Bill Text: IL SB3426 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Creates the Energy and Environmental Security Act. Contains legislative findings. Amends the Illinois Finance Authority Act. Provides that the aggregate amount of bonds that may be issued by the Illinois Finance Authority for Clean Coal Projects may also be used to finance certain Qualified Clean Coal Projects. Creates the Clean Coal Technology Development and Utilization Fund. Provides that the Fund shall be used by the Illinois Finance Authority to administer the Agency's responsibilities to support the financing and installation of qualified clean coal projects. Amends the Illinois Power Agency Act. Contains provisions concerning diverse energy portfolio standards. Provides that nothing in the Act prohibits the Agency from taking title to indigenous or bituminous coal in order to fulfill any purpose enumerated by this Act. Amends the Public Utilities Act. Makes changes concerning procurement and certificates of service authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-05-11 - Referred to Assignments [SB3426 Detail]
Download: Illinois-2015-SB3426-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | ARTICLE 1. SHORT TITLE; LEGISLATIVE FINDINGS. | ||||||||||||||||||||||||||||||||||||||||||||
5 | Section 1-1. Short title. This Act may be cited as the | ||||||||||||||||||||||||||||||||||||||||||||
6 | Energy and Environmental Security Act.
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7 | Section 1-5. Diverse Energy Portfolio Standards; | ||||||||||||||||||||||||||||||||||||||||||||
8 | legislative findings. The General Assembly finds and declares | ||||||||||||||||||||||||||||||||||||||||||||
9 | the following: | ||||||||||||||||||||||||||||||||||||||||||||
10 | (1) Currently, Illinois has the most diverse portfolio | ||||||||||||||||||||||||||||||||||||||||||||
11 | of electrical generating units of any state in the United | ||||||||||||||||||||||||||||||||||||||||||||
12 | States. That portfolio consists of the following: (i) | ||||||||||||||||||||||||||||||||||||||||||||
13 | nuclear plants, which constitute 48% of the generation | ||||||||||||||||||||||||||||||||||||||||||||
14 | statewide; (ii) coal-fired plants, which constitute 41% of | ||||||||||||||||||||||||||||||||||||||||||||
15 | the generation statewide; (iii) renewables, which | ||||||||||||||||||||||||||||||||||||||||||||
16 | constitute 5% of the generation statewide; (iv) natural | ||||||||||||||||||||||||||||||||||||||||||||
17 | gas, which constitutes 4.5% of the generation statewide; | ||||||||||||||||||||||||||||||||||||||||||||
18 | and (v) hydro and petroleum fired units which constitute | ||||||||||||||||||||||||||||||||||||||||||||
19 | 1.4% of the generation statewide. Illinois must focus on | ||||||||||||||||||||||||||||||||||||||||||||
20 | maintaining existing electric utility generating units to | ||||||||||||||||||||||||||||||||||||||||||||
21 | the maximum extent possible in order to retain the State's | ||||||||||||||||||||||||||||||||||||||||||||
22 | position as a net exporter of electricity and to keep |
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1 | in-state electricity reliable and affordable. | ||||||
2 | (2) As the General Assembly considers emissions | ||||||
3 | reductions it must take into account the regulatory impacts | ||||||
4 | to the environment and to the economy of Illinois and the | ||||||
5 | public policy of Illinois to produce electricity in an | ||||||
6 | economically sound manner while also maintaining Illinois' | ||||||
7 | electric system reliability. | ||||||
8 | (3) The future energy policy of Illinois must ensure | ||||||
9 | continued access to adequate, reliable, affordable, | ||||||
10 | efficient, and environmentally sustainable electric | ||||||
11 | service at the lowest total cost per kilowatt hour over | ||||||
12 | time, taking into account the benefits of price stability | ||||||
13 | to Illinois consumers. | ||||||
14 | (4) According to the United States Energy Information | ||||||
15 | Administration, the emission factors for bituminous coal | ||||||
16 | range from a low of 202.8 pounds of carbon dioxide per | ||||||
17 | million Btu in Ohio to a high of 210.2 pounds of carbon | ||||||
18 | dioxide per million Btu in Maryland. For Illinois Basin | ||||||
19 | coal, all bituminous in rank, the emission factors are | ||||||
20 | relatively uniform, ranging from 203.2 in western Kentucky | ||||||
21 | to 203.6 in Indiana. In coal basins in the Western United | ||||||
22 | States, the emission factors for bituminous coal range from | ||||||
23 | more than 201 pounds of carbon dioxide per million Btu in | ||||||
24 | Missouri, Iowa, and Nevada to more than 209 in Arizona, | ||||||
25 | Arkansas, and Montana. | ||||||
26 | (5) Bituminous coal is found in every coal basin in the |
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1 | United States, and, in general, the carbon dioxide emission | ||||||
2 | factors are lowest for coal produced in states east of the | ||||||
3 | Mississippi River, where the predominant coals are | ||||||
4 | bituminous in rank and therefore have relatively low | ||||||
5 | emission factors. | ||||||
6 | (6) The Energy Information Administration analysis | ||||||
7 | confirmed the long-recognized finding that anthracite | ||||||
8 | emits the largest amount of carbon dioxide per million Btu, | ||||||
9 | followed by lignite, subbituminous coal, and bituminous | ||||||
10 | coal. The average factors in the United States are 227.4 | ||||||
11 | for anthracite, 216.3 for lignite, 211.9 for subbituminous | ||||||
12 | coal, and 205.3 for bituminous coal. | ||||||
13 | (7) By utilizing bituminous coal, Illinois electric | ||||||
14 | utility generating units will have the opportunity to | ||||||
15 | utilize less coal to generate the same number of Btus while | ||||||
16 | reducing carbon dioxide emissions in a way intended to | ||||||
17 | permit Illinois to maintain its existing diverse portfolio | ||||||
18 | of electric utility generating units. A diverse and | ||||||
19 | reliable electric utility generating unit portfolio | ||||||
20 | provides Illinois consumers with reliable and affordable | ||||||
21 | electric service at the lowest total cost per kilowatt hour | ||||||
22 | over the long-term.
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23 | ARTICLE 5. AMENDATORY PROVISIONS | ||||||
24 | Section 5-5. The Illinois Finance Authority Act is amended |
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1 | by changing Sections 825-65, 825-70, and 825-75 and by adding | ||||||
2 | Section 825-120 as follows:
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3 | (20 ILCS 3501/825-65) | ||||||
4 | Sec. 825-65. Clean Coal, Coal, Qualified Clean Coal, Energy | ||||||
5 | Efficiency, and Renewable Energy Project Financing. | ||||||
6 | (a) Findings and declaration of policy. | ||||||
7 | (i) It is hereby found and declared that
Illinois has | ||||||
8 | abundant coal resources and, in some areas of Illinois, the | ||||||
9 | demand
for power exceeds the generating capacity. | ||||||
10 | Incentives to encourage the
construction of coal-fueled | ||||||
11 | electric generating plants in Illinois to ensure
power | ||||||
12 | generating capacity into the future and to advance clean | ||||||
13 | coal technology and the use of Illinois coal are in the | ||||||
14 | best interests of all of
the citizens of Illinois. | ||||||
15 | (ii) It is further found and declared that Illinois has | ||||||
16 | abundant potential and resources to develop renewable | ||||||
17 | energy resource projects and that there are many | ||||||
18 | opportunities to invest in cost-effective energy | ||||||
19 | efficiency projects throughout the State. The development | ||||||
20 | of those projects will create jobs and investment as well | ||||||
21 | as decrease environmental impacts and promote energy | ||||||
22 | independence in Illinois. Accordingly, the development of | ||||||
23 | those projects is in the best interests of all of the | ||||||
24 | citizens of Illinois. | ||||||
25 | (iii) The Authority is authorized to issue bonds to |
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1 | help
finance Clean Coal, Qualified Clean Coal, Coal, Energy | ||||||
2 | Efficiency, and Renewable Energy projects pursuant to this
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3 | Section. | ||||||
4 | (b) Definitions. | ||||||
5 | (i) "Clean Coal Project" means (A) "clean coal | ||||||
6 | facility", as defined in Section 1-10 of the Illinois Power | ||||||
7 | Agency Act; (B) "clean coal SNG facility", as defined in | ||||||
8 | Section 1-10 of the Illinois Power Agency Act; (C) | ||||||
9 | transmission lines and associated equipment that transfer | ||||||
10 | electricity from points of supply to points of delivery for | ||||||
11 | projects described in this subsection (b); (D) pipelines or | ||||||
12 | other methods to transfer carbon dioxide from the point of | ||||||
13 | production to the point of storage or sequestration for | ||||||
