Bill Text: IL SB2552 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that the Illinois Power Agency shall conduct capacity procurement events to procure a target portion of capacity towards the Planning Reserve Margin Requirement for all Load Serving Entities serving customers within the Applicable Local Resource Zone and a target portion of capacity towards the PJM Region Reliability Requirement for Load Serving Entities serving customers within the Applicable Locational Deliverability Area. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-23 - Referred to Assignments [SB2552 Detail]

Download: Illinois-2023-SB2552-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2552 Introduced 3/23/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that the Illinois Power Agency shall conduct capacity procurement events to procure a target portion of capacity towards the Planning Reserve Margin Requirement for all Load Serving Entities serving customers within the Applicable Local Resource Zone and a target portion of capacity towards the PJM Region Reliability Requirement for Load Serving Entities serving customers within the Applicable Locational Deliverability Area. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes.
LRB103 31416 LNS 59082 b
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Power Agency Act is amended by
changing Section 1-20 as follows:
(20 ILCS 3855/1-20)
Sec. 1-20. General powers and duties of the Agency.
(a) The Agency is authorized to do each of the following:
(1) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (A) on December 31, 2005 served
less than 100,000 customers in Illinois and (B) request a
procurement plan for their Illinois jurisdictional load.
Except as provided in paragraph (1.5) of this subsection
(a), the electricity procurement plans shall be updated on
an annual basis and shall include electricity generated
from renewable resources sufficient to achieve the
standards specified in this Act. Beginning with the

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delivery year commencing June 1, 2017, develop procurement
plans to include zero emission credits generated from zero
emission facilities sufficient to achieve the standards
specified in this Act. Beginning with the delivery year
commencing on June 1, 2022, the Agency is authorized to
develop carbon mitigation credit procurement plans to
include carbon mitigation credits generated from
carbon-free energy resources sufficient to achieve the
standards specified in this Act.
(1.5) Develop a long-term renewable resources
procurement plan in accordance with subsection (c) of
Section 1-75 of this Act for renewable energy credits in
amounts sufficient to achieve the standards specified in
this Act for delivery years commencing June 1, 2017 and
for the programs and renewable energy credits specified in
Section 1-56 of this Act. Electricity procurement plans
for delivery years commencing after May 31, 2017, shall
not include procurement of renewable energy resources.
(2) Conduct competitive procurement processes to
procure the supply resources identified in the electricity
procurement plan, pursuant to Section 16-111.5 of the
Public Utilities Act, and, for the delivery year
commencing June 1, 2017, conduct procurement processes to
procure zero emission credits from zero emission
facilities, under subsection (d-5) of Section 1-75 of this
Act. For the delivery year commencing June 1, 2022, the

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Agency is authorized to conduct procurement processes to
procure carbon mitigation credits from carbon-free energy
resources, under subsection (d-10) of Section 1-75 of this
Act.
(2.5) Beginning with the procurement for the 2017
delivery year, conduct competitive procurement processes
and implement programs to procure renewable energy credits
identified in the long-term renewable resources
procurement plan developed and approved under subsection
(c) of Section 1-75 of this Act and Section 16-111.5 of the
Public Utilities Act.
(2.10) Oversee the procurement by electric utilities
that served more than 300,000 customers in this State as
of January 1, 2019 of renewable energy credits from new
renewable energy facilities to be installed, along with
energy storage facilities, at or adjacent to the sites of
electric generating facilities that burned coal as their
primary fuel source as of January 1, 2016 in accordance
with subsection (c-5) of Section 1-75 of this Act.
(2.15) Beginning with the procurement for the delivery
year commencing June 1, 2025, develop capacity procurement
plans and conduct competitive procurement processes for
the procurement of capacity needed to ensure
environmentally sustainable long-term resource adequacy
across the State, for both distribution utilities and
alternative retail electric suppliers, at the lowest cost

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over time, while taking into account the benefits of price
stability and the need to ensure the reliability,
adequacy, and resilience of the bulk power generation and
delivery system, as well as the health and safety of State
residents, and the urgent need to address climate change.
(3) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(4) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(b) Except as otherwise limited by this Act, the Agency
has all of the powers necessary or convenient to carry out the
purposes and provisions of this Act, including without
limitation, each of the following:
(1) To have a corporate seal, and to alter that seal at
pleasure, and to use it by causing it or a facsimile to be
affixed or impressed or reproduced in any other manner.
(2) To use the services of the Illinois Finance
Authority necessary to carry out the Agency's purposes.
(3) To negotiate and enter into loan agreements and
other agreements with the Illinois Finance Authority.
(4) To obtain and employ personnel and hire
consultants that are necessary to fulfill the Agency's

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purposes, and to make expenditures for that purpose within
the appropriations for that purpose.
(5) To purchase, receive, take by grant, gift, devise,
bequest, or otherwise, lease, or otherwise acquire, own,
hold, improve, employ, use, and otherwise deal in and
with, real or personal property whether tangible or
intangible, or any interest therein, within the State.
(6) To acquire real or personal property, whether
tangible or intangible, including without limitation
property rights, interests in property, franchises,
obligations, contracts, and debt and equity securities,
and to do so by the exercise of the power of eminent domain
in accordance with Section 1-21; except that any real
property acquired by the exercise of the power of eminent
domain must be located within the State.
(7) To sell, convey, lease, exchange, transfer,
abandon, or otherwise dispose of, or mortgage, pledge, or
create a security interest in, any of its assets,
properties, or any interest therein, wherever situated.
(8) To purchase, take, receive, subscribe for, or
otherwise acquire, hold, make a tender offer for, vote,
employ, sell, lend, lease, exchange, transfer, or
otherwise dispose of, mortgage, pledge, or grant a
security interest in, use, and otherwise deal in and with,
bonds and other obligations, shares, or other securities
(or interests therein) issued by others, whether engaged

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in a similar or different business or activity.
(9) To make and execute agreements, contracts, and
other instruments necessary or convenient in the exercise
of the powers and functions of the Agency under this Act,
including contracts with any person, including personal
service contracts, or with any local government, State
agency, or other entity; and all State agencies and all
local governments are authorized to enter into and do all
things necessary to perform any such agreement, contract,
or other instrument with the Agency. No such agreement,
contract, or other instrument shall exceed 40 years.
(10) To lend money, invest and reinvest its funds in
accordance with the Public Funds Investment Act, and take
and hold real and personal property as security for the
payment of funds loaned or invested.
(11) To borrow money at such rate or rates of interest
as the Agency may determine, issue its notes, bonds, or
other obligations to evidence that indebtedness, and
secure any of its obligations by mortgage or pledge of its
real or personal property, machinery, equipment,
structures, fixtures, inventories, revenues, grants, and
other funds as provided or any interest therein, wherever
situated.
(12) To enter into agreements with the Illinois
Finance Authority to issue bonds whether or not the income
therefrom is exempt from federal taxation.

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(13) To procure insurance against any loss in
connection with its properties or operations in such
amount or amounts and from such insurers, including the
federal government, as it may deem necessary or desirable,
and to pay any premiums therefor.
(14) To negotiate and enter into agreements with
trustees or receivers appointed by United States
bankruptcy courts or federal district courts or in other
proceedings involving adjustment of debts and authorize
proceedings involving adjustment of debts and authorize
legal counsel for the Agency to appear in any such
proceedings.
(15) To file a petition under Chapter 9 of Title 11 of
the United States Bankruptcy Code or take other similar
action for the adjustment of its debts.
(16) To enter into management agreements for the
operation of any of the property or facilities owned by
the Agency.
(17) To enter into an agreement to transfer and to
transfer any land, facilities, fixtures, or equipment of
the Agency to one or more municipal electric systems,
governmental aggregators, or rural electric agencies or
cooperatives, for such consideration and upon such terms
as the Agency may determine to be in the best interest of
the residents of Illinois.
(18) To enter upon any lands and within any building

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whenever in its judgment it may be necessary for the
purpose of making surveys and examinations to accomplish
any purpose authorized by this Act.
(19) To maintain an office or offices at such place or
places in the State as it may determine.
(20) To request information, and to make any inquiry,
investigation, survey, or study that the Agency may deem
necessary to enable it effectively to carry out the
provisions of this Act.
(21) To accept and expend appropriations.
(22) To engage in any activity or operation that is
incidental to and in furtherance of efficient operation to
accomplish the Agency's purposes, including hiring
employees that the Director deems essential for the
operations of the Agency.
(23) To adopt, revise, amend, and repeal rules with
respect to its operations, properties, and facilities as
may be necessary or convenient to carry out the purposes
of this Act, subject to the provisions of the Illinois
Administrative Procedure Act and Sections 1-22 and 1-35 of
this Act.
(24) To establish and collect charges and fees as
described in this Act.
(25) To conduct competitive gasification feedstock
procurement processes to procure the feedstocks for the
clean coal SNG brownfield facility in accordance with the

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requirements of Section 1-78 of this Act.
(26) To review, revise, and approve sourcing
agreements and mediate and resolve disputes between gas
utilities and the clean coal SNG brownfield facility
pursuant to subsection (h-1) of Section 9-220 of the
Public Utilities Act.
(27) To request, review and accept proposals, execute
contracts, purchase renewable energy credits and otherwise
dedicate funds from the Illinois Power Agency Renewable
Energy Resources Fund to create and carry out the
objectives of the Illinois Solar for All Program in
accordance with Section 1-56 of this Act.
(28) To ensure Illinois residents and business benefit
from programs administered by the Agency and are properly
protected from any deceptive or misleading marketing
practices by participants in the Agency's programs and
procurements.
(c) In conducting the procurement of electricity or other
products, beginning January 1, 2022, the Agency shall not
procure any products or services from persons or organizations
that are in violation of the Displaced Energy Workers Bill of
Rights, as provided under the Energy Community Reinvestment
Act at the time of the procurement event or fail to comply the
labor standards established in subparagraph (Q) of paragraph
(1) of subsection (c) of Section 1-75.
(Source: P.A. 102-662, eff. 9-15-21.)

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Section 10. The Public Utilities Act is amended by
changing Sections 3-105, 8-103B, 16-111.5, 16-115, and 16-115D
and by adding Section 16-107.8 as follows:
(220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
Sec. 3-105. Public utility.
(a) "Public utility" means and includes, except where
otherwise expressly provided in this Section, every
corporation, company, limited liability company, association,
joint stock company or association, firm, partnership or
individual, their lessees, trustees, or receivers appointed by
any court whatsoever now or hereafter that owns, controls,
operates or manages, within this State, directly or
indirectly, for public use, any plant, equipment or property
used or to be used for or in connection with, or owns or
controls or seeks Commission approval to own or control any
franchise, license, permit or right to engage in:
(1) the production, storage, transmission, sale,
delivery or furnishing of heat, cold, power, electricity,
water, or light, except when used solely for
communications purposes;
(2) the disposal of sewerage; or
(3) the conveyance of oil or gas by pipe line.
(b) "Public utility" does not include, however:
(1) public utilities that are owned and operated by

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any political subdivision, public institution of higher
education or municipal corporation of this State, or
public utilities that are owned by such political
subdivision, public institution of higher education, or
municipal corporation and operated by any of its lessees
or operating agents;
(2) water companies which are purely mutual concerns,
having no rates or charges for services, but paying the
operating expenses by assessment upon the members of such
a company and no other person;
(3) electric cooperatives as defined in Section 3-119;
(4) the following natural gas cooperatives:
(A) residential natural gas cooperatives that are
not-for-profit corporations established for the
purpose of administering and operating, on a
cooperative basis, the furnishing of natural gas to
residences for the benefit of their members who are
residential consumers of natural gas. For entities
qualifying as residential natural gas cooperatives and
recognized by the Illinois Commerce Commission as
such, the State shall guarantee legally binding
contracts entered into by residential natural gas
cooperatives for the express purpose of acquiring
natural gas supplies for their members. The Illinois
Commerce Commission shall establish rules and
regulations providing for such guarantees. The total

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liability of the State in providing all such
guarantees shall not at any time exceed $1,000,000,
nor shall the State provide such a guarantee to a
residential natural gas cooperative for more than 3
consecutive years; and
(B) natural gas cooperatives that are
not-for-profit corporations operated for the purpose
of administering, on a cooperative basis, the
furnishing of natural gas for the benefit of their
members and that, prior to 90 days after the effective
date of this amendatory Act of the 94th General
Assembly, either had acquired or had entered into an
asset purchase agreement to acquire all or
substantially all of the operating assets of a public
utility or natural gas cooperative with the intention
of operating those assets as a natural gas
cooperative;
(5) sewage disposal companies which provide sewage
disposal services on a mutual basis without establishing
rates or charges for services, but paying the operating
expenses by assessment upon the members of the company and
no others;
(6) (blank);
(7) cogeneration facilities, small power production
facilities, and other qualifying facilities, as defined in
the Public Utility Regulatory Policies Act and regulations

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promulgated thereunder, except to the extent State
regulatory jurisdiction and action is required or
authorized by federal law, regulations, regulatory
decisions or the decisions of federal or State courts of
competent jurisdiction;
(8) the ownership or operation of a facility that
sells compressed natural gas at retail to the public for
use only as a motor vehicle fuel and the selling of
compressed natural gas at retail to the public for use
only as a motor vehicle fuel;
(9) alternative retail electric suppliers as defined
in Article XVI; and
(10) the Illinois Power Agency.
(c) An entity that furnishes the service of charging
electric vehicles does not and shall not be deemed to sell
electricity and is not and shall not be deemed a public utility
notwithstanding the basis on which the service is provided or
billed. If, however, the entity is otherwise deemed a public
utility under this Act, or is otherwise subject to regulation
under this Act, then that entity is not exempt from and remains
subject to the otherwise applicable provisions of this Act.
The installation, maintenance, and repair of an electric
vehicle charging station shall comply with the requirements of
subsection (a) of Section 16-128 and Section 16-128A of this
Act.
For purposes of this subsection, the term "electric

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vehicles" has the meaning ascribed to that term in Section 10
of the Electric Vehicle Act.
(Source: P.A. 97-1128, eff. 8-28-12.)
(220 ILCS 5/8-103B)
Sec. 8-103B. Energy efficiency and demand-response
measures.
(a) It is the policy of the State that electric utilities
are required to use cost-effective energy efficiency and
demand-response measures to reduce delivery load. Requiring
investment in cost-effective energy efficiency and
demand-response measures will reduce direct and indirect costs
to consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation,
transmission, and distribution infrastructure. It serves the
public interest to allow electric utilities to recover costs
for reasonably and prudently incurred expenditures for energy
efficiency and demand-response measures. As used in this
Section, "cost-effective" means that the measures satisfy the
total resource cost test. The low-income measures described in
subsection (c) of this Section shall not be required to meet
the total resource cost test. For purposes of this Section,
the terms "energy-efficiency", "demand-response", "electric
utility", and "total resource cost test" have the meanings set
forth in the Illinois Power Agency Act. "Black, indigenous,
and people of color" and "BIPOC" means people who are members

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of the groups described in subparagraphs (a) through (e) of
paragraph (A) of subsection (1) of Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
(a-5) This Section applies to electric utilities serving
more than 500,000 retail customers in the State for those
multi-year plans commencing after December 31, 2017.
(b) For purposes of this Section, electric utilities
subject to this Section that serve more than 3,000,000 retail
customers in the State shall be deemed to have achieved a
cumulative persisting annual savings of 6.6% from energy
efficiency measures and programs implemented during the period
beginning January 1, 2012 and ending December 31, 2017, which
percent is based on the deemed average weather normalized
sales of electric power and energy during calendar years 2014,
2015, and 2016 of 88,000,000 MWhs. For the purposes of this
subsection (b) and subsection (b-5), the 88,000,000 MWhs of
deemed electric power and energy sales shall be reduced by the
number of MWhs equal to the sum of the annual consumption of
customers that have opted out of subsections (a) through (j)
of this Section under paragraph (1) of subsection (l) of this
Section, as averaged across the calendar years 2014, 2015, and
2016. After 2017, the deemed value of cumulative persisting
annual savings from energy efficiency measures and programs
implemented during the period beginning January 1, 2012 and
ending December 31, 2017, shall be reduced each year, as

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follows, and the applicable value shall be applied to and
count toward the utility's achievement of the cumulative
persisting annual savings goals set forth in subsection (b-5):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings
for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings

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for the year ending December 31, 2029;
(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030;
(14) 1.3% deemed cumulative persisting annual savings
for the year ending December 31, 2031;
(15) 1.1% deemed cumulative persisting annual savings
for the year ending December 31, 2032;
(16) 0.9% deemed cumulative persisting annual savings
for the year ending December 31, 2033;
(17) 0.7% deemed cumulative persisting annual savings
for the year ending December 31, 2034;
(18) 0.5% deemed cumulative persisting annual savings
for the year ending December 31, 2035;
(19) 0.4% deemed cumulative persisting annual savings
for the year ending December 31, 2036;
(20) 0.3% deemed cumulative persisting annual savings
for the year ending December 31, 2037;
(21) 0.2% deemed cumulative persisting annual savings
for the year ending December 31, 2038;
(22) 0.1% deemed cumulative persisting annual savings
for the year ending December 31, 2039; and
(23) 0.0% deemed cumulative persisting annual savings
for the year ending December 31, 2040 and all subsequent
years.
For purposes of this Section, "cumulative persisting
annual savings" means the total electric energy savings in a

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given year from measures installed in that year or in previous
years, but no earlier than January 1, 2012, that are still
operational and providing savings in that year because the
measures have not yet reached the end of their useful lives.
(b-5) Beginning in 2018, electric utilities subject to
this Section that serve more than 3,000,000 retail customers
in the State shall achieve the following cumulative persisting
annual savings goals, as modified by subsection (f) of this
Section and as compared to the deemed baseline of 88,000,000
MWhs of electric power and energy sales set forth in
subsection (b), as reduced by the number of MWhs equal to the
sum of the annual consumption of customers that have opted out
of subsections (a) through (j) of this Section under paragraph
(1) of subsection (l) of this Section as averaged across the
calendar years 2014, 2015, and 2016, through the
implementation of energy efficiency measures during the
applicable year and in prior years, but no earlier than
January 1, 2012:
(1) 7.8% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 9.1% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 10.4% cumulative persisting annual savings for the
year ending December 31, 2020;
(4) 11.8% cumulative persisting annual savings for the
year ending December 31, 2021;

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(5) 13.1% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 14.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 15.7% cumulative persisting annual savings for the
year ending December 31, 2024;
(8) 17% cumulative persisting annual savings for the
year ending December 31, 2025;
(9) 17.9% cumulative persisting annual savings for the
year ending December 31, 2026;
(10) 18.8% cumulative persisting annual savings for
the year ending December 31, 2027;
(11) 19.7% cumulative persisting annual savings for
the year ending December 31, 2028;
(12) 20.6% cumulative persisting annual savings for
the year ending December 31, 2029; and
(13) 21.5% cumulative persisting annual savings for
the year ending December 31, 2030.
No later than December 31, 2021, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2031 through 2035. No later
than December 31, 2024, the Illinois Commerce Commission shall
establish additional cumulative persisting annual savings
goals for the years 2036 through 2040. The Commission shall
also establish additional cumulative persisting annual savings
goals every 5 years thereafter to ensure that utilities always

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have goals that extend at least 11 years into the future. The
cumulative persisting annual savings goals beyond the year
2030 shall increase by 0.9 percentage points per year, absent
a Commission decision to initiate a proceeding to consider
establishing goals that increase by more or less than that
amount. Such a proceeding must be conducted in accordance with
the procedures described in subsection (f) of this Section. If
such a proceeding is initiated, the cumulative persisting
annual savings goals established by the Commission through
that proceeding shall reflect the Commission's best estimate
of the maximum amount of additional savings that are forecast
to be cost-effectively achievable unless such best estimates
would result in goals that represent less than 0.5 percentage
point annual increases in total cumulative persisting annual
savings. The Commission may only establish goals that
represent less than 0.5 percentage point annual increases in
cumulative persisting annual savings if it can demonstrate,
based on clear and convincing evidence and through independent
analysis, that 0.5 percentage point increases are not
cost-effectively achievable. The Commission shall inform its
decision based on an energy efficiency potential study that
conforms to the requirements of this Section.
(b-10) For purposes of this Section, electric utilities
subject to this Section that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State
shall be deemed to have achieved a cumulative persisting

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annual savings of 6.6% from energy efficiency measures and
programs implemented during the period beginning January 1,
2012 and ending December 31, 2017, which is based on the deemed
average weather normalized sales of electric power and energy
during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
For the purposes of this subsection (b-10) and subsection
(b-15), the 36,900,000 MWhs of deemed electric power and
energy sales shall be reduced by the number of MWhs equal to
the sum of the annual consumption of customers that have opted
out of subsections (a) through (j) of this Section under
paragraph (1) of subsection (l) of this Section, as averaged
across the calendar years 2014, 2015, and 2016. After 2017,
the deemed value of cumulative persisting annual savings from
energy efficiency measures and programs implemented during the
period beginning January 1, 2012 and ending December 31, 2017,
shall be reduced each year, as follows, and the applicable
value shall be applied to and count toward the utility's
achievement of the cumulative persisting annual savings goals
set forth in subsection (b-15):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings

SB2552 - 22 - LRB103 31416 LNS 59082 b
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings
for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings
for the year ending December 31, 2029;
(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030;
(14) 1.3% deemed cumulative persisting annual savings
for the year ending December 31, 2031;
(15) 1.1% deemed cumulative persisting annual savings
for the year ending December 31, 2032;
(16) 0.9% deemed cumulative persisting annual savings
for the year ending December 31, 2033;
(17) 0.7% deemed cumulative persisting annual savings

SB2552 - 23 - LRB103 31416 LNS 59082 b
for the year ending December 31, 2034;
(18) 0.5% deemed cumulative persisting annual savings
for the year ending December 31, 2035;
(19) 0.4% deemed cumulative persisting annual savings
for the year ending December 31, 2036;
(20) 0.3% deemed cumulative persisting annual savings
for the year ending December 31, 2037;
(21) 0.2% deemed cumulative persisting annual savings
for the year ending December 31, 2038;
(22) 0.1% deemed cumulative persisting annual savings
for the year ending December 31, 2039; and
(23) 0.0% deemed cumulative persisting annual savings
for the year ending December 31, 2040 and all subsequent
years.
(b-15) Beginning in 2018, electric utilities subject to
this Section that serve less than 3,000,000 retail customers
but more than 500,000 retail customers in the State shall
achieve the following cumulative persisting annual savings
goals, as modified by subsection (b-20) and subsection (f) of
this Section and as compared to the deemed baseline as reduced
by the number of MWhs equal to the sum of the annual
consumption of customers that have opted out of subsections
(a) through (j) of this Section under paragraph (1) of
subsection (l) of this Section as averaged across the calendar
years 2014, 2015, and 2016, through the implementation of
energy efficiency measures during the applicable year and in

