Full Text of SB0135 101st General Assembly
SB0135sam003 101ST GENERAL ASSEMBLY | Sen. David Koehler Filed: 4/5/2019
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| 1 | | AMENDMENT TO SENATE BILL 135
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 135, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 1. This Act may be referred to as the Competitive | 6 | | Clean Energy Act. | 7 | | Section 3. Findings. The General Assembly finds the | 8 | | following:
| 9 | | (1) The State of Illinois seeks to be a national leader | 10 | | in promoting electricity generation that emits zero | 11 | | greenhouse gas emissions, consistent with targets set | 12 | | under the Paris Climate Agreement. The State of Illinois | 13 | | has joined 22 states and the territory of Puerto Rico in | 14 | | the U.S. Climate Alliance and should pursue immediate | 15 | | action on policies that will grow out the clean energy | 16 | | sector while minimizing consumer impacts.
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| 1 | | (2) The policy of the State of Illinois should be to | 2 | | adopt electricity sector carbon emission targets aimed at | 3 | | eliminating all carbon emission from our energy supply by | 4 | | 2050, while encouraging job growth and private sector | 5 | | innovation.
| 6 | | (3) The uniform American experience is that | 7 | | competitive markets drive innovation in the electricity | 8 | | sector and that competitive retail electric markets have | 9 | | delivered extraordinary benefits for residential, | 10 | | commercial, and industrial consumers, including tens of | 11 | | billions of dollars in savings as a result of customer | 12 | | choice. Illinois seeks to use these same market principles | 13 | | in its quest to eliminate carbon emissions from its | 14 | | electricity sector. Market-based emissions trading | 15 | | programs have also been able to quickly and efficiently | 16 | | reduce the emission of harmful air pollutants. The United | 17 | | States Environmental Protection Agency's creation of | 18 | | marketable sulfur dioxide and nitrogen oxide emissions | 19 | | credits has been an enormously successful tool for | 20 | | combating acid rain and ground-level ozone.
| 21 | | (4) The State of Illinois has determined that, going | 22 | | forward, every increment of clean electricity has the same | 23 | | value to fighting climate change. Therefore, it is the | 24 | | policy of the State to embrace a technologically inclusive | 25 | | approach to decarbonizing its electricity sector, wherever | 26 | | possible.
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| 1 | | (5) Market solutions incentivize potential developers, | 2 | | innovators, and entrepreneurs to invest in zero carbon | 3 | | resources, and should be embraced. It is the policy of the | 4 | | State of Illinois to continue to promote the development of | 5 | | a competitive clean energy market, with procurement | 6 | | targets, that allows all projects and ideas to compete | 7 | | against one another on a level playing field to deliver the | 8 | | highest value clean energy solutions at the lowest cost to | 9 | | consumers.
| 10 | | (6) The lowest cost path to decarbonization is best | 11 | | identified by providing opportunities for innovation and | 12 | | broad competition among all clean energy resource types. | 13 | | Achieving this State's clean energy goals while protecting | 14 | | consumers and jobs will require harnessing the power of the | 15 | | competitive marketplace to find the fastest, lowest cost, | 16 | | and most effective decarbonization solutions. Illinois | 17 | | energy policy should continue to empower those who choose | 18 | | to pursue competitive energy market opportunities and | 19 | | promote the development of the competitive market to | 20 | | leverage market benefits and enhance consumer access, | 21 | | while lowering electric bills.
| 22 | | (7) The Illinois clean energy market of the future | 23 | | should be structured to compensate existing carbon-free | 24 | | resources for their environmental attributes, as well as | 25 | | allow project financing for, and support the development | 26 | | of, new clean energy resources.
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| 1 | | (8) It is in the public interest to accelerate the | 2 | | procurement of clean energy resources when prices warrant. | 3 | | It is also in the public interest to allow individual | 4 | | consumers, municipalities, and other entities to exceed | 5 | | the portion of carbon-free energy supply mandated by the | 6 | | State through voluntary participation in a clean energy | 7 | | market.
| 8 | | (9) Although technology-specific subsidies can drive | 9 | | clean energy investment, they come at a substantial cost to | 10 | | consumers. Limiting competition between clean energy | 11 | | resources improperly shifts technology, market, and | 12 | | operational risks away from generators and onto taxpayers | 13 | | and consumers. Issuing additional direct subsidies to | 14 | | specific resources or technologies is an impediment to | 15 | | identifying and benefiting from the lowest cost | 16 | | decarbonization solutions and imposes needless costs on | 17 | | electricity consumers in Illinois. Instead, Illinois' | 18 | | policy is to procure the lowest cost environmental | 19 | | attributes from the full range of available carbon-free | 20 | | resources on a fair and competitive basis.
| 21 | | (10) While the State of Illinois acknowledges the value | 22 | | of existing contractual obligations with clean energy | 23 | | resources, the lack of integration between Illinois' | 24 | | renewable portfolio standard, clean coal portfolio | 25 | | standard, zero emissions standard, and energy efficiency | 26 | | portfolio standards causes inefficiencies and hinders |
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| 1 | | cost-effective progress towards Illinois' energy goals. | 2 | | Those programs should be consolidated into a single Clean | 3 | | Attributes Portfolio Standard.
| 4 | | Section 5. The Public Utilities Act is amended by changing | 5 | | Section 16-111.5 and by adding Sections 3-127, 3-128, 3-129, | 6 | | 3-130, and 3-131 as follows: | 7 | | (220 ILCS 5/3-127 new) | 8 | | Sec. 3-127. Clean coal resource. "Clean coal resource" | 9 | | means an electric generating facility that uses primarily coal | 10 | | as a feedstock and that captures and sequesters carbon dioxide | 11 | | emissions or reduces carbon dioxide emissions through enhanced | 12 | | operating efficiency, unit retirement, or fuel source | 13 | | conversion. Clean coal resources that reduce carbon dioxide | 14 | | emissions through enhanced operating efficiency, unit | 15 | | retirement, or fuel source conversion must show evidence of | 16 | | verified reductions in carbon dioxide emissions by comparing | 17 | | annual emissions against a baseline of the carbon dioxide | 18 | | emissions for the effected generating units reported. The | 19 | | baseline shall be calendar year 2015. Reductions of carbon | 20 | | dioxide emissions must be verified by a third party that is a | 21 | | professional engineer licensed by the State of Illinois. | 22 | | (220 ILCS 5/3-128 new) | 23 | | Sec. 3-128. Clean energy attribute credit. "Clean energy |
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| 1 | | attribute credit" means a credit that represents the | 2 | | environmental attributes of one megawatt hour of energy | 3 | | reduction or generation produced from a clean energy resource. | 4 | | (220 ILCS 5/3-129 new) | 5 | | Sec. 3-129. Clean energy resource. "Clean energy resource" | 6 | | means any resource consistent with the definitions of renewable | 7 | | energy resources, clean coal resources, clean coal facility, | 8 | | zero emissions resources, demand-response resources, and | 9 | | energy efficiency resources, as defined in this Act or the | 10 | | Illinois Power Agency Act, and any other resources as | 11 | | identified by the Illinois Power Agency as cost effectively | 12 | | reducing carbon emissions in this State. | 13 | | (220 ILCS 5/3-130 new) | 14 | | Sec. 3-130. New clean energy resource. "New clean energy | 15 | | resource" means a clean energy resource that has not begun | 16 | | operation at the time it contracts to sell clean energy | 17 | | attribute credits at a clean energy attribute credit | 18 | | procurement event. | 19 | | (220 ILCS 5/3-131 new) | 20 | | Sec. 3-131. Social cost of carbon. "Social cost of carbon" | 21 | | means the cost of $16.50 per megawatt hour, which is based on | 22 | | the federal Interagency Working Group on Social Cost of | 23 | | Carbon's price in the August 2016 technical update using a 3% |
