Full Text of SB2939 99th General Assembly
SB2939sam002 99TH GENERAL ASSEMBLY | Sen. James F. Clayborne, Jr. Filed: 5/27/2016
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| 1 | | AMENDMENT TO SENATE BILL 2939
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2939 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Power Agency Act is amended by | 5 | | changing Section 1-75 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 year, | 11 | | beginning in 2008, develop procurement plans and conduct | 12 | | competitive procurement processes in accordance with the | 13 | | requirements of Section 16-111.5 of the Public Utilities Act | 14 | | for the eligible retail customers of electric utilities that on | 15 | | December 31, 2005 provided electric service to at least 100,000 | 16 | | customers in Illinois. The Planning and Procurement Bureau |
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| 1 | | shall also develop procurement plans and conduct competitive | 2 | | procurement processes in accordance with the requirements of | 3 | | Section 16-111.5 of the Public Utilities Act for the eligible | 4 | | retail customers of small multi-jurisdictional electric | 5 | | utilities that (i) on December 31, 2005 served less than | 6 | | 100,000 customers in Illinois and (ii) request a procurement | 7 | | plan for their Illinois jurisdictional load. This Section shall | 8 | | not apply to a small multi-jurisdictional utility until such | 9 | | time as a small multi-jurisdictional utility requests the | 10 | | Agency to prepare a procurement plan for their Illinois | 11 | | jurisdictional load. For the purposes of this Section, the term | 12 | | "eligible retail customers" has the same definition as found in | 13 | | Section 16-111.5(a) of the Public Utilities Act. | 14 | | (1) The Agency shall each year, beginning in 2008, as | 15 | | needed, issue a request for qualifications for experts or | 16 | | expert consulting firms to develop the procurement plans in | 17 | | accordance with Section 16-111.5 of the Public Utilities | 18 | | Act. In order to qualify an expert or expert consulting | 19 | | firm must have: | 20 | | (A) direct previous experience assembling | 21 | | large-scale power supply plans or portfolios for | 22 | | end-use customers; | 23 | | (B) an advanced degree in economics, mathematics, | 24 | | engineering, risk management, or a related area of | 25 | | study; | 26 | | (C) 10 years of experience in the electricity |
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| 1 | | sector, including managing supply risk; | 2 | | (D) expertise in wholesale electricity market | 3 | | rules, including those established by the Federal | 4 | | Energy Regulatory Commission and regional transmission | 5 | | organizations; | 6 | | (E) expertise in credit protocols and familiarity | 7 | | with contract protocols; | 8 | | (F) adequate resources to perform and fulfill the | 9 | | required functions and responsibilities; and | 10 | | (G) the absence of a conflict of interest and | 11 | | inappropriate bias for or against potential bidders or | 12 | | the affected electric utilities. | 13 | | (2) The Agency shall each year, as needed, issue a | 14 | | request for qualifications for a procurement administrator | 15 | | to conduct the competitive procurement processes in | 16 | | accordance with Section 16-111.5 of the Public Utilities | 17 | | Act. In order to qualify an expert or expert consulting | 18 | | firm must have: | 19 | | (A) direct previous experience administering a | 20 | | large-scale competitive procurement process; | 21 | | (B) an advanced degree in economics, mathematics, | 22 | | engineering, or a related area of study; | 23 | | (C) 10 years of experience in the electricity | 24 | | sector, including risk management experience; | 25 | | (D) expertise in wholesale electricity market | 26 | | rules, including those established by the Federal |
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| 1 | | Energy Regulatory Commission and regional transmission | 2 | | organizations; | 3 | | (E) expertise in credit and contract protocols; | 4 | | (F) adequate resources to perform and fulfill the | 5 | | required functions and responsibilities; and | 6 | | (G) the absence of a conflict of interest and | 7 | | inappropriate bias for or against potential bidders or | 8 | | the affected electric utilities. | 9 | | (3) The Agency shall provide affected utilities and | 10 | | other interested parties with the lists of qualified | 11 | | experts or expert consulting firms identified through the | 12 | | request for qualifications processes that are under | 13 | | consideration to develop the procurement plans and to serve | 14 | | as the procurement administrator. The Agency shall also | 15 | | provide each qualified expert's or expert consulting | 16 | | firm's response to the request for qualifications. All | 17 | | information provided under this subparagraph shall also be | 18 | | provided to the Commission. The Agency may provide by rule | 19 | | for fees associated with supplying the information to | 20 | | utilities and other interested parties. These parties | 21 | | shall, within 5 business days, notify the Agency in writing | 22 | | if they object to any experts or expert consulting firms on | 23 | | the lists. Objections shall be based on: | 24 | | (A) failure to satisfy qualification criteria; | 25 | | (B) identification of a conflict of interest; or | 26 | | (C) evidence of inappropriate bias for or against |
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| 1 | | potential bidders or the affected utilities. | 2 | | The Agency shall remove experts or expert consulting | 3 | | firms from the lists within 10 days if there is a | 4 | | reasonable basis for an objection and provide the updated | 5 | | lists to the affected utilities and other interested | 6 | | parties. If the Agency fails to remove an expert or expert | 7 | | consulting firm from a list, an objecting party may seek | 8 | | review by the Commission within 5 days thereafter by filing | 9 | | a petition, and the Commission shall render a ruling on the | 10 | | petition within 10 days. There is no right of appeal of the | 11 | | Commission's ruling. | 12 | | (4) The Agency shall issue requests for proposals to | 13 | | the qualified experts or expert consulting firms to develop | 14 | | a procurement plan for the affected utilities and to serve | 15 | | as procurement administrator. | 16 | | (5) The Agency shall select an expert or expert | 17 | | consulting firm to develop procurement plans based on the | 18 | | proposals submitted and shall award contracts of up to 5 | 19 | | years to those selected. | 20 | | (6) The Agency shall select an expert or expert | 21 | | consulting firm, with approval of the Commission, to serve | 22 | | as procurement administrator based on the proposals | 23 | | submitted. If the Commission rejects, within 5 days, the | 24 | | Agency's selection, the Agency shall submit another | 25 | | recommendation within 3 days based on the proposals | 26 | | submitted. The Agency shall award a 5-year contract to the |
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| 1 | | expert or expert consulting firm so selected with | 2 | | Commission approval. | 3 | | (b) The experts or expert consulting firms retained by the | 4 | | Agency shall, as appropriate, prepare procurement plans, and | 5 | | conduct a competitive procurement process as prescribed in | 6 | | Section 16-111.5 of the Public Utilities Act, to ensure | 7 | | adequate, reliable, affordable, efficient, and environmentally | 8 | | sustainable electric service at the lowest total cost over | 9 | | time, taking into account any benefits of price stability, for | 10 | | eligible retail customers of electric utilities that on | 11 | | December 31, 2005 provided electric service to at least 100,000 | 12 | | customers in the State of Illinois, and for eligible Illinois | 13 | | retail customers of small multi-jurisdictional electric | 14 | | utilities that (i) on December 31, 2005 served less than | 15 | | 100,000 customers in Illinois and (ii) request a procurement | 16 | | plan for their Illinois jurisdictional load. | 17 | | (c) Renewable portfolio standard. | 18 | | (1) The procurement plans shall include cost-effective | 19 | | renewable energy resources. A minimum percentage of each | 20 | | utility's total supply to serve the load of eligible retail | 21 | | customers, as defined in Section 16-111.5(a) of the Public | 22 | | Utilities Act, procured for each of the following years | 23 | | shall be generated from cost-effective renewable energy | 24 | | resources: at least 2% by June 1, 2008; at least 4% by June | 25 | | 1, 2009; at least 5% by June 1, 2010; at least 6% by June 1, | 26 | | 2011; at least 7% by June 1, 2012; at least 8% by June 1, |
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| 1 | | 2013; at least 9% by June 1, 2014; at least 10% by June 1, | 2 | | 2015; and increasing by at least 1.5% each year thereafter | 3 | | to at least 25% by June 1, 2025. To the extent that it is | 4 | | available, at least 75% of the renewable energy resources | 5 | | used to meet these standards shall come from wind | 6 | | generation and, beginning on June 1, 2011, at least the | 7 | | following percentages of the renewable energy resources | 8 | | used to meet these standards shall come from photovoltaics | 9 | | on the following schedule: 0.5% by June 1, 2012, 1.5% by | 10 | | June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015 and | 11 | | thereafter. Of the renewable energy resources procured | 12 | | pursuant to this Section, at least the following | 13 | | percentages shall come from distributed renewable energy | 14 | | generation devices: 0.5% by June 1, 2013, 0.75% by June 1, | 15 | | 2014, and 1% by June 1, 2015 and thereafter. To the extent | 16 | | available, half of the renewable energy resources procured | 17 | | from distributed renewable energy generation shall come | 18 | | from devices of less than 25 kilowatts in nameplate | 19 | | capacity. Renewable energy resources procured from | 20 | | distributed generation devices may also count towards the | 21 | | required percentages for wind and solar photovoltaics. | 22 | | Procurement of renewable energy resources from distributed | 23 | | renewable energy generation devices shall be done on an | 24 | | annual basis through multi-year contracts of no less than 5 | 25 | | years, and shall consist solely of renewable energy | 26 | | credits. |
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| 1 | | The Agency shall create credit requirements for | 2 | | suppliers of distributed renewable energy. In order to | 3 | | minimize the administrative burden on contracting | 4 | | entities, the Agency shall solicit the use of third-party | 5 | | organizations to aggregate distributed renewable energy | 6 | | into groups of no less than one megawatt in installed | 7 | | capacity. These third-party organizations shall administer | 8 | | contracts with individual distributed renewable energy | 9 | | generation device owners. An individual distributed | 10 | | renewable energy generation device owner shall have the | 11 | | ability to measure the output of his or her distributed | 12 | | renewable energy generation device. | 13 | | For purposes of this subsection (c), "cost-effective" | 14 | | means that the costs of procuring renewable energy | 15 | | resources do not cause the limit stated in paragraph (2) of | 16 | | this subsection (c) to be exceeded and do not exceed | 17 | | benchmarks based on market prices for renewable energy | 18 | | resources in the region, which shall be developed by the | 19 | | procurement administrator, in consultation with the | 20 | | Commission staff, Agency staff, and the procurement | 21 | | monitor and shall be subject to Commission review and | 22 | | approval. | 23 | | (2) For purposes of this subsection (c), the required | 24 | | procurement of cost-effective renewable energy resources | 25 | | for a particular year shall be measured as a percentage of | 26 | | the actual amount of electricity (megawatt-hours) supplied |
