Rep. Ann Williams
Filed: 5/23/2011
 
 


 




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1
AMENDMENT TO SENATE BILL 1653




2 AMENDMENT NO. ______. Amend Senate Bill 1653 by replacing 
3everything after the enacting clause with the following:


4 "Section 1. Short title. This amendatory Act may be 
5referred to as the Illinois Renewable Electricity Resources 
6Act.

7 Section 5. The Illinois Power Agency Act is amended by 
8changing Sections 1-10, 1-20, 1-56, and 1-75 and by adding 
9Sections 1-76, 1-76.5, 1-77, 1-78, and 1-79 as follows:



10 (20 ILCS 3855/1-10)


11 Sec. 1-10. Definitions. 
12 "Agency" means the Illinois Power Agency.
13 "Agency loan agreement" means any agreement pursuant to 
14which the Illinois Finance Authority agrees to loan the 
15proceeds of revenue bonds issued with respect to a project to 
 
 
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1the Agency upon terms providing for loan repayment installments 
2at least sufficient to pay when due all principal of, interest 
3and premium, if any, on those revenue bonds, and providing for 
4maintenance, insurance, and other matters in respect of the 
5project.
6 "Authority" means the Illinois Finance Authority.
7 "Bundled renewable energy resources" means electricity 
8generated by a renewable energy resource and its associated 
9renewable energy credit. 
10 "Clean coal electricity buyer" means (1) each electric 
11utility and (2) each alternative electric retail supplier that 
12is subject to the requirements of subsection (d) of Section 
131-75 of this Act and paragraph (5) of subsection (d) of Section 
1416-115 of the Public Utilities Act.
15 "Clean coal energy" means all energy produced by the 
16initial clean coal facility. 
17 "Clean coal facility" means an electric generating 
18facility that uses primarily coal as a feedstock and that 
19captures and sequesters carbon dioxide emissions at the 
20following levels: at least 50% of the total carbon dioxide 
21emissions that the facility would otherwise emit if, at the 
22time construction commences, the facility is scheduled to 
23commence operation before 2016, at least 70% of the total 
24carbon dioxide emissions that the facility would otherwise emit 
25if, at the time construction commences, the facility is 
26scheduled to commence operation during 2016 or 2017, and at 
 
 
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1least 90% of the total carbon dioxide emissions that the 
2facility would otherwise emit if, at the time construction 
3commences, the facility is scheduled to commence operation 
4after 2017. The power block of the clean coal facility shall 
5not exceed allowable emission rates for sulfur dioxide, 
6nitrogen oxides, carbon monoxide, particulates and mercury for 
7a natural gas-fired combined-cycle facility the same size as 
8and in the same location as the clean coal facility at the time 
9the clean coal facility obtains an approved air permit. All 
10coal used by a clean coal facility shall have high volatile 
11bituminous rank and greater than 1.7 pounds of sulfur per 
12million btu content, unless the clean coal facility does not 
13use gasification technology and was operating as a conventional 
14coal-fired electric generating facility on June 1, 2009 (the 
15effective date of Public Act 95-1027). 
16 "Clean coal fraction" means, with respect to a clean coal 
17electricity buyer for a month, a fraction, the numerator of 
18which is such clean coal electricity buyer's retail market 
19sales of electricity (expressed in kilowatthours sold) in the 
20State during the third month preceding the applicable month and 
21the denominator of which is the total retail market sales of 
22electricity (expressed in kilowatthours sold) in the State by 
23all clean coal electricity buyers during such third month 
24preceding the applicable month, as such fraction may be 
25adjusted pursuant to subparagraph (E) of paragraph (2) of 
26subsection (d) of Section 1-75 of this Act.
 
 
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1 "Clean coal SNG facility" means a facility that uses a 
2gasification process to produce substitute natural gas, that 
3sequesters at least 90% of the total carbon dioxide emissions 
4that the facility would otherwise emit and that uses petroleum 
5coke or coal as a feedstock, with all such coal having a high 
6bituminous rank and greater than 1.7 pounds of sulfur per 
7million btu content.
8 "Commission" means the Illinois Commerce Commission.
9 "Costs incurred in connection with the development and 
10construction of a facility" means:
11  (1) the cost of acquisition of all real property and 
12 improvements in connection therewith and equipment and 
13 other property, rights, and easements acquired that are 
14 deemed necessary for the operation and maintenance of the 
15 facility;
16  (2) financing costs with respect to bonds, notes, and 
17 other evidences of indebtedness of the Agency;
18  (3) all origination, commitment, utilization, 
19 facility, placement, underwriting, syndication, credit 
20 enhancement, and rating agency fees;
21  (4) engineering, design, procurement, consulting, 
22 legal, accounting, title insurance, survey, appraisal, 
23 escrow, trustee, collateral agency, interest rate hedging, 
24 interest rate swap, capitalized interest and other 
25 financing costs, and other expenses for professional 
26 services; and
 
 
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1  (5) the costs of plans, specifications, site study and 
2 investigation, installation, surveys, other Agency costs 
3 and estimates of costs, and other expenses necessary or 
4 incidental to determining the feasibility of any project, 
5 together with such other expenses as may be necessary or 
6 incidental to the financing, insuring, acquisition, and 
7 construction of a specific project and placing that project 
8 in operation.
9 "Delivery services" has the same definition as found in 
10Section 16-102 of the Public Utilities Act.
11 "Delivery services non-eligible retail customers" means 
12the retail customers in an electric utility's service area for 
13which the electric utility provides delivery services, but 
14which are not eligible retail customers as defined in 
15subsection (a) of Section 1-75 of this Act. 
16 "Department" means the Department of Commerce and Economic 
17Opportunity.
18 "Director" means the Director of the Illinois Power Agency.
19 "Demand-response" means measures that decrease peak 
20electricity demand or shift demand from peak to off-peak 
21periods.
22 "Distributed renewable energy generation device" means a 
23device that is:
24  (1) powered by wind, solar thermal energy, 
25 photovoltaic cells and panels, biodiesel, crops and 
26 untreated and unadulterated organic waste biomass, tree 
 
 
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1 waste, and hydropower that does not involve new 
2 construction or significant expansion of hydropower dams;
3  (2) interconnected at the distribution system level of 
4 either an electric utility as defined in this Section, an 
5 alternative retail electric supplier as defined in Section 
6 16-102 of the Public Utilities Act, a municipal utility as 
7 defined in Section 3-105 of the Public Utilities Act, or a 
8 rural electric cooperative as defined in Section 3-119 of 
9 the Public Utilities Act; and
10  (3) located on the customer side of the customer's 
11 electric meter and is generally used to offset that 
12 customer's electricity load. 
13 "Energy efficiency" means measures that reduce the amount 
14of electricity or natural gas required to achieve a given end 
15use.
16 "Electric utility" has the same definition as found in 
17Section 16-102 of the Public Utilities Act.
18 "Excluded renewable energy resources contract costs" means 
19the amount by which the costs of renewable energy resources, 
20purchased for a particular year to meet the renewable energy 
21resources standards of paragraph (1) of subsection (c) of 
22Section 1-75 of this Act applicable to the load of an electric 
23utility's eligible retail customers pursuant to a contract with 
24a term greater than one year that the electric utility entered 
25into in a previous year in accordance with a procurement 
26approved by the Commission pursuant to Section 16-111.5 of the 
 
 
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1Public Utilities Act, exceed the limitations imposed by 
2paragraph (2) of subsection (c) of Section 1-75 of this Act for 
3the particular year. 
4 "Facility" means an electric generating unit or a 
5co-generating unit that produces electricity along with 
6related equipment necessary to connect the facility to an 
7electric transmission or distribution system.
8 "Governmental aggregator" means one or more units of local 
9government that individually or collectively procure 
10electricity to serve residential retail electrical loads 
11located within its or their jurisdiction.
12 "Initial clean coal facility" means an electric generating 
13facility using gasification technology that: (1) has a 
14nameplate capacity of at least 500 MW; (2) irrevocably commits 
15in its proposed sourcing agreement to use coal for at least 50% 
16of the total feedstock over the term of a sourcing agreement, 
17with all coal having high volatile bituminous rank and greater 
18than 1.7 pounds of sulfur per million btu content; (3) is 
19designed to capture and sequester at least 90% of the carbon 
20dioxide emissions that the portion of the facility, if any, 
21that produces SNG would otherwise emit and at least 50% of the 
22total carbon dioxide emissions that the facility as a whole 
23would otherwise emit; (4) absent an appeal of a permit or 
24regulatory order, is reasonably capable of achieving 
25commercial operation by no later than 5 years after the 
26execution of the sourcing agreements; (5) has a feasible 
 
 
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1financing plan; (6) has a reliable and cost-effective 
2transmission plan to deliver energy to Commonwealth Edison 
3Company and Ameren Illinois; and (7) has a power block designed 
4not to exceed allowable emission rates for sulfur dioxide, 
5nitrogen oxides, carbon monoxide, particulates, and mercury 
6for a natural gas-fired combined-cycle facility the same size 
7as and in the same location as the electric generating facility 
8at the time the electric generating facility obtains an 
9approved air permit.
10 "Large electric customer" means a customer that (1) obtains 
11retail electric service in the State from an electric utility 
12or an alternative retail electric supplier and (2) is not a 
13small electric customer. 
14 "Local government" means a unit of local government as 
15defined in Article VII of Section 1 of the Illinois 
16Constitution.
17 "Municipality" means a city, village, or incorporated 
18town.
19 "Person" means any natural person, firm, partnership, 
20corporation, either domestic or foreign, company, association, 
21limited liability company, joint stock company, or association 
22and includes any trustee, receiver, assignee, or personal 
23representative thereof.
24 "Project" means the planning, bidding, and construction of 
25a facility.
26 "Public utility" has the same definition as found in 
 
 
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1Section 3-105 of the Public Utilities Act.
2 "Real property" means any interest in land together with 
3all structures, fixtures, and improvements thereon, including 
4lands under water and riparian rights, any easements, 
5covenants, licenses, leases, rights-of-way, uses, and other 
6interests, together with any liens, judgments, mortgages, or 
7other claims or security interests related to real property.
8 "Renewable energy credit" means a tradable credit that 
9represents the environmental attributes of a certain amount of 
10energy produced from a renewable energy resource.
11 "Renewable energy resources" includes energy and its 
12associated renewable energy credit or renewable energy credits 
13from wind, solar thermal energy, photovoltaic cells and panels, 
14biodiesel, crops and untreated and unadulterated organic waste 
15biomass, tree waste, hydropower that does not involve new 
16construction or significant expansion of hydropower dams, and 
17other alternative sources of environmentally preferable 
18energy. For purposes of this Act, landfill gas produced in the 
19State is considered a renewable energy resource. "Renewable 
20energy resources" does not include the incineration or burning 
21of tires, garbage, general household, institutional, and 
22commercial waste, industrial lunchroom or office waste, 
23landscape waste other than tree waste, railroad crossties, 
24utility poles, or construction or demolition debris, other than 
25untreated and unadulterated waste wood.
26 "Revenue bond" means any bond, note, or other evidence of 
 
 
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1indebtedness issued by the Authority, the principal and 
2interest of which is payable solely from revenues or income 
3derived from any project or activity of the Agency.
4 "Sequester" means permanent storage of carbon dioxide by 
5injecting it into a saline aquifer, a depleted gas reservoir, 
6or an oil reservoir, directly or through an enhanced oil 
7recovery process that may involve intermediate storage in a 
8salt dome. 
9 "Servicing agreement" means (i) in the case of an electric 
10utility, an agreement between the owner of a clean coal 
11facility and such electric utility, which agreement shall have 
12terms and conditions meeting the requirements of paragraph (3) 
13of subsection (d) of Section 1-75, and (ii) in the case of an 
14alternative retail electric supplier, an agreement between the 
15owner of a clean coal facility and such alternative retail 
16electric supplier, which agreement shall have terms and 
17conditions meeting the requirements of Section 16-115(d)(5) of 
18the Public Utilities Act. 
19 "Small electric customer" means a residential retail 
20electric customer that obtains electric service in the State 
21from an electric utility or an alternative retail electric 
22supplier. 
23 "Substitute natural gas" or "SNG" means a gas manufactured 
24by gasification of hydrocarbon feedstock, which is 
25substantially interchangeable in use and distribution with 
26conventional natural gas. 
 
 
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1 "Total resource cost test" or "TRC test" means a standard 
2that is met if, for an investment in energy efficiency or 
3demand-response measures, the benefit-cost ratio is greater 
4than one. The benefit-cost ratio is the ratio of the net 
5present value of the total benefits of the program to the net 
6present value of the total costs as calculated over the 
7lifetime of the measures. A total resource cost test compares 
8the sum of avoided electric utility costs, representing the 
9benefits that accrue to the system and the participant in the 
10delivery of those efficiency measures, as well as other 
11quantifiable societal benefits, including avoided natural gas 
12utility costs, to the sum of all incremental costs of end-use 
13measures that are implemented due to the program (including 
14both utility and participant contributions), plus costs to 
15administer, deliver, and evaluate each demand-side program, to 
16quantify the net savings obtained by substituting the 
17demand-side program for supply resources. In calculating 
18avoided costs of power and energy that an electric utility 
19would otherwise have had to acquire, reasonable estimates shall 
20be included of financial costs likely to be imposed by future 
21regulations and legislation on emissions of greenhouse gases.

22(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; 
2395-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff. 
248-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)


25 (20 ILCS 3855/1-20)

 
 
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1 Sec. 1-20. General powers of the Agency. 
2 (a) The Agency is authorized to do each of the following:
3  (1) Develop electricity procurement plans to ensure 
4 adequate, reliable, affordable, efficient, and 
5 environmentally sustainable electric service at the lowest 
6 total cost over time, taking into account any benefits of 
7 price stability, for electric utilities that on December 
8 31, 2005 provided electric service to at least 100,000 
9 customers in Illinois. The procurement plans shall be 
10 updated on an annual basis and shall include electricity 
11 generated from renewable resources sufficient to achieve 
12 the standards specified in this Act. For periods beginning 
13 on and after June 1, 2012, the procurement plans shall also 
14 include procurement of renewable energy credits, in 
15 accordance with subsection (c) of Section 1-75 of this Act, 
16 in amounts projected to be sufficient to meet the renewable 
17 energy resources standard specified in subsection (c) of 
18 Section 1-75 of this Act with respect to the kilowatthour 
19 usage of delivery services non-eligible retail customers 
20 in such electric utilities' service areas. 
21  (2) Conduct competitive procurement processes to 
22 procure the supply resources identified in the procurement 
23 plan, pursuant to Section 16-111.5 of the Public Utilities 
24 Act.
25  (3) Develop electric generation and co-generation 
26 facilities that use indigenous coal or renewable 
 
 
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1 resources, or both, financed with bonds issued by the 
2 Illinois Finance Authority.
3  (4) Supply electricity from the Agency's facilities at 
4 cost to one or more of the following: municipal electric 
5 systems, governmental aggregators, or rural electric 
6 cooperatives in Illinois.
7 (b) Except as otherwise limited by this Act, the Agency has 
8all of the powers necessary or convenient to carry out the 
9purposes and provisions of this Act, including without 
10limitation, each of the following:
11  (1) To have a corporate seal, and to alter that seal at 
12 pleasure, and to use it by causing it or a facsimile to be 
13 affixed or impressed or reproduced in any other manner.
14  (2) To use the services of the Illinois Finance 
15 Authority necessary to carry out the Agency's purposes.
16  (3) To negotiate and enter into loan agreements and 
17 other agreements with the Illinois Finance Authority.
18  (4) To obtain and employ personnel and hire consultants 
19 that are necessary to fulfill the Agency's purposes, and to 
20 make expenditures for that purpose within the 
21 appropriations for that purpose.
22  (5) To purchase, receive, take by grant, gift, devise, 
23 bequest, or otherwise, lease, or otherwise acquire, own, 
24 hold, improve, employ, use, and otherwise deal in and with, 
25 real or personal property whether tangible or intangible, 
26 or any interest therein, within the State.
 
 
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1  (6) To acquire real or personal property, whether 
2 tangible or intangible, including without limitation 
3 property rights, interests in property, franchises, 
4 obligations, contracts, and debt and equity securities, 
5 and to do so by the exercise of the power of eminent domain 
6 in accordance with Section 1-21; except that any real 
7 property acquired by the exercise of the power of eminent 
8 domain must be located within the State.
9  (7) To sell, convey, lease, exchange, transfer, 
10 abandon, or otherwise dispose of, or mortgage, pledge, or 
11 create a security interest in, any of its assets, 
12 properties, or any interest therein, wherever situated.
13  (8) To purchase, take, receive, subscribe for, or 
14 otherwise acquire, hold, make a tender offer for, vote, 
15 employ, sell, lend, lease, exchange, transfer, or 
16 otherwise dispose of, mortgage, pledge, or grant a security 
17 interest in, use, and otherwise deal in and with, bonds and 
18 other obligations, shares, or other securities (or 
19 interests therein) issued by others, whether engaged in a 
20 similar or different business or activity.
21  (9) To make and execute agreements, contracts, and 
22 other instruments necessary or convenient in the exercise 
23 of the powers and functions of the Agency under this Act, 
24 including contracts with any person, local government, 
25 State agency, or other entity; and all State agencies and 
26 all local governments are authorized to enter into and do 
 
 
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1 all things necessary to perform any such agreement, 
2 contract, or other instrument with the Agency. No such 
3 agreement, contract, or other instrument shall exceed 40 
4 years.
5  (10) To lend money, invest and reinvest its funds in 
6 accordance with the Public Funds Investment Act, and take 
7 and hold real and personal property as security for the 
8 payment of funds loaned or invested.
9  (11) To borrow money at such rate or rates of interest 
10 as the Agency may determine, issue its notes, bonds, or 
11 other obligations to evidence that indebtedness, and 
12 secure any of its obligations by mortgage or pledge of its 
13 real or personal property, machinery, equipment, 
14 structures, fixtures, inventories, revenues, grants, and 
15 other funds as provided or any interest therein, wherever 
16 situated.
17  (12) To enter into agreements with the Illinois Finance 
18 Authority to issue bonds whether or not the income 
19 therefrom is exempt from federal taxation.
20  (13) To procure insurance against any loss in 
21 connection with its properties or operations in such amount 
22 or amounts and from such insurers, including the federal 
23 government, as it may deem necessary or desirable, and to 
24 pay any premiums therefor.
25  (14) To negotiate and enter into agreements with 
26 trustees or receivers appointed by United States 
 
 
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1 bankruptcy courts or federal district courts or in other 
2 proceedings involving adjustment of debts and authorize 
3 proceedings involving adjustment of debts and authorize 
4 legal counsel for the Agency to appear in any such 
5 proceedings.
6  (15) To file a petition under Chapter 9 of Title 11 of 
7 the United States Bankruptcy Code or take other similar 
8 action for the adjustment of its debts.
9  (16) To enter into management agreements for the 
10 operation of any of the property or facilities owned by the 
11 Agency.
12  (17) To enter into an agreement to transfer and to 
13 transfer any land, facilities, fixtures, or equipment of 
14 the Agency to one or more municipal electric systems, 
15 governmental aggregators, or rural electric agencies or 
16 cooperatives, for such consideration and upon such terms as 
17 the Agency may determine to be in the best interest of the 
18 citizens of Illinois.
19  (18) To enter upon any lands and within any building 
20 whenever in its judgment it may be necessary for the 
21 purpose of making surveys and examinations to accomplish 
22 any purpose authorized by this Act.
23  (19) To maintain an office or offices at such place or 
24 places in the State as it may determine.
25  (20) To request information, and to make any inquiry, 
26 investigation, survey, or study that the Agency may deem 
 
 
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1 necessary to enable it effectively to carry out the 
2 provisions of this Act.
3  (21) To accept and expend appropriations.
4  (22) To engage in any activity or operation that is 
5 incidental to and in furtherance of efficient operation to 
6 accomplish the Agency's purposes.
7  (23) To adopt, revise, amend, and repeal rules with 
8 respect to its operations, properties, and facilities as 
9 may be necessary or convenient to carry out the purposes of 
10 this Act, subject to the provisions of the Illinois 
11 Administrative Procedure Act and Sections 1-22 and 1-35 of 
12 this Act.
13  (24) To establish and collect charges and fees as 
14 described in this Act.

15  (25) To conduct competitive gasification feedstock 
16 procurement processes to procure the feedstocks for the 
17 initial clean coal facility in accordance with the 
18 requirements of Section 1-78 of this Act. To manage 
19 procurement of substitute natural gas from a facility that 
20 meets the criteria specified in subsection (a) of Section 
21 1-58 of this Act, on terms and conditions that may be 
22 approved by the Agency pursuant to subsection (d) of 
23 Section 1-58 of this Act, to support the operations of 
24 State agencies and local governments that agree to such 
25 terms and conditions. This procurement process is not 
26 subject to the Procurement Code.
 
 
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1  (26) To review, revise, and approve sourcing 
2 agreements and mediate and resolve disputes between 
3 electric utilities or alternative retail electric 
4 suppliers and the initial clean coal facility pursuant to 
5 paragraph (4) of subsection (d) of Section 1-75 of this 
6 Act.
7(Source: P.A. 95-481, eff. 8-28-07; 96-784, eff. 8-28-09; 
896-1000, eff. 7-2-10.)

9 (20 ILCS 3855/1-56)
10 Sec. 1-56. Illinois Power Agency Renewable Energy 
11Resources Fund.
12 (a) The Illinois Power Agency Renewable Energy Resources 
13Fund is created as a special fund in the State treasury.
14 (b) The Illinois Power Agency Renewable Energy Resources 
15Fund shall be administered by the Agency to procure renewable 
16energy resources. Prior to June 1, 2011, resources procured 
17pursuant to this Section shall be procured from facilities 
18located in Illinois, provided the resources are available from 
19those facilities. If resources are not available in Illinois, 
20then they shall be procured in states that adjoin Illinois. If 
21resources are not available in Illinois or in states that 
22adjoin Illinois, then they may be purchased elsewhere. 
23Beginning June 1, 2011, resources procured pursuant to this 
24Section shall be procured from facilities located in Illinois 
25or states that adjoin Illinois. If resources are not available 
 
 
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1in Illinois or in states that adjoin Illinois, then they may be 
2procured elsewhere. To the extent available, at least 75% of 
3these renewable energy resources shall come from wind 
4generation. Of the renewable energy resources procured 
5pursuant to this Section at least the following specified 
6percentages shall come from photovoltaics on the following 
7schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by 
8June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the 
9renewable energy resources procured pursuant to this Section at 
10least the following percentages shall come from distributed 
11renewable energy generation devices: 0.5% by June 1, 2013, 
120.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. 
13To the extent available, half of the renewable energy resources 
14procured from distributed renewable energy generation shall 
15come from devices of less than 25 kilowatts in nameplate 
16capacity. Renewable energy resources procured from distributed 
17generation devices may also count towards the required 
18percentages for wind and solar photovoltaics. Procurement of 
19renewable energy resources from distributed renewable energy 
20generation devices shall be done on an annual basis through 
21multi-year contracts of no less than 5 years. 
22 The Agency shall create credit requirements for suppliers 
23of distributed renewable energy. In order to minimize the 
24administrative burden on contracting entities, the Agency 
25shall solicit the use of third-party organizations to aggregate 
26distributed renewable energy into groups of no less than one 
 
 
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1megawatt in installed capacity. These third-party 
2organizations shall administer contracts with individual 
3distributed renewable energy generation device owners. An 
4individual distributed renewable energy generation device 
5owner shall have the ability to measure the output of his or 
6her distributed renewable energy generation device.
7 (c) The Agency shall procure renewable energy resources at 
8least once each year in conjunction with a procurement event 
9for electric utilities required to comply with Section 1-75 of 
10the Act and shall, whenever possible, enter into long-term 
11contracts on an annual basis for a portion of the incremental 
12requirement for the given procurement year. For periods 
13beginning on and after June 1, 2012, the Agency shall use the 
14Illinois Power Agency Renewable Energy Resources Fund, until 
15depleted, to procure renewable energy credits for the purposes 
16specified in paragraphs (2) and (6) of subsection (c) of 
17Section 1-75 of this Act. For each procurement of renewable 
18energy credits pursuant to this Section for periods beginning 
19on and after June 1, 2012, the Agency shall designate an 
20electric utility service area to which the procurement 
21pertains. 
22 (d) The price paid to procure renewable energy credits 
23using monies from the Illinois Power Agency Renewable Energy 
24Resources Fund shall not exceed the winning bid prices paid for 
25like resources procured for electric utilities required to 
26comply with Section 1-75 of this Act.
 
 
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1 (e) All renewable energy credits procured using monies from 
2the Illinois Power Agency Renewable Energy Resources Fund shall 
3be permanently retired.
4 (f) The procurement process described in this Section is 
5exempt from the requirements of the Illinois Procurement Code, 
6pursuant to Section 20-10 of that Code.
7 (g) All disbursements from the Illinois Power Agency 
8Renewable Energy Resources Fund shall be made only upon 
9warrants of the Comptroller drawn upon the Treasurer as 
10custodian of the Fund upon vouchers signed by the Director or 
11by the person or persons designated by the Director for that 
12purpose. The Comptroller is authorized to draw the warrant upon 
13vouchers so signed. The Treasurer shall accept all warrants so 
14signed and shall be released from liability for all payments 
15made on those warrants.
16 (h) The Illinois Power Agency Renewable Energy Resources 
17Fund shall not be subject to sweeps, administrative charges, or 
18chargebacks, including, but not limited to, those authorized 
19under Section 8h of the State Finance Act, that would in any 
20way result in the transfer of any funds from this Fund to any 
21other fund of this State or in having any such funds utilized 
22for any purpose other than the express purposes set forth in 
23this Section.

24 (i) The Illinois Power Agency Renewable Energy Resources 
25Fund shall be terminated upon depletion of all funds therein 
26through the purchase of renewable energy credits. 
 
 
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1(Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10; 
296-1437, eff. 8-17-10.)

3 (20 ILCS 3855/1-75)
4 Sec. 1-75. Planning and Procurement Bureau. The Planning 
5and Procurement Bureau has the following duties and 
6responsibilities:
7 (a) The Planning and Procurement Bureau shall each year, 
8beginning in 2008, develop procurement plans and conduct 
9competitive procurement processes in accordance with the 
10requirements of Section 16-111.5 of the Public Utilities Act 
11for the eligible retail customers of electric utilities that on 
12December 31, 2005 provided electric service to at least 100,000 
13customers in Illinois, and for years beginning on and after 
14June 1, 2012, for the procurement of renewable energy credits 
15in respect of the kilowatthour usage of delivery services 
16non-eligible retail customers in such electric utilities' 
17service areas. For the purposes of this Section, the term 
18"eligible retail customers" has the same definition as found in 
19Section 16-111.5(a) of the Public Utilities Act.
20  (1) The Agency shall each year, beginning in 2008, as 
21 needed, issue a request for qualifications for experts or 
22 expert consulting firms to develop the procurement plans in 
23 accordance with Section 16-111.5 of the Public Utilities 
24 Act. In order to qualify an expert or expert consulting 
25 firm must have:
 
 
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1   (A) direct previous experience assembling 
2 large-scale power supply plans or portfolios for 
3 end-use customers;
4   (B) an advanced degree in economics, mathematics, 
5 engineering, risk management, or a related area of 
6 study;
7   (C) 10 years of experience in the electricity 
8 sector, including managing supply risk;
9   (D) expertise in wholesale electricity market 
10 rules, including those established by the Federal 
11 Energy Regulatory Commission and regional transmission 
12 organizations;
13   (E) expertise in credit protocols and familiarity 
14 with contract protocols;
15   (F) adequate resources to perform and fulfill the 
16 required functions and responsibilities; and
17   (G) the absence of a conflict of interest and 
18 inappropriate bias for or against potential bidders or 
19 the affected electric utilities.
20  (2) The Agency shall each year, as needed, issue a 
21 request for qualifications for a procurement administrator 
22 to conduct the competitive procurement processes in 
23 accordance with Section 16-111.5 of the Public Utilities 
24 Act. In order to qualify an expert or expert consulting 
25 firm must have:
26   (A) direct previous experience administering a 
 
 
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1 large-scale competitive procurement process;
2   (B) an advanced degree in economics, mathematics, 
3 engineering, or a related area of study;
4   (C) 10 years of experience in the electricity 
5 sector, including risk management experience;
6   (D) expertise in wholesale electricity market 
7 rules, including those established by the Federal 
8 Energy Regulatory Commission and regional transmission 
9 organizations; 
10   (E) expertise in credit and contract protocols;
11   (F) adequate resources to perform and fulfill the 
12 required functions and responsibilities; and
13   (G) the absence of a conflict of interest and 
14 inappropriate bias for or against potential bidders or 
15 the affected electric utilities.
16  (3) The Agency shall provide affected utilities and 
17 other interested parties with the lists of qualified 
18 experts or expert consulting firms identified through the 
19 request for qualifications processes that are under 
20 consideration to develop the procurement plans and to serve 
21 as the procurement administrator. The Agency shall also 
22 provide each qualified expert's or expert consulting 
23 firm's response to the request for qualifications. All 
24 information provided under this subparagraph shall also be 
25 provided to the Commission. The Agency may provide by rule 
26 for fees associated with supplying the information to 
 
 
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1 utilities and other interested parties. These parties 
2 shall, within 5 business days, notify the Agency in writing 
3 if they object to any experts or expert consulting firms on 
4 the lists. Objections shall be based on:
5   (A) failure to satisfy qualification criteria;
6   (B) identification of a conflict of interest; or
7   (C) evidence of inappropriate bias for or against 
8 potential bidders or the affected utilities.
9  The Agency shall remove experts or expert consulting 
10 firms from the lists within 10 days if there is a 
11 reasonable basis for an objection and provide the updated 
12 lists to the affected utilities and other interested 
13 parties. If the Agency fails to remove an expert or expert 
14 consulting firm from a list, an objecting party may seek 
15 review by the Commission within 5 days thereafter by filing 
16 a petition, and the Commission shall render a ruling on the 
17 petition within 10 days. There is no right of appeal of the 
18 Commission's ruling.
19  (4) The Agency shall issue requests for proposals to 
20 the qualified experts or expert consulting firms to develop 
21 a procurement plan for the affected utilities and to serve 
22 as procurement administrator.
23  (5) The Agency shall select an expert or expert 
24 consulting firm to develop procurement plans based on the 
25 proposals submitted and shall award one-year contracts to 
26 those selected with an option for the Agency for a one-year 
 
 
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1 renewal.
2  (6) The Agency shall select an expert or expert 
3 consulting firm, with approval of the Commission, to serve 
4 as procurement administrator based on the proposals 
5 submitted. If the Commission rejects, within 5 days, the 
6 Agency's selection, the Agency shall submit another 
7 recommendation within 3 days based on the proposals 
8 submitted. The Agency shall award a one-year contract to 
9 the expert or expert consulting firm so selected with 
10 Commission approval with an option for the Agency for a 
11 one-year renewal.
12 (a-5) The Planning and Procurement Bureau shall at least 
13every 5 years beginning in 2012 develop feedstock procurement 
14plans and conduct competitive feedstock procurement processes 
15in accordance with the requirements of Section 1-78 of this 
16Act.
17  (1) The Agency shall, at least once every 5 years 
18 beginning in 2012, issue a request for qualifications for 
19 experts or expert consulting firms to develop the feedstock 
20 procurement plans in accordance with Section 1-78 of this 
21 Act. In order to qualify, an expert or, in the case of an 
22 expert consulting firm, the individual who shall be 
23 directly responsible for the work, must have:
24   (A) direct previous experience assembling large 
25 scale feedstock supply plans or portfolios involving 
26 coal and natural gas for industrial customers;
 