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| 1 | | discount rate, adjusted for inflation for each year of the | 2 | | program. Beginning with the delivery year commencing June 1, | 3 | | 2020, the price per megawatt hour shall increase by $1 per | 4 | | megawatt hour and continue to increase by an additional $1 per | 5 | | megawatt hour each delivery year thereafter. | 6 | | (220 ILCS 5/16-111.5) | 7 | | Sec. 16-111.5. Provisions relating to procurement. | 8 | | (a) An electric utility that on December 31, 2005 served at | 9 | | least 100,000 customers in Illinois shall procure power and | 10 | | energy for its eligible retail customers in accordance with the | 11 | | applicable provisions set forth in Section 1-75 of the Illinois | 12 | | Power Agency Act and this Section. Beginning with the delivery | 13 | | year commencing on June 1, 2017, such electric utility shall | 14 | | also procure zero emission credits from zero emission | 15 | | facilities in accordance with the applicable provisions set | 16 | | forth in Section 1-75 of the Illinois Power Agency Act, and, | 17 | | for years beginning on or after June 1, 2017, the utility shall | 18 | | procure renewable energy resources in accordance with the | 19 | | applicable provisions set forth in Section 1-75 of the Illinois | 20 | | Power Agency Act and this Section. A small multi-jurisdictional | 21 | | electric utility that on December 31, 2005 served less than | 22 | | 100,000 customers in Illinois may elect to procure power and | 23 | | energy for all or a portion of its eligible Illinois retail | 24 | | customers in accordance with the applicable provisions set | 25 | | forth in this Section and Section 1-75 of the Illinois Power |
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| 1 | | Agency Act. This Section shall not apply to a small | 2 | | multi-jurisdictional utility until such time as a small | 3 | | multi-jurisdictional utility requests the Illinois Power | 4 | | Agency to prepare a procurement plan for its eligible retail | 5 | | customers. "Eligible retail customers" for the purposes of this | 6 | | Section means those retail customers that purchase power and | 7 | | energy from the electric utility under fixed-price bundled | 8 | | service tariffs, other than those retail customers whose | 9 | | service is declared or deemed competitive under Section 16-113 | 10 | | and those other customer groups specified in this Section, | 11 | | including self-generating customers, customers electing hourly | 12 | | pricing, or those customers who are otherwise ineligible for | 13 | | fixed-price bundled tariff service. For those customers that | 14 | | are excluded from the procurement plan's electric supply | 15 | | service requirements, and the utility shall procure any supply | 16 | | requirements, including capacity, ancillary services, and | 17 | | hourly priced energy, in the applicable markets as needed to | 18 | | serve those customers, provided that the utility may include in | 19 | | its procurement plan load requirements for the load that is | 20 | | associated with those retail customers whose service has been | 21 | | declared or deemed competitive pursuant to Section 16-113 of | 22 | | this Act to the extent that those customers are purchasing | 23 | | power and energy during one of the transition periods | 24 | | identified in subsection (b) of Section 16-113 of this Act. | 25 | | (b) A procurement plan shall be prepared for each electric | 26 | | utility consistent with the applicable requirements of the |
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| 1 | | Illinois Power Agency Act and this Section. For purposes of | 2 | | this Section, Illinois electric utilities that are affiliated | 3 | | by virtue of a common parent company are considered to be a | 4 | | single electric utility. Small multi-jurisdictional utilities | 5 | | may request a procurement plan for a portion of or all of its | 6 | | Illinois load. Each procurement plan shall analyze the | 7 | | projected balance of supply and demand for those retail | 8 | | customers to be included in the plan's electric supply service | 9 | | requirements over a 5-year period, with the first planning year | 10 | | beginning on June 1 of the year following the year in which the | 11 | | plan is filed. The plan shall specifically identify the | 12 | | wholesale products to be procured following plan approval, and | 13 | | shall follow all the requirements set forth in the Public | 14 | | Utilities Act and all applicable State and federal laws, | 15 | | statutes, rules, or regulations, as well as Commission orders. | 16 | | Nothing in this Section precludes consideration of contracts | 17 | | longer than 5 years and related forecast data. Unless specified | 18 | | otherwise in this Section, in the procurement plan or in the | 19 | | implementing tariff, any procurement occurring in accordance | 20 | | with this plan shall be competitively bid through a request for | 21 | | proposals process. Approval and implementation of the | 22 | | procurement plan shall be subject to review and approval by the | 23 | | Commission according to the provisions set forth in this | 24 | | Section. A procurement plan shall include each of the following | 25 | | components: | 26 | | (1) Hourly load analysis. This analysis shall include: |
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| 1 | | (i) multi-year historical analysis of hourly | 2 | | loads; | 3 | | (ii) switching trends and competitive retail | 4 | | market analysis; | 5 | | (iii) known or projected changes to future loads; | 6 | | and | 7 | | (iv) growth forecasts by customer class. | 8 | | (2) Analysis of the impact of any demand side and | 9 | | renewable energy initiatives. This analysis shall include: | 10 | | (i) the impact of demand response programs and | 11 | | energy efficiency programs, both current and | 12 | | projected; for small multi-jurisdictional utilities, | 13 | | the impact of demand response and energy efficiency | 14 | | programs approved pursuant to Section 8-408 of this | 15 | | Act, both current and projected; and | 16 | | (ii) supply side needs that are projected to be | 17 | | offset by purchases of renewable energy resources, if | 18 | | any. | 19 | | (3) A plan for meeting the expected load requirements | 20 | | that will not be met through preexisting contracts. This | 21 | | plan shall include: | 22 | | (i) definitions of the different Illinois retail | 23 | | customer classes for which supply is being purchased; | 24 | | (ii) the proposed mix of demand-response products | 25 | | for which contracts will be executed during the next | 26 | | year. For small multi-jurisdictional electric |
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| 1 | | utilities that on December 31, 2005 served fewer than | 2 | | 100,000 customers in Illinois, these shall be defined | 3 | | as demand-response products offered in an energy | 4 | | efficiency plan approved pursuant to Section 8-408 of | 5 | | this Act. The cost-effective demand-response measures | 6 | | shall be procured whenever the cost is lower than | 7 | | procuring comparable capacity products, provided that | 8 | | such products shall: | 9 | | (A) be procured by a demand-response provider | 10 | | from those retail customers included in the plan's | 11 | | electric supply service requirements; | 12 | | (B) at least satisfy the demand-response | 13 | | requirements of the regional transmission | 14 | | organization market in which the utility's service | 15 | | territory is located, including, but not limited | 16 | | to, any applicable capacity or dispatch | 17 | | requirements; | 18 | | (C) provide for customers' participation in | 19 | | the stream of benefits produced by the | 20 | | demand-response products; | 21 | | (D) provide for reimbursement by the | 22 | | demand-response provider of the utility for any | 23 | | costs incurred as a result of the failure of the | 24 | | supplier of such products to perform its | 25 | | obligations thereunder; and | 26 | | (E) meet the same credit requirements as apply |