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| 1 | | by the electric utility to eligible retail customers in the | 2 | | planning year ending immediately prior to the procurement. | 3 | | For purposes of this subsection (c), the amount paid per | 4 | | kilowatthour means the total amount paid for electric | 5 | | service expressed on a per kilowatthour basis. For purposes | 6 | | of this subsection (c), the total amount paid for electric | 7 | | service includes without limitation amounts paid for | 8 | | supply, transmission, distribution, surcharges, and add-on | 9 | | taxes. | 10 | | Notwithstanding the requirements of this subsection | 11 | | (c), the total of renewable energy resources procured | 12 | | pursuant to the procurement plan for any single year shall | 13 | | be reduced by an amount necessary to limit the annual | 14 | | estimated average net increase due to the costs of these | 15 | | resources included in the amounts paid by eligible retail | 16 | | customers in connection with electric service to: | 17 | | (A) in 2008, no more than 0.5% of the amount paid | 18 | | per kilowatthour by those customers during the year | 19 | | ending May 31, 2007; | 20 | | (B) in 2009, the greater of an additional 0.5% of | 21 | | the amount paid per kilowatthour by those customers | 22 | | during the year ending May 31, 2008 or 1% of the amount | 23 | | paid per kilowatthour by those customers during the | 24 | | year ending May 31, 2007; | 25 | | (C) in 2010, the greater of an additional 0.5% of | 26 | | the amount paid per kilowatthour by those customers |
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| 1 | | during the year ending May 31, 2009 or 1.5% of the | 2 | | amount paid per kilowatthour by those customers during | 3 | | the year ending May 31, 2007; | 4 | | (D) in 2011, the greater of an additional 0.5% of | 5 | | the amount paid per kilowatthour by those customers | 6 | | during the year ending May 31, 2010 or 2% of the amount | 7 | | paid per kilowatthour by those customers during the | 8 | | year ending May 31, 2007; and | 9 | | (E) thereafter, the amount of renewable energy | 10 | | resources procured pursuant to the procurement plan | 11 | | for any single year shall be reduced by an amount | 12 | | necessary to limit the estimated average net increase | 13 | | due to the cost of these resources included in the | 14 | | amounts paid by eligible retail customers in | 15 | | connection with electric service to no more than the | 16 | | greater of 2.015% of the amount paid per kilowatthour | 17 | | by those customers during the year ending May 31, 2007 | 18 | | or the incremental amount per kilowatthour paid for | 19 | | these resources in 2011. | 20 | | No later than June 30, 2011, the Commission shall | 21 | | review the limitation on the amount of renewable energy | 22 | | resources procured pursuant to this subsection (c) and | 23 | | report to the General Assembly its findings as to | 24 | | whether that limitation unduly constrains the | 25 | | procurement of cost-effective renewable energy | 26 | | resources. |
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| 1 | | (3) Through June 1, 2011, renewable energy resources | 2 | | shall be counted for the purpose of meeting the renewable | 3 | | energy standards set forth in paragraph (1) of this | 4 | | subsection (c) only if they are generated from facilities | 5 | | located in the State, provided that cost-effective | 6 | | renewable energy resources are available from those | 7 | | facilities. If those cost-effective resources are not | 8 | | available in Illinois, they shall be procured in states | 9 | | that adjoin Illinois and may be counted towards compliance. | 10 | | If those cost-effective resources are not available in | 11 | | Illinois or in states that adjoin Illinois, they shall be | 12 | | purchased elsewhere and shall be counted towards | 13 | | compliance. After June 1, 2011, cost-effective renewable | 14 | | energy resources located in Illinois and in states that | 15 | | adjoin Illinois may be counted towards compliance with the | 16 | | standards set forth in paragraph (1) of this subsection | 17 | | (c). If those cost-effective resources are not available in | 18 | | Illinois or in states that adjoin Illinois, they shall be | 19 | | purchased elsewhere and shall be counted towards | 20 | | compliance. | 21 | | (4) The electric utility shall retire all renewable | 22 | | energy credits used to comply with the standard. | 23 | | (5) Beginning with the year commencing June 1, 2010, an | 24 | | electric utility subject to this subsection (c) shall apply | 25 | | the lesser of the maximum alternative compliance payment | 26 | | rate or the most recent estimated alternative compliance |
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| 1 | | payment rate for its service territory for the | 2 | | corresponding compliance period, established pursuant to | 3 | | subsection (d) of Section 16-115D of the Public Utilities | 4 | | Act to its retail customers that take service pursuant to | 5 | | the electric utility's hourly pricing tariff or tariffs. | 6 | | The electric utility shall retain all amounts collected as | 7 | | a result of the application of the alternative compliance | 8 | | payment rate or rates to such customers, and, beginning in | 9 | | 2011, the utility shall include in the information provided | 10 | | under item (1) of subsection (d) of Section 16-111.5 of the | 11 | | Public Utilities Act the amounts collected under the | 12 | | alternative compliance payment rate or rates for the prior | 13 | | year ending May 31. Notwithstanding any limitation on the | 14 | | procurement of renewable energy resources imposed by item | 15 | | (2) of this subsection (c), the Agency shall increase its | 16 | | spending on the purchase of renewable energy resources to | 17 | | be procured by the electric utility for the next plan year | 18 | | by an amount equal to the amounts collected by the utility | 19 | | under the alternative compliance payment rate or rates in | 20 | | the prior year ending May 31. Beginning April 1, 2012, and | 21 | | each year thereafter, the Agency shall prepare a public | 22 | | report for the General Assembly and Illinois Commerce | 23 | | Commission that shall include, but not necessarily be | 24 | | limited to: | 25 | | (A) a comparison of the costs associated with the | 26 | | Agency's procurement of renewable energy resources to |
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| 1 | | (1) the Agency's costs associated with electricity | 2 | | generated by other types of generation facilities and | 3 | | (2) the benefits associated with the Agency's | 4 | | procurement of renewable energy resources; and | 5 | | (B) an analysis of the rate impacts associated with | 6 | | the Illinois Power Agency's procurement of renewable | 7 | | resources, including, but not limited to, any | 8 | | long-term contracts, on the eligible retail customers | 9 | | of electric utilities. | 10 | | The analysis shall include the Agency's estimate of the | 11 | | total dollar impact that the Agency's procurement of | 12 | | renewable resources has had on the annual electricity bills | 13 | | of the customer classes that comprise each eligible retail | 14 | | customer class taking service from an electric utility. The | 15 | | Agency's report shall also analyze how the operation of the | 16 | | alternative compliance payment mechanism, any long-term | 17 | | contracts, or other aspects of the applicable renewable | 18 | | portfolio standards impacts the rates of customers of | 19 | | alternative retail electric suppliers. | 20 | | (d) Clean coal portfolio standard. | 21 | | (1) The procurement plans shall include electricity | 22 | | generated using clean coal. Each utility shall enter into | 23 | | one or more sourcing agreements with the initial clean coal | 24 | | facility, as provided in paragraph (3) of this subsection | 25 | | (d), covering electricity generated by the initial clean | 26 | | coal facility representing at least 5% of each utility's |
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| 1 | | total supply to serve the load of eligible retail customers | 2 | | in 2015 and each year thereafter, as described in paragraph | 3 | | (3) of this subsection (d), subject to the limits specified | 4 | | in paragraph (2) of this subsection (d). It is the goal of | 5 | | the State that by January 1, 2025, 25% of the electricity | 6 | | used in the State shall be generated by cost-effective | 7 | | clean coal facilities. For purposes of this subsection (d), | 8 | | "cost-effective" means that the expenditures pursuant to | 9 | | such sourcing agreements do not cause the limit stated in | 10 | | paragraph (2) of this subsection (d) to be exceeded and do | 11 | | not exceed cost-based benchmarks, which shall be developed | 12 | | to assess all expenditures pursuant to such sourcing | 13 | | agreements covering electricity generated by clean coal | 14 | | facilities, other than the initial clean coal facility, by | 15 | | the procurement administrator, in consultation with the | 16 | | Commission staff, Agency staff, and the procurement | 17 | | monitor and shall be subject to Commission review and | 18 | | approval. | 19 | | A utility party to a sourcing agreement shall | 20 | | immediately retire any emission credits that it receives in | 21 | | connection with the electricity covered by such agreement. | 22 | | Utilities shall maintain adequate records documenting | 23 | | the purchases under the sourcing agreement to comply with | 24 | | this subsection (d) and shall file an accounting with the | 25 | | load forecast that must be filed with the Agency by July 15 | 26 | | of each year, in accordance with subsection (d) of Section |
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| 1 | | 16-111.5 of the Public Utilities Act. | 2 | | A utility shall be deemed to have complied with the | 3 | | clean coal portfolio standard specified in this subsection | 4 | | (d) if the utility enters into a sourcing agreement as | 5 | | required by this subsection (d). | 6 | | (2) For purposes of this subsection (d), the required | 7 | | execution of sourcing agreements with the initial clean | 8 | | coal facility for a particular year shall be measured as a | 9 | | percentage of the actual amount of electricity | 10 | | (megawatt-hours) supplied by the electric utility to | 11 | | eligible retail customers in the planning year ending | 12 | | immediately prior to the agreement's execution. For | 13 | | purposes of this subsection (d), the amount paid per | 14 | | kilowatthour means the total amount paid for electric | 15 | | service expressed on a per kilowatthour basis. For purposes | 16 | | of this subsection (d), the total amount paid for electric | 17 | | service includes without limitation amounts paid for | 18 | | supply, transmission, distribution, surcharges and add-on | 19 | | taxes. | 20 | | Notwithstanding the requirements of this subsection | 21 | | (d), the total amount paid under sourcing agreements with | 22 | | clean coal facilities pursuant to the procurement plan for | 23 | | any given year shall be reduced by an amount necessary to | 24 | | limit the annual estimated average net increase due to the | 25 | | costs of these resources included in the amounts paid by | 26 | | eligible retail customers in connection with electric |
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| 1 | | service to: | 2 | | (A) in 2010, no more than 0.5% of the amount paid | 3 | | per kilowatthour by those customers during the year | 4 | | ending May 31, 2009; | 5 | | (B) in 2011, the greater of an additional 0.5% of | 6 | | the amount paid per kilowatthour by those customers | 7 | | during the year ending May 31, 2010 or 1% of the amount | 8 | | paid per kilowatthour by those customers during the | 9 | | year ending May 31, 2009; | 10 | | (C) in 2012, the greater of an additional 0.5% of | 11 | | the amount paid per kilowatthour by those customers | 12 | | during the year ending May 31, 2011 or 1.5% of the | 13 | | amount paid per kilowatthour by those customers during | 14 | | the year ending May 31, 2009; | 15 | | (D) in 2013, the greater of an additional 0.5% of | 16 | | the amount paid per kilowatthour by those customers | 17 | | during the year ending May 31, 2012 or 2% of the amount | 18 | | paid per kilowatthour by those customers during the | 19 | | year ending May 31, 2009; and | 20 | | (E) thereafter, the total amount paid under | 21 | | sourcing agreements with clean coal facilities | 22 | | pursuant to the procurement plan for any single year | 23 | | shall be reduced by an amount necessary to limit the | 24 | | estimated average net increase due to the cost of these | 25 | | resources included in the amounts paid by eligible | 26 | | retail customers in connection with electric service |