 
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1   (B) an advanced degree in economics, mathematics, 
2 engineering, risk management, or a related area of 
3 study;
4   (C) ten years of experience in the energy sector, 
5 including coal and gas procurement and managing fuel 
6 supply risk;
7   (D) expertise in the feedstock markets, which may 
8 be particularized to the specific type of feedstock to 
9 be purchased in that procurement event;
10   (E) expertise in credit protocols and familiarity 
11 with contract protocols;
12   (F) adequate resources to perform and fulfill the 
13 required functions and responsibilities; and
14   (G) the absence of a conflict of interest and 
15 inappropriate bias or against potential bidders or the 
16 initial clean coal facility.
17  (2) The Agency shall at least every 5 years beginning 
18 in 2012, as needed, issue a request for qualifications for 
19 a feedstock procurement administrator to conduct the 
20 competitive feedstock procurement processes in accordance 
21 with Section 1-78 of this Act. In order to qualify, an 
22 expert or, in the case of an expert consulting firm, the 
23 individual who shall be directly responsible for the work, 
24 must have:
25   (A) direct previous experience administering a 
26 large scale competitive feedstock procurement process 
 
 
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1 involving coal and natural gas;
2   (B) an advanced degree in economics, mathematics, 
3 engineering, or a related area of study;
4   (C) ten years of experience in the energy sector, 
5 including coal and gas procurement and managing fuel 
6 supply risk;
7   (D) expertise in feedstock market rules and 
8 practices, which may be particularized to the specific 
9 type of feedstock to be purchased in that procurement 
10 event;
11   (E) expertise in credit and contract protocols;
12   (F) adequate resources to perform and fulfill the 
13 required functions and responsibilities; and
14   (G) the absence of a conflict of interest and 
15 inappropriate bias for or against potential bidders or 
16 the initial clean coal facility.
17  (3) The Agency shall provide the initial clean coal 
18 facility and other interested parties with the lists of 
19 qualified experts or expert consulting firms identified 
20 through the request for qualifications processes that are 
21 under consideration to develop the feedstock procurement 
22 plans and to serve as the feedstock procurement 
23 administrator. The Agency shall also provide the initial 
24 clean coal facility and other interested parties with each 
25 qualified expert's or expert consulting firm's response to 
26 the request for qualifications. All information provided 
 
 
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1 under this subparagraph (3) shall also be provided to the 
2 Commission. The Agency may provide by rule for fees 
3 associated with supplying the information to the initial 
4 clean coal facility and other interested parties. The 
5 initial clean coal facility and other interested parties 
6 shall, within 5 business days after receiving the lists and 
7 information, notify the Agency in writing if they object to 
8 any experts or expert consulting firms on the lists. 
9 Objections shall be based on:
10   (A) failure to satisfy qualification criteria;
11   (B) identification of a conflict of interest; or
12   (C) evidence of inappropriate bias for or against 
13 potential bidders or the initial clean coal facility.
14  The Agency shall remove experts or expert consulting 
15 firms from the lists within 10 days after receiving the 
16 objections if there is a reasonable basis for an objection 
17 and provide the updated lists to the initial clean coal 
18 facility and other interested parties. If the Agency fails 
19 to remove an expert or expert consulting firm from a list, 
20 then an objecting party may seek review by the Commission 
21 within 5 days thereafter by filing a petition, and the 
22 Commission shall render a ruling on the petition within 10 
23 days. There is no right of appeal of the Commission's 
24 ruling.
25  (4) The Agency shall issue requests for proposals to 
26 the qualified experts or expert consulting firms to develop 
 
 
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1 a feedstock procurement plan for the initial clean coal 
2 facility and to serve as feedstock procurement 
3 administrator.
4  (5) The Agency shall select an expert or expert 
5 consulting firm to develop feedstock procurement plans 
6 based on the proposals submitted and shall award at least 
7 one-year contracts to those selected with an option for the 
8 Agency for renewal for an additional length of time equal 
9 to the term of the contract.
10  (6) The Agency shall select, with approval of the 
11 Commission, an expert or expert consulting firm to serve as 
12 feedstock procurement administrator based on the proposals 
13 submitted. If the Commission rejects the Agency's 
14 selection within 5 days after being notified of the 
15 Agency's selection, then the Agency shall submit another 
16 recommendation within 3 days after the Commission's 
17 rejection based on the proposals submitted. The Agency 
18 shall award a 5-year contract to the expert or expert 
19 consulting firm so selected with Commission approval with 
20 an option for the Agency for a 5-year renewal. 
21 (b) The experts or expert consulting firms retained by the 
22Agency under subsection (a) of this Section shall, as 
23appropriate, prepare procurement plans, and conduct a 
24competitive procurement process as prescribed in Section 
2516-111.5 of the Public Utilities Act, to ensure adequate, 
26reliable, affordable, efficient, and environmentally 
 
 
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1sustainable electric service at the lowest total cost over 
2time, taking into account any benefits of price stability, for 
3eligible retail customers of electric utilities that on 
4December 31, 2005 provided electric service to at least 100,000 
5customers in the State of Illinois.
6 (b-5) The experts or expert consulting firms retained by 
7the Agency pursuant to subsection (a-5) shall, as appropriate, 
8prepare feedstock procurement plans and conduct a competitive 
9feedstock procurement process as prescribed in Section 1-78 of 
10this Act to ensure adequate, reliable, affordable feedstocks, 
11taking into account any benefits of price stability, for the 
12initial clean coal facility. 
13 (c) Renewable portfolio standard.
14  (1) The procurement plans shall include cost-effective 
15 renewable energy resources. A minimum percentage of each 
16 utility's total supply to serve the load of eligible retail 
17 customers, as defined in Section 16-111.5(a) of the Public 
18 Utilities Act, procured for each of the following years 
19 shall be generated from cost-effective renewable energy 
20 resources: at least 2% by June 1, 2008; at least 4% by June 
21 1, 2009; at least 5% by June 1, 2010; at least 6% by June 1, 
22 2011; at least 7% by June 1, 2012; at least 8% by June 1, 
23 2013; at least 9% by June 1, 2014; at least 10% by June 1, 
24 2015; and increasing by at least 1.5% each year thereafter 
25 to at least 25% by June 1, 2025. For periods beginning on 
26 and after June 1, 2012, the procurement plans shall include 
 
 
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1 the procurement of renewable energy credits equal to the 
2 projected kilowatthour usage of the delivery services 
3 non-eligible retail customers within the service area of 
4 the electric utility times the applicable renewable energy 
5 resource percentage for that year as set forth under this 
6 paragraph (1). To the extent that it is available, at least 
7 75% of the renewable energy resources used to meet these 
8 standards shall come from wind generation and, beginning on 
9 June 1, 2011, at least the following percentages of the 
10 renewable energy resources used to meet these standards 
11 shall come from photovoltaics on the following schedule: 
12 0.5% by June 1, 2012, 1.5% by June 1, 2013; 3% by June 1, 
13 2014; and 6% by June 1, 2015 and thereafter. Of the 
14 renewable energy resources procured pursuant to this 
15 Section at least the following percentages shall come from 
16 distributed renewable energy generation devices: 0.5% by 
17 June 1, 2013, 0.75% by June 1, 2014, and 1% by June 1, 2015 
18 and thereafter. To the extent available, half of the 
19 renewable energy resources procured from distributed 
20 renewable energy generation shall come from devices of less 
21 than 25 kilowatts in nameplate capacity. Renewable energy 
22 resources procured from distributed generation devices may 
23 also count towards the required percentages for wind and 
24 solar photovoltaics. Procurement of renewable energy 
25 resources from distributed renewable energy generation 
26 devices shall be done on an annual basis through multi-year 
 
 
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1 contracts of no less than 5 years.
2  The Agency shall create credit requirements for 
3 suppliers of distributed renewable energy. In order to 
4 minimize the administrative burden on contracting 
5 entities, the Agency shall solicit the use of third-party 
6 organizations to aggregate distributed renewable energy 
7 into groups of no less than one megawatt in installed 
8 capacity. These third-party organizations shall administer 
9 contracts with individual distributed renewable energy 
10 generation device owners. An individual distributed 
11 renewable energy generation device owner shall have the 
12 ability to measure the output of his or her distributed 
13 renewable energy generation device. For purposes of this 
14 subsection (c), "cost-effective" means that the costs of 
15 procuring renewable energy resources to serve the load of 
16 the electric utility's eligible retail customers and the 
17 costs of procuring renewable energy credits with respect to 
18 the kilowatthour usage of the delivery services 
19 non-eligible retail customers within the electric 
20 utility's service area do not cause the applicable limits 
21 limit stated in paragraph (2) of this subsection (c) to be 
22 exceeded and do not exceed benchmarks based on market 
23 prices for renewable energy resources in the region, which 
24 shall be developed by the procurement administrator, in 
25 consultation with the Commission staff, Agency staff, and 
26 the procurement monitor and shall be subject to Commission 
 
 
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1 review and approval; provided that only the benchmarks, and 
2 not the remainder of the definition of "cost-effective", 
3 shall be applicable to the procurement of renewable energy 
4 credits on and after June 1, 2012 in respect of the 
5 forecasted kilowatthour usage of the delivery services 
6 non-eligible retail customers in the electric utility's 
7 service area. 
8  (2) For purposes of this subsection (c), the required 
9 procurement of cost-effective renewable energy resources 
10 to serve the load of the electric utility's eligible retail 
11 customers for a particular year shall be measured as a 
12 percentage of the actual amount of electricity 
13 (megawatt-hours) supplied by the electric utility to 
14 eligible retail customers in the planning year ending 
15 immediately prior to the procurement and, for periods 
16 beginning on and after June 1, 2012, the required 
17 procurement of cost effective renewable energy credits 
18 with respect to the delivery services non-eligible retail 
19 customers of the electric utility shall be based on the 
20 actual amount of electricity (megawatt-hours) delivered by 
21 the electric utility to delivery services non-eligible 
22 retail customers in its service area in the planning year 
23 ending immediately prior to the procurement. For purposes 
24 of this subsection (c), the amount paid per kilowatthour 
25 means the total amount paid for electric service expressed 
26 on a per kilowatthour basis. For purposes of this 
 
 
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1 subsection (c), the total amount paid for electric service 
2 includes without limitation amounts paid for supply, 
3 transmission, distribution, surcharges, and add-on taxes.
4  Notwithstanding the requirements of this subsection 
5 (c), the total of renewable energy resources procured 
6 pursuant to the procurement plan with respect to the load 
7 of the electric utility's eligible retail customers for any 
8 single year shall be reduced by an amount necessary to 
9 limit the annual estimated average net increase due to the 
10 costs of these resources included in the amounts paid by 
11 eligible retail customers in connection with electric 
12 service to:
13   (A) in 2008, no more than 0.5% of the amount paid 
14 per kilowatthour by those customers during the year 
15 ending May 31, 2007;
16   (B) in 2009, the greater of an additional 0.5% of 
17 the amount paid per kilowatthour by those customers 
18 during the year ending May 31, 2008 or 1% of the amount 
19 paid per kilowatthour by those customers during the 
20 year ending May 31, 2007;
21   (C) in 2010, the greater of an additional 0.5% of 
22 the amount paid per kilowatthour by those customers 
23 during the year ending May 31, 2009 or 1.5% of the 
24 amount paid per kilowatthour by those customers during 
25 the year ending May 31, 2007;
26   (D) in 2011, the greater of an additional 0.5% of 
 
 
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1 the amount paid per kilowatthour by those customers 
2 during the year ending May 31, 2010 or 2% of the amount 
3 paid per kilowatthour by those customers during the 
4 year ending May 31, 2007; and 
5   (E) thereafter, the amount of renewable energy 
6 resources procured pursuant to the procurement plan 
7 for any single year shall be reduced by an amount 
8 necessary to limit the estimated average net increase 
9 due to the cost of these resources included in the 
10 amounts paid by eligible retail customers in 
11 connection with electric service to no more than the 
12 greater of 2.015% of the amount paid per kilowatthour 
13 by those customers during the year ending May 31, 2007 
14 or the incremental amount per kilowatthour paid for 
15 these resources in 2011.
16   The foregoing limitations shall not be applicable 
17 to the purchase, for periods beginning on and after 
18 June 1, 2012, of renewable energy credits in respect of 
19 the projected kilowatthour usage of the electric 
20 utility's delivery services non-eligible retail 
21 customers. For periods beginning on and after June 1, 
22 2012, any excluded renewable energy resources contract 
23 costs shall be recoverable by the electric utility 
24 through its tariffed charges for delivery services 
25 pursuant to Section 16-108 of the Public Utilities Act 
26 to its residential class delivery services 
 
 
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1 non-eligible retail customers.
2   Notwithstanding the requirements of this 
3 subsection (c), for years beginning on and after June 
4 1, 2012, the total amount of renewable energy credits 
5 procured pursuant to the procurement plan with respect 
6 to the kilowatthour usage of the delivery services 
7 non-eligible retail customers in the electric 
8 utility's service area shall be reduced by an amount 
9 necessary to limit the cost of renewable energy credits 
10 and excluded renewable energy resources costs included 
11 in the electric utility's charges per kilowatthour for 
12 delivery services to its delivery services 
13 non-eligible retail customers to an amount equal to no 
14 more than 2.015% of the amount paid by the electric 
15 utility's eligible retail customers per kilowatthour 
16 for electric service during the year ended May 31, 
17 2007. 
18   No later than June 30, 2011, the Commission shall 
19 review the limitation on the amount of renewable energy 
20 resources procured pursuant to this subsection (c) and 
21 report to the General Assembly its findings as to 
22 whether that limitation unduly constrains the 
23 procurement of cost-effective renewable energy 
24 resources.
25  (3) (Blank). Through June 1, 2011, renewable energy 
26 resources shall be counted for the purpose of meeting the 
 
 
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1 renewable energy standards set forth in paragraph (1) of 
2 this subsection (c) only if they are generated from 
3 facilities located in the State, provided that 
4 cost-effective renewable energy resources are available 
5 from those facilities. If those cost-effective resources 
6 are not available in Illinois, they shall be procured in 
7 states that adjoin Illinois and may be counted towards 
8 compliance. If those cost-effective resources are not 
9 available in Illinois or in states that adjoin Illinois, 
10 they shall be purchased elsewhere and shall be counted 
11 towards compliance. After June 1, 2011, cost-effective 
12 renewable energy resources located in Illinois and in 
13 states that adjoin Illinois may be counted towards 
14 compliance with the standards set forth in paragraph (1) of 
15 this subsection (c). If those cost-effective resources are 
16 not available in Illinois or in states that adjoin 
17 Illinois, they shall be purchased elsewhere and shall be 
18 counted towards compliance. 
19  (4) The electric utility shall retire all renewable 
20 energy credits used to comply with the standard.
21  (5) Beginning with the year commencing June 1, 2010, 
22 and ending with the year commencing June 1, 2011, an 
23 electric utility subject to this subsection (c) shall apply 
24 the lesser of the maximum alternative compliance payment 
25 rate or the most recent estimated alternative compliance 
26 payment rate for its service territory for the 
 
 
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1 corresponding compliance period, established pursuant to 
2 subsection (d) of Section 16-115D of the Public Utilities 
3 Act to its retail customers that take service pursuant to 
4 the electric utility's hourly pricing tariff or tariffs. 
5 The electric utility shall retain all amounts collected as 
6 a result of the application of the alternative compliance 
7 payment rate or rates to such customers, and, beginning in 
8 2011, the utility shall include in the information provided 
9 under item (1) of subsection (d) of Section 16-111.5 of the 
10 Public Utilities Act the amounts collected under the 
11 alternative compliance payment rate or rates for the prior 
12 year ending May 31. Notwithstanding any limitation on the 
13 procurement of renewable energy resources imposed by item 
14 (2) of this subsection (c), the Agency shall increase its 
15 spending on the purchase of renewable energy resources to 
16 be procured by the electric utility for the next plan year 
17 by an amount equal to the amounts collected by the utility 
18 under the alternative compliance payment rate or rates in 
19 the prior year ending May 31. For years commencing on and 
20 after June 1, 2012, the kilowatthours supplied by the 
21 electric utility to its retail customers that take service 
22 pursuant to the electric utility's hourly pricing tariff or 
23 tariffs shall be considered usage of delivery services 
24 non-eligible retail customers.
25  (6) Each annual procurement plan for periods beginning 
26 on and after June 1, 2012 shall include (i) the procurement 
 
 
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1 of electricity from cost-effective renewable energy 
2 resources to meet the renewable energy resource 
3 requirements specified in paragraph (2) of this subsection 
4 (c) with respect to the load of the electric utility's 
5 eligible retail customers and (ii) the procurement of 
6 renewable energy credits to meet the renewable energy 
7 resource requirements specified in paragraph (2) of this 
8 subsection (c) with respect to the kilowatthour usage of 
9 the electric utility's delivery services non-eligible 
10 retail customers; provided that the electric utility's 
11 obligation to purchase renewable energy credits with 
12 respect to the kilowatthour usage of delivery services 
13 non-eligible retail customers shall be reduced by the 
14 amount of any purchases of renewable energy credits by the 
15 Agency for the year in respect of the electric utility's 
16 service area pursuant to Section 1-56 of this Act using the 
17 Illinois Power Agency Renewable Energy Resources Fund. All 
18 procurements of bundled renewable energy resources and 
19 renewable energy credits in the procurement plans of the 
20 electric utilities shall be pursuant to competitive 
21 bidding processes and shall be approved by the Commission 
22 pursuant to Section 16-111.5 of the Public Utilities Act. 
23 (d) Clean coal portfolio standard.
24  (1) The General Assembly finds that there are abundant 
25 and cost-effective supplies of high volatile rank 
26 bituminous coal with a sulfur content of at least 1.7 
 
 
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1 pounds per million btu energy content, and that it is 
2 technologically feasible to produce electric energy using 
3 such coal supplies reliably. The General Assembly further 
4 finds that state-of-the-art gasification systems are 
5 available to convert coal supplies with the foregoing 
6 characteristics into gas and that it is feasible to use 
7 such gas to generate electric energy without exceeding 
8 allowable emission rates for sulfur dioxide, nitrogen 
9 oxides, carbon monoxide, particulates, and mercury for a 
10 natural gas-fired combined-cycle facility of the same size 
11 as and in the same location as a clean coal facility 
12 incorporating a gasification system and a combined cycle 
13 power block. The General Assembly also finds that it is 
14 feasible to engineer and construct systems designed to 
15 capture and sequester the percentages of the carbon dioxide 
16 emissions from clean coal facilities as specified in this 
17 Act. Accordingly, the General Assembly finds it necessary 
18 for the health, safety, welfare, and prosperity of Illinois 
19 citizens to require Illinois electric utilities and 
20 alternative electric retail electric suppliers to contract 
21 with the initial clean coal facility to meet a portion of 
22 the needs of each such electric utility's and alternative 
23 retail electric supplier's retail load on the terms and 
24 conditions described under this Act.
25  The procurement plans under subsection (a) of this 
26 Section shall include cost effective electricity generated 
 
 
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1 using clean coal. Each electric utility shall enter into 
2 one or more sourcing agreements with the initial clean coal 
3 facility, as provided in paragraph (3) of this subsection 
4 (d), covering electricity generated by the initial clean 
5 coal facility representing (A) at least 5% of that each 
6 utility's total supply to serve the load of eligible retail 
7 customers in the immediately preceding year 2015 and each 
8 year thereafter, as described in paragraph (3) of this 
9 subsection (d), or (B) such lesser amount as may be 
10 available from the initial clean coal facility, reduced by 
11 subject to the limits on the amount of power to be 
12 purchased specified in paragraph (2) of this subsection 
13 (d). It is the goal of the State that by January 1, 2025, 
14 25% of the electricity used in the State shall be generated 
15 by cost-effective clean coal facilities. For purposes of 
16 this subsection (d), "cost-effective" means that the 
17 expenditures pursuant to such sourcing agreements do not 
18 cause the limit stated in paragraph (2) of this subsection 
19 (d) to be exceeded and do not exceed cost-based benchmarks, 
20 which shall be developed to assess all expenditures 
21 pursuant to such sourcing agreements covering electricity 
22 generated by clean coal facilities, other than the initial 
23 clean coal facility, by the procurement administrator, in 
24 consultation with the Commission staff, Agency staff, and 
25 the procurement monitor and shall be subject to Commission 
26 review and approval.
 
 
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1  (A) A utility party to a sourcing agreement shall 
2 immediately retire any emission credits that it receives in 
3 connection with the electricity covered by such agreement.
4  (B) Utilities shall maintain adequate records 
5 documenting the purchases under the sourcing agreement to 
6 comply with this subsection (d) and shall file an 
7 accounting with the load forecast that must be filed with 
8 the Agency by July 15 of each year, in accordance with 
9 subsection (d) of Section 16-111.5 of the Public Utilities 
10 Act.
11  (C) A utility shall be deemed to have complied with the 
12 clean coal portfolio standard specified in this subsection 
13 (d) if the utility enters into a sourcing agreement as 
14 required by this subsection (d). 
15  (2) For purposes of this subsection (d), the required 
16 execution of sourcing agreements with the initial clean 
17 coal facility for a particular year shall be measured as a 
18 percentage of the actual amount of electricity 
19 (megawatt-hours) supplied by the electric utility to 
20 eligible retail customers in the immediately preceding 
21 year planning year ending immediately prior to the 
22 agreement's execution. For purposes of this subsection 
23 (d), the amount paid per kilowatthour means the total 
24 amount paid for electric service expressed on a per 
25 kilowatthour basis. For purposes of this subsection (d), 
26 the total amount paid for electric service includes without 
 
 
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1 limitation amounts paid for supply, transmission, 
2 distribution, surcharges and add-on taxes.
3  Notwithstanding the requirements of this subsection 
4 (d), the total amount purchased paid under sourcing 
5 agreements with the initial clean coal facility clean coal 
6 facilities pursuant to the procurement plan for any given 
7 year shall be reduced by an amount necessary to limit the 
8 annual estimated average net increase due to the costs of 
9 these resources included in the amounts paid by eligible 
10 retail customers in connection with electric service to:
11   (A) in 2010, no more than 0.5% of the amount paid 
12 per kilowatthour by those customers during the year 
13 ending May 31, 2009;
14   (B) in 2011, the greater of an additional 0.5% of 
15 the amount paid per kilowatthour by those customers 
16 during the year ending May 31, 2010 or 1% of the amount 
17 paid per kilowatthour by those customers during the 
18 year ending May 31, 2009;
19   (C) in 2012, the greater of an additional 0.5% of 
20 the amount paid per kilowatthour by those customers 
21 during the year ending May 31, 2011 or 1.5% of the 
22 amount paid per kilowatthour by those customers during 
23 the year ending May 31, 2009;
24   (D) in 2013, the greater of an additional 0.5% of 
25 the amount paid per kilowatthour by those customers 
26 during the year ending May 31, 2012 or 2% of the amount 
 
 
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1 paid per kilowatthour by those customers during the 
2 year ending May 31, 2009; and
3   (E) thereafter:
4    (i) A calculation shall be made for each year 
5 to determine whether , the total amount paid under 
6 sourcing agreements with clean coal facilities 
7 pursuant to the procurement plan for any single 
8 year shall be reduced by an amount necessary to 
9 limit the estimated average net per kilowatthour 
10 increase due to the cost of electric power 
11 purchased under sourcing agreements and these 
12 resources included in the amounts paid by small 
13 electric eligible retail customers in connection 
14 with electric service exceeds to no more than the 
15 greater of (i) 2.015% of the amount paid per 
16 kilowatthour by eligible retail those customers 
17 during the year ending May 31, 2009 or (ii) the 
18 incremental amount per kilowatthour paid for these 
19 resources in 2013. These requirements may be 
20 altered only as provided by statute. For purposes 
21 of such calculation, such average net per 
22 kilowatthour increase in rates of small electric 
23 customers that are not eligible retail customers 
24 shall be deemed to be equal to such average net per 
25 kilowatthour increase in rates of eligible retail 
26 customers.
 
 
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1    (ii) If for any year the small customer rate 
2 impact would exceed the limitation described in 
3 item (i) of this subparagraph (E), the clean coal 
4 fraction for each clean coal electricity buyer 
5 shall be adjusted for such year in a manner that 
6 will result in (a) the quantity of electric power 
7 projected to be purchased by each clean coal 
8 electricity buyer being reduced by an amount 
9 sufficient to result in such deemed rate impact on 
10 all small electric customers (whether served by 
11 electric utilities or alternative retail electric 
12 suppliers) being equal to such limitation for such 
13 year and (b) any such reductions in amounts 
14 allocated to the clean coal electricity buyers in 
15 order to achieve the objective described in clause 
16 (a) of this item (ii) being allocated to, and 
17 purchased and paid for by, the clean coal 
18 electricity buyers in proportion to their retail 
19 sales to large electric customers.
20    (iii) Each year, after taking account of the 
21 adjustment, if any, provided for in item (ii) of 
22 this subparagraph (E), a calculation shall be made 
23 to determine whether the large customer deemed 
24 rate impact for such year exceeds $0.005 per 
25 kilowatthour. The "large customer deemed rate 
26 impact" for any year is the projected increase in 
 
 
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1 electric rates of large electric customers 
2 (whether served by electric utilities or 
3 alternative retail electric suppliers) due to the 
4 cost of electric power purchased under sourcing 
5 agreements to the extent it is based on each clean 
6 coal electricity buyer's retail sales to large 
7 electric customers, which shall be calculated in 
8 substantially the same manner as the calculation 
9 of rate impact on small electric customers, and 
10 shall assume that such cost of purchases under 
11 sourcing agreements is passed through 
12 proportionally by the clean coal electricity 
13 buyers to their large electric customers. The 
14 calculation of the large customer deemed rate 
15 impact shall (a) assume that the total retail sales 
16 (expressed in kilowatthours sold) to large 
17 electric customers by all clean coal electricity 
18 buyers for any year is the greater of the actual 
19 amount of such sales in such year and the amount of 
20 such sales in 2009 and (b) exclude from the 
21 calculation any actual costs for such year 
22 incurred by the initial clean coal facility to the 
23 extent such costs exceed the corresponding amount 
24 assumed in the "reference case" of the facility 
25 cost report for the initial clean coal facility for 
26 such year and are not principally within the 
 
 
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1 reasonable control of the initial clean coal 
2 facility.
3    Any operating costs or revenues deviating from 
4 the corresponding costs assumed in the "reference 
5 case" of the facility cost report for the initial 
6 clean coal facility as a result of changes in 
7 market prices, including, but not limited to, 
8 prices of coal, natural gas, electricity, 
9 by-products, and emissions allowances, shall be 
10 deemed to be outside of the reasonable control of 
11 the initial clean coal facility and excluded from 
12 the calculation.
13    Any costs exceeding the corresponding costs 
14 assumed in the "reference case" of the facility 
15 cost report for the initial clean coal facility as 
16 a result of changes in capital costs, fixed 
17 operating costs, variable operating costs, 
18 operating efficiency, and availability, except in 
19 each case to the extent resulting from a change in 
20 market prices or from a change in law, as defined 
21 in subsection (b) of Section 1-76 of this Act, 
22 shall be deemed to be within the reasonable control 
23 of the initial clean coal facility and included in 
24 the calculation.
25    (iv) If for any year the large customer deemed 
26 rate impact would exceed the limitation described 
 
 
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1 in item (iii) of this subparagraph (E), the 
2 quantity of electric power required to be 
3 purchased by each clean coal electricity buyer 
4 that serves large electric customers under its 
5 sourcing agreement for such year shall be reduced 
6 by such amount as will result in the large customer 
7 deemed rate impact being equal to such limitation 
8 for such year, and the clean coal fractions of each 
9 clean coal electricity buyer that serves large 
10 electric customers shall be adjusted for such year 
11 to reflect this reduction; provided, however, that 
12 the reduction under this item (iv) shall not exceed 
13 in any year an amount that would result in revenues 
14 under the sourcing agreements being reduced by 
15 more than $50,000,000 in the aggregate for such 
16 year. Any quantities of electric power not 
17 required to be purchased pursuant to the operation 
18 of the immediately preceding sentence may be 
19 disposed of by the initial clean coal facility for 
20 its own account, and the proceeds of any sales of 
21 such electric power shall not be included in the 
22 formula rate.
23    (v) The details of the calculations 
24 contemplated by this subparagraph (E) shall be set 
25 forth in the sourcing agreements.
26    (vi)
No later than June 30, 2015, the 
 
 
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1 Commission shall review the limitation on the 
2 total amount paid under sourcing agreements, if 
3 any, with the initial clean coal facility 
4 facilities pursuant to this subsection (d) and 
5 report to the General Assembly its findings as to 
6 the effect of the whether that limitation on the 
7 initial clean coal facility, electric utilities, 
8 alternative retail electric suppliers, and 
9 customers of the electric utilities and the 
10 alternative retail electric suppliers unduly 
11 constrains the amount of electricity generated by 
12 cost-effective clean coal facilities that is 
13 covered by sourcing agreements.
14  (3) Initial clean coal facility. In order to promote 
15 the use development of clean coal electric power facilities 
16 in Illinois, each electric utility subject to this Section 
17 shall execute a sourcing agreement to source electricity 
18 from the initial clean coal facility. The Agency shall 
19 accept applications to be designated the initial clean coal 
20 facility for a period of 30 days after the effective date 
21 of this amendatory Act of the 97th General Assembly. Each 
22 application shall include a proposed sourcing agreement in 
23 accordance with the requirements of this paragraph (3) and 
24 information showing that the applicant meets the other 
25 criteria set out in the definition of initial clean coal 
26 facility provided in Section 1-10 of this Act. In the event 
 
 
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1 that only one proposed initial clean coal facility that 
2 meets each of the requirements submits a proposed sourcing 
3 agreement to the Agency within that time period, the Agency 
4 shall select such proposed initial clean coal facility as 
5 the initial clean coal facility. In the event that more 
6 than one proposed initial clean coal facility that meets 
7 each of the requirements submit a proposed sourcing 
8 agreement to the Agency within that time period, the Agency 
9 shall select as the initial clean coal facility the 
10 electric generating facility that the Agency determines 
11 best promotes the needs and interests of the citizens of 
12 the State of Illinois. In making such determination, the 
13 Agency shall take into account for each proposed initial 
14 clean coal facility the technical and economic feasibility 
15 of such facility, including access to capital and the 
16 financeability of the facility based upon the proposed 
17 sourcing agreement, the projected environmental 
18 performance of such facility, the ability of such facility 
19 to be dispatched to support the transmission grid's 
20 capability to integrate with wind, solar, and other 
21 intermittent resources, and the reliability and cost of 
22 electric transmission service from the facility to the 
23 electric utilities. The Agency shall announce the 
24 designation of the initial clean coal facility within 45 
25 days after the effective date of this amendatory Act of the 
26 97th General Assembly. a proposed clean coal facility in 
 
