Bill Text: IL SB1446 | 2015-2016 | 99th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Public Utilities Act. Provides that alternative retail electric suppliers may file commercially or financially sensitive information or trade secrets contained in specified reports or filings with the Commission without also filing a formal petition with the Chief Clerk of the Commission seeking a Commission order granting confidential treatment. Provides that, if an alternative retail electric supplier elects not to file a formal petition with the Chief Clerk of the Commission seeking such a Commission order, but still desires confidential treatment for the commercially or financially sensitive information or trade secrets submitted to the Commission, it must (1) provide the Commission contemporaneously with its filing an affidavit that sets forth both the reasons for the confidentiality and a public synopsis of the information for which confidential treatment is sought; and (2) provide the Commission contemporaneously with its filing both a "confidential" and a "public" version of the report, filing, or document for which it seeks confidential treatment with all confidential information marked "Confidential". Provides that the information identified as confidential by the alternative retail electric supplier shall be afforded proprietary treatment and shall be accessible only by the Commission and the Commission staff for a 2-year period from the date of submission to the Commission. Provides that nothing prevents the Commission (A) on its own motion, after reviewing the submittal of an alternative retail electric supplier pursuant to this subsection, from requiring the alternative retail electric supplier to file a formal petition with the Chief Clerk seeking confidential treatment; (B) from entering an order expanding the list of recurring reports or filings eligible for the confidential treatment process; or (C) from entering an order adjusting the time period information may be treated by the Commission as confidential. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Passed) 2015-08-10 - Public Act . . . . . . . . . 99-0332 [SB1446 Detail]

Download: Illinois-2015-SB1446-Enrolled.html

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SB1446 Enrolled LRB099 10192 AMC 30416 b
AN ACT concerning utilities.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by changing
Sections 16-115 and 19-110 as follows:
(220 ILCS 5/16-115)
Sec. 16-115. Certification of alternative retail electric
suppliers.
(a) Any alternative retail electric supplier must obtain a
certificate of service authority from the Commission in
accordance with this Section before serving any retail customer
or other user located in this State. An alternative retail
electric supplier may request, and the Commission may grant, a
certificate of service authority for the entire State or for a
specified geographic area of the State.
(b) An alternative retail electric supplier seeking a
certificate of service authority shall file with the Commission
a verified application containing information showing that the
applicant meets the requirements of this Section. The
alternative retail electric supplier shall publish notice of
its application in the official State newspaper within 10 days
following the date of its filing. No later than 45 days after
the application is properly filed with the Commission, and such

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notice is published, the Commission shall issue its order
granting or denying the application.
(c) An application for a certificate of service authority
shall identify the area or areas in which the applicant intends
to offer service and the types of services it intends to offer.
Applicants that seek to serve residential or small commercial
retail customers within a geographic area that is smaller than
an electric utility's service area shall submit evidence
demonstrating that the designation of this smaller area does
not violate Section 16-115A. An applicant that seeks to serve
residential or small commercial retail customers may state in
its application for certification any limitations that will be
imposed on the number of customers or maximum load to be
served.
(d) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application and
such other information as the applicant may submit:
(1) That the applicant possesses sufficient technical,
financial and managerial resources and abilities to
provide the service for which it seeks a certificate of
service authority. In determining the level of technical,
financial and managerial resources and abilities which the
applicant must demonstrate, the Commission shall consider
(i) the characteristics, including the size and financial
sophistication, of the customers that the applicant seeks

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to serve, and (ii) whether the applicant seeks to provide
electric power and energy using property, plant and
equipment which it owns, controls or operates;
(2) That the applicant will comply with all applicable
federal, State, regional and industry rules, policies,
practices and procedures for the use, operation, and
maintenance of the safety, integrity and reliability, of
the interconnected electric transmission system;
(3) That the applicant will only provide service to
retail customers in an electric utility's service area that
are eligible to take delivery services under this Act;
(4) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish and provide the information required
by Section 16-112. Any data related to contracts for the
purchase and sale of electric power and energy shall be
made available for review by the Staff of the Commission on
a confidential and proprietary basis and only to the extent
and for the purposes which the Commission determines are
reasonably necessary in order to carry out the purposes of
this Act;
(5) That the applicant will procure renewable energy
resources in accordance with Section 16-115D of this Act,
and will source electricity from clean coal facilities, as
defined in Section 1-10 of the Illinois Power Agency Act,
in amounts at least equal to the percentages set forth in