SB2552 - 24 - LRB103 31416 LNS 59082 b
prior years, but no earlier than January 1, 2012:
(1) 7.4% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 8.2% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 9.0% cumulative persisting annual savings for the
year ending December 31, 2020;
(4) 9.8% cumulative persisting annual savings for the
year ending December 31, 2021;
(5) 10.6% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 11.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 12.8% 12.2% cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 14.3% 13% cumulative persisting annual savings for
the year ending December 31, 2025;
(9) 15.7% 13.6% cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 17.2% 14.2% cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 18.6% 14.8% cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 20.1% 15.4% cumulative persisting annual savings
for the year ending December 31, 2029; and
(13) 21.5% 16% cumulative persisting annual savings

SB2552 - 25 - LRB103 31416 LNS 59082 b
for the year ending December 31, 2030.
No later than December 31, 2021, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2031 through 2035. No later
than December 31, 2024, the Illinois Commerce Commission shall
establish additional cumulative persisting annual savings
goals for the years 2036 through 2040. The Commission shall
also establish additional cumulative persisting annual savings
goals every 5 years thereafter to ensure that utilities always
have goals that extend at least 11 years into the future. The
cumulative persisting annual savings goals beyond the year
2030 shall increase by 0.9 0.6 percentage points per year,
absent a Commission decision to initiate a proceeding to
consider establishing goals that increase by more or less than
that amount. Such a proceeding must be conducted in accordance
with the procedures described in subsection (f) of this
Section. If such a proceeding is initiated, the cumulative
persisting annual savings goals established by the Commission
through that proceeding shall reflect the Commission's best
estimate of the maximum amount of additional savings that are
forecast to be cost-effectively achievable unless such best
estimates would result in goals that represent less than 0.5
0.4 percentage point annual increases in total cumulative
persisting annual savings. The Commission may only establish
goals that represent less than 0.5 0.4 percentage point annual
increases in cumulative persisting annual savings if it can

SB2552 - 26 - LRB103 31416 LNS 59082 b
demonstrate, based on clear and convincing evidence and
through independent analysis, that 0.5 0.4 percentage point
increases are not cost-effectively achievable. The Commission
shall inform its decision based on an energy efficiency
potential study that conforms to the requirements of this
Section.
(b-20) Each electric utility subject to this Section may
include cost-effective voltage optimization measures in its
plans submitted under subsections (f) and (g) of this Section,
and the costs incurred by a utility to implement the measures
under a Commission-approved plan shall be recovered under the
provisions of Article IX or Section 16-108.5 of this Act. For
purposes of this Section, the measure life of voltage
optimization measures shall be 15 years. The measure life
period is independent of the depreciation rate of the voltage
optimization assets deployed. Utilities may claim savings from
voltage optimization on circuits for more than 15 years if
they can demonstrate that they have made additional
investments necessary to enable voltage optimization savings
to continue beyond 15 years. Such demonstrations must be
subject to the review of independent evaluation.
Within 270 days after June 1, 2017 (the effective date of
Public Act 99-906), an electric utility that serves less than
3,000,000 retail customers but more than 500,000 retail
customers in the State shall file a plan with the Commission
that identifies the cost-effective voltage optimization

SB2552 - 27 - LRB103 31416 LNS 59082 b
investment the electric utility plans to undertake through
December 31, 2024. The Commission, after notice and hearing,
shall approve or approve with modification the plan within 120
days after the plan's filing and, in the order approving or
approving with modification the plan, the Commission shall
adjust the applicable cumulative persisting annual savings
goals set forth in subsection (b-15) to reflect any amount of
cost-effective energy savings approved by the Commission that
is greater than or less than the following cumulative
persisting annual savings values attributable to voltage
optimization for the applicable year:
(1) 0.0% of cumulative persisting annual savings for
the year ending December 31, 2018;
(2) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2019;
(3) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2020;
(4) 0.33% of cumulative persisting annual savings for
the year ending December 31, 2021;
(5) 0.5% of cumulative persisting annual savings for
the year ending December 31, 2022;
(6) 0.67% of cumulative persisting annual savings for
the year ending December 31, 2023;
(7) 0.83% of cumulative persisting annual savings for
the year ending December 31, 2024; and
(8) 1.0% of cumulative persisting annual savings for

SB2552 - 28 - LRB103 31416 LNS 59082 b
the year ending December 31, 2025 and all subsequent
years.
(b-25) In the event an electric utility jointly offers an
energy efficiency measure or program with a gas utility under
plans approved under this Section and Section 8-104 of this
Act, the electric utility may continue offering the program,
including the gas energy efficiency measures, in the event the
gas utility discontinues funding the program. In that event,
the energy savings value associated with such other fuels
shall be converted to electric energy savings on an equivalent
Btu basis for the premises. However, the electric utility
shall prioritize programs for low-income residential customers
to the extent practicable. An electric utility may recover the
costs of offering the gas energy efficiency measures under
this subsection (b-25).
For those energy efficiency measures or programs that save
both electricity and other fuels but are not jointly offered
with a gas utility under plans approved under this Section and
Section 8-104 or not offered with an affiliated gas utility
under paragraph (6) of subsection (f) of Section 8-104 of this
Act, the electric utility may count savings of fuels other
than electricity toward the achievement of its annual savings
goal, and the energy savings value associated with such other
fuels shall be converted to electric energy savings on an
equivalent Btu basis at the premises.
In no event shall more than 10% of each year's applicable

SB2552 - 29 - LRB103 31416 LNS 59082 b
annual total savings requirement as defined in paragraph (7.5)
of subsection (g) of this Section be met through savings of
fuels other than electricity.
(b-27) Beginning in 2022, an electric utility may offer
and promote measures that electrify space heating, water
heating, cooling, drying, cooking, industrial processes, and
other building and industrial end uses that would otherwise be
served by combustion of fossil fuel at the premises, provided
that the electrification measures reduce total energy
consumption at the premises. The electric utility may count
the reduction in energy consumption at the premises toward
achievement of its annual savings goals. The reduction in
energy consumption at the premises shall be calculated as the
difference between: (A) the reduction in Btu consumption of
fossil fuels as a result of electrification, converted to
kilowatt-hour equivalents by dividing by 3,412 Btus Btu's per
kilowatt hour; and (B) the increase in kilowatt hours of
electricity consumption resulting from the displacement of
fossil fuel consumption as a result of electrification. An
electric utility may recover the costs of offering and
promoting electrification measures under this subsection
(b-27).
In no event shall electrification savings counted toward
each year's applicable annual total savings requirement, as
defined in paragraph (7.5) of subsection (g) of this Section,
be greater than:

SB2552 - 30 - LRB103 31416 LNS 59082 b
(1) 5% per year for each year from 2022 through 2025;
(2) 10% per year for each year from 2026 through 2029;
and
(3) 15% per year for 2030 and all subsequent years.
In addition, a minimum of 25% of all electrification savings
counted toward a utility's applicable annual total savings
requirement must be from electrification of end uses in
low-income housing. The limitations on electrification savings
that may be counted toward a utility's annual savings goals
are separate from and in addition to the subsection (b-25)
limitations governing the counting of the other fuel savings
resulting from efficiency measures and programs.
As part of the annual informational filing to the
Commission that is required under paragraph (9) of subsection
(g) of this Section, each utility shall identify the specific
electrification measures offered under this subsection
subjection (b-27); the quantity of each electrification
measure that was installed by its customers; the average total
cost, average utility cost, average reduction in fossil fuel
consumption, and average increase in electricity consumption
associated with each electrification measure; the portion of
installations of each electrification measure that were in
low-income single-family housing, low-income multifamily
housing, non-low-income single-family housing, non-low-income
multifamily housing, commercial buildings, and industrial
facilities; and the quantity of savings associated with each

SB2552 - 31 - LRB103 31416 LNS 59082 b
measure category in each customer category that are being
counted toward the utility's applicable annual total savings
requirement. Prior to installing an electrification measure,
the utility shall provide a customer with an estimate of the
impact of the new measure on the customer's average monthly
electric bill and total annual energy expenses.
(c) Electric utilities shall be responsible for overseeing
the design, development, and filing of energy efficiency plans
with the Commission and may, as part of that implementation,
outsource various aspects of program development and
implementation. A minimum of 10%, for electric utilities that
serve more than 3,000,000 retail customers in the State, and a
minimum of 7%, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, of the utility's entire portfolio
funding level for a given year shall be used to procure
cost-effective energy efficiency measures from units of local
government, municipal corporations, school districts, public
housing, and community college districts, provided that a
minimum percentage of available funds shall be used to procure
energy efficiency from public housing, which percentage shall
be equal to public housing's share of public building energy
consumption.
The utilities shall also implement energy efficiency
measures targeted at low-income households, which, for
purposes of this Section, shall be defined as households at or

SB2552 - 32 - LRB103 31416 LNS 59082 b
below 80% of area median income, and expenditures to implement
the measures shall be no less than $40,000,000 per year for
electric utilities that serve more than 3,000,000 retail
customers in the State and no less than $13,000,000 per year
for electric utilities that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State.
The ratio of spending on efficiency programs targeted at
low-income multifamily buildings to spending on efficiency
programs targeted at low-income single-family buildings shall
be designed to achieve levels of savings from each building
type that are approximately proportional to the magnitude of
cost-effective lifetime savings potential in each building
type. Investment in low-income whole-building weatherization
programs shall constitute a minimum of 80% of a utility's
total budget specifically dedicated to serving low-income
customers.
The utilities shall work to bundle low-income energy
efficiency offerings with other programs that serve low-income
households to maximize the benefits going to these households.
The utilities shall market and implement low-income energy
efficiency programs in coordination with low-income assistance
programs, the Illinois Solar for All Program, and
weatherization whenever practicable. The program implementer
shall walk the customer through the enrollment process for any
programs for which the customer is eligible. The utilities
shall also pilot targeting customers with high arrearages,

SB2552 - 33 - LRB103 31416 LNS 59082 b
high energy intensity (ratio of energy usage divided by home
or unit square footage), or energy assistance programs with
energy efficiency offerings, and then track reduction in
arrearages as a result of the targeting. This targeting and
bundling of low-income energy programs shall be offered to
both low-income single-family and multifamily customers
(owners and residents).
The utilities shall invest in health and safety measures
appropriate and necessary for comprehensively weatherizing a
home or multifamily building, and shall implement a health and
safety fund of at least 15% of the total income-qualified
weatherization budget that shall be used for the purpose of
making grants for technical assistance, construction,
reconstruction, improvement, or repair of buildings to
facilitate their participation in the energy efficiency
programs targeted at low-income single-family and multifamily
households. These funds may also be used for the purpose of
making grants for technical assistance, construction,
reconstruction, improvement, or repair of the following
buildings to facilitate their participation in the energy
efficiency programs created by this Section: (1) buildings
that are owned or operated by registered 501(c)(3) public
charities; and (2) day care centers, day care homes, or group
day care homes, as defined under 89 Ill. Adm. Code Part 406,
407, or 408, respectively.
Each electric utility shall assess opportunities to

SB2552 - 34 - LRB103 31416 LNS 59082 b
implement cost-effective energy efficiency measures and
programs through a public housing authority or authorities
located in its service territory. If such opportunities are
identified, the utility shall propose such measures and
programs to address the opportunities. Expenditures to address
such opportunities shall be credited toward the minimum
procurement and expenditure requirements set forth in this
subsection (c).
Implementation of energy efficiency measures and programs
targeted at low-income households should be contracted, when
it is practicable, to independent third parties that have
demonstrated capabilities to serve such households, with a
preference for not-for-profit entities and government agencies
that have existing relationships with or experience serving
low-income communities in the State.
Each electric utility shall develop and implement
reporting procedures that address and assist in determining
the amount of energy savings that can be applied to the
low-income procurement and expenditure requirements set forth
in this subsection (c). Each electric utility shall also track
the types and quantities or volumes of insulation and air
sealing materials, and their associated energy saving
benefits, installed in energy efficiency programs targeted at
low-income single-family and multifamily households.
The electric utilities shall participate in a low-income
energy efficiency accountability committee ("the committee"),

SB2552 - 35 - LRB103 31416 LNS 59082 b
which will directly inform the design, implementation, and
evaluation of the low-income and public-housing energy
efficiency programs. The committee shall be comprised of the
electric utilities subject to the requirements of this
Section, the gas utilities subject to the requirements of
Section 8-104 of this Act, the utilities' low-income energy
efficiency implementation contractors, nonprofit
organizations, community action agencies, advocacy groups,
State and local governmental agencies, public-housing
organizations, and representatives of community-based
organizations, especially those living in or working with
environmental justice communities and BIPOC communities. The
committee shall be composed of 2 geographically differentiated
subcommittees: one for stakeholders in northern Illinois and
one for stakeholders in central and southern Illinois. The
subcommittees shall meet together at least twice per year.
There shall be one statewide leadership committee led by
and composed of community-based organizations that are
representative of BIPOC and environmental justice communities
and that includes equitable representation from BIPOC
communities. The leadership committee shall be composed of an
equal number of representatives from the 2 subcommittees. The
subcommittees shall address specific programs and issues, with
the leadership committee convening targeted workgroups as
needed. The leadership committee may elect to work with an
independent facilitator to solicit and organize feedback,

SB2552 - 36 - LRB103 31416 LNS 59082 b
recommendations and meeting participation from a wide variety
of community-based stakeholders. If a facilitator is used,
they shall be fair and responsive to the needs of all
stakeholders involved in the committee.
All committee meetings must be accessible, with rotating
locations if meetings are held in-person, virtual
participation options, and materials and agendas circulated in
advance.
There shall also be opportunities for direct input by
committee members outside of committee meetings, such as via
individual meetings, surveys, emails and calls, to ensure
robust participation by stakeholders with limited capacity and
ability to attend committee meetings. Committee meetings shall
emphasize opportunities to bundle and coordinate delivery of
low-income energy efficiency with other programs that serve
low-income communities, such as the Illinois Solar for All
Program and bill payment assistance programs. Meetings shall
include educational opportunities for stakeholders to learn
more about these additional offerings, and the committee shall
assist in figuring out the best methods for coordinated
delivery and implementation of offerings when serving
low-income communities. The committee shall directly and
equitably influence and inform utility low-income and
public-housing energy efficiency programs and priorities.
Participating utilities shall implement recommendations from
the committee whenever possible.

SB2552 - 37 - LRB103 31416 LNS 59082 b
Participating utilities shall track and report how input
from the committee has led to new approaches and changes in
their energy efficiency portfolios. This reporting shall occur
at committee meetings and in quarterly energy efficiency
reports to the Stakeholder Advisory Group and Illinois
Commerce Commission, and other relevant reporting mechanisms.
Participating utilities shall also report on relevant equity
data and metrics requested by the committee, such as energy
burden data, geographic, racial, and other relevant
demographic data on where programs are being delivered and
what populations programs are serving.
The Illinois Commerce Commission shall oversee and have
relevant staff participate in the committee. The committee
shall have a budget of 0.25% of each utility's entire
efficiency portfolio funding for a given year. The budget
shall be overseen by the Commission. The budget shall be used
to provide grants for community-based organizations serving on
the leadership committee, stipends for community-based
organizations participating in the committee, grants for
community-based organizations to do energy efficiency outreach
and education, and relevant meeting needs as determined by the
leadership committee. The education and outreach shall
include, but is not limited to, basic energy efficiency
education, information about low-income energy efficiency
programs, and information on the committee's purpose,
structure, and activities.

SB2552 - 38 - LRB103 31416 LNS 59082 b
(d) Notwithstanding any other provision of law to the
contrary, a utility providing approved energy efficiency
measures and, if applicable, demand-response measures in the
State shall be permitted to recover all reasonable and
prudently incurred costs of those measures from all retail
customers, except as provided in subsection (l) of this
Section, as follows, provided that nothing in this subsection
(d) permits the double recovery of such costs from customers:
(1) The utility may recover its costs through an
automatic adjustment clause tariff filed with and approved
by the Commission. The tariff shall be established outside
the context of a general rate case. Each year the
Commission shall initiate a review to reconcile any
amounts collected with the actual costs and to determine
the required adjustment to the annual tariff factor to
match annual expenditures. To enable the financing of the
incremental capital expenditures, including regulatory
assets, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, the utility's actual year-end
capital structure that includes a common equity ratio,
excluding goodwill, of up to and including 50% of the
total capital structure shall be deemed reasonable and
used to set rates.
(2) A utility may recover its costs through an energy
efficiency formula rate approved by the Commission under a

SB2552 - 39 - LRB103 31416 LNS 59082 b
filing under subsections (f) and (g) of this Section,
which shall specify the cost components that form the
basis of the rate charged to customers with sufficient
specificity to operate in a standardized manner and be
updated annually with transparent information that
reflects the utility's actual costs to be recovered during
the applicable rate year, which is the period beginning
with the first billing day of January and extending
through the last billing day of the following December.
The energy efficiency formula rate shall be implemented
through a tariff filed with the Commission under
subsections (f) and (g) of this Section that is consistent
with the provisions of this paragraph (2) and that shall
be applicable to all delivery services customers. The
Commission shall conduct an investigation of the tariff in
a manner consistent with the provisions of this paragraph
(2), subsections (f) and (g) of this Section, and the
provisions of Article IX of this Act to the extent they do
not conflict with this paragraph (2). The energy
efficiency formula rate approved by the Commission shall
remain in effect at the discretion of the utility and
shall do the following:
(A) Provide for the recovery of the utility's
actual costs incurred under this Section that are
prudently incurred and reasonable in amount consistent
with Commission practice and law. The sole fact that a

SB2552 - 40 - LRB103 31416 LNS 59082 b
cost differs from that incurred in a prior calendar
year or that an investment is different from that made
in a prior calendar year shall not imply the
imprudence or unreasonableness of that cost or
investment.
(B) Reflect the utility's actual year-end capital
structure for the applicable calendar year, excluding
goodwill, subject to a determination of prudence and
reasonableness consistent with Commission practice and
law. To enable the financing of the incremental
capital expenditures, including regulatory assets, for
electric utilities that serve less than 3,000,000
retail customers but more than 500,000 retail
customers in the State, a participating electric
utility's actual year-end capital structure that
includes a common equity ratio, excluding goodwill, of
up to and including 50% of the total capital structure
shall be deemed reasonable and used to set rates.
(C) Include a cost of equity, which shall be
calculated as the sum of the following:
(i) the average for the applicable calendar
year of the monthly average yields of 30-year U.S.
Treasury bonds published by the Board of Governors
of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and
(ii) 580 basis points.