14 | projects described in this subsection (b); or (E) projects | ||||||
15 | to provide carbon abatement technology for existing | ||||||
16 | generating facilities. | ||||||
17 | (ii) "Coal Project" means new electric
generating | ||||||
18 | facilities or new gasification facilities, as defined in
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19 | Section 605-332 of the Department of Commerce and
Economic | ||||||
20 | Opportunity Law of the Civil Administrative Code of | ||||||
21 | Illinois, which
may
include mine-mouth power plants, | ||||||
22 | projects that employ the use of clean coal
technology, | ||||||
23 | projects to provide scrubber technology for existing | ||||||
24 | energy
generating plants, or projects to provide electric | ||||||
25 | transmission facilities or new gasification facilities. | ||||||
26 | (iii) "Energy Efficiency Project" means measures that |
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1 | reduce the amount of electricity or natural gas required to | ||||||
2 | achieve a given end use, consistent with Section 1-10 of | ||||||
3 | the Illinois Power Agency Act. "Energy Efficiency Project" | ||||||
4 | also includes measures that reduce the total Btus of | ||||||
5 | electricity and natural gas needed to meet the end use or | ||||||
6 | uses consistent with Section 1-10 of the Illinois Power | ||||||
7 | Agency Act. | ||||||
8 | (iv) "Renewable Energy Project" means (A) a project | ||||||
9 | that uses renewable energy resources, as defined in Section | ||||||
10 | 1-10 of the Illinois Power Agency Act; (B) a project that | ||||||
11 | uses environmentally preferable technologies and practices | ||||||
12 | that result in improvements to the production of renewable | ||||||
13 | fuels, including but not limited to, cellulosic | ||||||
14 | conversion, water and energy conservation, fractionation, | ||||||
15 | alternative feedstocks, or reduced green house gas | ||||||
16 | emissions; (C) transmission lines and associated equipment | ||||||
17 | that transfer electricity from points of supply to points | ||||||
18 | of delivery for projects described in this subsection (b); | ||||||
19 | or (D) projects that use technology for the storage of | ||||||
20 | renewable energy, including, without limitation, the use | ||||||
21 | of battery or electrochemical storage technology for | ||||||
22 | mobile or stationary applications. | ||||||
23 | (v) "Qualified Clean Coal Project" means a project | ||||||
24 | located at a generating facility that uses or seeks to use | ||||||
25 | qualified pollution control equipment, as defined in | ||||||
26 | Section 1-10 of the Illinois Power Agency Act, to qualify |
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1 | as a qualified clean coal facility as defined in Section | ||||||
2 | 1-10 of the Illinois Power Agency Act. | ||||||
3 | (c) Creation of reserve funds. The Authority may establish | ||||||
4 | and maintain one
or more reserve funds to enhance bonds issued | ||||||
5 | by the Authority for a Clean Coal Project, a Coal Project, an | ||||||
6 | Energy Efficiency Project, a Qualified Clean Coal Project, or a | ||||||
7 | Renewable
Energy Project.
There may be one or more accounts in | ||||||
8 | these reserve funds in which there may be
deposited: | ||||||
9 | (1) any proceeds of the bonds issued by the Authority | ||||||
10 | required to
be deposited therein by the terms of any | ||||||
11 | contract between the Authority and its
bondholders or any | ||||||
12 | resolution of the Authority; | ||||||
13 | (2) any other moneys or funds of the Authority that it | ||||||
14 | may
determine to deposit therein from any other source; and | ||||||
15 | (3) any other moneys or funds made available to the | ||||||
16 | Authority.
Subject to the terms of any pledge to the owners | ||||||
17 | of any bonds, moneys in any
reserve fund may be held and | ||||||
18 | applied to the payment of principal, premium, if
any, and | ||||||
19 | interest of such bonds. | ||||||
20 | (d) Powers and duties. The Authority has the power: | ||||||
21 | (1) To issue bonds in one or more series pursuant to | ||||||
22 | one or more
resolutions of the Authority for any Clean Coal | ||||||
23 | Project, Coal Project, Energy Efficiency Project, | ||||||
24 | Qualified Clean Coal Project, or Renewable Energy Project | ||||||
25 | authorized
under this Section, within the authorization | ||||||
26 | set forth in subsection (e). |
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1 | (2) To provide for the funding of any reserves or other | ||||||
2 | funds or
accounts deemed necessary by the Authority in | ||||||
3 | connection with any bonds issued
by the Authority. | ||||||
4 | (3) To pledge any funds of the Authority or funds made | ||||||
5 | available to
the Authority that may be applied to such | ||||||
6 | purpose as security for any bonds or
any guarantees, | ||||||
7 | letters of credit, insurance contracts or similar credit
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8 | support
or liquidity instruments securing the bonds. | ||||||
9 | (4) To enter into agreements or contracts with third | ||||||
10 | parties,
whether public or private, including, without | ||||||
11 | limitation, the United States of
America, the State or any | ||||||
12 | department or agency thereof, to obtain any
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13 | appropriations, grants, loans or guarantees that are | ||||||
14 | deemed necessary or
desirable by the Authority. Any such | ||||||
15 | guarantee, agreement or contract may
contain terms and | ||||||
16 | provisions necessary or desirable in connection with the
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17 | program, subject to the requirements established by the | ||||||
18 | Act. | ||||||
19 | (5) To exercise such other powers as are necessary or | ||||||
20 | incidental to
the foregoing. | ||||||
21 | (e) Clean Coal Project, Coal Project, Energy Efficiency | ||||||
22 | Project, Qualified Clean Coal Project, and Renewable Energy | ||||||
23 | Project bond authorization and financing limits. In
addition
to | ||||||
24 | any other bonds authorized to be issued under
Sections | ||||||
25 | 801-40(w), 825-60, 830-25
and 845-5, the Authority may have | ||||||
26 | outstanding, at any time, bonds for the
purpose
enumerated in |
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1 | this
Section 825-65 in an aggregate principal amount that shall | ||||||
2 | not
exceed $3,000,000,000, subject to the following | ||||||
3 | limitations: (i) up to $300,000,000 may be issued to
finance | ||||||
4 | projects, as described in clause (C) of subsection (b)(i) and | ||||||
5 | clause (C) of subsection (b)(iv) of this Section 825-65; (ii) | ||||||
6 | up to $500,000,000 may be issued to
finance projects, as | ||||||
7 | described in clauses (D) and (E) of subsection (b)(i) of this | ||||||
8 | Section 825-65; (iii) up to $2,000,000,000 may
be issued to | ||||||
9 | finance Clean Coal Projects, as described in clauses (A) and | ||||||
10 | (B) of subsection (b)(i) of this Section 825-65 , and Coal | ||||||
11 | Projects, as described in subsection (b)(ii) of this Section | ||||||
12 | 825-65 , and for a Qualified Clean Coal Project, as described in | ||||||
13 | paragraph (v) of subsection (b) of this Section ; and (iv) up to | ||||||
14 | $2,000,000,000 may be issued to finance Energy Efficiency | ||||||
15 | Projects, as described in subsection (b)(iii) of this Section | ||||||
16 | 825-65 and Renewable Energy Projects, as described in clauses | ||||||
17 | (A), (B), and (D) of subsection (b)(iii) of this Section | ||||||
18 | 825-65. An application for a loan
financed from bond proceeds | ||||||
19 | from a borrower or its affiliates for a Clean Coal Project, a | ||||||
20 | Coal Project, Energy Efficiency Project, or a Renewable
Energy | ||||||
21 | Project may not be approved by the Authority for an amount in | ||||||
22 | excess
of $450,000,000 for any borrower or its affiliates. A | ||||||
23 | Clean Coal Project , Qualified Clean Coal Project, or Coal | ||||||
24 | Project must be located within the State. An Energy Efficiency | ||||||
25 | Project may be located within the State or outside the State, | ||||||
26 | provided that, if the Energy Efficiency Project is located |
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1 | outside of the State, it must be owned, operated, leased, or | ||||||
2 | managed by an entity located within the State or any entity | ||||||
3 | affiliated with an entity located within the State. These bonds | ||||||
4 | shall not
constitute an indebtedness or obligation of the State | ||||||
5 | of Illinois and it shall
be plainly stated on the face of each | ||||||
6 | bond that it does not constitute an
indebtedness or obligation | ||||||
7 | of the State of Illinois, but is payable solely from
the | ||||||
8 | revenues, income or other assets of the Authority pledged | ||||||
9 | therefor. | ||||||
10 | (f) The bonding authority granted under this Section is in | ||||||
11 | addition to and not limited by the provisions of Section 845-5. | ||||||
12 | (Source: P.A. 98-90, eff. 7-15-13.)