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| 1 | | to suppliers of capacity, in the applicable | 2 | | regional transmission organization market; | 3 | | (iii) monthly forecasted system supply | 4 | | requirements, including expected minimum, maximum, and | 5 | | average values for the planning period; | 6 | | (iv) the proposed mix and selection of standard | 7 | | wholesale products for which contracts will be | 8 | | executed during the next year, separately or in | 9 | | combination, to meet that portion of its load | 10 | | requirements not met through pre-existing contracts, | 11 | | including but not limited to monthly 5 x 16 peak period | 12 | | block energy, monthly off-peak wrap energy, monthly 7 x | 13 | | 24 energy, annual 5 x 16 energy, annual off-peak wrap | 14 | | energy, annual 7 x 24 energy, monthly capacity, annual | 15 | | capacity, peak load capacity obligations, capacity | 16 | | purchase plan, and ancillary services; | 17 | | (v) proposed term structures for each wholesale | 18 | | product type included in the proposed procurement plan | 19 | | portfolio of products; and | 20 | | (vi) an assessment of the price risk, load | 21 | | uncertainty, and other factors that are associated | 22 | | with the proposed procurement plan; this assessment, | 23 | | to the extent possible, shall include an analysis of | 24 | | the following factors: contract terms, time frames for | 25 | | securing products or services, fuel costs, weather | 26 | | patterns, transmission costs, market conditions, and |
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| 1 | | the governmental regulatory environment; the proposed | 2 | | procurement plan shall also identify alternatives for | 3 | | those portfolio measures that are identified as having | 4 | | significant price risk. | 5 | | (4) Proposed procedures for balancing loads. The | 6 | | procurement plan shall include, for load requirements | 7 | | included in the procurement plan, the process for (i) | 8 | | hourly balancing of supply and demand and (ii) the criteria | 9 | | for portfolio re-balancing in the event of significant | 10 | | shifts in load. | 11 | | (5) Long-Term Renewable Resources Procurement Plan. | 12 | | The Agency shall prepare a long-term renewable resources | 13 | | procurement plan for the procurement of renewable energy | 14 | | credits under Sections 1-56 and 1-75 of the Illinois Power | 15 | | Agency Act for delivery beginning in the 2017 delivery | 16 | | year. | 17 | | (i) The initial long-term renewable resources | 18 | | procurement plan and all subsequent revisions shall be | 19 | | subject to review and approval by the Commission. For | 20 | | the purposes of this Section, "delivery year" has the | 21 | | same meaning as in Section 1-10 of the Illinois Power | 22 | | Agency Act. For purposes of this Section, "Agency" | 23 | | shall mean the Illinois Power Agency. | 24 | | (ii) The long-term renewable resources planning | 25 | | process shall be conducted as follows: | 26 | | (A) Electric utilities shall provide a range |
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| 1 | | of load forecasts to the Illinois Power Agency | 2 | | within 45 days of the Agency's request for | 3 | | forecasts, which request shall specify the length | 4 | | and conditions for the forecasts including, but | 5 | | not limited to, the quantity of distributed | 6 | | generation expected to be interconnected for each | 7 | | year. | 8 | | (B) The Agency shall publish for comment the | 9 | | initial long-term renewable resources procurement | 10 | | plan no later than 120 days after the effective | 11 | | date of this amendatory Act of the 99th General | 12 | | Assembly and shall review, and may revise, the plan | 13 | | at least every 2 years thereafter. To the extent | 14 | | practicable, the Agency shall review and propose | 15 | | any revisions to the long-term renewable energy | 16 | | resources procurement plan in conjunction with the | 17 | | Agency's other planning and approval processes | 18 | | conducted under this Section. The initial | 19 | | long-term renewable resources procurement plan | 20 | | shall: | 21 | | (aa) Identify the procurement programs and | 22 | | competitive procurement events consistent with | 23 | | the applicable requirements of the Illinois | 24 | | Power Agency Act and shall be designed to | 25 | | achieve the goals set forth in subsection (c) | 26 | | of Section 1-75 of that Act. |
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| 1 | | (bb) Include a schedule for procurements | 2 | | for renewable energy credits from | 3 | | utility-scale wind projects, utility-scale | 4 | | solar projects, and brownfield site | 5 | | photovoltaic projects consistent with | 6 | | subparagraph (G) of paragraph (1) of | 7 | | subsection (c) of Section 1-75 of the Illinois | 8 | | Power Agency Act. | 9 | | (cc) Identify the process whereby the | 10 | | Agency will submit to the Commission for review | 11 | | and approval the proposed contracts to | 12 | | implement the programs required by such plan. | 13 | | Copies of the initial long-term renewable | 14 | | resources procurement plan and all subsequent | 15 | | revisions shall be posted and made publicly | 16 | | available on the Agency's and Commission's | 17 | | websites, and copies shall also be provided to each | 18 | | affected electric utility. An affected utility and | 19 | | other interested parties shall have 45 days | 20 | | following the date of posting to provide comment to | 21 | | the Agency on the initial long-term renewable | 22 | | resources procurement plan and all subsequent | 23 | | revisions. All comments submitted to the Agency | 24 | | shall be specific, supported by data or other | 25 | | detailed analyses, and, if objecting to all or a | 26 | | portion of the procurement plan, accompanied by |
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| 1 | | specific alternative wording or proposals. All | 2 | | comments shall be posted on the Agency's and | 3 | | Commission's websites. During this 45-day comment | 4 | | period, the Agency shall hold at least one public | 5 | | hearing within each utility's service area that is | 6 | | subject to the requirements of this paragraph (5) | 7 | | for the purpose of receiving public comment. | 8 | | Within 21 days following the end of the 45-day | 9 | | review period, the Agency may revise the long-term | 10 | | renewable resources procurement plan based on the | 11 | | comments received and shall file the plan with the | 12 | | Commission for review and approval. | 13 | | (C) Within 14 days after the filing of the | 14 | | initial long-term renewable resources procurement | 15 | | plan or any subsequent revisions, any person | 16 | | objecting to the plan may file an objection with | 17 | | the Commission. Within 21 days after the filing of | 18 | | the plan, the Commission shall determine whether a | 19 | | hearing is necessary. The Commission shall enter | 20 | | its order confirming or modifying the initial | 21 | | long-term renewable resources procurement plan or | 22 | | any subsequent revisions within 120 days after the | 23 | | filing of the plan by the Illinois Power Agency. | 24 | | (D) The Commission shall approve the initial | 25 | | long-term renewable resources procurement plan and | 26 | | any subsequent revisions, including expressly the |
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| 1 | | forecast used in the plan and taking into account | 2 | | that funding will be limited to the amount of | 3 | | revenues actually collected by the utilities, if | 4 | | the Commission determines that the plan will | 5 | | reasonably and prudently accomplish the | 6 | | requirements of Section 1-56 and subsection (c) of | 7 | | Section 1-75 of the Illinois Power Agency Act. The | 8 | | Commission shall also approve the process for the | 9 | | submission, review, and approval of the proposed | 10 | | contracts to procure renewable energy credits or | 11 | | implement the programs authorized by the | 12 | | Commission pursuant to a long-term renewable | 13 | | resources procurement plan approved under this | 14 | | Section. | 15 | | (iii) The Agency or third parties contracted by the | 16 | | Agency shall implement all programs authorized by the | 17 | | Commission in an approved long-term renewable | 18 | | resources procurement plan without further review and | 19 | | approval by the Commission. Third parties shall not | 20 | | begin implementing any programs or receive any payment | 21 | | under this Section until the Commission has approved | 22 | | the contract or contracts under the process authorized | 23 | | by the Commission in item (D) of subparagraph (ii) of | 24 | | paragraph (5) of this subsection (b) and the third | 25 | | party and the Agency or utility, as applicable, have | 26 | | executed the contract. For those renewable energy |