 
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1 Illinois (the "initial clean coal facility") that will have 
2 a nameplate capacity of at least 500 MW when commercial 
3 operation commences, that has a final Clean Air Act permit 
4 on the effective date of this amendatory Act of the 95th 
5 General Assembly, and that will meet the definition of 
6 clean coal facility in Section 1-10 of this Act when 
7 commercial operation commences. The sourcing agreements 
8 with this initial clean coal facility shall be subject to 
9 both approval of the initial clean coal facility by the 
10 General Assembly and satisfaction of the requirements of 
11 paragraph (4) of this subsection (d) and shall be executed 
12 within 90 days after any such approval by the General 
13 Assembly. The Agency and the Commission shall have 
14 authority to inspect all books and records associated with 
15 the initial clean coal facility during the term of such a 
16 sourcing agreement. A utility's sourcing agreement for 
17 electricity produced by the initial clean coal facility 
18 shall include:
19   (A) provisions governing the price paid for 
20 electricity generated by the initial clean coal 
21 facility, which shall be determined according to 
22 clause (iv) of subparagraph (B) of this paragraph (3); 
23 a formula contractual price (the "contract price") 
24 approved pursuant to paragraph (4) of this subsection 
25 (d), which shall:
26    (i) be determined using a cost of service 
 
 
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1 methodology employing either a level or deferred 
2 capital recovery component, based on a capital 
3 structure consisting of 45% equity and 55% debt, 
4 and a return on equity as may be approved by the 
5 Federal Energy Regulatory Commission, which in any 
6 case may not exceed the lower of 11.5% or the rate 
7 of return approved by the General Assembly 
8 pursuant to paragraph (4) of this subsection (d); 
9 and
10    (ii) provide that all miscellaneous net 
11 revenue, including but not limited to net revenue 
12 from the sale of emission allowances, if any, 
13 substitute natural gas, if any, grants or other 
14 support provided by the State of Illinois or the 
15 United States Government, firm transmission 
16 rights, if any, by-products produced by the 
17 facility, energy or capacity derived from the 
18 facility and not covered by a sourcing agreement 
19 pursuant to paragraph (3) of this subsection (d) or 
20 item (5) of subsection (d) of Section 16-115 of the 
21 Public Utilities Act, whether generated from the 
22 synthesis gas derived from coal, from SNG, or from 
23 natural gas, shall be credited against the revenue 
24 requirement for this initial clean coal facility;
25   (B) power purchase provisions, which shall:
26    (i) provide that the utility party to the 
 
 
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1 sourcing agreement shall pay the contract price 
2 under such sourcing agreement determined pursuant 
3 to subparagraph (A);
4    (ii) require delivery of electricity by the 
5 initial clean coal facility to the regional 
6 transmission organization market of the utility 
7 party to the sourcing agreement;
8    (iii) require the utility party to the 
9 sourcing agreement to buy from the initial clean 
10 coal facility in each hour an amount of energy 
11 equal to all clean coal energy made available from 
12 the initial clean coal facility during such hour 
13 times the clean coal fraction for such utility for 
14 the applicable month, provided that the amount 
15 purchased by the utility in any year will be 
16 limited by paragraph (2) of this subsection (d);
17    (iv) require the utility party to the sourcing 
18 agreement to pay to the initial clean coal facility 
19 for each month the following: the electric 
20 generation variable charge multiplied by the 
21 quantity of energy required to be purchased by such 
22 utility in such month plus the product of the sum 
23 of the fuel charge; plus the fixed monthly charge, 
24 based on the MW of nameplate capacity of the 
25 initial clean coal facility's power block, for 
26 such month, multiplied by the fraction determined 
 
 
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1 for the utility for such month according to clause 
2 (iii) of this subparagraph (B);
for purposes of 
3 this clause (iv), "electric generation variable 
4 charge", "fuel charge", and "fixed monthly charge" 
5 shall each have the meaning ascribed to the term in 
6 subsection (a) of Section 1-76 of this Act; and
7    (v) be considered pre-existing contracts in 
8 the utility's procurement plans for eligible 
9 retail customers;
The provisions of this 
10 subparagraph (B) are severable under Section 1.31 
11 of the Statute on Statutes. 
12   (B) power purchase provisions, which shall: 
13    (i) provide that the utility party to such 
14 sourcing agreement shall pay the contract price 
15 for electricity delivered under such sourcing 
16 agreement; 
17    (ii) require delivery of electricity to the 
18 regional transmission organization market of the 
19 utility that is party to such sourcing agreement;
20    (iii) require the utility party to such 
21 sourcing agreement to buy from the initial clean 
22 coal facility in each hour an amount of energy 
23 equal to all clean coal energy made available from 
24 the initial clean coal facility during such hour 
25 times a fraction, the numerator of which is such 
26 utility's retail market sales of electricity 
 
 
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1 (expressed in kilowatthours sold) in the State 
2 during the prior calendar month and the 
3 denominator of which is the total retail market 
4 sales of electricity (expressed in kilowatthours 
5 sold) in the State by utilities during such prior 
6 month and the sales of electricity (expressed in 
7 kilowatthours sold) in the State by alternative 
8 retail electric suppliers during such prior month 
9 that are subject to the requirements of this 
10 subsection (d) and paragraph (5) of subsection (d) 
11 of Section 16-115 of the Public Utilities Act, 
12 provided that the amount purchased by the utility 
13 in any year will be limited by paragraph (2) of 
14 this subsection (d); and
15    (iv) be considered pre-existing contracts in 
16 such utility's procurement plans for eligible 
17 retail customers;
18   (C) contract for differences provisions, which 
19 shall:
20    (i) require the utility party to such sourcing 
21 agreement to contract with the initial clean coal 
22 facility in each hour with respect to an amount of 
23 energy equal to all clean coal energy made 
24 available from the initial clean coal facility 
25 during such hour times the clean coal a fraction 
26 for such utility for applicable month, the 
 
 
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1 numerator of which is such utility's retail market 
2 sales of electricity (expressed in kilowatthours 
3 sold) in the utility's service territory in the 
4 State during the prior calendar month and the 
5 denominator of which is the total retail market 
6 sales of electricity (expressed in kilowatthours 
7 sold) in the State by utilities during such prior 
8 month and the sales of electricity (expressed in 
9 kilowatthours sold) in the State by alternative 
10 retail electric suppliers during such prior month 
11 that are subject to the requirements of this 
12 subsection (d) and paragraph (5) of subsection (d) 
13 of Section 16-115 of the Public Utilities Act, 
14 provided that the amount purchased paid by the 
15 utility in any year will be limited by paragraph 
16 (2) of this subsection (d);
17    (ii) provide that the utility's payment 
18 obligation in respect of the quantity of 
19 electricity determined pursuant to the preceding 
20 clause (i) for any month shall be limited to an 
21 amount equal to (1) the difference of the electric 
22 generation variable charge, the fuel charge, and 
23 the fixed monthly charge, that would be payable by 
24 the utility for such month based on such quantity 
25 of electricity between the contract price 
26 determined pursuant to clause (iv) of subparagraph 
 
 
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1 (B) (A) of this paragraph (3), minus the product of 
2 (1) of this subsection (d) and the day-ahead price 
3 for electricity delivered to the regional 
4 transmission organization market of the electric 
5 utility that is party to such sourcing agreement 
6 (or any successor delivery point at which such 
7 utility's supply obligations are financially 
8 settled on an hourly basis) (the "reference 
9 price") on the day preceding the day on which the 
10 electricity is delivered to the initial clean coal 
11 facility busbar, multiplied by (2) the quantity of 
12 electricity determined pursuant to the preceding 
13 clause (i), calculated for each hour in such month; 
14 and
15    (iii) not require the utility to take physical 
16 delivery of the electricity produced by the 
17 facility;
18   (D) general provisions, which shall:
19    (i) specify a term of no more than 30 years, 
20 commencing on the commercial operation date of the 
21 facility;
22    (ii) provide that electric utilities shall 
23 maintain adequate records documenting purchases 
24 under the sourcing agreements entered into to 
25 comply with this subsection (d) and shall file an 
26 accounting with the load forecast that must be 
 
 
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1 filed with the Agency by July 15 of each year, in 
2 accordance with subsection (d) of Section 16-111.5 
3 of the Public Utilities Act. 
4    (iii) provide that all costs associated with 
5 the initial clean coal facility will be 
6 periodically reported to the Federal Energy 
7 Regulatory Commission and to purchasers in 
8 accordance with applicable laws governing 
9 cost-based wholesale power contracts;
10    (iv) permit the Illinois Power Agency, if it is 
11 so authorized by law, to assume ownership of the 
12 initial clean coal facility, without monetary 
13 consideration and otherwise on reasonable terms 
14 acceptable to the Agency, if the Agency so requests 
15 no less than 3 years prior to the end of the stated 
16 contract term;
17    (v) require the owner of the initial clean coal 
18 facility to comply with provisions reflecting 
19 those set forth in Section 1-76.5 of this Act; 
20 provide documentation to the Commission each year, 
21 starting in the facility's first year of 
22 commercial operation, accurately reporting the 
23 quantity of carbon emissions from the facility 
24 that have been captured and sequestered and report 
25 any quantities of carbon released from the site or 
26 sites at which carbon emissions were sequestered 
 
 
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1 in prior years, based on continuous monitoring of 
2 such sites. If, in any year after the first year of 
3 commercial operation, the owner of the facility 
4 fails to demonstrate that the initial clean coal 
5 facility captured and sequestered at least 50% of 
6 the total carbon emissions that the facility would 
7 otherwise emit or that sequestration of emissions 
8 from prior years has failed, resulting in the 
9 release of carbon dioxide into the atmosphere, the 
10 owner of the facility must offset excess 
11 emissions. Any such carbon offsets must be 
12 permanent, additional, verifiable, real, located 
13 within the State of Illinois, and legally and 
14 practicably enforceable. The cost of such offsets 
15 for the facility that are not recoverable shall not 
16 exceed $15 million in any given year. No costs of 
17 any such purchases of carbon offsets may be 
18 recovered from a utility or its customers. All 
19 carbon offsets purchased for this purpose and any 
20 carbon emission credits associated with 
21 sequestration of carbon from the facility must be 
22 permanently retired. The initial clean coal 
23 facility shall not forfeit its designation as a 
24 clean coal facility if the facility fails to fully 
25 comply with the applicable carbon sequestration 
26 requirements in any given year, provided the 
 
 
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1 requisite offsets are purchased. However, the 
2 Attorney General, on behalf of the People of the 
3 State of Illinois, may specifically enforce the 
4 facility's sequestration requirement and the other 
5 terms of this contract provision. Compliance with 
6 the sequestration requirements and offset purchase 
7 requirements specified in paragraph (3) of this 
8 subsection (d) shall be reviewed annually by an 
9 independent expert retained by the owner of the 
10 initial clean coal facility, with the advance 
11 written approval of the Attorney General. The 
12 Commission may, in the course of the review 
13 specified in item (vii), reduce the allowable 
14 return on equity for the facility if the facility 
15 wilfully fails to comply with the carbon capture 
16 and sequestration requirements set forth in this 
17 item (v);
18    (vi) include limits on, and accordingly 
19 provide for a reduction modification of, the 
20 amount the utility is required to source under the 
21 sourcing agreement consistent with paragraph (2) 
22 of this subsection (d);
23    (vii) require Commission review: (1) to 
24 determine the justness, reasonableness, and 
25 prudence of the inputs to the formula referenced in 
26 subparagraphs (A)(i) through (A)(iii) of paragraph 
 
 
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1 (3) of this subsection (d), prior to an adjustment 
2 in those inputs including, without limitation, the 
3 capital structure and return on equity, fuel 
4 costs, and other operations and maintenance costs 
5 and (2) to approve the costs to be passed through 
6 to customers under the sourcing agreement by which 
7 the utility satisfies its statutory obligations. 
8 Commission review shall occur no less than every 3 
9 years, regardless of whether any adjustments have 
10 been proposed, and shall be completed within 9 
11 months; 
12    (vii) (viii) limit the utility's obligation to 
13 such amount as the utility is allowed to recover 
14 through tariffs filed with the Commission, 
15 provided that neither the clean coal facility nor 
16 the utility waives any right to assert federal 
17 pre-emption or any other argument in response to a 
18 purported disallowance of recovery costs;
19    (viii) (ix) limit the utility's or alternative 
20 retail electric supplier's obligation to incur any 
21 liability to only those times until such time as 
22 the facility is in commercial operation and 
23 generating power and energy and such power and 
24 energy is being delivered to the facility busbar;
25    (ix) provide that each electric utility shall 
26 have the right to determine whether the 
 
 
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1 obligations of the utility party under the 
2 sourcing agreement shall be governed by the power 
3 purchase provisions or the contract for 
4 differences provisions before entering into the 
5 sourcing agreements; the provisions of this item 
6 (ix) are severable under Section 1.31 of the 
7 Statute on Statutes; 
8    (x) provide that the owner or owners of the 
9 initial clean coal facility, which is the 
10 counterparty to such sourcing agreement, shall 
11 have the right from time to time to elect whether 
12 the obligations of the utility party thereto shall 
13 be governed by the power purchase provisions or the 
14 contract for differences provisions;
15    (x) (xi) append documentation showing that the 
16 formula rate and contract, insofar as they relate 
17 to the power purchase provisions, have been 
18 approved by the Federal Energy Regulatory 
19 Commission pursuant to Section 205 of the Federal 
20 Power Act;
21    (xi) (xii) provide that any changes to the 
22 terms of the contract, insofar as such changes 
23 relate to the power purchase provisions, are 
24 subject to review under the public interest 
25 standard applied by the Federal Energy Regulatory 
26 Commission pursuant to Sections 205 and 206 of the 
 
 
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1 Federal Power Act; and
2    (xii) (xiii) conform with customary lender 
3 requirements in power purchase agreements used as 
4 the basis for financing non-utility generators. 
5    (xiii) provide for performance incentives 
6 regarding availability, efficiency, and by-product 
7 quantities, with premium performance and 
8 shortfalls in performance to result in positive 
9 and negative adjustments, respectively, to the 
10 rate of return approved by the Commission, 
11 provided that such rate of return in any year shall 
12 not be decreased by more than $25,000,000 or 
13 increased by more than $12,500,000 as a result of 
14 such performance incentives. Such performance 
15 incentives shall be structured so that any 
16 increases in the rate of return as a result of such 
17 performance incentives are designed not to exceed 
18 the projected benefits to the buyers resulting 
19 from the initial clean coal facility's achievement 
20 of that performance incentive;
21    (xiv) include forecasting and scheduling 
22 obligations that take account of the requirements 
23 of the applicable regional transmission 
24 organizations; and
25    (xv) include operating guidelines relating to 
26 the operating configuration and dispatch of the 
 
 
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1 initial clean coal facility, which guidelines 
2 shall be subject to change from time to time with 
3 input from a committee consisting of 
4 representatives of the electric utilities and 
5 alternative retail electric suppliers that are 
6 parties to sourcing agreements with the initial 
7 clean coal facility; any actions taken or not taken 
8 by the owner of the initial clean coal facility in 
9 compliance with such operating guidelines shall be 
10 deemed to be prudent, and the prudence of the costs 
11 resulting from the action shall be evaluated in 
12 light of the fact that the initial clean coal 
13 facility is required to comply with such operating 
14 guidelines.
15  (4) Effective date of sourcing agreements with the 
16 initial clean coal facility. No later than 30 days after 
17 the effective date of this amendatory Act of the 97th 
18 General Assembly, the initial clean coal facility shall 
19 submit a draft sourcing agreement to the Agency and each 
20 electric utility required to enter into such agreements 
21 pursuant to paragraph (3) of this subsection (d) and the 
22 initial clean coal facility and each such electric utility 
23 shall promptly and diligently negotiate in good faith over 
24 the terms of the sourcing agreement. Within 30 days after 
25 receipt of the draft sourcing agreement, each such electric 
26 utility shall provide the Agency and the owner of the 
 
 
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1 initial clean coal facility with its comments and 
2 recommended revisions to the draft sourcing agreement. 
3 Within 15 days after the receipt of the electric utility's 
4 comments and recommended revisions, the owner of the 
5 initial clean coal facility shall submit its responsive 
6 comments and a further revised draft of the sourcing 
7 agreement to the Agency. The Agency shall review the draft 
8 sourcing agreement and comments and retain an independent, 
9 qualified, and experienced mediator to mediate disputes 
10 over the draft sourcing agreement's terms. The mediator 
11 shall not own or control any direct or indirect interest in 
12 the initial clean coal facility and shall have no 
13 contractual relationship with the initial clean coal 
14 facility. The mediator shall have knowledge of the energy 
15 industry.
16  If the parties to the sourcing agreement do not agree 
17 on the terms in the sourcing agreement within 15 days after 
18 receiving the owner's responsive comments and further 
19 revised draft, then the mediator retained by the Agency 
20 shall mediate the dispute between the parties. If the 
21 parties are in agreement on the terms of the sourcing 
22 agreement, then the Agency shall approve the final draft 
23 sourcing agreement within 30 days after the parties reach 
24 agreement and notify the Commission of that agreement. If, 
25 within 30 days after the commencement of mediation, the 
26 parties have failed to come to agreement, then the Agency 
 
 
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1 shall, with assistance, as appropriate, from the mediator 
2 retained pursuant to this paragraph (4), review and revise 
3 the draft sourcing agreement as necessary.
4  The Agency may approve a sourcing agreement only after 
5 it finds the sourcing agreement is consistent with the 
6 provisions of this Act and contains only terms that are 
7 balanced and equitable and fairly protect the interests of 
8 the parties to the sourcing agreement, with such approval 
9 to occur no later than 60 days after the commencement of 
10 the mediation. The Agency shall not withhold or condition 
11 its approval of the sourcing agreement based upon least 
12 cost resource principles or whether or not it would be 
13 prudent for buyers to enter into such an agreement if there 
14 were no legal requirement to do so, nor shall the 
15 resolution of open issues be based on these principles.
16  If the sourcing agreement is approved, then each 
17 electric utility required to enter into a sourcing 
18 agreement shall have 30 days after either the Agency's 
19 approval or the issuance of any necessary approval by the 
20 Federal Energy Regulatory Commission, whichever is later, 
21 to enter into the sourcing agreement. The Agency shall 
22 submit the approved sourcing agreement to the Commission 
23 within 15 days after approval. Each electric utility and 
24 the initial clean coal facility shall pay a reasonable fee 
25 as required by the Agency for its services under this 
26 paragraph (4) and shall pay the mediator's reasonable fees, 
 
 
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1 if any. The Agency shall adopt and make public a policy 
2 detailing the process for retaining a mediator under this 
3 paragraph (4). 
4  Any proposed sourcing agreement with the initial clean 
5 coal facility shall not become effective unless a facility 
6 cost report and Commission report, as described in this 
7 paragraph (4), the following reports are prepared and 
8 submitted, whether prepared and submitted before or after 
9 the effective date of this amendatory Act of the 97th 
10 General Assembly. and authorizations and approvals 
11 obtained:
12  (i) Facility cost report. The owner of the initial 
13 clean coal facility shall submit to the Commission, the 
14 Agency, and the General Assembly a front-end engineering 
15 and design study, a facility cost report, method of 
16 financing (including but not limited to structure and 
17 associated costs), and an operating and maintenance cost 
18 quote for the facility (collectively "facility cost 
19 report"), which shall be prepared in accordance with the 
20 requirements of this paragraph (4) of subsection (d) of 
21 this Section, and shall provide the Commission and the 
22 Agency access to the work papers, relied upon documents, 
23 and any other backup documentation related to the facility 
24 cost report.
25  (ii) Commission report. Within 6 months following 
26 receipt of the facility cost report, the Commission, in 
 
 
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1 consultation with the Agency, shall submit a Commission 
2 report to the General Assembly setting forth its analysis 
3 of the facility cost report. Such report shall include, but 
4 not be limited to, a comparison of the costs associated 
5 with electricity generated by the initial clean coal 
6 facility to the costs associated with electricity 
7 generated by other types of generation facilities, an 
8 analysis of the rate impacts on residential and small 
9 business customers over the life of the sourcing 
10 agreements, and an analysis of the likelihood that the 
11 initial clean coal facility will commence commercial 
12 operation by and be delivering power to the facility's 
13 busbar by 2016. To assist in the preparation of its report, 
14 the Commission, in consultation with the Agency, may hire 
15 one or more experts or consultants, the costs of which 
16 shall be paid for by the owner of the initial clean coal 
17 facility. The Commission and Agency may begin the process 
18 of selecting such experts or consultants prior to receipt 
19 of the facility cost report.
20   (iii) General Assembly approval. The proposed 
21 sourcing agreements shall not take effect unless, 
22 based on the facility cost report and the Commission's 
23 report, the General Assembly enacts authorizing 
24 legislation approving (A) the projected price, stated 
25 in cents per kilowatthour, to be charged for 
26 electricity generated by the initial clean coal 
 
 
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1 facility, (B) the projected impact on residential and 
2 small business customers' bills over the life of the 
3 sourcing agreements, and (C) the maximum allowable 
4 return on equity for the project; and
5   (iv) Commission review. If the General Assembly 
6 enacts authorizing legislation pursuant to 
7 subparagraph (iii) approving a sourcing agreement, the 
8 Commission shall, within 90 days of such enactment, 
9 complete a review of such sourcing agreement. During 
10 such time period, the Commission shall implement any 
11 directive of the General Assembly, resolve any 
12 disputes between the parties to the sourcing agreement 
13 concerning the terms of such agreement, approve the 
14 form of such agreement, and issue an order finding that 
15 the sourcing agreement is prudent and reasonable.
16  The facility cost report shall be prepared as follows: 
17  (A) The facility cost report shall be prepared by duly 
18 licensed engineering and construction firms detailing the 
19 estimated capital costs payable to one or more contractors 
20 or suppliers for the engineering, procurement and 
21 construction of the components comprising the initial 
22 clean coal facility and the estimated costs of operation 
23 and maintenance of the facility. The facility cost report 
24 shall include:
25   (i) an estimate of the capital cost of the core 
26 plant based on one or more front end engineering and 
 
 
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1 design studies for the gasification island and related 
2 facilities. The core plant shall include all civil, 
3 structural, mechanical, electrical, control, and 
4 safety systems; and .
5   (ii) an estimate of the capital cost of the balance 
6 of the plant, including any capital costs associated 
7 with sequestration of carbon dioxide emissions and all 
8 interconnects and interfaces required to operate the 
9 facility, such as transmission of electricity, 
10 construction or backfeed power supply, pipelines to 
11 transport substitute natural gas or carbon dioxide, 
12 potable water supply, natural gas supply, water 
13 supply, water discharge, landfill, access roads, and 
14 coal delivery.
15  In the facility cost report, the The quoted 
16 construction costs shall be expressed in nominal dollars as 
17 of the date that the quote is prepared and shall include 
18 (1) capitalized financing costs during construction,
(2) 
19 taxes, insurance, and other owner's costs, and (3) an 
20 assumed escalation in materials and labor beyond the date 
21 as of which the construction cost quote is expressed.
22  In the facility cost report, the (B) The front end 
23 engineering and design study for the gasification island 
24 and the cost study for the balance of plant shall include 
25 sufficient design work to permit quantification of major 
26 categories of materials, commodities and labor hours, and 
 
 
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1 receipt of quotes from vendors of major equipment required 
2 to construct and operate the clean coal facility.
3  (C) The facility cost report shall also include an 
4 operating and maintenance cost quote that will provide the 
5 estimated cost of delivered fuel, personnel, maintenance 
6 contracts, chemicals, catalysts, consumables, spares, and 
7 other fixed and variable operations and maintenance costs. 
8 (a) The delivered fuel cost estimate will be provided by a 
9 recognized third party expert or experts in the fuel and 
10 transportation industries. (b) The balance of the 
11 operating and maintenance cost quote, excluding delivered 
12 fuel costs, will be developed based on the inputs provided 
13 by duly licensed engineering and construction firms 
14 performing the construction cost quote, potential vendors 
15 under long-term service agreements and plant operating 
16 agreements, or recognized third party plant operator or 
17 operators.
18  The operating and maintenance cost quote (including 
19 the cost of the front end engineering and design study) 
20 shall be expressed in nominal dollars as of the date that 
21 the quote is prepared and shall include (1) taxes, 
22 insurance, and other owner's costs, and (2) an assumed 
23 escalation in materials and labor beyond the date as of 
24 which the operating and maintenance cost quote is 
25 expressed.
26  (D) The facility cost report shall also include (i) an 
 
 
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1 analysis of the initial clean coal facility's ability to 
2 deliver power and energy into the applicable regional 
3 transmission organization markets and (ii) an analysis of 
4 the expected capacity factor for the initial clean coal 
5 facility. 
6  (E) Amounts paid to third parties unrelated to the 
7 owner or owners of the initial clean coal facility to 
8 prepare the core plant construction cost quote, including 
9 the front end engineering and design study, and the 
10 operating and maintenance cost quote will be reimbursed 
11 through Coal Development Bonds.
12  (5) Re-powering and retrofitting coal-fired power 
13 plants previously owned by Illinois utilities to qualify as 
14 clean coal facilities. During the 2009 procurement 
15 planning process and thereafter, the Agency and the 
16 Commission shall consider sourcing agreements covering 
17 electricity generated by power plants that were previously 
18 owned by Illinois utilities and that have been or will be 
19 converted into clean coal facilities, as defined by Section 
20 1-10 of this Act. Pursuant to such procurement planning 
21 process, the owners of such facilities may propose to the 
22 Agency sourcing agreements with utilities and alternative 
23 retail electric suppliers required to comply with 
24 subsection (d) of this Section and item (5) of subsection 
25 (d) of Section 16-115 of the Public Utilities Act, covering 
26 electricity generated by such facilities. In the case of 
 
 
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1 sourcing agreements that are power purchase agreements, 
2 the contract price for electricity sales shall be 
3 established on a cost of service basis. In the case of 
4 sourcing agreements that are contracts for differences, 
5 the contract price from which the reference price is 
6 subtracted shall be established on a cost of service basis. 
7 The Agency and the Commission may approve any such utility 
8 sourcing agreements that do not exceed cost-based 
9 benchmarks developed by the procurement administrator, in 
10 consultation with the Commission staff, Agency staff and 
11 the procurement monitor, subject to Commission review and 
12 approval. The Commission shall have authority to inspect 
13 all books and records associated with these clean coal 
14 facilities during the term of any such contract.
15  (6) Costs incurred by a utility under this subsection 
16 (d) or pursuant to a contract or sourcing agreement entered 
17 into under this subsection (d) shall be deemed prudently 
18 incurred and reasonable in amount and the electric utility 
19 shall be entitled to full cost recovery pursuant to the 
20 tariffs filed with the Commission. 
21 (e) The draft procurement plans are subject to public 
22comment, as required by Section 16-111.5 of the Public 
23Utilities Act and Section 1-78 of this Act.
24 (f) The Agency shall submit the final procurement plan to 
25the Commission. The Agency shall revise a procurement plan if 
26the Commission determines that it does not meet the standards 
 
 
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1set forth in Section 16-111.5 of the Public Utilities Act and 
2Section 1-78 of this Act.
3 (g) The Agency shall assess fees to each affected utility 
4to recover the costs incurred in preparation of the annual 
5procurement plan for the utility.
6 (h) The Agency shall assess fees to each bidder to recover 
7the costs incurred in connection with a competitive procurement 
8process.
9 (i) The Agency shall assess fees to the initial clean coal 
10facility to recover the costs incurred in preparation of each 
11procurement plan for the initial clean coal facility.
12 (j) The General Assembly deems it a prudent business 
13practice to develop and promote economic opportunities for 
14minorities, females, and persons with disabilities in the 
15energy production industry.
16 The initial clean coal facility, any clean coal facility, 
17and any clean coal SNG facility shall include in any agreement 
18to sell electric power or SNG entered into pursuant to this Act 
19provisions that require the owner of the facility to make a 
20good faith effort to ensure that an amount equal to not less 
21than 15% of the value of its prime construction contract for 
22the facility shall be established as a goal to be awarded to 
23minority owned businesses, female owned businesses, and 
24businesses owned by a person with a disability; provided that 
25at least 75% of the amount of such total goal shall be for 
26minority owned businesses.
 
 
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1 "Minority owned business", "female owned business", and 
2"business owned by a person with a disability" shall have the 
3meanings ascribed to them in Section 2 of the Business 
4Enterprise for Minorities, Females, and Persons with 
5Disabilities Act. 

6(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09; 
796-159, eff. 8-10-09; 96-1437, eff. 8-17-10.)

