | | alternative retail electric supplier that uses a renewable | 18 | | energy credit to comply with a renewable portfolio standard | 19 | | imposed by any other state may not use the same credit to | 20 | | comply with a renewable portfolio standard established | 21 | | under this Act. | 22 | | (d) Alternative compliance payments. | 23 | | (1) The Commission shall establish and post on its | 24 | | website, within 5 business days after entering an order | 25 | | approving a procurement plan pursuant to Section 1-75 of | 26 | | the Illinois Power Agency Act, maximum alternative |
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| 1 | | compliance payment rates, expressed on a per kilowatt-hour | 2 | | basis, that will be applicable in the first compliance | 3 | | period following the plan approval. A separate maximum | 4 | | alternative compliance payment rate shall be established | 5 | | for the service territory of each electric utility that is | 6 | | subject to subsection (c) of Section 1-75 of the Illinois | 7 | | Power Agency Act. Each maximum alternative compliance | 8 | | payment rate shall be equal to the maximum allowable annual | 9 | | estimated average net increase due to the costs of the | 10 | | utility's purchase of renewable energy resources included | 11 | | in the amounts paid by eligible retail customers in | 12 | | connection with electric service, as described in item (2) | 13 | | of subsection (c) of Section 1-75 of the Illinois Power | 14 | | Agency Act for the compliance period, and as established in | 15 | | the approved procurement plan. Following each procurement | 16 | | event through which renewable energy resources are | 17 | | purchased for one or more of these utilities for the | 18 | | compliance period, the Commission shall establish and post | 19 | | on its website estimates of the alternative compliance | 20 | | payment rates, expressed on a per kilowatt-hour basis, that | 21 | | shall apply for that compliance period. Posting of the | 22 | | estimates shall occur no later than 10 business days | 23 | | following the procurement event, however, the Commission | 24 | | shall not be required to establish and post such estimates | 25 | | more often than once per calendar month. By July 1 of each | 26 | | year, the Commission shall establish and post on its |
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| 1 | | website the actual alternative compliance payment rates | 2 | | for the preceding compliance year. For compliance years | 3 | | beginning prior to June 1, 2014, each alternative | 4 | | compliance payment rate shall be equal to the total amount | 5 | | of dollars that the utility contracted to spend on | 6 | | renewable resources, excepting the additional incremental | 7 | | cost attributable to solar resources, for the compliance | 8 | | period divided by the forecasted load of eligible retail | 9 | | customers, at the customers' meters, as previously | 10 | | established in the Commission-approved procurement plan | 11 | | for that compliance year. For compliance years commencing | 12 | | on or after June 1, 2014, each alternative compliance | 13 | | payment rate shall be equal to the total amount of dollars | 14 | | that the utility contracted to spend on all renewable | 15 | | resources for the compliance period divided by the | 16 | | forecasted load of eligible retail customers, at the | 17 | | customers' meters, as previously established in the | 18 | | Commission-approved procurement plan for that compliance | 19 | | year. The actual alternative compliance payment rates may | 20 | | not exceed the maximum alternative compliance payment | 21 | | rates established for the compliance period. For purposes | 22 | | of this subsection (d), the term "eligible retail | 23 | | customers" has the same meaning as found in Section | 24 | | 16-111.5 of this Act. | 25 | | (2) In any given compliance year, an alternative retail | 26 | | electric supplier may elect to use alternative compliance |
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| 1 | | payments to comply with all or a part of the applicable | 2 | | renewable portfolio standard. In the event that an | 3 | | alternative retail electric supplier elects to make | 4 | | alternative compliance payments to comply with all or a | 5 | | part of the applicable renewable portfolio standard, such | 6 | | payments shall be made by September 1, 2010 for the period | 7 | | of June 1, 2009 to May 1, 2010 and by September 1 of each | 8 | | year thereafter for the subsequent compliance period, in | 9 | | the manner and form as determined by the Commission. Any | 10 | | election by an alternative retail electric supplier to use | 11 | | alternative compliance payments is subject to review by the | 12 | | Commission under subsection (e) of this Section. | 13 | | (3) An alternative retail electric supplier's | 14 | | alternative compliance payments shall be computed | 15 | | separately for each electric utility's service territory | 16 | | within which the alternative retail electric supplier | 17 | | provided retail service during the compliance period, | 18 | | provided that the electric utility was subject to | 19 | | subsection (c) of Section 1-75 of the Illinois Power Agency | 20 | | Act. For each service territory, the alternative retail | 21 | | electric supplier's alternative compliance payment shall | 22 | | be equal to (i) the actual alternative compliance payment | 23 | | rate established in item (1) of this subsection (d), | 24 | | multiplied by (ii) the actual amount of metered electricity | 25 | | delivered by the alternative retail electric supplier to | 26 | | retail customers within the service territory during the |
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| 1 | | compliance period, multiplied by (iii) the result of one | 2 | | minus the ratios of the quantity of renewable energy | 3 | | resources used by the alternative retail electric supplier | 4 | | to comply with the requirements of this Section within the | 5 | | service territory to the product of the percentage of | 6 | | renewable energy resources required under item (3) of | 7 | | subsection (a) of this Section and the actual amount of | 8 | | metered electricity delivered by the alternative retail | 9 | | electric supplier to retail customers within the service | 10 | | territory during the compliance period. | 11 | | (4) All alternative compliance payments by alternative | 12 | | retail electric suppliers shall be deposited in the | 13 | | Illinois Power Agency Renewable Energy Resources Fund and | 14 | | used to purchase renewable energy credits, in accordance | 15 | | with Section 1-56 of the Illinois Power Agency Act. | 16 | | Beginning April 1, 2012 and by April 1 of each year | 17 | | thereafter, the Illinois Power Agency shall submit an | 18 | | annual report to the General Assembly, the Commission, and | 19 | | alternative retail electric suppliers that shall include, | 20 | | but not be limited to: | 21 | | (A) the total amount of alternative compliance | 22 | | payments received in aggregate from alternative retail | 23 | | electric suppliers by planning year for all previous | 24 | | planning years in which the alternative compliance | 25 | | payment was in effect; | 26 | | (B) the amount of those payments utilized to |