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| 1 | | credits subject to procurement through a competitive | 2 | | bid process under the plan or under the initial forward | 3 | | procurements for wind and solar resources described in | 4 | | subparagraph (G) of paragraph (1) of subsection (c) of | 5 | | Section 1-75 of the Illinois Power Agency Act, the | 6 | | Agency shall follow the procurement process specified | 7 | | in the provisions relating to electricity procurement | 8 | | in subsections (e) through (i) of this Section. | 9 | | (iv) An electric utility shall recover its costs | 10 | | associated with the procurement of renewable energy | 11 | | credits under this Section through an automatic | 12 | | adjustment clause tariff under subsection (k) of | 13 | | Section 16-108 of this Act. A utility shall not be | 14 | | required to advance any payment or pay any amounts | 15 | | under this Section that exceed the actual amount of | 16 | | revenues collected by the utility under paragraph (6) | 17 | | of subsection (c) of Section 1-75 of the Illinois Power | 18 | | Agency Act and subsection (k) of Section 16-108 of this | 19 | | Act, and contracts executed under this Section shall | 20 | | expressly incorporate this limitation. | 21 | | (v) For the public interest, safety, and welfare, | 22 | | the Agency and the Commission may adopt rules to carry | 23 | | out the provisions of this Section on an emergency | 24 | | basis immediately following the effective date of this | 25 | | amendatory Act of the 99th General Assembly. | 26 | | (vi) On or before July 1 of each year, the |
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| 1 | | Commission shall hold an informal hearing for the | 2 | | purpose of receiving comments on the prior year's | 3 | | procurement process and any recommendations for | 4 | | change. | 5 | | (b-5) (1) Notwithstanding any other provision of this Act | 6 | | or the Illinois Power Agency Act to the contrary, the Illinois | 7 | | Power Agency shall, for each electric utility that serves at | 8 | | least 100,000 retail customers in this State, procure contracts | 9 | | for clean energy attribute credits for all of the utility's | 10 | | retail customers located in this State in accordance with this | 11 | | subsection (b-5). Clean energy attribute credits procured | 12 | | under this subsection (b-5) shall not include clean energy | 13 | | attribute credits for customers served by a utility with fewer | 14 | | than 100,000 retail customers, a municipal utility, or an | 15 | | electric cooperative, unless and until the utility with fewer | 16 | | than 100,000 retail customers, the municipal utility, or the | 17 | | electric cooperative voluntarily submits a written request to | 18 | | be included in the procurement process to the Agency, in which | 19 | | case, the Agency shall use its best efforts to accommodate the | 20 | | request, treating the voluntary participant as if it were an | 21 | | electric utility that serves at least 100,000 retail customers | 22 | | in this State for purposes of the procurement. | 23 | | (i) Each utility shall timely submit a clean energy | 24 | | attribute credit plan on an annual basis to the Agency. The | 25 | | utility's clean energy attribute credit plan shall | 26 | | identify the projected volumes of total energy consumption |
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| 1 | | by utility customers for the following 10 delivery years | 2 | | and shall report the number and type of clean energy | 3 | | attribute credits it has secured through contracts for each | 4 | | of the forward 10 delivery years. The utility's clean | 5 | | energy attribute credit plan shall also identify the | 6 | | minimum volume of additional clean energy attribute | 7 | | credits that must be procured to comply with this Act in | 8 | | each of the following 10 delivery years. | 9 | | (ii) Any person may submit to the Agency a bid to | 10 | | purchase clean energy attribute credits at least 90 days | 11 | | prior to any procurement event. The purchase bids shall be | 12 | | effectuated by the Agency. | 13 | | For purposes of this subsection (b-5), "Agency", "zero | 14 | | emission credit", "zero emission facility", "renewable energy | 15 | | credit", and "renewable energy source" have the meanings set | 16 | | forth in the Illinois Power Agency Act. | 17 | | (2) The Agency shall conduct clean energy attribute credit | 18 | | procurement events to procure clean energy attribute credits to | 19 | | satisfy the obligations of this subsection (b-5). This | 20 | | obligation shall commence with the procurement for the delivery | 21 | | year beginning June 1, 2020 and terminate with the delivery | 22 | | year commencing June 1, 2050. | 23 | | The Agency shall conduct one clean energy attribute credit | 24 | | procurement event annually until its obligations under this Act | 25 | | expire. The clean energy attribute credit procurements will | 26 | | secure volumes of clean energy attribute credits from clean |
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| 1 | | energy resources through contracts of one year duration that | 2 | | commence in the delivery year that occurs 3 years after the | 3 | | procurement event. Any owner of a new clean energy resource | 4 | | that secures a contract to sell clean energy attribute credits | 5 | | through a clean energy attribute credit procurement event may | 6 | | elect to extend the term of the contract for up to a total of 7 | 7 | | years at its sole discretion in order to secure project | 8 | | financing for the new clean energy resource. | 9 | | Prior to the delivery year commencing on June 1, 2023, the | 10 | | Agency shall conduct initial clean energy attribute credit | 11 | | procurement events approximately every 6 months to secure clean | 12 | | energy attribute credits for delivery in the delivery years | 13 | | commencing on June 1, 2020, June 1, 2021, and June 1, 2022, and | 14 | | each subsequent delivery year beginning June 1 until the full | 15 | | 3-year forward period is achieved. Contracts resulting from the | 16 | | initial clean energy attribute credit procurement events will | 17 | | be consistent with the terms set forth in this paragraph (2). | 18 | | Owners of clean energy resources are eligible to | 19 | | participate in the clean energy attribute credit procurement | 20 | | events conducted by the Agency pursuant to this subsection | 21 | | (b-5) provided that the clean energy resource meets all | 22 | | applicable requirements established by the Agency, which are to | 23 | | be confirmed by the Illinois Commerce Commission. After the | 24 | | effective date of this amendatory Act of the 101st General | 25 | | Assembly, the Agency shall no longer have separate procurement | 26 | | events for renewable energy credits, zero emissions credits, |
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| 1 | | demand response, or volumes of energy efficiency for energy | 2 | | generated or reduced after June 1, 2020. All renewable energy | 3 | | credits, zero emissions credits, demand response, and volumes | 4 | | of energy efficiency for energy generated or reduced after June | 5 | | 1, 2020 previously procured shall be converted into their | 6 | | equivalent clean energy attribute credits by the Agency and | 7 | | considered as applicable against the annual goals set forth in | 8 | | paragraph (3) of this subsection (b-5). | 9 | | The owner of any clean energy resource that participates in | 10 | | a clean energy attribute credit procurement event conducted | 11 | | under this subsection (b-5) must commit to pay any fees | 12 | | assessed by the Agency to recover the Agency's costs of | 13 | | conducting the procurement events and any related activities. | 14 | | Clean energy attribute credits may be procured from any | 15 | | party that owns a clean energy resource located in this State, | 16 | | including, but not limited to, municipal utilities, electric | 17 | | cooperatives, competitive retailers, consumers, aggregators, | 18 | | and independent power producers.