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13 | (20 ILCS 3501/825-70) | ||||||
14 | Sec. 825-70. Criteria for participation in the program. | ||||||
15 | Applications to
the
Authority for financing of any Clean Coal, | ||||||
16 | Coal, Energy Efficiency Project, Qualified Clean Coal Project, | ||||||
17 | or Renewable Energy Project shall be reviewed
by the Authority. | ||||||
18 | Upon submission of any such application, the Authority staff
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19 | shall review the application for its completeness and may, at | ||||||
20 | the discretion of
the Authority staff, request such additional | ||||||
21 | information as it deems necessary
or advisable to aid in | ||||||
22 | review. If the Authority receives applications for
financing | ||||||
23 | for Clean Coal, Coal, Energy Efficiency Project, Qualified | ||||||
24 | Clean Coal Project, or Renewable Energy Projects in excess of | ||||||
25 | the bond
authorization
available for such financing at any one |
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1 | time, it shall consider applications in
the order of priority | ||||||
2 | as it shall determine, in consultation with other State
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3 | agencies, and consistent with State policy to promote | ||||||
4 | environmentally preferable technology and energy independence. | ||||||
5 | An application for a loan for a Qualified Clean Coal Project | ||||||
6 | submitted by a borrower or any of its affiliates that is | ||||||
7 | financed from bond proceeds may not be approved by the | ||||||
8 | Authority in an amount in excess of $450,000,000 for any | ||||||
9 | borrower or affiliate for any one Qualified Clean Coal Project. | ||||||
10 | (Source: P.A. 96-103, eff. 1-1-10; 96-817, eff. 1-1-10.)
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11 | (20 ILCS 3501/825-75) | ||||||
12 | Sec. 825-75. Additional Security. In the event that the | ||||||
13 | Authority
determines
that monies of the Authority will not be | ||||||
14 | sufficient for the payment of the
principal of and interest on | ||||||
15 | any bonds issued by the Authority under
Sections
825-65 through | ||||||
16 | 825-75 of this Act for Clean Coal Projects, Coal Projects, | ||||||
17 | Energy Efficiency Projects, Qualified Clean Coal Project, or | ||||||
18 | Renewable Energy Projects
during the next State fiscal
year, | ||||||
19 | the Chairperson, as soon as practicable, shall certify to the | ||||||
20 | Governor
the
amount required by the Authority to enable it to | ||||||
21 | pay such principal, premium,
if
any, and interest on such | ||||||
22 | bonds. The Governor shall submit the amount so
certified to the | ||||||
23 | General Assembly as soon as practicable, but no later than the
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24 | end of the current State fiscal year. This subsection shall
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25 | apply to any
bonds or notes as to which the Authority shall |
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1 | have determined, in the
resolution authorizing the issuance of | ||||||
2 | the bonds or notes, that this subsection
shall apply. Whenever | ||||||
3 | the Authority makes such a determination, that fact
shall be | ||||||
4 | plainly stated on the face of the bonds or notes and that fact | ||||||
5 | should
also be reported to the Governor.
In the event of a | ||||||
6 | withdrawal of moneys from a reserve fund established with
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7 | respect to any issue or issues of bonds of the Authority to pay | ||||||
8 | principal,
premium, if any, and interest on such bonds, the | ||||||
9 | Chairman of the Authority, as
soon as practicable, shall | ||||||
10 | certify to the Governor the amount required to
restore the | ||||||
11 | reserve fund to the level required in the resolution or | ||||||
12 | indenture
securing those bonds. The Governor shall submit the | ||||||
13 | amount so certified to the
General Assembly as soon as | ||||||
14 | practicable, but no later than the end of the
current State | ||||||
15 | fiscal year. The Authority shall obtain written approval from | ||||||
16 | the
Governor for any bonds and notes to be issued under this | ||||||
17 | Section. | ||||||
18 | (Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10; | ||||||
19 | 96-817, eff. 1-1-10.)
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20 | (20 ILCS 3501/825-120 new) | ||||||
21 | Sec. 825-120. Clean Coal Technology Development and | ||||||
22 | Utilization Fund. The Clean Coal Technology Development and | ||||||
23 | Utilization Fund is hereby created as a special fund in the | ||||||
24 | State Treasury. The Illinois Finance Authority shall use all | ||||||
25 | moneys from the Clean Coal Technology Development and |
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1 | Utilization Fund to administer the Illinois Power Agency's | ||||||
2 | responsibilities to support the financing and installation of | ||||||
3 | qualified clean coal projects. The Illinois Commerce | ||||||
4 | Commission shall adopt rules in accordance with the Illinois | ||||||
5 | Administrative Procedure Act to provide funding for qualified | ||||||
6 | clean coal projects by any lawful means, and those moneys shall | ||||||
7 | be deposited into the Clean Coal Technology Development and | ||||||
8 | Utilization Fund. Notwithstanding any other law to the | ||||||
9 | contrary, the Clean Coal Technology Development and | ||||||
10 | Utilization Fund is not subject to sweeps, administrative | ||||||
11 | charge-backs, or any other fiscal or budgetary maneuver that | ||||||
12 | would in any way transfer any amounts from the Clean Coal | ||||||
13 | Technology Development and Utilization Fund into any other fund | ||||||
14 | of the State.
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15 | Section 5-10. The Illinois Power Agency Act is amended by | ||||||
16 | changing Sections 1-5, 1-10, 1-20, and 1-75 as follows:
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17 | (20 ILCS 3855/1-5) | ||||||
18 | Sec. 1-5. Legislative declarations and findings. The | ||||||
19 | General Assembly finds and declares: | ||||||
20 | (1) The health, welfare, and prosperity of all Illinois | ||||||
21 | citizens require the provision of adequate, reliable, | ||||||
22 | affordable, efficient, and environmentally sustainable | ||||||
23 | electric service at the lowest total cost over time, taking | ||||||
24 | into account any benefits of price stability. |
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1 | (2) The transition to retail competition is not | ||||||
2 | complete. Some customers, especially residential and small | ||||||
3 | commercial customers, have failed to benefit from lower | ||||||
4 | electricity costs from retail and wholesale competition. | ||||||
5 | (3) Escalating prices for electricity in Illinois pose | ||||||
6 | a serious threat to the economic well-being, health, and | ||||||
7 | safety of the residents of and the commerce and industry of | ||||||
8 | the State. | ||||||
9 | (4) To protect against this threat to economic | ||||||
10 | well-being, health, and safety it is necessary to improve | ||||||
11 | the process of procuring electricity to serve Illinois | ||||||
12 | residents, to promote investment in energy efficiency and | ||||||
13 | demand-response measures, and to support development of | ||||||
14 | clean coal technologies and renewable resources. | ||||||
15 | (5) Procuring a diverse electricity supply portfolio | ||||||
16 | will ensure the lowest total cost over time for adequate, | ||||||
17 | reliable, efficient, and environmentally sustainable | ||||||
18 | electric service. | ||||||
19 | (6) Including cost-effective renewable resources in | ||||||
20 | that portfolio will reduce long-term direct and indirect | ||||||
21 | costs to consumers by decreasing environmental impacts and | ||||||
22 | by avoiding or delaying the need for new generation, | ||||||
23 | transmission, and distribution infrastructure. | ||||||
24 | (7) Energy efficiency, demand-response measures, and | ||||||
25 | renewable energy are resources currently underused in | ||||||
26 | Illinois. |
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1 | (8) The State should encourage the use of advanced | ||||||
2 | clean coal technologies that capture and sequester carbon | ||||||
3 | dioxide emissions and reduce emissions by utilizing | ||||||
4 | pollution control equipment to facilitate the use of | ||||||
5 | bituminous coal, to advance environmental protection | ||||||
6 | goals , and to demonstrate the viability of coal and | ||||||
7 | coal-derived fuels in a carbon-constrained economy. | ||||||
8 | (9) The General Assembly enacted Public Act 96-0795 to | ||||||
9 | reform the State's purchasing processes, recognizing that | ||||||
10 | government procurement is susceptible to abuse if | ||||||
11 | structural and procedural safeguards are not in place to | ||||||
12 | ensure independence, insulation, oversight, and | ||||||
13 | transparency. | ||||||
14 | (10) The principles that underlie the procurement | ||||||
15 | reform legislation apply also in the context of power | ||||||
16 | purchasing. | ||||||
17 | The General Assembly therefore finds that it is necessary | ||||||
18 | to create the Illinois Power Agency and that the goals and | ||||||
19 | objectives of that Agency are to accomplish each of the | ||||||
20 | following: | ||||||
21 | (A) Develop electricity procurement plans to ensure | ||||||
22 | adequate, reliable, affordable, efficient, and | ||||||
23 | environmentally sustainable electric service at the lowest | ||||||
24 | total cost over time, taking into account any benefits of | ||||||
25 | price stability, for electric utilities that on December | ||||||
26 | 31, 2005 provided electric service to at least 100,000 |
| |||||||
| |||||||
1 | customers in Illinois and for small multi-jurisdictional | ||||||
2 | electric utilities that (i) on December 31, 2005 served | ||||||
3 | less than 100,000 customers in Illinois and (ii) request a | ||||||
4 | procurement plan for their Illinois jurisdictional load. | ||||||
5 | The procurement plan shall be updated on an annual basis | ||||||
6 | and shall include renewable energy resources sufficient to | ||||||
7 | achieve the standards specified in this Act. | ||||||
8 | (B) Conduct competitive procurement processes to | ||||||
9 | procure the supply resources identified in the procurement | ||||||
10 | plan. | ||||||
11 | (C) Develop electric generation and co-generation | ||||||
12 | facilities that use indigenous coal or renewable | ||||||
13 | resources, or both, financed with bonds issued by the | ||||||
14 | Illinois Finance Authority. | ||||||
15 | (D) Supply electricity from the Agency's facilities at | ||||||
16 | cost to one or more of the following: municipal electric | ||||||
17 | systems, governmental aggregators, or rural electric | ||||||
18 | cooperatives in Illinois.