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subsections (c) and (d) of Section 1-75 of the Illinois
Power Agency Act. For purposes of this Section:
(i) (Blank);
(ii) (Blank);
(iii) the required sourcing of electricity
generated by clean coal facilities, other than the
initial clean coal facility, shall be limited to the
amount of electricity that can be procured or sourced
at a price at or below the benchmarks approved by the
Commission each year in accordance with item (1) of
subsection (c) and items (1) and (5) of subsection (d)
of Section 1-75 of the Illinois Power Agency Act;
(iv) all alternative retail electric suppliers
shall execute a sourcing agreement to source
electricity from the initial clean coal facility, on
the terms set forth in paragraphs (3) and (4) of
subsection (d) of Section 1-75 of the Illinois Power
Agency Act, except that in lieu of the requirements in
subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
paragraph (3) of that subsection (d), the applicant
shall execute one or more of the following:
(1) if the sourcing agreement is a power
purchase agreement, a contract with the initial
clean coal facility to purchase in each hour an
amount of electricity equal to all clean coal
energy made available from the initial clean coal

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facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatthours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatthours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act; or
(2) if the sourcing agreement is a contract for
differences, a contract with the initial clean
coal facility in each hour with respect to an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of

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subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatthours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatthours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act;
(v) if, in any year after the first year of
commercial operation, the owner of the clean coal
facility fails to demonstrate to the Commission that
the initial clean coal facility captured and
sequestered at least 50% of the total carbon emissions
that the facility would otherwise emit or that
sequestration of emissions from prior years has
failed, resulting in the release of carbon into the
atmosphere, the owner of the facility must offset

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excess emissions. Any such carbon offsets must be
permanent, additional, verifiable, real, located
within the State of Illinois, and legally and
practicably enforceable. The costs of any such offsets
that are not recoverable shall not exceed $15 million
in any given year. No costs of any such purchases of
carbon offsets may be recovered from an alternative
retail electric supplier or its customers. All carbon
offsets purchased for this purpose and any carbon
emission credits associated with sequestration of
carbon from the facility must be permanently retired.
The initial clean coal facility shall not forfeit its
designation as a clean coal facility if the facility
fails to fully comply with the applicable carbon
sequestration requirements in any given year, provided
the requisite offsets are purchased. However, the
Attorney General, on behalf of the People of the State
of Illinois, may specifically enforce the facility's
sequestration requirement and the other terms of this
contract provision. Compliance with the sequestration
requirements and offset purchase requirements that
apply to the initial clean coal facility shall be
reviewed annually by an independent expert retained by
the owner of the initial clean coal facility, with the
advance written approval of the Attorney General;
(vi) The Commission shall, after notice and

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hearing, revoke the certification of any alternative
retail electric supplier that fails to execute a
sourcing agreement with the initial clean coal
facility as required by item (5) of subsection (d) of
this Section. The sourcing agreements with this
initial clean coal facility shall be subject to both
approval of the initial clean coal facility by the
General Assembly and satisfaction of the requirements
of item (4) of subsection (d) of Section 1-75 of the
Illinois Power Agency Act, and shall be executed within
90 days after any such approval by the General
Assembly. The Commission shall not accept an
application for certification from an alternative
retail electric supplier that has lost certification
under this subsection (d), or any corporate affiliate
thereof, for at least one year from the date of
revocation;
(6) With respect to an applicant that seeks to serve
residential or small commercial retail customers, that the
area to be served by the applicant and any limitations it
proposes on the number of customers or maximum amount of
load to be served meet the provisions of Section 16-115A,
provided, that the Commission can extend the time for
considering such a certificate request by up to 90 days,
and can schedule hearings on such a request;
(7) That the applicant meets the requirements of