The results of each clean | 19 | | energy attribute credit procurement event shall be subject to | 20 | | approval by the Commission. Upon Commission approval of the | 21 | | results of a procurement event, each utility shall enter into | 22 | | binding contractual agreements with the winning suppliers. | 23 | | (3) The annual target procurement of clean energy attribute | 24 | | credits shall: (A) be subject to the cost cap set forth in item | 25 | | (ii) of paragraph (5) of this subsection (b-5); (B) be equal to | 26 | | a percentage of the total electricity consumption reported for |
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| 1 | | each electric utility that serves at least 100,000 retail | 2 | | customers in this State; and (C) increase linearly between June | 3 | | 1, 2020 and May 31, 2051 so that by the delivery year beginning | 4 | | June 1, 2050 the Agency will procure clean energy attribute | 5 | | credits in an amount equal to 100% of the total electricity | 6 | | consumption of each electric utility that serves at least | 7 | | 100,000 retail customers in this State. | 8 | | The target volume of clean energy attribute credits to be | 9 | | procured under this Act for a utility that serves at least | 10 | | 100,000 retail customers in the State shall be 80% of total | 11 | | annual consumption for the delivery year beginning June 1, 2020 | 12 | | and increase each year thereafter. | 13 | | All clean energy attribute credits shall be cleared in a | 14 | | competitive auction format such that the lowest price clean | 15 | | energy attribute credits are procured first and at a uniform | 16 | | price, regardless of the technology or age of the clean energy | 17 | | resource that generates the clean energy attribute credit. | 18 | | In addition to the target procurement, the Agency shall | 19 | | procure additional clean energy attribute credits at each | 20 | | procurement event based on a demand curve for clean energy | 21 | | attribute credits developed by the Agency and approved by the | 22 | | Commission that would result in a higher amount of clean energy | 23 | | attribute credits being procured as prices decrease. | 24 | | The Agency shall also procure clean energy attribute | 25 | | credits for any person that submits a qualifying bid to | 26 | | purchase at least 90 days prior to any procurement event. A |
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| 1 | | qualifying purchase bid is a bid to purchase the specified | 2 | | number of clean energy attribute credits for a price greater | 3 | | than the clearing price in that auction for which there is a | 4 | | corresponding qualified seller. | 5 | | (4) Notwithstanding any provision of this subsection | 6 | | (b-5), if determined to be in the public interest, the Agency | 7 | | may, at the Agency's direction or at the direction of the | 8 | | Commission, satisfy the requirements of this subsection (b-5) | 9 | | by procuring clean energy attribute credits volumes under any | 10 | | of the following acquisition alternatives: | 11 | | (i) procure clean energy attribute credits in a | 12 | | combined auction with other states; | 13 | | (ii) procure clean energy attribute credits in a | 14 | | combined auction with any inter-regional, independent | 15 | | entity; or | 16 | | (iii) procure clean energy attribute credits within | 17 | | another centralized auction with a substantially similar | 18 | | auction design determined by the Agency or the Commission | 19 | | to be acceptable under this subsection (b-5). | 20 | | (5) Customer protections. | 21 | | (i) Prices awarded for clean energy attribute credits | 22 | | to satisfy the requirements of paragraph (3) of this | 23 | | subsection (b-5) shall be subject to a price cap, which | 24 | | shall be equal to 1.5 times the social cost of carbon. | 25 | | (ii) The cost to consumers of procuring clean energy | 26 | | attribute credits shall not exceed the sum of the existing |
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| 1 | | cost caps for energy efficiency and demand response, the | 2 | | renewable portfolio standard, the clean coal portfolio | 3 | | standard, and the zero emissions standard. | 4 | | (iii) As part of its annual procurement process, the | 5 | | Agency shall review the cost cap established under item | 6 | | (ii) of this paragraph (5) to determine if it is | 7 | | insufficient to fund the goals of this subsection (b-5). If | 8 | | the Agency determines that the cost cap is likely to | 9 | | prevent the complete funding of the goals in this Section, | 10 | | the Agency shall propose an alternative cost cap, which the | 11 | | Commission shall review and approve to take effect the | 12 | | following delivery year if the Commission finds that the | 13 | | alternative cost cap is a necessary and cost-effective way | 14 | | to achieve the requirements of this subsection (b-5). | 15 | | (iv) Clean energy attribute credits shall be cost | 16 | | effective as a result of following the procedures set forth | 17 | | in this subsection (b-5). | 18 | | (6) Electric utilities subject to the requirements of this | 19 | | subsection (b-5) shall forecast the clean energy attribute | 20 | | credit volume requirements to be covered by the procurement. No | 21 | | later than 45 days after the effective date of this amendatory | 22 | | Act of the 101st General Assembly, each utility shall publish | 23 | | its clean energy attribute credit procurement plan for the | 24 | | delivery year commencing June 1, 2020. The plan shall be | 25 | | consistent with the provisions of this subsection (b-5). | 26 | | Upon publishing of the clean energy attribute credit |
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| 1 | | procurement plans, copies of the plans shall be posted and made | 2 | | publicly available on the Agency's website. All interested | 3 | | parties shall have 10 days following the date of posting to | 4 | | provide comment on the plans. All comments shall be posted to | 5 | | the Agency's website. Following the end of the comment period, | 6 | | but no more than 60 days after the effective date of this | 7 | | amendatory Act of the 101st General Assembly, the Agency shall | 8 | | revise the plans as necessary based on the comments received, | 9 | | and file each clean energy attribute credit procurement plan | 10 | | with the Commission with a projected schedule for the clean | 11 | | energy attribute credit procurement event. | 12 | | If the Commission determines that the plans will result in | 13 | | the procurement of clean energy attribute credits consistent | 14 | | with the requirements of this subsection (b-5), then the | 15 | | Commission shall, after notice and hearing, but no later than | 16 | | 45 days after the Agency filed the plan, approve the plans or | 17 | | approve the plans with modification. Those clean energy | 18 | | attribute credit procurement plans applicable to delivery | 19 | | years commencing after June 1, 2020, shall be published, filed, | 20 | | and approved consistent with the timelines and dates set forth | 21 | | in subsection (d). | 22 | | (7) Notwithstanding anything to the contrary, the Agency | 23 | | and the Commission shall have the authority to take all steps | 24 | | necessary to implement this subsection (b-5) consistent with | 25 | | applicable federal tariffs, and as those tariffs may be | 26 | | changed, replaced, or superseded from time to time. |
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| 1 | | (8) In order to ensure that Illinois meets its long-term | 2 | | carbon-free energy goals, the quantity of clean energy | 3 | | attribute credits procured shall be total utility electricity | 4 | | multiplied by a linearly increasing goal to 100% by 2050. The | 5 | | total procured shall be no less than the sum of nuclear | 6 | | generation in service on January 1, 2019 and the renewable | 7 | | portfolio standard in effect on the effective date of this | 8 | | amendatory Act of the 101st General Assembly. | 9 | | (9) The Agency and Commission shall design, develop, and | 10 | | implement the clean energy attribute credit program in a way | 11 | | that promotes the development of the competitive retail | 12 | | electric market in this State. | 13 | | (10) Notwithstanding anything to the contrary, nothing in | 14 | | this subsection (b-5) shall alter any person's rights or | 15 | | obligations under contracts executed prior to the effective | 16 | | date of this amendatory Act of the 101st General Assembly for | 17 | | the purchase or sale of credits under Illinois' renewable | 18 | | portfolio standard, clean coal portfolio standard, zero | 19 | | emissions standard, or energy efficiency portfolio standard | 20 | | programs, and the quantities procured under such contracts | 21 | | shall be subtracted from the minimum quantity of clean energy | 22 | | attribute credits to be procured on behalf of that utility's | 23 | | customers. | 24 | | (c) The procurement process set forth in Section 1-75 of | 25 | | the Illinois Power Agency Act and subsection (e) of this | 26 | | Section shall be administered by a procurement administrator |
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| 1 | | and monitored by a procurement monitor. | 2 | | (1) The procurement administrator shall: | 3 | | (i) design the final procurement process in | 4 | | accordance with Section 1-75 of the Illinois Power | 5 | | Agency Act and subsection (e) of this Section following | 6 | | Commission approval of the procurement plan; | 7 | | (ii) develop benchmarks in accordance with | 8 | | subsection (e)(3) to be used to evaluate bids; these | 9 | | benchmarks shall be submitted to the Commission for | 10 | | review and approval on a confidential basis prior to | 11 | | the procurement event; | 12 | | (iii) serve as the interface between the electric | 13 | | utility and suppliers; | 14 | | (iv) manage the bidder pre-qualification and | 15 | | registration process; | 16 | | (v) obtain the electric utilities' agreement to | 17 | | the final form of all supply contracts and credit | 18 | | collateral agreements; | 19 | | (vi) administer the request for proposals process; | 20 | | (vii) have the discretion to negotiate to | 21 | | determine whether bidders are willing to lower the | 22 | | price of bids that meet the benchmarks approved by the | 23 | | Commission; any post-bid negotiations with bidders | 24 | | shall be limited to price only and shall be completed | 25 | | within 24 hours after opening the sealed bids and shall | 26 | | be conducted in a fair and unbiased manner; in |
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| 1 | | conducting the negotiations, there shall be no | 2 | | disclosure of any information derived from proposals | 3 | | submitted by competing bidders; if information is | 4 | | disclosed to any bidder, it shall be provided to all | 5 | | competing bidders; | 6 | | (viii) maintain confidentiality of supplier and | 7 | | bidding information in a manner consistent with all | 8 | | applicable laws, rules, regulations, and tariffs; | 9 | | (ix) submit a confidential report to the | 10 | | Commission recommending acceptance or rejection of | 11 | | bids; | 12 | | (x) notify the utility of contract counterparties | 13 | | and contract specifics; and | 14 | | (xi) administer related contingency procurement | 15 | | events. | 16 | | (2) The procurement monitor, who shall be retained by | 17 | | the Commission, shall: | 18 | | (i) monitor interactions among the procurement | 19 | | administrator, suppliers, and utility; | 20 | | (ii) monitor and report to the Commission on the | 21 | | progress of the procurement process; | 22 | | (iii) provide an independent confidential report | 23 | | to the Commission regarding the results of the | 24 | | procurement event; | 25 | | (iv) assess compliance with the procurement plans | 26 | | approved by the Commission for each utility that on |
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| 1 | | December 31, 2005 provided electric service to at least | 2 | | 100,000 customers in Illinois and for each small | 3 | | multi-jurisdictional utility that on December 31, 2005 | 4 | | served less than 100,000 customers in Illinois; | 5 | | (v) preserve the confidentiality of supplier and | 6 | | bidding information in a manner consistent with all | 7 | | applicable laws, rules, regulations, and tariffs; | 8 | | (vi) provide expert advice to the Commission and | 9 | | consult with the procurement administrator regarding | 10 | | issues related to procurement process design, rules, | 11 | | protocols, and policy-related matters; and | 12 | | (vii) consult with the procurement administrator | 13 | | regarding the development and use of benchmark | 14 | | criteria, standard form contracts, credit policies, | 15 | | and bid documents. | 16 | | (d) Except as provided in subsection (j), the planning | 17 | | process shall be conducted as follows: | 18 | | (1) Beginning in 2008, each Illinois utility procuring | 19 | | power pursuant to this Section shall annually provide a | 20 | | range of load forecasts to the Illinois Power Agency by | 21 | | July 15 of each year, or such other date as may be required | 22 | | by the Commission or Agency. The load forecasts shall cover | 23 | | the 5-year procurement planning period for the next | 24 | | procurement plan and shall include hourly data | 25 | | representing a high-load, low-load, and expected-load | 26 | | scenario for the load of those retail customers included in |
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| 1 | | the plan's electric supply service requirements. The | 2 | | utility shall provide supporting data and assumptions for | 3 | | each of the scenarios.