| ||||||
19 | (E) Ensure that the process of power procurement is | ||||||
20 | conducted in an ethical and transparent fashion, immune | ||||||
21 | from improper influence. | ||||||
22 | (F) Continue to review its policies and practices to | ||||||
23 | determine how best to meet its mission of providing the | ||||||
24 | lowest cost power to the greatest number of people, at any | ||||||
25 | given point in time, in accordance with applicable law. | ||||||
26 | (G) Operate in a structurally insulated, independent, |
| |||||||
| |||||||
1 | and transparent fashion so that nothing impedes the | ||||||
2 | Agency's mission to secure power at the best prices the | ||||||
3 | market will bear, provided that the Agency meets all | ||||||
4 | applicable legal requirements. | ||||||
5 | (Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11; | ||||||
6 | 97-813, eff. 7-13-12.)
| ||||||
7 | (20 ILCS 3855/1-10)
| ||||||
8 | Sec. 1-10. Definitions. | ||||||
9 | "Agency" means the Illinois Power Agency. | ||||||
10 | "Agency loan agreement" means any agreement pursuant to | ||||||
11 | which the Illinois Finance Authority agrees to loan the | ||||||
12 | proceeds of revenue bonds issued with respect to a project to | ||||||
13 | the Agency upon terms providing for loan repayment installments | ||||||
14 | at least sufficient to pay when due all principal of, interest | ||||||
15 | and premium, if any, on those revenue bonds, and providing for | ||||||
16 | maintenance, insurance, and other matters in respect of the | ||||||
17 | project. | ||||||
18 | "Authority" means the Illinois Finance Authority. | ||||||
19 | "Clean coal facility" means an electric generating | ||||||
20 | facility that uses primarily coal as a feedstock and that | ||||||
21 | captures and sequesters carbon dioxide emissions at the | ||||||
22 | following levels: at least 50% of the total carbon dioxide | ||||||
23 | emissions that the facility would otherwise emit if, at the | ||||||
24 | time construction commences, the facility is scheduled to | ||||||
25 | commence operation before 2016, at least 70% of the total |
| |||||||
| |||||||
1 | carbon dioxide emissions that the facility would otherwise emit | ||||||
2 | if, at the time construction commences, the facility is | ||||||
3 | scheduled to commence operation during 2016 or 2017, and at | ||||||
4 | least 90% of the total carbon dioxide emissions that the | ||||||
5 | facility would otherwise emit if, at the time construction | ||||||
6 | commences, the facility is scheduled to commence operation | ||||||
7 | after 2017. The power block of the clean coal facility shall | ||||||
8 | not exceed allowable emission rates for sulfur dioxide, | ||||||
9 | nitrogen oxides, carbon monoxide, particulates and mercury for | ||||||
10 | a natural gas-fired combined-cycle facility the same size as | ||||||
11 | and in the same location as the clean coal facility at the time | ||||||
12 | the clean coal facility obtains an approved air permit. All | ||||||
13 | coal used by a clean coal facility shall have high volatile | ||||||
14 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
15 | million btu content, unless the clean coal facility does not | ||||||
16 | use gasification technology and was operating as a conventional | ||||||
17 | coal-fired electric generating facility on June 1, 2009 (the | ||||||
18 | effective date of Public Act 95-1027). | ||||||
19 | "Clean coal SNG brownfield facility" means a facility that | ||||||
20 | (1) has commenced construction by July 1, 2015 on an urban | ||||||
21 | brownfield site in a municipality with at least 1,000,000 | ||||||
22 | residents; (2) uses a gasification process to produce | ||||||
23 | substitute natural gas; (3) uses coal as at least 50% of the | ||||||
24 | total feedstock over the term of any sourcing agreement with a | ||||||
25 | utility and the remainder of the feedstock may be either | ||||||
26 | petroleum coke or coal, with all such coal having a high |
| |||||||
| |||||||
1 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
2 | million Btu content unless the facility reasonably determines
| ||||||
3 | that it is necessary to use additional petroleum coke to
| ||||||
4 | deliver additional consumer savings, in which case the
facility | ||||||
5 | shall use coal for at least 35% of the total
feedstock over the | ||||||
6 | term of any sourcing agreement; and (4) captures and sequesters | ||||||
7 | at least 85% of the total carbon dioxide emissions that the | ||||||
8 | facility would otherwise emit. | ||||||
9 | "Clean coal SNG facility" means a facility that uses a | ||||||
10 | gasification process to produce substitute natural gas, that | ||||||
11 | sequesters at least 90% of the total carbon dioxide emissions | ||||||
12 | that the facility would otherwise emit, that uses at least 90% | ||||||
13 | coal as a feedstock, with all such coal having a high | ||||||
14 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
15 | million btu content, and that has a valid and effective permit | ||||||
16 | to construct emission sources and air pollution control | ||||||
17 | equipment and approval with respect to the federal regulations | ||||||
18 | for Prevention of Significant Deterioration of Air Quality | ||||||
19 | (PSD) for the plant pursuant to the federal Clean Air Act; | ||||||
20 | provided, however, a clean coal SNG brownfield facility shall | ||||||
21 | not be a clean coal SNG facility. | ||||||
22 | "Commission" means the Illinois Commerce Commission. | ||||||
23 | "Costs incurred in connection with the development and | ||||||
24 | construction of a facility" means: | ||||||
25 | (1) the cost of acquisition of all real property, | ||||||
26 | fixtures, and improvements in connection therewith and |
| |||||||
| |||||||
1 | equipment, personal property, and other property, rights, | ||||||
2 | and easements acquired that are deemed necessary for the | ||||||
3 | operation and maintenance of the facility; | ||||||
4 | (2) financing costs with respect to bonds, notes, and | ||||||
5 | other evidences of indebtedness of the Agency; | ||||||
6 | (3) all origination, commitment, utilization, | ||||||
7 | facility, placement, underwriting, syndication, credit | ||||||
8 | enhancement, and rating agency fees; | ||||||
9 | (4) engineering, design, procurement, consulting, | ||||||
10 | legal, accounting, title insurance, survey, appraisal, | ||||||
11 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
12 | interest rate swap, capitalized interest, contingency, as | ||||||
13 | required by lenders, and other financing costs, and other | ||||||
14 | expenses for professional services; and | ||||||
15 | (5) the costs of plans, specifications, site study and | ||||||
16 | investigation, installation, surveys, other Agency costs | ||||||
17 | and estimates of costs, and other expenses necessary or | ||||||
18 | incidental to determining the feasibility of any project, | ||||||
19 | together with such other expenses as may be necessary or | ||||||
20 | incidental to the financing, insuring, acquisition, and | ||||||
21 | construction of a specific project and starting up, | ||||||
22 | commissioning, and placing that project in operation. | ||||||
23 | "Department" means the Department of Commerce and Economic | ||||||
24 | Opportunity. | ||||||
25 | "Director" means the Director of the Illinois Power Agency. | ||||||
26 | "Demand-response" means measures that decrease peak |
| |||||||
| |||||||
1 | electricity demand or shift demand from peak to off-peak | ||||||
2 | periods. | ||||||
3 | "Distributed renewable energy generation device" means a | ||||||
4 | device that is: | ||||||
5 | (1) powered by wind, solar thermal energy, | ||||||
6 | photovoltaic cells and panels, biodiesel, crops and | ||||||
7 | untreated and unadulterated organic waste biomass, tree | ||||||
8 | waste, and hydropower that does not involve new | ||||||
9 | construction or significant expansion of hydropower dams; | ||||||
10 | (2) interconnected at the distribution system level of | ||||||
11 | either an electric utility as defined in this Section, an | ||||||
12 | alternative retail electric supplier as defined in Section | ||||||
13 | 16-102 of the Public Utilities Act, a municipal utility as | ||||||
14 | defined in Section 3-105 of the Public Utilities Act, or a | ||||||
15 | rural electric cooperative as defined in Section 3-119 of | ||||||
16 | the Public Utilities Act; | ||||||
17 | (3) located on the customer side of the customer's | ||||||
18 | electric meter and is primarily used to offset that | ||||||
19 | customer's electricity load; and | ||||||
20 | (4) limited in nameplate capacity to no more than 2,000 | ||||||
21 | kilowatts. | ||||||
22 | "Energy efficiency" means measures that reduce the amount | ||||||
23 | of electricity or natural gas required to achieve a given end | ||||||
24 | use. "Energy efficiency" also includes measures that reduce the | ||||||
25 | total Btus of electricity and natural gas needed to meet the | ||||||
26 | end use or uses. |
| |||||||
| |||||||