8 (20 ILCS 3855/1-76 new)
9 Sec. 1-76. Costs and revenue recoverable by the initial 
10clean coal facility. 
11 (a) The price paid for electricity generated by the initial 
12clean coal facility shall be based on a formula rate using a 
13cost of service methodology applicable to wholesale electric 
14power contracts employing a level or deferred capital component 
15and in accordance with the Uniform System of Accounts, subject 
16to and as specifically limited by the provisions set forth in 
17this Section.
18 The formula rate shall determine 3 components of the price 
19under the sourcing agreements: (1) a fuel charge, (2) an 
20electric generation variable charge, and (3) a fixed monthly 
21charge. The fuel charge for any month shall be stated in 
22dollars per month and shall consist of the total actual fuel 
23costs incurred, after taking account of the subtraction of 
24miscellaneous net revenue as provided in subsection (d) of this 
25Section. The electric generation variable charge for any period 
 
 
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1shall be stated in dollars per MWh and shall consist of all 
2costs incurred by the initial clean coal facility, other than 
3fuel costs, associated with production of electric energy by 
4the initial clean coal facility's power block, which costs vary 
5directly with the level of production of electric energy. The 
6fixed monthly charge shall be stated in dollars per month per 
7MW of nameplate capacity of the initial clean coal facility's 
8power block and shall consist of all costs incurred by the 
9initial clean coal facility that are described in, and as 
10limited by the provisions of, subsections (b), (c), (d), (e), 
11(f), and (g) of this Section, other than the costs incorporated 
12into the calculation of the fuel charge and the electric 
13generation variable charge.
14 No later than 30 days after the approval of the sourcing 
15agreement by the Agency pursuant to paragraph (4) of subsection 
16(d) of Section 1-75 of this Act, the initial clean coal 
17facility shall provide to the Commission projections of its 
18costs for the term of the sourcing agreements. Within 90 days 
19thereafter, the Commission shall, based upon such projections 
20and the provisions of this Section, determine the projected 
21components of the price for each year for the initial clean 
22coal facility. No later than 6 months before the expected 
23commencement of commercial operation of the initial clean coal 
24facility and the commencement of each operating year 
25thereafter, the initial clean coal facility shall submit to the 
26Commission protections of its costs and dispatch levels for the 
 
 
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1upcoming year. Within 120 days after the receipt of the initial 
2clean coal facility's projections of its costs and dispatch 
3levels for the upcoming year, the Commission shall calculate a 
4fixed monthly charge and an electric generation variable charge 
5for the upcoming year using the inputs to the formula rate 
6under the provisions of this Section. If the Commission does 
7not calculate such components of the price for any year as of 
8the beginning of such year, then the initial clean coal 
9facility shall calculate such components of the price based 
10upon its projections and the provisions of this Section, with 
11any subsequent cost disallowance by the Commission to be 
12reflected through a true-up of costs in the next year. If at 
13any time the Commission, acting in accordance with this 
14Section, disallows any cost, then the amount of such 
15disallowance shall be incorporated as a deduction into the 
16calculation of the fixed monthly charge and the electric 
17generation variable charge, as applicable, for the next year.
18 (b) Capital costs set by the Commission according to this 
19subsection (b) shall be included in the formula rate. "Capital 
20costs" means costs for the purchase of land, buildings, 
21construction, and equipment to be used in the production of 
22electricity, and other costs recorded in the Electric Plant 
23Accounts and other applicable Balance Sheet Accounts of the 
24Uniform System of Accounts for the initial clean coal facility. 
25The Capital Development Board shall calculate a range of 
26capital costs that it believes would be a reasonable cost for 
 
 
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1the initial clean coal facility. The Capital Development Board 
2shall commence performing its responsibilities under this 
3subsection (b) within 30 days after the effective date of this 
4amendatory Act of the 97th General Assembly. In determining a 
5range of capital costs, the Capital Development Board shall 
6base its evaluation and judgment on professional engineering 
7and regulatory accounting principles and include any cost 
8information and update on costs that may be provided by the 
9initial clean coal facility and shall not employ least cost 
10resource principles. In addition, the Capital Development 
11Board may:
12  (1) include in its consideration the information in a 
13 facility cost report, if any, that was prepared and 
14 submitted by the initial clean coal facility to the 
15 Commission in accordance with paragraph (4) of subsection 
16 (d) of Section 1-75 of this Act;
17  (2) consult as much as it deems necessary with the 
18 initial clean coal facility;
19  (3) conduct whatever research and investigation it 
20 deems necessary; and
21  (4) retain third parties to assist in its 
22 determination, provided that such third parties shall not 
23 own or control any direct or indirect interest in the 
24 initial clean coal facility and shall have no contractual 
25 relationship with the initial clean coal facility.
26 The initial clean coal facility shall cooperate with the 
 
 
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1Capital Development Board in any investigation it deems 
2necessary. 
3 The Capital Development Board shall make its final 
4determination of the range of capital costs confidentially and 
5shall submit that range to the Commission in a confidential 
6filing no later than 90 days after the Capital Development 
7Board is required to commence performing its responsibilities 
8under this subsection (b). The initial clean coal facility 
9shall submit to the Commission its estimate of the capital 
10costs to be included in the formula rate. Only after the 
11initial clean coal facility has submitted this estimate shall 
12the Commission publicly announce the range of capital costs 
13submitted by the Capital Development Board. In the event that 
14the estimate submitted by the initial clean coal facility is 
15within or below the range submitted by the Capital Development 
16Board, the initial clean coal facility's estimate shall be 
17approved by the Commission as the amount of pre-approved 
18capital costs. 
19 In the event that the estimate submitted by the initial 
20clean coal facility is above the range submitted by the Capital 
21Development Board, the amount of capital costs at the lowest 
22end of the range submitted by the Capital Development Board 
23shall be approved by the Commission as the amount of 
24pre-approved capital costs. "Pre-approved capital costs" means 
25the amount of capital costs that will be included in the 
26formula rate to the extent such costs are actually incurred, 
 
 
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1with no further review or approval in respect to whether they 
2are prudently incurred. The Commission's determination of 
3pre-approved capital costs shall be made within 15 days after 
4the initial clean coal facility submits its capital cost 
5estimate. The Commission's decision regarding pre-approved 
6capital costs shall be final and shall not be subject to 
7judicial or administrative review. 
8 Once made, the Commission's determination of the amount of 
9pre-approved capital costs may not be increased unless the 
10Commission determines that the incremental costs are 
11reasonable, in which case one-third of such reasonable 
12incremental costs shall be included in the formula rate and 
13recoverable by the initial clean coal facility and two-thirds 
14of such costs shall be borne by the initial clean coal facility 
15and its contractors, provided that to the extent such 
16reasonable incremental costs are the result of change in law or 
17non-insurable force majeure, all of such costs shall be 
18included in the formula rate and recoverable by the initial 
19clean coal facility. 
20 "Change in law" means any change, including any enactment, 
21repeal, or amendment, in a law, ordinance, rule, regulation, 
22interpretation, permit, license, consent or order, including 
23those relating to taxes or to environmental matters, or in the 
24interpretation or application thereof by any governmental 
25authority occurring after May 31, 2011. 
26 "Non-insurable force majeure" means events outside of the 
 
 
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1reasonable control of the owner of the initial clean coal 
2facility and its contractors, subcontractors, and agents that 
3are not included on a list, to be attached to the sourcing 
4agreement and subject to the procedures set forth in paragraph 
5(4) of subsection (d) of Section 1-75 of this Act, of events 
6that are customarily covered by builder's risk insurance 
7policies for the construction of electric generating plants and 
8other large process plants in the United States. "Non-insurable 
9force majeure" shall not include changes in prices or other 
10changes in market conditions. 
11 Any rebates, refunds, or other payments received by the 
12owner of the initial clean coal facility from any of its 
13contractors with respect to the contractor bearing risk for 
14capital cost overruns shall be excluded from miscellaneous net 
15revenue and shall not otherwise reduce the costs of the owner 
16of the initial clean coal facility for purposes of the formula 
17rate. For purposes of this subsection (b), "reasonable" means 
18that the decisions, construction, and supervision of 
19construction by the owner of the initial clean coal facility 
20and its contractors underlying the initial capital cost and 
21significant additions to the initial capital cost of the 
22initial clean coal facility resulted in efficient, economical, 
23and timely construction. In determining the reasonableness of 
24the capital costs of the initial clean coal facility, the 
25Commission shall consider the knowledge and circumstances 
26prevailing at the time of each relevant decision or action of 
 
 
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1the owner of the initial clean coal facility and its 
2contractors. 
3 The Commission may determine that the amount of 
4pre-approved capital costs may be increased only after notice 
5and a hearing. At that hearing, the Capital Development Board 
6shall submit a report recommending whether the incremental 
7costs should be approved in full or in part or rejected. The 
8Commission may approve in whole or in part or reject the 
9incremental capital costs based on whether they are reasonable. 
10At the request of the owner of the initial clean coal facility 
11made not more often than once every 12 months during the 
12construction period of the initial clean coal facility, the 
13Commission shall conduct interim reviews to determine whether 
14capital costs specified in such request and incurred or to be 
15incurred by the owner of the initial clean coal facility, are 
16reasonable. 
17 The Capital Development Board shall monitor the 
18construction of the initial clean coal facility for the full 
19duration of construction. The Capital Development Board, in its 
20discretion, may retain third parties to facilitate such 
21monitoring, provided that such third parties shall not own or 
22control any direct or indirect interest in the initial clean 
23coal facility and shall have no contractual relationship with 
24the initial clean coal facility. The initial clean coal 
25facility shall pay a reasonable fee as required by the Capital 
26Development Board for the Capital Development Board's services 
 
 
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1under this subsection (b), and such fee shall not be passed 
2through to a utility or its customers. If a third party is 
3retained by the Capital Development Board for the determination 
4of a range of capital costs or monitoring of construction, the 
5initial clean coal facility must pay for the third party's 
6reasonable fees, and such costs may not be passed through to a 
7utility or its customers. 
8 The provisions of this subsection (b) shall apply to the 
9capital costs for the initial construction of the initial clean 
10coal facility and not to capital costs incurred beyond the 
11initial construction, including costs for replacement of 
12equipment and capital improvements, which capital costs shall 
13be subject to review by the Commission and included in the 
14formula rate to the extent they are determined to be prudently 
15incurred. 
16 (c) Operations and maintenance costs set by the Commission 
17according to this subsection (c) shall be included in the 
18formula rate. Operations and maintenance costs mean costs 
19incurred for the administration, supervision, operation, 
20maintenance, preservation, and protection of the initial clean 
21coal facility's physical plant and other costs recorded in the 
22Operation and Maintenance Expense Accounts and other 
23applicable Income Statement Accounts of the Uniform System of 
24Accounts for the initial clean coal facility. The Commission 
25shall assess the prudency of the operations and maintenance 
26costs for the initial clean coal facility and shall allow the 
 
 
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1initial clean coal facility to include in the formula rate only 
2those costs the Commission deems to be prudent. The Commission 
3may in its discretion retain an expert to assist in its review 
4of operations and maintenance costs. The initial clean coal 
5facility shall pay for the expert's fees if an expert is 
6retained by the Commission, and such costs may not be passed 
7through to a utility or its customers. The Commission's 
8determination regarding the amount of operations and 
9maintenance costs that may be included in the formula rate for 
10each year shall be made in accordance with this Section.
11 (d) Actual fuel costs shall be set by the Agency through a 
12SNG feedstock procurement, pursuant to Section 1-78 of this 
13Act, to be performed at least every 5 years, and purchased by 
14the initial clean coal facility pursuant to a reasonable fuel 
15supply plan, with coal comprising at least 50% of the total 
16feedstock over the term of a sourcing agreement with all coal 
17having high volatile bituminous rank and greater than 1.7 
18pounds of sulfur per million btu content, SNG derived from coal 
19comprising at least 50% of the fuel to generate electricity, 
20SNG derived from biomass comprising up to 10% of the fuel to 
21generate electricity with the approval of the Commission, and 
22natural gas comprising the remainder of the fuel to generate 
23electricity. Actual fuel costs shall consist of all costs 
24associated with the procurement of fuel, including, but not 
25limited to, commodity costs, transportation costs, 
26administrative costs, and costs relating to the procurement 
 
 
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1process. Actual fuel costs, as so determined, shall be reduced 
2by miscellaneous net revenue received by the owner of the 
3initial clean coal facility, including, but not limited to, net 
4revenue from the sale of emission allowances, if any, 
5substitute natural gas, if any, grants or other support 
6provided by the State of Illinois or the United States 
7Government, firm transmission rights, if any, by-products 
8produced by the facility, any capacity derived from the 
9facility and bid into the capacity markets or otherwise sold 
10and any energy generated as a result of such capacity being 
11called, whether generated from synthesis gas derived from coal, 
12from SNG, or from natural gas, less non-generation variable 
13costs. "Non-generation variable costs" means all costs, other 
14than fuel costs, associated with the production of SNG that is 
15not consumed by the initial clean coal facility's power block, 
16which costs vary directly with the level of production of SNG. 
17Actual fuel costs shall be calculated pursuant to this 
18subsection (d) and included in the formula rate without any 
19determination by the Commission as to prudency.
20 (e) Sequestration costs set by the Commission according to 
21this subsection (e) shall be included in the formula rate.
22 "Sequestration costs" means costs incurred to (1) capture 
23carbon dioxide; (2) compress carbon dioxide; (3) build, 
24operate, and maintain a sequestration site in which carbon 
25dioxide may be injected; (4) build, operate, and maintain a 
26carbon dioxide pipeline, which is owned by the initial clean 
 
 
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1coal facility; (5) transport the carbon dioxide to a 
2sequestration site or a pipeline; and (6) perform monitoring, 
3verification and other activities associated with carbon 
4capture and sequestration.
5 "Sequestration capital costs" means sequestration costs 
6recorded in the Electric Plant Accounts and other applicable 
7Balance Sheet Accounts of the Uniform System of Accounts for 
8the initial clean coal facility.
9 "Sequestration operations and maintenance costs" means 
10sequestration costs that are recorded in the Operation and 
11Maintenance Expense Accounts and other applicable Income 
12Statement Accounts of the Uniform System of Accounts for the 
13initial clean coal facility and shall include maintenance, 
14monitoring, and verification costs.
15 The Capital Development Board shall calculate an estimate 
16of sequestration capital costs that it believes would be a 
17reasonable cost for the initial clean coal facility's 
18sequestration facilities and an estimate of average annual 
19sequestration operations and maintenance costs that it 
20believes would be a reasonable average annual operation and 
21maintenance cost for the initial clean coal facility's carbon 
22capture and sequestration activities. The Capital Development 
23Board shall commence performing its responsibilities under 
24this subsection (e) within 30 days after the effective date of 
25this amendatory Act of the 97th General Assembly. In 
26determining sequestration capital costs and sequestration 
 
 
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1operations and maintenance costs, the Capital Development 
2Board shall base its evaluation and judgment on professional 
3engineering and regulatory accounting principles and include 
4any cost information and update on costs that may be provided 
5by the initial clean coal facility and shall not employ least 
6cost resource principles. In addition the Capital Development 
7Board may: (A) include in its consideration cost estimate 
8information in a facility cost report, if any, that was 
9prepared and submitted by the initial clean coal facility to 
10the Commission in accordance with paragraph (4) of subsection 
11(d) of Section 1-75 of this Act; (B) consult as much as it 
12deems necessary with the initial clean coal facility; (C) 
13conduct whatever research and investigation it deems 
14necessary; and (D) retain third parties to assist in its 
15determination, provided that such third parties shall not own 
16or control any direct or indirect interest in the initial clean 
17coal facility and shall have no contractual relationship with 
18the initial clean coal facility. The initial clean coal 
19facility shall cooperate with the Capital Development Board in 
20any investigation it deems necessary.
21 The Capital Development Board shall make its final 
22determination of sequestration capital costs and sequestration 
23operations and maintenance costs and submit such determination 
24to the Commission no later than 90 days after the Capital 
25Development Board is required to commence performing its 
26responsibilities under this subsection (e). The Capital 
 
 
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1Development Board shall monitor construction of the 
2sequestration facilities in the same manner, and with the same 
3rights to retain an expert and recover the costs thereof, as 
4set forth in subsection (b) of this Section. 
5 "Actual sequestration costs" means for any year the sum of: 
6(i) the annual amortized portion of sequestration capital 
7costs, based on level amortization from the later of the date 
8such costs are incurred and the commercial operation date until 
9the end of the term of the sourcing agreements; (ii) the rate 
10of return approved by the Commission pursuant to subsection (f) 
11of this Section applied to sequestration capital costs; and 
12(iii) the sequestration operations and maintenance costs 
13incurred in such year. 
14 "Target sequestration costs" means the sum of: (i) the 
15annual amortized portion of the estimated sequestration 
16capital costs determined by the Capital Development Board, 
17based on level amortization from the later of the date such 
18costs are incurred and the commercial operation date until the 
19end of the term of the sourcing agreements; (ii) the rate of 
20return approved by the Commission pursuant to subsection (f) of 
21this Section applied to the estimated sequestration capital 
22costs determined by the Capital Development Board; (iii) the 
23estimate of average annual sequestration operations and 
24maintenance costs determined by the Capital Development Board, 
25escalated in accordance with an escalation factor to be 
26provided in the sourcing agreement from the date of the Capital 
 
 
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1Development Board's determination to the mid-point of the 
2applicable year; (iv) the sequestration cost underrun, if any, 
3for the immediately preceding year, except to the extent 
4applied to allow recovery of a sequestration cost overrun from 
5a prior year; and (v) any sequestration costs that are the 
6result of a change in law or non-insurable force majeure.
7 "Sequestration cost underrun" means for any year the 
8excess, if any, of target sequestration costs for such year 
9over actual sequestration costs for such year.
10 "Sequestration cost overrun" means for any year the excess, 
11if any, of actual sequestration costs for such year over target 
12sequestration costs for such year.
13 For any year in which there is a sequestration cost 
14underrun, all actual sequestration costs shall be conclusively 
15deemed to be prudent and shall be included in the formula rate 
16with no further review or approval in respect of whether they 
17are prudently incurred. The Commission shall review the costs 
18to ensure they are mathematically correct.
19 For any year in which there is a sequestration cost 
20overrun, the Commission shall determine whether all or a 
21portion of such sequestration cost overrun was prudently 
22incurred, except that the rate of return shall not be subject 
23to review. If the Commission determines that the sequestration 
24cost overrun was prudently incurred, one-third of such 
25sequestration cost overrun shall be included in the formula 
26rate and recoverable by the initial clean coal facility and 
 
 
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1two-thirds of such sequestration cost overrun shall be borne by 
2the initial clean coal facility and not passed through to a 
3utility, an alternative retail electric supplier, or the 
4customers of a utility unless and until there is a 
5sequestration cost underrun for a subsequent year, in which 
6event the sequestration cost overrun will be included in the 
7formula rate and recoverable by the initial clean coal facility 
8up to the amount of the sequestration cost underrun; provided, 
9however, that if for any year two-thirds of such sequestration 
10cost overrun exceeds the difference of $20,000,000 minus the 
11amount of penalty, if any, payable by the initial clean coal 
12facility pursuant to Section 1-76.5 with respect to that year, 
13the amount of such excess shall also be included in the formula 
14rate and recoverable by the initial clean coal facility. The 
15detailed procedures for implementing this provision shall be 
16set forth in the sourcing agreements, which procedures shall 
17include a mechanism for equitably adjusting target 
18sequestration costs for any year in which the quantity of 
19carbon dioxide actually captured and sequestered by the initial 
20clean coal facility is greater than the quantity assumed in 
21calculating the estimated costs for such year.
22 "Change in law" means any change, including any enactment, 
23repeal, or amendment, in a law, ordinance, rule, regulation, 
24interpretation, permit, license, consent or order, including 
25those relating to taxes or to environmental matters, or in the 
26interpretation or application thereof by any governmental 
 
 
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1authority occurring after January 1, 2011.
2 "Non-insurable force majeure" means events outside of the 
3reasonable control of the owner of the initial clean coal 
4facility and its contractors, subcontractors, and agents that 
5are not included on a list, to be attached to the sourcing 
6agreement and subject to the procedures set forth in paragraph 
7(4) of subsection (d) of Section 1-75 of this Act, of events 
8that are customarily covered by builder's risk insurance 
9policies for the construction of electric generating plants and 
10other large process plants in the United States. "Non-insurable 
11force majeure" shall not include changes in prices or other 
12changes in market conditions.
13 (f) The Commission shall determine within 120 days after 
14the effective date of this amendatory Act of the 97th General 
15Assembly or 120 days after the owner of the initial clean coal 
16facility files initial direct testimony regarding rate of 
17return with the Commission, whichever is later, the total rate 
18of return on invested capital for the initial clean coal 
19facility following notice and a public hearing. At the hearing, 
20all interested parties, including utilities, alternative 
21retail electric suppliers, the Attorney General, the Agency, 
22and customers, shall be given an opportunity to be heard. In 
23determining the rate of return, the Commission shall select a 
24sufficient return on investment so as to enable the initial 
25clean coal facility to attract capital in financial markets at 
26competitive rates. The Commission shall consider the rates of 
 
 
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1return received by developers of facilities similar to the 
2initial clean coal facility inside or outside Illinois, the 
3need to balance an incentive for clean-coal technology with the 
4need to protect Illinois ratepayers from high electricity 
5costs, and any other information the Commission deems relevant.
6 The Agency shall recommend a rate of return to the 
7Commission utilizing the criteria in this subsection (f). The 
8Commission shall further take into account the recommendation 
9of the Agency, but shall not be bound by it. The rate of return 
10shall be no lower than 75 basis points lower than the weighted 
11average authorized total rates of return of the electric 
12utilities in accordance with original cost rate base for their 
13electric distribution assets as of January 1, 2011. 
14Notwithstanding the minimum rate of return established in the 
15preceding sentence, the rate of return shall be no greater than 
16the total rate of return on invested capital that the initial 
17clean coal facility would achieve based on an assumed 55% debt 
18and 45% equity capital structure, with the cost of debt being 
19the actual average cost, including all associated costs and 
20fees, of the initial clean coal facility's debt and the cost of 
21equity being 11.5%. The Commission's determination of the rate 
22of return shall include a mechanism providing for a one-time 
23adjustment at or about the commencement of commercial operation 
24of the initial clean coal facility to adjust for changes in 
25applicable Treasury yield rates between the date of its 
26provisional determination of the rate of return and the dates 
 
 
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1of construction period borrowing by the initial clean coal 
2facility, which adjustment shall apply to 55% of total capital.
3 The Commission's decision shall be final and not subject to 
4any rehearing or administrative or judicial review. The rate of 
5return determined by the Commission pursuant to this subsection 
6(f) shall apply for the term of the sourcing agreements and 
7shall not be subject to change, except for the one-time 
8adjustment to reflect Treasury yield rate changes as expressly 
9contemplated by this subsection (f) and as otherwise expressly 
10provided in subsection (b) of Section 1-76.5 of this Act.
11 (g) The following shall not be included in determining the 
12formula rate: advertising expenses that do not meet the 
13requirements of Sections 9-225 and 9-226 of the Public 
14Utilities Act, political activity or lobbying expenses as 
15defined by Section 9-224 of the Public Utilities Act, social 
16club dues, or charitable contributions, to the extent, in each 
17case, that a utility would not be permitted to recover such 
18costs.
19 (h) Except as otherwise provided in subsections (b) and (f) 
20of this Section 1-76, within 30 days after a decision of the 
21Commission on recoverable costs under this Section, any 
22interested party to the Commission's decision may apply for a 
23rehearing with respect to the decision. The Commission shall 
24receive and consider such application for rehearing and shall 
25grant or deny the application in whole or in part within 20 
26days from the date of the receipt thereof by the Commission. If 
 
 
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1no rehearing is applied for within the required 30 days or an 
2application for rehearing is denied, the Commission decision 
3shall be final.
4 If an application for rehearing is granted, the Commission 
5shall hold a rehearing within 30 days after granting the 
6application. The decision of the Commission upon rehearing 
7shall be final. Except as otherwise provided in subsections (b) 
8and (f) of this Section 1-76, any person affected by a decision 
9of the Commission under this Section 1-76 may have the decision 
10reviewed only under and in accordance with the Administrative 
11Review Law. Except as otherwise provided in subsections (b) and 
12(f) of this Section 1-76, the provisions of the Administrative 
13Review Law, all amendments modifications thereof and the rules 
14adopted pursuant thereto, shall apply to and govern all 
15proceedings for the judicial review of final administrative 
16decisions of the Commission under this subsection (h). The term 
17"administrative decision" is defined as in Section 3-101 of the 
18Code of Civil Procedure.
19 (i) The Capital Development Board shall adopt and make 
20public a policy detailing the process for retaining third 
21parties under this Section. Any third parties retained to 
22assist with calculating the capital costs or sequestration 
23costs shall be retained no later than 45 days after the 
24effective date of this amendatory Act of the 97th General 
25Assembly. 

 
 
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1 (20 ILCS 3855/1-76.5 new)
2 Sec. 1-76.5. Capture and sequestration requirements for 
3initial clean coal facility.
4 (a) The initial clean coal facility shall provide 
5documentation to the Commission each year of commercial 
6operation accurately reporting the quantity of carbon 
7emissions from the facility that have been captured and 
8sequestered and report any quantities of carbon released from 
9the site or sites at which carbon emissions were sequestered in 
10prior years, based on continuous monitoring of such sites. If, 
11in any year, the owner of the facility fails to demonstrate 
12that (1) the portion of the facility that produces SNG captured 
13and sequestered at least 90% of the carbon dioxide it would 
14otherwise emit and (2) the initial clean coal facility as a 
15whole captured and sequestered at least 50% of the total carbon 
16emissions that the facility would otherwise emit or if the 
17sequestration of emissions from prior years has failed, 
18resulting in the release of carbon dioxide into the atmosphere, 
19or both, then the owner of the initial clean coal facility must 
20pay a penalty of $20,000,000, which shall be deposited into the 
21Energy Efficiency Trust Fund and distributed pursuant to 
22subsection (b) of Section 6-6 of the Renewable Energy, Energy 
23Efficiency, and Coal Resources Development Law of 1997.
24 If during the first 12 months of commercial operation of 
25the initial clean coal facility, there are more than 4 stops 
26and starts of the portion of the facility that produces SNG, 
 
 
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1with each stop and start of an individual unit constituting one 
2stop and start, then the calculation of the quantities 
3described in this subsection (a) shall not take into account 
4any carbon dioxide emissions from the portion of the facility 
5that produces SNG occurring during the stop and start-up 
6periods, including related periods of non-steady state 
7operation, associated with such excess stops and starts. The 
8penalty resulting from the failure to capture and sequester at 
9least the minimum amount of carbon dioxide shall not be passed 
10through to a utility, an alternative retail electric suppler, 
11or the customers of a utility. The initial clean coal facility 
12shall not forfeit its designation as a clean coal facility if 
13the facility fails to fully comply with the applicable carbon 
14sequestration requirements in any given year, provided the 
15requisite penalties are complied with.
16 (b) In addition to any penalty for the initial clean coal 
17facility's failure to capture and sequester at least its 
18minimum sequestration requirement, the Attorney General, on 
19behalf of the People of the State of Illinois, shall 
20specifically enforce the facility's sequestration requirement 
21and the other terms of this contract provision. Such action may 
22be filed in any circuit court in Illinois. By entering into a 
23sourcing agreement pursuant to subsection (d) of Section 1-75 
24of this Act, the initial clean coal facility agrees to waive 
25any objections to venue or to the jurisdiction of the court 
26with regard to the Attorney General's action for specific 
 
 
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1performance under this Section. The Commission may reduce the 
2recoverable rate of return approved pursuant to Section 1-76 of 
3this Act for the facility if the facility willfully fails to 
4comply with the carbon capture and sequestration requirements 
5set forth in this Section.
6 (c) Compliance with the capture and sequestration 
7requirements of this Section shall be assessed annually by the 
8Commission, which may in its discretion retain an expert to 
9facilitate its assessment. The initial clean coal facility 
10shall pay for the expert's reasonable fees if an expert is 
11retained by the Commission, and such costs shall not be passed 
12through to a utility, an alternative retail electric supplier, 
13or the customers of a utility. The Commission shall adopt and 
14make public a policy detailing the process for retaining an 
15expert under this Section.
16 (d) Responsibility for compliance with the capture and 
17sequestration requirements specified in this Section for the 
18initial clean coal facility shall reside solely with the 
19initial clean coal facility regardless of whether the facility 
20has contracted with another party to capture, transport, or 
21sequester carbon dioxide. 

22 (20 ILCS 3855/1-77 new)
23 Sec. 1-77. Sequestration permitting, oversight, and 
24investigations.
25 (a) No clean coal facility, initial clean coal facility, or 
 
 
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1clean coal SNG facility may transport or sequester carbon 
2dioxide unless the Commission approves the method of carbon 
3dioxide transportation or sequestration as provided in this 
4Section. Approval shall be required regardless of whether the 
5facility has contracted with another party to transport or 
6sequester the carbon dioxide. Nothing in this subsection (a) 
7shall release the owner or operator of a carbon dioxide 
8sequestration site or carbon dioxide pipeline from any other 
9permitting requirements under applicable State and federal 
10laws, statutes, rules, or regulations.
11 (b) No later than 3 months prior to the date upon which the 
12company intends to commence construction of the facility, the 
13owner of the facility shall file with the Commission a carbon 
14dioxide transportation or sequestration plan. The Commission 
15shall review proposed carbon dioxide transportation and 
16sequestration methods and shall approve those methods it deems 
17reasonable and cost-effective. For purposes of this review, 
18"cost-effective" means a commercially reasonable price for 
19similar carbon dioxide transportation or sequestration 
20techniques. In determining whether sequestration through 
21injection is reasonable and cost-effective, the Commission may 
22consult with the Illinois State Geological Survey.
23 The Commission shall hold a public hearing within 30 days 
24after receipt of the facility's carbon dioxide transportation 
25or sequestration plan. The Commission shall post notice of the 
26review on its website upon submission of a carbon dioxide 
 
 
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1transportation or sequestration method and shall accept 
2written public comments. The Commission shall take the comments 
3into account when making its decision. However, the Commission 
4shall not approve a carbon dioxide sequestration method if the 
5owner or operator of the sequestration site has not received 
6(1) an Underground Injection Control permit from the Illinois 
7Environmental Protection Agency or the United States 
8Environmental Protection Agency pursuant to the Environmental 
9Protection Act, (2) an Underground Injection Control permit 
10from the Illinois Department of Natural Resources pursuant to 
11the Illinois Oil and Gas Act, or (3) any applicable permit from 
12the state in which the sequestration site is located if the 
13sequestration shall take place outside of Illinois. The 
14Commission shall approve or deny the carbon dioxide 
15transportation or sequestration method within 90 days after the 
16receipt of all required information.
17 (c) At least annually, the Illinois Environmental 
18Protection Agency shall inspect all carbon dioxide 
19sequestration sites in Illinois to ensure the safety and 
20feasibility of those sequestration sites. However, the 
21Illinois Environmental Protection Agency may, as often as 
22deemed necessary, monitor and conduct investigations of those 
23sites. The owner or operator of the sequestration site must 
24cooperate with the Illinois Environmental Protection Agency 
25investigations of carbon dioxide sequestration sites. If the 
26Illinois Environmental Protection Agency determines at any 
 
 
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1time a site creates conditions that warrant the issuance of a 
2seal order under Section 34 of the Environmental Protection 
3Act, then the Illinois Environmental Protection Agency shall 
4seal the site pursuant to the Environmental Protection Act. If 
5the Illinois Environmental Protection Agency determines at any 
6time a carbon dioxide sequestration site creates conditions 
7that warrant the institution of a civil action for an 
8injunction under Section 43 of the Environmental Protection 
9Act, then the Illinois Environmental Protection Agency shall 
10request the State's Attorney or the Attorney General institute 
11such action. The Illinois Environmental Protection Agency 
12shall provide notice of any such actions as soon as possible on 
13its website.
14 (d) At least annually, the Commission shall inspect all 
15carbon dioxide pipelines in Illinois that transport carbon 
16dioxide to ensure the safety and feasibility of those 
17pipelines. However, the Commission may, as often as deemed 
18necessary, monitor and conduct investigations of those 
19pipelines. The owner or operator of the pipeline must cooperate 
20with the Commission investigations of the carbon dioxide 
21pipelines. If the Commission determines at any time that a 
22carbon dioxide pipeline creates conditions that warrant the 
23issuance of a seal order under Section 34 of the Environmental 
24Protection Act, then the Commission shall notify the Illinois 
25Environmental Protection Agency of such conditions. In 
26circumstances in which the carbon dioxide pipeline creates a 
 
 
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1substantial danger to the environment or public health or to 
2the welfare of persons when the danger is to the livelihood of 
3those persons, the State's Attorney or Attorney General may, 
4upon the request of the Commission or on his or her own motion, 
5institute a civil action for an immediate injunction to halt 
6any discharge or other activity causing or contributing to the 
7danger or require any other action as may be necessary. The 
8Court may issue an ex parte order and shall schedule a hearing 
9on the matter no later than 3 business days after the date of 
10the injunction. The Commission shall provide notice of any such 
11actions as soon as possible on its website. 