| 4 | | (2) Beginning in 2008, the Illinois Power Agency shall | 5 | | prepare a procurement plan by August 15th of each year, or | 6 | | such other date as may be required by the Commission. The | 7 | | procurement plan shall identify the portfolio of | 8 | | demand-response and power and energy products to be | 9 | | procured. Cost-effective demand-response measures shall be | 10 | | procured as set forth in item (iii) of subsection (b) of | 11 | | this Section. Copies of the procurement plan shall be | 12 | | posted and made publicly available on the Agency's and | 13 | | Commission's websites, and copies shall also be provided to | 14 | | each affected electric utility. An affected utility shall | 15 | | have 30 days following the date of posting to provide | 16 | | comment to the Agency on the procurement plan. Other | 17 | | interested entities also may comment on the procurement | 18 | | plan. All comments submitted to the Agency shall be | 19 | | specific, supported by data or other detailed analyses, | 20 | | and, if objecting to all or a portion of the procurement | 21 | | plan, accompanied by specific alternative wording or | 22 | | proposals. All comments shall be posted on the Agency's and | 23 | | Commission's websites. During this 30-day comment period, | 24 | | the Agency shall hold at least one public hearing within | 25 | | each utility's service area for the purpose of receiving | 26 | | public comment on the procurement plan. Within 14 days |
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| 1 | | following the end of the 30-day review period, the Agency | 2 | | shall revise the procurement plan as necessary based on the | 3 | | comments received and file the procurement plan with the | 4 | | Commission and post the procurement plan on the websites. | 5 | | (3) Within 5 days after the filing of the procurement | 6 | | plan, any person objecting to the procurement plan shall | 7 | | file an objection with the Commission. Within 10 days after | 8 | | the filing, the Commission shall determine whether a | 9 | | hearing is necessary. The Commission shall enter its order | 10 | | confirming or modifying the procurement plan within 90 days | 11 | | after the filing of the procurement plan by the Illinois | 12 | | Power Agency. | 13 | | (4) The Commission shall approve the procurement plan, | 14 | | including expressly the forecast used in the procurement | 15 | | plan, if the Commission determines that it will ensure | 16 | | adequate, reliable, affordable, efficient, and | 17 | | environmentally sustainable electric service at the lowest | 18 | | total cost over time, taking into account any benefits of | 19 | | price stability. | 20 | | (e) The procurement process shall include each of the | 21 | | following components: | 22 | | (1) Solicitation, pre-qualification, and registration | 23 | | of bidders. The procurement administrator shall | 24 | | disseminate information to potential bidders to promote a | 25 | | procurement event, notify potential bidders that the | 26 | | procurement administrator may enter into a post-bid price |
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| 1 | | negotiation with bidders that meet the applicable | 2 | | benchmarks, provide supply requirements, and otherwise | 3 | | explain the competitive procurement process. In addition | 4 | | to such other publication as the procurement administrator | 5 | | determines is appropriate, this information shall be | 6 | | posted on the Illinois Power Agency's and the Commission's | 7 | | websites. The procurement administrator shall also | 8 | | administer the prequalification process, including | 9 | | evaluation of credit worthiness, compliance with | 10 | | procurement rules, and agreement to the standard form | 11 | | contract developed pursuant to paragraph (2) of this | 12 | | subsection (e). The procurement administrator shall then | 13 | | identify and register bidders to participate in the | 14 | | procurement event. | 15 | | (2) Standard contract forms and credit terms and | 16 | | instruments. The procurement administrator, in | 17 | | consultation with the utilities, the Commission, and other | 18 | | interested parties and subject to Commission oversight, | 19 | | shall develop and provide standard contract forms for the | 20 | | supplier contracts that meet generally accepted industry | 21 | | practices. Standard credit terms and instruments that meet | 22 | | generally accepted industry practices shall be similarly | 23 | | developed. The procurement administrator shall make | 24 | | available to the Commission all written comments it | 25 | | receives on the contract forms, credit terms, or | 26 | | instruments. If the procurement administrator cannot reach |
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| 1 | | agreement with the applicable electric utility as to the | 2 | | contract terms and conditions, the procurement | 3 | | administrator must notify the Commission of any disputed | 4 | | terms and the Commission shall resolve the dispute. The | 5 | | terms of the contracts shall not be subject to negotiation | 6 | | by winning bidders, and the bidders must agree to the terms | 7 | | of the contract in advance so that winning bids are | 8 | | selected solely on the basis of price. | 9 | | (3) Establishment of a market-based price benchmark. | 10 | | As part of the development of the procurement process, the | 11 | | procurement administrator, in consultation with the | 12 | | Commission staff, Agency staff, and the procurement | 13 | | monitor, shall establish benchmarks for evaluating the | 14 | | final prices in the contracts for each of the products that | 15 | | will be procured through the procurement process. The | 16 | | benchmarks shall be based on price data for similar | 17 | | products for the same delivery period and same delivery | 18 | | hub, or other delivery hubs after adjusting for that | 19 | | difference. The price benchmarks may also be adjusted to | 20 | | take into account differences between the information | 21 | | reflected in the underlying data sources and the specific | 22 | | products and procurement process being used to procure | 23 | | power for the Illinois utilities. The benchmarks shall be | 24 | | confidential but shall be provided to, and will be subject | 25 | | to Commission review and approval, prior to a procurement | 26 | | event. |
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| 1 | | (4) Request for proposals competitive procurement | 2 | | process. The procurement administrator shall design and | 3 | | issue a request for proposals to supply electricity in | 4 | | accordance with each utility's procurement plan, as | 5 | | approved by the Commission. The request for proposals shall | 6 | | set forth a procedure for sealed, binding commitment | 7 | | bidding with pay-as-bid settlement, and provision for | 8 | | selection of bids on the basis of price. | 9 | | (5) A plan for implementing contingencies in the event | 10 | | of supplier default or failure of the procurement process | 11 | | to fully meet the expected load requirement due to | 12 | | insufficient supplier participation, Commission rejection | 13 | | of results, or any other cause. | 14 | | (i) Event of supplier default: In the event of | 15 | | supplier default, the utility shall review the | 16 | | contract of the defaulting supplier to determine if the | 17 | | amount of supply is 200 megawatts or greater, and if | 18 | | there are more than 60 days remaining of the contract | 19 | | term. If both of these conditions are met, and the | 20 | | default results in termination of the contract, the | 21 | | utility shall immediately notify the Illinois Power | 22 | | Agency that a request for proposals must be issued to | 23 | | procure replacement power, and the procurement | 24 | | administrator shall run an additional procurement | 25 | | event. If the contracted supply of the defaulting | 26 | | supplier is less than 200 megawatts or there are less |