1 | "Electric utility" has the same definition as found in | ||||||
2 | Section 16-102 of the Public Utilities Act. | ||||||
3 | "Facility" means an electric generating unit or a | ||||||
4 | co-generating unit that produces electricity along with | ||||||
5 | related equipment necessary to connect the facility to an | ||||||
6 | electric transmission or distribution system. | ||||||
7 | "Governmental aggregator" means one or more units of local | ||||||
8 | government that individually or collectively procure | ||||||
9 | electricity to serve residential retail electrical loads | ||||||
10 | located within its or their jurisdiction. | ||||||
11 | "Local government" means a unit of local government as | ||||||
12 | defined in Section 1 of Article VII of the Illinois | ||||||
13 | Constitution. | ||||||
14 | "Municipality" means a city, village, or incorporated | ||||||
15 | town. | ||||||
16 | "Person" means any natural person, firm, partnership, | ||||||
17 | corporation, either domestic or foreign, company, association, | ||||||
18 | limited liability company, joint stock company, or association | ||||||
19 | and includes any trustee, receiver, assignee, or personal | ||||||
20 | representative thereof. | ||||||
21 | "Project" means the planning, bidding, and construction of | ||||||
22 | a facility. | ||||||
23 | "Public utility" has the same definition as found in | ||||||
24 | Section 3-105 of the Public Utilities Act. | ||||||
25 | "Qualified clean coal facility" means an electric | ||||||
26 | generating facility which uses United States high volatile rank |
| |||||||
| |||||||
1 | bituminous coal with an inherent carbon dioxide content of less | ||||||
2 | than 210 pounds of carbon dioxide per million Btu as its | ||||||
3 | primary fuel source or which provides the lowest carbon dioxide | ||||||
4 | emission per kilowatt-hour utilizing qualified pollution | ||||||
5 | control equipment. | ||||||
6 | "Qualified pollution control equipment" means new | ||||||
7 | construction of equipment or the retrofit of an existing | ||||||
8 | generation facility which allows the use of high volatile rank | ||||||
9 | bituminous coal with an inherent carbon dioxide content of less | ||||||
10 | than 210 pounds of carbon dioxide per million Btu. This | ||||||
11 | equipment shall include, but is not limited to, scrubbers or | ||||||
12 | flue gas desulfurization, electrostatic precipitators, or | ||||||
13 | other technologies which can provide heat rate improvements, | ||||||
14 | facilitate changes in fuel type to the use of low carbon | ||||||
15 | dioxide emitting bituminous coal, burner modifications, | ||||||
16 | installation on new control equipment, or any technologies | ||||||
17 | designed for retrofitting existing plants to meet the | ||||||
18 | requirements of the federal law or regulations. | ||||||
19 | "Real property" means any interest in land together with | ||||||
20 | all structures, fixtures, and improvements thereon, including | ||||||
21 | lands under water and riparian rights, any easements, | ||||||
22 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
23 | interests, together with any liens, judgments, mortgages, or | ||||||
24 | other claims or security interests related to real property. | ||||||
25 | "Renewable energy credit" means a tradable credit that | ||||||
26 | represents the environmental attributes of a certain amount of |
| |||||||
| |||||||
1 | energy produced from a renewable energy resource. | ||||||
2 | "Renewable energy resources" includes energy and its | ||||||
3 | associated renewable energy credit or renewable energy credits | ||||||
4 | from wind, solar thermal energy, photovoltaic cells and panels, | ||||||
5 | biodiesel, anaerobic digestion, crops and untreated and | ||||||
6 | unadulterated organic waste biomass, tree waste, hydropower | ||||||
7 | that does not involve new construction or significant expansion | ||||||
8 | of hydropower dams, and other alternative sources of | ||||||
9 | environmentally preferable energy. For purposes of this Act, | ||||||
10 | landfill gas produced in the State is considered a renewable | ||||||
11 | energy resource. "Renewable energy resources" does not include | ||||||
12 | the incineration or burning of tires, garbage, general | ||||||
13 | household, institutional, and commercial waste, industrial | ||||||
14 | lunchroom or office waste, landscape waste other than tree | ||||||
15 | waste, railroad crossties, utility poles, or construction or | ||||||
16 | demolition debris, other than untreated and unadulterated | ||||||
17 | waste wood. | ||||||
18 | "Retail customer" has the same definition as found in | ||||||
19 | Section 16-102 of the Public Utilities Act. | ||||||
20 | "Revenue bond" means any bond, note, or other evidence of | ||||||
21 | indebtedness issued by the Authority, the principal and | ||||||
22 | interest of which is payable solely from revenues or income | ||||||
23 | derived from any project or activity of the Agency. | ||||||
24 | "Sequester" means permanent storage of carbon dioxide by | ||||||
25 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
26 | or an oil reservoir, directly or through an enhanced oil |
| |||||||
| |||||||
1 | recovery process that may involve intermediate storage, | ||||||
2 | regardless of whether these activities are conducted by a clean | ||||||
3 | coal facility, a clean coal SNG facility, a clean coal SNG | ||||||
4 | brownfield facility, or a party with which a clean coal | ||||||
5 | facility, clean coal SNG facility, or clean coal SNG brownfield | ||||||
6 | facility has contracted for such purposes. | ||||||
7 | "Sourcing agreement" means (i) in the case of an electric | ||||||
8 | utility, an agreement between the owner of a clean coal | ||||||
9 | facility and such electric utility, which agreement shall have | ||||||
10 | terms and conditions meeting the requirements of paragraph (3) | ||||||
11 | of subsection (d) of Section 1-75, (ii) in the case of an | ||||||
12 | alternative retail electric supplier, an agreement between the | ||||||
13 | owner of a clean coal facility and such alternative retail | ||||||
14 | electric supplier, which agreement shall have terms and | ||||||
15 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
16 | the Public Utilities Act, and (iii) in case of a gas utility, | ||||||
17 | an agreement between the owner of a clean coal SNG brownfield | ||||||
18 | facility and the gas utility, which agreement shall have the | ||||||
19 | terms and conditions meeting the requirements of subsection | ||||||
20 | (h-1) of Section 9-220 of the Public Utilities Act , (iv) in the | ||||||
21 | case of an electric utility, an agreement between the owner of | ||||||
22 | the qualified clean coal facility and the electric utility, | ||||||
23 | which agreement shall have the terms and conditions meeting the | ||||||
24 | requirements of subsection (d-5) of Section 1-75, and (v) in | ||||||
25 | the case of an alternative retail electric supplier, an | ||||||
26 | agreement between the owner of a qualified clean coal facility |
| |||||||
| |||||||
1 | and the alternative retail electric supplier, which agreement | ||||||
2 | shall have the terms and conditions meeting the requirements of | ||||||
3 | paragraph (5) of subsection (d) of Section 16-115 of the Public | ||||||
4 | Utilities Act . | ||||||
5 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
6 | by gasification of hydrocarbon feedstock, which is | ||||||
7 | substantially interchangeable in use and distribution with | ||||||
8 | conventional natural gas. | ||||||
9 | "Total resource cost test" or "TRC test" means a standard | ||||||
10 | that is met if, for an investment in energy efficiency or | ||||||
11 | demand-response measures, the benefit-cost ratio is greater | ||||||
12 | than one. The benefit-cost ratio is the ratio of the net | ||||||
13 | present value of the total benefits of the program to the net | ||||||
14 | present value of the total costs as calculated over the | ||||||
15 | lifetime of the measures. A total resource cost test compares | ||||||
16 | the sum of avoided electric utility costs, representing the | ||||||
17 | benefits that accrue to the system and the participant in the | ||||||
18 | delivery of those efficiency measures, as well as other | ||||||
19 | quantifiable societal benefits, including avoided natural gas | ||||||
20 | utility costs, to the sum of all incremental costs of end-use | ||||||
21 | measures that are implemented due to the program (including | ||||||
22 | both utility and participant contributions), plus costs to | ||||||
23 | administer, deliver, and evaluate each demand-side program, to | ||||||
24 | quantify the net savings obtained by substituting the | ||||||
25 | demand-side program for supply resources. In calculating | ||||||
26 | avoided costs of power and energy that an electric utility |
| |||||||
| |||||||
1 | would otherwise have had to acquire, reasonable estimates shall | ||||||
2 | be included of financial costs likely to be imposed by future | ||||||
3 | regulations and legislation on emissions of greenhouse gases.