12 (20 ILCS 3855/1-78 new)
13 Sec. 1-78. Feedstock procurement.
14 (a) A feedstock procurement plan shall, every 5 years, or 
15more frequently with respect to feedstock that cannot 
16reasonably be procured for a 5-year period on acceptable terms, 
17be prepared for the initial clean coal facility based on the 
18initial clean coal facility's projection of feedstock usage and 
19ratios, and consistent with the applicable requirements of this 
20Act. The plan shall specifically identify the feedstock 
21products to be procured following plan approval and shall 
22follow all the requirements set forth in this Act and all 
23applicable State and federal laws, statutes, rules, or 
24regulations, as well as Commission orders. Nothing in this 
25Section precludes consideration of contracts longer than 5 
 
 
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1years and related forecast data. Any feedstock procurement 
2occurring in accordance with this plan shall be competitively 
3bid through a request for proposals process. Approval and 
4implementation of the feedstock procurement plan shall be 
5subject to review and approval by the Commission according to 
6the provisions set forth in this Section. A feedstock 
7procurement plan shall include each of the following 
8components:
9  (1) Daily load analysis. This analysis shall include:
10   (A) multi-year historical analysis of hourly 
11 loads; and
12   (B) known or projected changes to future loads. 
13  (2) Determination of the fuel specifications required 
14 for the initial clean coal facility, including: 
15   (A) feedstock mix, as set by the initial clean coal 
16 facility with coal having high volatile bituminous 
17 rank and greater than 1.7 pounds of sulfur per million 
18 btu content and comprising at least 50% of the total 
19 feedstock over the term of the sourcing agreement;
20   (B) volume of each feedstock required;
21   (C) quality standards of each feedstock;
22   (D) transportation and delivery requirements and 
23 associated costs and impacts on the performance, 
24 availability, and reliability of the initial clean 
25 coal facility;
26   (E) technical specifications of the initial clean 
 
 
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1 coal facility for its feedstocks; and
2   (F) appropriate testing of any proposed feedstock 
3 before it is incorporated into the feedstock 
4 procurement plan or process to determine the effect of 
5 such feedstock on the performance, availability, and 
6 reliability of the initial clean coal facility. 
7 (b) The feedstock procurement process shall be 
8administered by a feedstock procurement administrator and 
9monitored by a feedstock procurement monitor. 
10  (1) The feedstock procurement administrator shall: 
11   (A) design the final feedstock procurement process 
12 in accordance with subsection (d) of this Section 
13 following Commission approval of the feedstock 
14 procurement plan;
15   (B) develop feedstock benchmarks in accordance 
16 with paragraph (3) of subsection (d) of this Section to 
17 be used to evaluate bids; these benchmarks shall be 
18 submitted to the Commission for review and approval on 
19 a confidential basis prior to the feedstock 
20 procurement event;
21   (C) serve as the interface between the initial 
22 clean coal facility and feedstock suppliers regarding 
23 bidding and contract negotiations;
24   (D) manage the bidder pre-qualification and 
25 registration process;
26   (E) obtain the initial clean coal facility's 
 
 
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1 agreement to the final form of all supply contracts and 
2 credit collateral agreements;
3   (F) administer the request for feedstock proposals 
4 process;
5   (G) have the discretion to negotiate to determine 
6 whether bidders are willing to lower the price of bids 
7 that meet the benchmarks approved by the Commission; 
8 any post-bid negotiations with bidders shall be 
9 limited to price only and shall be completed within 24 
10 hours after opening the sealed bids and shall be 
11 conducted in a fair and unbiased manner; in conducting 
12 the negotiations, there shall be no disclosure of any 
13 information derived from proposals submitted by 
14 competing bidders; if information is disclosed to any 
15 bidder, it shall be provided to all competing bidders;
16   (H) maintain confidentiality of supplier and 
17 bidding information in a manner consistent with all 
18 applicable laws, rules, regulations, and tariffs;
19   (I) submit a confidential report to the Commission 
20 recommending acceptance or rejection of bids;
21   (J) notify the facility of contract counterparties 
22 and contract specifics; and
23   (K) administer related contingency feedstock 
24 procurement events. 
25  (2) The feedstock procurement monitor, who shall be 
26 retained by the Commission, shall:
 
 
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1   (A) monitor interactions among the feedstock 
2 procurement administrator, suppliers, and the initial 
3 clean coal facility;
4   (B) monitor and report to the Commission on the 
5 progress of the feedstock procurement process;
6   (C) provide an independent confidential report to 
7 the Commission regarding the results of the feedstock 
8 procurement event;
9   (D) preserve the confidentiality of supplier and 
10 bidding information in a manner consistent with all 
11 applicable laws, rules, regulations, and tariffs;
12   (E) provide expert advice to the Commission and 
13 consult with the feedstock procurement administrator 
14 regarding issues related to feedstock procurement 
15 process design, rules, protocols, and policy-related 
16 matters;
17   (F) consult with the feedstock procurement 
18 administrator regarding the development and use of 
19 benchmark criteria, standard form contracts, credit 
20 policies, and bid documents; and
21   (G) assess compliance with the procurement plans 
22 approved by the Commission. 
23 (c) The feedstock procurement process shall be conducted as 
24follows:
25  (1) Beginning in 2012, the initial clean coal facility 
26 shall annually provide a range of feedstock requirement 
 
 
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1 forecasts to the Agency by July 15 of each year, or such 
2 other date as may be required by the Commission or Agency. 
3 The feedstock requirement forecasts shall cover the 5-year 
4 feedstock procurement planning period for the next 
5 feedstock procurement plan, or such other longer period 
6 that the Agency or the Commission may require, and shall 
7 include daily data representing a high generation, low 
8 generation and expected generation scenario for the 
9 initial clean coal facility. The initial clean coal 
10 facility shall provide supporting data and assumptions for 
11 each of the scenarios.
12  (2) Beginning in 2012, the Agency shall at least every 
13 5 years prepare a feedstock procurement plan by August 15th 
14 of the applicable year, or such other date as may be 
15 required by the Commission. The feedstock procurement plan 
16 shall identify the portfolio of feedstocks to be procured. 
17 Copies of the feedstock procurement plan shall be posted 
18 and made publicly available on the Agency's and 
19 Commission's websites, and copies shall also be provided to 
20 the initial clean coal facility. The initial clean coal 
21 facility shall have 30 days following the date of posting 
22 to provide comment to the Agency on the feedstock 
23 procurement plan. Other interested entities also may 
24 comment on the feedstock procurement plan. All comments 
25 submitted to the Agency shall be specific, supported by 
26 data or other detailed analyses, and, if objecting to all 
 
 
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1 or a portion of the feedstock procurement plan, accompanied 
2 by specific alternative wording or proposals. All comments 
3 shall be posted on the Agency's and Commission's websites. 
4 During this 30-day comment period, the Agency shall hold at 
5 least one public hearing for the purpose of receiving 
6 public comment on the procurement plan. Within 14 days 
7 following the end of the 30-day review period, the Agency 
8 shall revise the feedstock procurement plan as necessary 
9 based on the comments received, file the feedstock 
10 procurement plan with the Commission, and post the 
11 feedstock procurement plan on the websites.
12  (3) Within 5 days after the filing of the feedstock 
13 procurement plan, any person objecting to the feedstock 
14 procurement plan shall file an objection with the 
15 Commission. Within 10 days after the filing, the Commission 
16 shall determine whether a hearing is necessary. The 
17 Commission shall enter its order confirming or modifying 
18 the feedstock procurement plan within 90 days after the 
19 filing of the feedstock procurement plan by the Agency.
20  (4) The Commission shall approve the feedstock 
21 procurement plan, including expressly the forecast used in 
22 the feedstock procurement plan, if the Commission 
23 determines that it shall ensure adequate, reliable, 
24 affordable, and environmentally sustainable feedstocks to 
25 the clean coal facility at the lowest total cost over time, 
26 taking into account any benefits of price stability and 
 
 
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1 other criteria set forth in this Section. 
2 (d) The feedstock procurement process shall include each of 
3the following components: 
4  (1) Solicitation, pre-qualification, and registration 
5 of bidders. The feedstock procurement administrator shall 
6 disseminate information to potential bidders to promote a 
7 feedstock procurement event, notify potential bidders that 
8 the feedstock procurement administrator may enter into a 
9 post-bid price negotiation with bidders that meet the 
10 applicable benchmarks, provide supply requirements, and 
11 otherwise explain the competitive feedstock procurement 
12 process. In addition to such other publication as the 
13 feedstock procurement administrator determines is 
14 appropriate, this information shall be posted on the 
15 Agency's and the Commission's websites. The feedstock 
16 procurement administrator shall also administer the 
17 prequalification process, including evaluation of 
18 creditworthiness, compliance with feedstock procurement 
19 rules, and agreement to the standard form contract 
20 developed pursuant to paragraph (2) of this subsection (d). 
21 The feedstock procurement administrator shall then 
22 identify and register bidders to participate in the 
23 feedstock procurement event.
24  (2) Standard contract forms and credit terms and 
25 instruments. The feedstock procurement administrator, in 
26 consultation with the initial clean coal facility, 
 
 
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1 electric utilities, alternative retail electric suppliers, 
2 the Commission, and other interested parties and subject to 
3 Commission oversight, shall develop and provide standard 
4 contract forms for the supplier contracts that meet 
5 generally accepted industry practices. Standard credit 
6 terms and instruments that meet generally accepted 
7 industry practices shall be similarly developed. The 
8 feedstock procurement administrator shall make available 
9 to the Commission all written comments it receives on the 
10 contract forms, credit terms, or instruments. If the 
11 feedstock procurement administrator cannot reach agreement 
12 with the initial clean coal facility as to the contract 
13 terms and conditions, then the feedstock procurement 
14 administrator must notify the Commission of any disputed 
15 terms and the Commission shall resolve the dispute. The 
16 terms of the contracts shall not be subject to negotiation 
17 by winning bidders, and the bidders must agree to the terms 
18 of the contract in advance so that winning bids are 
19 selected solely on the basis of price.
20  (3) Establishment of a market-based price benchmark. 
21 As part of the development of the feedstock procurement 
22 process, the feedstock procurement administrator, in 
23 consultation with the Commission staff, Agency staff, and 
24 the feedstock procurement monitor, shall establish 
25 benchmarks for evaluating the final prices in the contracts 
26 for each of the feedstocks that shall be procured through 
 
 
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1 the feedstock procurement process. The benchmarks shall be 
2 based on price data for similar feedstocks for the same 
3 delivery period and similar delivery points, or other 
4 delivery points after adjusting for that difference. The 
5 price benchmarks may also be adjusted to take into account 
6 differences between the information reflected in the 
7 underlying data sources and the specific feedstocks and 
8 gasification feedstock procurement process being used to 
9 procure for the initial clean coal facility. The benchmarks 
10 shall be confidential but shall be provided to the 
11 Commission, and shall be subject to Commission review and 
12 approval, prior to a feedstock procurement event.
13  (4) Request for proposals. The feedstock procurement 
14 administrator shall design and issue a request for 
15 proposals to supply coal or natural gas in accordance with 
16 the initial clean coal facility's usage plan, as approved 
17 by the Commission. The request for proposals shall set 
18 forth a procedure for sealed, binding commitment bidding 
19 with pay-as-bid settlement, and provision for selection of 
20 bids on the basis of price.
21  (5) A plan for implementing contingencies in the event 
22 of supplier default or failure of the feedstock procurement 
23 process to fully meet the expected load requirement due to 
24 insufficient supplier participation, Commission rejection 
25 of results, or any other cause. The plan must be specific 
26 to the initial clean coal facility's feedstock 
 
 
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1 specifications and requirements. 
2 The feedstock procurement process described in this 
3subsection (d) is exempt from the requirements of the Illinois 
4Procurement Code pursuant to Section 20-10 of the Illinois 
5Procurement Code.
6 (e) Within 2 business days after opening the sealed bids, 
7the feedstock procurement administrator shall submit a 
8confidential report to the Commission. The report shall contain 
9the results of the bidding for each of the feedstock types 
10along with the feedstock procurement administrator's 
11recommendation for the acceptance and rejection of bids based 
12on the price benchmark criteria and other factors observed in 
13the process. The feedstock procurement monitor also shall 
14submit a confidential report to the Commission within 2 
15business days after opening the sealed bids. The report shall 
16contain the feedstock procurement monitor's assessment of 
17bidder behavior in the process, as well as an assessment of the 
18feedstock procurement administrator's compliance with the 
19feedstock procurement process and rules. The Commission shall 
20review the confidential reports submitted by the feedstock 
21procurement administrator and feedstock procurement monitor 
22and shall accept or reject the recommendations of the feedstock 
23procurement administrator within 2 business days after receipt 
24of the reports.
25 (f) Within 3 business days after the Commission decision 
26approving the results of a feedstock procurement event, the 
 
 
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1initial clean coal facility shall enter into binding 
2contractual arrangements with the winning suppliers using 
3standard form contracts.
4 (g) The names of the successful bidders and the amount of 
5feedstock to be delivered for each contract type and for each 
6contract term shall be made available to the public at the time 
7of Commission approval of a feedstock procurement event. The 
8Commission, the procurement monitor, the feedstock procurement 
9administrator, the Agency, and all participants in the 
10feedstock procurement process shall maintain the 
11confidentiality of all other supplier and bidding information 
12in a manner consistent with all applicable laws, rules, 
13regulations, and tariffs. Confidential information, including 
14the confidential reports submitted by the feedstock 
15procurement administrator and feedstock procurement monitor 
16pursuant to subsection (e) of this Section, shall not be made 
17publicly available and shall not be discoverable by any party 
18in any proceeding, absent a compelling demonstration of need, 
19nor shall those reports be admissible in any proceeding other 
20than one for law enforcement purposes.
21 (h) Within 2 business days after a Commission decision 
22approving the results of a feedstock procurement event or such 
23other date as may be required by the Commission from time to 
24time, the initial clean coal facility shall file for 
25informational purposes with the Commission its actual or 
26estimated feedstock costs reflecting the costs associated with 
 
 
09700SB1653ham001- 114 -LRB097 05721 ASK 56016 a


1the feedstock procurement.
2 (i) The initial clean coal facility shall pay for 
3reasonable costs incurred by the Agency in administering the 
4feedstock procurement events. The Agency shall determine the 
5amount owed for each feedstock procurement event, and the 
6initial clean coal facility shall pay that amount to the Agency 
7within 30 days after being informed by the Agency of the amount 
8owed. Those funds shall be deposited into the Agency Operations 
9Fund, pursuant to Section 1-55 of this Act, to be used to 
10reimburse expenses related to the feedstock procurement.
11 (j) The Commission has the authority to adopt rules to 
12carry out the provisions of this Section. For the public 
13interest, safety, and welfare, the Commission also has the 
14authority to adopt rules to carry out the provisions of this 
15Section on an emergency basis.
16 (k) On or before April 1 of each year, the Commission may, 
17hold an informal hearing for the purpose of receiving comments 
18on the prior year's feedstock procurement process and any 
19recommendations for change.
20 (l) For all purposes of this Section 1-78 and subsection 
21(a-1) of Section 1-75 of this Act, (i) feedstock procurement 
22shall be deemed to include transportation of the feedstock 
23products to the initial clean coal facility (including the 
24acquisition by the initial clean coal facility, as appropriate, 
25of trucks, railcars or other transportation equipment), (ii) 
26feedstock procurement shall not be deemed to include day-to-day 
 
 
09700SB1653ham001- 115 -LRB097 05721 ASK 56016 a


1performance and administration of feedstock procurement and 
2transportation arrangements, including scheduling, weighing, 
3quality determination, acceptance or rejection of shipments, 
4price adjustments, documentation and related activities, all 
5of which shall be performed by the owner of the initial clean 
6coal facility, and (iii) feedstock supplier shall be deemed to 
7include feedstock transporters and providers of feedstock 
8transportation equipment. 

9 (20 ILCS 3855/1-79 new)
10 Sec. 1-79. Limited non-impairment.
11 (a) The State of Illinois pledges that the State shall not 
12enact any law or take any action to:
13  (1) break, or repeal the authority for, sourcing 
14 agreements in a form approved by the Agency and entered 
15 into between electric utilities and the initial clean coal 
16 facility pursuant to subsection (d) of Section 1-75 of this 
17 Act;
18  (2) break, or repeal the authority for, sourcing 
19 agreements in a form approved by the Agency and entered 
20 into between alternative retail electric suppliers and the 
21 initial clean coal facility;
22  (3) deny public utilities full cost recovery for their 
23 costs incurred under those sourcing agreements;
24  (4) deny the initial clean coal facility full cost 
25 recovery under those sourcing agreements for costs that are 
 
 
09700SB1653ham001- 116 -LRB097 05721 ASK 56016 a


1 recoverable under Section 1-76 of this Act.
2  (5) repeal or remove the requirement that electric 
3 utilities shall enter into sourcing agreements with the 
4 initial clean coal facility under paragraph (3) of 
5 subsection (d) of Section 1-75 of this Act or subsection 
6 (c) of Section 16-116 of the Public Utilities Act; or
7  (6) repeal or remove the requirement that alternative 
8 retail electric suppliers shall enter into sourcing 
9 agreements with the initial clean coal facility under item 
10 (iv) of paragraph (5) of subsection (d) of Section 16-115 
11 of the Public Utilities Act.
12 These pledges are for the benefit of the parties to those 
13sourcing agreements and the issuers and holders of bonds or 
14other obligations issued or incurred to finance or refinance 
15the initial clean coal facility. The initial clean coal 
16facility is authorized to include and refer to these pledges in 
17any financing agreement into which it may enter in regard to 
18those sourcing agreements.
19 (b) The State of Illinois retains and reserves all other 
20rights to enact new or amendatory legislation or take any other 
21action, without impairment of the right of the initial clean 
22coal facility to recover prudently incurred costs resulting 
23from the new or amendatory legislation or other action as 
24approved by the Commission, including, but not limited to, 
25legislation or other action that would:
(1) directly or 
26indirectly raise the costs that clean coal facilities must 
 
 
09700SB1653ham001- 117 -LRB097 05721 ASK 56016 a


1incur;
(2) directly or indirectly place additional 
2restrictions, regulations, or requirements on the initial 
3clean coal facility;
(3) prohibit sequestration in general or 
4prohibit a specific sequestration method or project; or
(4) 
5increase minimum sequestration requirements for the initial 
6clean coal facility to a technically feasible extent.

7 Section 10. The Illinois Procurement Code is amended by 
8changing Sections 1-10 and 20-10 as follows:




9 (30 ILCS 500/1-10)



10 Sec. 1-10. Application. 

11 (a) This Code applies only to procurements for which 
12contractors were first
solicited on or after July 1, 1998. This 
13Code shall not be construed to affect
or impair any contract, 
14or any provision of a contract, entered into based on a

15solicitation prior to the implementation date of this Code as 
16described in
Article 99, including but not limited to any 
17covenant entered into with respect
to any revenue bonds or 
18similar instruments.
All procurements for which contracts are 
19solicited between the effective date
of Articles 50 and 99 and 
20July 1, 1998 shall be substantially in accordance
with this 
21Code and its intent.

22 (b) This Code shall apply regardless of the source of the 
23funds with which
the contracts are paid, including federal 
24assistance moneys.
This Code shall
not apply to:


 
 
09700SB1653ham001- 118 -LRB097 05721 ASK 56016 a


1  (1) Contracts between the State and its political 
2 subdivisions or other
governments, or between State 
3 governmental bodies except as specifically
provided in 
4 this Code.


5  (2) Grants, except for the filing requirements of 
6 Section 20-80.


7  (3) Purchase of care.


8  (4) Hiring of an individual as employee and not as an 
9 independent
contractor, whether pursuant to an employment 
10 code or policy or by contract
directly with that 
11 individual.


12  (5) Collective bargaining contracts.


13  (6) Purchase of real estate, except that notice of this 
14 type of contract with a value of more than $25,000 must be 
15 published in the Procurement Bulletin within 7 days after 
16 the deed is recorded in the county of jurisdiction. The 
17 notice shall identify the real estate purchased, the names 
18 of all parties to the contract, the value of the contract, 
19 and the effective date of the contract.


20  (7) Contracts necessary to prepare for anticipated 
21 litigation, enforcement
actions, or investigations, 
22 provided
that the chief legal counsel to the Governor shall 
23 give his or her prior
approval when the procuring agency is 
24 one subject to the jurisdiction of the
Governor, and 
25 provided that the chief legal counsel of any other 
26 procuring
entity
subject to this Code shall give his or her 
 
 
09700SB1653ham001- 119 -LRB097 05721 ASK 56016 a


1 prior approval when the procuring
entity is not one subject 
2 to the jurisdiction of the Governor.


3  (8) Contracts for
services to Northern Illinois 
4 University by a person, acting as
an independent 
5 contractor, who is qualified by education, experience, and

6 technical ability and is selected by negotiation for the 
7 purpose of providing
non-credit educational service 
8 activities or products by means of specialized
programs 
9 offered by the university.


10  (9) Procurement expenditures by the Illinois 
11 Conservation Foundation
when only private funds are used.

12  (10) Procurement expenditures by the Illinois Health 
13 Information Exchange Authority involving private funds 
14 from the Health Information Exchange Fund. "Private funds" 
15 means gifts, donations, and private grants. 
16 (c) This Code does not apply to the electric power 
17procurement process provided for under Section 1-75 of the 
18Illinois Power Agency Act and Section 16-111.5 of the Public 
19Utilities Act.
20 (d) Except for Section 20-160 and Article 50 of this Code, 
21and as expressly required by Section 9.1 of the Illinois 
22Lottery Law, the provisions of this Code do not apply to the 
23procurement process provided for under Section 9.1 of the 
24Illinois Lottery Law. 
25 (e) This Code does not apply to the process used by the 
26Capital Development Board to retain a person or entity to 
 
 
09700SB1653ham001- 120 -LRB097 05721 ASK 56016 a


1assist the Capital Development Board with its duties related to 
2the determination of costs of an initial clean coal facility, 
3as defined under Section 1-10 of the Illinois Power Agency Act, 
4as required under Section 1-76 of the Illinois Power Agency 
5Act, including calculating the range of capital costs or the 
6sequestration costs or monitoring the construction of initial 
7clean coal facility for the full duration of construction.
8 (f) This Code does not apply to the process used by the 
9Illinois Power Agency to retain a mediator to mediate sourcing 
10agreement disputes between electric utilities or alternative 
11retail electric suppliers and the initial clean coal facility, 
12as defined under Section 1-10 of the Illinois Power Agency Act, 
13as required under paragraph (4) of subsection (d) of Section 
141-75 of the Illinois Power Agency Act. This Code does not apply 
15to the process used by the Illinois Commerce Commission to 
16retain an expert to assist the Commission with its duties 
17related to the determination of the costs of an initial clean 
18coal facility, as defined under Section 1-10 of the Illinois 
19Power Agency Act, as required under Section 1-76 of the 
20Illinois Power Agency Act, including determining the initial 
21clean coal facility's operations and maintenance costs, or 
22compliance with capture and sequestration requirements.
23(Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07; 
2495-876, eff. 8-21-08; 96-840, eff. 12-23-09; 96-1331, eff. 
257-27-10.)




 
 
09700SB1653ham001- 121 -LRB097 05721 ASK 56016 a


1 (30 ILCS 500/20-10)


2 (Text of Section from P.A. 96-159 and 96-588)
3 Sec. 20-10. Competitive sealed bidding; reverse auction. 

4 (a) Conditions for use. All contracts shall be awarded by

5competitive sealed bidding
except as otherwise provided in 
6Section 20-5.

7 (b) Invitation for bids. An invitation for bids shall be

8issued and shall include a
purchase description and the 
9material contractual terms and
conditions applicable to the

10procurement.

11 (c) Public notice. Public notice of the invitation for bids 
12shall be
published in the Illinois Procurement Bulletin at 
13least 14 days before the date
set in the invitation for the 
14opening of bids.

15 (d) Bid opening. Bids shall be opened publicly in the

16presence of one or more witnesses
at the time and place 
17designated in the invitation for bids. The
name of each bidder, 
18the amount
of each bid, and other relevant information as may 
19be specified by
rule shall be
recorded. After the award of the 
20contract, the winning bid and the
record of each unsuccessful 
21bid shall be open to
public inspection.

22 (e) Bid acceptance and bid evaluation. Bids shall be

23unconditionally accepted without
alteration or correction, 
24except as authorized in this Code. Bids
shall be evaluated 
25based on the
requirements set forth in the invitation for bids, 
26which may
include criteria to determine
acceptability such as 
 
 
09700SB1653ham001- 122 -LRB097 05721 ASK 56016 a


1inspection, testing, quality, workmanship,
delivery, and 
2suitability for a
particular purpose. Those criteria that will 
3affect the bid price
and be considered in evaluation
for award, 
4such as discounts, transportation costs, and total or
life 
5cycle costs, shall be
objectively measurable. The invitation 
6for bids shall set forth
the evaluation criteria to be used.

7 (f) Correction or withdrawal of bids. Correction or

8withdrawal of inadvertently
erroneous bids before or after 
9award, or cancellation of awards of
contracts based on bid

10mistakes, shall be permitted in accordance with rules.
After 
11bid opening, no
changes in bid prices or other provisions of 
12bids prejudicial to
the interest of the State or fair

13competition shall be permitted. All decisions to permit the

14correction or withdrawal of bids
based on bid mistakes shall be 
15supported by written determination
made by a State purchasing 
16officer.

17 (g) Award. The contract shall be awarded with reasonable

18promptness by written notice
to the lowest responsible and 
19responsive bidder whose bid meets
the requirements and criteria

20set forth in the invitation for bids, except when a State 
21purchasing officer
determines it is not in the best interest of 
22the State and by written
explanation determines another bidder 
23shall receive the award. The explanation
shall appear in the 
24appropriate volume of the Illinois Procurement Bulletin.

25 (h) Multi-step sealed bidding. When it is considered

26impracticable to initially prepare
a purchase description to 
 
 
09700SB1653ham001- 123 -LRB097 05721 ASK 56016 a


1support an award based on price, an
invitation for bids may be 
2issued
requesting the submission of unpriced offers to be 
3followed by an
invitation for bids limited to
those bidders 
4whose offers have been qualified under the criteria
set forth 
5in the first solicitation.

6 (i) Alternative procedures. Notwithstanding any other 
7provision of this Act to the contrary, the Director of the 
8Illinois Power Agency may create alternative bidding 
9procedures to be used in procuring professional services under 
10subsection (a) of Section 1-75 and subsection (d) of Section 
111-78 1-75(a) of the Illinois Power Agency Act and Section 
1216-111.5(c) of the Public Utilities Act and to procure 
13renewable energy resources under Section 1-56 of the Illinois 
14Power Agency Act. These alternative procedures shall be set 
15forth together with the other criteria contained in the 
16invitation for bids, and shall appear in the appropriate volume 
17of the Illinois Procurement Bulletin.

18 (j) Reverse auction. Notwithstanding any other provision 
19of this Section and in accordance with rules adopted by the 
20Director of Central Management Services as chief procurement 
21officer, a State purchasing officer under that chief 
22procurement officer's jurisdiction may procure supplies or 
23services through a competitive electronic auction bidding 
24process after the purchasing officer explains in writing to the 
25chief procurement officer his or her determination that the use 
26of such a process will be in the best interest of the State. 
 
 
09700SB1653ham001- 124 -LRB097 05721 ASK 56016 a


1The chief procurement officer shall publish that determination 
2in his or her next volume of the Illinois Procurement Bulletin.
3 An invitation for bids shall be issued and shall include 
4(i) a procurement description, (ii) all contractual terms, 
5whenever practical, and (iii) conditions applicable to the 
6procurement, including a notice that bids will be received in 
7an electronic auction manner.
8 Public notice of the invitation for bids shall be given in 
9the same manner as provided in subsection (c).
10 Bids shall be accepted electronically at the time and in 
11the manner designated in the invitation for bids. During the 
12auction, a bidder's price shall be disclosed to other bidders. 
13Bidders shall have the opportunity to reduce their bid prices 
14during the auction. At the conclusion of the auction, the 
15record of the bid prices received and the name of each bidder 
16shall be open to public inspection.
17 After the auction period has terminated, withdrawal of bids 
18shall be permitted as provided in subsection (f).
19 The contract shall be awarded within 60 days after the 
20auction by written notice to the lowest responsible bidder, or 
21all bids shall be rejected except as otherwise provided in this 
22Code. Extensions of the date for the award may be made by 
23mutual written consent of the State purchasing officer and the 
24lowest responsible bidder.
25 This subsection does not apply to (i) procurements of 
26professional and artistic services, including but not limited 
 
 
09700SB1653ham001- 125 -LRB097 05721 ASK 56016 a


1to telecommunications services, communications services, 
2Internet services, and information services, and (ii) 
3contracts for construction projects. 
4(Source: P.A. 95-481, eff. 8-28-07; 96-159, eff. 8-10-09; 
596-588, eff. 8-18-09; revised 10-5-10.)


6 (Text of Section from P.A. 96-159 and 96-795)

7 Sec. 20-10. Competitive sealed bidding; reverse auction. 

8 (a) Conditions for use. All contracts shall be awarded by

9competitive sealed bidding
except as otherwise provided in 
10Section 20-5.

11 (b) Invitation for bids. An invitation for bids shall be

12issued and shall include a
purchase description and the 
13material contractual terms and
conditions applicable to the

14procurement.

15 (c) Public notice. Public notice of the invitation for bids 
16shall be
published in the Illinois Procurement Bulletin at 
17least 14 days before the date
set in the invitation for the 
18opening of bids.

19 (d) Bid opening. Bids shall be opened publicly in the

20presence of one or more witnesses
at the time and place 
21designated in the invitation for bids. The
name of each bidder, 
22the amount
of each bid, and other relevant information as may 
23be specified by
rule shall be
recorded. After the award of the 
24contract, the winning bid and the
record of each unsuccessful 
25bid shall be open to
public inspection.

 
 
09700SB1653ham001- 126 -LRB097 05721 ASK 56016 a


1 (e) Bid acceptance and bid evaluation. Bids shall be

2unconditionally accepted without
alteration or correction, 
3except as authorized in this Code. Bids
shall be evaluated 
4based on the
requirements set forth in the invitation for bids, 
5which may
include criteria to determine
acceptability such as 
6inspection, testing, quality, workmanship,
delivery, and 
7suitability for a
particular purpose. Those criteria that will 
8affect the bid price
and be considered in evaluation
for award, 
9such as discounts, transportation costs, and total or
life 
10cycle costs, shall be
objectively measurable. The invitation 
11for bids shall set forth
the evaluation criteria to be used.

12 (f) Correction or withdrawal of bids. Correction or

13withdrawal of inadvertently
erroneous bids before or after 
14award, or cancellation of awards of
contracts based on bid

15mistakes, shall be permitted in accordance with rules.
After 
16bid opening, no
changes in bid prices or other provisions of 
17bids prejudicial to
the interest of the State or fair

18competition shall be permitted. All decisions to permit the

19correction or withdrawal of bids
based on bid mistakes shall be 
20supported by written determination
made by a State purchasing 
21officer.