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subsection (a) of Section 16-128; and
(8) That the applicant will comply with all other
applicable laws and regulations.
(d-5) (Blank).
(e) A retail customer that owns a cogeneration or
self-generation facility and that seeks certification only to
provide electric power and energy from such facility to retail
customers at separate locations which customers are both (i)
owned by, or a subsidiary or other corporate affiliate of, such
applicant and (ii) eligible for delivery services, shall be
granted a certificate of service authority upon filing an
application and notifying the Commission that it has entered
into an agreement with the relevant electric utilities pursuant
to Section 16-118. Provided, however, that if the retail
customer owning such cogeneration or self-generation facility
would not be charged a transition charge due to the exemption
provided under subsection (f) of Section 16-108 prior to the
certification, and the retail customers at separate locations
are taking delivery services in conjunction with purchasing
power and energy from the facility, the retail customer on
whose premises the facility is located shall not thereafter be
required to pay transition charges on the power and energy that
such retail customer takes from the facility.
(f) The Commission shall have the authority to promulgate
rules and regulations to carry out the provisions of this
Section. On or before May 1, 1999, the Commission shall adopt a

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rule or rules applicable to the certification of those
alternative retail electric suppliers that seek to serve only
nonresidential retail customers with maximum electrical
demands of one megawatt or more which shall provide for (i)
expedited and streamlined procedures for certification of such
alternative retail electric suppliers and (ii) specific
criteria which, if met by any such alternative retail electric
supplier, shall constitute the demonstration of technical,
financial and managerial resources and abilities to provide
service required by subsection (d) (1) of this Section, such as
a requirement to post a bond or letter of credit, from a
responsible surety or financial institution, of sufficient
size for the nature and scope of the services to be provided;
demonstration of adequate insurance for the scope and nature of
the services to be provided; and experience in providing
similar services in other jurisdictions.
(g) An alternative retail electric supplier may seek
confidential treatment for the following information by filing
an affidavit with the Commission so long as the affidavit meets
the requirements in this subsection (g):
(1) the total annual kilowatt-hours delivered and sold
by an alternative retail electric supplier to retail
customers within each utility service territory and the
total annual kilowatt-hours delivered and sold by an
alternative retail electric supplier to retail customers
in all utility service territories in the preceding

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calendar year as required by 83 Ill. Adm. Code 451.770;
(2) the total peak demand supplied by an alternative
retail electric supplier during the previous year in each
utility service territory as required by 83 Ill. Adm. Code
465.40;
(3) a good faith estimate of the amount an alternative
retail electric supplier expects to be obliged to pay the
utility under single billing tariffs during the next 12
months and the amount of any bond or letter of credit used
to demonstrate an alternative retail electric supplier's
credit worthiness to provide single billing services
pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
The affidavit must be filed contemporaneously with the
information for which confidential treatment is sought and must
clearly state that the affiant seeks confidential treatment
pursuant to this subsection (g) and the information for which
confidential treatment is sought must be clearly identified on
the confidential version of the document filed with the
Commission. The affidavit must be accompanied by a
"confidential" and a "public" version of the document or
documents containing the information for which confidential
treatment is sought.
If the alternative retail electric supplier has met the
affidavit requirements of this subsection (g), then the
Commission shall afford confidential treatment to the
information identified in the affidavit for a period of 2 years