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| 1 | | to no more than the greater of (i) 2.015% of the amount | 2 | | paid per kilowatthour by those customers during the | 3 | | year ending May 31, 2009 or (ii) the incremental amount | 4 | | per kilowatthour paid for these resources in 2013 , in | 5 | | each of cases (i) and (ii) reduced during the period | 6 | | November 1, 2016 through the termination of the | 7 | | transitional reliability capacity credit program | 8 | | provided for in subsection (d-10) of this Section, by | 9 | | 0.114 cents per kilowatthour . These requirements may | 10 | | be altered only as provided by statute. | 11 | | No later than June 30, 2015, the Commission shall | 12 | | review the limitation on the total amount paid under | 13 | | sourcing agreements, if any, with clean coal facilities | 14 | | pursuant to this subsection (d) and report to the General | 15 | | Assembly its findings as to whether that limitation unduly | 16 | | constrains the amount of electricity generated by | 17 | | cost-effective clean coal facilities that is covered by | 18 | | sourcing agreements. | 19 | | (3) Initial clean coal facility. In order to promote | 20 | | development of clean coal facilities in Illinois, each | 21 | | electric utility subject to this Section shall execute a | 22 | | sourcing agreement to source electricity from a proposed | 23 | | clean coal facility in Illinois (the "initial clean coal | 24 | | facility") that will have a nameplate capacity of at least | 25 | | 500 MW when commercial operation commences, that has a | 26 | | final Clean Air Act permit on the effective date of this |
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| 1 | | amendatory Act of the 95th General Assembly, and that will | 2 | | meet the definition of clean coal facility in Section 1-10 | 3 | | of this Act when commercial operation commences. The | 4 | | sourcing agreements with this initial clean coal facility | 5 | | shall be subject to both approval of the initial clean coal | 6 | | facility by the General Assembly and satisfaction of the | 7 | | requirements of paragraph (4) of this subsection (d) and | 8 | | shall be executed within 90 days after any such approval by | 9 | | the General Assembly. The Agency and the Commission shall | 10 | | have authority to inspect all books and records associated | 11 | | with the initial clean coal facility during the term of | 12 | | such a sourcing agreement. A utility's sourcing agreement | 13 | | for electricity produced by the initial clean coal facility | 14 | | shall include: | 15 | | (A) a formula contractual price (the "contract | 16 | | price") approved pursuant to paragraph (4) of this | 17 | | subsection (d), which shall: | 18 | | (i) be determined using a cost of service | 19 | | methodology employing either a level or deferred | 20 | | capital recovery component, based on a capital | 21 | | structure consisting of 45% equity and 55% debt, | 22 | | and a return on equity as may be approved by the | 23 | | Federal Energy Regulatory Commission, which in any | 24 | | case may not exceed the lower of 11.5% or the rate | 25 | | of return approved by the General Assembly | 26 | | pursuant to paragraph (4) of this subsection (d); |
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| 1 | | and | 2 | | (ii) provide that all miscellaneous net | 3 | | revenue, including but not limited to net revenue | 4 | | from the sale of emission allowances, if any, | 5 | | substitute natural gas, if any, grants or other | 6 | | support provided by the State of Illinois or the | 7 | | United States Government, firm transmission | 8 | | rights, if any, by-products produced by the | 9 | | facility, energy or capacity derived from the | 10 | | facility and not covered by a sourcing agreement | 11 | | pursuant to paragraph (3) of this subsection (d) or | 12 | | item (5) of subsection (d) of Section 16-115 of the | 13 | | Public Utilities Act, whether generated from the | 14 | | synthesis gas derived from coal, from SNG, or from | 15 | | natural gas, shall be credited against the revenue | 16 | | requirement for this initial clean coal facility; | 17 | | (B) power purchase provisions, which shall: | 18 | | (i) provide that the utility party to such | 19 | | sourcing agreement shall pay the contract price | 20 | | for electricity delivered under such sourcing | 21 | | agreement; | 22 | | (ii) require delivery of electricity to the | 23 | | regional transmission organization market of the | 24 | | utility that is party to such sourcing agreement; | 25 | | (iii) require the utility party to such | 26 | | sourcing agreement to buy from the initial clean |
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| 1 | | coal facility in each hour an amount of energy | 2 | | equal to all clean coal energy made available from | 3 | | the initial clean coal facility during such hour | 4 | | times a fraction, the numerator of which is such | 5 | | utility's retail market sales of electricity | 6 | | (expressed in kilowatthours sold) in the State | 7 | | during the prior calendar month and the | 8 | | denominator of which is the total retail market | 9 | | sales of electricity (expressed in kilowatthours | 10 | | sold) in the State by utilities during such prior | 11 | | month and the sales of electricity (expressed in | 12 | | kilowatthours sold) in the State by alternative | 13 | | retail electric suppliers during such prior month | 14 | | that are subject to the requirements of this | 15 | | subsection (d) and paragraph (5) of subsection (d) | 16 | | of Section 16-115 of the Public Utilities Act, | 17 | | provided that the amount purchased by the utility | 18 | | in any year will be limited by paragraph (2) of | 19 | | this subsection (d); and | 20 | | (iv) be considered pre-existing contracts in | 21 | | such utility's procurement plans for eligible | 22 | | retail customers; | 23 | | (C) contract for differences provisions, which | 24 | | shall: | 25 | | (i) require the utility party to such sourcing | 26 | | agreement to contract with the initial clean coal |
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| 1 | | facility in each hour with respect to an amount of | 2 | | energy equal to all clean coal energy made | 3 | | available from the initial clean coal facility | 4 | | during such hour times a fraction, the numerator of | 5 | | which is such utility's retail market sales of | 6 | | electricity (expressed in kilowatthours sold) in | 7 | | the utility's service territory in the State | 8 | | during the prior calendar month and the | 9 | | denominator of which is the total retail market | 10 | | sales of electricity (expressed in kilowatthours | 11 | | sold) in the State by utilities during such prior | 12 | | month and the sales of electricity (expressed in | 13 | | kilowatthours sold) in the State by alternative | 14 | | retail electric suppliers during such prior month | 15 | | that are subject to the requirements of this | 16 | | subsection (d) and paragraph (5) of subsection (d) | 17 | | of Section 16-115 of the Public Utilities Act, | 18 | | provided that the amount paid by the utility in any | 19 | | year will be limited by paragraph (2) of this | 20 | | subsection (d); | 21 | | (ii) provide that the utility's payment | 22 | | obligation in respect of the quantity of | 23 | | electricity determined pursuant to the preceding | 24 | | clause (i) shall be limited to an amount equal to | 25 | | (1) the difference between the contract price | 26 | | determined pursuant to subparagraph (A) of |
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| 1 | | paragraph (3) of this subsection (d) and the | 2 | | day-ahead price for electricity delivered to the | 3 | | regional transmission organization market of the | 4 | | utility that is party to such sourcing agreement | 5 | | (or any successor delivery point at which such | 6 | | utility's supply obligations are financially | 7 | | settled on an hourly basis) (the "reference | 8 | | price") on the day preceding the day on which the | 9 | | electricity is delivered to the initial clean coal | 10 | | facility busbar, multiplied by (2) the quantity of | 11 | | electricity determined pursuant to the preceding | 12 | | clause (i); and | 13 | | (iii) not require the utility to take physical | 14 | | delivery of the electricity produced by the | 15 | | facility; | 16 | | (D) general provisions, which shall: | 17 | | (i) specify a term of no more than 30 years, | 18 | | commencing on the commercial operation date of the | 19 | | facility; | 20 | | (ii) provide that utilities shall maintain | 21 | | adequate records documenting purchases under the | 22 | | sourcing agreements entered into to comply with | 23 | | this subsection (d) and shall file an accounting | 24 | | with the load forecast that must be filed with the | 25 | | Agency by July 15 of each year, in accordance with | 26 | | subsection (d) of Section 16-111.5 of the Public |
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| 1 | | Utilities Act; | 2 | | (iii) provide that all costs associated with | 3 | | the initial clean coal facility will be | 4 | | periodically reported to the Federal Energy | 5 | | Regulatory Commission and to purchasers in | 6 | | accordance with applicable laws governing | 7 | | cost-based wholesale power contracts; | 8 | | (iv) permit the Illinois Power Agency to | 9 | | assume ownership of the initial clean coal | 10 | | facility, without monetary consideration and | 11 | | otherwise on reasonable terms acceptable to the | 12 | | Agency, if the Agency so requests no less than 3 | 13 | | years prior to the end of the stated contract term; | 14 | | (v) require the owner of the initial clean coal | 15 | | facility to provide documentation to the | 16 | | Commission each year, starting in the facility's | 17 | | first year of commercial operation, accurately | 18 | | reporting the quantity of carbon emissions from | 19 | | the facility that have been captured and | 20 | | sequestered and report any quantities of carbon | 21 | | released from the site or sites at which carbon | 22 | | emissions were sequestered in prior years, based | 23 | | on continuous monitoring of such sites. If, in any | 24 | | year after the first year of commercial operation, | 25 | | the owner of the facility fails to demonstrate that | 26 | | the initial clean coal facility captured and |
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| 1 | | sequestered at least 50% of the total carbon | 2 | | emissions that the facility would otherwise emit | 3 | | or that sequestration of emissions from prior | 4 | | years has failed, resulting in the release of | 5 | | carbon dioxide into the atmosphere, the owner of | 6 | | the facility must offset excess emissions. Any | 7 | | such carbon offsets must be permanent, additional, | 8 | | verifiable, real, located within the State of | 9 | | Illinois, and legally and practicably enforceable. | 10 | | The cost of such offsets for the facility that are | 11 | | not recoverable shall not exceed $15 million in any | 12 | | given year. No costs of any such purchases of | 13 | | carbon offsets may be recovered from a utility or | 14 | | its customers. All carbon offsets purchased for | 15 | | this purpose and any carbon emission credits | 16 | | associated with sequestration of carbon from the | 17 | | facility must be permanently retired. The initial | 18 | | clean coal facility shall not forfeit its | 19 | | designation as a clean coal facility if the | 20 | | facility fails to fully comply with the applicable | 21 | | carbon sequestration requirements in any given | 22 | | year, provided the requisite offsets are | 23 | | purchased. However, the Attorney General, on | 24 | | behalf of the People of the State of Illinois, may | 25 | | specifically enforce the facility's sequestration | 26 | | requirement and the other terms of this contract |