| ||||||
4 | (Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491, | ||||||
5 | eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12; | ||||||
6 | 98-90, eff. 7-15-13.)
| ||||||
7 | (20 ILCS 3855/1-20)
| ||||||
8 | Sec. 1-20. General powers of the Agency. | ||||||
9 | (a) The Agency is authorized to do each of the following: | ||||||
10 | (1) Develop electricity procurement plans to ensure | ||||||
11 | adequate, reliable, affordable, efficient, and | ||||||
12 | environmentally sustainable electric service at the lowest | ||||||
13 | total cost over time, taking into account any benefits of | ||||||
14 | price stability, for electric utilities that on December | ||||||
15 | 31, 2005 provided electric service to at least 100,000 | ||||||
16 | customers in Illinois and for small multi-jurisdictional | ||||||
17 | electric utilities that (A) on December 31, 2005 served | ||||||
18 | less than 100,000 customers in Illinois and (B) request a | ||||||
19 | procurement plan for their Illinois jurisdictional load. | ||||||
20 | The procurement plans shall be updated on an annual basis | ||||||
21 | and shall include electricity generated from renewable | ||||||
22 | resources sufficient to achieve the standards specified in | ||||||
23 | this Act. | ||||||
24 | (2) Conduct competitive procurement processes to | ||||||
25 | procure the supply resources identified in the procurement |
| |||||||
| |||||||
1 | plan, pursuant to Section 16-111.5 of the Public Utilities | ||||||
2 | Act. | ||||||
3 | (3) Develop electric generation and co-generation | ||||||
4 | facilities that use indigenous coal or renewable | ||||||
5 | resources, or both, financed with bonds issued by the | ||||||
6 | Illinois Finance Authority. Nothing shall prohibit the | ||||||
7 | Agency from taking title to indigenous or bituminous coal | ||||||
8 | in order to fulfill any purpose enumerated by this Act. The | ||||||
9 | Agency shall provide by rule for the terms and conditions | ||||||
10 | under which the Agency may take title to indigenous or | ||||||
11 | bituminous coal. | ||||||
12 | (4) Supply electricity from the Agency's facilities at | ||||||
13 | cost to one or more of the following: municipal electric | ||||||
14 | systems, governmental aggregators, or rural electric | ||||||
15 | cooperatives in Illinois. | ||||||
16 | (b) Except as otherwise limited by this Act, the Agency has | ||||||
17 | all of the powers necessary or convenient to carry out the | ||||||
18 | purposes and provisions of this Act, including without | ||||||
19 | limitation, each of the following: | ||||||
20 | (1) To have a corporate seal, and to alter that seal at | ||||||
21 | pleasure, and to use it by causing it or a facsimile to be | ||||||
22 | affixed or impressed or reproduced in any other manner. | ||||||
23 | (2) To use the services of the Illinois Finance | ||||||
24 | Authority necessary to carry out the Agency's purposes. | ||||||
25 | (3) To negotiate and enter into loan agreements and | ||||||
26 | other agreements with the Illinois Finance Authority. |
| |||||||
| |||||||
1 | (4) To obtain and employ personnel and hire consultants | ||||||
2 | that are necessary to fulfill the Agency's purposes, and to | ||||||
3 | make expenditures for that purpose within the | ||||||
4 | appropriations for that purpose. | ||||||
5 | (5) To purchase, receive, take by grant, gift, devise, | ||||||
6 | bequest, or otherwise, lease, or otherwise acquire, own, | ||||||
7 | hold, improve, employ, use, and otherwise deal in and with, | ||||||
8 | real or personal property whether tangible or intangible, | ||||||
9 | or any interest therein, within the State. | ||||||
10 | (6) To acquire real or personal property, whether | ||||||
11 | tangible or intangible, including without limitation | ||||||
12 | property rights, interests in property, franchises, | ||||||
13 | obligations, contracts, and debt and equity securities, | ||||||
14 | and to do so by the exercise of the power of eminent domain | ||||||
15 | in accordance with Section 1-21; except that any real | ||||||
16 | property acquired by the exercise of the power of eminent | ||||||
17 | domain must be located within the State. | ||||||
18 | (7) To sell, convey, lease, exchange, transfer, | ||||||
19 | abandon, or otherwise dispose of, or mortgage, pledge, or | ||||||
20 | create a security interest in, any of its assets, | ||||||
21 | properties, or any interest therein, wherever situated. | ||||||
22 | (8) To purchase, take, receive, subscribe for, or | ||||||
23 | otherwise acquire, hold, make a tender offer for, vote, | ||||||
24 | employ, sell, lend, lease, exchange, transfer, or | ||||||
25 | otherwise dispose of, mortgage, pledge, or grant a security | ||||||
26 | interest in, use, and otherwise deal in and with, bonds and |
| |||||||
| |||||||
1 | other obligations, shares, or other securities (or | ||||||
2 | interests therein) issued by others, whether engaged in a | ||||||
3 | similar or different business or activity. | ||||||
4 | (9) To make and execute agreements, contracts, and | ||||||
5 | other instruments necessary or convenient in the exercise | ||||||
6 | of the powers and functions of the Agency under this Act, | ||||||
7 | including contracts with any person, including personal | ||||||
8 | service contracts, or with any local government, State | ||||||
9 | agency, or other entity; and all State agencies and all | ||||||
10 | local governments are authorized to enter into and do all | ||||||
11 | things necessary to perform any such agreement, contract, | ||||||
12 | or other instrument with the Agency. No such agreement, | ||||||
13 | contract, or other instrument shall exceed 40 years. | ||||||
14 | (10) To lend money, invest and reinvest its funds in | ||||||
15 | accordance with the Public Funds Investment Act, and take | ||||||
16 | and hold real and personal property as security for the | ||||||
17 | payment of funds loaned or invested. | ||||||
18 | (11) To borrow money at such rate or rates of interest | ||||||
19 | as the Agency may determine, issue its notes, bonds, or | ||||||
20 | other obligations to evidence that indebtedness, and | ||||||
21 | secure any of its obligations by mortgage or pledge of its | ||||||
22 | real or personal property, machinery, equipment, | ||||||
23 | structures, fixtures, inventories, revenues, grants, and | ||||||
24 | other funds as provided or any interest therein, wherever | ||||||
25 | situated. | ||||||
26 | (12) To enter into agreements with the Illinois Finance |
| |||||||
| |||||||
1 | Authority to issue bonds whether or not the income | ||||||
2 | therefrom is exempt from federal taxation. | ||||||
3 | (13) To procure insurance against any loss in | ||||||
4 | connection with its properties or operations in such amount | ||||||
5 | or amounts and from such insurers, including the federal | ||||||
6 | government, as it may deem necessary or desirable, and to | ||||||
7 | pay any premiums therefor. | ||||||
8 | (14) To negotiate and enter into agreements with | ||||||
9 | trustees or receivers appointed by United States | ||||||
10 | bankruptcy courts or federal district courts or in other | ||||||
11 | proceedings involving adjustment of debts and authorize | ||||||
12 | proceedings involving adjustment of debts and authorize | ||||||
13 | legal counsel for the Agency to appear in any such | ||||||
14 | proceedings. | ||||||
15 | (15) To file a petition under Chapter 9 of Title 11 of | ||||||
16 | the United States Bankruptcy Code or take other similar | ||||||
17 | action for the adjustment of its debts. | ||||||
18 | (16) To enter into management agreements for the | ||||||
19 | operation of any of the property or facilities owned by the | ||||||
20 | Agency. | ||||||
21 | (17) To enter into an agreement to transfer and to | ||||||
22 | transfer any land, facilities, fixtures, or equipment of | ||||||
23 | the Agency to one or more municipal electric systems, | ||||||
24 | governmental aggregators, or rural electric agencies or | ||||||
25 | cooperatives, for such consideration and upon such terms as | ||||||
26 | the Agency may determine to be in the best interest of the |
| |||||||
| |||||||
1 | citizens of Illinois. | ||||||
2 | (18) To enter upon any lands and within any building | ||||||
3 | whenever in its judgment it may be necessary for the | ||||||
4 | purpose of making surveys and examinations to accomplish | ||||||
5 | any purpose authorized by this Act. | ||||||
6 | (19) To maintain an office or offices at such place or | ||||||
7 | places in the State as it may determine. | ||||||
8 | (20) To request information, and to make any inquiry, | ||||||
9 | investigation, survey, or study that the Agency may deem | ||||||
10 | necessary to enable it effectively to carry out the | ||||||
11 | provisions of this Act. | ||||||
12 | (21) To accept and expend appropriations. | ||||||
13 | (22) To engage in any activity or operation that is | ||||||
14 | incidental to and in furtherance of efficient operation to | ||||||
15 | accomplish the Agency's purposes, including hiring | ||||||
16 | employees that the Director deems essential for the | ||||||
17 | operations of the Agency. | ||||||
18 | (23) To adopt, revise, amend, and repeal rules with | ||||||
19 | respect to its operations, properties, and facilities as | ||||||
20 | may be necessary or convenient to carry out the purposes of | ||||||
21 | this Act, subject to the provisions of the Illinois | ||||||
22 | Administrative Procedure Act and Sections 1-22 and 1-35 of | ||||||
23 | this Act. | ||||||
24 | (24) To establish and collect charges and fees as | ||||||
25 | described in this Act.