SB2552 - 41 - LRB103 31416 LNS 59082 b
At such time as the Board of Governors of the
Federal Reserve System ceases to include the monthly
average yields of 30-year U.S. Treasury bonds in its
weekly H.15 Statistical Release or successor
publication, the monthly average yields of the U.S.
Treasury bonds then having the longest duration
published by the Board of Governors in its weekly H.15
Statistical Release or successor publication shall
instead be used for purposes of this paragraph (2).
(D) Permit and set forth protocols, subject to a
determination of prudence and reasonableness
consistent with Commission practice and law, for the
following:
(i) recovery of incentive compensation expense
that is based on the achievement of operational
metrics, including metrics related to budget
controls, outage duration and frequency, safety,
customer service, efficiency and productivity, and
environmental compliance; however, this protocol
shall not apply if such expense related to costs
incurred under this Section is recovered under
Article IX or Section 16-108.5 of this Act;
incentive compensation expense that is based on
net income or an affiliate's earnings per share
shall not be recoverable under the energy
efficiency formula rate;

SB2552 - 42 - LRB103 31416 LNS 59082 b
(ii) recovery of pension and other
post-employment benefits expense, provided that
such costs are supported by an actuarial study;
however, this protocol shall not apply if such
expense related to costs incurred under this
Section is recovered under Article IX or Section
16-108.5 of this Act;
(iii) recovery of existing regulatory assets
over the periods previously authorized by the
Commission;
(iv) as described in subsection (e),
amortization of costs incurred under this Section;
and
(v) projected, weather normalized billing
determinants for the applicable rate year.
(E) Provide for an annual reconciliation, as
described in paragraph (3) of this subsection (d),
less any deferred taxes related to the reconciliation,
with interest at an annual rate of return equal to the
utility's weighted average cost of capital, including
a revenue conversion factor calculated to recover or
refund all additional income taxes that may be payable
or receivable as a result of that return, of the energy
efficiency revenue requirement reflected in rates for
each calendar year, beginning with the calendar year
in which the utility files its energy efficiency

SB2552 - 43 - LRB103 31416 LNS 59082 b
formula rate tariff under this paragraph (2), with
what the revenue requirement would have been had the
actual cost information for the applicable calendar
year been available at the filing date.
The utility shall file, together with its tariff, the
projected costs to be incurred by the utility during the
rate year under the utility's multi-year plan approved
under subsections (f) and (g) of this Section, including,
but not limited to, the projected capital investment costs
and projected regulatory asset balances with
correspondingly updated depreciation and amortization
reserves and expense, that shall populate the energy
efficiency formula rate and set the initial rates under
the formula.
The Commission shall review the proposed tariff in
conjunction with its review of a proposed multi-year plan,
as specified in paragraph (5) of subsection (g) of this
Section. The review shall be based on the same evidentiary
standards, including, but not limited to, those concerning
the prudence and reasonableness of the costs incurred by
the utility, the Commission applies in a hearing to review
a filing for a general increase in rates under Article IX
of this Act. The initial rates shall take effect beginning
with the January monthly billing period following the
Commission's approval.
The tariff's rate design and cost allocation across

SB2552 - 44 - LRB103 31416 LNS 59082 b
customer classes shall be consistent with the utility's
automatic adjustment clause tariff in effect on June 1,
2017 (the effective date of Public Act 99-906); however,
the Commission may revise the tariff's rate design and
cost allocation in subsequent proceedings under paragraph
(3) of this subsection (d).
If the energy efficiency formula rate is terminated,
the then current rates shall remain in effect until such
time as the energy efficiency costs are incorporated into
new rates that are set under this subsection (d) or
Article IX of this Act, subject to retroactive rate
adjustment, with interest, to reconcile rates charged with
actual costs.
(3) The provisions of this paragraph (3) shall only
apply to an electric utility that has elected to file an
energy efficiency formula rate under paragraph (2) of this
subsection (d). Subsequent to the Commission's issuance of
an order approving the utility's energy efficiency formula
rate structure and protocols, and initial rates under
paragraph (2) of this subsection (d), the utility shall
file, on or before June 1 of each year, with the Chief
Clerk of the Commission its updated cost inputs to the
energy efficiency formula rate for the applicable rate
year and the corresponding new charges, as well as the
information described in paragraph (9) of subsection (g)
of this Section. Each such filing shall conform to the

SB2552 - 45 - LRB103 31416 LNS 59082 b
following requirements and include the following
information:
(A) The inputs to the energy efficiency formula
rate for the applicable rate year shall be based on the
projected costs to be incurred by the utility during
the rate year under the utility's multi-year plan
approved under subsections (f) and (g) of this
Section, including, but not limited to, projected
capital investment costs and projected regulatory
asset balances with correspondingly updated
depreciation and amortization reserves and expense.
The filing shall also include a reconciliation of the
energy efficiency revenue requirement that was in
effect for the prior rate year (as set by the cost
inputs for the prior rate year) with the actual
revenue requirement for the prior rate year
(determined using a year-end rate base) that uses
amounts reflected in the applicable FERC Form 1 that
reports the actual costs for the prior rate year. Any
over-collection or under-collection indicated by such
reconciliation shall be reflected as a credit against,
or recovered as an additional charge to, respectively,
with interest calculated at a rate equal to the
utility's weighted average cost of capital approved by
the Commission for the prior rate year, the charges
for the applicable rate year. Such over-collection or

SB2552 - 46 - LRB103 31416 LNS 59082 b
under-collection shall be adjusted to remove any
deferred taxes related to the reconciliation, for
purposes of calculating interest at an annual rate of
return equal to the utility's weighted average cost of
capital approved by the Commission for the prior rate
year, including a revenue conversion factor calculated
to recover or refund all additional income taxes that
may be payable or receivable as a result of that
return. Each reconciliation shall be certified by the
participating utility in the same manner that FERC
Form 1 is certified. The filing shall also include the
charge or credit, if any, resulting from the
calculation required by subparagraph (E) of paragraph
(2) of this subsection (d).
Notwithstanding any other provision of law to the
contrary, the intent of the reconciliation is to
ultimately reconcile both the revenue requirement
reflected in rates for each calendar year, beginning
with the calendar year in which the utility files its
energy efficiency formula rate tariff under paragraph
(2) of this subsection (d), with what the revenue
requirement determined using a year-end rate base for
the applicable calendar year would have been had the
actual cost information for the applicable calendar
year been available at the filing date.
For purposes of this Section, "FERC Form 1" means

SB2552 - 47 - LRB103 31416 LNS 59082 b
the Annual Report of Major Electric Utilities,
Licensees and Others that electric utilities are
required to file with the Federal Energy Regulatory
Commission under the Federal Power Act, Sections 3,
4(a), 304 and 209, modified as necessary to be
consistent with 83 Ill. Adm. Admin. Code Part 415 as of
May 1, 2011. Nothing in this Section is intended to
allow costs that are not otherwise recoverable to be
recoverable by virtue of inclusion in FERC Form 1.
(B) The new charges shall take effect beginning on
the first billing day of the following January billing
period and remain in effect through the last billing
day of the next December billing period regardless of
whether the Commission enters upon a hearing under
this paragraph (3).
(C) The filing shall include relevant and
necessary data and documentation for the applicable
rate year. Normalization adjustments shall not be
required.
Within 45 days after the utility files its annual
update of cost inputs to the energy efficiency formula
rate, the Commission shall with reasonable notice,
initiate a proceeding concerning whether the projected
costs to be incurred by the utility and recovered during
the applicable rate year, and that are reflected in the
inputs to the energy efficiency formula rate, are

SB2552 - 48 - LRB103 31416 LNS 59082 b
consistent with the utility's approved multi-year plan
under subsections (f) and (g) of this Section and whether
the costs incurred by the utility during the prior rate
year were prudent and reasonable. The Commission shall
also have the authority to investigate the information and
data described in paragraph (9) of subsection (g) of this
Section, including the proposed adjustment to the
utility's return on equity component of its weighted
average cost of capital. During the course of the
proceeding, each objection shall be stated with
particularity and evidence provided in support thereof,
after which the utility shall have the opportunity to
rebut the evidence. Discovery shall be allowed consistent
with the Commission's Rules of Practice, which Rules of
Practice shall be enforced by the Commission or the
assigned administrative law judge. The Commission shall
apply the same evidentiary standards, including, but not
limited to, those concerning the prudence and
reasonableness of the costs incurred by the utility,
during the proceeding as it would apply in a proceeding to
review a filing for a general increase in rates under
Article IX of this Act. The Commission shall not, however,
have the authority in a proceeding under this paragraph
(3) to consider or order any changes to the structure or
protocols of the energy efficiency formula rate approved
under paragraph (2) of this subsection (d). In a

SB2552 - 49 - LRB103 31416 LNS 59082 b
proceeding under this paragraph (3), the Commission shall
enter its order no later than the earlier of 195 days after
the utility's filing of its annual update of cost inputs
to the energy efficiency formula rate or December 15. The
utility's proposed return on equity calculation, as
described in paragraphs (7) through (9) of subsection (g)
of this Section, shall be deemed the final, approved
calculation on December 15 of the year in which it is filed
unless the Commission enters an order on or before
December 15, after notice and hearing, that modifies such
calculation consistent with this Section. The Commission's
determinations of the prudence and reasonableness of the
costs incurred, and determination of such return on equity
calculation, for the applicable calendar year shall be
final upon entry of the Commission's order and shall not
be subject to reopening, reexamination, or collateral
attack in any other Commission proceeding, case, docket,
order, rule, or regulation; however, nothing in this
paragraph (3) shall prohibit a party from petitioning the
Commission to rehear or appeal to the courts the order
under the provisions of this Act.
(e) Beginning on June 1, 2017 (the effective date of
Public Act 99-906), a utility subject to the requirements of
this Section may elect to defer, as a regulatory asset, up to
the full amount of its expenditures incurred under this
Section for each annual period, including, but not limited to,

SB2552 - 50 - LRB103 31416 LNS 59082 b
any expenditures incurred above the funding level set by
subsection (f) of this Section for a given year. The total
expenditures deferred as a regulatory asset in a given year
shall be amortized and recovered over a period that is equal to
the weighted average of the energy efficiency measure lives
implemented for that year that are reflected in the regulatory
asset. The unamortized balance shall be recognized as of
December 31 for a given year. The utility shall also earn a
return on the total of the unamortized balances of all of the
energy efficiency regulatory assets, less any deferred taxes
related to those unamortized balances, at an annual rate equal
to the utility's weighted average cost of capital that
includes, based on a year-end capital structure, the utility's
actual cost of debt for the applicable calendar year and a cost
of equity, which shall be calculated as the sum of the (i) the
average for the applicable calendar year of the monthly
average yields of 30-year U.S. Treasury bonds published by the
Board of Governors of the Federal Reserve System in its weekly
H.15 Statistical Release or successor publication; and (ii)
580 basis points, including a revenue conversion factor
calculated to recover or refund all additional income taxes
that may be payable or receivable as a result of that return.
Capital investment costs shall be depreciated and recovered
over their useful lives consistent with generally accepted
accounting principles. The weighted average cost of capital
shall be applied to the capital investment cost balance, less

SB2552 - 51 - LRB103 31416 LNS 59082 b
any accumulated depreciation and accumulated deferred income
taxes, as of December 31 for a given year.
When an electric utility creates a regulatory asset under
the provisions of this Section, the costs are recovered over a
period during which customers also receive a benefit which is
in the public interest. Accordingly, it is the intent of the
General Assembly that an electric utility that elects to
create a regulatory asset under the provisions of this Section
shall recover all of the associated costs as set forth in this
Section. After the Commission has approved the prudence and
reasonableness of the costs that comprise the regulatory
asset, the electric utility shall be permitted to recover all
such costs, and the value and recoverability through rates of
the associated regulatory asset shall not be limited, altered,
impaired, or reduced.
(f) Beginning in 2017, each electric utility shall file an
energy efficiency plan with the Commission to meet the energy
efficiency standards for the next applicable multi-year period
beginning January 1 of the year following the filing,
according to the schedule set forth in paragraphs (1) through
(3) of this subsection (f). If a utility does not file such a
plan on or before the applicable filing deadline for the plan,
it shall face a penalty of $100,000 per day until the plan is
filed.
(1) No later than 30 days after June 1, 2017 (the
effective date of Public Act 99-906), each electric

SB2552 - 52 - LRB103 31416 LNS 59082 b
utility shall file a 4-year energy efficiency plan
commencing on January 1, 2018 that is designed to achieve
the cumulative persisting annual savings goals specified
in paragraphs (1) through (4) of subsection (b-5) of this
Section or in paragraphs (1) through (4) of subsection
(b-15) of this Section, as applicable, through
implementation of energy efficiency measures; however, the
goals may be reduced if the utility's expenditures are
limited pursuant to subsection (m) of this Section or, for
a utility that serves less than 3,000,000 retail
customers, if each of the following conditions are met:
(A) the plan's analysis and forecasts of the utility's
ability to acquire energy savings demonstrate that
achievement of such goals is not cost effective; and (B)
the amount of energy savings achieved by the utility as
determined by the independent evaluator for the most
recent year for which savings have been evaluated
preceding the plan filing was less than the average annual
amount of savings required to achieve the goals for the
applicable 4-year plan period. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan

SB2552 - 53 - LRB103 31416 LNS 59082 b
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
(2) No later than March 1, 2021, each electric utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2022 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(5) through (8) of subsection (b-5) of this Section or in
paragraphs (5) through (8) of subsection (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
either (1) clear and convincing evidence demonstrates,
through independent analysis, that the expenditure limits
in subsection (m) of this Section preclude full
achievement of the goals or (2) each of the following
conditions are met: (A) the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate by clear and convincing evidence and through
independent analysis that achievement of such goals is not
cost effective; and (B) the amount of energy savings
achieved by the utility as determined by the independent
evaluator for the most recent year for which savings have
been evaluated preceding the plan filing was less than the
average annual amount of savings required to achieve the
goals for the applicable 4-year plan period. If there is
not clear and convincing evidence that achieving the

SB2552 - 54 - LRB103 31416 LNS 59082 b
savings goals specified in paragraph (b-5) or (b-15) of
this Section is possible both cost-effectively and within
the expenditure limits in subsection (m), such savings
goals shall not be reduced. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
(3) No later than March 1, 2025, each electric utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2026 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(9) through (12) of subsection (b-5) of this Section or in
paragraphs (9) through (12) of subsection (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
either (1) clear and convincing evidence demonstrates,
through independent analysis, that the expenditure limits
in subsection (m) of this Section preclude full
achievement of the goals or (2) each of the following
conditions are met: (A) the plan's analysis and forecasts

SB2552 - 55 - LRB103 31416 LNS 59082 b
of the utility's ability to acquire energy savings
demonstrate by clear and convincing evidence and through
independent analysis that achievement of such goals is not
cost effective; and (B) the amount of energy savings
achieved by the utility as determined by the independent
evaluator for the most recent year for which savings have
been evaluated preceding the plan filing was less than the
average annual amount of savings required to achieve the
goals for the applicable 4-year plan period. If there is
not clear and convincing evidence that achieving the
savings goals specified in paragraphs (b-5) or (b-15) of
this Section is possible both cost-effectively and within
the expenditure limits in subsection (m), such savings
goals shall not be reduced. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
(4) No later than March 1, 2029, and every 4 years
thereafter, each electric utility shall file a 4-year
energy efficiency plan commencing on January 1, 2030, and

SB2552 - 56 - LRB103 31416 LNS 59082 b
every 4 years thereafter, respectively, that is designed
to achieve the cumulative persisting annual savings goals
established by the Illinois Commerce Commission pursuant
to direction of subsections (b-5) and (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
either (1) clear and convincing evidence and independent
analysis demonstrates that the expenditure limits in
subsection (m) of this Section preclude full achievement
of the goals or (2) each of the following conditions are
met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate by
clear and convincing evidence and through independent
analysis that achievement of such goals is not
cost-effective; and (B) the amount of energy savings
achieved by the utility as determined by the independent
evaluator for the most recent year for which savings have
been evaluated preceding the plan filing was less than the
average annual amount of savings required to achieve the
goals for the applicable 4-year plan period. If there is
not clear and convincing evidence that achieving the
savings goals specified in paragraphs (b-5) or (b-15) of
this Section is possible both cost-effectively and within
the expenditure limits in subsection (m), such savings
goals shall not be reduced. Except as provided in
subsection (m) of this Section, annual increases in

SB2552 - 57 - LRB103 31416 LNS 59082 b
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
Each utility's plan shall set forth the utility's
proposals to meet the energy efficiency standards identified
in subsection (b-5) or (b-15), as applicable and as such
standards may have been modified under this subsection (f),
taking into account the unique circumstances of the utility's
service territory. For those plans commencing on January 1,
2018, the Commission shall seek public comment on the
utility's plan and shall issue an order approving or
disapproving each plan no later than 105 days after June 1,
2017 (the effective date of Public Act 99-906). For those
plans commencing after December 31, 2021, the Commission shall
seek public comment on the utility's plan and shall issue an
order approving or disapproving each plan within 6 months
after its submission. If the Commission disapproves a plan,
the Commission shall, within 30 days, describe in detail the
reasons for the disapproval and describe a path by which the
utility may file a revised draft of the plan to address the
Commission's concerns satisfactorily. If the utility does not

SB2552 - 58 - LRB103 31416 LNS 59082 b
refile with the Commission within 60 days, the utility shall
be subject to penalties at a rate of $100,000 per day until the
plan is filed. This process shall continue, and penalties
shall accrue, until the utility has successfully filed a
portfolio of energy efficiency and demand-response measures.
Penalties shall be deposited into the Energy Efficiency Trust
Fund.
(g) In submitting proposed plans and funding levels under
subsection (f) of this Section to meet the savings goals
identified in subsection (b-5) or (b-15) of this Section, as
applicable, the utility shall:
(1) Demonstrate that its proposed energy efficiency
measures will achieve the applicable requirements that are
identified in subsection (b-5) or (b-15) of this Section,
as modified by subsection (f) of this Section.
(2) (Blank).
(2.5) Demonstrate consideration of program options for
(A) advancing new building codes, appliance standards, and
municipal regulations governing existing and new building
efficiency improvements and (B) supporting efforts to
improve compliance with new building codes, appliance
standards and municipal regulations, as potentially
cost-effective means of acquiring energy savings to count
toward savings goals.
(3) Demonstrate that its overall portfolio of
measures, not including low-income programs described in

SB2552 - 59 - LRB103 31416 LNS 59082 b
subsection (c) of this Section, is cost-effective using
the total resource cost test or complies with paragraphs
(1) through (3) of subsection (f) of this Section and
represents a diverse cross-section of opportunities for
customers of all rate classes, other than those customers
described in subsection (l) of this Section, to
participate in the programs. Individual measures need not
be cost effective.
(3.5) Demonstrate that the utility's plan integrates
the delivery of energy efficiency programs with natural
gas efficiency programs, programs promoting distributed
solar, programs promoting demand response and other
efforts to address bill payment issues, including, but not
limited to, LIHEAP and the Percentage of Income Payment
Plan, to the extent such integration is practical and has
the potential to enhance customer engagement, minimize
market confusion, or reduce administrative costs.
(4) Present a third-party energy efficiency
implementation program subject to the following
requirements:
(A) beginning with the year commencing January 1,
2019, electric utilities that serve more than
3,000,000 retail customers in the State shall fund
third-party energy efficiency programs in an amount
that is no less than $25,000,000 per year, and
electric utilities that serve less than 3,000,000

SB2552 - 60 - LRB103 31416 LNS 59082 b
retail customers but more than 500,000 retail
customers in the State shall fund third-party energy
efficiency programs in an amount that is no less than
$8,350,000 per year;
(B) during 2018, the utility shall conduct a
solicitation process for purposes of requesting
proposals from third-party vendors for those
third-party energy efficiency programs to be offered
during one or more of the years commencing January 1,
2019, January 1, 2020, and January 1, 2021; for those
multi-year plans commencing on January 1, 2022 and
January 1, 2026, the utility shall conduct a
solicitation process during 2021 and 2025,
respectively, for purposes of requesting proposals
from third-party vendors for those third-party energy
efficiency programs to be offered during one or more
years of the respective multi-year plan period; for
each solicitation process, the utility shall identify
the sector, technology, or geographical area for which
it is seeking requests for proposals; the solicitation
process must be either for programs that fill gaps in
the utility's program portfolio and for programs that
target low-income customers, business sectors,
building types, geographies, or other specific parts
of its customer base with initiatives that would be
more effective at reaching these customer segments

SB2552 - 61 - LRB103 31416 LNS 59082 b
than the utilities' programs filed in its energy
efficiency plans;
(C) the utility shall propose the bidder
qualifications, performance measurement process, and
contract structure, which must include a performance
payment mechanism and general terms and conditions;
the proposed qualifications, process, and structure
shall be subject to Commission approval; and
(D) the utility shall retain an independent third
party to score the proposals received through the
solicitation process described in this paragraph (4),
rank them according to their cost per lifetime
kilowatt-hours saved, and assemble the portfolio of
third-party programs.
The electric utility shall recover all costs
associated with Commission-approved, third-party
administered programs regardless of the success of those
programs.
(4.5) Implement cost-effective demand-response
measures to reduce peak demand by 0.1% over the prior year
for eligible retail customers, as defined in Section
16-111.5 of this Act, and for customers that elect hourly
service from the utility pursuant to Section 16-107 of
this Act, provided those customers have not been declared
competitive. This requirement continues until December 31,
2026.

SB2552 - 62 - LRB103 31416 LNS 59082 b
(5) Include a proposed or revised cost-recovery tariff
mechanism, as provided for under subsection (d) of this
Section, to fund the proposed energy efficiency and
demand-response measures and to ensure the recovery of the
prudently and reasonably incurred costs of
Commission-approved programs.
(6) Provide for an annual independent evaluation of
the performance of the cost-effectiveness of the utility's
portfolio of measures, as well as a full review of the
multi-year plan results of the broader net program impacts
and, to the extent practical, for adjustment of the
measures on a going-forward basis as a result of the
evaluations. The resources dedicated to evaluation shall
not exceed 3% of portfolio resources in any given year.
(7) For electric utilities that serve more than
500,000 3,000,000 retail customers in the State:
(A) Through December 31, 2025, provide for an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility

SB2552 - 63 - LRB103 31416 LNS 59082 b
achieved no more than 75% of such goal. If the
utility achieved more than 75% of the applicable
annual incremental goal but less than 100% of such
goal, then the return on equity component shall be
reduced by 8 basis points for each percent by
which the utility failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility
achieved at least 125% of such goal. If the
utility achieved more than 100% of the applicable
annual incremental goal but less than 125% of such
goal, then the return on equity component shall be
increased by 8 basis points for each percent by
which the utility achieved above the goal. If the
applicable annual incremental goal was reduced
under paragraph paragraphs (1) or (2) of
subsection (f) of this Section, then the following
adjustments shall be made to the calculations
described in this item (ii):
(aa) the calculation for determining
achievement that is at least 125% of the
applicable annual incremental goal shall use

SB2552 - 64 - LRB103 31416 LNS 59082 b
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 125% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 8 basis point value shall
also be modified, as necessary, so that the
200 basis points are evenly apportioned among
each percentage point value between 100% and
125% achievement.
(B) For the period January 1, 2026 through
December 31, 2029 and in all subsequent 4-year
periods, provide for an adjustment to the return on
equity component of the utility's weighted average
cost of capital calculated under subsection (d) of
this Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility

SB2552 - 65 - LRB103 31416 LNS 59082 b
achieved no more than 66% of such goal. If the
utility achieved more than 66% of the applicable
annual incremental goal but less than 100% of such
goal, then the return on equity component shall be
reduced by 6 basis points for each percent by
which the utility failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility
achieved at least 134% of such goal. If the
utility achieved more than 100% of the applicable
annual incremental goal but less than 134% of such
goal, then the return on equity component shall be
increased by 6 basis points for each percent by
which the utility achieved above the goal. If the
applicable annual incremental goal was reduced
under paragraph (3) of subsection (f) of this
Section, then the following adjustments shall be
made to the calculations described in this item
(ii):
(aa) the calculation for determining
achievement that is at least 134% of the
applicable annual incremental goal shall use

SB2552 - 66 - LRB103 31416 LNS 59082 b
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 134% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 134%
achievement. The 6 basis point value shall
also be modified, as necessary, so that the
200 basis points are evenly apportioned among
each percentage point value between 100% and
134% achievement.
(C) Notwithstanding the provisions of
subparagraphs (A) and (B) of this paragraph (7), if
the applicable annual incremental goal for an electric
utility is ever less than 0.6% of deemed average
weather normalized sales of electric power and energy
during calendar years 2014, 2015, and 2016, an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section shall be made as
follows:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting

SB2552 - 67 - LRB103 31416 LNS 59082 b
annual savings that is less than would have been
achieved had the applicable annual incremental
goal been achieved, then the return on equity
component shall be reduced by a maximum of 200
basis points if the utility achieved no more than
75% of its applicable annual total savings
requirement as defined in paragraph (7.5) of this
subsection. If the utility achieved more than 75%
of the applicable annual total savings requirement
but less than 100% of such goal, then the return on
equity component shall be reduced by 8 basis
points for each percent by which the utility
failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than would have been
achieved had the applicable annual incremental
goal been achieved, then the return on equity
component shall be increased by a maximum of 200
basis points if the utility achieved at least 125%
of its applicable annual total savings
requirement. If the utility achieved more than
100% of the applicable annual total savings
requirement but less than 125% of such goal, then
the return on equity component shall be increased
by 8 basis points for each percent by which the

SB2552 - 68 - LRB103 31416 LNS 59082 b
utility achieved above the applicable annual total
savings requirement. If the applicable annual
incremental goal was reduced under paragraph (1)
or (2) of subsection (f) of this Section, then the
following adjustments shall be made to the
calculations described in this item (ii):
(aa) the calculation for determining
achievement that is at least 125% of the
applicable annual total savings requirement
shall use the unreduced applicable annual
incremental goal to set the value; and
(bb) the calculation for determining
achievement that is less than 125% but more
than 100% of the applicable annual total
savings requirement shall use the reduced
applicable annual incremental goal to set the
value for 100% achievement of the goal and
shall use the unreduced goal to set the value
for 125% achievement. The 8 basis point value
shall also be modified, as necessary, so that
the 200 basis points are evenly apportioned
among each percentage point value between 100%
and 125% achievement.
(7.5) For purposes of this Section, the term
"applicable annual incremental goal" means the difference
between the cumulative persisting annual savings goal for

SB2552 - 69 - LRB103 31416 LNS 59082 b
the calendar year that is the subject of the independent
evaluator's determination and the cumulative persisting
annual savings goal for the immediately preceding calendar
year, as such goals are defined in subsections (b-5) and
(b-15) of this Section and as these goals may have been
modified as provided for under subsection (b-20) and
paragraphs (1) through (3) of subsection (f) of this
Section. Under subsections (b), (b-5), (b-10), and (b-15)
of this Section, a utility must first replace energy
savings from measures that have expired before any
progress towards achievement of its applicable annual
incremental goal may be counted. Savings may expire
because measures installed in previous years have reached
the end of their lives, because measures installed in
previous years are producing lower savings in the current
year than in the previous year, or for other reasons
identified by independent evaluators. Notwithstanding
anything else set forth in this Section, the difference
between the actual annual incremental savings achieved in
any given year, including the replacement of energy
savings that have expired, and the applicable annual
incremental goal shall not affect adjustments to the
return on equity for subsequent calendar years under this
subsection (g).
In this Section, "applicable annual total savings
requirement" means the total amount of new annual savings

SB2552 - 70 - LRB103 31416 LNS 59082 b
that the utility must achieve in any given year to achieve
the applicable annual incremental goal. This is equal to
the applicable annual incremental goal plus the total new
annual savings that are required to replace savings that
expired in or at the end of the previous year.
(8) (Blank). For electric utilities that serve less
than 3,000,000 retail customers but more than 500,000
retail customers in the State:
(A) Through December 31, 2025, the applicable
annual incremental goal shall be compared to the
annual incremental savings as determined by the
independent evaluator.
(i) The return on equity component shall be
reduced by 8 basis points for each percent by
which the utility did not achieve 84.4% of the
applicable annual incremental goal.
(ii) The return on equity component shall be
increased by 8 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased if the annual
incremental savings as determined by the
independent evaluator is greater than 84.4% of the
applicable annual incremental goal and less than
100% of the applicable annual incremental goal.