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| 1 | | than 60 days remaining of the contract term, the | 2 | | utility shall procure power and energy from the | 3 | | applicable regional transmission organization market, | 4 | | including ancillary services, capacity, and day-ahead | 5 | | or real time energy, or both, for the duration of the | 6 | | contract term to replace the contracted supply; | 7 | | provided, however, that if a needed product is not | 8 | | available through the regional transmission | 9 | | organization market it shall be purchased from the | 10 | | wholesale market. | 11 | | (ii) Failure of the procurement process to fully | 12 | | meet the expected load requirement: If the procurement | 13 | | process fails to fully meet the expected load | 14 | | requirement due to insufficient supplier participation | 15 | | or due to a Commission rejection of the procurement | 16 | | results, the procurement administrator, the | 17 | | procurement monitor, and the Commission staff shall | 18 | | meet within 10 days to analyze potential causes of low | 19 | | supplier interest or causes for the Commission | 20 | | decision. If changes are identified that would likely | 21 | | result in increased supplier participation, or that | 22 | | would address concerns causing the Commission to | 23 | | reject the results of the prior procurement event, the | 24 | | procurement administrator may implement those changes | 25 | | and rerun the request for proposals process according | 26 | | to a schedule determined by those parties and |
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| 1 | | consistent with Section 1-75 of the Illinois Power | 2 | | Agency Act and this subsection. In any event, a new | 3 | | request for proposals process shall be implemented by | 4 | | the procurement administrator within 90 days after the | 5 | | determination that the procurement process has failed | 6 | | to fully meet the expected load requirement. | 7 | | (iii) In all cases where there is insufficient | 8 | | supply provided under contracts awarded through the | 9 | | procurement process to fully meet the electric | 10 | | utility's load requirement, the utility shall meet the | 11 | | load requirement by procuring power and energy from the | 12 | | applicable regional transmission organization market, | 13 | | including ancillary services, capacity, and day-ahead | 14 | | or real time energy, or both; provided, however, that | 15 | | if a needed product is not available through the | 16 | | regional transmission organization market it shall be | 17 | | purchased from the wholesale market. | 18 | | (6) The procurement process described in this | 19 | | subsection is exempt from the requirements of the Illinois | 20 | | Procurement Code, pursuant to Section 20-10 of that Code. | 21 | | (f) Within 2 business days after opening the sealed bids, | 22 | | the procurement administrator shall submit a confidential | 23 | | report to the Commission. The report shall contain the results | 24 | | of the bidding for each of the products along with the | 25 | | procurement administrator's recommendation for the acceptance | 26 | | and rejection of bids based on the price benchmark criteria and |
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| 1 | | other factors observed in the process. The procurement monitor | 2 | | also shall submit a confidential report to the Commission | 3 | | within 2 business days after opening the sealed bids. The | 4 | | report shall contain the procurement monitor's assessment of | 5 | | bidder behavior in the process as well as an assessment of the | 6 | | procurement administrator's compliance with the procurement | 7 | | process and rules. The Commission shall review the confidential | 8 | | reports submitted by the procurement administrator and | 9 | | procurement monitor, and shall accept or reject the | 10 | | recommendations of the procurement administrator within 2 | 11 | | business days after receipt of the reports. | 12 | | (g) Within 3 business days after the Commission decision | 13 | | approving the results of a procurement event, the utility shall | 14 | | enter into binding contractual arrangements with the winning | 15 | | suppliers using the standard form contracts; except that the | 16 | | utility shall not be required either directly or indirectly to | 17 | | execute the contracts if a tariff that is consistent with | 18 | | subsection (l) of this Section has not been approved and placed | 19 | | into effect for that utility. | 20 | | (h) The names of the successful bidders and the load | 21 | | weighted average of the winning bid prices for each contract | 22 | | type and for each contract term shall be made available to the | 23 | | public at the time of Commission approval of a procurement | 24 | | event. The Commission, the procurement monitor, the | 25 | | procurement administrator, the Illinois Power Agency, and all | 26 | | participants in the procurement process shall maintain the |
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| 1 | | confidentiality of all other supplier and bidding information | 2 | | in a manner consistent with all applicable laws, rules, | 3 | | regulations, and tariffs. Confidential information, including | 4 | | the confidential reports submitted by the procurement | 5 | | administrator and procurement monitor pursuant to subsection | 6 | | (f) of this Section, shall not be made publicly available and | 7 | | shall not be discoverable by any party in any proceeding, | 8 | | absent a compelling demonstration of need, nor shall those | 9 | | reports be admissible in any proceeding other than one for law | 10 | | enforcement purposes. | 11 | | (i) Within 2 business days after a Commission decision | 12 | | approving the results of a procurement event or such other date | 13 | | as may be required by the Commission from time to time, the | 14 | | utility shall file for informational purposes with the | 15 | | Commission its actual or estimated retail supply charges, as | 16 | | applicable, by customer supply group reflecting the costs | 17 | | associated with the procurement and computed in accordance with | 18 | | the tariffs filed pursuant to subsection (l) of this Section | 19 | | and approved by the Commission. | 20 | | (j) Within 60 days following August 28, 2007 (the effective | 21 | | date of Public Act 95-481), each electric utility that on | 22 | | December 31, 2005 provided electric service to at least 100,000 | 23 | | customers in Illinois shall prepare and file with the | 24 | | Commission an initial procurement plan, which shall conform in | 25 | | all material respects to the requirements of the procurement | 26 | | plan set forth in subsection (b); provided, however, that the |
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| 1 | | Illinois Power Agency Act shall not apply to the initial | 2 | | procurement plan prepared pursuant to this subsection. The | 3 | | initial procurement plan shall identify the portfolio of power | 4 | | and energy products to be procured and delivered for the period | 5 | | June 2008 through May 2009, and shall identify the proposed | 6 | | procurement administrator, who shall have the same experience | 7 | | and expertise as is required of a procurement administrator | 8 | | hired pursuant to Section 1-75 of the Illinois Power Agency | 9 | | Act. Copies of the procurement plan shall be posted and made | 10 | | publicly available on the Commission's website. The initial | 11 | | procurement plan may include contracts for renewable resources | 12 | | that extend beyond May 2009. | 13 | | (i) Within 14 days following filing of the initial | 14 | | procurement plan, any person may file a detailed objection | 15 | | with the Commission contesting the procurement plan | 16 | | submitted by the electric utility. All objections to the | 17 | | electric utility's plan shall be specific, supported by | 18 | | data or other detailed analyses. The electric utility may | 19 | | file a response to any objections to its procurement plan | 20 | | within 7 days after the date objections are due to be | 21 | | filed. Within 7 days after the date the utility's response | 22 | | is due, the Commission shall determine whether a hearing is | 23 | | necessary. If it determines that a hearing is necessary, it | 24 | | shall require the hearing to be completed and issue an | 25 | | order on the procurement plan within 60 days after the | 26 | | filing of the procurement plan by the electric utility. |
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| 1 | | (ii) The order shall approve or modify the procurement | 2 | | plan, approve an independent procurement administrator, | 3 | | and approve or modify the electric utility's tariffs that | 4 | | are proposed with the initial procurement plan. The | 5 | | Commission shall approve the procurement plan if the | 6 | | Commission determines that it will ensure adequate, | 7 | | 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. | 10 | | (k) (Blank). | 11 | | (k-5) (Blank). | 12 | | (l) An electric utility shall recover its costs incurred | 13 | | under this Section, including, but not limited to, the costs of | 14 | | procuring power and energy demand-response resources under | 15 | | this Section. The utility shall file with the initial | 16 | | procurement plan its proposed tariffs through which its costs | 17 | | of procuring power that are incurred pursuant to a | 18 | | Commission-approved procurement plan and those other costs | 19 | | identified in this subsection (l), will be recovered. The | 20 | | tariffs shall include a formula rate or charge designed to pass | 21 | | through both the costs incurred by the utility in procuring a | 22 | | supply of electric power and energy for the applicable customer | 23 | | classes with no mark-up or return on the price paid by the | 24 | | utility for that supply, plus any just and reasonable costs | 25 | | that the utility incurs in arranging and providing for the | 26 | | supply of electric power and energy. The formula rate or charge |