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| 1 | | provision. Compliance with the sequestration | 2 | | requirements and offset purchase requirements | 3 | | specified in paragraph (3) of this subsection (d) | 4 | | shall be reviewed annually by an independent | 5 | | expert retained by the owner of the initial clean | 6 | | coal facility, with the advance written approval | 7 | | of the Attorney General. The Commission may, in the | 8 | | course of the review specified in item (vii), | 9 | | reduce the allowable return on equity for the | 10 | | facility if the facility wilfully fails to comply | 11 | | with the carbon capture and sequestration | 12 | | requirements set forth in this item (v); | 13 | | (vi) include limits on, and accordingly | 14 | | provide for modification of, the amount the | 15 | | utility is required to source under the sourcing | 16 | | agreement consistent with paragraph (2) of this | 17 | | subsection (d); | 18 | | (vii) require Commission review: (1) to | 19 | | determine the justness, reasonableness, and | 20 | | prudence of the inputs to the formula referenced in | 21 | | subparagraphs (A)(i) through (A)(iii) of paragraph | 22 | | (3) of this subsection (d), prior to an adjustment | 23 | | in those inputs including, without limitation, the | 24 | | capital structure and return on equity, fuel | 25 | | costs, and other operations and maintenance costs | 26 | | and (2) to approve the costs to be passed through |
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| 1 | | to customers under the sourcing agreement by which | 2 | | the utility satisfies its statutory obligations. | 3 | | Commission review shall occur no less than every 3 | 4 | | years, regardless of whether any adjustments have | 5 | | been proposed, and shall be completed within 9 | 6 | | months; | 7 | | (viii) limit the utility's obligation to such | 8 | | amount as the utility is allowed to recover through | 9 | | tariffs filed with the Commission, provided that | 10 | | neither the clean coal facility nor the utility | 11 | | waives any right to assert federal pre-emption or | 12 | | any other argument in response to a purported | 13 | | disallowance of recovery costs; | 14 | | (ix) limit the utility's or alternative retail | 15 | | electric supplier's obligation to incur any | 16 | | liability until such time as the facility is in | 17 | | commercial operation and generating power and | 18 | | energy and such power and energy is being delivered | 19 | | to the facility busbar; | 20 | | (x) provide that the owner or owners of the | 21 | | initial clean coal facility, which is the | 22 | | counterparty to such sourcing agreement, shall | 23 | | have the right from time to time to elect whether | 24 | | the obligations of the utility party thereto shall | 25 | | be governed by the power purchase provisions or the | 26 | | contract for differences provisions; |
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| 1 | | (xi) append documentation showing that the | 2 | | formula rate and contract, insofar as they relate | 3 | | to the power purchase provisions, have been | 4 | | approved by the Federal Energy Regulatory | 5 | | Commission pursuant to Section 205 of the Federal | 6 | | Power Act; | 7 | | (xii) provide that any changes to the terms of | 8 | | the contract, insofar as such changes relate to the | 9 | | power purchase provisions, are subject to review | 10 | | under the public interest standard applied by the | 11 | | Federal Energy Regulatory Commission pursuant to | 12 | | Sections 205 and 206 of the Federal Power Act; and | 13 | | (xiii) conform with customary lender | 14 | | requirements in power purchase agreements used as | 15 | | the basis for financing non-utility generators. | 16 | | (4) Effective date of sourcing agreements with the | 17 | | initial clean coal facility. | 18 | | Any proposed sourcing agreement with the initial clean | 19 | | coal facility shall not become effective unless the | 20 | | following reports are prepared and submitted and | 21 | | authorizations and approvals obtained: | 22 | | (i) Facility cost report. The owner of the initial | 23 | | clean coal facility shall submit to the Commission, the | 24 | | Agency, and the General Assembly a front-end | 25 | | engineering and design study, a facility cost report, | 26 | | method of financing (including but not limited to |
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| 1 | | structure and associated costs), and an operating and | 2 | | maintenance cost quote for the facility (collectively | 3 | | "facility cost report"), which shall be prepared in | 4 | | accordance with the requirements of this paragraph (4) | 5 | | of subsection (d) of this Section, and shall provide | 6 | | the Commission and the Agency access to the work | 7 | | papers, relied upon documents, and any other backup | 8 | | documentation related to the facility cost report. | 9 | | (ii) Commission report. Within 6 months following | 10 | | receipt of the facility cost report, the Commission, in | 11 | | consultation with the Agency, shall submit a report to | 12 | | the General Assembly setting forth its analysis of the | 13 | | facility cost report. Such report shall include, but | 14 | | not be limited to, a comparison of the costs associated | 15 | | with electricity generated by the initial clean coal | 16 | | facility to the costs associated with electricity | 17 | | generated by other types of generation facilities, an | 18 | | analysis of the rate impacts on residential and small | 19 | | business customers over the life of the sourcing | 20 | | agreements, and an analysis of the likelihood that the | 21 | | initial clean coal facility will commence commercial | 22 | | operation by and be delivering power to the facility's | 23 | | busbar by 2016. To assist in the preparation of its | 24 | | report, the Commission, in consultation with the | 25 | | Agency, may hire one or more experts or consultants, | 26 | | the costs of which shall be paid for by the owner of |
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| 1 | | the initial clean coal facility. The Commission and | 2 | | Agency may begin the process of selecting such experts | 3 | | or consultants prior to receipt of the facility cost | 4 | | report. | 5 | | (iii) General Assembly approval. The proposed | 6 | | sourcing agreements shall not take effect unless, | 7 | | based on the facility cost report and the Commission's | 8 | | report, the General Assembly enacts authorizing | 9 | | legislation approving (A) the projected price, stated | 10 | | in cents per kilowatthour, to be charged for | 11 | | electricity generated by the initial clean coal | 12 | | facility, (B) the projected impact on residential and | 13 | | small business customers' bills over the life of the | 14 | | sourcing agreements, and (C) the maximum allowable | 15 | | return on equity for the project; and | 16 | | (iv) Commission review. If the General Assembly | 17 | | enacts authorizing legislation pursuant to | 18 | | subparagraph (iii) approving a sourcing agreement, the | 19 | | Commission shall, within 90 days of such enactment, | 20 | | complete a review of such sourcing agreement. During | 21 | | such time period, the Commission shall implement any | 22 | | directive of the General Assembly, resolve any | 23 | | disputes between the parties to the sourcing agreement | 24 | | concerning the terms of such agreement, approve the | 25 | | form of such agreement, and issue an order finding that | 26 | | the 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 capitalized financing costs | 4 | | during construction,
taxes, insurance, and other | 5 | | owner's costs, and an assumed escalation in materials | 6 | | and labor beyond the date as of which the construction | 7 | | 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. The delivered fuel | 21 | | cost estimate will be provided by a recognized third | 22 | | party expert or experts in the fuel and transportation | 23 | | industries. The balance of the operating and | 24 | | maintenance cost quote, excluding delivered fuel | 25 | | costs, will be developed based on the inputs provided | 26 | | by duly licensed engineering and construction firms |
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| 1 | | performing the construction cost quote, potential | 2 | | vendors under long-term service agreements and plant | 3 | | operating agreements, or recognized third party plant | 4 | | operator or operators. | 5 | | The operating and maintenance cost quote | 6 | | (including the cost of the front end engineering and | 7 | | design study) shall be expressed in nominal dollars as | 8 | | of the date that the quote is prepared and shall | 9 | | include taxes, insurance, and other owner's costs, and | 10 | | an assumed escalation in materials and labor beyond the | 11 | | date as of which the operating and maintenance cost | 12 | | quote is expressed. | 13 | | (D) The facility cost report shall also include an | 14 | | analysis of the initial clean coal facility's ability | 15 | | to deliver power and energy into the applicable | 16 | | regional transmission organization markets and an | 17 | | analysis of the expected capacity factor for the | 18 | | initial clean coal facility. | 19 | | (E) Amounts paid to third parties unrelated to the | 20 | | owner or owners of the initial clean coal facility to | 21 | | prepare the core plant construction cost quote, | 22 | | including the front end engineering and design study, | 23 | | and the operating and maintenance cost quote will be | 24 | | reimbursed through Coal Development Bonds. | 25 | | (5) Re-powering and retrofitting coal-fired power | 26 | | plants previously owned by Illinois utilities to qualify as |
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| 1 | | clean coal facilities. During the 2009 procurement | 2 | | planning process and thereafter, the Agency and the | 3 | | Commission shall consider sourcing agreements covering | 4 | | electricity generated by power plants that were previously | 5 | | owned by Illinois utilities and that have been or will be | 6 | | converted into clean coal facilities, as defined by Section | 7 | | 1-10 of this Act. Pursuant to such procurement planning | 8 | | process, the owners of such facilities may propose to the | 9 | | Agency sourcing agreements with utilities and alternative | 10 | | retail electric suppliers required to comply with | 11 | | subsection (d) of this Section and item (5) of subsection | 12 | | (d) of Section 16-115 of the Public Utilities Act, covering | 13 | | electricity generated by such facilities. In the case of | 14 | | sourcing agreements that are power purchase agreements, | 15 | | the contract price for electricity sales shall be | 16 | | established on a cost of service basis. In the case of | 17 | | sourcing agreements that are contracts for differences, | 18 | | the contract price from which the reference price is | 19 | | subtracted shall be established on a cost of service basis. | 20 | | The Agency and the Commission may approve any such utility | 21 | | sourcing agreements that do not exceed cost-based | 22 | | benchmarks developed by the procurement administrator, in | 23 | | consultation with the Commission staff, Agency staff and | 24 | | the procurement monitor, subject to Commission review and | 25 | | approval. The Commission shall have authority to inspect | 26 | | all books and records associated with these clean coal |
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| 1 | | facilities during the term of any such contract. | 2 | | (6) Costs incurred under this subsection (d) or | 3 | | pursuant to a contract entered into under this subsection | 4 | | (d) shall be deemed prudently incurred and reasonable in | 5 | | amount and the electric utility shall be entitled to full | 6 | | cost recovery pursuant to the tariffs filed with the | 7 | | Commission. | 8 | | (d-10) Transitional reliability capacity credit program. | 9 | | (1) Beginning November 1, 2016 and ending upon the | 10 | | termination of the transitional reliability capacity | 11 | | credit program provided for in this subsection (d-10), each | 12 | | electric utility subject to subsection (a) of this Section | 13 | | shall impose a transitional electric generation | 14 | | reliability support charge of 0.114 cents per kilowatthour | 15 | | on each kilowatthour of electricity delivered to its | 16 | | delivery services customers within its service territory. | 17 | | The electric utility shall include this charge in its | 18 | | delivery services tariff authorized by Section 16-108 of | 19 | | the Public Utilities Act. The electric utility shall | 20 | | maintain a reserve fund to hold all moneys collected | 21 | | through application of the transitional electric | 22 | | generation reliability support charge and not used for the | 23 | | purchase of transitional reliability capacity credits in | 24 | | accordance with subsection (d-10) of this Section until the | 25 | | electric utility is authorized to refund the balance, if | 26 | | any, of moneys in the reserve fund to its retail customers |