SB2552 - 71 - LRB103 31416 LNS 59082 b
(iv) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (A).
(B) For the period of January 1, 2026 through
December 31, 2029 and in all subsequent 4-year
periods, the applicable annual incremental goal shall
be compared to the annual incremental savings as
determined by the independent evaluator.
(i) The return on equity component shall be
reduced by 6 basis points for each percent by
which the utility did not achieve 100% of the
applicable annual incremental goal.
(ii) The return on equity component shall be
increased by 6 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (B).
(C) Notwithstanding provisions in subparagraphs
(A) and (B) of paragraph (7) of this subsection, if the
applicable annual incremental goal for an electric
utility is ever less than 0.6% of deemed average
weather normalized sales of electric power and energy

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during calendar years 2014, 2015 and 2016, an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section shall be made as
follows:
(i) The return on equity component shall be
reduced by 8 basis points for each percent by
which the utility did not achieve 100% of the
applicable annual total savings requirement.
(ii) The return on equity component shall be
increased by 8 basis points for each percent by
which the utility exceeded 100% of the applicable
annual total savings requirement.
(iii) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (C).
(D) If the applicable annual incremental goal was
reduced under paragraph (1), (2), (3), or (4) of
subsection (f) of this Section, then the following
adjustments shall be made to the calculations
described in subparagraphs (A), (B), and (C) of this
paragraph (8):
(i) The calculation for determining
achievement that is at least 125% or 134%, as
applicable, of the applicable annual incremental

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goal or the applicable annual total savings
requirement, as applicable, shall use the
unreduced applicable annual incremental goal to
set the value.
(ii) For the period through December 31, 2025,
the calculation for determining achievement that
is less than 125% but more than 100% of the
applicable annual incremental goal or the
applicable annual total savings requirement, as
applicable, shall use the reduced applicable
annual incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 8 basis point value shall also be
modified, as necessary, so that the 200 basis
points are evenly apportioned among each
percentage point value between 100% and 125%
achievement.
(iii) For the period of January 1, 2026
through December 31, 2029 and all subsequent
4-year periods, the calculation for determining
achievement that is less than 125% or 134%, as
applicable, but more than 100% of the applicable
annual incremental goal or the applicable annual
total savings requirement, as applicable, shall
use the reduced applicable annual incremental goal

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to set the value for 100% achievement of the goal
and shall use the unreduced goal to set the value
for 125% achievement. The 6 basis-point value or 8
basis-point value, as applicable, shall also be
modified, as necessary, so that the 200 basis
points are evenly apportioned among each
percentage point value between 100% and 125% or
between 100% and 134% achievement, as applicable.
(9) The utility shall submit the energy savings data
to the independent evaluator no later than 30 days after
the close of the plan year. The independent evaluator
shall determine the cumulative persisting annual savings
for a given plan year, as well as an estimate of job
impacts and other macroeconomic impacts of the efficiency
programs for that year, no later than 120 days after the
close of the plan year. The utility shall submit an
informational filing to the Commission no later than 160
days after the close of the plan year that attaches the
independent evaluator's final report identifying the
cumulative persisting annual savings for the year and
calculates, under paragraph (7) or (8) of this subsection
(g), as applicable, any resulting change to the utility's
return on equity component of the weighted average cost of
capital applicable to the next plan year beginning with
the January monthly billing period and extending through
the December monthly billing period. However, if the

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utility recovers the costs incurred under this Section
under paragraphs (2) and (3) of subsection (d) of this
Section, then the utility shall not be required to submit
such informational filing, and shall instead submit the
information that would otherwise be included in the
informational filing as part of its filing under paragraph
(3) of such subsection (d) that is due on or before June 1
of each year.
For those utilities that must submit the informational
filing, the Commission may, on its own motion or by
petition, initiate an investigation of such filing,
provided, however, that the utility's proposed return on
equity calculation shall be deemed the final, approved
calculation on December 15 of the year in which it is filed
unless the Commission enters an order on or before
December 15, after notice and hearing, that modifies such
calculation consistent with this Section.
The adjustments to the return on equity component
described in paragraph paragraphs (7) and (8) of this
subsection (g) shall be applied as described in such
paragraphs through a separate tariff mechanism, which
shall be filed by the utility under subsections (f) and
(g) of this Section.
(9.5) The utility must demonstrate how it will ensure
that program implementation contractors and energy
efficiency installation vendors will promote workforce

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equity and quality jobs.
(9.6) Utilities shall collect data necessary to ensure
compliance with paragraph (9.5) no less than quarterly and
shall communicate progress toward compliance with
paragraph (9.5) to program implementation contractors and
energy efficiency installation vendors no less than
quarterly. Utilities shall work with relevant vendors,
providing education, training, and other resources needed
to ensure compliance and, where necessary, adjusting or
terminating work with vendors that cannot assist with
compliance.
(10) Utilities required to implement efficiency
programs under subsections (b-5) and (b-10) shall report
annually to the Illinois Commerce Commission and the
General Assembly on how hiring, contracting, job training,
and other practices related to its energy efficiency
programs enhance the diversity of vendors working on such
programs. These reports must include data on vendor and
employee diversity, including data on the implementation
of paragraphs (9.5) and (9.6). If the utility is not
meeting the requirements of paragraphs (9.5) and (9.6),
the utility shall submit a plan to adjust their activities
so that they meet the requirements of paragraphs (9.5) and
(9.6) within the following year.
(h) No more than 4% of energy efficiency and
demand-response program revenue may be allocated for research,

SB2552 - 77 - LRB103 31416 LNS 59082 b
development, or pilot deployment of new equipment or measures.
Electric utilities shall work with interested stakeholders to
formulate a plan for how these funds should be spent,
incorporate statewide approaches for these allocations, and
file a 4-year plan that demonstrates that collaboration. If a
utility files a request for modified annual energy savings
goals with the Commission, then a utility shall forgo spending
portfolio dollars on research and development proposals.
(i) When practicable, electric utilities shall incorporate
advanced metering infrastructure data into the planning,
implementation, and evaluation of energy efficiency measures
and programs, subject to the data privacy and confidentiality
protections of applicable law.
(j) The independent evaluator shall follow the guidelines
and use the savings set forth in Commission-approved energy
efficiency policy manuals and technical reference manuals, as
each may be updated from time to time. Until such time as
measure life values for energy efficiency measures implemented
for low-income households under subsection (c) of this Section
are incorporated into such Commission-approved manuals, the
low-income measures shall have the same measure life values
that are established for same measures implemented in
households that are not low-income households.
(k) Notwithstanding any provision of law to the contrary,
an electric utility subject to the requirements of this
Section may file a tariff cancelling an automatic adjustment

SB2552 - 78 - LRB103 31416 LNS 59082 b
clause tariff in effect under this Section or Section 8-103,
which shall take effect no later than one business day after
the date such tariff is filed. Thereafter, the utility shall
be authorized to defer and recover its expenditures incurred
under this Section through a new tariff authorized under
subsection (d) of this Section or in the utility's next rate
case under Article IX or Section 16-108.5 of this Act, with
interest at an annual rate equal to the utility's weighted
average cost of capital as approved by the Commission in such
case. If the utility elects to file a new tariff under
subsection (d) of this Section, the utility may file the
tariff within 10 days after June 1, 2017 (the effective date of
Public Act 99-906), and the cost inputs to such tariff shall be
based on the projected costs to be incurred by the utility
during the calendar year in which the new tariff is filed and
that were not recovered under the tariff that was cancelled as
provided for in this subsection. Such costs shall include
those incurred or to be incurred by the utility under its
multi-year plan approved under subsections (f) and (g) of this
Section, including, but not limited to, projected capital
investment costs and projected regulatory asset balances with
correspondingly updated depreciation and amortization reserves
and expense. The Commission shall, after notice and hearing,
approve, or approve with modification, such tariff and cost
inputs no later than 75 days after the utility filed the
tariff, provided that such approval, or approval with

SB2552 - 79 - LRB103 31416 LNS 59082 b
modification, shall be consistent with the provisions of this
Section to the extent they do not conflict with this
subsection (k). The tariff approved by the Commission shall
take effect no later than 5 days after the Commission enters
its order approving the tariff.
No later than 60 days after the effective date of the
tariff cancelling the utility's automatic adjustment clause
tariff, the utility shall file a reconciliation that
reconciles the moneys collected under its automatic adjustment
clause tariff with the costs incurred during the period
beginning June 1, 2016 and ending on the date that the electric
utility's automatic adjustment clause tariff was cancelled. In
the event the reconciliation reflects an under-collection, the
utility shall recover the costs as specified in this
subsection (k). If the reconciliation reflects an
over-collection, the utility shall apply the amount of such
over-collection as a one-time credit to retail customers'
bills.
(l) (Blank). For the calendar years covered by a
multi-year plan commencing after December 31, 2017,
subsections (a) through (j) of this Section do not apply to
eligible large private energy customers that have chosen to
opt out of multi-year plans consistent with this subsection
(1).
(1) For purposes of this subsection (l), "eligible
large private energy customer" means any retail customers,

SB2552 - 80 - LRB103 31416 LNS 59082 b
except for federal, State, municipal, and other public
customers, of an electric utility that serves more than
3,000,000 retail customers, except for federal, State,
municipal and other public customers, in the State and
whose total highest 30 minute demand was more than 10,000
kilowatts, or any retail customers of an electric utility
that serves less than 3,000,000 retail customers but more
than 500,000 retail customers in the State and whose total
highest 15 minute demand was more than 10,000 kilowatts.
For purposes of this subsection (l), "retail customer" has
the meaning set forth in Section 16-102 of this Act.
However, for a business entity with multiple sites located
in the State, where at least one of those sites qualifies
as an eligible large private energy customer, then any of
that business entity's sites, properly identified on a
form for notice, shall be considered eligible large
private energy customers for the purposes of this
subsection (l). A determination of whether this subsection
is applicable to a customer shall be made for each
multi-year plan beginning after December 31, 2017. The
criteria for determining whether this subsection (l) is
applicable to a retail customer shall be based on the 12
consecutive billing periods prior to the start of the
first year of each such multi-year plan.
(2) Within 45 days after the effective date of this
amendatory Act of the 102nd General Assembly, the

SB2552 - 81 - LRB103 31416 LNS 59082 b
Commission shall prescribe the form for notice required
for opting out of energy efficiency programs. The notice
must be submitted to the retail electric utility 12 months
before the next energy efficiency planning cycle. However,
within 120 days after the Commission's initial issuance of
the form for notice, eligible large private energy
customers may submit a form for notice to an electric
utility. The form for notice for opting out of energy
efficiency programs shall include all of the following:
(A) a statement indicating that the customer has
elected to opt out;
(B) the account numbers for the customer accounts
to which the opt out shall apply;
(C) the mailing address associated with the
customer accounts identified under subparagraph (B);
(D) an American Society of Heating, Refrigerating,
and Air-Conditioning Engineers (ASHRAE) level 2 or
higher audit report conducted by an independent
third-party expert identifying cost-effective energy
efficiency project opportunities that could be
invested in over the next 10 years. A retail customer
with specialized processes may utilize a self-audit
process in lieu of the ASHRAE audit;
(E) a description of the customer's plans to
reallocate the funds toward internal energy efficiency
efforts identified in the subparagraph (D) report,

SB2552 - 82 - LRB103 31416 LNS 59082 b
including, but not limited to: (i) strategic energy
management or other programs, including descriptions
of targeted buildings, equipment and operations; (ii)
eligible energy efficiency measures; and (iii)
expected energy savings, itemized by technology. If
the subparagraph (D) audit report identifies that the
customer currently utilizes the best available energy
efficient technology, equipment, programs, and
operations, the customer may provide a statement that
more efficient technology, equipment, programs, and
operations are not reasonably available as a means of
satisfying this subparagraph (E); and
(F) the effective date of the opt out, which will
be the next January 1 following notice of the opt out.
(3) Upon receipt of a properly and timely noticed
request for opt out submitted by an eligible large private
energy customer, the retail electric utility shall grant
the request, file the request with the Commission and,
beginning January 1 of the following year, the opted out
customer shall no longer be assessed the costs of the plan
and shall be prohibited from participating in that 4-year
plan cycle to give the retail utility the certainty to
design program plan proposals.
(4) Upon a customer's election to opt out under
paragraphs (1) and (2) of this subsection (l) and
commencing on the effective date of said opt out, the

SB2552 - 83 - LRB103 31416 LNS 59082 b
account properly identified in the customer's notice under
paragraph (2) shall not be subject to any cost recovery
and shall not be eligible to participate in, or directly
benefit from, compliance with energy efficiency cumulative
persisting savings requirements under subsections (a)
through (j).
(5) A utility's cumulative persisting annual savings
targets will exclude any opted out load.
(6) The request to opt out is only valid for the
requested plan cycle. An eligible large private energy
customer must also request to opt out for future energy
plan cycles, otherwise the customer will be included in
the future energy plan cycle.
(m) Notwithstanding the requirements of this Section, as
part of a proceeding to approve a multi-year plan under
subsections (f) and (g) of this Section if the multi-year plan
has been designed to maximize savings, but does not meet the
cost cap limitations of this Section, the Commission shall
reduce the amount of energy efficiency measures implemented
for any single year, and whose costs are recovered under
subsection (d) of this Section, by an amount necessary to
limit the estimated average net increase due to the cost of the
measures to no more than
(1) 3.5% for each of the 4 years beginning January 1,
2018,
(2) (blank),

SB2552 - 84 - LRB103 31416 LNS 59082 b
(3) 4% for each of the 4 years beginning January 1,
2022,
(4) 4.25% for the 4 years beginning January 1, 2026,
and
(5) 4.25% plus an increase sufficient to account for
the rate of inflation between January 1, 2026 and January
1 of the first year of each subsequent 4-year plan cycle,
of the average amount paid per kilowatthour by residential
eligible retail customers during calendar year 2015. An
electric utility may plan to spend up to 10% more in any year
during an applicable multi-year plan period to
cost-effectively achieve additional savings so long as the
average over the applicable multi-year plan period does not
exceed the percentages defined in items (1) through (5). To
determine the total amount that may be spent by an electric
utility in any single year, the applicable percentage of the
average amount paid per kilowatthour shall be multiplied by
the total amount of energy delivered by such electric utility
in the calendar year 2015, adjusted to reflect the proportion
of the utility's load attributable to customers that have
opted out of subsections (a) through (j) of this Section under
subsection (l) of this Section. For purposes of this
subsection (m), the amount paid per kilowatthour includes,
without limitation, estimated amounts paid for supply,
transmission, distribution, surcharges, and add-on taxes. For
purposes of this Section, "eligible retail customers" shall

SB2552 - 85 - LRB103 31416 LNS 59082 b
have the meaning set forth in Section 16-111.5 of this Act.
Once the Commission has approved a plan under subsections (f)
and (g) of this Section, no subsequent rate impact
determinations shall be made.
(n) A utility shall take advantage of the efficiencies
available through existing Illinois Home Weatherization
Assistance Program infrastructure and services, such as
enrollment, marketing, quality assurance and implementation,
which can reduce the need for similar services at a lower cost
than utility-only programs, subject to capacity constraints at
community action agencies, for both single-family and
multifamily weatherization services, to the extent Illinois
Home Weatherization Assistance Program community action
agencies provide multifamily services. A utility's plan shall
demonstrate that in formulating annual weatherization budgets,
it has sought input and coordination with community action
agencies regarding agencies' capacity to expand and maximize
Illinois Home Weatherization Assistance Program delivery using
the ratepayer dollars collected under this Section.
(Source: P.A. 101-81, eff. 7-12-19; 102-662, eff. 9-15-21;
revised 2-28-22.)
(220 ILCS 5/16-107.8 new)
Sec. 16-107.8. Residential time-of-use pricing.
(a) The General Assembly finds that time-of-use rates and
pricing plans can lower energy costs for consumers and reduce

SB2552 - 86 - LRB103 31416 LNS 59082 b
grid costs as well as help the State achieve its energy policy
goals by improving load shape, encouraging energy
conservation, and shifting usage away from periods where
fossil fuels are used to meet peak demand. Further, by
providing consumers information relating the costs of service
to the time of energy usage, time-of-use rates can help
consumers reduce their energy bills by using electricity when
it is less costly. Time-of-use rates can help allocate
electricity system costs more accurately and thus equitably to
those who cause costs. Such rates can reduce the need for
ramping resources and increase the grid's ability to
cost-effectively integrate greater quantities of variable
renewable energy and distributed energy resources.
(b) An electric utility that has a tariff approved under
subsection (d) of Section 16-108.18 within one year of this
amendatory Act of the 103rd General Assembly shall also offer
at least one market-based, time-of-use rate for eligible
retail customers that choose to take power and energy supply
service from the utility. If the utility has a pending request
for approval of a Multi-Year Integrated Grid Plan, the utility
shall update its filing in that docket to reflect the likely
impacts of the time-of-use rate offering. The utility shall
file its time-of-use rate tariff no later than 120 days after
the effective date of this amendatory Act of the 103rd General
Assembly, and each utility subject to this requirement shall
implement the requirements of this subsection by filing a

SB2552 - 87 - LRB103 31416 LNS 59082 b
tariff with the Commission. The tariff or tariffs shall be
subject to the following provisions:
(1) If more than one tariff is proposed, at least one
tariff shall include at least 3 time blocks: a peak time
block, defined as 2 p.m. to 7 p.m. on nonholiday weekdays
or the 5 consecutive hours best reflecting the highest
system peak demands; an off-peak time block, defined as 10
a.m. to 2 p.m. and 7 p.m. to 10 p.m. on nonholiday weekdays
or the 7 total hours occurring in some combination before
and after the peak period, which reflect the next highest
system peak demands; and a super-off-peak time block,
defined as all other hours and including weekend days.
(2) This tariff shall strive to achieve price ratios
between the blocks as follows: the super-off-peak time
block price shall be no less than zero but no greater than
one-half of the price of the off-peak time block price,
and the off-peak time block price shall be no greater than
one-half of the price of the peak time block price.
(3) The time-of-use rate shall include the costs of
electric capacity, costs of transmission services, and
charges for network integration transmission service,
transmission enhancement, and locational reliability, as
these terms are defined in the PJM Interconnection LLC
Open Access Transmission Tariff and manuals on January 1,
2019, within the prices for each time block and seasonal
block in which the associated costs generally are

SB2552 - 88 - LRB103 31416 LNS 59082 b
incurred. If the Open Access Transmission Tariff or
manuals subsequently renames those terms, the services
reflected under those terms shall continue to be included
in the time-of-use rate described in this paragraph.
(4) Adjustments to the charges set by the tariff may
be made on a semi-annual basis, as follows: each May and
November, the utility shall submit to the Commission,
through an informational filing, its updated charges, and
such charges shall take effect beginning with the June
monthly billing period and December monthly billing
period, respectively.
(5) The tariff shall include a purchased energy
adjustment to fully recover the supply costs for the
customers taking service under this tariff.
As used in this subsection, "eligible retail customers"
includes, but is not limited to, customers participating in
net electricity metering under the terms of Section 16-107.5.
(c) The Commission shall, after notice and hearing,
approve the tariff or tariffs with modifications the
Commission finds necessary to improve the program design,
customer participation in the program, or coordination with
existing utility pricing programs, energy efficiency programs,
demand response programs, and any other programs supporting
State energy policy goals and the integration of distributed
energy resources. The Commission shall also consider how the
proposed time-of-use rate design reflects the system costs and