22 (g) Award. The contract shall be awarded with reasonable

23promptness by written notice
to the lowest responsible and 
24responsive bidder whose bid meets
the requirements and criteria

25set forth in the invitation for bids, except when a State 
26purchasing officer
determines it is not in the best interest of 
 
 
09700SB1653ham001- 127 -LRB097 05721 ASK 56016 a


1the State and by written
explanation determines another bidder 
2shall receive the award. The explanation
shall appear in the 
3appropriate volume of the Illinois Procurement Bulletin. The 
4written explanation must include:

5  (1) a description of the agency's needs; 
6  (2) a determination that the anticipated cost will be 
7 fair and reasonable;
8  (3) a listing of all responsible and responsive 
9 bidders; and
10  (4) the name of the bidder selected, pricing, and the 
11 reasons for selecting that bidder.
12 Each chief procurement officer may adopt guidelines to 
13implement the requirements of this subsection (g).
14 The written explanation shall be filed with the Legislative 
15Audit Commission and the Procurement Policy Board and be made 
16available for inspection by the public within 30 days after the 
17agency's decision to award the contract.
18 (h) Multi-step sealed bidding. When it is considered

19impracticable to initially prepare
a purchase description to 
20support an award based on price, an
invitation for bids may be 
21issued
requesting the submission of unpriced offers to be 
22followed by an
invitation for bids limited to
those bidders 
23whose offers have been qualified under the criteria
set forth 
24in the first solicitation.

25 (i) Alternative procedures. Notwithstanding any other 
26provision of this Act to the contrary, the Director of the 
 
 
09700SB1653ham001- 128 -LRB097 05721 ASK 56016 a


1Illinois Power Agency may create alternative bidding 
2procedures to be used in procuring professional services under 
3subsection (a) of Section 1-75 and subsection (d) of Section 
41-78 1-75(a) of the Illinois Power Agency Act and Section 
516-111.5(c) of the Public Utilities Act and to procure 
6renewable energy resources under Section 1-56 of the Illinois 
7Power Agency Act. These alternative procedures shall be set 
8forth together with the other criteria contained in the 
9invitation for bids, and shall appear in the appropriate volume 
10of the Illinois Procurement Bulletin.

11 (j) Reverse auction. Notwithstanding any other provision 
12of this Section and in accordance with rules adopted by the 
13chief procurement officer, that chief procurement officer may 
14procure supplies or services through a competitive electronic 
15auction bidding process after the chief procurement officer 
16determines that the use of such a process will be in the best 
17interest of the State. The chief procurement officer shall 
18publish that determination in his or her next volume of the 
19Illinois Procurement Bulletin.
20 An invitation for bids shall be issued and shall include 
21(i) a procurement description, (ii) all contractual terms, 
22whenever practical, and (iii) conditions applicable to the 
23procurement, including a notice that bids will be received in 
24an electronic auction manner.
25 Public notice of the invitation for bids shall be given in 
26the same manner as provided in subsection (c).
 
 
09700SB1653ham001- 129 -LRB097 05721 ASK 56016 a


1 Bids shall be accepted electronically at the time and in 
2the manner designated in the invitation for bids. During the 
3auction, a bidder's price shall be disclosed to other bidders. 
4Bidders shall have the opportunity to reduce their bid prices 
5during the auction. At the conclusion of the auction, the 
6record of the bid prices received and the name of each bidder 
7shall be open to public inspection.
8 After the auction period has terminated, withdrawal of bids 
9shall be permitted as provided in subsection (f).
10 The contract shall be awarded within 60 days after the 
11auction by written notice to the lowest responsible bidder, or 
12all bids shall be rejected except as otherwise provided in this 
13Code. Extensions of the date for the award may be made by 
14mutual written consent of the State purchasing officer and the 
15lowest responsible bidder.
16 This subsection does not apply to (i) procurements of 
17professional and artistic services, (ii) telecommunications 
18services, communication services, and information services,

19and (iii) contracts for construction projects. 
20(Source: P.A. 95-481, eff. 8-28-07; 96-159, eff. 8-10-09; 
2196-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the 
22effective date of changes made by P.A. 96-795); revised 
2310-5-10.)

24 Section 15. The Public Utilities Act is amended by changing 
25Sections 16-107.5, 16-108, 16-111.5, 16-115, 16-115D, and 
 
 
09700SB1653ham001- 130 -LRB097 05721 ASK 56016 a


116-116 as follows:

2 (220 ILCS 5/16-107.5)

3 Sec. 16-107.5. Net electricity metering.
4 (a) The Legislature finds and declares that a program to 
5provide net electricity
metering, as defined in this Section,

6for eligible customers can encourage private investment in 
7renewable energy
resources, stimulate
economic growth, enhance 
8the continued diversification of Illinois' energy
resource 
9mix, and protect
the Illinois environment.

10 (b) As used in this Section, (i) "eligible customer" means 
11a retail
customer that owns or operates a
solar, wind, or other 
12eligible renewable electrical generating facility with a rated 
13capacity of not more than
2,000 kilowatts that is
located on 
14the customer's premises or is interconnected to the 
15distribution grid of the customer's electricity provider or 
16alternative retail electric supplier and is intended primarily 
17to offset the customer's
own electrical requirements; (ii) 
18"electricity provider" means an electric utility or 
19alternative retail electric supplier; (iii) "eligible 
20renewable electrical generating facility" means a generator 
21powered by solar electric energy, wind, dedicated crops grown 
22for electricity generation, agricultural residues, untreated 
23and unadulterated wood waste, landscape trimmings, livestock 
24manure, anaerobic digestion of livestock or food processing 
25waste, fuel cells or microturbines powered by renewable fuels, 
 
 
09700SB1653ham001- 131 -LRB097 05721 ASK 56016 a


1or hydroelectric energy; and (iv) "net electricity metering" 
2(or "net metering") means the
measurement, during the
billing 
3period applicable to an eligible customer, of the net amount of

4electricity supplied by an
electricity provider to the 
5customer's premises or provided to the electricity provider by 
6the customer.

7 (c) A net metering facility shall be equipped with metering 
8equipment that can measure the flow of electricity in both 
9directions at the same rate. For eligible residential 
10customers, this shall typically be accomplished through use of 
11a single, bi-directional meter. If the eligible customer's 
12existing electric revenue meter does not meet this requirement, 
13the electricity provider shall arrange for the local electric 
14utility or a meter service provider to install and maintain a 
15new revenue meter at the electricity provider's expense. For 
16non-residential customers, the electricity provider may 
17arrange for the local electric utility or a meter service 
18provider to install and maintain metering equipment capable of 
19measuring the flow of electricity both into and out of the 
20customer's facility at the same rate and ratio, typically 
21through the use of a dual channel meter. For generators with a 
22nameplate rating of 40 kilowatts and below, the costs of 
23installing such equipment shall be paid for by the electricity 
24provider. For generators with a nameplate rating over 40 
25kilowatts and up to 2,000 kilowatts capacity, the costs of 
26installing such equipment shall be paid for by the customer. 
 
 
09700SB1653ham001- 132 -LRB097 05721 ASK 56016 a


1Any subsequent revenue meter change necessitated by any 
2eligible customer shall be paid for by the customer.

3 (d) An electricity provider shall
measure and charge or 
4credit for the net
electricity supplied to eligible customers 
5or provided by eligible customers in
the following manner:

6  (1) If the amount of electricity used by the customer 
7 during the billing
period exceeds the
amount of electricity 
8 produced by the customer, the electricity provider shall 
9 charge the customer for the net electricity supplied to and 
10 used
by the customer as provided in subsection (e) of this 
11 Section.

12  (2) If the amount of electricity produced by a customer 
13 during the billing period exceeds the amount of electricity 
14 used by the customer during that billing period, the 
15 electricity provider supplying that customer shall apply a 
16 1:1 kilowatt-hour credit to a subsequent bill for service 
17 to the customer for the net electricity supplied to the 
18 electricity provider. The electricity provider shall 
19 continue to carry over any excess kilowatt-hour credits 
20 earned and apply those credits to subsequent billing 
21 periods to offset any customer-generator consumption in 
22 those billing periods until all credits are used or until 
23 service is terminated or until the end of the annualized 
24 period.

25  (3) In At the end of the year or annualized over the 
26 period that service is supplied by means of net metering, 
 
 
09700SB1653ham001- 133 -LRB097 05721 ASK 56016 a


1 or in the event that the retail customer terminates service 
2 with the electricity provider prior to the end of the year 
3 or the annualized period, any remaining credits in the 
4 customer's account shall expire.

5 (e) An electricity provider shall provide to net metering 
6customers electric service at non-discriminatory rates that 
7are identical, with respect to rate structure, retail rate 
8components, and any monthly charges, to the rates that the 
9customer would be charged if not a net metering customer. An 
10electricity provider shall not charge net metering customers 
11any fee or charge or require additional equipment, insurance, 
12or any other requirements not specifically authorized by 
13interconnection standards authorized by the Commission, unless 
14the fee, charge, or other requirement would apply to other 
15similarly situated customers who are not net metering 
16customers. The customer will remain responsible for all taxes, 
17fees, and utility delivery charges that would otherwise be 
18applicable to the net amount of electricity used by the 
19customer. Subsections (c) through (e) of this Section shall not 
20be construed to prevent an arms-length agreement between an 
21electricity provider and an eligible customer that sets forth 
22different prices, terms, and conditions for the provision of 
23net metering service, including, but not limited to, the 
24provision of the appropriate metering equipment for 
25non-residential customers.

26 (f) Notwithstanding the requirements of subsections (c) 
 
 
09700SB1653ham001- 134 -LRB097 05721 ASK 56016 a


1through (e) of this Section, an electricity provider must 
2require dual-channel metering for non-residential customers 
3operating eligible renewable electrical generating facilities 
4with a nameplate rating over 40 kilowatts and up to 2,000 
5kilowatts. In such cases, electricity charges and credits shall 
6be determined as follows:

7  (1) The electricity provider shall assess and the 
8 customer remains responsible for all taxes, fees, and 
9 utility delivery charges that would otherwise be 
10 applicable to the gross amount of kilowatt-hours supplied 
11 to the eligible customer by the electricity provider.
12  (2) Each month that service is supplied by means of 
13 dual-channel metering, the electricity provider shall 
14 compensate the eligible customer for any excess 
15 kilowatt-hour credits at the electricity provider's 
16 avoided cost of electricity supply over the monthly period 
17 or as otherwise specified by the terms of a power-purchase 
18 agreement negotiated between the customer and electricity 
19 provider.
20  (3) For all eligible net metering customers taking 
21 service from an electricity provider under contracts or 
22 tariffs employing time of use rates, any monthly 
23 consumption of electricity shall be calculated according 
24 to the terms of the contract or tariff to which the same 
25 customer would be assigned to or be eligible for if the 
26 customer was not a net metering customer. When those same 
 
 
09700SB1653ham001- 135 -LRB097 05721 ASK 56016 a


1 customer-generators are net generators during any discrete 
2 time of use period, the net kilowatt-hours produced shall 
3 be valued at the same price per kilowatt-hour as the 
4 electric service provider would charge for retail 
5 kilowatt-hour sales during that same time of use period.

6 (g) For purposes of federal and State laws providing 
7renewable energy credits or greenhouse gas credits, the 
8eligible customer shall be treated as owning and having title 
9to the renewable energy attributes, renewable energy credits, 
10and greenhouse gas emission credits related to any electricity 
11produced by the qualified generating unit. The electricity 
12provider may not condition participation in a net metering 
13program on the signing over of a customer's renewable energy 
14credits; provided, however, this subsection (g) shall not be 
15construed to prevent an arms-length agreement between an 
16electricity provider and an eligible customer that sets forth 
17the ownership or title of the credits.

18 (h) Within 120 days after the effective date of this

19amendatory Act of the 95th General Assembly, the Commission 
20shall establish standards for net metering and, if the 
21Commission has not already acted on its own initiative, 
22standards for the interconnection of eligible renewable 
23generating equipment to the utility system. The 
24interconnection standards shall address any procedural 
25barriers, delays, and administrative costs associated with the 
26interconnection of customer-generation while ensuring the 
 
 
09700SB1653ham001- 136 -LRB097 05721 ASK 56016 a


1safety and reliability of the units and the electric utility 
2system. The Commission shall consider the Institute of 
3Electrical and Electronics Engineers (IEEE) Standard 1547 and 
4the issues of (i) reasonable and fair fees and costs, (ii) 
5clear timelines for major milestones in the interconnection 
6process, (iii) nondiscriminatory terms of agreement, and (iv) 
7any best practices for interconnection of distributed 
8generation.

9 (i) All electricity providers shall begin to offer net 
10metering
no later than April 1,
2008.

11 (j) An electricity provider shall provide net metering to 
12eligible
customers until the load of its net metering customers 
13equals 5% 1% of
the total peak demand supplied by
that 
14electricity provider during the
previous year. Electricity 
15providers are authorized to offer net metering beyond
the 5% 1% 
16level if they so choose. The number of new eligible customers 
17with generators that have a nameplate rating of 40 kilowatts 
18and below will be limited to 200 total new billing accounts for 
19the utilities (Ameren Companies, ComEd, and MidAmerican) for 
20the period of April 1, 2008 through March 31, 2009.


21 (k) Each electricity provider shall maintain records and 
22report annually to the Commission the total number of net 
23metering customers served by the provider, as well as the type, 
24capacity, and energy sources of the generating systems used by 
25the net metering customers. Nothing in this Section shall limit 
26the ability of an electricity provider to request the redaction 
 
 
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1of information deemed by the Commission to be confidential 
2business information. Each electricity provider shall notify 
3the Commission when the total generating capacity of its net 
4metering customers is equal to or in excess of the 1% cap 
5specified in subsection (j) of this Section.
6 (l) Notwithstanding the definition of "eligible customer" 
7in item (i) of subsection (b) of this Section, each electricity 
8provider shall consider whether to allow meter aggregation for 
9the purposes of net metering on:

10  (1) properties owned or leased by multiple customers 
11 that contribute to the operation of an eligible renewable 
12 electrical generating facility, such as a community-owned 
13 wind project, a community-owned biomass project, a 
14 community-owned solar project, or a community methane 
15 digester processing livestock waste from multiple sources; 
16 and

17  (2) individual units, apartments, or properties owned 
18 or leased by multiple customers and collectively served by 
19 a common eligible renewable electrical generating 
20 facility, such as an apartment building served by 
21 photovoltaic panels on the roof; and .

22  (3) multiple meters that are located on an eligible 
23 customer's contiguous property and are used to measure only 
24 electricity used for the eligible customer's requirements. 
25 For the purposes of this subsection (l), "meter 
26aggregation" means the combination of reading and billing on a 
 
 
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1pro rata basis for the types of eligible customers described in 
2this Section such as to allocate benefits of participation onto 
3the customers' monthly electric bills. Meter aggregation shall 
4be allowed whether the eligible renewable energy generating 
5device is located on the premises of the eligible customer or 
6is interconnected to the distribution grid of the eligible 
7customer's electricity provider or alternative retail electric 
8supplier. Such meter aggregation shall be subject to the terms 
9and conditions approved by the Commission in a proceeding 
10establishing the rules applicable to meter aggregation under 
11this subsection (l), which shall commence no less than 180 days 
12after the effective date of this amendatory Act of the 97th 
13General Assembly and be completed within 365 days after the 
14effective date of this amendatory Act of the 97th General 
15Assembly.

16 (m) Nothing in this Section shall affect the right of an 
17electricity provider to continue to provide, or the right of a 
18retail customer to continue to receive service pursuant to a 
19contract for electric service between the electricity provider 
20and the retail customer in accordance with the prices, terms, 
21and conditions provided for in that contract. Either the 
22electricity provider or the customer may require compliance 
23with the prices, terms, and conditions of the contract.


24(Source: P.A. 95-420, eff. 8-24-07.)




25 (220 ILCS 5/16-108)



 
 
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1 Sec. 16-108. 
Recovery of costs associated with the

2provision of delivery services.

3 (a) An electric utility shall file a delivery services

4tariff with the Commission at least 210 days prior to the date

5that it is required to begin offering such services pursuant
to 
6this Act. An electric utility shall provide the components
of 
7delivery services that are subject to the jurisdiction of
the 
8Federal Energy Regulatory Commission at the same prices,
terms 
9and conditions set forth in its applicable tariff as
approved 
10or allowed into effect by that Commission. The
Commission shall 
11otherwise have the authority pursuant to Article IX to review,

12approve, and modify the prices, terms and conditions of those

13components of delivery services not subject to the
jurisdiction 
14of the Federal Energy Regulatory Commission,
including the 
15authority to determine the extent to which such
delivery 
16services should be offered on an unbundled basis. In making any 
17such
determination the Commission shall consider, at a minimum, 
18the effect of
additional unbundling on (i) the objective of 
19just and reasonable rates, (ii)
electric utility employees, and 
20(iii) the development of competitive markets
for electric 
21energy services in Illinois.

22 (b) The Commission shall enter an order approving, or

23approving as modified, the delivery services tariff no later

24than 30 days prior to the date on which the electric utility

25must commence offering such services. The Commission may

26subsequently modify such tariff pursuant to this Act.

 
 
09700SB1653ham001- 140 -LRB097 05721 ASK 56016 a


1 (c) The electric utility's
tariffs shall define the classes 
2of its customers for purposes
of delivery services charges. 
3Delivery services shall be priced and made
available to all 
4retail customers electing delivery services in each such class

5on a nondiscriminatory basis regardless of whether the retail 
6customer chooses
the electric utility, an affiliate of the 
7electric utility, or another entity
as its supplier of electric 
8power and energy. Charges for delivery services
shall be cost 
9based,
and shall allow the electric utility to recover the 
10costs of
providing delivery services through its charges to its

11delivery service customers that use the facilities and
services 
12associated with such costs.
Such costs shall include the
costs 
13of owning, operating and maintaining transmission and

14distribution facilities. The Commission shall also be

15authorized to consider whether, and if so to what extent, the

16following costs are appropriately included in the electric

17utility's delivery services rates: (i) the costs of that

18portion of generation facilities used for the production and

19absorption of reactive power in order that retail customers

20located in the electric utility's service area can receive

21electric power and energy from suppliers other than the

22electric utility, and (ii) the costs associated with the use

23and redispatch of generation facilities to mitigate

24constraints on the transmission or distribution system in
order 
25that retail customers located in the electric utility's
service 
26area can receive electric power and energy from
suppliers other 
 
 
09700SB1653ham001- 141 -LRB097 05721 ASK 56016 a


1than the electric utility. Nothing in this
subsection shall be 
2construed as directing the Commission to
allocate any of the 
3costs described in (i) or (ii) that are
found to be 
4appropriately included in the electric utility's
delivery 
5services rates to any particular customer group or
geographic 
6area in setting delivery services rates.

7 (d) The Commission shall establish charges, terms and

8conditions for delivery services that are just and reasonable

9and shall take into account customer impacts when establishing

10such charges. In establishing charges, terms and conditions
for 
11delivery services, the Commission shall take into account

12voltage level differences. A retail customer shall have the

13option to request to purchase electric service at any delivery

14service voltage reasonably and technically feasible from the

15electric facilities serving that customer's premises provided

16that there are no significant adverse impacts upon system

17reliability or system efficiency. A retail customer shall
also 
18have the option to request to purchase electric service
at any 
19point of delivery that is reasonably and technically
feasible 
20provided that there are no significant adverse
impacts on 
21system reliability or efficiency. Such requests
shall not be 
22unreasonably denied.

23 (e) Electric utilities shall recover the costs of

24installing, operating or maintaining facilities for the

25particular benefit of one or more delivery services customers,

26including without limitation any costs incurred in complying

 
 
09700SB1653ham001- 142 -LRB097 05721 ASK 56016 a


1with a customer's request to be served at a different voltage

2level, directly from the retail customer or customers for
whose 
3benefit the costs were incurred, to the extent such
costs are 
4not recovered through the charges referred to in
subsections 
5(c) and (d) of this Section.

6 (f) An electric utility shall be entitled but not
required 
7to implement transition charges in conjunction with
the 
8offering of delivery services pursuant to Section 16-104.
If an 
9electric utility implements transition charges, it shall 
10implement such
charges for all delivery services customers and 
11for all customers described in
subsection (h), but shall not 
12implement transition charges for power and
energy that a retail 
13customer takes from cogeneration or self-generation
facilities 
14located on that retail customer's premises, if such facilities 
15meet
the following criteria:


16  (i) the cogeneration or self-generation facilities 
17 serve a single retail
customer and are located on that 
18 retail customer's premises (for purposes of
this 
19 subparagraph and subparagraph (ii), an industrial or 
20 manufacturing retail
customer and a third party contractor 
21 that is served by such industrial or
manufacturing customer 
22 through such retail customer's own electrical
distribution 
23 facilities under the circumstances described in subsection 
24 (vi) of
the definition of "alternative retail electric 
25 supplier" set forth in Section
16-102, shall be considered 
26 a single retail customer);


 
 
09700SB1653ham001- 143 -LRB097 05721 ASK 56016 a


1  (ii) the cogeneration or self-generation facilities 
2 either (A) are sized
pursuant to generally accepted 
3 engineering standards for the retail customer's
electrical 
4 load at that premises (taking into account standby or other

5 reliability considerations related to that retail 
6 customer's operations at that
site) or (B) if the facility 
7 is a cogeneration facility located on the retail
customer's 
8 premises, the retail customer is the thermal host for that 
9 facility
and the facility has been designed to meet that 
10 retail customer's thermal
energy requirements resulting in 
11 electrical output beyond that retail
customer's electrical 
12 demand at that premises, comply with the operating and

13 efficiency standards applicable to "qualifying facilities" 
14 specified in title
18 Code of Federal Regulations Section 
15 292.205 as in effect on the effective
date of this 
16 amendatory Act of 1999;


17  (iii) the retail customer on whose premises the 
18 facilities are located
either has an exclusive right to 
19 receive, and corresponding obligation to pay
for, all of 
20 the electrical capacity of the facility, or in the case of 
21 a
cogeneration facility that has been designed to meet the 
22 retail customer's
thermal energy requirements at that 
23 premises, an identified amount of the
electrical capacity 
24 of the facility, over a minimum 5-year period; and


25  (iv) if the cogeneration facility is sized for the

26 retail customer's thermal load at that premises but exceeds 
 
 
09700SB1653ham001- 144 -LRB097 05721 ASK 56016 a


1 the electrical
load, any sales of excess power or energy 
2 are made only at wholesale, are
subject to the jurisdiction 
3 of the Federal Energy Regulatory Commission, and
are not 
4 for the purpose of circumventing the provisions of this 
5 subsection (f).

6If a generation facility located at a retail customer's 
7premises does not meet
the above criteria, an electric utility 
8implementing
transition charges shall implement a transition 
9charge until December 31, 2006
for any power and energy taken 
10by such retail customer from such facility as if
such power and 
11energy had been delivered by the electric utility. Provided,

12however, that an industrial retail customer that is taking 
13power from a
generation facility that does not meet the above 
14criteria but that is located
on such customer's premises will 
15not be subject to a transition charge for the
power and energy 
16taken by such retail customer from such generation facility if

17the facility does not serve any other retail customer and 
18either was installed
on behalf of the customer and for its own 
19use prior to January 1, 1997, or is
both predominantly fueled 
20by byproducts of such customer's manufacturing
process at such 
21premises and sells or offers an average of 300 megawatts or

22more of electricity produced from such generation facility into 
23the wholesale
market.
Such charges
shall be calculated as 
24provided in Section
16-102, and shall be collected
on each 
25kilowatt-hour delivered under a
delivery services tariff to a 
26retail customer from the date
the customer first takes delivery 
 
 
09700SB1653ham001- 145 -LRB097 05721 ASK 56016 a


1services until December 31,
2006 except as provided in 
2subsection (h) of this Section.
Provided, however, that an 
3electric utility, other than an electric utility
providing 
4service to at least 1,000,000 customers in this State on 
5January 1,
1999,
shall be entitled to petition for
entry of an 
6order by the Commission authorizing the electric utility to

7implement transition charges for an additional period ending no 
8later than
December 31, 2008. The electric utility shall file 
9its petition with
supporting evidence no earlier than 16 
10months, and no later than 12 months,
prior to December 31, 
112006. The Commission shall hold a hearing on the
electric 
12utility's petition and shall enter its order no later than 8 
13months
after the petition is filed. The Commission shall 
14determine whether and to
what extent the electric utility shall 
15be authorized to implement transition
charges for an additional 
16period. The Commission may authorize the electric
utility to 
17implement transition charges for some or all of the additional

18period, and shall determine the mitigation factors to be used 
19in implementing
such transition charges; provided, that the 
20Commission shall not authorize
mitigation factors less than 
21110% of those in effect during the 12 months ended
December 31, 
222006. In making its determination, the Commission shall 
23consider
the following factors: the necessity to implement 
24transition charges for an
additional period in order to 
25maintain the financial integrity of the electric
utility; the 
26prudence of the electric utility's actions in reducing its 
 
 
09700SB1653ham001- 146 -LRB097 05721 ASK 56016 a


1costs
since the effective date of this amendatory Act of 1997; 
2the ability of the
electric utility to provide safe, adequate 
3and reliable service to retail
customers in its service area; 
4and the impact on competition of allowing the
electric utility 
5to implement transition charges for the additional period.

6 (g) The electric utility shall file tariffs that
establish 
7the transition charges to be paid by each class of
customers to 
8the electric utility in conjunction with the
provision of 
9delivery services. The electric utility's tariffs
shall define 
10the classes of its customers for purposes of
calculating 
11transition charges. The electric utility's tariffs
shall 
12provide for the calculation of transition charges on a

13customer-specific basis for any retail customer whose average

14monthly maximum electrical demand on the electric utility's

15system during the 6 months with the customer's highest monthly

16maximum electrical demands equals or exceeds 3.0 megawatts for

17electric utilities having more than 1,000,000 customers, and

18for other electric utilities for any customer that has an

19average monthly maximum electrical demand on the electric

20utility's system of one megawatt or more, and (A) for which

21there exists data on the customer's usage during the 3 years

22preceding the date that the customer became eligible to take

23delivery services, or (B) for which there does not exist data

24on the customer's usage during the 3 years preceding the date

25that the customer became eligible to take delivery services,
if 
26in the electric utility's reasonable judgment there exists

 
 
09700SB1653ham001- 147 -LRB097 05721 ASK 56016 a


1comparable usage information or a sufficient basis to develop

2such information, and further provided that the electric

3utility can require customers for which an individual

4calculation is made to sign contracts that set forth the

5transition charges to be paid by the customer to the electric

6utility pursuant to the tariff.

7 (h) An electric utility shall also be entitled to file

8tariffs that allow it to collect transition charges from
retail 
9customers in the electric utility's service area that
do not 
10take delivery services but that take electric power or
energy 
11from an alternative retail electric supplier or from an

12electric utility other than the electric utility in whose

13service area the customer is located. Such charges shall be

14calculated, in accordance with the definition of transition

15charges in Section 16-102, for the period of time that the

16customer would be obligated to pay transition charges if it

17were taking delivery services, except that no deduction for

18delivery services revenues shall be made in such calculation,

19and usage data from the customer's class shall be used where

20historical usage data is not available for the individual

21customer. The customer shall be obligated to pay such charges

22on a lump sum basis on or before the date on which the
customer 
23commences to take service from the alternative retail
electric 
24supplier or other electric utility, provided, that
the electric 
25utility in whose service area the customer is
located shall 
26offer the customer the option of signing a
contract pursuant to 
 
 
09700SB1653ham001- 148 -LRB097 05721 ASK 56016 a


1which the customer pays such charges
ratably over the period in 
2which the charges would otherwise
have applied.

3 (i) An electric utility shall be entitled to add to the

4bills of delivery services customers charges pursuant to

5Sections 9-221, 9-222 (except as provided in Section 9-222.1), 
6and Section
16-114 of this Act, Section 5-5 of the Electricity 
7Infrastructure Maintenance
Fee Law, Section 6-5 of the 
8Renewable Energy, Energy Efficiency, and Coal
Resources 
9Development Law of 1997, and Section 13 of the Energy 
10Assistance Act.

11 (j) If a retail customer that obtains electric power and

12energy from cogeneration or self-generation facilities

13installed for its own use on or before January 1, 1997,

14subsequently takes service from an alternative retail electric

15supplier or an electric utility other than the electric
utility 
16in whose service area the customer is located for any
portion 
17of the customer's electric power and energy
requirements 
18formerly obtained from those facilities (including that amount

19purchased from the utility in lieu of such generation and not 
20as standby power
purchases, under a cogeneration displacement 
21tariff in effect as of the
effective date of this amendatory 
22Act of 1997), the
transition charges otherwise applicable 
23pursuant to subsections (f), (g), or
(h) of this Section shall 
24not be applicable
in any year to that portion of the customer's 
25electric power
and energy requirements formerly obtained from 
26those
facilities, provided, that for purposes of this 
 
 
09700SB1653ham001- 149 -LRB097 05721 ASK 56016 a


1subsection
(j), such portion shall not exceed the average 
2number of
kilowatt-hours per year obtained from the 
3cogeneration or
self-generation facilities during the 3 years 
4prior to the
date on which the customer became eligible for 
5delivery
services, except as provided in subsection (f) of 
6Section
16-110.
7 (k) Beginning June 1, 2012, the electric utility shall be 
8entitled to recover through its tariffed charges for delivery 
9services (1) the costs of any renewable energy credits 
10purchased to meet the renewable energy resource standards of 
11subsection (c) of Section 1-75 of the Illinois Power Agency 
12Act, pursuant to the electric utility's procurement plan as 
13approved in accordance with Section 16-111.5 of this Act, and 
14(2) any excluded renewable energy resources contract costs as 
15defined in Section 1-10 of the Illinois Power Agency Act. The 
16Commission shall determine a just and reasonable allocation of 
17such costs to the various classes of customers taking delivery 
18services from the electric utility, taking into account the 
19provisions of paragraphs (2) and (6) of subsection (c) of 
20Section 1-75 of the Illinois Power Agency Act and, with respect 
21to excluded renewable energy resources contract costs, the 
22extent to which the electric utility's eligible retail 
23customers have become delivery services non-eligible retail 
24customers subsequent to the year that the contracts giving rise 
25to the excluded renewable energy resources costs were entered 
26into. Provided, that in no event shall the Commission allocate 
 
 
09700SB1653ham001- 150 -LRB097 05721 ASK 56016 a


1the costs of renewable energy credits and excluded renewable 
2energy resources contract costs in a manner that causes the 
3rate limitations specified in paragraph (2) of subsection (c) 
4of Section 1-75 of the Illinois Power Agency Act to be exceeded 
5for any class of customers.
6 For purposes of recovery through the electric utility's 
7tariffed charges for delivery services, the cost of the 
8renewable energy credits included in purchases of bundled 
9renewable energy resources, as defined in Section 1-10 of the 
10Illinois Power Agency Act, to meet the renewable energy 
11resource standards applicable to the load of the electric 
12utility's eligible retail customers, as defined in subsection 
13(a) of Section 16-111.5 of this Act, shall be the allocated 
14renewable energy credit prices approved by the Commission in 
15accordance with subsection (f) of Section 16-111.5 of this Act.
16 The electric utility shall be entitled to recover the cost 
17of such renewable energy credits and excluded renewable energy 
18resources contract costs through an automatic adjustment 
19charge provision in the electric utility's delivery services 
20tariffs that allows the electric utility to adjust its tariffed 
21charges on an quarterly basis for changes in its costs incurred 
22to purchase renewable energy credits and its excluded renewable 
23energy resources contract costs, if any, without the need to 
24file a general delivery services rate case. The electric 
25utility's collections pursuant to such an automatic adjustment 
26charge tariff shall be subject to annual review, 
 
 
09700SB1653ham001- 151 -LRB097 05721 ASK 56016 a


1reconciliation, and true-up against actual costs by the 
2Commission pursuant to a procedure that shall be specified in 
3the electric utility's tariff. The procedure shall provide that 
4any difference between the electric utility's collections 
5pursuant to the automatic adjustment charge for an annual 
6period and the electric utility's actual costs of renewable 
7energy credits and actual excluded renewable energy resources 
8contract costs for the annual period shall be refunded to or 
9collected from, as applicable, the electric utility's delivery 
10services customers in subsequent periods. 