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after the date the affidavit is received by the Commission.
Nothing in this subsection (g) prevents an alternative
retail electric supplier from filing a petition with the
Commission seeking confidential treatment for information
beyond that identified in this subsection (g) or for
information contained in other reports or documents filed with
the Commission.
Nothing in this subsection (g) prevents the Commission, on
its own motion, or any party from filing a formal petition with
the Commission seeking to reconsider the conferring of
confidential status on an item of information afforded
confidential treatment pursuant to this subsection (g).
The Commission, on its own motion, may at any time initiate
a docketed proceeding to investigate the continued
applicability of this subsection (g) to the information
contained in items (i), (ii), and (iii) of this subsection (g).
If, at the end of such investigation, the Commission determines
that a particular item of information should no longer be
eligible for the affidavit-based process outlined in this
subsection (g), the Commission may enter an order to remove
that item from the list of items eligible for the process set
forth in this subsection (g). Notwithstanding any such order,
in the event the Commission makes such a determination, nothing
in this subsection (g) prevents an alternative retail electric
supplier desiring confidential treatment for such information
from filing a formal petition with the Commission seeking

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confidential treatment for such information.
(Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09;
96-159, eff. 8-10-09.)
(220 ILCS 5/19-110)
Sec. 19-110. Certification of alternative gas suppliers.
(a) The provisions of this Section shall apply only to
alternative gas suppliers serving or seeking to serve
residential or small commercial customers and only to the
extent such alternative gas suppliers provide services to
residential or small commercial customers.
(b) An alternative gas supplier must obtain a certificate
of service authority from the Commission in accordance with
this Section before serving any customer or other user located
in this State. An alternative gas supplier may request, and the
Commission may grant, a certificate of service authority for
the entire State or for a specified geographic area of the
State. A person, corporation, or other entity acting as an
alternative gas supplier on the effective date of this
amendatory Act of the 92nd General Assembly shall have 180 days
from the effective date of this amendatory Act of the 92nd
General Assembly to comply with the requirements of this
Section in order to continue to operate as an alternative gas
supplier.
(c) An alternative gas supplier seeking a certificate of
service authority shall file with the Commission a verified

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application containing information showing that the applicant
meets the requirements of this Section. The alternative gas
supplier shall publish notice of its application in the
official State newspaper within 10 days following the date of
its filing. No later than 45 days after the application is
properly filed with the Commission, and such notice is
published, the Commission shall issue its order granting or
denying the application.
(d) An application for a certificate of service authority
shall identify the area or areas in which the applicant intends
to offer service and the types of services it intends to offer.
Applicants that seek to serve residential or small commercial
customers within a geographic area that is smaller than a gas
utility's service area shall submit evidence demonstrating
that the designation of this smaller area does not violate
Section 19-115. An applicant may state in its application for
certification any limitations that will be imposed on the
number of customers or maximum load to be served. The applicant
shall submit as part of its application a statement indicating:
(1) Whether the applicant has been denied a natural gas
supplier license in any state in the United States.
(2) Whether the applicant has had a natural gas
supplier license suspended or revoked by any state in the
United States.
(3) Where, if any, other natural gas supplier license
applications are pending in the United States.

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(4) Whether the applicant is the subject of any
lawsuits filed in a court of law or formal complaints filed
with a regulatory agency alleging fraud, deception or
unfair marketing practices, or other similar allegations,
identifying the name, case number, and jurisdiction of each
such lawsuit or complaint.
For the purposes of this subsection (d), formal complaints
include only those complaints that seek a binding determination
from a state or federal regulatory body.
(e) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application and
such other information as the applicant may submit.
(1) That the applicant possesses sufficient technical,
financial, and managerial resources and abilities to
provide the service for which it seeks a certificate of
service authority. In determining the level of technical,
financial, and managerial resources and abilities which
the applicant must demonstrate, the Commission shall
consider:
(A) the characteristics, including the size and
financial sophistication of the customers that the
applicant seeks to serve;
(B) whether the applicant seeks to provide gas
using property, plant, and equipment that it owns,
controls, or operates; and