SB2552 - 89 - LRB103 31416 LNS 59082 b
usage patterns of the utility. A proceeding under this
subsection may not exceed 120 days in length.
(d) If the Commission issues an order pursuant to this
subsection, the affected electric utility shall contract with
an entity not affiliated with the electric utility to serve as
a program administrator to develop and implement a program to
provide consumer outreach, enrollment, and education
concerning time-of-use pricing and to establish and administer
an information system and technical and other customer
assistance that is necessary to enable customers to manage
electricity use. The program administrator: (i) shall be
selected and compensated by the electric utility, subject to
Commission approval; (ii) shall have demonstrated technical
and managerial competence in the development and
administration of demand management programs; and (iii) may
develop and implement risk management, energy efficiency, and
other services related to energy use management for which the
program administrator shall be compensated by participants in
the program receiving such services. The electric utility
shall provide the program administrator with all information
and assistance necessary to perform the program
administrator's duties, including, but not limited to,
customer, account, and energy use data. The electric utility
shall permit the program administrator to include inserts in
residential customer bills 2 times per year to assist with
customer outreach and enrollment. The program administrator

SB2552 - 90 - LRB103 31416 LNS 59082 b
shall submit an annual report to the electric utility no later
than April 1 of each year describing the operation and results
of the program, including information concerning the number
and types of customers using the program, changes in
customers' energy use patterns, an assessment of the value of
the program to both participants and nonparticipants, and
recommendations concerning modification of the program and the
tariff or tariffs filed under this Section. This report shall
be filed by the electric utility with the Commission within 30
days after receipt and shall be available to the public on the
Commission's website.
(e) Once the tariff or tariffs has been in effect for 12
months, the Commission may, upon complaint, petition, or its
own initiative, open a proceeding to investigate whether
changes or modifications to the tariff or tariffs, program
administration and any other program design element is
necessary to achieve the goals described in subsection (a) and
to shifting usage away from periods where fossil fuels are
used to meet peak demand and realign usage to periods when
renewable generation is available. Such a proceeding may not
last more than 180 days from the date upon which the
investigation is opened by Commission order. Thereafter, the
Commission may, upon complaint, petition, or its own
initiative, open a proceeding to investigate changes or
modifications to the tariff or tariffs at any time the
Commission deems reasonable in order to achieve these

SB2552 - 91 - LRB103 31416 LNS 59082 b
objectives.
(f) An electric utility shall be entitled to recover
reasonable costs incurred in complying with this Section, if
the recovery of the costs is fairly apportioned among its
residential customers.
(g) The electric utility's tariff or tariffs filed
pursuant to this Section shall be subject to the provisions of
Article IX of this Act insofar as they do not conflict with
this Section.
(h) This Section does not apply to any electric utility
providing service to 100,000 or fewer customers.
(220 ILCS 5/16-111.5)
Sec. 16-111.5. Provisions relating to procurement.
(a) An electric utility that on December 31, 2005 served
at least 100,000 customers in Illinois shall procure power and
energy for its eligible retail customers in accordance with
the applicable provisions set forth in Section 1-75 of the
Illinois Power Agency Act and this Section. Beginning with the
delivery year commencing on June 1, 2017, such electric
utility shall also procure zero emission credits from zero
emission facilities in accordance with the applicable
provisions set forth in Section 1-75 of the Illinois Power
Agency Act, and, for years beginning on or after June 1, 2017,
the utility shall procure renewable energy resources in
accordance with the applicable provisions set forth in Section

SB2552 - 92 - LRB103 31416 LNS 59082 b
1-75 of the Illinois Power Agency Act and this Section.
Beginning with the delivery year commencing on June 1, 2022,
an electric utility serving over 3,000,000 customers shall
also procure carbon mitigation credits from carbon-free energy
resources in accordance with the applicable provisions set
forth in Section 1-75 of the Illinois Power Agency Act and this
Section. A small multi-jurisdictional electric utility that on
December 31, 2005 served less than 100,000 customers in
Illinois may elect to procure power and energy for all or a
portion of its eligible Illinois retail customers in
accordance with the applicable provisions set forth in this
Section and Section 1-75 of the Illinois Power Agency Act.
This Section shall not apply to a small multi-jurisdictional
utility until such time as a small multi-jurisdictional
utility requests the Illinois Power Agency to prepare a
procurement plan for its eligible retail customers. "Eligible
retail customers" for the purposes of this Section means those
retail customers that purchase power and energy from the
electric utility under fixed-price bundled service tariffs,
other than those retail customers whose service is declared or
deemed competitive under Section 16-113 and those other
customer groups specified in this Section, including
self-generating customers, customers electing hourly pricing,
or those customers who are otherwise ineligible for
fixed-price bundled tariff service. For those customers that
are excluded from the procurement plan's electric supply

SB2552 - 93 - LRB103 31416 LNS 59082 b
service requirements, and the utility shall procure any supply
requirements, including capacity, ancillary services, and
hourly priced energy, in the applicable markets as needed to
serve those customers, provided that the utility may include
in its procurement plan load requirements for the load that is
associated with those retail customers whose service has been
declared or deemed competitive pursuant to Section 16-113 of
this Act to the extent that those customers are purchasing
power and energy during one of the transition periods
identified in subsection (b) of Section 16-113 of this Act.
(b) A procurement plan shall be prepared for each electric
utility consistent with the applicable requirements of the
Illinois Power Agency Act and this Section. For purposes of
this Section, Illinois electric utilities that are affiliated
by virtue of a common parent company are considered to be a
single electric utility. Small multi-jurisdictional utilities
may request a procurement plan for a portion of or all of its
Illinois load. Each procurement plan shall analyze the
projected balance of supply and demand for those retail
customers to be included in the plan's electric supply service
requirements over a 5-year period, with the first planning
year beginning on June 1 of the year following the year in
which the plan is filed. The plan shall specifically identify
the wholesale products to be procured following plan approval,
and shall follow all the requirements set forth in the Public
Utilities Act and all applicable State and federal laws,

SB2552 - 94 - LRB103 31416 LNS 59082 b
statutes, rules, or regulations, as well as Commission orders.
Nothing in this Section precludes consideration of contracts
longer than 5 years and related forecast data. Unless
specified otherwise in this Section, in the procurement plan
or in the implementing tariff, any procurement occurring in
accordance with this plan shall be competitively bid through a
request for proposals process. Approval and implementation of
the procurement plan shall be subject to review and approval
by the Commission according to the provisions set forth in
this Section. A procurement plan shall include each of the
following components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and
(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this

SB2552 - 95 - LRB103 31416 LNS 59082 b
Act, both current and projected; and
(ii) supply side needs that are projected to be
offset by purchases of renewable energy resources, if
any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than
procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from those retail customers included in the plan's
electric supply service requirements;
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service

SB2552 - 96 - LRB103 31416 LNS 59082 b
territory is located, including, but not limited
to, any applicable capacity or dispatch
requirements;
(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be
executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including but not limited to monthly 5 x 16 peak period
block energy, monthly off-peak wrap energy, monthly 7
x 24 energy, annual 5 x 16 energy, other standardized
energy or capacity products designed to provide

SB2552 - 97 - LRB103 31416 LNS 59082 b
eligible retail customer benefits from commercially
deployed advanced technologies including but not
limited to high voltage direct current converter
stations, as such term is defined in Section 1-10 of
the Illinois Power Agency Act, whether or not such
product is currently available in wholesale markets,
annual off-peak wrap energy, annual 7 x 24 energy,
monthly capacity, annual capacity, peak load capacity
obligations, capacity purchase plan, and ancillary
services;
(v) proposed term structures for each wholesale
product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk and mitigation in the form of
additional retail customer and ratepayer price,
reliability, and environmental benefits from

SB2552 - 98 - LRB103 31416 LNS 59082 b
standardized energy products delivered from
commercially deployed advanced technologies,
including, but not limited to, high voltage direct
current converter stations, as such term is defined in
Section 1-10 of the Illinois Power Agency Act, whether
or not such product is currently available in
wholesale markets.
(4) Proposed procedures for balancing loads. The
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)
hourly balancing of supply and demand and (ii) the
criteria for portfolio re-balancing in the event of
significant shifts in load.
(5) Long-Term Renewable Resources Procurement Plan.
The Agency shall prepare a long-term renewable resources
procurement plan for the procurement of renewable energy
credits under Sections 1-56 and 1-75 of the Illinois Power
Agency Act for delivery beginning in the 2017 delivery
year.
(i) The initial long-term renewable resources
procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
the purposes of this Section, "delivery year" has the
same meaning as in Section 1-10 of the Illinois Power
Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.

SB2552 - 99 - LRB103 31416 LNS 59082 b
(ii) The long-term renewable resources planning
process shall be conducted as follows:
(A) Electric utilities shall provide a range
of load forecasts to the Illinois Power Agency
within 45 days of the Agency's request for
forecasts, which request shall specify the length
and conditions for the forecasts including, but
not limited to, the quantity of distributed
generation expected to be interconnected for each
year.
(B) The Agency shall publish for comment the
initial long-term renewable resources procurement
plan no later than 120 days after the effective
date of this amendatory Act of the 99th General
Assembly and shall review, and may revise, the
plan at least every 2 years thereafter. To the
extent practicable, the Agency shall review and
propose any revisions to the long-term renewable
energy resources procurement plan in conjunction
with the Agency's other planning and approval
processes conducted under this Section. The
initial long-term renewable resources procurement
plan shall:
(aa) Identify the procurement programs and
competitive procurement events consistent with
the applicable requirements of the Illinois

SB2552 - 100 - LRB103 31416 LNS 59082 b
Power Agency Act and shall be designed to
achieve the goals set forth in subsection (c)
of Section 1-75 of that Act.
(bb) Include a schedule for procurements
for renewable energy credits from
utility-scale wind projects, utility-scale
solar projects, and brownfield site
photovoltaic projects consistent with
subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois
Power Agency Act.
(cc) Identify the process whereby the
Agency will submit to the Commission for
review and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial long-term renewable
resources procurement plan and all subsequent
revisions shall be posted and made publicly
available on the Agency's and Commission's
websites, and copies shall also be provided to
each affected electric utility. An affected
utility and other interested parties shall have 45
days following the date of posting to provide
comment to the Agency on the initial long-term
renewable resources procurement plan and all
subsequent revisions. All comments submitted to

SB2552 - 101 - LRB103 31416 LNS 59082 b
the Agency shall be specific, supported by data or
other detailed analyses, and, if objecting to all
or a portion of the procurement plan, accompanied
by specific alternative wording or proposals. All
comments shall be posted on the Agency's and
Commission's websites. During this 45-day comment
period, the Agency shall hold at least one public
hearing within each utility's service area that is
subject to the requirements of this paragraph (5)
for the purpose of receiving public comment.
Within 21 days following the end of the 45-day
review period, the Agency may revise the long-term
renewable resources procurement plan based on the
comments received and shall file the plan with the
Commission for review and approval.
(C) Within 14 days after the filing of the
initial long-term renewable resources procurement
plan or any subsequent revisions, any person
objecting to the plan may file an objection with
the Commission. Within 21 days after the filing of
the plan, the Commission shall determine whether a
hearing is necessary. The Commission shall enter
its order confirming or modifying the initial
long-term renewable resources procurement plan or
any subsequent revisions within 120 days after the
filing of the plan by the Illinois Power Agency.

SB2552 - 102 - LRB103 31416 LNS 59082 b
(D) The Commission shall approve the initial
long-term renewable resources procurement plan and
any subsequent revisions, including expressly the
forecast used in the plan and taking into account
that funding will be limited to the amount of
revenues actually collected by the utilities, if
the Commission determines that the plan will
reasonably and prudently accomplish the
requirements of Section 1-56 and subsection (c) of
Section 1-75 of the Illinois Power Agency Act. The
Commission shall also approve the process for the
submission, review, and approval of the proposed
contracts to procure renewable energy credits or
implement the programs authorized by the
Commission pursuant to a long-term renewable
resources procurement plan approved under this
Section.
In approving any long-term renewable resources
procurement plan after the effective date of this
amendatory Act of the 102nd General Assembly, the
Commission shall approve or modify the Agency's
proposal for minimum equity standards pursuant to
subsection (c-10) of Section 1-75 of the Illinois
Power Agency Act. The Commission shall consider
any analysis performed by the Agency in developing
its proposal, including past performance,

SB2552 - 103 - LRB103 31416 LNS 59082 b
availability of equity eligible contractors, and
availability of equity eligible persons at the
time the long-term renewable resources procurement
plan is approved.
(iii) The Agency or third parties contracted by
the Agency shall implement all programs authorized by
the Commission in an approved long-term renewable
resources procurement plan without further review and
approval by the Commission. Third parties shall not
begin implementing any programs or receive any payment
under this Section until the Commission has approved
the contract or contracts under the process authorized
by the Commission in item (D) of subparagraph (ii) of
paragraph (5) of this subsection (b) and the third
party and the Agency or utility, as applicable, have
executed the contract. For those renewable energy
credits subject to procurement through a competitive
bid process under the plan or under the initial
forward procurements for wind and solar resources
described in subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act, the Agency shall follow the procurement
process specified in the provisions relating to
electricity procurement in subsections (e) through (i)
of this Section.
(iv) An electric utility shall recover its costs

SB2552 - 104 - LRB103 31416 LNS 59082 b
associated with the procurement of renewable energy
credits under this Section and pursuant to subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act
through an automatic adjustment clause tariff under
subsection (k) or a tariff pursuant to subsection
(i-5), as applicable, of Section 16-108 of this Act. A
utility shall not be required to advance any payment
or pay any amounts under this Section that exceed the
actual amount of revenues collected by the utility
under paragraph (6) of subsection (c) of Section 1-75
of the Illinois Power Agency Act, subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act, and
subsection (k) or subsection (i-5), as applicable, of
Section 16-108 of this Act, and contracts executed
under this Section shall expressly incorporate this
limitation.
(v) For the public interest, safety, and welfare,
the Agency and the Commission may adopt rules to carry
out the provisions of this Section on an emergency
basis immediately following the effective date of this
amendatory Act of the 99th General Assembly.
(vi) On or before July 1 of each year, the
Commission shall hold an informal hearing for the
purpose of receiving comments on the prior year's
procurement process and any recommendations for
change.

SB2552 - 105 - LRB103 31416 LNS 59082 b
(b-5) An electric utility that as of January 1, 2019
served more than 300,000 retail customers in this State shall
purchase renewable energy credits from new renewable energy
facilities constructed at or adjacent to the sites of
coal-fueled electric generating facilities in this State in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act. Except as expressly provided in
this Section, the plans and procedures for such procurements
shall not be included in the procurement plans provided for in
this Section, but rather shall be conducted and implemented
solely in accordance with subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act.
(b-10) Capacity procurement.
(1) Definitions. For purposes of this subsection:
"Applicable Local Resource Zone" means the Zone 4
Local Resource Zone as set forth in the MISO Business
Practices Manual 011 – Resource Adequacy, or any future
successor zone for the same geographic space, as
designated by MISO governing documents.
"Applicable locational deliverability area" means the
ComEd Locational Deliverability Area as set forth in the
PJM Manual, or any future successor area for the same
geographic space, as designated by PJM governing
documents.
"Electric cooperative" has the meaning given to that
term in Section 3-119.

SB2552 - 106 - LRB103 31416 LNS 59082 b
"Fixed Resource Adequacy Plan", "Local Clearing
Requirement", "Local Resource Zone", "Planning Resource",
and "Planning Reserve Margin Requirement" have the
meanings given to those terms in the MISO Tariff,
including as they may apply to individual Load Serving
Entities, as applicable. For avoidance of doubt, these
terms shall be interpreted as multiple seasonal values
within a given delivery year if MISO's then-prevailing
resource adequacy construct has a seasonal component.
"Load Serving Entity" has the meaning given to that
term by the regional transmission organization where the
entity serves customers, either in the Midcontinent
Independent System Operator Tariff or PJM Interconnection,
LLC Reliability Assurance Agreement. For entities that
serve customers in multiple regional transmission
organizations, their operations within each regional
transmission organization shall be defined and subject to
the definition set forth by the relevant regional
transmission organization. "Load Serving Entity" includes
any electric utility as defined in Section 16-102 of the
Public Utilities Act or alternative retail electric
supplier as defined in Section 16-102 of the Public
Utilities Act. "Load Serving Entity" does not include
municipal utilities, electric cooperatives, and multistate
electric utilities.
"Midcontinent Independent System Operator" or "MISO"

SB2552 - 107 - LRB103 31416 LNS 59082 b
means the Midcontinent Independent System Operator, Inc.,
or its successor approved by the federal Energy Regulatory
Commission as the regional transmission organization for
the Applicable Local Resource Zone.
"MISO Tariff" shall mean the open access transmission
and energy markets tariff of the Midcontinent Independent
System Operator, Inc. or its successor, as that tariff may
be updated from time to time.
"Municipal utility" has the meaning given to that term
in paragraph (1) of subsection (b) of Section 3-105.
"Peak Load Contribution" means the peak load
contribution, calculated in the manner specified in the
MISO Tariff, PJM Reliability Assurance Agreement, or other
applicable governing documents by a regional transmission
organization serving this State, of, as applicable, a
retail customer, a group of customers served by a Load
Serving Entity, or all customers of the Load Serving
Entity in the Applicable Local Resource Zone or Locational
Deliverability Area.
"PJM" means PJM Interconnection, LLC, or its successor
approved by the federal Energy Regulatory Commission.
"PJM Open Access Transmission Tariff", "PJM Operating
Agreement", "PJM Reliability Assurance Agreement", and
"PJM Manual" means the respective governing documents of
PJM Interconnection, LLC, or its successor, as it may be
updated from time to time.

SB2552 - 108 - LRB103 31416 LNS 59082 b
"PJM Region Reliability Requirement" and "Internal
Resource Requirement" have the meaning given to those
terms in the PJM Manual on the Capacity Market. For
avoidance of doubt, this term shall be interpreted as
multiple seasonal values within a given delivery year if
PJM's then-prevailing resource adequacy construct has a
seasonal component.
"Qualified resources" means: (i) energy efficiency
measures that are implemented pursuant to plans approved
by the Commission under Sections 8-103, 8-103B, and 8-104;
(ii) wind, solar thermal energy, photovoltaic cells and
panels, and hydropower; (iii) demand response resources,
as long as they do not involve fossil fuel generation; and
(iv) energy storage, as long as it was charged entirely
with resources listed in item (ii).
(2) Capacity planning. The Agency shall conduct
capacity procurement events to procure a target portion of
capacity toward the Planning Reserve Margin Requirement
for all Load Serving Entities serving customers within the
Applicable Local Resource Zone and a target portion of
capacity toward the PJM Region Reliability Requirement for
Load Serving Entities serving customers within the
Applicable Locational Deliverability Area, for delivery
years as specified in this subsection.
(A) Capacity procurement mechanics.
(i) Capacity procurement schedules.

SB2552 - 109 - LRB103 31416 LNS 59082 b
For the delivery year 2025-2026, the Agency
shall procure capacity that is sufficient to meet
at least 12% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 12% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2026-2027, the Agency
shall procure capacity that is sufficient to meet
at least 15% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 15% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2027-2028, the Agency
shall procure capacity that is sufficient to meet
at least 18% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 18% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable

SB2552 - 110 - LRB103 31416 LNS 59082 b
Locational Deliverability Area.
For the delivery year 2028-2029, the Agency
shall procure capacity that is sufficient to meet
at least 21% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 21% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2029-2030, the Agency
shall procure capacity that is sufficient to meet
at least 24% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 24% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2030-2031, the Agency
shall procure capacity that is sufficient to meet
at least 27% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 27% of the PJM
Region Reliability Requirement for Load Serving

SB2552 - 111 - LRB103 31416 LNS 59082 b
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2031-2032, the Agency
shall procure capacity that is sufficient to meet
at least 30% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 30% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2032-2033, the Agency
shall procure capacity that is sufficient to meet
at least 33% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 33% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2033-2034, the Agency
shall procure capacity that is sufficient to meet
at least 36% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 36% of the PJM

SB2552 - 112 - LRB103 31416 LNS 59082 b
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2034-2035, the Agency
shall procure capacity that is sufficient to meet
at least 39% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 39% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
For the delivery year 2035-2036, the Agency
shall procure capacity that is sufficient to meet
at least 42% of the portion of the projected
Planning Reserve Margin Requirement for Load
Serving Entities serving customers within the
Applicable Local Resource Zone, and 42% of the PJM
Region Reliability Requirement for Load Serving
Entities serving customers within the Applicable
Locational Deliverability Area.
(ii) For all the procurement events described
in this subsection, any capacity procured must be
attributable to the projected load of the
customers of each Load Serving Entity. The
contract buyer shall be, for all resulting

SB2552 - 113 - LRB103 31416 LNS 59082 b
contracts as described in paragraph (7), the
largest electric utility located in MISO for
procured capacity that satisfies Load Serving
Entities' customer requirements in the Applicable
Local Resource Zone, and the largest electric
utility located in PJM for procured capacity that
satisfies Load Serving Entities' customer
requirements in the Applicable Locational
Deliverability Area. Following receipt of the
product under each contract, the contract buyer
shall timely transfer procured capacity credits to
other Load Serving Entities in the same regional
transmission organization, following the
applicable prevailing rules for transfer of
capacity credits under the MISO Tariff or PJM Open
Access Transmission Tariff, based on the
allocation described in subparagraph (A) of
paragraph (7).
(iii) For all procurement events described in
this subsection, the Agency may use its discretion
in determining how much capacity it procures in
each procurement event, so long as the cumulative
procurement of Agency-procured capacity for a
given delivery year by the time of that delivery
year is equal, for both the Applicable Local
Resource Zone and Applicable Locational

SB2552 - 114 - LRB103 31416 LNS 59082 b
Deliverability Area, to the target percentage for
that delivery year. The Agency may hold
procurement events for a target delivery year
during the period January 1 to March 1 of the
calendar year in which the target delivery year
begins, or during the period January 1 to March 1
of either of the 2 previous calendar years. The
Agency shall endeavor to complete capacity
procurement events on a schedule so that procured
capacity credits for a delivery year covered by an
immediately upcoming regional transmission
organization capacity auction may be timely
submitted by Load Serving Entities to the
applicable regional transmission organization.
(iv) The Agency, at its discretion, may
procure qualified resources as defined in
subparagraph (B) to meet the target portion of
capacity for a given delivery year, further in
advance than the timelines given in item (iii), as
long as the contracts do not exceed 15 years in
length. Resources that are not qualified resources
as defined in subparagraph (B) may not be procured
under this item.
(v) Each of the Load Serving Entities shall
annually report its capacity commitments resulting
from the procurement events described in this

SB2552 - 115 - LRB103 31416 LNS 59082 b
subsection, based on the allocation described in
subparagraph (A) of paragraph (7), in accordance
with the applicable provisions of the PJM Open
Access Transmission Tariff, the applicable
provisions of the MISO Tariff, and other official
standards of regional transmission organizations
as appropriate.
(vi) The capacity procurement plans developed
by the Agency and the capacity procurement events
shall be designed to procure capacity to ensure
long-term resource adequacy at the lowest
environmentally safe cost over time, taking into
account the benefits of price stability and the
need to ensure the reliability, adequacy, and
resilience of the bulk power generation and
delivery system, as well as the health and climate
impacts of various capacity resources. The
procurement shall not interfere with the emissions
reductions required in Section 9.15 of the
Environmental Protection Act and the procurement
shall be in keeping with the goals of the Paris
Climate Agreement, to limit the rise in mean
global temperature to well below 2 degrees Celsius
(3.6 degrees Fahrenheit) above preindustrial
levels, and preferably limit the increase to 1.5
degrees Celsius (2.7 degrees Fahrenheit).