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| 1 | | in accordance with subsection (d-10). The electric | 2 | | utility's administrative costs of billing, collecting, and | 3 | | accounting for the transitional electric generation | 4 | | reliability support charge shall be deemed prudently | 5 | | incurred and reasonable in amount and the electric utility | 6 | | shall be entitled to full cost recovery pursuant to the | 7 | | tariff filed with the Commission. | 8 | | (2) Beginning December 1, 2016, and continuing until | 9 | | the transitional reliability capacity credit program is | 10 | | terminated in accordance with this subsection (d-10), each | 11 | | electric utility subject to subsection (a) of this Section | 12 | | shall purchase transitional reliability capacity credits | 13 | | in accordance with this subsection (d-10), but not to | 14 | | exceed the amount of transitional reliability capacity | 15 | | credits that can be purchased with the revenues collected | 16 | | by the electric utility through the transitional electric | 17 | | generation reliability support charge, as provided in this | 18 | | subsection (d-10). The electric utilities shall purchase | 19 | | transitional reliability capacity credits in procurement | 20 | | events conducted by the Agency as provided in this | 21 | | subsection (d-10). | 22 | | (3) A transitional reliability capacity credit shall | 23 | | be equal to one megawatt of electric generating capacity of | 24 | | an eligible electric generating unit, as determined in | 25 | | accordance with paragraph (5) of this subsection (d-10), | 26 | | for one day. The megawatts of electric generating capacity |
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| 1 | | on which transitional reliability capacity credits are | 2 | | based shall be referred to as reliability capacity. A | 3 | | transitional reliability capacity credit shall represent | 4 | | the reliability attributes of one megawatt-day of electric | 5 | | generating capacity of a specified electric generating | 6 | | unit, but shall not represent a right or entitlement to | 7 | | utilize or receive the capacity or energy of the electric | 8 | | generating unit. The electrical capacity of the megawatts | 9 | | of reliability capacity of an electric generating unit | 10 | | which is contracted to provide transitional reliability | 11 | | capacity credits may be sold to an electric utility or to | 12 | | another purchaser located within the geographic boundaries | 13 | | of the regional transmission organization in which the | 14 | | electric generating unit is located, or to an electric | 15 | | utility subject to subsection (a) of this Section located | 16 | | outside such boundaries. The electrical energy produced by | 17 | | megawatts of reliability capacity of an electric | 18 | | generating unit may be sold to any purchaser, regardless of | 19 | | location. A megawatt-day of the reliability capacity of an | 20 | | electric generating unit may be supplied and used only once | 21 | | as a transitional reliability capacity credit. | 22 | | (4) The total number of transitional reliability | 23 | | capacity credits to be purchased, in the aggregate, by the | 24 | | electric utilities subject to subsection (a) of this | 25 | | Section in a month shall be 5,000 multiplied by the number | 26 | | of days in the month; provided, that the total number of |
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| 1 | | transitional reliability capacity credits to be purchased | 2 | | in an annual period (or in a 6-month period in the case of | 3 | | the initial procurement of transitional reliability | 4 | | capacity credits) shall be reduced, to the extent | 5 | | necessary, so that the total estimated dollar obligation of | 6 | | each electric utility for transitional reliability | 7 | | capacity credits for the period shall not exceed the moneys | 8 | | projected to be available from collections of the | 9 | | transitional electric generation reliability support | 10 | | charge plus the balance in the electric utility's reserve | 11 | | fund for transitional electric generation reliability | 12 | | support charge collections, as provided in paragraph (8) of | 13 | | this subsection (d-10). The price of each transitional | 14 | | reliability capacity credit shall be $150 per megawatt-day | 15 | | minus the clearing price in the most recent Midcontinent | 16 | | Independent System Operator, Inc. Planning Resource | 17 | | Auction. Each electric utility that is subject to | 18 | | subsection (a) of this Section shall purchase a fraction of | 19 | | the total reliability capacity credits to be purchased in | 20 | | the month by all electric utilities (prior to taking into | 21 | | account any reduction for an individual electric utility | 22 | | due to a projected insufficiency of funds as hereinabove | 23 | | provided), where such fraction is equal to the electric | 24 | | utility's percentage of megawatt hour deliveries to retail | 25 | | customers in its service area during the calendar year | 26 | | ended December 31 preceding the procurement event to the |
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| 1 | | total megawatt hour deliveries to retail customers by all | 2 | | electric utilities subject to subsection (a) of this | 3 | | Section in their respective service areas during the | 4 | | calendar year ended December 31. | 5 | | (5) To be eligible for selection as a source of | 6 | | transitional reliability capacity credits in a procurement | 7 | | event, an electric generating unit must meet each of the | 8 | | following requirements, as determined by the Agency. Prior | 9 | | to each procurement event, the Agency shall determine the | 10 | | eligibility of each electric generating unit seeking to | 11 | | participate in that procurement event. | 12 | | (A) The electric generating unit is physically | 13 | | located within the service area of an electric utility | 14 | | that served more than 100,000 delivery services | 15 | | customers in Illinois as of December 31, 2015. | 16 | | (B) The electric generating unit utilizes a solid | 17 | | fuel, and the owner of the generating unit commits to | 18 | | maintain an inventory of the fuel equal to at least 20 | 19 | | days supply at the site of the generating unit during | 20 | | the period that the generating unit is providing | 21 | | transitional reliability capacity credits. | 22 | | (C) For the 3 consecutive calendar years ending on | 23 | | December 31 immediately prior to the procurement | 24 | | event, the generating unit achieved an equivalent | 25 | | availability factor of at least 75%. | 26 | | (D) The owner of the electric generating unit |
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| 1 | | certifies (i) that, if the electric generating unit is | 2 | | selected as a supplier of transitional reliability | 3 | | capacity credits, the owner will continue to operate | 4 | | the electric generating unit during the period in which | 5 | | the transitional reliability capacity credits are to | 6 | | be provided, and (ii) that the owner has no reason to | 7 | | believe that the generating unit will be unable to | 8 | | achieve an equivalent availability factor of at least | 9 | | 75% for the period for which transitional reliability | 10 | | capacity credits are to be provided. | 11 | | (E) The owner and the operator (which may be | 12 | | separate entities) of the electric generating unit is | 13 | | or are registered with the North American Electric | 14 | | Reliability Corporation as the generator owner and | 15 | | generator operator for the generating unit and are | 16 | | subject to the North American Electric Reliability | 17 | | Corporation's mandatory reliability standards | 18 | | applicable to generator owners and generator | 19 | | operators, adopted in accordance with Section 215(d) | 20 | | of the Federal Power Act, for the electric generating | 21 | | unit. | 22 | | (F) The electric generating unit is connected to | 23 | | the bulk electric system at an interconnection voltage | 24 | | of at least 100 kilovolts. | 25 | | (G) On and after June 1, 2017, the electric | 26 | | generating unit is located within the geographic |
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| 1 | | boundaries of a regional transmission organization | 2 | | that the Agency determines does not meet the criteria | 3 | | specified in paragraph (9) of this subsection (d-10). | 4 | | This requirement is not applicable to procurement | 5 | | events to procure transitional reliability capacity | 6 | | credits for periods beginning prior to June 1, 2017. | 7 | | (H) For the period to be covered by the procurement | 8 | | event, the electric generating unit has capacity that | 9 | | has not been committed for sale to any purchaser or | 10 | | purchasers located within the geographic boundaries of | 11 | | a regional transmission organization other than the | 12 | | regional transmission organization in which the | 13 | | electric generating unit is located, other than an | 14 | | electric utility subject to subsection (a) of this | 15 | | Section. The owner of the electric generating unit | 16 | | shall commit that if the electric generating unit is | 17 | | selected to provide transitional reliability capacity | 18 | | credits, then during the period covered by the | 19 | | procurement event, the reliability capacity on which | 20 | | the transitional reliability capacity credits are | 21 | | based shall not be contracted for sale or committed to | 22 | | any purchaser, other than an electric utility subject | 23 | | to subsection (a) of this Section, that is located | 24 | | within the geographic boundaries of a regional | 25 | | transmission organization other than the regional | 26 | | transmission organization in which the electric |
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| 1 | | generating unit is physically located. | 2 | | (I) The electric generating unit is not eligible to | 3 | | sell or provide renewable energy credits or zero | 4 | | emission credits. | 5 | | (J) The electric generating unit is not owned by a | 6 | | municipal utility, an electric cooperative, or a group | 7 | | or consortium of municipal utilities or electric | 8 | | cooperatives whose end user customers do not pay the | 9 | | transitional electric generation reliability support | 10 | | charge. | 11 | | (K) The owner of the electric generating unit | 12 | | commits to pay any fees assessed by the Agency to | 13 | | recover the Agency's costs of conducting the | 14 | | procurement event and related activities, as provided | 15 | | in subparagraph (C) of paragraph (7) of this subsection | 16 | | (d-10). | 17 | | (6) On or before October 31, 2016, the Agency shall | 18 | | conduct a procurement event for the procurement of | 19 | | transitional reliability capacity credits by the electric | 20 | | utilities for the period December 1, 2016 through May 31, | 21 | | 2017. On or before March 31, 2017 and on or before March 31 | 22 | | of each year thereafter until the termination of the | 23 | | transitional reliability capacity credit program, the | 24 | | Agency shall conduct a procurement event for the | 25 | | procurement of transitional reliability capacity credits | 26 | | by the electric utilities for the period beginning the |
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| 1 | | following June 1 and ending on May 31 of the following | 2 | | calendar year. The Agency is authorized to retain one or | 3 | | more third-party consultants or contractors to assist the | 4 | | Agency in conducting each procurement event and related | 5 | | activities required by this subsection (d-10). At least 30 | 6 | | days prior to the date of each procurement event, the | 7 | | Agency shall: | 8 | | (A) announce the date of the procurement event and | 9 | | the period for which transitional reliability capacity | 10 | | credits will be procured; | 11 | | (B) receive expressions of interest from owners of | 12 | | electric generating units that their electric | 13 | | generating units be selected as providers of | 14 | | transitional reliability capacity credits in the | 15 | | procurement event, which expressions of interest shall | 16 | | include (i) a statement of the electric generating unit | 17 | | or units and the amount of transitional reliability | 18 | | capacity credits from each electric generating unit | 19 | | that the owner intends to offer for selection in the | 20 | | procurement event, and (ii) information demonstrating | 21 | | that each electric generating unit meets the | 22 | | eligibility requirements for selection specified in | 23 | | paragraph (5) of this subsection (d-10), with the | 24 | | information to be submitted to the Agency on such forms | 25 | | and through such processes as established by the | 26 | | Agency; |