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| 1 | | shall also contain provisions that ensure that its application | 2 | | does not result in over or under recovery due to changes in | 3 | | customer usage and demand patterns, and that provide for the | 4 | | correction, on at least an annual basis, of any accounting | 5 | | errors that may occur. A utility shall recover through the | 6 | | tariff all reasonable costs incurred to implement or comply | 7 | | with any procurement plan that is developed and put into effect | 8 | | pursuant to Section 1-75 of the Illinois Power Agency Act and | 9 | | this Section, including any fees assessed by the Illinois Power | 10 | | Agency, costs associated with load balancing, and contingency | 11 | | plan costs. The electric utility shall also recover its full | 12 | | costs of procuring electric supply for which it contracted | 13 | | before the effective date of this Section in conjunction with | 14 | | the provision of full requirements service under fixed-price | 15 | | bundled service tariffs subsequent to December 31, 2006. All | 16 | | such costs shall be deemed to have been prudently incurred. The | 17 | | pass-through tariffs that are filed and approved pursuant to | 18 | | this Section shall not be subject to review under, or in any | 19 | | way limited by, Section 16-111(i) of this Act. All of the costs | 20 | | incurred by the electric utility associated with the purchase | 21 | | of zero emission credits in accordance with subsection (d-5) of | 22 | | Section 1-75 of the Illinois Power Agency Act and, beginning | 23 | | June 1, 2017, all of the costs incurred by the electric utility | 24 | | associated with the purchase of renewable energy resources in | 25 | | accordance with Sections 1-56 and 1-75 of the Illinois Power | 26 | | Agency Act, shall be recovered through the electric utility's |
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| 1 | | tariffed charges applicable to all of its retail customers, as | 2 | | specified in subsection (k) of Section 16-108 of this Act, and | 3 | | shall not be recovered through the electric utility's tariffed | 4 | | charges for electric power and energy supply to its eligible | 5 | | retail customers. | 6 | | (m) The Commission has the authority to adopt rules to | 7 | | carry out the provisions of this Section. For the public | 8 | | interest, safety, and welfare, the Commission also has | 9 | | authority to adopt rules to carry out the provisions of this | 10 | | Section on an emergency basis immediately following August 28, | 11 | | 2007 (the effective date of Public Act 95-481). | 12 | | (n) Notwithstanding any other provision of this Act, any | 13 | | affiliated electric utilities that submit a single procurement | 14 | | plan covering their combined needs may procure for those | 15 | | combined needs in conjunction with that plan, and may enter | 16 | | jointly into power supply contracts, purchases, and other | 17 | | procurement arrangements, and allocate capacity and energy and | 18 | | cost responsibility therefor among themselves in proportion to | 19 | | their requirements. | 20 | | (o) On or before June 1 of each year, the Commission shall | 21 | | hold an informal hearing for the purpose of receiving comments | 22 | | on the prior year's procurement process and any recommendations | 23 | | for change.
| 24 | | (p) An electric utility subject to this Section may propose | 25 | | to invest, lease, own, or operate an electric generation | 26 | | facility as part of its procurement plan, provided the utility |
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| 1 | | demonstrates that such facility is the least-cost option to | 2 | | provide electric service to those retail customers included in | 3 | | the plan's electric supply service requirements. If the | 4 | | facility is shown to be the least-cost option and is included | 5 | | in a procurement plan prepared in accordance with Section 1-75 | 6 | | of the Illinois Power Agency Act and this Section, then the | 7 | | electric utility shall make a filing pursuant to Section 8-406 | 8 | | of this Act, and may request of the Commission any statutory | 9 | | relief required thereunder. If the Commission grants all of the | 10 | | necessary approvals for the proposed facility, such supply | 11 | | shall thereafter be considered as a pre-existing contract under | 12 | | subsection (b) of this Section. The Commission shall in any | 13 | | order approving a proposal under this subsection specify how | 14 | | the utility will recover the prudently incurred costs of | 15 | | investing in, leasing, owning, or operating such generation | 16 | | facility through just and reasonable rates charged to those | 17 | | retail customers included in the plan's electric supply service | 18 | | requirements. Cost recovery for facilities included in the | 19 | | utility's procurement plan pursuant to this subsection shall | 20 | | not be subject to review under or in any way limited by the | 21 | | provisions of Section 16-111(i) of this Act. Nothing in this | 22 | | Section is intended to prohibit a utility from filing for a | 23 | | fuel adjustment clause as is otherwise permitted under Section | 24 | | 9-220 of this Act.
| 25 | | (q) If the Illinois Power Agency filed with the Commission, | 26 | | under Section 16-111.5 of this Act, its proposed procurement |
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| 1 | | plan for the period commencing June 1, 2017, and the Commission | 2 | | has not yet entered its final order approving the plan on or | 3 | | before the effective date of this amendatory Act of the 99th | 4 | | General Assembly, then the Illinois Power Agency shall file a | 5 | | notice of withdrawal with the Commission, after the effective | 6 | | date of this amendatory Act of the 99th General Assembly, to | 7 | | withdraw the proposed procurement of renewable energy | 8 | | resources to be approved under the plan, other than the | 9 | | procurement of renewable energy credits from distributed | 10 | | renewable energy generation devices using funds previously | 11 | | collected from electric utilities' retail customers that take | 12 | | service pursuant to electric utilities' hourly pricing tariff | 13 | | or tariffs and, for an electric utility that serves less than | 14 | | 100,000 retail customers in the State, other than the | 15 | | procurement of renewable energy credits from distributed | 16 | | renewable energy generation devices. Upon receipt of the | 17 | | notice, the Commission shall enter an order that approves the | 18 | | withdrawal of the proposed procurement of renewable energy | 19 | | resources from the plan. The initially proposed procurement of | 20 | | renewable energy resources shall not be approved or be the | 21 | | subject of any further hearing, investigation, proceeding, or | 22 | | order of any kind. | 23 | | This amendatory Act of the 99th General Assembly preempts | 24 | | and supersedes any order entered by the Commission that | 25 | | approved the Illinois Power Agency's procurement plan for the | 26 | | period commencing June 1, 2017, to the extent it is |
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| 1 | | inconsistent with the provisions of this amendatory Act of the | 2 | | 99th General Assembly. To the extent any previously entered | 3 | | order approved the procurement of renewable energy resources, | 4 | | the portion of that order approving the procurement shall be | 5 | | void, other than the procurement of renewable energy credits | 6 | | from distributed renewable energy generation devices using | 7 | | funds previously collected from electric utilities' retail | 8 | | customers that take service under electric utilities' hourly | 9 | | pricing tariff or tariffs and, for an electric utility that | 10 | | serves less than 100,000 retail customers in the State, other | 11 | | than the procurement of renewable energy credits for | 12 | | distributed renewable energy generation devices. | 13 | | (Source: P.A. 99-906, eff. 6-1-17 .)".
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