SB2552 - 116 - LRB103 31416 LNS 59082 b
(B) Clean capacity. A percentage of the total
capacity procured according to subparagraph (A) shall
be from qualified resources with the goals of reducing
pollution from the power sector, lowering consumer
costs, and creating investment opportunities for new
renewable resources. Capacity procurements conducted
under subparagraph (A) shall contain the following
percentage of qualified resources: 25% of the total
amount procured in the capacity procurement events
conducted in 2025, increasing at least 3 percentage
points per delivery year to reach 40% by 2030 and
continuing at no less than 40% each year thereafter.
The Agency may procure capacity from qualified
resources described in this subparagraph using
contract durations of up to 15 years. Capacity from
these qualified resources counts toward the capacity
procurement amounts described in subparagraph (A).
(C) In determining or projecting the capacity
obligation attributable to the customers of the Load
Serving Entity for a delivery year for purposes of
capacity procurement plans and capacity procurement
events under this subsection, the Agency and, as
applicable, the procurement administrator shall use,
as applicable, the Planning Reserve Margin Requirement
and Peak Load Contribution, as established or
projected by the Midcontinent Independent System

SB2552 - 117 - LRB103 31416 LNS 59082 b
Operator or the PJM Region Reliability Requirement as
established or projected by PJM Interconnection, LLC.
If the Midcontinent Independent System Operator or PJM
Interconnection, LLC have not established or released
a projection of these figures a delivery year, the
Agency and, as applicable, the procurement
administrator shall develop forecasts of the Planning
Reserve Margin Requirement, Peak Load Contribution,
PJM Region Reliability Requirement, and other relevant
figures used by the Midcontinent Independent System
Operator and PJM Interconnection, LLC to maintain
reliability, respectively, in the Applicable Local
Resource Zone and Applicable Locational Deliverability
Area for that delivery year based on available
information, including, without limiting the
foregoing, the most recent Planning Reserve Margin
Requirement, Peak Load Contribution, and established
by the Midcontinent Independent System Operator, and
the most recent PJM Region Reliability Requirement
established by PJM Interconnection, LLC for a delivery
year and any other information from the Midcontinent
Independent System Operator, PJM Interconnection, LLC,
and the Load Serving Entity. If requested by the
Agency, the Load Serving Entity shall provide to the
Agency actual and forecasted peak electric load
information for the customers of the Load Serving

SB2552 - 118 - LRB103 31416 LNS 59082 b
Entity in the Applicable Local Resource Zone and PJM
Region Reliability Requirement.
(3) (A) Each capacity procurement event may include
the procurement of capacity through a mix of contracts
with different terms and different initial delivery dates
as proposed by the Agency in its capacity procurement plan
and approved by the Commission, so long as each annual
capacity procurement event results in the procurement of
an amount of capacity that, together with capacity
procured in previous capacity procurement events, is equal
to the portion or portions of the projected Planning
Reserve Margin Requirement (for Load Serving Entities in
MISO) and PJM Region Reliability Requirement (for Load
Serving Entities in PJM) for the delivery year or delivery
years for which capacity is to be procured as specified in
paragraph (2). Each capacity procurement event shall
specify all Load Serving Entities for which capacity is
ultimately being procured, and indicate their projected
shares of the targeted capacity, consistent with
subparagraph (A) of paragraph (7).
(B) The Agency's annual capacity procurement plans for
the Applicable Local Resource Zone shall be developed as
follows: No later than July 15 of each year, the Agency
shall post on its website and otherwise make publicly
available, for public comment, its draft capacity
procurement plan for the capacity procurement event to be

SB2552 - 119 - LRB103 31416 LNS 59082 b
held in February of the following calendar year.
Interested parties shall be allowed 30 days from the
posting of the draft capacity procurement plan to submit
comments to the Agency. The Agency shall consider any
comments received and shall file its proposed capacity
procurement plan with the Commission within 15 days
following the conclusion of the public comment period. The
Commission shall open a docketed proceeding for
consideration and approval or modification of the proposed
capacity procurement plan. The Commission or its
administrative law judge assigned to the proceeding shall
establish a procedural schedule for the proceeding that
will enable the Commission to issue an order, within 90
days following the date the capacity procurement plan was
filed with the Commission, approving, with any
modifications directed by the Commission, the capacity
procurement plan. On or before December 1 each year, the
Commission shall issue its order in the proceeding
approving, or approving with modifications, the capacity
procurement plan. For the initial capacity procurement
event to be conducted in 2025: (i) the Agency shall file
its proposed capacity procurement plan with the Commission
within 30 days following the effective date of this
amendatory Act of the 103rd General Assembly; (ii) the
Commission, after notice and hearing, shall approve the
capacity procurement plan, with such modifications as

SB2552 - 120 - LRB103 31416 LNS 59082 b
directed by the Commission, within 30 days following the
date that the proposed capacity procurement plan was filed
with the Commission; and (iii) the capacity procurement
event shall be held no later than March 1, 2025.
(C) The Agency shall meet the goals and requirements
of this subsection prior to considering any of the other
capacity procurement goals, options, or requirements of
this Section (including those set out in subparagraphs
(ii) and (iv) of paragraph (3) of subsection (b)).
(4) To the extent that any other provision of this
Section or any provision of the Illinois Power Agency Act
are not inconsistent with the provisions of this
subsection for, and are otherwise applicable to, capacity
procurement events conducted under this subsection, those
other provisions shall be used in conducting capacity
procurement events conducted under this subsection.
(5) The capacity procurement plans prepared by, and
the capacity procurement events conducted by, the Agency
under this subsection shall be subject to the following
requirements:
(A) The mix of capacity resources selected in any
procurement event conducted under this subsection must
include sufficient qualified Zonal Resource Credits
(for Load Serving Entities in MISO) or accredited
megawatts (for Load Serving Entities in PJM), together
with capacity procured in previous capacity

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procurement events, to satisfy the portion specified
in item (i) of subparagraph (a) of paragraph (2) of the
Applicable Local Resource Zone and Applicable
Locational Deliverability Area and must otherwise be
consistent with the requirements for capacity
established by the Midcontinent Independent System
Operator and PJM Interconnection LLC. The procurement
of capacity in the capacity procurement events shall
not include the portion of the Planning Reserve Margin
Requirement for the Applicable Local Resource Zone or
Applicable Locational Deliverability Area associated
with customers served by a municipal utility, an
electric cooperative, or a multistate electric
utility.
(B) The capacity to be procured for each delivery
year for Load Serving Entities in MISO shall include
an amount of capacity from capacity resources
physically located within the Applicable Local
Resource Zone that is no less than the portion of the
projected Local Clearing Requirement for the
Applicable Local Resource Zone for that delivery year
attributable to the load of the customers of the Load
Serving Entities. The capacity to be procured for each
delivery year for Load Serving Entities in PJM shall
include an amount of capacity from capacity resources
physically located within the Applicable Locational

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Deliverability Area that represents a percentage
equaling at least the Internal Resource Requirement
for the Applicable Locational Deliverability Area as
set by PJM.
(C) In each capacity procurement plan, the Agency
shall include a discussion of whether factors, other
than price, to support reliability in the Applicable
Local Resource Zone or Applicable Locational
Deliverability Area should be taken into account in
selecting capacity resources in the capacity
procurement event or events that are the subject of
the capacity procurement plan. The Agency may propose
in the capacity procurement plan to procure a
specified amount or amounts of capacity from capacity
resources located within the Applicable Local Resource
Zone and Applicable Locational Deliverability Area,
over and above the amount of capacity required to
satisfy the Planning Resource Margin Requirement or
PJM Region Reliability Requirement, as applicable, to
support reliability within the Applicable Local
Resource Zone or Applicable Locational Deliverability
Area, including, but not limited to, for purposes of
transmission security, voltage support, dynamic
stability, frequency response, fuel security and
on-site fuel supply, public health benefits, and
import transfer capability. The inclusion of any such

SB2552 - 123 - LRB103 31416 LNS 59082 b
factors in the capacity procurement plan shall be
subject to approval of the Commission.
(D) Any capacity resource, including, without
limitation, demand response resources, energy
efficiency resources, and renewable energy resources,
that meets the other eligibility requirements of this
subsection shall be eligible to participate in a
capacity procurement event under this subsection if,
and to the extent that, the resource satisfies all the
requirements of the MISO Tariff, PJM Reliability
Assurance Agreement, or other appropriate standards
from regional transmission organizations or their
successors. A municipal utility, an electric
cooperative, a municipal electric power agency or
other group, association, or consortium of municipal
utilities or electric cooperatives may participate in
a capacity procurement event, using capacity that it
owns or leases, only to the extent that the owned and
leased capacity of the municipal utility, electric
cooperative, municipal electric power agency, or
group, association, or consortium exceeds the Planning
Reserve Margin Requirement or PJM Region Reliability
Requirement, as applicable, attributable to the load
of the customers that the municipal utility, electric
cooperative, municipal electric power agency, or
group, association, or consortium is obligated to

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serve. As a condition to eligibility to participate in
a capacity procurement event conducted under this
subsection, each municipal utility, electric
cooperative, municipal electric power agency, and
group, association, and consortium of municipal
utilities or electric cooperatives shall certify its
compliance with this requirement to the Agency for the
capacity procurement event. A municipal utility,
electric cooperative, municipal electric power agency,
and group, association, or consortium of municipal
utilities or electric cooperatives may not enter or
bid any resources into a capacity procurement event if
those resources use coal as a fuel.
(E) Capacity awarded in the Peak Time Rewards or
Peak Time Savings program or successor program, if
any, of an Load Serving Entity that is an electric
utility shall be included in the capacity resources
selected for each delivery year for which capacity is
procured in a capacity procurement event, at a price
for that delivery year equal to the weighted average
price of the other capacity resources selected under
this subsection for the delivery year. Prior to a
capacity procurement event being conducted under this
subsection to procure capacity for a delivery year,
the Load Serving Entity shall notify the Agency and
the procurement administrator of the amount of

SB2552 - 125 - LRB103 31416 LNS 59082 b
capacity awarded or forecasted to be awarded in the
Peak Time Rewards program for each delivery year for
which capacity is to be procured in the capacity
procurement event. For purposes of contract
administration and settlements, the Load Serving
Entity shall be deemed the capacity supplier of
capacity awarded in its Peak Time Rewards program or
successor program.
(6) Each (i) capacity supplier selected in a capacity
procurement event conducted by the Agency under this
subsection and (ii) each Load Serving Entity that is an
electric utility within the applicable regional
transmission organization shall enter into contracts for
capacity developed by the procurement administrator in
accordance with paragraph (7).
(7) The procurement administrator, in conjunction with
the Agency and the staff of the Commission and based on
consultation with prospective capacity suppliers and with
electric utilities, shall adopt, and shall revise from
time to time as necessary and appropriate, standard form
contracts to be entered into between the electric
utilities and capacity suppliers selected in procurement
events conducted under this subsection. The standard form
contracts to be used in connection with each capacity
procurement event conducted under this subsection shall be
made available to prospective capacity suppliers prior to

SB2552 - 126 - LRB103 31416 LNS 59082 b
the capacity procurement event. Each capacity supplier
seeking to participate in a capacity procurement event
shall agree, as a condition of eligibility to participate,
that if selected, it will enter into the standard form
contract with the applicable electric utility located in
the relevant regional transmission organization territory.
The standard form contracts shall contain, without
limitation, the following provisions:
(A) Each contract between a capacity supplier and
an electric utility as buyer shall specify in an
addendum that the capacity to be provided by the
capacity supplier shall be ultimately allocated to
each Load Serving Entity serving customers in the
Applicable Local Resource Zone or Applicable
Locational Deliverability Area, as applicable, where
that portion of the total capacity to be supplied by
the capacity supplier for any given Load Serving
Entity, consistent with the transfer described in part
item (ii) of subparagraph (A) of paragraph (2), shall
equal the load ratio share of the Load Serving
Entity's customers served by the Load Serving Entity
as a percentage of the total Planning Reserve Margin
Requirement or PJM Region Reliability Requirement, as
applicable, attributable to the load of all Load
Serving Entities customers in the Applicable Local
Resource Zone or Applicable Locational Deliverability

SB2552 - 127 - LRB103 31416 LNS 59082 b
Area, as applicable, on March 1 immediately preceding
the first delivery year for which the contract is in
effect.
(B) The standard form contracts shall specify that
if the Agency determines between March 1 and June 1 of
a calendar year that the aggregate amount of capacity
procured in capacity procurement events for the
immediately upcoming delivery year beginning June 1
exceeds the amount of capacity needed to meet the
targeted portion of Planning Reserve Margin
Requirement attributable to the load of the customers
of all Load Serving Entities in the Applicable Local
Resource Zone, or the PJM Region Reliability
Requirement in the Applicable Locational
Deliverability Area, as applicable, and directs that
the capacity to be supplied by each capacity supplier
for the immediately upcoming delivery year beginning
June 1 shall be reduced on a pro rata basis so that the
aggregate amount of capacity to be supplied for the
immediately upcoming delivery year is equal to the
amount of capacity needed to meet the targeted portion
of the Planning Reserve Margin Requirement
attributable to the load of the customers of all Load
Serving Entities in the Applicable Local Resource
Zone, or the PJM Region Reliability Requirement in the
Applicable Locational Deliverability Area, as

SB2552 - 128 - LRB103 31416 LNS 59082 b
applicable, then the amount of capacity to be supplied
and purchased under each contract between a capacity
supplier and a Load Serving Entity that is an electric
utility shall be deemed reduced as directed by the
Agency. The standard form contract shall specify that
any such reduction in the capacity to be supplied
under the contract shall apply only to the immediately
upcoming delivery year and not to any subsequent years
in the contract term. The standard form contracts
shall provide that in the event of a reduction in the
capacity to be supplied in accordance with this
subparagraph, the capacity supplier may resell or
otherwise dispose of the capacity it is no longer
obligated to supply.
(C) Each Load Serving Entity's allocated share of
procured capacity in an Applicable Local Resource Zone
or Applicable Locational Deliverability Area, as
applicable, as originally determined as described in
subparagraph (A), shall be deemed adjusted on a daily
basis to be equal to the load ratio share of the Load
Serving Entity's customers in the Applicable Local
Resource Zone or Applicable Locational Deliverability
Area, as applicable, that are served by the Load
Serving Entity to the total Planning Reserve Margin
Requirement or PJM Region Reliability Requirement, as
applicable, attributable to the load of all the Load

SB2552 - 129 - LRB103 31416 LNS 59082 b
Serving Entities' customers in the Applicable Local
Resource Zone or Applicable Locational Deliverability
Area, as applicable, on that day. Based on the
calculations in this subparagraph, the invoice amounts
described in paragraph (8) shall include true-ups as
appropriate.
(D) The standard form contracts shall specify the
frequency of billing periods and payment remittance
periods for the capacity supplier to bill the electric
utility, and the electric utility to remit payment to
the capacity supplier, for the capacity provided by
the capacity supplier to the electric utility under
the contract on each day during the billing period. A
capacity supplier and an electric utility may agree to
modify their contract to provide for billing and
payment remittance periods other than the billing and
payment dates specified in the standard form
contracts.
(E) The standard form contracts shall include
provisions relating to the credit, collateral,
performance, and dispute resolution obligations of the
parties, and other terms and conditions as described
in paragraph (2) of subsection (e).
(F) The standard form contracts shall memorialize
that other Load Serving Entities in the contract
buyer's regional transmission organization, as

SB2552 - 130 - LRB103 31416 LNS 59082 b
identified as described in subparagraph (A), shall be
considered as third-party beneficiaries of the
contracts but shall not have contractual rights or
remedies against the contract seller.
(G) The standard form contracts shall provide for
the capacity supplier to take financial responsibility
to make whole all Load Serving Entities for whom
capacity is procured, if the applicable regional
transmission organization ultimately disqualifies or
imposes any nonperformance penalties in the applicable
delivery year with respect to the procured capacity
credits.
(8) (A) Each contract buyer shall invoice all other
Load Serving Entities in the Applicable Local Resource
Zone or Applicable Locational Deliverability Area, as
applicable, for their allocated share of capacity payments
actually made under each contract, as determined in
subparagraph (A) of paragraph (7) as modified by
subparagraphs (B) and (C). Each Load Serving Entity that
is an alternative retail electric supplier shall promptly
pay the contract buyer upon receiving the invoice.
(B) Each Load Serving Entity that is an alternative
retail electric supplier shall be allowed to recover and
shall be responsible for recovering its costs for capacity
incurred under contracts entered into under this
subsection in accordance with its contracts and

SB2552 - 131 - LRB103 31416 LNS 59082 b
arrangements entered into with its customers. A Load
Serving Entity that is an electric utility shall recover
its costs for capacity incurred under contracts entered
into under this subsection in accordance with the electric
utility's tariff or other cost recovery mechanism approved
by the Commission under subsection (l).
(9) Nothing in this subsection is intended to preclude
the Agency or the Commission from conducting the
procurement events and processes described in this
subsection in conjunction with other procurement processes
described in this Section or Section 1-75 of the Illinois
Power Agency Act, to the extent the Agency and the
Commission find that approach is appropriate and
practicable while allowing the annual capacity procurement
plans to be developed and submitted by the Agency and
approved by the Commission in accordance with the schedule
set forth in subparagraph (B) of paragraph (3), and
allowing the capacity procurement events to be conducted
within the time periods specified in this subsection.
(10) It is the intent of this subsection that the
Agency's and the Commission's implementation of this
subsection, including, but not limited to, the timing and
number of procurement events and the duration of
contracts, shall conform, at a minimum, to any applicable
requirements of the MISO Tariff and PJM Open Access
Transmission Tariff, as the MISO Tariff or PJM Open Access

SB2552 - 132 - LRB103 31416 LNS 59082 b
Transmission Tariff may be changed, replaced, or
superseded from time to time, that are necessary for Load
Serving Entities serving State customers to (if in MISO
service territory) exercise and implement the Fixed
Resource Adequacy Plan capacity procurement option, or (if
in PJM service territory) to offset their Locational
Reliability Charge, or in either case a successor capacity
procurement mechanism. Notwithstanding anything to the
contrary, the Agency and the Commission shall have the
authority to take all steps necessary to implement this
subsection consistent with applicable federal tariffs, and
as those tariffs may be changed, replaced, or superseded
from time to time, to procure capacity for the electric
load of customers of Load Serving Entities subject to the
requirements of this subsection.
(c) The provisions of this subsection (c) shall not apply
to procurements conducted pursuant to subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act. However, the
Agency may retain a procurement administrator to assist the
Agency in planning and carrying out the procurement events and
implementing the other requirements specified in such
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act, with the costs incurred by the Agency for the procurement
administrator to be recovered through fees charged to
applicants for selection to sell and deliver renewable energy
credits to electric utilities pursuant to subsection (c-5) of

SB2552 - 133 - LRB103 31416 LNS 59082 b
Section 1-75 of the Illinois Power Agency Act. The procurement
process set forth in Section 1-75 of the Illinois Power Agency
Act and subsection (e) of this Section shall be administered
by a procurement administrator and monitored by a procurement
monitor.
(1) The procurement administrator shall:
(i) design the final procurement process in
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section
following Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids; these
benchmarks shall be submitted to the Commission for
review and approval on a confidential basis prior to
the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to
determine whether bidders are willing to lower the
price of bids that meet the benchmarks approved by the

SB2552 - 134 - LRB103 31416 LNS 59082 b
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and
shall be conducted in a fair and unbiased manner; in
conducting the negotiations, there shall be no
disclosure of any information derived from proposals
submitted by competing bidders; if information is
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the
progress of the procurement process;
(iii) provide an independent confidential report

SB2552 - 135 - LRB103 31416 LNS 59082 b
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans
approved by the Commission for each utility that on
December 31, 2005 provided electric service to at
least 100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and
consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), the planning
process shall be conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring
power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by
July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall

SB2552 - 136 - LRB103 31416 LNS 59082 b
cover the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load, and expected-load
scenario for the load of those retail customers included
in the plan's electric supply service requirements. The
utility shall provide supporting data and assumptions for
each of the scenarios.
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be
procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided
to each affected electric utility. An affected utility
shall have 30 days following the date of posting to
provide comment to the Agency on the procurement plan.
Other interested entities also may comment on the
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
procurement plan, accompanied by specific alternative
wording or proposals. All comments shall be posted on the

SB2552 - 137 - LRB103 31416 LNS 59082 b
Agency's and Commission's websites. During this 30-day
comment period, the Agency shall hold at least one public
hearing within each utility's service area for the purpose
of receiving public comment on the procurement plan.
Within 14 days following the end of the 30-day review
period, the Agency shall revise the procurement plan as
necessary based on the comments received and file the
procurement plan with the Commission and post the
procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days
after the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90
days after the filing of the procurement plan by the
Illinois Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(4.5) The Commission shall review the Agency's
recommendations for the selection of applicants to enter