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| 1 | | (C) request and obtain from each electric utility | 2 | | (i) a forecast of the electric utility's kilowatthour | 3 | | deliveries of electricity to its retail customers in | 4 | | its service area during the period to be covered by the | 5 | | procurement event and (ii) the estimated balance in the | 6 | | electric utility's reserve fund for transitional | 7 | | electric generation reliability support charge | 8 | | collections, as of the start of the period to be | 9 | | covered by the procurement event; provided, that for | 10 | | purposes of this subparagraph (C), the Agency may use | 11 | | the load forecast of an electric utility for the period | 12 | | to be covered by the procurement event that the Agency | 13 | | obtained in connection with the preparation of a | 14 | | procurement plan pursuant to subsection (a) of this | 15 | | Section; | 16 | | (D) announce an estimate of the number of | 17 | | transitional reliability capacity credits to be | 18 | | procured by each electric utility in the procurement | 19 | | event, taking into account the electric utilities' | 20 | | forecast of electricity deliveries, the amounts of the | 21 | | transitional electric generation reliability support | 22 | | charge estimated to be
collected by each electric | 23 | | utility during the period beginning one month prior to | 24 | | the start of and ending one month prior to the end of | 25 | | the period to be covered by the procurement event and | 26 | | the estimated balance in the electric utility's |
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| 1 | | reserve fund as of the start of the period to be | 2 | | covered by the procurement event, with the total number | 3 | | of transitional reliability capacity credits to be | 4 | | procured for all electric utilities subject to | 5 | | subsection (a) of this Section not to exceed the | 6 | | transitional reliability capacity credits associated | 7 | | with 5,000 megawatts of reliability capacity for the | 8 | | period to be covered by the procurement event; and | 9 | | (E) notify the owners of all electric generating | 10 | | units seeking to be selected as providers of | 11 | | transitional reliability capacity credits in the | 12 | | procurement event, and the electric utilities, as to | 13 | | which electric generating units the Agency has | 14 | | determined are eligible to be selected as providers of | 15 | | transitional reliability capacity credits in the | 16 | | procurement event. | 17 | | (7) The procurement events for transitional | 18 | | reliability capacity credits shall be conducted as | 19 | | follows: | 20 | | (A) The owner of each electric generating unit that | 21 | | the Agency has determined to be eligible to be selected | 22 | | as a provider of transitional reliability capacity | 23 | | credits shall specify the amount of transitional | 24 | | reliability capacity credits per day that is being | 25 | | offered from the electric generating unit for the | 26 | | period to be covered by the procurement event. The same |
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| 1 | | number of transitional reliability capacity credits | 2 | | being offered from the electric generating unit shall | 3 | | be offered for every day of the entire period to be | 4 | | covered by the procurement event. The owner shall not | 5 | | offer transitional reliability capacity credits from | 6 | | an electric generating unit based on megawatts of | 7 | | capacity of the electric generating unit that have been | 8 | | sold or committed to one or more purchasers, other than | 9 | | an electric utility subject to subsection (a) of this | 10 | | Section, that is located within the geographic | 11 | | boundaries of a regional transmission organization | 12 | | other than the regional transmission organization in | 13 | | which the electric generating unit is physically | 14 | | located. | 15 | | (B) If more transitional reliability capacity | 16 | | credits are offered for purchase by an electric utility | 17 | | than the amount which the Agency has determined should | 18 | | be purchased for the period to be covered by the | 19 | | procurement event, the Agency shall select the | 20 | | electric generating units to provide the transitional | 21 | | reliability capacity credits, and the associated | 22 | | amount of reliability capacity of each electric | 23 | | generating unit, based on the equivalent availability | 24 | | factor achieved by each electric generating unit | 25 | | during the 3 calendar years ended on December 31 | 26 | | preceding the procurement event, with the electric |
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| 1 | | generating units achieving the highest equivalent | 2 | | availability factor in the 3-year period selected | 3 | | first, and so forth, until the required amount of | 4 | | transitional reliability capacity credits is obtained. | 5 | | (C) Costs incurred by the Agency to conduct a | 6 | | procurement event, including the activities of the | 7 | | Agency described in paragraphs (5), (6), and (7) of | 8 | | this subsection (d-10), and including any costs | 9 | | incurred by the Agency to retain consultants or | 10 | | contractors to assist in conducting the procurement | 11 | | event and related activities, shall be recovered by the | 12 | | Agency through fees charged to the owners of electric | 13 | | generating units that are selected in the procurement | 14 | | event as the providers of transition reliability | 15 | | capacity credits to the electric utilities. Any such | 16 | | fees to recover the Agency's costs shall be charged to | 17 | | the owners of the electric generating units on a | 18 | | proportional basis based on the amounts of | 19 | | transitional reliability capacity credits that are to | 20 | | be supplied by each owner's electric generating unit or | 21 | | units. | 22 | | (8) The owner of each electric generating unit selected | 23 | | by the Agency to provide transitional reliability capacity | 24 | | credits to an electric utility, and the electric utility, | 25 | | shall enter into binding contractual arrangements for the | 26 | | provision of and payment for the transitional electric |
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| 1 | | reliability credits, using forms developed by the Agency | 2 | | with consideration of input provided by the electric | 3 | | utilities and interested suppliers. The contractual | 4 | | arrangements shall include the following provisions: | 5 | | (A) The source of moneys to be used to pay for the | 6 | | transitional reliability capacity credits for the | 7 | | period covered by all contracts awarded pursuant to a | 8 | | procurement event shall be (i) the electric utility's | 9 | | collection of transitional electric generation | 10 | | reliability support charges during the period | 11 | | beginning one month prior to the start of, and ending | 12 | | one month prior to the end of, the period covered by | 13 | | the contracts, plus the balance in the electric | 14 | | utility's reserve fund during the period covered by the | 15 | | contracts; and the electric utility shall not be | 16 | | obligated to pay for any transitional reliability | 17 | | capacity credits for which there are insufficient | 18 | | funds from such sources. In the event of a shortfall of | 19 | | funding to pay for all of the contracted transitional | 20 | | reliability capacity credits for an annual period (or | 21 | | 6-month period in the case of the original procurement | 22 | | event), the number of transitional reliability | 23 | | capacity credits for which the electric utility is | 24 | | required to make payment shall be reduced pro rata for | 25 | | each generating unit based on the number of | 26 | | transitional reliability capacity credits contracted |
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| 1 | | for from the generating unit relative to the total | 2 | | number of transitional reliability capacity credits | 3 | | contracted by the electric utility for the period. | 4 | | (B) On or before the 10th day of each month, | 5 | | subject to the limitation set forth in subparagraph | 6 | | (A), the electric utility shall pay the owner of the | 7 | | generating unit for transitional reliability capacity | 8 | | credits in the preceding month, based on the number of | 9 | | days in the preceding month. | 10 | | (9) The program for provision and purchase of | 11 | | transitional reliability capacity credits provided for in | 12 | | this subsection (d-10) and the obligation of electric | 13 | | utilities to purchase transitional reliability capacity | 14 | | credits shall terminate on May 31 next following the date | 15 | | that the Agency determines that each electric utility that | 16 | | on December 31, 2015 provided delivery services to at least | 17 | | 100,000 retail electric customers have become members of a | 18 | | regional transmission organization meeting the following | 19 | | criteria: | 20 | | (A) The regional transmission organization | 21 | | maintains a market for the provision and acquisition of | 22 | | electric generation capacity resources that includes | 23 | | an electric generation capacity auction process that | 24 | | has the following characteristics: (i) a | 25 | | downward-sloping demand curve for electric generation | 26 | | capacity resources; (ii) buyer-side and supplier-side |
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| 1 | | market power mitigation mechanisms sufficient to | 2 | | prevent manipulation of the electric capacity market | 3 | | by both buyers and sellers of electric generation | 4 | | capacity, such as must-offer requirements for electric | 5 | | generation capacity resources, mandatory participation | 6 | | by load-serving entities for all load, structural | 7 | | market power tests based on numbers of suppliers, and | 8 | | minimum and maximum offer price requirements with | 9 | | energy and ancillary services revenue offsets; (iii) a | 10 | | forward term for the base electric generation capacity | 11 | | auction of at least 3 years from the date of each base | 12 | | electric generation capacity auction to the date when | 13 | | the electric generation capacity acquired in the | 14 | | auction is to be provided by the supplier; and (iv) an | 15 | | explicit capacity performance product component | 16 | | designed to drive improved generator reliability (A) | 17 | | that provides incentives to generators to make | 18 | | investments that help ensure that they perform | 19 | | reliably during extreme weather events and (B) that | 20 | | places value upon dependable fuel supplies; and | 21 | | (B) At least 50% of the electric utilities that are | 22 | | members of the regional transmission organization | 23 | | primarily serve retail electricity customers located | 24 | | in states offering retail electricity competition, or | 25 | | the option to choose the customer's electricity | 26 | | supplier, to a majority of the retail customers in the |
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| 1 | | State. | 2 | | Following the termination of the program provided for in | 3 | | this subsection (d-10) and the completion of all contractual | 4 | | arrangements for the provision of and payment for transitional | 5 | | reliability capacity credits, any balance remaining in an | 6 | | electric utility's reserve fund shall be refunded to the | 7 | | electric utility's delivery services customers at the rate of | 8 | | 0.114 cents per kilowatthour until exhausted. | 9 | | (e) The draft procurement plans are subject to public | 10 | | comment, as required by Section 16-111.5 of the Public | 11 | | Utilities Act. | 12 | | (f) The Agency shall submit the final procurement plan to | 13 | | the Commission. The Agency shall revise a procurement plan if | 14 | | the Commission determines that it does not meet the standards | 15 | | set forth in Section 16-111.5 of the Public Utilities Act. | 16 | | (g) The Agency shall assess fees to each affected utility | 17 | | to recover the costs incurred in preparation of the annual | 18 | | procurement plan for the utility. | 19 | | (h) The Agency shall assess fees to each bidder to recover | 20 | | the costs incurred in connection with a competitive procurement | 21 | | process.