| ||||||
26 | (25) To conduct competitive gasification feedstock |
| |||||||
| |||||||
1 | procurement processes to procure the feedstocks for the | ||||||
2 | clean coal SNG brownfield facility in accordance with the | ||||||
3 | requirements of Section 1-78 of this Act. | ||||||
4 | (26) To review, revise, and approve sourcing | ||||||
5 | agreements and mediate and resolve disputes between gas | ||||||
6 | utilities and the clean coal SNG brownfield facility | ||||||
7 | pursuant to subsection (h-1) of Section 9-220 of the Public | ||||||
8 | Utilities Act. | ||||||
9 | (Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; | ||||||
10 | 97-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff. | ||||||
11 | 10-26-11; 97-813, eff. 7-13-12.)
| ||||||
12 | (20 ILCS 3855/1-75) | ||||||
13 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
14 | and Procurement Bureau has the following duties and | ||||||
15 | responsibilities: | ||||||
16 | (a) The Planning and Procurement Bureau shall each year, | ||||||
17 | beginning in 2008, develop procurement plans and conduct | ||||||
18 | competitive procurement processes in accordance with the | ||||||
19 | requirements of Section 16-111.5 of the Public Utilities Act | ||||||
20 | for the eligible retail customers of electric utilities that on | ||||||
21 | December 31, 2005 provided electric service to at least 100,000 | ||||||
22 | customers in Illinois , and, beginning with the 2020 planning | ||||||
23 | year, the Planning and Procurement Bureau shall include in such | ||||||
24 | plans and processes the procurement of electricity generated by | ||||||
25 | qualified clean coal facilities pursuant to subsection (d-5) of |
| |||||||
| |||||||
1 | this Section for all of the utilities' retail customers . The | ||||||
2 | Planning and Procurement Bureau shall also develop procurement | ||||||
3 | plans and conduct competitive procurement processes in | ||||||
4 | accordance with the requirements of Section 16-111.5 of the | ||||||
5 | Public Utilities Act for the eligible retail customers of small | ||||||
6 | multi-jurisdictional electric utilities that (i) on December | ||||||
7 | 31, 2005 served less than 100,000 customers in Illinois and | ||||||
8 | (ii) request a procurement plan for their Illinois | ||||||
9 | jurisdictional load. This Section shall not apply to a small | ||||||
10 | multi-jurisdictional utility until such time as a small | ||||||
11 | multi-jurisdictional utility requests the Agency to prepare a | ||||||
12 | procurement plan for their Illinois jurisdictional load. For | ||||||
13 | the purposes of this Section, the term "eligible retail | ||||||
14 | customers" has the same definition as found in Section | ||||||
15 | 16-111.5(a) of the Public Utilities Act. | ||||||
16 | (1) The Agency shall each year, beginning in 2008, as | ||||||
17 | needed, issue a request for qualifications for experts or | ||||||
18 | expert consulting firms to develop the procurement plans in | ||||||
19 | accordance with Section 16-111.5 of the Public Utilities | ||||||
20 | Act. In order to qualify an expert or expert consulting | ||||||
21 | firm must have: | ||||||
22 | (A) direct previous experience assembling | ||||||
23 | large-scale power supply plans or portfolios for | ||||||
24 | end-use customers; | ||||||
25 | (B) an advanced degree in economics, mathematics, | ||||||
26 | engineering, risk management, or a related area of |
| |||||||
| |||||||
1 | study; | ||||||
2 | (C) 10 years of experience in the electricity | ||||||
3 | sector, including managing supply risk; | ||||||
4 | (D) expertise in wholesale electricity market | ||||||
5 | rules, including those established by the Federal | ||||||
6 | Energy Regulatory Commission and regional transmission | ||||||
7 | organizations; | ||||||
8 | (E) expertise in credit protocols and familiarity | ||||||
9 | with contract protocols; | ||||||
10 | (F) adequate resources to perform and fulfill the | ||||||
11 | required functions and responsibilities; and | ||||||
12 | (G) the absence of a conflict of interest and | ||||||
13 | inappropriate bias for or against potential bidders or | ||||||
14 | the affected electric utilities. | ||||||
15 | (2) The Agency shall each year, as needed, issue a | ||||||
16 | request for qualifications for a procurement administrator | ||||||
17 | to conduct the competitive procurement processes in | ||||||
18 | accordance with Section 16-111.5 of the Public Utilities | ||||||
19 | Act. In order to qualify an expert or expert consulting | ||||||
20 | firm must have: | ||||||
21 | (A) direct previous experience administering a | ||||||
22 | large-scale competitive procurement process; | ||||||
23 | (B) an advanced degree in economics, mathematics, | ||||||
24 | engineering, or a related area of study; | ||||||
25 | (C) 10 years of experience in the electricity | ||||||
26 | sector, including risk management experience; |
| |||||||
| |||||||
1 | (D) expertise in wholesale electricity market | ||||||
2 | rules, including those established by the Federal | ||||||
3 | Energy Regulatory Commission and regional transmission | ||||||
4 | organizations; | ||||||
5 | (E) expertise in credit and contract protocols; | ||||||
6 | (F) adequate resources to perform and fulfill the | ||||||
7 | required functions and responsibilities; and | ||||||
8 | (G) the absence of a conflict of interest and | ||||||
9 | inappropriate bias for or against potential bidders or | ||||||
10 | the affected electric utilities. | ||||||
11 | (3) The Agency shall provide affected utilities and | ||||||
12 | other interested parties with the lists of qualified | ||||||
13 | experts or expert consulting firms identified through the | ||||||
14 | request for qualifications processes that are under | ||||||
15 | consideration to develop the procurement plans and to serve | ||||||
16 | as the procurement administrator. The Agency shall also | ||||||
17 | provide each qualified expert's or expert consulting | ||||||
18 | firm's response to the request for qualifications. All | ||||||
19 | information provided under this subparagraph shall also be | ||||||
20 | provided to the Commission. The Agency may provide by rule | ||||||
21 | for fees associated with supplying the information to | ||||||
22 | utilities and other interested parties. These parties | ||||||
23 | shall, within 5 business days, notify the Agency in writing | ||||||
24 | if they object to any experts or expert consulting firms on | ||||||
25 | the lists. Objections shall be based on: | ||||||
26 | (A) failure to satisfy qualification criteria; |
| |||||||
| |||||||
1 | (B) identification of a conflict of interest; or | ||||||
2 | (C) evidence of inappropriate bias for or against | ||||||
3 | potential bidders or the affected utilities. | ||||||
4 | The Agency shall remove experts or expert consulting | ||||||
5 | firms from the lists within 10 days if there is a | ||||||
6 | reasonable basis for an objection and provide the updated | ||||||
7 | lists to the affected utilities and other interested | ||||||
8 | parties. If the Agency fails to remove an expert or expert | ||||||
9 | consulting firm from a list, an objecting party may seek | ||||||
10 | review by the Commission within 5 days thereafter by filing | ||||||
11 | a petition, and the Commission shall render a ruling on the | ||||||
12 | petition within 10 days. There is no right of appeal of the | ||||||
13 | Commission's ruling. | ||||||
14 | (4) The Agency shall issue requests for proposals to | ||||||
15 | the qualified experts or expert consulting firms to develop | ||||||
16 | a procurement plan for the affected utilities and to serve | ||||||
17 | as procurement administrator. | ||||||
18 | (5) The Agency shall select an expert or expert | ||||||
19 | consulting firm to develop procurement plans based on the | ||||||
20 | proposals submitted and shall award contracts of up to 5 | ||||||
21 | years to those selected. | ||||||
22 | (6) The Agency shall select an expert or expert | ||||||
23 | consulting firm, with approval of the Commission, to serve | ||||||
24 | as procurement administrator based on the proposals | ||||||
25 | submitted. If the Commission rejects, within 5 days, the | ||||||
26 | Agency's selection, the Agency shall submit another |
| |||||||
| |||||||