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| 1 | | purchased renewable energy credits itemized by the | 2 | | date of each procurement in which the payments were | 3 | | utilized; and | 4 | | (C) the unused and remaining balance in the Agency | 5 | | Renewable Energy Resources Fund attributable to those | 6 | | payments. | 7 | | (5) The Commission, in consultation with the Illinois | 8 | | Power Agency, shall establish a process or proceeding to | 9 | | consider the impact of a federal renewable portfolio | 10 | | standard, if enacted, on the operation of the alternative | 11 | | compliance mechanism, which shall include, but not be | 12 | | limited to, developing, to the extent permitted by the | 13 | | applicable federal statute, an appropriate methodology to | 14 | | apportion renewable energy credits retired as a result of | 15 | | alternative compliance payments made in accordance with | 16 | | this Section. The Commission shall commence any such | 17 | | process or proceeding within 35 days after enactment of a | 18 | | federal renewable portfolio standard. | 19 | | (e) Each alternative retail electric supplier shall, by | 20 | | September 1, 2010 and by September 1 of each year thereafter, | 21 | | prepare and submit to the Commission a report, in a format to | 22 | | be specified by the Commission on or before December 31, 2009, | 23 | | that provides information certifying compliance by the | 24 | | alternative retail electric supplier with this Section, | 25 | | including copies of all PJM-GATS and M-RETS reports, and | 26 | | documentation relating to banking, retiring renewable energy |
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| 1 | | credits, and any other information that the Commission | 2 | | determines necessary to ensure compliance with this Section. An | 3 | | alternative retail electric supplier may file commercially or | 4 | | financially sensitive information or trade secrets with the | 5 | | Commission as provided under the rules of the Commission. To be | 6 | | filed confidentially, the information shall be accompanied by | 7 | | an affidavit that sets forth both the reasons for the | 8 | | confidentiality and a public synopsis of the information. | 9 | | (f) The Commission may initiate a contested case to review | 10 | | allegations that the alternative retail electric supplier has | 11 | | violated this Section, including an order issued or rule | 12 | | promulgated under this Section. In any such proceeding, the | 13 | | alternative retail electric supplier shall have the burden of | 14 | | proof. If the Commission finds, after notice and hearing, that | 15 | | an alternative retail electric supplier has violated this | 16 | | Section, then the Commission shall issue an order requiring the | 17 | | alternative retail electric supplier to: | 18 | | (1) immediately comply with this Section; and | 19 | | (2) if the violation involves a failure to procure the | 20 | | requisite quantity of renewable energy resources or pay the | 21 | | applicable alternative compliance payment by the annual | 22 | | deadline, the Commission shall require the alternative | 23 | | retail electric supplier to double the applicable | 24 | | alternative compliance payment that would otherwise be | 25 | | required to bring the alternative retail electric supplier | 26 | | into compliance with this Section. |
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| 1 | | If an alternative retail electric supplier fails to comply | 2 | | with the renewable energy resource portfolio requirement in | 3 | | this Section more than once in a 5-year period, then the | 4 | | Commission shall revoke the alternative electric supplier's | 5 | | certificate of service authority. The Commission shall not | 6 | | accept an application for a certificate of service authority | 7 | | from an alternative retail electric supplier that has lost | 8 | | certification under this subsection (f), or any corporate | 9 | | affiliate thereof, for at least one year after the date of | 10 | | revocation. | 11 | | (g) All of the provisions of this Section apply to electric | 12 | | utilities operating outside their service area except under | 13 | | item (2) of subsection (a) of this Section the quantity of | 14 | | renewable energy resources shall be measured as a percentage of | 15 | | the actual amount of electricity (megawatt-hours) supplied in | 16 | | the State outside of the utility's service territory during the | 17 | | 12-month period June 1 through May 31, commencing June 1, 2009, | 18 | | and the comparable 12-month period in each year thereafter | 19 | | except as provided in item (6) of subsection (a) of this | 20 | | Section. | 21 | | If any such utility fails to procure the requisite quantity | 22 | | of renewable energy resources by the annual deadline, then the | 23 | | Commission shall require the utility to double the alternative | 24 | | compliance payment that would otherwise be required to bring | 25 | | the utility into compliance with this Section. | 26 | | If any such utility fails to comply with the renewable |
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| 1 | | energy resource portfolio requirement in this Section more than | 2 | | once in a 5-year period, then the Commission shall order the | 3 | | utility to cease all sales outside of the utility's service | 4 | | territory for a period of at least one year. | 5 | | (h) The provisions of this Section and the provisions of | 6 | | subsection (d) of Section 16-115 of this Act relating to | 7 | | procurement of renewable energy resources shall not apply to an | 8 | | alternative retail electric supplier that operates a combined | 9 | | heat and power system in this State or that has a corporate | 10 | | affiliate that operates such a combined heat and power system | 11 | | in this State that supplies electricity primarily to or for the | 12 | | benefit of: (i) facilities owned by the supplier, its | 13 | | subsidiary, or other corporate affiliate; (ii) facilities | 14 | | electrically integrated with the electrical system of | 15 | | facilities owned by the supplier, its subsidiary, or other | 16 | | corporate affiliate; or (iii) facilities that are adjacent to | 17 | | the site on which the combined heat and power system is | 18 | | located.
| 19 | | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | 20 | | 96-1437, eff. 8-17-10.)
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
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