| 22 | | (Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11; | 23 | | 97-618, eff. 10-26-11; 97-658, eff. 1-13-12; 97-813, eff. | 24 | | 7-13-12; 98-463, eff. 8-16-13.) | 25 | | Section 10. The Public Utilities Act is amended by changing |
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| 1 | | Sections 16-108 and 16-126.1 as follows:
| 2 | | (220 ILCS 5/16-108)
| 3 | | Sec. 16-108. Recovery of costs associated with the
| 4 | | provision of delivery services and certain other charges . | 5 | | (a) An electric utility shall file a delivery services
| 6 | | tariff with the Commission at least 210 days prior to the date
| 7 | | that it is required to begin offering such services pursuant
to | 8 | | this Act. An electric utility shall provide the components
of | 9 | | delivery services that are subject to the jurisdiction of
the | 10 | | Federal Energy Regulatory Commission at the same prices,
terms | 11 | | and conditions set forth in its applicable tariff as
approved | 12 | | or allowed into effect by that Commission. The
Commission shall | 13 | | otherwise have the authority pursuant to Article IX to review,
| 14 | | approve, and modify the prices, terms and conditions of those
| 15 | | components of delivery services not subject to the
jurisdiction | 16 | | of the Federal Energy Regulatory Commission,
including the | 17 | | authority to determine the extent to which such
delivery | 18 | | services should be offered on an unbundled basis. In making any | 19 | | such
determination the Commission shall consider, at a minimum, | 20 | | the effect of
additional unbundling on (i) the objective of | 21 | | just and reasonable rates, (ii)
electric utility employees, and | 22 | | (iii) the development of competitive markets
for electric | 23 | | energy services in Illinois.
| 24 | | (b) The Commission shall enter an order approving, or
| 25 | | approving as modified, the delivery services tariff no later
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| 1 | | than 30 days prior to the date on which the electric utility
| 2 | | must commence offering such services. The Commission may
| 3 | | subsequently modify such tariff pursuant to this Act.
| 4 | | (c) The electric utility's
tariffs shall define the classes | 5 | | of its customers for purposes
of delivery services charges. | 6 | | Delivery services shall be priced and made
available to all | 7 | | retail customers electing delivery services in each such class
| 8 | | on a nondiscriminatory basis regardless of whether the retail | 9 | | customer chooses
the electric utility, an affiliate of the | 10 | | electric utility, or another entity
as its supplier of electric | 11 | | power and energy. Charges for delivery services
shall be cost | 12 | | based,
and shall allow the electric utility to recover the | 13 | | costs of
providing delivery services through its charges to its
| 14 | | delivery service customers that use the facilities and
services | 15 | | associated with such costs.
Such costs shall include the
costs | 16 | | of owning, operating and maintaining transmission and
| 17 | | distribution facilities. The Commission shall also be
| 18 | | authorized to consider whether, and if so to what extent, the
| 19 | | following costs are appropriately included in the electric
| 20 | | utility's delivery services rates: (i) the costs of that
| 21 | | portion of generation facilities used for the production and
| 22 | | absorption of reactive power in order that retail customers
| 23 | | located in the electric utility's service area can receive
| 24 | | electric power and energy from suppliers other than the
| 25 | | electric utility, and (ii) the costs associated with the use
| 26 | | and redispatch of generation facilities to mitigate
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| 1 | | constraints on the transmission or distribution system in
order | 2 | | that retail customers located in the electric utility's
service | 3 | | area can receive electric power and energy from
suppliers other | 4 | | than the electric utility. Nothing in this
subsection shall be | 5 | | construed as directing the Commission to
allocate any of the | 6 | | costs described in (i) or (ii) that are
found to be | 7 | | appropriately included in the electric utility's
delivery | 8 | | services rates to any particular customer group or
geographic | 9 | | area in setting delivery services rates.
| 10 | | (d) The Commission shall establish charges, terms and
| 11 | | conditions for delivery services that are just and reasonable
| 12 | | and shall take into account customer impacts when establishing
| 13 | | such charges. In establishing charges, terms and conditions
for | 14 | | delivery services, the Commission shall take into account
| 15 | | voltage level differences. A retail customer shall have the
| 16 | | option to request to purchase electric service at any delivery
| 17 | | service voltage reasonably and technically feasible from the
| 18 | | electric facilities serving that customer's premises provided
| 19 | | that there are no significant adverse impacts upon system
| 20 | | reliability or system efficiency. A retail customer shall
also | 21 | | have the option to request to purchase electric service
at any | 22 | | point of delivery that is reasonably and technically
feasible | 23 | | provided that there are no significant adverse
impacts on | 24 | | system reliability or efficiency. Such requests
shall not be | 25 | | unreasonably denied.
| 26 | | (e) Electric utilities shall recover the costs of
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| 1 | | installing, operating or maintaining facilities for the
| 2 | | particular benefit of one or more delivery services customers,
| 3 | | including without limitation any costs incurred in complying
| 4 | | with a customer's request to be served at a different voltage
| 5 | | level, directly from the retail customer or customers for
whose | 6 | | benefit the costs were incurred, to the extent such
costs are | 7 | | not recovered through the charges referred to in
subsections | 8 | | (c) and (d) of this Section.
| 9 | | (f) An electric utility shall be entitled but not
required | 10 | | to implement transition charges in conjunction with
the | 11 | | offering of delivery services pursuant to Section 16-104.
If an | 12 | | electric utility implements transition charges, it shall | 13 | | implement such
charges for all delivery services customers and | 14 | | for all customers described in
subsection (h), but shall not | 15 | | implement transition charges for power and
energy that a retail | 16 | | customer takes from cogeneration or self-generation
facilities | 17 | | located on that retail customer's premises, if such facilities | 18 | | meet
the following criteria:
| 19 | | (i) the cogeneration or self-generation facilities | 20 | | serve a single retail
customer and are located on that | 21 | | retail customer's premises (for purposes of
this | 22 | | subparagraph and subparagraph (ii), an industrial or | 23 | | manufacturing retail
customer and a third party contractor | 24 | | that is served by such industrial or
manufacturing customer | 25 | | through such retail customer's own electrical
distribution | 26 | | facilities under the circumstances described in subsection |
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| 1 | | (vi) of
the definition of "alternative retail electric | 2 | | supplier" set forth in Section
16-102, shall be considered | 3 | | a single retail customer);
| 4 | | (ii) the cogeneration or self-generation facilities | 5 | | either (A) are sized
pursuant to generally accepted | 6 | | engineering standards for the retail customer's
electrical | 7 | | load at that premises (taking into account standby or other
| 8 | | reliability considerations related to that retail | 9 | | customer's operations at that
site) or (B) if the facility | 10 | | is a cogeneration facility located on the retail
customer's | 11 | | premises, the retail customer is the thermal host for that | 12 | | facility
and the facility has been designed to meet that | 13 | | retail customer's thermal
energy requirements resulting in | 14 | | electrical output beyond that retail
customer's electrical | 15 | | demand at that premises, comply with the operating and
| 16 | | efficiency standards applicable to "qualifying facilities" | 17 | | specified in title
18 Code of Federal Regulations Section | 18 | | 292.205 as in effect on the effective
date of this | 19 | | amendatory Act of 1999;
| 20 | | (iii) the retail customer on whose premises the | 21 | | facilities are located
either has an exclusive right to | 22 | | receive, and corresponding obligation to pay
for, all of | 23 | | the electrical capacity of the facility, or in the case of | 24 | | a
cogeneration facility that has been designed to meet the | 25 | | retail customer's
thermal energy requirements at that | 26 | | premises, an identified amount of the
electrical capacity |
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| 1 | | of the facility, over a minimum 5-year period; and
| 2 | | (iv) if the cogeneration facility is sized for the
| 3 | | retail customer's thermal load at that premises but exceeds | 4 | | the electrical
load, any sales of excess power or energy | 5 | | are made only at wholesale, are
subject to the jurisdiction | 6 | | of the Federal Energy Regulatory Commission, and
are not | 7 | | for the purpose of circumventing the provisions of this | 8 | | subsection (f).