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(C) the applicant's commitment of resources to the
management of sales and marketing staff, through
affirmative managerial policies, independent audits,
technology, hands-on field monitoring and training,
and, in the case of applicants who will have sales
personnel or sales agents within the State of Illinois,
the applicant's managerial presence within the State.
(2) That the applicant will comply with all applicable
federal, State, regional, and industry rules, policies,
practices, and procedures for the use, operation, and
maintenance of the safety, integrity, and reliability of
the gas transmission system.
(3) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish.
(4) That the area to be served by the applicant and any
limitations it proposes on the number of customers or
maximum amount of load to be served meet the provisions of
Section 19-115, provided, that if the applicant seeks to
serve an area smaller than the service area of a gas
utility or proposes other limitations on the number of
customers or maximum amount of load to be served, the
Commission can extend the time for considering such a
certificate request by up to 90 days, and can schedule
hearings on such a request.
(5) That the applicant and the applicant's sales agents

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will comply with all other applicable laws and rules.
(f) The Commission can extend the time for considering such
a certificate request by up to 90 days, and can schedule
hearings on such a request if:
(1) a party to the application proceeding has formally
requested that the Commission hold hearings in a pleading
that alleges that one or more of the allegations or
certifications in the application is false or misleading;
or
(2) other facts or circumstances exist that will
necessitate additional time or evidence in order to
determine whether a certificate should be issued.
(g) The Commission shall have the authority to promulgate
rules to carry out the provisions of this Section. Within 30
days after the effective date of this amendatory Act of the
92nd General Assembly, the Commission shall adopt an emergency
rule or rules applicable to the certification of those gas
suppliers that seek to serve residential customers. Within 180
days of the effective date of this amendatory Act of the 92nd
General Assembly, the Commission shall adopt rules that specify
criteria which, if met by any such alternative gas supplier,
shall constitute the demonstration of technical, financial,
and managerial resources and abilities to provide service
required by item (1) of subsection (e) of this Section, such as
a requirement to post a bond or letter of credit, from a
responsible surety or financial institution, of sufficient

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size for the nature and scope of the services to be provided,
demonstration of adequate insurance for the scope and nature of
the services to be provided, and experience in providing
similar services in other jurisdictions.
(h) The Commission may deny with prejudice any application
that repeatedly fails to include the attachments,
documentation, and affidavits required by the application form
or that repeatedly fails to provide any other information
required by this Section.
(i) An alternative gas supplier may seek confidential
treatment for the reporting to the Commission of its total
annual dekatherms delivered and sold by it to residential and
small commercial customers by utility service territory during
the preceding year via the filing of an affidavit with the
Commission so long as the affidavit meets the requirements of
this subsection (i). The affidavit must be filed
contemporaneously with the information for which confidential
treatment is sought and must clearly state that the affiant
seeks confidential treatment pursuant to this subsection (i)
and the information for which confidential treatment is sought
must be clearly identified on the confidential version of the
document filed with the Commission. The affidavit must be
accompanied by both a "confidential" and a "public" version of
the document or documents containing the information for which
confidential treatment is sought.
If the alternative gas supplier has met the affidavit

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requirements of this subsection (i), then the Commission shall
afford confidential treatment to the information identified in
the affidavit for a period of 2 years after the date the
affidavit is received by the Commission.
Nothing in this subsection (i) prevents an alternative gas
supplier from filing a petition with the Commission seeking
confidential treatment for information beyond that identified
in this subsection (i) or for information contained in other
reports or documents filed with the Commission.
Nothing in this subsection (i) prevents the Commission, on
its own motion, or any party from filing a formal petition with
the Commission seeking to reconsider the conferring of
confidential status pursuant to this subsection (i).
The Commission, on its own motion, may at any time initiate
a docketed proceeding to investigate the continued
applicability of this affidavit-based process for seeking
confidential treatment. If, at the end of such investigation,
the Commission determines that this affidavit-based process
for seeking confidential treatment for the information is no
longer necessary, the Commission may enter an order to that
effect. Notwithstanding any such order, in the event the
Commission makes such a determination, nothing in this
subsection (i) prevents an alternative gas supplier desiring
confidential treatment for such information from filing a
formal petition with the Commission seeking confidential
treatment for such information.

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(Source: P.A. 95-1051, eff. 4-10-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.