SB2552 - 138 - LRB103 31416 LNS 59082 b
into long-term contracts for the sale and delivery of
renewable energy credits from new renewable energy
facilities to be constructed at or adjacent to the sites
of coal-fueled electric generating facilities in this
State in accordance with the provisions of subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act,
and shall approve the Agency's recommendations if the
Commission determines that the applicants recommended by
the Agency for selection, the proposed new renewable
energy facilities to be constructed, the amounts of
renewable energy credits to be delivered pursuant to the
contracts, and the other terms of the contracts, are
consistent with the requirements of subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act.
(e) The procurement process shall include each of the
following components:
(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be

SB2552 - 139 - LRB103 31416 LNS 59082 b
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also
administer the prequalification process, including
evaluation of credit worthiness, compliance with
procurement rules, and agreement to the standard form
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,
shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet
generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation

SB2552 - 140 - LRB103 31416 LNS 59082 b
by winning bidders, and the bidders must agree to the
terms of the contract in advance so that winning bids are
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.
As part of the development of the procurement process, the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products
that will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that
difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific
products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals

SB2552 - 141 - LRB103 31416 LNS 59082 b
shall set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event
of supplier default or failure of the procurement process
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if
the amount of supply is 200 megawatts or greater, and
if there are more than 60 days remaining of the
contract term. If both of these conditions are met,
and the default results in termination of the
contract, the utility shall immediately notify the
Illinois Power Agency that a request for proposals
must be issued to procure replacement power, and the
procurement administrator shall run an additional
procurement event. If the contracted supply of the
defaulting supplier is less than 200 megawatts or
there are less than 60 days remaining of the contract
term, the utility shall procure power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both, for the

SB2552 - 142 - LRB103 31416 LNS 59082 b
duration of the contract term to replace the
contracted supply; provided, however, that if a needed
product is not available through the regional
transmission organization market it shall be purchased
from the wholesale market.
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low
supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that
would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new
request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed

SB2552 - 143 - LRB103 31416 LNS 59082 b
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient
supply provided under contracts awarded through the
procurement process to fully meet the electric
utility's load requirement, the utility shall meet the
load requirement by procuring power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both; provided,
however, that if a needed product is not available
through the regional transmission organization market
it shall be purchased from the wholesale market.
(6) The procurement processes described in this
subsection and in subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act are exempt from the requirements
of the Illinois Procurement Code, pursuant to Section
20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,
the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria
and other factors observed in the process. The procurement
monitor also shall submit a confidential report to the
Commission within 2 business days after opening the sealed

SB2552 - 144 - LRB103 31416 LNS 59082 b
bids. The report shall contain the procurement monitor's
assessment of bidder behavior in the process as well as an
assessment of the procurement administrator's compliance with
the procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement
administrator and procurement monitor, and shall accept or
reject the recommendations of the procurement administrator
within 2 business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility
shall enter into binding contractual arrangements with the
winning suppliers using the standard form contracts; except
that the utility shall not be required either directly or
indirectly to execute the contracts if a tariff that is
consistent with subsection (l) of this Section has not been
approved and placed into effect for that utility.
(h) For the procurement of standard wholesale products,
the names of the successful bidders and the load weighted
average of the winning bid prices for each contract type and
for each contract term shall be made available to the public at
the time of Commission approval of a procurement event. For
procurements conducted to meet the requirements of subsection
(b) of Section 1-56 or subsection (c) of Section 1-75 of the
Illinois Power Agency Act governed by the provisions of this
Section, the address and nameplate capacity of the new
renewable energy generating facility proposed by a winning

SB2552 - 145 - LRB103 31416 LNS 59082 b
bidder shall also be made available to the public at the time
of Commission approval of a procurement event, along with the
business address and contact information for any winning
bidder. An estimate or approximation of the nameplate capacity
of the new renewable energy generating facility may be
disclosed if necessary to protect the confidentiality of
individual bid prices.
The Commission, the procurement monitor, the procurement
administrator, the Illinois Power Agency, and all participants
in the procurement process shall maintain the confidentiality
of all other supplier and bidding information in a manner
consistent with all applicable laws, rules, regulations, and
tariffs. Confidential information, including the confidential
reports submitted by the procurement administrator and
procurement monitor pursuant to subsection (f) of this
Section, shall not be made publicly available and shall not be
discoverable by any party in any proceeding, absent a
compelling demonstration of need, nor shall those reports be
admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other
date as may be required by the Commission from time to time,
the utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs

SB2552 - 146 - LRB103 31416 LNS 59082 b
associated with the procurement and computed in accordance
with the tariffs filed pursuant to subsection (l) of this
Section and approved by the Commission.
(j) Within 60 days following August 28, 2007 (the
effective date of Public Act 95-481), each electric utility
that on December 31, 2005 provided electric service to at
least 100,000 customers in Illinois shall prepare and file
with the Commission an initial procurement plan, which shall
conform in all material respects to the requirements of the
procurement plan set forth in subsection (b); provided,
however, that the Illinois Power Agency Act shall not apply to
the initial procurement plan prepared pursuant to this
subsection. The initial procurement plan shall identify the
portfolio of power and energy products to be procured and
delivered for the period June 2008 through May 2009, and shall
identify the proposed procurement administrator, who shall
have the same experience and expertise as is required of a
procurement administrator hired pursuant to Section 1-75 of
the Illinois Power Agency Act. Copies of the procurement plan
shall be posted and made publicly available on the
Commission's website. The initial procurement plan may include
contracts for renewable resources that extend beyond May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the

SB2552 - 147 - LRB103 31416 LNS 59082 b
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be
filed. Within 7 days after the date the utility's response
is due, the Commission shall determine whether a hearing
is necessary. If it determines that a hearing is
necessary, it shall require the hearing to be completed
and issue an order on the procurement plan within 60 days
after the filing of the procurement plan by the electric
utility.
(ii) The order shall approve or modify the procurement
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The
Commission shall approve the procurement plan if the
Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(k) (Blank).
(k-5) (Blank).
(l) An electric utility shall recover its costs incurred
under this Section and subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, including, but not limited to, the
costs of procuring power and energy demand-response resources

SB2552 - 148 - LRB103 31416 LNS 59082 b
under this Section and its costs for purchasing renewable
energy credits pursuant to subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act. The utility shall file with the
initial procurement plan its proposed tariffs through which
its costs of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to
pass through both the costs incurred by the utility in
procuring a supply of electric power and energy for the
applicable customer classes with no mark-up or return on the
price paid by the utility for that supply, plus any just and
reasonable costs that the utility incurs in arranging and
providing for the supply of electric power and energy. The
formula rate or charge shall also contain provisions that
ensure that its application does not result in over or under
recovery due to changes in customer usage and demand patterns,
and that provide for the correction, on at least an annual
basis, of any accounting errors that may occur. A utility
shall recover through the tariff all reasonable costs incurred
to implement or comply with any procurement plan that is
developed and put into effect pursuant to Section 1-75 of the
Illinois Power Agency Act and this Section, and for the
procurement of renewable energy credits pursuant to subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act,
including any fees assessed by the Illinois Power Agency,

SB2552 - 149 - LRB103 31416 LNS 59082 b
costs associated with load balancing, and contingency plan
costs. The electric utility shall also recover its full costs
of procuring electric supply for which it contracted before
the effective date of this Section in conjunction with the
provision of full requirements service under fixed-price
bundled service tariffs subsequent to December 31, 2006. All
such costs shall be deemed to have been prudently incurred.
The pass-through tariffs that are filed and approved pursuant
to this Section shall not be subject to review under, or in any
way limited by, Section 16-111(i) of this Act. All of the costs
incurred by the electric utility associated with the purchase
of zero emission credits in accordance with subsection (d-5)
of Section 1-75 of the Illinois Power Agency Act, all costs
incurred by the electric utility associated with the purchase
of carbon mitigation credits in accordance with subsection
(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
beginning June 1, 2017, all of the costs incurred by the
electric utility associated with the purchase of renewable
energy resources in accordance with Sections 1-56 and 1-75 of
the Illinois Power Agency Act, and all of the costs incurred by
the electric utility in purchasing renewable energy credits in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, shall be recovered through the
electric utility's tariffed charges applicable to all of its
retail customers, as specified in subsection (k) or subsection
(i-5), as applicable, of Section 16-108 of this Act, and shall

SB2552 - 150 - LRB103 31416 LNS 59082 b
not be recovered through the electric utility's tariffed
charges for electric power and energy supply to its eligible
retail customers.
(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following August 28,
2007 (the effective date of Public Act 95-481).
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and
cost responsibility therefor among themselves in proportion to
their requirements.
(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any
recommendations for change.
(p) An electric utility subject to this Section may
propose to invest, lease, own, or operate an electric
generation facility as part of its procurement plan, provided
the utility demonstrates that such facility is the least-cost
option to provide electric service to those retail customers

SB2552 - 151 - LRB103 31416 LNS 59082 b
included in the plan's electric supply service requirements.
If the facility is shown to be the least-cost option and is
included in a procurement plan prepared in accordance with
Section 1-75 of the Illinois Power Agency Act and this
Section, then the electric utility shall make a filing
pursuant to Section 8-406 of this Act, and may request of the
Commission any statutory relief required thereunder. If the
Commission grants all of the necessary approvals for the
proposed facility, such supply shall thereafter be considered
as a pre-existing contract under subsection (b) of this
Section. The Commission shall in any order approving a
proposal under this subsection specify how the utility will
recover the prudently incurred costs of investing in, leasing,
owning, or operating such generation facility through just and
reasonable rates charged to those retail customers included in
the plan's electric supply service requirements. Cost recovery
for facilities included in the utility's procurement plan
pursuant to this subsection shall not be subject to review
under or in any way limited by the provisions of Section
16-111(i) of this Act. Nothing in this Section is intended to
prohibit a utility from filing for a fuel adjustment clause as
is otherwise permitted under Section 9-220 of this Act.
(q) If the Illinois Power Agency filed with the
Commission, under Section 16-111.5 of this Act, its proposed
procurement plan for the period commencing June 1, 2017, and
the Commission has not yet entered its final order approving

SB2552 - 152 - LRB103 31416 LNS 59082 b
the plan on or before the effective date of this amendatory Act
of the 99th General Assembly, then the Illinois Power Agency
shall file a notice of withdrawal with the Commission, after
the effective date of this amendatory Act of the 99th General
Assembly, to withdraw the proposed procurement of renewable
energy resources to be approved under the plan, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices using funds previously
collected from electric utilities' retail customers that take
service pursuant to electric utilities' hourly pricing tariff
or tariffs and, for an electric utility that serves less than
100,000 retail customers in the State, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices. Upon receipt of the
notice, the Commission shall enter an order that approves the
withdrawal of the proposed procurement of renewable energy
resources from the plan. The initially proposed procurement of
renewable energy resources shall not be approved or be the
subject of any further hearing, investigation, proceeding, or
order of any kind.
This amendatory Act of the 99th General Assembly preempts
and supersedes any order entered by the Commission that
approved the Illinois Power Agency's procurement plan for the
period commencing June 1, 2017, to the extent it is
inconsistent with the provisions of this amendatory Act of the
99th General Assembly. To the extent any previously entered

SB2552 - 153 - LRB103 31416 LNS 59082 b
order approved the procurement of renewable energy resources,
the portion of that order approving the procurement shall be
void, other than the procurement of renewable energy credits
from distributed renewable energy generation devices using
funds previously collected from electric utilities' retail
customers that take service under electric utilities' hourly
pricing tariff or tariffs and, for an electric utility that
serves less than 100,000 retail customers in the State, other
than the procurement of renewable energy credits for
distributed renewable energy generation devices.
(Source: P.A. 102-662, eff. 9-15-21.)
(220 ILCS 5/16-115)
Sec. 16-115. Certification of alternative retail electric
suppliers.
(a) Any alternative retail electric supplier must obtain a
certificate of service authority from the Commission in
accordance with this Section before serving any retail
customer or other user located in this State. An alternative
retail electric supplier may request, and the Commission may
grant, a certificate of service authority for the entire State
or for a specified geographic area of the State. A certificate
granted pursuant to this Section is not property, and the
grant of a certificate to an entity does not create a property
interest in the certificate. This Section does not diminish
the existing rights of a certificate holder to notice and

SB2552 - 154 - LRB103 31416 LNS 59082 b
hearing as proscribed by the Illinois Administrative Procedure
Act and in rules adopted by the Commission.
(b) An alternative retail electric supplier seeking a
certificate of service authority shall file with the
Commission a verified application containing information
showing that the applicant meets the requirements of this
Section. The alternative retail electric supplier shall
publish notice of its application in the official State
newspaper within 10 days following the date of its filing. No
later than 45 days after a complete application is properly
filed with the Commission, and such notice is published, the
Commission shall issue its order granting or denying the
application.
(c) An application for a certificate of service authority
shall identify the area or areas in which the applicant
intends to offer service and the types of services it intends
to offer. Applicants that seek to serve residential or small
commercial retail customers within a geographic area that is
smaller than an electric utility's service area shall submit
evidence demonstrating that the designation of this smaller
area does not violate Section 16-115A. An applicant that seeks
to serve residential or small commercial retail customers may
state in its application for certification any limitations
that will be imposed on the number of customers or maximum load
to be served.
(d) The Commission shall grant the application for a

SB2552 - 155 - LRB103 31416 LNS 59082 b
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application and
such other information as the applicant may submit:
(1) That the applicant possesses sufficient technical,
financial, and managerial resources and abilities to
provide the service for which it seeks a certificate of
service authority. In determining the level of technical,
financial, and managerial resources and abilities which
the applicant must demonstrate, the Commission shall
consider (i) the characteristics, including the size and
financial sophistication, of the customers that the
applicant seeks to serve, and (ii) whether the applicant
seeks to provide electric power and energy using property,
plant, and equipment which it owns, controls, or operates;
(2) That the applicant will comply with all applicable
federal, State, regional, and industry rules, policies,
practices, and procedures for the use, operation, and
maintenance of the safety, integrity, and reliability, of
the interconnected electric transmission system;
(3) That the applicant will only provide service to
retail customers in an electric utility's service area
that are eligible to take delivery services under this
Act;
(4) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish and provide the information required

SB2552 - 156 - LRB103 31416 LNS 59082 b
by Section 16-112. Any data related to contracts for the
purchase and sale of electric power and energy shall be
made available for review by the Staff of the Commission
on a confidential and proprietary basis and only to the
extent and for the purposes which the Commission
determines are reasonably necessary in order to carry out
the purposes of this Act;
(5) That the applicant will procure renewable energy
resources and comply with the capacity portfolio
requirement in accordance with Section 16-115D of this
Act, and will source electricity from clean coal
facilities, as defined in Section 1-10 of the Illinois
Power Agency Act, in amounts at least equal to the
percentages set forth in subsections (c) and (d) of
Section 1-75 of the Illinois Power Agency Act. For
purposes of this Section:
(i) (blank);
(ii) (blank);
(iii) the required sourcing of electricity
generated by clean coal facilities, other than the
initial clean coal facility, shall be limited to the
amount of electricity that can be procured or sourced
at a price at or below the benchmarks approved by the
Commission each year in accordance with item (1) of
subsection (c) and items (1) and (5) of subsection (d)
of Section 1-75 of the Illinois Power Agency Act;

SB2552 - 157 - LRB103 31416 LNS 59082 b
(iv) all alternative retail electric suppliers
shall execute a sourcing agreement to source
electricity from the initial clean coal facility, on
the terms set forth in paragraphs (3) and (4) of
subsection (d) of Section 1-75 of the Illinois Power
Agency Act, except that in lieu of the requirements in
subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
paragraph (3) of that subsection (d), the applicant
shall execute one or more of the following:
(1) if the sourcing agreement is a power
purchase agreement, a contract with the initial
clean coal facility to purchase in each hour an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatthours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatthours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the

SB2552 - 158 - LRB103 31416 LNS 59082 b
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act; or
(2) if the sourcing agreement is a contract
for differences, a contract with the initial clean
coal facility in each hour with respect to an
amount of electricity equal to all clean coal
energy made available from the initial clean coal
facility during such hour, which the utilities are
not required to procure under the terms of
subsection (d) of Section 1-75 of the Illinois
Power Agency Act, multiplied by a fraction, the
numerator of which is the alternative retail
electric supplier's retail market sales of
electricity (expressed in kilowatthours sold) in
the State during the prior calendar month and the
denominator of which is the total sales of
electricity (expressed in kilowatthours sold) in
the State by alternative retail electric suppliers
during such prior month that are subject to the
requirements of this paragraph (5) of subsection
(d) of this Section and subsection (d) of Section

SB2552 - 159 - LRB103 31416 LNS 59082 b
1-75 of the Illinois Power Agency Act plus the
total sales of electricity (expressed in
kilowatthours sold) by utilities outside of their
service areas during such prior month, pursuant to
subsection (c) of Section 16-116 of this Act;
(v) if, in any year after the first year of
commercial operation, the owner of the clean coal
facility fails to demonstrate to the Commission that
the initial clean coal facility captured and
sequestered at least 50% of the total carbon emissions
that the facility would otherwise emit or that
sequestration of emissions from prior years has
failed, resulting in the release of carbon into the
atmosphere, the owner of the facility must offset
excess emissions. Any such carbon offsets must be
permanent, additional, verifiable, real, located
within the State of Illinois, and legally and
practicably enforceable. The costs of any such offsets
that are not recoverable shall not exceed $15,000,000
in any given year. No costs of any such purchases of
carbon offsets may be recovered from an alternative
retail electric supplier or its customers. All carbon
offsets purchased for this purpose and any carbon
emission credits associated with sequestration of
carbon from the facility must be permanently retired.
The initial clean coal facility shall not forfeit its

SB2552 - 160 - LRB103 31416 LNS 59082 b
designation as a clean coal facility if the facility
fails to fully comply with the applicable carbon
sequestration requirements in any given year, provided
the requisite offsets are purchased. However, the
Attorney General, on behalf of the People of the State
of Illinois, may specifically enforce the facility's
sequestration requirement and the other terms of this
contract provision. Compliance with the sequestration
requirements and offset purchase requirements that
apply to the initial clean coal facility shall be
reviewed annually by an independent expert retained by
the owner of the initial clean coal facility, with the
advance written approval of the Attorney General;
(vi) The Commission shall, after notice and
hearing, revoke the certification of any alternative
retail electric supplier that fails to execute a
sourcing agreement with the initial clean coal
facility as required by item (5) of subsection (d) of
this Section. The sourcing agreements with this
initial clean coal facility shall be subject to both
approval of the initial clean coal facility by the
General Assembly and satisfaction of the requirements
of item (4) of subsection (d) of Section 1-75 of the
Illinois Power Agency Act, and shall be executed
within 90 days after any such approval by the General
Assembly. The Commission shall not accept an

SB2552 - 161 - LRB103 31416 LNS 59082 b
application for certification from an alternative
retail electric supplier that has lost certification
under this subsection (d), or any corporate affiliate
thereof, for at least one year from the date of
revocation;
(6) With respect to an applicant that seeks to serve
residential or small commercial retail customers, that the
area to be served by the applicant and any limitations it
proposes on the number of customers or maximum amount of
load to be served meet the provisions of Section 16-115A,
provided, that the Commission can extend the time for
considering such a certificate request by up to 90 days,
and can schedule hearings on such a request;
(7) That the applicant meets the requirements of
subsection (a) of Section 16-128;
(8) That the applicant discloses whether the applicant
is the subject of any lawsuit filed in a court of law or
formal complaint filed with a regulatory agency alleging
fraud, deception, or unfair marketing practices or other
similar allegations and, if the applicant is the subject
of such lawsuit or formal complaint, the applicant shall
identify the name, case number, and jurisdiction of each
lawsuit or complaint, and that the applicant is capable of
fulfilling its obligations as an alternative retail
electric supplier in Illinois notwithstanding any lawsuit
or complaint. For the purpose of this item (8), "formal

SB2552 - 162 - LRB103 31416 LNS 59082 b
complaint" includes only those complaints that seek a
binding determination from a State or federal regulatory
body;
(9) That the applicant shall at all times remain in
compliance with requirements for certification stated in
this Section and as the Commission may establish by rule;
(10) That the applicant shall execute and maintain a
license or permit bond issued by a qualifying surety or
insurance company authorized to transact business in the
State of Illinois in favor of the People of the State of
Illinois. The amount of the bond shall equal $30,000 if
the applicant seeks to serve only nonresidential retail
customers with maximum electrical demands of one megawatt
or more, $150,000 if the applicant seeks to serve only
nonresidential retail customers with annual electrical
consumption greater than 15,000 kilowatt-hours, or
$500,000 if the applicant seeks to serve all eligible
customers. Applicants shall be required to submit an
additional $500,000 bond if the applicant intends to
market to residential customers using in-person
solicitations. The bonds shall be conditioned upon the
full and faithful performance of all duties and
obligations of the applicant as an alternative retail
electric supplier, shall be valid for a period of not less
than one year, and may be drawn upon in whole or in part to
satisfy any penalties imposed, and finally adjudicated, by

SB2552 - 163 - LRB103 31416 LNS 59082 b
the Commission pursuant to Section 16-115B for a violation
of the applicant's duties or obligations, except that the
total amount of claims and penalties against the bond
shall not exceed the penal sum of the bond and shall not
include any consequential or punitive damage. The cost of
the bond shall be paid by the applicant. The applicant
shall file a copy of this bond, with a notarized
verification page from the issuer, as part of its
application for certification under 83 Ill. Adm. Code 451;
and
(11) That the applicant will comply with all other
applicable laws and regulations.
(d-3) The Commission may deny with prejudice an
application in which the applicant fails to provide the
Commission with information sufficient for the Commission to
grant the application.
(d-5) (Blank).
(e) A retail customer that owns a cogeneration or
self-generation facility and that seeks certification only to
provide electric power and energy from such facility to retail
customers at separate locations which customers are both (i)
owned by, or a subsidiary or other corporate affiliate of,
such applicant and (ii) eligible for delivery services, shall
be granted a certificate of service authority upon filing an
application and notifying the Commission that it has entered
into an agreement with the relevant electric utilities