11(Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)


12 (220 ILCS 5/16-111.5)
13 Sec. 16-111.5. Provisions relating to procurement.
14 (a) An electric utility that on December 31, 2005 served at 
15least 100,000 customers in Illinois shall procure power, energy 
16efficiency products, and energy for its eligible retail 
17customers in accordance with the applicable provisions set 
18forth in Section 1-75 of the Illinois Power Agency Act and this 
19Section and, for years beginning on and after June 1, 2012, 
20shall procure renewable energy credits with respect to the 
21kilowatthour usage of delivery services non-eligible retail 
22customers in the electric utility's service area in accordance 
23with the applicable provisions set forth in Section 1-75 of the 
24Illinois Power Agency Act and this Section. "Eligible retail 
25customers" for the purposes of this Section means those retail 
 
 
09700SB1653ham001- 152 -LRB097 05721 ASK 56016 a


1customers that purchase power and energy from the electric 
2utility under fixed-price bundled service tariffs, other than 
3those retail customers whose service is declared or deemed 
4competitive under Section 16-113 and those other customer 
5groups specified in this Section, including self-generating 
6customers, customers electing hourly pricing, or those 
7customers who are otherwise ineligible for fixed-price bundled 
8tariff service. "Delivery services non-eligible retail 
9customers" for the purposes of this Section has the meaning set 
10forth in Section 1-10 of the Illinois Power Agency Act. Those 
11customers that are excluded from the definition of "eligible 
12retail customers" shall not be included in the procurement plan 
13electric supply service load requirements, and the utility 
14shall procure any supply requirements, including capacity, 
15ancillary services, energy efficiency products, and hourly 
16priced energy, in the applicable markets as needed to serve 
17those customers, provided that the utility may include in its 
18procurement plan load requirements for the load that is 
19associated with those retail customers whose service has been 
20declared or deemed competitive pursuant to Section 16-113 of 
21this Act to the extent that those customers are purchasing 
22power and energy during one of the transition periods 
23identified in subsection (b) of Section 16-113 of this Act.
24 (b) A procurement plan shall be prepared for each electric 
25utility consistent with the applicable requirements of the 
26Illinois Power Agency Act and this Section. For purposes of 
 
 
09700SB1653ham001- 153 -LRB097 05721 ASK 56016 a


1this Section, Illinois electric utilities that are affiliated 
2by virtue of a common parent company are considered to be a 
3single electric utility. Each procurement plan shall analyze 
4the projected balance of supply and demand for eligible retail 
5customers over a 5-year period with the first planning year 
6beginning on June 1 of the year following the year in which the 
7plan is filed. The plan shall specifically identify the 
8wholesale products to be procured following plan approval, and 
9shall follow all the requirements set forth in the Public 
10Utilities Act and all applicable State and federal laws, 
11statutes, rules, or regulations, as well as Commission orders. 
12Nothing in this Section precludes consideration of contracts 
13longer than 5 years and related forecast data. Unless specified 
14otherwise in this Section, in the procurement plan or in the 
15implementing tariff, any procurement occurring in accordance 
16with this plan shall be competitively bid through a request for 
17proposals process. Approval and implementation of the 
18procurement plan shall be subject to review and approval by the 
19Commission according to the provisions set forth in this 
20Section. A procurement plan shall include each of the following 
21components:
22  (1) Hourly load analysis. This analysis shall include:
23   (i) multi-year historical analysis of hourly 
24 loads;
25   (ii) switching trends and competitive retail 
26 market analysis;
 
 
09700SB1653ham001- 154 -LRB097 05721 ASK 56016 a


1   (iii) known or projected changes to future loads; 
2 and
3   (iv) growth forecasts by customer class.
4  (2) Analysis of the impact of any demand side and 
5 renewable energy initiatives. This analysis shall include:
6   (i) the impact of demand response programs, both 
7 current and projected;
8   (ii) supply side needs that are projected to be 
9 offset by purchases of renewable energy resources, if 
10 any; and
11   (iii) the impact of energy efficiency programs, 
12 both current and projected.
13  (3) A plan for meeting the expected load requirements 
14 that will not be met through preexisting contracts. This 
15 plan shall include:
16   (i) definitions of the different retail customer 
17 classes for which supply is being purchased;
18   (ii) the proposed mix of demand-response products 
19 for which contracts will be executed during the next 
20 year. The cost-effective demand-response measures 
21 shall be procured whenever the cost is lower than 
22 procuring comparable capacity products, provided that 
23 such products shall: 
24    (A) be procured by a demand-response provider 
25 from eligible retail customers;
26    (B) at least satisfy the demand-response 
 
 
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1 requirements of the regional transmission 
2 organization market in which the utility's service 
3 territory is located, including, but not limited 
4 to, any applicable capacity or dispatch 
5 requirements;
6    (C) provide for customers' participation in 
7 the stream of benefits produced by the 
8 demand-response products;
9    (D) provide for reimbursement by the 
10 demand-response provider of the utility for any 
11 costs incurred as a result of the failure of the 
12 supplier of such products to perform its 
13 obligations thereunder; and
14    (E) meet the same credit requirements as apply 
15 to suppliers of capacity, in the applicable 
16 regional transmission organization market; 
17   (iii) the proposed energy efficiency products for 
18 which contracts will be executed during the next year. 
19 The cost effective energy efficiency measures shall be 
20 procured whenever the cost is lower than the combined 
21 avoided costs of energy, capacity, transmission, and 
22 the renewable portfolio standard for a comparable 
23 volume of energy provided that the energy efficiency 
24 products shall:
25    (A) be procured by a energy efficiency 
26 provider from eligible retail customers;
 
 
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1    (B) at least satisfy evaluation, measurement, 
2 and verification standards established pursuant to 
3 Section 8-103 of this Act;
4    (C) provide for reimbursement by the energy 
5 efficiency provider of the utility for any costs 
6 incurred as a result of the failure of the supplier 
7 of such products to perform its obligations 
8 thereunder; and
9    (D) meet the same credit requirements as apply 
10 to suppliers of capacity, in the applicable 
11 regional transmission organization market; 
12   (iv) (iii) monthly forecasted system supply 
13 requirements, including expected minimum, maximum, and 
14 average values for the planning period;
15   (v) (iv) the proposed mix and selection of standard 
16 wholesale products for which contracts will be 
17 executed during the next year, separately or in 
18 combination, to meet that portion of its load 
19 requirements not met through pre-existing contracts, 
20 including but not limited to monthly 5 x 16 peak period 
21 block energy, monthly off-peak wrap energy, monthly 7 x 
22 24 energy, annual 5 x 16 energy, annual off-peak wrap 
23 energy, annual 7 x 24 energy, monthly capacity, annual 
24 capacity, peak load capacity obligations, capacity 
25 purchase plan, and ancillary services;
26   (vi) (v) proposed term structures for each 
 
 
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1 wholesale product type included in the proposed 
2 procurement plan portfolio of products; and
3   (vii) (vi) an assessment of the price risk, load 
4 uncertainty, and other factors that are associated 
5 with the proposed procurement plan; this assessment, 
6 to the extent possible, shall include an analysis of 
7 the following factors: contract terms, time frames for 
8 securing products or services, fuel costs, weather 
9 patterns, transmission costs, market conditions, and 
10 the governmental regulatory environment; the proposed 
11 procurement plan shall also identify alternatives for 
12 those portfolio measures that are identified as having 
13 significant price risk.
14  (4) Proposed procedures for balancing loads. The 
15 procurement plan shall include, for load requirements 
16 included in the procurement plan, the process for (i) 
17 hourly balancing of supply and demand and (ii) the criteria 
18 for portfolio re-balancing in the event of significant 
19 shifts in load.
20 (c) The procurement process set forth in Section 1-75 of 
21the Illinois Power Agency Act and subsection (e) of this 
22Section shall be administered by a procurement administrator 
23and monitored by a procurement monitor.
24  (1) The procurement administrator shall:
25   (i) design the final procurement process in 
26 accordance with Section 1-75 of the Illinois Power 
 
 
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1 Agency Act and subsection (e) of this Section following 
2 Commission approval of the procurement plan;
3   (ii) develop benchmarks in accordance with 
4 subsection (e)(3) to be used to evaluate bids; these 
5 benchmarks shall be submitted to the Commission for 
6 review and approval on a confidential basis prior to 
7 the procurement event;
8   (iii) serve as the interface between the electric 
9 utility and suppliers;
10   (iv) manage the bidder pre-qualification and 
11 registration process;
12   (v) obtain the electric utilities' agreement to 
13 the final form of all supply contracts and credit 
14 collateral agreements;
15   (vi) administer the request for proposals process;
16   (vii) have the discretion to negotiate to 
17 determine whether bidders are willing to lower the 
18 price of bids that meet the benchmarks approved by the 
19 Commission; any post-bid negotiations with bidders 
20 shall be limited to price only and shall be completed 
21 within 24 hours after opening the sealed bids and shall 
22 be conducted in a fair and unbiased manner; in 
23 conducting the negotiations, there shall be no 
24 disclosure of any information derived from proposals 
25 submitted by competing bidders; if information is 
26 disclosed to any bidder, it shall be provided to all 
 
 
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1 competing bidders;
2   (viii) maintain confidentiality of supplier and 
3 bidding information in a manner consistent with all 
4 applicable laws, rules, regulations, and tariffs;
5   (ix) submit a confidential report to the 
6 Commission recommending acceptance or rejection of 
7 bids;
8   (x) notify the utility of contract counterparties 
9 and contract specifics; and
10   (xi) administer related contingency procurement 
11 events.
12  (2) The procurement monitor, who shall be retained by 
13 the Commission, shall:
14   (i) monitor interactions among the procurement 
15 administrator, suppliers, and utility;
16   (ii) monitor and report to the Commission on the 
17 progress of the procurement process;
18   (iii) provide an independent confidential report 
19 to the Commission regarding the results of the 
20 procurement event;
21   (iv) assess compliance with the procurement plans 
22 approved by the Commission for each utility that on 
23 December 31, 2005 provided electric service to a least 
24 100,000 customers in Illinois;
25   (v) preserve the confidentiality of supplier and 
26 bidding information in a manner consistent with all 
 
 
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1 applicable laws, rules, regulations, and tariffs;
2   (vi) provide expert advice to the Commission and 
3 consult with the procurement administrator regarding 
4 issues related to procurement process design, rules, 
5 protocols, and policy-related matters; and
6   (vii) consult with the procurement administrator 
7 regarding the development and use of benchmark 
8 criteria, standard form contracts, credit policies, 
9 and bid documents.
10 (d) Except as provided in subsection (j), the planning 
11process shall be conducted as follows:
12  (1) Beginning in 2008, each Illinois utility procuring 
13 power pursuant to this Section shall annually provide a 
14 range of load forecasts to the Illinois Power Agency by 
15 July 15 of each year, or such other date as may be required 
16 by the Commission or Agency. The load forecasts shall cover 
17 the 5-year procurement planning period for the next 
18 procurement plan and shall include hourly data 
19 representing a high-load, low-load and expected-load 
20 scenario for the load of the eligible retail customers. For 
21 procurement planning periods beginning on and after June 1, 
22 2012, the electric utility shall provide a range of annual 
23 forecasts for the 5-year procurement planning period of the 
24 total kilowatthour usage of eligible retail customers and 
25 the total annual kilowatthour usage of delivery services 
26 non-eligible retail customers in its service area. The 
 
 
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1 utility shall provide supporting data and assumptions for 
2 each of the scenarios.

3  (2) Beginning in 2008, the Illinois Power Agency shall 
4 prepare a procurement plan by August 15th of each year, or 
5 such other date as may be required by the Commission. The 
6 procurement plan shall identify the portfolio of 
7 demand-response, energy efficiency products, and power and 
8 energy products to be procured. Cost-effective 
9 demand-response measures and cost-effective energy 
10 measures shall be procured as set forth in items item (iii) 
11 and (iv) of subsection (b) of this Section. Copies of the 
12 procurement plan shall be posted and made publicly 
13 available on the Agency's and Commission's websites, and 
14 copies shall also be provided to each affected electric 
15 utility. An affected utility shall have 30 days following 
16 the date of posting to provide comment to the Agency on the 
17 procurement plan. Other interested entities also may 
18 comment on the procurement plan. All comments submitted to 
19 the Agency shall be specific, supported by data or other 
20 detailed analyses, and, if objecting to all or a portion of 
21 the procurement plan, accompanied by specific alternative 
22 wording or proposals. All comments shall be posted on the 
23 Agency's and Commission's websites. During this 30-day 
24 comment period, the Agency shall hold at least one public 
25 hearing within each utility's service area for the purpose 
26 of receiving public comment on the procurement plan. Within 
 
 
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1 14 days following the end of the 30-day review period, the 
2 Agency shall revise the procurement plan as necessary based 
3 on the comments received and file the procurement plan with 
4 the Commission and post the procurement plan on the 
5 websites.
6  (3) Within 5 days after the filing of the procurement 
7 plan, any person objecting to the procurement plan shall 
8 file an objection with the Commission. Within 10 days after 
9 the filing, the Commission shall determine whether a 
10 hearing is necessary. The Commission shall enter its order 
11 confirming or modifying the procurement plan within 90 days 
12 after the filing of the procurement plan by the Illinois 
13 Power Agency.
14  (4) The Commission shall approve the procurement plan, 
15 including expressly the forecast used in the procurement 
16 plan, if the Commission determines that it will ensure 
17 adequate, reliable, affordable, efficient, and 
18 environmentally sustainable electric service at the lowest 
19 total cost over time, taking into account any benefits of 
20 price stability.
21 (e) The procurement process shall include each of the 
22following components:
23  (1) Solicitation, pre-qualification, and registration 
24 of bidders. The procurement administrator shall 
25 disseminate information to potential bidders to promote a 
26 procurement event, notify potential bidders that the 
 
 
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1 procurement administrator may enter into a post-bid price 
2 negotiation with bidders that meet the applicable 
3 benchmarks, provide supply requirements, and otherwise 
4 explain the competitive procurement process. In addition 
5 to such other publication as the procurement administrator 
6 determines is appropriate, this information shall be 
7 posted on the Illinois Power Agency's and the Commission's 
8 websites. The procurement administrator shall also 
9 administer the prequalification process, including 
10 evaluation of credit worthiness, compliance with 
11 procurement rules, and agreement to the standard form 
12 contract developed pursuant to paragraph (2) of this 
13 subsection (e). The procurement administrator shall then 
14 identify and register bidders to participate in the 
15 procurement event.
16  (2) Standard contract forms and credit terms and 
17 instruments. The procurement administrator, in 
18 consultation with the utilities, the Commission, and other 
19 interested parties and subject to Commission oversight, 
20 shall develop and provide standard contract forms for the 
21 supplier contracts that meet generally accepted industry 
22 practices. Standard credit terms and instruments that meet 
23 generally accepted industry practices shall be similarly 
24 developed. The procurement administrator shall make 
25 available to the Commission all written comments it 
26 receives on the contract forms, credit terms, or 
 
 
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1 instruments. If the procurement administrator cannot reach 
2 agreement with the applicable electric utility as to the 
3 contract terms and conditions, the procurement 
4 administrator must notify the Commission of any disputed 
5 terms and the Commission shall resolve the dispute. The 
6 terms of the contracts shall not be subject to negotiation 
7 by winning bidders, and the bidders must agree to the terms 
8 of the contract in advance so that winning bids are 
9 selected solely on the basis of price.
10  (3) Establishment of a market-based price benchmark. 
11 As part of the development of the procurement process, the 
12 procurement administrator, in consultation with the 
13 Commission staff, Agency staff, and the procurement 
14 monitor, shall establish benchmarks for evaluating the 
15 final prices in the contracts for each of the products that 
16 will be procured through the procurement process. The 
17 benchmarks shall be based on price data for similar 
18 products for the same delivery period and same delivery 
19 hub, or other delivery hubs after adjusting for that 
20 difference. The price benchmarks may also be adjusted to 
21 take into account differences between the information 
22 reflected in the underlying data sources and the specific 
23 products and procurement process being used to procure 
24 power for the Illinois utilities. The benchmarks shall be 
25 confidential but shall be provided to, and will be subject 
26 to Commission review and approval, prior to a procurement 
 
 
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1 event.
2  (4) Request for proposals competitive procurement 
3 process. The procurement administrator shall design and 
4 issue a request for proposals to supply electricity in 
5 accordance with each utility's procurement plan, as 
6 approved by the Commission. The request for proposals shall 
7 set forth a procedure for sealed, binding commitment 
8 bidding with pay-as-bid settlement, and provision for 
9 selection of bids on the basis of price.
10  (5) A plan for implementing contingencies in the event 
11 of supplier default or failure of the procurement process 
12 to fully meet the expected load requirement due to 
13 insufficient supplier participation, Commission rejection 
14 of results, or any other cause.
15   (i) Event of supplier default: In the event of 
16 supplier default, the utility shall review the 
17 contract of the defaulting supplier to determine if the 
18 amount of supply is 200 megawatts or greater, and if 
19 there are more than 60 days remaining of the contract 
20 term. If both of these conditions are met, and the 
21 default results in termination of the contract, then 
22 the utility shall immediately notify the Illinois 
23 Power Agency that a request for proposals must be 
24 issued to procure replacement power or energy 
25 efficiency products, and the procurement administrator 
26 shall run an additional procurement event. If the 
 
 
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1 contracted supply of the defaulting supplier is less 
2 than 200 megawatts or there are less than 60 days 
3 remaining of the contract term, then the utility shall 
4 procure energy efficiency products or power and energy 
5 from the applicable regional transmission organization 
6 market, including ancillary services, capacity, energy 
7 efficiency products, and day-ahead or real time 
8 energy, or both, for the duration of the contract term 
9 to replace the contracted supply; provided, however, 
10 that if a needed product is not available through the 
11 regional transmission organization market it shall be 
12 purchased from the wholesale market.
13   (ii) Failure of the procurement process to fully 
14 meet the expected load requirement: If the procurement 
15 process fails to fully meet the expected load 
16 requirement due to insufficient supplier participation 
17 or due to a Commission rejection of the procurement 
18 results, the procurement administrator, the 
19 procurement monitor, and the Commission staff shall 
20 meet within 10 days to analyze potential causes of low 
21 supplier interest or causes for the Commission 
22 decision. If changes are identified that would likely 
23 result in increased supplier participation, or that 
24 would address concerns causing the Commission to 
25 reject the results of the prior procurement event, the 
26 procurement administrator may implement those changes 
 
 
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1 and rerun the request for proposals process according 
2 to a schedule determined by those parties and 
3 consistent with Section 1-75 of the Illinois Power 
4 Agency Act and this subsection. In any event, a new 
5 request for proposals process shall be implemented by 
6 the procurement administrator within 90 days after the 
7 determination that the procurement process has failed 
8 to fully meet the expected load requirement.
9   (iii) In all cases where there is insufficient 
10 supply provided under contracts awarded through the 
11 procurement process to fully meet the electric 
12 utility's load requirement, the utility shall meet the 
13 load requirement by procuring power and energy from the 
14 applicable regional transmission organization market, 
15 including ancillary services, capacity, and day-ahead 
16 or real time energy or both; provided, however, that if 
17 a needed product is not available through the regional 
18 transmission organization market it shall be purchased 
19 from the wholesale market.
20  (6) The procurement process described in this 
21 subsection is exempt from the requirements of the Illinois 
22 Procurement Code, pursuant to Section 20-10 of that Code.
23 (f) Within 2 business days after opening the sealed bids, 
24the procurement administrator shall submit a confidential 
25report to the Commission. The report shall contain the results 
26of the bidding for each of the products along with the 
 
 
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1procurement administrator's recommendation for the acceptance 
2and rejection of bids based on the price benchmark criteria and 
3other factors observed in the process. For procurements 
4applicable to periods beginning on and after June 1, 2012, the 
5report shall also include, with respect to each recommended 
6purchase of bundled renewable energy resources as defined in 
7Section 1-10 of the Illinois Power Agency Act, an allocation of 
8the price between the price of the electricity generated by 
9renewable energy resources and the price of the associated 
10renewable energy credits. The procurement monitor also shall 
11submit a confidential report to the Commission within 2 
12business days after opening the sealed bids. The report shall 
13contain the procurement monitor's assessment of bidder 
14behavior in the process as well as an assessment of the 
15procurement administrator's compliance with the procurement 
16process and rules. The Commission shall review the confidential 
17reports submitted by the procurement administrator and 
18procurement monitor, and shall accept or reject the 
19recommendations of the procurement administrator, including 
20the recommended allocation of the price of each purchase of 
21bundled renewable energy resources between the price of the 
22electricity and the price of the associated renewable energy 
23credits, within 2 business days after receipt of the reports.
24 (g) Within 3 business days after the Commission decision 
25approving the results of a procurement event, the utility shall 
26enter into binding contractual arrangements with the winning 
 
 
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1suppliers using the standard form contracts; except that the 
2utility shall not be required either directly or indirectly to 
3execute the contracts if a tariff that is consistent with 
4subsection (l) of this Section has not been approved and placed 
5into effect for that utility.
6 (h) The names of the successful bidders and the load 
7weighted average of the winning bid prices for each contract 
8type and for each contract term shall be made available to the 
9public at the time of Commission approval of a procurement 
10event. The Commission, the procurement monitor, the 
11procurement administrator, the Illinois Power Agency, and all 
12participants in the procurement process shall maintain the 
13confidentiality of all other supplier and bidding information 
14in a manner consistent with all applicable laws, rules, 
15regulations, and tariffs. Confidential information, including 
16the confidential reports submitted by the procurement 
17administrator and procurement monitor pursuant to subsection 
18(f) of this Section, shall not be made publicly available and 
19shall not be discoverable by any party in any proceeding, 
20absent a compelling demonstration of need, nor shall those 
21reports be admissible in any proceeding other than one for law 
22enforcement purposes.
23 (i) Within 2 business days after a Commission decision 
24approving the results of a procurement event or such other date 
25as may be required by the Commission from time to time, the 
26utility shall file for informational purposes with the 
 
 
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1Commission its actual or estimated retail supply charges, as 
2applicable, by customer supply group reflecting the costs 
3associated with the procurement and computed in accordance with 
4the tariffs filed pursuant to subsection (l) of this Section 
5and approved by the Commission.
6 (j) Within 60 days following the effective date of this 
7amendatory Act, each electric utility that on December 31, 2005 
8provided electric service to at least 100,000 customers in 
9Illinois shall prepare and file with the Commission an initial 
10procurement plan, which shall conform in all material respects 
11to the requirements of the procurement plan set forth in 
12subsection (b); provided, however, that the Illinois Power 
13Agency Act shall not apply to the initial procurement plan 
14prepared pursuant to this subsection. The initial procurement 
15plan shall identify the portfolio of power and energy products 
16to be procured and delivered for the period June 2008 through 
17May 2009, and shall identify the proposed procurement 
18administrator, who shall have the same experience and expertise 
19as is required of a procurement administrator hired pursuant to 
20Section 1-75 of the Illinois Power Agency Act. Copies of the 
21procurement plan shall be posted and made publicly available on 
22the Commission's website. The initial procurement plan may 
23include contracts for renewable resources that extend beyond 
24May 2009.
25  (i) Within 14 days following filing of the initial 
26 procurement plan, any person may file a detailed objection 
 
 
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1 with the Commission contesting the procurement plan 
2 submitted by the electric utility. All objections to the 
3 electric utility's plan shall be specific, supported by 
4 data or other detailed analyses. The electric utility may 
5 file a response to any objections to its procurement plan 
6 within 7 days after the date objections are due to be 
7 filed. Within 7 days after the date the utility's response 
8 is due, the Commission shall determine whether a hearing is 
9 necessary. If it determines that a hearing is necessary, it 
10 shall require the hearing to be completed and issue an 
11 order on the procurement plan within 60 days after the 
12 filing of the procurement plan by the electric utility.
13  (ii) The order shall approve or modify the procurement 
14 plan, approve an independent procurement administrator, 
15 and approve or modify the electric utility's tariffs that 
16 are proposed with the initial procurement plan. The 
17 Commission shall approve the procurement plan if the 
18 Commission determines that it will ensure adequate, 
19 reliable, affordable, efficient, and environmentally 
20 sustainable electric service at the lowest total cost over 
21 time, taking into account any benefits of price stability.
22 (k) In order to promote price stability for residential and 
23small commercial customers during the transition to 
24competition in Illinois, and notwithstanding any other 
25provision of this Act, each electric utility subject to this 
26Section shall enter into one or more multi-year financial swap 
 
 
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1contracts that become effective on the effective date of this 
2amendatory Act. These contracts may be executed with generators 
3and power marketers, including affiliated interests of the 
4electric utility. These contracts shall be for a term of no 
5more than 5 years and shall, for each respective utility or for 
6any Illinois electric utilities that are affiliated by virtue 
7of a common parent company and that are thereby considered a 
8single electric utility for purposes of this subsection (k), 
9not exceed in the aggregate 3,000 megawatts for any hour of the 
10year. The contracts shall be financial contracts and not energy 
11sales contracts. The contracts shall be executed as 
12transactions under a negotiated master agreement based on the 
13form of master agreement for financial swap contracts sponsored 
14by the International Swaps and Derivatives Association, Inc. 
15and shall be considered pre-existing contracts in the 
16utilities' procurement plans for residential and small 
17commercial customers. Costs incurred pursuant to a contract 
18authorized by this subsection (k) shall be deemed prudently 
19incurred and reasonable in amount and the electric utility 
20shall be entitled to full cost recovery pursuant to the tariffs 
21filed with the Commission.
22 (l) An electric utility shall recover its costs incurred 
23under this Section, including, but not limited to, the costs of 
24procuring power, energy efficiency products, and energy 
25demand-response resources under this Section. The utility 
26shall file with the initial procurement plan its proposed 
 
 
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1tariffs through which its costs of procuring power that are 
2incurred pursuant to a Commission-approved procurement plan 
3and those other costs identified in this subsection (l), will 
4be recovered. The tariffs shall include a formula rate or 
5charge designed to pass through both the costs incurred by the 
6utility in procuring a supply of electric power and energy for 
7the applicable customer classes with no mark-up or return on 
8the price paid by the utility for that supply, plus any just 
9and reasonable costs that the utility incurs in arranging and 
10providing for the supply of electric power and energy. The 
11formula rate or charge shall also contain provisions that 
12ensure that its application does not result in over or under 
13recovery due to changes in customer usage and demand patterns, 
14and that provide for the correction, on at least an annual 
15basis, of any accounting errors that may occur. A utility shall 
16recover through the tariff all reasonable costs incurred to 
17implement or comply with any procurement plan that is developed 
18and put into effect pursuant to Section 1-75 of the Illinois 
19Power Agency Act and this Section, including any fees assessed 
20by the Illinois Power Agency, costs associated with load 
21balancing, and contingency plan costs. The electric utility 
22shall also recover its full costs of procuring electric supply 
23for which it contracted before the effective date of this 
24Section in conjunction with the provision of full requirements 
25service under fixed-price bundled service tariffs subsequent 
26to December 31, 2006. All such costs shall be deemed to have 
 
 
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1been prudently incurred. The pass-through tariffs that are 
2filed and approved pursuant to this Section shall not be 
3subject to review under, or in any way limited by, Section 
416-111(i) of this Act. Beginning June 1, 2012, the costs 
5incurred by the electric utility to purchase renewable energy 
6credits in accordance with subsection (c) of Section 1-75 of 
7the Illinois Power Agency Act shall be recovered through the 
8electric utility's tariffed charges for delivery services 
9pursuant to Section 16-108 of this Act and shall not be 
10recovered through the electric utility's tariffed charges for 
11electric power and energy supply to its eligible retail 
12customers. 
13 (m) The Commission has the authority to adopt rules to 
14carry out the provisions of this Section. For the public 
15interest, safety, and welfare, the Commission also has 
16authority to adopt rules to carry out the provisions of this 
17Section on an emergency basis immediately following the 
18effective date of this amendatory Act.
19 (n) Notwithstanding any other provision of this Act, any 
20affiliated electric utilities that submit a single procurement 
21plan covering their combined needs may procure for those 
22combined needs in conjunction with that plan, and may enter 
23jointly into power supply contracts, purchases, and other 
24procurement arrangements, and allocate capacity, energy 
25efficiency products, and energy and cost responsibility 
26therefor among themselves in proportion to their requirements.
 
 
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1 (o) On or before June 1 of each year, the Commission shall 
2hold an informal hearing for the purpose of receiving comments 
3on the prior year's procurement process and any recommendations 
4for change.

5 (p) An electric utility subject to this Section may propose 
6to invest, lease, own, or operate an electric generation 
7facility as part of its procurement plan, provided the utility 
8demonstrates that such facility is the least-cost option to 
9provide electric service to eligible retail customers. If the 
10facility is shown to be the least-cost option and is included 
11in a procurement plan prepared in accordance with Section 1-75 
12of the Illinois Power Agency Act and this Section, then the 
13electric utility shall make a filing pursuant to Section 8-406 
14of the Act, and may request of the Commission any statutory 
15relief required thereunder. If the Commission grants all of the 
16necessary approvals for the proposed facility, such supply 
17shall thereafter be considered as a pre-existing contract under 
18subsection (b) of this Section. The Commission shall in any 
19order approving a proposal under this subsection specify how 
20the utility will recover the prudently incurred costs of 
21investing in, leasing, owning, or operating such generation 
22facility through just and reasonable rates charged to eligible 
23retail customers. Cost recovery for facilities included in the 
24utility's procurement plan pursuant to this subsection shall 
25not be subject to review under or in any way limited by the 
26provisions of Section 16-111(i) of this Act. Nothing in this 
 
 
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1Section is intended to prohibit a utility from filing for a 
2fuel adjustment clause as is otherwise permitted under Section 
39-220 of this Act.


4(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09.)



5 (220 ILCS 5/16-115)



6 Sec. 16-115. Certification of alternative retail
electric 
7suppliers.
8 (a) Any alternative retail electric supplier must obtain
a 
9certificate of service authority from the Commission in

10accordance with this Section before serving any retail
customer 
11or other user located in this State. An alternative
retail 
12electric supplier may request, and the Commission may
grant, a 
13certificate of service authority for the entire State
or for a 
14specified geographic area of the State.