| 9 | | If a generation facility located at a retail customer's | 10 | | premises does not meet
the above criteria, an electric utility | 11 | | implementing
transition charges shall implement a transition | 12 | | charge until December 31, 2006
for any power and energy taken | 13 | | by such retail customer from such facility as if
such power and | 14 | | energy had been delivered by the electric utility. Provided,
| 15 | | however, that an industrial retail customer that is taking | 16 | | power from a
generation facility that does not meet the above | 17 | | criteria but that is located
on such customer's premises will | 18 | | not be subject to a transition charge for the
power and energy | 19 | | taken by such retail customer from such generation facility if
| 20 | | the facility does not serve any other retail customer and | 21 | | either was installed
on behalf of the customer and for its own | 22 | | use prior to January 1, 1997, or is
both predominantly fueled | 23 | | by byproducts of such customer's manufacturing
process at such | 24 | | premises and sells or offers an average of 300 megawatts or
| 25 | | more of electricity produced from such generation facility into | 26 | | the wholesale
market.
Such charges
shall be calculated as |
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| 1 | | provided in Section
16-102, and shall be collected
on each | 2 | | kilowatt-hour delivered under a
delivery services tariff to a | 3 | | retail customer from the date
the customer first takes delivery | 4 | | services until December 31,
2006 except as provided in | 5 | | subsection (h) of this Section.
Provided, however, that an | 6 | | electric utility, other than an electric utility
providing | 7 | | service to at least 1,000,000 customers in this State on | 8 | | January 1,
1999,
shall be entitled to petition for
entry of an | 9 | | order by the Commission authorizing the electric utility to
| 10 | | implement transition charges for an additional period ending no | 11 | | later than
December 31, 2008. The electric utility shall file | 12 | | its petition with
supporting evidence no earlier than 16 | 13 | | months, and no later than 12 months,
prior to December 31, | 14 | | 2006. The Commission shall hold a hearing on the
electric | 15 | | utility's petition and shall enter its order no later than 8 | 16 | | months
after the petition is filed. The Commission shall | 17 | | determine whether and to
what extent the electric utility shall | 18 | | be authorized to implement transition
charges for an additional | 19 | | period. The Commission may authorize the electric
utility to | 20 | | implement transition charges for some or all of the additional
| 21 | | period, and shall determine the mitigation factors to be used | 22 | | in implementing
such transition charges; provided, that the | 23 | | Commission shall not authorize
mitigation factors less than | 24 | | 110% of those in effect during the 12 months ended
December 31, | 25 | | 2006. In making its determination, the Commission shall | 26 | | consider
the following factors: the necessity to implement |
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| 1 | | transition charges for an
additional period in order to | 2 | | maintain the financial integrity of the electric
utility; the | 3 | | prudence of the electric utility's actions in reducing its | 4 | | costs
since the effective date of this amendatory Act of 1997; | 5 | | the ability of the
electric utility to provide safe, adequate | 6 | | and reliable service to retail
customers in its service area; | 7 | | and the impact on competition of allowing the
electric utility | 8 | | to implement transition charges for the additional period.
| 9 | | (g) The electric utility shall file tariffs that
establish | 10 | | the transition charges to be paid by each class of
customers to | 11 | | the electric utility in conjunction with the
provision of | 12 | | delivery services. The electric utility's tariffs
shall define | 13 | | the classes of its customers for purposes of
calculating | 14 | | transition charges. The electric utility's tariffs
shall | 15 | | provide for the calculation of transition charges on a
| 16 | | customer-specific basis for any retail customer whose average
| 17 | | monthly maximum electrical demand on the electric utility's
| 18 | | system during the 6 months with the customer's highest monthly
| 19 | | maximum electrical demands equals or exceeds 3.0 megawatts for
| 20 | | electric utilities having more than 1,000,000 customers, and
| 21 | | for other electric utilities for any customer that has an
| 22 | | average monthly maximum electrical demand on the electric
| 23 | | utility's system of one megawatt or more, and (A) for which
| 24 | | there exists data on the customer's usage during the 3 years
| 25 | | preceding the date that the customer became eligible to take
| 26 | | delivery services, or (B) for which there does not exist data
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| 1 | | on the customer's usage during the 3 years preceding the date
| 2 | | that the customer became eligible to take delivery services,
if | 3 | | in the electric utility's reasonable judgment there exists
| 4 | | comparable usage information or a sufficient basis to develop
| 5 | | such information, and further provided that the electric
| 6 | | utility can require customers for which an individual
| 7 | | calculation is made to sign contracts that set forth the
| 8 | | transition charges to be paid by the customer to the electric
| 9 | | utility pursuant to the tariff.
| 10 | | (h) An electric utility shall also be entitled to file
| 11 | | tariffs that allow it to collect transition charges from
retail | 12 | | customers in the electric utility's service area that
do not | 13 | | take delivery services but that take electric power or
energy | 14 | | from an alternative retail electric supplier or from an
| 15 | | electric utility other than the electric utility in whose
| 16 | | service area the customer is located. Such charges shall be
| 17 | | calculated, in accordance with the definition of transition
| 18 | | charges in Section 16-102, for the period of time that the
| 19 | | customer would be obligated to pay transition charges if it
| 20 | | were taking delivery services, except that no deduction for
| 21 | | delivery services revenues shall be made in such calculation,
| 22 | | and usage data from the customer's class shall be used where
| 23 | | historical usage data is not available for the individual
| 24 | | customer. The customer shall be obligated to pay such charges
| 25 | | on a lump sum basis on or before the date on which the
customer | 26 | | commences to take service from the alternative retail
electric |
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| 1 | | supplier or other electric utility, provided, that
the electric | 2 | | utility in whose service area the customer is
located shall | 3 | | offer the customer the option of signing a
contract pursuant to | 4 | | which the customer pays such charges
ratably over the period in | 5 | | which the charges would otherwise
have applied.
| 6 | | (i) An electric utility shall be entitled to add to the
| 7 | | bills of delivery services customers charges pursuant to
| 8 | | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | 9 | | and Section
16-114 of this Act, Section 5-5 of the Electricity | 10 | | Infrastructure Maintenance
Fee Law, Section 6-5 of the | 11 | | Renewable Energy, Energy Efficiency, and Coal
Resources | 12 | | Development Law of 1997, and Section 13 of the Energy | 13 | | Assistance Act. Beginning November 1, 2016, an electric utility | 14 | | required to impose the transitional electric generation | 15 | | reliability support charge provided for in subsection (d-10) of | 16 | | Section 1-75 of the Illinois Power Agency Act shall add such | 17 | | charge to the bills of its delivery services customers. The | 18 | | electric utility shall use the collections from imposition of | 19 | | the transitional electric generation reliability support | 20 | | charge to pay for transitional reliability capacity credits in | 21 | | accordance with subsection (d-10) of Section 1-75 of the | 22 | | Illinois Power Agency Act, with any collections in excess of | 23 | | current period payment obligations to be maintained in a | 24 | | reserve fund until the electric utility is authorized to refund | 25 | | the balance, if any, in the reserve fund to its delivery | 26 | | services customers in accordance with subsection (d-10) of |
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| 1 | | Section 1-75 of the Illinois Power Agency Act.
| 2 | | (j) If a retail customer that obtains electric power and
| 3 | | energy from cogeneration or self-generation facilities
| 4 | | installed for its own use on or before January 1, 1997,
| 5 | | subsequently takes service from an alternative retail electric
| 6 | | supplier or an electric utility other than the electric
utility | 7 | | in whose service area the customer is located for any
portion | 8 | | of the customer's electric power and energy
requirements | 9 | | formerly obtained from those facilities (including that amount
| 10 | | purchased from the utility in lieu of such generation and not | 11 | | as standby power
purchases, under a cogeneration displacement | 12 | | tariff in effect as of the
effective date of this amendatory | 13 | | Act of 1997), the
transition charges otherwise applicable | 14 | | pursuant to subsections (f), (g), or
(h) of this Section shall | 15 | | not be applicable
in any year to that portion of the customer's | 16 | | electric power
and energy requirements formerly obtained from | 17 | | those
facilities, provided, that for purposes of this | 18 | | subsection
(j), such portion shall not exceed the average | 19 | | number of
kilowatt-hours per year obtained from the | 20 | | cogeneration or
self-generation facilities during the 3 years | 21 | | prior to the
date on which the customer became eligible for | 22 | | delivery
services, except as provided in subsection (f) of | 23 | | Section
16-110.
| 24 | | (Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)
| 25 | | (220 ILCS 5/16-126.1) |
| | | 09900SB2939sam002 | - 62 - | LRB099 19038 EGJ 49058 a |
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| 1 | | Sec. 16-126.1. Regional transmission organization | 2 | | memberships. The State shall not directly or indirectly | 3 | | prohibit an electric utility that on December 31, 2005 provided | 4 | | electric service to at least 100,000 customers in Illinois from | 5 | | membership in a Federal Energy Regulatory Commission approved | 6 | | regional transmission organization of its choosing. Nothing in | 7 | | this Section limits any authority the Commission otherwise has | 8 | | to regulate that electric utility. This Section ceases to be | 9 | | effective on July 1, 2016 2022 unless extended by the General | 10 | | Assembly by law.
| 11 | | (Source: P.A. 95-481, eff. 8-28-07.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.".
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