SB2552 - 164 - LRB103 31416 LNS 59082 b
pursuant to Section 16-118. Provided, however, that if the
retail customer owning such cogeneration or self-generation
facility would not be charged a transition charge due to the
exemption provided under subsection (f) of Section 16-108
prior to the certification, and the retail customers at
separate locations are taking delivery services in conjunction
with purchasing power and energy from the facility, the retail
customer on whose premises the facility is located shall not
thereafter be required to pay transition charges on the power
and energy that such retail customer takes from the facility.
(f) The Commission shall have the authority to promulgate
rules and regulations to carry out the provisions of this
Section. On or before May 1, 1999, the Commission shall adopt a
rule or rules applicable to the certification of those
alternative retail electric suppliers that seek to serve only
nonresidential retail customers with maximum electrical
demands of one megawatt or more which shall provide for (i)
expedited and streamlined procedures for certification of such
alternative retail electric suppliers and (ii) specific
criteria which, if met by any such alternative retail electric
supplier, shall constitute the demonstration of technical,
financial and managerial resources and abilities to provide
service required by paragraph (1) of subsection (d) of this
Section, such as a requirement to post a bond or letter of
credit, from a responsible surety or financial institution, of
sufficient size for the nature and scope of the services to be

SB2552 - 165 - LRB103 31416 LNS 59082 b
provided; demonstration of adequate insurance for the scope
and nature of the services to be provided; and experience in
providing similar services in other jurisdictions.
(g) An alternative retail electric supplier may seek
confidential treatment for the following information by filing
an affidavit with the Commission so long as the affidavit
meets the requirements in this subsection (g):
(1) the total annual kilowatt-hours delivered and sold
by an alternative retail electric supplier to retail
customers within each utility service territory and the
total annual kilowatt-hours delivered and sold by an
alternative retail electric supplier to retail customers
in all utility service territories in the preceding
calendar year as required by 83 Ill. Adm. Code 451.770;
(2) the total peak demand supplied by an alternative
retail electric supplier during the previous year in each
utility service territory as required by 83 Ill. Adm. Code
465.40;
(3) a good faith estimate of the amount an alternative
retail electric supplier expects to be obliged to pay the
utility under single billing tariffs during the next 12
months and the amount of any bond or letter of credit used
to demonstrate an alternative retail electric supplier's
credit worthiness to provide single billing services
pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
The affidavit must be filed contemporaneously with the

SB2552 - 166 - LRB103 31416 LNS 59082 b
information for which confidential treatment is sought and
must clearly state that the affiant seeks confidential
treatment pursuant to this subsection (g) and the information
for which confidential treatment is sought must be clearly
identified on the confidential version of the document filed
with the Commission. The affidavit must be accompanied by a
"confidential" and a "public" version of the document or
documents containing the information for which confidential
treatment is sought.
If the alternative retail electric supplier has met the
affidavit requirements of this subsection (g), then the
Commission shall afford confidential treatment to the
information identified in the affidavit for a period of 2
years after the date the affidavit is received by the
Commission.
Nothing in this subsection (g) prevents an alternative
retail electric supplier from filing a petition with the
Commission seeking confidential treatment for information
beyond that identified in this subsection (g) or for
information contained in other reports or documents filed with
the Commission other than annual rate reports.
Nothing in this subsection (g) prevents the Commission, on
its own motion, or any party from filing a formal petition with
the Commission seeking to reconsider the conferring of
confidential status on an item of information afforded
confidential treatment pursuant to this subsection (g).

SB2552 - 167 - LRB103 31416 LNS 59082 b
The Commission, on its own motion, may at any time
initiate a docketed proceeding to investigate the continued
applicability of this subsection (g) to the information
contained in items (i), (ii), and (iii) of this subsection
(g). If, at the end of such investigation, the Commission
determines that a particular item of information should no
longer be eligible for the affidavit-based process outlined in
this subsection (g), the Commission may enter an order to
remove that item from the list of items eligible for the
process set forth in this subsection (g). Notwithstanding any
such order, in the event the Commission makes such a
determination, nothing in this subsection (g) prevents an
alternative retail electric supplier desiring confidential
treatment for such information from filing a formal petition
with the Commission seeking confidential treatment for such
information.
(Source: P.A. 101-590, eff. 1-1-20; 102-958, eff. 1-1-23.)
(220 ILCS 5/16-115D)
Sec. 16-115D. Renewable portfolio standard for alternative
retail electric suppliers and electric utilities operating
outside their service territories.
(a) An alternative retail electric supplier shall be
responsible for procuring cost-effective renewable energy
resources as required under item (5) of subsection (d) of
Section 16-115 of this Act as outlined herein:

SB2552 - 168 - LRB103 31416 LNS 59082 b
(1) The definition of renewable energy resources
contained in Section 1-10 of the Illinois Power Agency Act
applies to all renewable energy resources required to be
procured by alternative retail electric suppliers.
(2) Through May 31, 2017, the quantity of renewable
energy resources shall be measured as a percentage of the
actual amount of metered electricity (megawatt-hours)
delivered by the alternative retail electric supplier to
Illinois retail customers during the 12-month period June
1 through May 31, commencing June 1, 2009, and the
comparable 12-month period in each year thereafter except
as provided in item (6) of this subsection (a).
(3) Through May 31, 2017, the quantity of renewable
energy resources shall be in amounts at least equal to the
annual percentages set forth in item (1) of subsection (c)
of Section 1-75 of the Illinois Power Agency Act. At least
60% of the renewable energy resources procured pursuant to
items (1) and (3) of subsection (b) of this Section shall
come from wind generation and, starting June 1, 2015, at
least 6% of the renewable energy resources procured
pursuant to items (1) and (3) of subsection (b) of this
Section shall come from solar photovoltaics. If, in any
given year, an alternative retail electric supplier does
not purchase at least these levels of renewable energy
resources, then the alternative retail electric supplier
shall make alternative compliance payments, as described

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in subsection (d) of this Section.
(3.5) For the delivery year commencing June 1, 2017,
the quantity of renewable energy resources shall be at
least 13.0% of the uncovered amount of metered electricity
(megawatt-hours) delivered by the alternative retail
electric supplier to Illinois retail customers during the
delivery year, which uncovered amount shall equal 50% of
such metered electricity delivered by the alternative
retail electric supplier. For the delivery year commencing
June 1, 2018, the quantity of renewable energy resources
shall be at least 14.5% of the uncovered amount of metered
electricity (megawatt-hours) delivered by the alternative
retail electric supplier to Illinois retail customers
during the delivery year, which uncovered amount shall
equal 25% of such metered electricity delivered by the
alternative retail electric supplier. At least 32% of the
renewable energy resources procured by the alternative
retail electric supplier for its uncovered portion under
this paragraph (3.5) shall come from wind or photovoltaic
generation. The renewable energy resources procured under
this paragraph (3.5) shall not include any resources from
a facility whose costs were being recovered through rates
regulated by any state or states on or after January 1,
2017.
(4) The quantity and source of renewable energy
resources shall be independently verified through the PJM

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Environmental Information System Generation Attribute
Tracking System (PJM-GATS) or the Midwest Renewable Energy
Tracking System (M-RETS), which shall document the
location of generation, resource type, month, and year of
generation for all qualifying renewable energy resources
that an alternative retail electric supplier uses to
comply with this Section. No later than June 1, 2009, the
Illinois Power Agency shall provide PJM-GATS, M-RETS, and
alternative retail electric suppliers with all information
necessary to identify resources located in Illinois,
within states that adjoin Illinois or within portions of
the PJM and MISO footprint in the United States that
qualify under the definition of renewable energy resources
in Section 1-10 of the Illinois Power Agency Act for
compliance with this Section 16-115D. Alternative retail
electric suppliers shall not be subject to the
requirements in item (3) of subsection (c) of Section 1-75
of the Illinois Power Agency Act.
(5) All renewable energy credits used to comply with
this Section shall be permanently retired.
(6) The required procurement of renewable energy
resources by an alternative retail electric supplier shall
apply to all metered electricity delivered to Illinois
retail customers by the alternative retail electric
supplier pursuant to contracts executed or extended after
March 15, 2009.

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(b) Compliance obligations.
(1) Through May 31, 2017, an alternative retail
electric supplier shall comply with the renewable energy
portfolio standards by making an alternative compliance
payment, as described in subsection (d) of this Section,
to cover at least one-half of the alternative retail
electric supplier's compliance obligation for the period
prior to June 1, 2017.
(2) For the delivery years beginning June 1, 2017 and
June 1, 2018, an alternative retail electric supplier need
not make any alternative compliance payment to meet any
portion of its compliance obligation, as set forth in
paragraph (3.5) of subsection (a) of this Section.
(3) An alternative retail electric supplier shall use
any one or combination of the following means to cover the
remainder of the alternative retail electric supplier's
compliance obligation, as set forth in paragraphs (3) and
(3.5) of subsection (a) of this Section, not covered by an
alternative compliance payment made under paragraphs (1)
and (2) of this subsection (b) of this Section:
(A) Generating electricity using renewable energy
resources identified pursuant to item (4) of
subsection (a) of this Section.
(B) Purchasing electricity generated using
renewable energy resources identified pursuant to item
(4) of subsection (a) of this Section through an

SB2552 - 172 - LRB103 31416 LNS 59082 b
energy contract.
(C) Purchasing renewable energy credits from
renewable energy resources identified pursuant to item
(4) of subsection (a) of this Section.
(D) Making an alternative compliance payment as
described in subsection (d) of this Section.
(c) Use of renewable energy credits.
(1) Renewable energy credits that are not used by an
alternative retail electric supplier to comply with a
renewable portfolio standard in a compliance year may be
banked and carried forward up to 2 12-month compliance
periods after the compliance period in which the credit
was generated for the purpose of complying with a
renewable portfolio standard in those 2 subsequent
compliance periods. For the 2009-2010 and 2010-2011
compliance periods, an alternative retail electric
supplier may use renewable credits generated after
December 31, 2008 and before June 1, 2009 to comply with
this Section.
(2) An alternative retail electric supplier is
responsible for demonstrating that a renewable energy
credit used to comply with a renewable portfolio standard
is derived from a renewable energy resource and that the
alternative retail electric supplier has not used, traded,
sold, or otherwise transferred the credit.
(3) The same renewable energy credit may be used by an

SB2552 - 173 - LRB103 31416 LNS 59082 b
alternative retail electric supplier to comply with a
federal renewable portfolio standard and a renewable
portfolio standard established under this Act. An
alternative retail electric supplier that uses a renewable
energy credit to comply with a renewable portfolio
standard imposed by any other state may not use the same
credit to comply with a renewable portfolio standard
established under this Act.
(d) Alternative compliance payments.
(1) The Commission shall establish and post on its
website, within 5 business days after entering an order
approving a procurement plan pursuant to Section 1-75 of
the Illinois Power Agency Act, maximum alternative
compliance payment rates, expressed on a per kilowatt-hour
basis, that will be applicable in the first compliance
period following the plan approval. A separate maximum
alternative compliance payment rate shall be established
for the service territory of each electric utility that is
subject to subsection (c) of Section 1-75 of the Illinois
Power Agency Act. Each maximum alternative compliance
payment rate shall be equal to the maximum allowable
annual estimated average net increase due to the costs of
the utility's purchase of renewable energy resources
included in the amounts paid by eligible retail customers
in connection with electric service, as described in item
(2) of subsection (c) of Section 1-75 of the Illinois

SB2552 - 174 - LRB103 31416 LNS 59082 b
Power Agency Act for the compliance period, and as
established in the approved procurement plan. Following
each procurement event through which renewable energy
resources are purchased for one or more of these utilities
for the compliance period, the Commission shall establish
and post on its website estimates of the alternative
compliance payment rates, expressed on a per kilowatt-hour
basis, that shall apply for that compliance period.
Posting of the estimates shall occur no later than 10
business days following the procurement event, however,
the Commission shall not be required to establish and post
such estimates more often than once per calendar month. By
July 1 of each year, the Commission shall establish and
post on its website the actual alternative compliance
payment rates for the preceding compliance year. For
compliance years beginning prior to June 1, 2014, each
alternative compliance payment rate shall be equal to the
total amount of dollars that the utility contracted to
spend on renewable resources, excepting the additional
incremental cost attributable to solar resources, for the
compliance period divided by the forecasted load of
eligible retail customers, at the customers' meters, as
previously established in the Commission-approved
procurement plan for that compliance year. For compliance
years commencing on or after June 1, 2014, each
alternative compliance payment rate shall be equal to the

SB2552 - 175 - LRB103 31416 LNS 59082 b
total amount of dollars that the utility contracted to
spend on all renewable resources for the compliance period
divided by the forecasted load of retail customers for
which the utility is procuring renewable energy resources
in a given delivery year, at the customers' meters, as
previously established in the Commission-approved
procurement plan for that compliance year. The actual
alternative compliance payment rates may not exceed the
maximum alternative compliance payment rates established
for the compliance period. For purposes of this subsection
(d), the term "eligible retail customers" has the same
meaning as found in Section 16-111.5 of this Act.
(2) In any given compliance year, an alternative
retail electric supplier may elect to use alternative
compliance payments to comply with all or a part of the
applicable renewable portfolio standard. In the event that
an alternative retail electric supplier elects to make
alternative compliance payments to comply with all or a
part of the applicable renewable portfolio standard, such
payments shall be made by September 1, 2010 for the period
of June 1, 2009 to May 1, 2010 and by September 1 of each
year thereafter for the subsequent compliance period, in
the manner and form as determined by the Commission. Any
election by an alternative retail electric supplier to use
alternative compliance payments is subject to review by
the Commission under subsection (e) of this Section.

SB2552 - 176 - LRB103 31416 LNS 59082 b
(3) An alternative retail electric supplier's
alternative compliance payments shall be computed
separately for each electric utility's service territory
within which the alternative retail electric supplier
provided retail service during the compliance period,
provided that the electric utility was subject to
subsection (c) of Section 1-75 of the Illinois Power
Agency Act. For each service territory, the alternative
retail electric supplier's alternative compliance payment
shall be equal to (i) the actual alternative compliance
payment rate established in item (1) of this subsection
(d), multiplied by (ii) the actual amount of metered
electricity delivered by the alternative retail electric
supplier to retail customers for which the supplier has a
compliance obligation within the service territory during
the compliance period, multiplied by (iii) the result of
one minus the ratios of the quantity of renewable energy
resources used by the alternative retail electric supplier
to comply with the requirements of this Section within the
service territory to the product of the percentage of
renewable energy resources required under item (3) or
(3.5) of subsection (a) of this Section and the actual
amount of metered electricity delivered by the alternative
retail electrical supplier to retail customers for which
the supplier has a compliance obligation within the
service territory during the compliance period.

SB2552 - 177 - LRB103 31416 LNS 59082 b
(4) Through May 31, 2017, all alternative compliance
payments by alternative retail electric suppliers shall be
deposited in the Illinois Power Agency Renewable Energy
Resources Fund and used to purchase renewable energy
credits, in accordance with Section 1-56 of the Illinois
Power Agency Act. Beginning April 1, 2012 and by April 1 of
each year thereafter, the Illinois Power Agency shall
submit an annual report to the General Assembly, the
Commission, and alternative retail electric suppliers that
shall include, but not be limited to:
(A) the total amount of alternative compliance
payments received in aggregate from alternative retail
electric suppliers by planning year for all previous
planning years in which the alternative compliance
payment was in effect;
(B) the amount of those payments utilized to
purchased renewable energy credits itemized by the
date of each procurement in which the payments were
utilized; and
(C) the unused and remaining balance in the Agency
Renewable Energy Resources Fund attributable to those
payments.
(4.5) Beginning with the delivery year commencing June
1, 2017, all alternative compliance payments by
alternative retail electric suppliers shall be remitted to
the applicable electric utility. To facilitate this

SB2552 - 178 - LRB103 31416 LNS 59082 b
remittance, each electric utility shall file a tariff with
the Commission no later than 30 days following the
effective date of this amendatory Act of the 99th General
Assembly, which the Commission shall approve, after notice
and hearing, no later than 45 days after its filing. The
Illinois Power Agency shall use such payments to increase
the amount of renewable energy resources otherwise to be
procured under subsection (c) of Section 1-75 of the
Illinois Power Agency Act.
(5) The Commission, in consultation with the Illinois
Power Agency, shall establish a process or proceeding to
consider the impact of a federal renewable portfolio
standard, if enacted, on the operation of the alternative
compliance mechanism, which shall include, but not be
limited to, developing, to the extent permitted by the
applicable federal statute, an appropriate methodology to
apportion renewable energy credits retired as a result of
alternative compliance payments made in accordance with
this Section. The Commission shall commence any such
process or proceeding within 35 days after enactment of a
federal renewable portfolio standard.
(e) Each alternative retail electric supplier shall, by
September 1, 2010 and by September 1 of each year thereafter,
prepare and submit to the Commission a report, in a format to
be specified by the Commission, that provides information
certifying compliance by the alternative retail electric

SB2552 - 179 - LRB103 31416 LNS 59082 b
supplier with this Section, including copies of all PJM-GATS
and M-RETS reports, and documentation relating to banking,
retiring renewable energy credits, and any other information
that the Commission determines necessary to ensure compliance
with this Section.
An alternative retail electric supplier may file
commercially or financially sensitive information or trade
secrets with the Commission as provided under the rules of the
Commission. To be filed confidentially, the information shall
be accompanied by an affidavit that sets forth both the
reasons for the confidentiality and a public synopsis of the
information.
(e-5) Each alternative retail electric supplier shall make
payment to an applicable electric utility for capacity,
receive transfers of capacity credits, timely report capacity
credits procured on its behalf to the applicable regional
transmission organization, and submit the capacity credits to
the applicable regional transmission organization under that
regional transmission organization's rules and procedures, in
all respects as set out in subsection (b-10) of Section
16-111.5. The Commission shall have authority to adopt rules
for the certification by alternative retail electric suppliers
of their ongoing compliance with the requirements in this
subsection.
(f) The Commission may initiate a contested case to review
allegations that the alternative retail electric supplier has

SB2552 - 180 - LRB103 31416 LNS 59082 b
violated this Section, including an order issued or rule
promulgated under this Section. In any such proceeding, the
alternative retail electric supplier shall have the burden of
proof. If the Commission finds, after notice and hearing, that
an alternative retail electric supplier has violated this
Section, then the Commission shall issue an order requiring
the alternative retail electric supplier to:
(1) immediately comply with this Section; and
(2) if the violation involves a failure to procure the
requisite quantity of renewable energy resources or pay
the applicable alternative compliance payment by the
annual deadline, the Commission shall require the
alternative retail electric supplier to double the
applicable alternative compliance payment that would
otherwise be required to bring the alternative retail
electric supplier into compliance with this Section.
If an alternative retail electric supplier fails to comply
with the renewable energy resource portfolio requirement or
capacity portfolio requirement in this Section more than once
in a 5-year period, then the Commission shall revoke the
alternative electric supplier's certificate of service
authority. The Commission shall not accept an application for
a certificate of service authority from an alternative retail
electric supplier that has lost certification under this
subsection (f), or any corporate affiliate thereof, for at
least one year after the date of revocation.

SB2552 - 181 - LRB103 31416 LNS 59082 b
(g) All of the provisions of this Section apply to
electric utilities operating outside their service area except
under item (2) of subsection (a) of this Section the quantity
of renewable energy resources shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied in the State outside of the
utility's service territory during the 12-month period June 1
through May 31, commencing June 1, 2009, and the comparable
12-month period in each year thereafter except as provided in
item (6) of subsection (a) of this Section.
If any such utility fails to procure the requisite
quantity of renewable energy resources by the annual deadline,
then the Commission shall require the utility to double the
alternative compliance payment that would otherwise be
required to bring the utility into compliance with this
Section.
If any such utility fails to comply with the renewable
energy resource portfolio requirement in this Section more
than once in a 5-year period, then the Commission shall order
the utility to cease all sales outside of the utility's
service territory for a period of at least one year.
(h) The provisions of this Section and the provisions of
subsection (d) of Section 16-115 of this Act relating to
procurement of renewable energy resources shall not apply to
an alternative retail electric supplier that operates a
combined heat and power system in this State or that has a

SB2552 - 182 - LRB103 31416 LNS 59082 b
corporate affiliate that operates such a combined heat and
power system in this State that supplies electricity primarily
to or for the benefit of: (i) facilities owned by the supplier,
its subsidiary, or other corporate affiliate; (ii) facilities
electrically integrated with the electrical system of
facilities owned by the supplier, its subsidiary, or other
corporate affiliate; or (iii) facilities that are adjacent to
the site on which the combined heat and power system is
located.
(i) The obligations of alternative retail electric
suppliers and electric utilities operating outside their
service territories to procure renewable energy resources,
make alternative compliance payments, and file annual reports,
and the obligations of the Commission to determine and post
alternative compliance payment rates, shall terminate after
May 31, 2019, provided that alternative retail electric
suppliers and electric utilities operating outside their
service territories shall be obligated to make all alternative
compliance payments that they were obligated to pay for
periods through and including May 31, 2019, but were not paid
as of that date. The Commission shall continue to enforce the
payment of unpaid alternative compliance payments in
accordance with subsections (f) and (g) of this Section. All
alternative compliance payments made after May 31, 2016 shall
be remitted to the applicable electric utility and used to
purchase renewable energy credits, in accordance with Section

SB2552 - 183 - LRB103 31416 LNS 59082 b
1-75 of the Illinois Power Agency Act.
This subsection (i) is intended to accommodate the
transition to the procurement of renewable energy resources
for all retail customers in the amounts specified under
subsection (c) of Section 1-75 of the Illinois Power Agency
Act and Section 16-111.5 of this Act, including but not
limited to the transition to a single charge applicable to all
retail customers to recover the costs of these resources. Each
alternative retail electric supplier shall certify in its
annual reports filed pursuant to subsection (e) of this
Section after May 31, 2019, that its retail customers are not
paying the costs of alternative compliance payments or
renewable energy resources that the alternative retail
electric supplier is not required to remit or purchase under
this Section. The Commission shall have the authority to
initiate an emergency rulemaking to adopt rules regarding such
certification.
(Source: P.A. 99-906, eff. 6-1-17.)
SB2552 - 184 - LRB103 31416 LNS 59082 b
INDEX
Statutes amended in order of appearance