15 (b) An alternative retail electric supplier seeking a

16certificate of service authority shall file with the
Commission 
17a verified application containing information
showing that the 
18applicant meets the requirements of this
Section. The 
19alternative retail electric supplier shall
publish notice of 
20its application in the official State
newspaper within 10 days 
21following the date of its filing. No
later than 45 days after 
22the application is properly filed
with the Commission, and such 
23notice is published, the
Commission shall issue its order 
24granting or denying the
application.

25 (c) An application for a certificate of service
authority 
 
 
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1shall identify the area or areas in which the
applicant intends 
2to offer service and the types of services
it intends to offer. 
3Applicants that seek to serve
residential or small commercial 
4retail customers within a
geographic area that is smaller than 
5an electric utility's
service area shall submit evidence 
6demonstrating that the
designation of this smaller area does 
7not violate Section 16-115A. An applicant
that seeks to serve 
8residential or small
commercial retail customers may state in 
9its application for
certification any limitations that will be 
10imposed on the
number of customers or maximum load to be 
11served.

12 (d) The Commission shall grant the application for a

13certificate of service authority if it makes the findings set

14forth in this subsection
based on the verified
application and 
15such other information as the applicant may
submit:


16  (1) That the applicant possesses sufficient
technical, 
17 financial and managerial resources and
abilities to 
18 provide the service for which it seeks a
certificate of 
19 service authority. In determining the
level of technical, 
20 financial and managerial resources
and abilities which the 
21 applicant must demonstrate, the
Commission shall consider 
22 (i) the characteristics,
including the size and financial 
23 sophistication, of the
customers that the applicant seeks 
24 to serve, and (ii)
whether the applicant seeks to provide 
25 electric power and
energy using property, plant and 
26 equipment which it owns,
controls or operates;


 
 
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1  (2) That the applicant will comply with all
applicable 
2 federal, State, regional and industry rules,
policies, 
3 practices and procedures for the use,
operation, and 
4 maintenance of the safety, integrity and
reliability, of 
5 the interconnected electric transmission
system;


6  (3) That the applicant will only provide service to

7 retail customers in an electric utility's service area
that 
8 are eligible to take delivery services under this
Act;


9  (4) That the applicant will comply with such

10 informational or reporting requirements as the Commission

11 may by rule establish and provide the information required 
12 by Section 16-112.
Any data related to
contracts for the 
13 purchase and sale of electric power and
energy shall be 
14 made available for review by the Staff of
the Commission on 
15 a confidential and proprietary basis
and only to the extent 
16 and for the purposes which the
Commission determines are 
17 reasonably necessary in order
to carry out the purposes of 
18 this Act;


19  (5) That the applicant will procure renewable energy 
20 resources in accordance with Section 16-115D of this Act, 
21 and will source electricity from clean coal facilities, as 
22 defined in Section 1-10 of the Illinois Power Agency Act, 
23 in amounts at least equal to the percentages set forth in 
24 subsections (c) and (d) of Section 1-75 of the Illinois 
25 Power Agency Act. For purposes of this Section: 

26   (i) (blank) (Blank);
 
 
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1   (ii) (blank) (Blank);
2   (iii) (blank); the required sourcing of 
3 electricity generated by clean coal facilities, other 
4 than the initial clean coal facility, shall be limited 
5 to the amount of electricity that can be procured or 
6 sourced at a price at or below the benchmarks approved 
7 by the Commission each year in accordance with item (1) 
8 of subsection (c) and items (1) and (5) of subsection 
9 (d) of Section 1-75 of the Illinois Power Agency Act;
10   (iv) all alternative retail electric suppliers, 
11 whether certified before or after the effective date of 
12 this amendatory Act of the 97th General Assembly, shall 
13 execute a sourcing agreement to source electricity 
14 from the initial clean coal facility, on the terms set 
15 forth in paragraphs (3) and (4) of subsection (d) of 
16 Section 1-75 of the Illinois Power Agency Act, with 
17 each reference therein to "utility" being deemed to be 
18 a reference to an alternative retail electric 
19 supplier, except that in lieu of the requirements in 
20 subparagraphs (B)(v), (D)(ii), and (D)(vii) (A)(v), 
21 (B)(i), (C)(v), and (C)(vi) of paragraph (3) of that 
22 subsection (d), shall not apply; the applicant shall 
23 execute one or more of the following:
24    (1) if the sourcing agreement is a power 
25 purchase agreement, a contract with the initial 
26 clean coal facility to purchase in each hour an 
 
 
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1 amount of electricity equal to all clean coal 
2 energy made available from the initial clean coal 
3 facility during such hour, which the utilities are 
4 not required to procure under the terms of 
5 subsection (d) of Section 1-75 of the Illinois 
6 Power Agency Act, multiplied by a fraction, the 
7 numerator of which is the alternative retail 
8 electric supplier's retail market sales of 
9 electricity (expressed in kilowatthours sold) in 
10 the State during the prior calendar month and the 
11 denominator of which is the total sales of 
12 electricity (expressed in kilowatthours sold) in 
13 the State by alternative retail electric suppliers 
14 during such prior month that are subject to the 
15 requirements of this paragraph (5) of subsection 
16 (d) of this Section and subsection (d) of Section 
17 1-75 of the Illinois Power Agency Act plus the 
18 total sales of electricity (expressed in 
19 kilowatthours sold) by utilities outside of their 
20 service areas during such prior month, pursuant to 
21 subsection (c) of Section 16-116 of this Act; or
22    (2) if the sourcing agreement is a contract for 
23 differences, a contract with the initial clean 
24 coal facility in each hour with respect to an 
25 amount of electricity equal to all clean coal 
26 energy made available from the initial clean coal 
 
 
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1 facility during such hour, which the utilities are 
2 not required to procure under the terms of 
3 subsection (d) of Section 1-75 of the Illinois 
4 Power Agency Act, multiplied by a fraction, the 
5 numerator of which is the alternative retail 
6 electric supplier's retail market sales of 
7 electricity (expressed in kilowatthours sold) in 
8 the State during the prior calendar month and the 
9 denominator of which is the total sales of 
10 electricity (expressed in kilowatthours sold) in 
11 the State by alternative retail electric suppliers 
12 during such prior month that are subject to the 
13 requirements of this paragraph (5) of subsection 
14 (d) of this Section and subsection (d) of Section 
15 1-75 of the Illinois Power Agency Act plus the 
16 total sales of electricity (expressed in 
17 kilowatthours sold) by utilities outside of their 
18 service areas during such prior month, pursuant to 
19 subsection (c) of Section 16-116 of this Act; 
20   (v) (blank); if, in any year after the first year 
21 of commercial operation, the owner of the clean coal 
22 facility fails to demonstrate to the Commission that 
23 the initial clean coal facility captured and 
24 sequestered at least 50% of the total carbon emissions 
25 that the facility would otherwise emit or that 
26 sequestration of emissions from prior years has 
 
 
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1 failed, resulting in the release of carbon into the 
2 atmosphere, the owner of the facility must offset 
3 excess emissions. Any such carbon offsets must be 
4 permanent, additional, verifiable, real, located 
5 within the State of Illinois, and legally and 
6 practicably enforceable. The costs of any such offsets 
7 that are not recoverable shall not exceed $15 million 
8 in any given year. No costs of any such purchases of 
9 carbon offsets may be recovered from an alternative 
10 retail electric supplier or its customers. All carbon 
11 offsets purchased for this purpose and any carbon 
12 emission credits associated with sequestration of 
13 carbon from the facility must be permanently retired. 
14 The initial clean coal facility shall not forfeit its 
15 designation as a clean coal facility if the facility 
16 fails to fully comply with the applicable carbon 
17 sequestration requirements in any given year, provided 
18 the requisite offsets are purchased. However, the 
19 Attorney General, on behalf of the People of the State 
20 of Illinois, may specifically enforce the facility's 
21 sequestration requirement and the other terms of this 
22 contract provision. Compliance with the sequestration 
23 requirements and offset purchase requirements that 
24 apply to the initial clean coal facility shall be 
25 reviewed annually by an independent expert retained by 
26 the owner of the initial clean coal facility, with the 
 
 
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1 advance written approval of the Attorney General;
2   (vi) the The Commission shall, after notice and 
3 hearing, revoke the certification of any alternative 
4 retail electric supplier that fails to execute a 
5 sourcing agreement with the initial clean coal 
6 facility as required by item (5) of subsection (d) of 
7 this Section. The sourcing agreements with the this 
8 initial clean coal facility shall be subject to 
9 approval both approval of the initial clean coal 
10 facility by the Illinois Power Agency pursuant to 
11 paragraph (4) of subsection (d) of Section 1-75 of the 
12 Illinois Power Agency Act General Assembly and 
13 satisfaction of the requirements of item (4) of 
14 subsection (d) of Section 1-75 of the Illinois Power 
15 Agency Act, and shall be executed within 90 days after 
16 any such approval by the Illinois Power Agency or the 
17 issuance of any necessary approval by the Federal 
18 Energy Regulatory Commission, whichever is later;
19   (vii) The Commission shall have jurisdiction over 
20 disciplinary proceedings and complaints for violations 
21 of this Section. If, upon complaint, the Commission 
22 determines an alternative retail electric supplier has 
23 failed to execute a sourcing agreement with the initial 
24 clean coal facility, then the Commission shall issue 
25 notice of the finding to the alternative retail 
26 electric supplier. The alternative retail electric 
 
 
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1 supplier shall have 30 days after the receipt of notice 
2 to enter into a sourcing agreement. If, after the 
3 notice period, the Commission finds an alternative 
4 retail electric supplier has failed to comply, then the 
5 Commission shall revoke the alternative retail 
6 electric supplier's certificate for 6 months General 
7 Assembly. The Commission shall not accept an 
8 application for certification from an alternative 
9 retail electric supplier that has lost certification 
10 under this subsection (d), or any corporate affiliate 
11 thereof, for at least one year from the date of 
12 revocation; 

13  (6) With respect to an applicant that seeks to serve

14 residential or small commercial retail customers, that
the 
15 area to be served by the applicant and any
limitations it 
16 proposes on the number of customers or
maximum amount of 
17 load to be served meet the provisions
of Section 16-115A, 
18 provided, that the Commission can
extend the time for 
19 considering such a certificate
request by up to 90 days, 
20 and can schedule hearings on
such a request;


21  (7) That the applicant meets the requirements of 
22 subsection (a) of Section
16-128; and


23  (8) That the applicant will comply with all other

24 applicable laws and regulations.

25 (d-5) (Blank). 
26 (e) A retail customer that owns a cogeneration or 
 
 
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1self-generation facility
and that seeks certification only to

2provide electric power and energy from such facility to
retail 
3customers at separate locations which customers are
both (i) 
4owned by, or a subsidiary or other corporate
affiliate of, such 
5applicant and
(ii) eligible for delivery services, shall be 
6granted a
certificate of service authority upon filing an 
7application
and notifying the Commission that it has entered 
8into an
agreement with the relevant electric utilities pursuant 
9to
Section 16-118.
Provided, however, that if the retail 
10customer owning such cogeneration or
self-generation facility 
11would not be charged a transition charge due to the
exemption 
12provided under subsection (f) of Section 16-108 prior to the

13certification, and the retail customers at separate locations 
14are taking
delivery services in conjunction with purchasing 
15power and energy from the
facility, the retail customer on 
16whose premises the facility is located shall
not thereafter be 
17required to pay transition charges on the power and energy
that 
18such retail customer takes from the facility.

19 (f) The Commission shall have the authority to
promulgate 
20rules and regulations to carry out the provisions
of this 
21Section. On or before May 1, 1999, the Commission
shall adopt a 
22rule or rules applicable to the certification of
those 
23alternative retail electric suppliers that seek to serve
only 
24nonresidential retail customers with maximum electrical

25demands of one megawatt or more which shall provide for (i)

26expedited and streamlined procedures
for certification of such 
 
 
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1alternative
retail electric suppliers and (ii) specific 
2criteria which,
if met by any such alternative retail electric 
3supplier, shall
constitute the demonstration of technical, 
4financial and
managerial resources and abilities to provide 
5service required
by subsection (d) (1) of this Section, such as 
6a requirement
to post a bond or letter of credit, from a 
7responsible surety
or financial institution, of sufficient 
8size for the nature
and scope of the services to be provided; 
9demonstration of
adequate insurance for the scope and nature of 
10the services to
be provided; and experience in providing 
11similar services in
other jurisdictions.

12 (g) In any proceeding initiated by a public utility 
13pursuant to Section 8-406 or Section 8-406.1 of the this Act 
14for a certificate of public convenience and necessity to 
15construct and operate any utility plant, equipment, or facility 
16required to provide service to the initial clean coal facility, 
17it shall be conclusively presumed that the public convenience 
18and necessary require the construction of such utility plant, 
19equipment, or facility. In any proceeding initiated by a public 
20utility pursuant to Section 8-503 of this Act for an order 
21directing the addition, extension, or improvement of any 
22utility plant, equipment, facilities, or other property or the 
23erection of any new utility plant, or equipment or facilities 
24to provide service to the initial clean coal facility, it shall 
25be conclusively presumed that such additional, extended, 
26improved or new utility plant, equipment, facility, or other 
 
 
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1property is necessary and should be added, extended, or 
2erected. 
3(Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09; 
496-159, eff. 8-10-09.)


5 (220 ILCS 5/16-115D)
6 Sec. 16-115D. Renewable portfolio standard for alternative 
7retail electric suppliers and electric utilities operating 
8outside their service territories.
9 (a) Until May 31, 2012, an An alternative retail electric 
10supplier shall be responsible for procuring cost-effective 
11renewable energy resources as required under item (5) of 
12subsection (d) of Section 16-115 of this Act as outlined 
13herein:
14  (1) The definition of renewable energy resources 
15 contained in Section 1-10 of the Illinois Power Agency Act 
16 applies to all renewable energy resources required to be 
17 procured by alternative retail electric suppliers.
18  (2) The quantity of renewable energy resources shall be 
19 measured as a percentage of the actual amount of metered 
20 electricity (megawatt-hours) delivered by the alternative 
21 retail electric supplier to Illinois retail customers 
22 during the 12-month period June 1 through May 31, 
23 commencing June 1, 2009, and the comparable 12-month period 
24 in each year thereafter except as provided in item (6) of 
25 this subsection (a).
 
 
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1  (3) The quantity of renewable energy resources shall be 
2 in amounts at least equal to the annual percentages set 
3 forth in item (1) of subsection (c) of Section 1-75 of the 
4 Illinois Power Agency Act. At least 60% of the renewable 
5 energy resources procured pursuant to items (1) through (3) 
6 of subsection (b) of this Section shall come from wind 
7 generation and, starting June 1, 2015, at least 6% of the 
8 renewable energy resources procured pursuant to items (1) 
9 through (3) of subsection (b) of this Section shall come 
10 from solar photovoltaics. If, in any given year, an 
11 alternative retail electric supplier does not purchase at 
12 least these levels of renewable energy resources, then the 
13 alternative retail electric supplier shall make 
14 alternative compliance payments, as described in 
15 subsection (d) of this Section.
16  (4) The quantity and source of renewable energy 
17 resources shall be independently verified through the PJM 
18 Environmental Information System Generation Attribute 
19 Tracking System (PJM-GATS) or the Midwest Renewable Energy 
20 Tracking System (M-RETS), which shall document the 
21 location of generation, resource type, month, and year of 
22 generation for all qualifying renewable energy resources 
23 that an alternative retail electric supplier uses to comply 
24 with this Section. No later than June 1, 2009, the Illinois 
25 Power Agency shall provide PJM-GATS, M-RETS, and 
26 alternative retail electric suppliers with all information 
 
 
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1 necessary to identify resources located in Illinois, 
2 within states that adjoin Illinois or within portions of 
3 the PJM and MISO footprint in the United States that 
4 qualify under the definition of renewable energy resources 
5 in Section 1-10 of the Illinois Power Agency Act for 
6 compliance with this Section 16-115D. Alternative retail 
7 electric suppliers shall not be subject to the requirements 
8 in item (3) of subsection (c) of Section 1-75 of the 
9 Illinois Power Agency Act.
10  (5) All renewable energy credits used to comply with 
11 this Section shall be permanently retired.
12  (6) The required procurement of renewable energy 
13 resources by an alternative retail electric supplier shall 
14 apply to all metered electricity delivered to Illinois 
15 retail customers by the alternative retail electric 
16 supplier pursuant to contracts executed or extended after 
17 March 15, 2009.
18 (b) Until May 31, 2012, an An alternative retail electric 
19supplier shall comply with the renewable energy portfolio 
20standards by making an alternative compliance payment, as 
21described in subsection (d) of this Section, to cover at least 
22one-half of the alternative retail electric supplier's 
23compliance obligation and any one or combination of the 
24following means to cover the remainder of the alternative 
25retail electric supplier's compliance obligation:
26  (1) Generating electricity using renewable energy 
 
 
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1 resources identified pursuant to item (4) of subsection (a) 
2 of this Section.
3  (2) Purchasing electricity generated using renewable 
4 energy resources identified pursuant to item (4) of 
5 subsection (a) of this Section through an energy contract.
6  (3) Purchasing renewable energy credits from renewable 
7 energy resources identified pursuant to item (4) of 
8 subsection (a) of this Section.
9  (4) Making an alternative compliance payment as 
10 described in subsection (d) of this Section.
11 (c) Use of renewable energy credits.
12  (1) Renewable energy credits that are not used by an 
13 alternative retail electric supplier to comply with a 
14 renewable portfolio standard in a compliance year may be 
15 banked and carried forward up to 2 12-month compliance 
16 periods after the compliance period in which the credit was 
17 generated for the purpose of complying with a renewable 
18 portfolio standard in those 2 subsequent compliance 
19 periods. For the 2009-2010 and 2010-2011 compliance 
20 periods, an alternative retail electric supplier may use 
21 renewable credits generated after December 31, 2008 and 
22 before June 1, 2009 to comply with this Section.
23  (2) An alternative retail electric supplier is 
24 responsible for demonstrating that a renewable energy 
25 credit used to comply with a renewable portfolio standard 
26 is derived from a renewable energy resource and that the 
 
 
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1 alternative retail electric supplier has not used, traded, 
2 sold, or otherwise transferred the credit.
3  (3) The same renewable energy credit may be used by an 
4 alternative retail electric supplier to comply with a 
5 federal renewable portfolio standard and a renewable 
6 portfolio standard established under this Act. An 
7 alternative retail electric supplier that uses a renewable 
8 energy credit to comply with a renewable portfolio standard 
9 imposed by any other state may not use the same credit to 
10 comply with a renewable portfolio standard established 
11 under this Act.
12 (d) Alternative compliance payments.
13  (1) The Commission shall establish and post on its 
14 website, within 5 business days after entering an order 
15 approving a procurement plan pursuant to Section 1-75 of 
16 the Illinois Power Agency Act, maximum alternative 
17 compliance payment rates, expressed on a per kilowatt-hour 
18 basis, that will be applicable in the first compliance 
19 period following the plan approval. A separate maximum 
20 alternative compliance payment rate shall be established 
21 for the service territory of each electric utility that is 
22 subject to subsection (c) of Section 1-75 of the Illinois 
23 Power Agency Act. Each maximum alternative compliance 
24 payment rate shall be equal to the maximum allowable annual 
25 estimated average net increase due to the costs of the 
26 utility's purchase of renewable energy resources included 
 
 
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1 in the amounts paid by eligible retail customers in 
2 connection with electric service, as described in item (2) 
3 of subsection (c) of Section 1-75 of the Illinois Power 
4 Agency Act for the compliance period, and as established in 
5 the approved procurement plan. Following each procurement 
6 event through which renewable energy resources are 
7 purchased for one or more of these utilities for the 
8 compliance period, the Commission shall establish and post 
9 on its website estimates of the alternative compliance 
10 payment rates, expressed on a per kilowatt-hour basis, that 
11 shall apply for that compliance period. Posting of the 
12 estimates shall occur no later than 10 business days 
13 following the procurement event, however, the Commission 
14 shall not be required to establish and post such estimates 
15 more often than once per calendar month. By July 1 of each 
16 year, the Commission shall establish and post on its 
17 website the actual alternative compliance payment rates 
18 for the preceding compliance year. For compliance years 
19 beginning prior to June 1, 2014, each alternative 
20 compliance payment rate shall be equal to the total amount 
21 of dollars that the utility contracted to spend on 
22 renewable resources, excepting the additional incremental 
23 cost attributable to solar resources, for the compliance 
24 period divided by the forecasted load of eligible retail 
25 customers, at the customers' meters, as previously 
26 established in the Commission-approved procurement plan 
 
 
09700SB1653ham001- 193 -LRB097 05721 ASK 56016 a


1 for that compliance year. For compliance years commencing 
2 on or after June 1, 2014, each alternative compliance 
3 payment rate shall be equal to the total amount of dollars 
4 that the utility contracted to spend on all renewable 
5 resources for the compliance period divided by the 
6 forecasted load of eligible retail customers, at the 
7 customers' meters, as previously established in the 
8 Commission-approved procurement plan for that compliance 
9 year. The actual alternative compliance payment rates may 
10 not exceed the maximum alternative compliance payment 
11 rates established for the compliance period. For purposes 
12 of this subsection (d), the term "eligible retail 
13 customers" has the same meaning as found in Section 
14 16-111.5 of this Act.
15  (2) In any given compliance year, an alternative retail 
16 electric supplier may elect to use alternative compliance 
17 payments to comply with all or a part of the applicable 
18 renewable portfolio standard. In the event that an 
19 alternative retail electric supplier elects to make 
20 alternative compliance payments to comply with all or a 
21 part of the applicable renewable portfolio standard, such 
22 payments shall be made by September 1, 2010 for the period 
23 of June 1, 2009 to May 1, 2010 and by September 1 of each 
24 year thereafter for the subsequent compliance period, in 
25 the manner and form as determined by the Commission. Any 
26 election by an alternative retail electric supplier to use 
 
 
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1 alternative compliance payments is subject to review by the 
2 Commission under subsection (e) of this Section.
3  (3) An alternative retail electric supplier's 
4 alternative compliance payments shall be computed 
5 separately for each electric utility's service territory 
6 within which the alternative retail electric supplier 
7 provided retail service during the compliance period, 
8 provided that the electric utility was subject to 
9 subsection (c) of Section 1-75 of the Illinois Power Agency 
10 Act. For each service territory, the alternative retail 
11 electric supplier's alternative compliance payment shall 
12 be equal to (i) the actual alternative compliance payment 
13 rate established in item (1) of this subsection (d), 
14 multiplied by (ii) the actual amount of metered electricity 
15 delivered by the alternative retail electric supplier to 
16 retail customers within the service territory during the 
17 compliance period, multiplied by (iii) the result of one 
18 minus the ratios of the quantity of renewable energy 
19 resources used by the alternative retail electric supplier 
20 to comply with the requirements of this Section within the 
21 service territory to the product of the percentage of 
22 renewable energy resources required under item (3) of 
23 subsection (a) of this Section and the actual amount of 
24 metered electricity delivered by the alternative retail 
25 electric supplier to retail customers within the service 
26 territory during the compliance period.
 
 
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1  (4) All alternative compliance payments by alternative 
2 retail electric suppliers shall be deposited in the 
3 Illinois Power Agency Renewable Energy Resources Fund and 
4 used to purchase renewable energy credits, in accordance 
5 with Section 1-56 of the Illinois Power Agency Act.
6  (5) The Commission, in consultation with the Illinois 
7 Power Agency, shall establish a process or proceeding to 
8 consider the impact of a federal renewable portfolio 
9 standard, if enacted, on the operation of the alternative 
10 compliance mechanism, which shall include, but not be 
11 limited to, developing, to the extent permitted by the 
12 applicable federal statute, an appropriate methodology to 
13 apportion renewable energy credits retired as a result of 
14 alternative compliance payments made in accordance with 
15 this Section. The Commission shall commence any such 
16 process or proceeding within 35 days after enactment of a 
17 federal renewable portfolio standard.
18 (e) Each alternative retail electric supplier shall, by 
19September 1, 2010 and by September 1 of each year thereafter, 
20prepare and submit to the Commission a report, in a format to 
21be specified by the Commission on or before December 31, 2009, 
22that provides information certifying compliance by the 
23alternative retail electric supplier with this Section, 
24including copies of all PJM-GATS and M-RETS reports, and 
25documentation relating to banking, retiring renewable energy 
26credits, and any other information that the Commission 
 
 
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1determines necessary to ensure compliance with this Section. An 
2alternative retail electric supplier may file commercially or 
3financially sensitive information or trade secrets with the 
4Commission as provided under the rules of the Commission. To be 
5filed confidentially, the information shall be accompanied by 
6an affidavit that sets forth both the reasons for the 
7confidentiality and a public synopsis of the information.
8 (f) The Commission may initiate a contested case to review 
9allegations that the alternative retail electric supplier has 
10violated this Section, including an order issued or rule 
11promulgated under this Section. In any such proceeding, the 
12alternative retail electric supplier shall have the burden of 
13proof. If the Commission finds, after notice and hearing, that 
14an alternative retail electric supplier has violated this 
15Section, then the Commission shall issue an order requiring the 
16alternative retail electric supplier to:
17  (1) immediately comply with this Section; and
18  (2) if the violation involves a failure to procure the 
19 requisite quantity of renewable energy resources or pay the 
20 applicable alternative compliance payment by the annual 
21 deadline, the Commission shall require the alternative 
22 retail electric supplier to double the applicable 
23 alternative compliance payment that would otherwise be 
24 required to bring the alternative retail electric supplier 
25 into compliance with this Section.
26 If an alternative retail electric supplier fails to comply 
 
 
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1with the renewable energy resource portfolio requirement in 
2this Section more than once in a 5-year period, then the 
3Commission shall revoke the alternative electric supplier's 
4certificate of service authority. The Commission shall not 
5accept an application for a certificate of service authority 
6from an alternative retail electric supplier that has lost 
7certification under this subsection (f), or any corporate 
8affiliate thereof, for at least one year after the date of 
9revocation.
10 (g) All of the provisions of this Section apply to electric 
11utilities operating outside their service area except under 
12item (2) of subsection (a) of this Section the quantity of 
13renewable energy resources shall be measured as a percentage of 
14the actual amount of electricity (megawatt-hours) supplied in 
15the State outside of the utility's service territory during the 
1612-month period June 1 through May 31, commencing June 1, 2009, 
17and the comparable 12-month period in each year thereafter 
18except as provided in item (6) of subsection (a) of this 
19Section.
20 If any such utility fails to procure the requisite quantity 
21of renewable energy resources by the annual deadline, then the 
22Commission shall require the utility to double the alternative 
23compliance payment that would otherwise be required to bring 
24the utility into compliance with this Section.
25 If any such utility fails to comply with the renewable 
26energy resource portfolio requirement in this Section more than 
 
 
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1once in a 5-year period, then the Commission shall order the 
2utility to cease all sales outside of the utility's service 
3territory for a period of at least one year.
4 (h) The provisions of this Section and the provisions of 
5subsection (d) of Section 16-115 of this Act relating to 
6procurement of renewable energy resources shall not apply to an 
7alternative retail electric supplier that operates a combined 
8heat and power system in this State or that has a corporate 
9affiliate that operates such a combined heat and power system 
10in this State that supplies electricity primarily to or for the 
11benefit of: (i) facilities owned by the supplier, its 
12subsidiary, or other corporate affiliate; (ii) facilities 
13electrically integrated with the electrical system of 
14facilities owned by the supplier, its subsidiary, or other 
15corporate affiliate; or (iii) facilities that are adjacent to 
16the site on which the combined heat and power system is 
17located.

18 (i) The obligations specified in this Section of 
19alternative electric suppliers and electric utilities 
20operating outside their service territories to procure 
21renewable energy resources, make alternative compliance 
22payments, and file annual reports, and the obligations of the 
23Commission to determine and post alternative compliance 
24payment rates, shall terminate effective May 31, 2012, provided 
25that alternative electric suppliers and electric utilities 
26operating outside their service territories shall be obligated 
 
 
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1to make all alternative compliance payments that they were 
2obligated to pay for periods through and including May 31, 
32012, but were not paid as of that date and to file all 
4required reports for periods prior to June 1, 2012. The 
5Commission shall continue to enforce the payment of unpaid 
6alternative compliance payments after May 31, 2012 in 
7accordance with subsections (f) and (g) of this Section. All 
8alternative compliance payments made after May 31, 2012 shall 
9be deposited in the Illinois Power Agency Renewable Energy 
10Resources Fund and used to purchase renewable energy credits, 
11in accordance with Section 1-56 of the Illinois Power Agency 
12Act. 
13(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; 
1496-1437, eff. 8-17-10.)



15 (220 ILCS 5/16-116)


16 Sec. 16-116. Commission oversight of electric utilities 
17serving retail
customers
outside their service areas or 
18providing
competitive, non-tariffed services.
19 (a) An electric utility that has a tariff on file for

20delivery services may, without regard to any otherwise

21applicable tariffs on file, provide electric power and energy

22to one or more retail customers located outside its service

23area, but only to the extent (i) such retail customer (A) is

24eligible for delivery services under any delivery services

25tariff filed with the Commission by the electric utility in

 
 
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1whose service area the retail customer is located and (B) has

2either elected to take such delivery services or has paid or

3contracted to pay the charges specified in Sections 16-108 and

416-114, or (ii) if such retail customer is served by a

5municipal system or electric cooperative, the customer is

6eligible for delivery services under the terms and conditions

7for such service established by the municipal system or

8electric cooperative serving that customer.

9 (b) An electric utility may offer any competitive
service 
10to any customer or group of customers without filing
contracts 
11with or seeking approval of the Commission, notwithstanding any 
12rule
or regulation that would require such
approval. The 
13Commission shall not increase or decrease the
prices, and may 
14not alter or add to the terms and conditions
for the utility's 
15competitive services, from those agreed to by the electric

16utility and the customer or customers. Non-tariffed, 
17competitive services
shall
not be subject to the provisions of 
18the Electric Supplier Act or to Articles V,
VII, VIII or
IX of 
19the Act, except to the extent that any provisions of
such 
20Articles are made applicable to alternative retail
electric 
21suppliers pursuant to Sections 16-115 and 16-115A, but shall be

22subject to the provisions of subsections (b) through (g) of 
23Section 16-115A,
and Section 16-115B to the same extent such 
24provisions are applicable to the
services provided by 
25alternative retail electric suppliers.

26 (c) Electric utilities serving retail customers outside 
 
 
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1their service areas shall be subject to the requirements of 
2paragraph (5) of subsection (d) of Section 16-115 of the Public 
3Utilities Act, except that the numerators referred to in that 
4subsection (d) shall be the utility's retail market sales of 
5electricity (expressed in kilowatthours sold) in the State 
6outside of the utility's service territory in the prior month. 
7(Source: P.A. 95-1027, eff. 6-1-09.)


8 Section 900. Severability. The provisions of this Act are 
9severable under Section 1.31 of the Statute on Statutes.


10 Section 999. Effective date. This Act takes effect upon 
11becoming law.".