1 | recommendation within 3 days based on the proposals | ||||||
2 | submitted. The Agency shall award a 5-year contract to the | ||||||
3 | expert or expert consulting firm so selected with | ||||||
4 | Commission approval. | ||||||
5 | (b) The experts or expert consulting firms retained by the | ||||||
6 | Agency shall, as appropriate, prepare procurement plans, and | ||||||
7 | conduct a competitive procurement process as prescribed in | ||||||
8 | Section 16-111.5 of the Public Utilities Act, to ensure | ||||||
9 | adequate, reliable, affordable, efficient, and environmentally | ||||||
10 | sustainable electric service at the lowest total cost over | ||||||
11 | time, taking into account any benefits of price stability, for | ||||||
12 | eligible retail customers of electric utilities that on | ||||||
13 | December 31, 2005 provided electric service to at least 100,000 | ||||||
14 | customers in the State of Illinois, and for eligible Illinois | ||||||
15 | retail customers of small multi-jurisdictional electric | ||||||
16 | utilities that (i) on December 31, 2005 served less than | ||||||
17 | 100,000 customers in Illinois and (ii) request a procurement | ||||||
18 | plan for their Illinois jurisdictional load. | ||||||
19 | (c) Renewable portfolio standard. | ||||||
20 | (1) The procurement plans shall include cost-effective | ||||||
21 | renewable energy resources. A minimum percentage of each | ||||||
22 | utility's total supply to serve the load of eligible retail | ||||||
23 | customers, as defined in Section 16-111.5(a) of the Public | ||||||
24 | Utilities Act, procured for each of the following years | ||||||
25 | shall be generated from cost-effective renewable energy | ||||||
26 | resources: at least 2% by June 1, 2008; at least 4% by June |
| |||||||
| |||||||
1 | 1, 2009; at least 5% by June 1, 2010; at least 6% by June 1, | ||||||
2 | 2011; at least 7% by June 1, 2012; at least 8% by June 1, | ||||||
3 | 2013; at least 9% by June 1, 2014; at least 10% by June 1, | ||||||
4 | 2015; and increasing by at least 1.5% each year thereafter | ||||||
5 | to at least 25% by June 1, 2025. To the extent that it is | ||||||
6 | available, at least 75% of the renewable energy resources | ||||||
7 | used to meet these standards shall come from wind | ||||||
8 | generation and, beginning on June 1, 2011, at least the | ||||||
9 | following percentages of the renewable energy resources | ||||||
10 | used to meet these standards shall come from photovoltaics | ||||||
11 | on the following schedule: 0.5% by June 1, 2012, 1.5% by | ||||||
12 | June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015 and | ||||||
13 | thereafter. Of the renewable energy resources procured | ||||||
14 | pursuant to this Section, at least the following | ||||||
15 | percentages shall come from distributed renewable energy | ||||||
16 | generation devices: 0.5% by June 1, 2013, 0.75% by June 1, | ||||||
17 | 2014, and 1% by June 1, 2015 and thereafter. To the extent | ||||||
18 | available, half of the renewable energy resources procured | ||||||
19 | from distributed renewable energy generation shall come | ||||||
20 | from devices of less than 25 kilowatts in nameplate | ||||||
21 | capacity. Renewable energy resources procured from | ||||||
22 | distributed generation devices may also count towards the | ||||||
23 | required percentages for wind and solar photovoltaics. | ||||||
24 | Procurement of renewable energy resources from distributed | ||||||
25 | renewable energy generation devices shall be done on an | ||||||
26 | annual basis through multi-year contracts of no less than 5 |
| |||||||
| |||||||
1 | years, and shall consist solely of renewable energy | ||||||
2 | credits. | ||||||
3 | The Agency shall create credit requirements for | ||||||
4 | suppliers of distributed renewable energy. In order to | ||||||
5 | minimize the administrative burden on contracting | ||||||
6 | entities, the Agency shall solicit the use of third-party | ||||||
7 | organizations to aggregate distributed renewable energy | ||||||
8 | into groups of no less than one megawatt in installed | ||||||
9 | capacity. These third-party organizations shall administer | ||||||
10 | contracts with individual distributed renewable energy | ||||||
11 | generation device owners. An individual distributed | ||||||
12 | renewable energy generation device owner shall have the | ||||||
13 | ability to measure the output of his or her distributed | ||||||
14 | renewable energy generation device. | ||||||
15 | For purposes of this subsection (c), "cost-effective" | ||||||
16 | means that the costs of procuring renewable energy | ||||||
17 | resources do not cause the limit stated in paragraph (2) of | ||||||
18 | this subsection (c) to be exceeded and do not exceed | ||||||
19 | benchmarks based on market prices for renewable energy | ||||||
20 | resources in the region, which shall be developed by the | ||||||
21 | procurement administrator, in consultation with the | ||||||
22 | Commission staff, Agency staff, and the procurement | ||||||
23 | monitor and shall be subject to Commission review and | ||||||
24 | approval. | ||||||
25 | (2) For purposes of this subsection (c), the required | ||||||
26 | procurement of cost-effective renewable energy resources |
| |||||||
| |||||||
1 | for a particular year shall be measured as a percentage of | ||||||
2 | the actual amount of electricity (megawatt-hours) supplied | ||||||
3 | by the electric utility to eligible retail customers in the | ||||||
4 | planning year ending immediately prior to the procurement. | ||||||
5 | For purposes of this subsection (c), the amount paid per | ||||||
6 | kilowatthour means the total amount paid for electric | ||||||
7 | service expressed on a per kilowatthour basis. For purposes | ||||||
8 | of this subsection (c), the total amount paid for electric | ||||||
9 | service includes without limitation amounts paid for | ||||||
10 | supply, transmission, distribution, surcharges, and add-on | ||||||
11 | taxes. | ||||||
12 | Notwithstanding the requirements of this subsection | ||||||
13 | (c), the total of renewable energy resources procured | ||||||
14 | pursuant to the procurement plan for any single year shall | ||||||
15 | be reduced by an amount necessary to limit the annual | ||||||
16 | estimated average net increase due to the costs of these | ||||||
17 | resources included in the amounts paid by eligible retail | ||||||
18 | customers in connection with electric service to: | ||||||
19 | (A) in 2008, no more than 0.5% of the amount paid | ||||||
20 | per kilowatthour by those customers during the year | ||||||
21 | ending May 31, 2007; | ||||||
22 | (B) in 2009, the greater of an additional 0.5% of | ||||||
23 | the amount paid per kilowatthour by those customers | ||||||
24 | during the year ending May 31, 2008 or 1% of the amount | ||||||
25 | paid per kilowatthour by those customers during the | ||||||
26 | year ending May 31, 2007; |
| |||||||
| |||||||
1 | (C) in 2010, the greater of an additional 0.5% of | ||||||
2 | the amount paid per kilowatthour by those customers | ||||||
3 | during the year ending May 31, 2009 or 1.5% of the | ||||||
4 | amount paid per kilowatthour by those customers during | ||||||
5 | the year ending May 31, 2007; | ||||||
6 | (D) in 2011, the greater of an additional 0.5% of | ||||||
7 | the amount paid per kilowatthour by those customers | ||||||
8 | during the year ending May 31, 2010 or 2% of the amount | ||||||
9 | paid per kilowatthour by those customers during the | ||||||
10 | year ending May 31, 2007; and | ||||||
11 | (E) thereafter, the amount of renewable energy | ||||||
12 | resources procured pursuant to the procurement plan | ||||||
13 | for any single year shall be reduced by an amount | ||||||
14 | necessary to limit the estimated average net increase | ||||||
15 | due to the cost of these resources included in the | ||||||
16 | amounts paid by eligible retail customers in | ||||||
17 | connection with electric service to no more than the | ||||||
18 | greater of 2.015% of the amount paid per kilowatthour | ||||||
19 | by those customers during the year ending May 31, 2007 | ||||||
20 | or the incremental amount per kilowatthour paid for | ||||||
21 | these resources in 2011. | ||||||
22 | No later than June 30, 2011, the Commission shall | ||||||
23 | review the limitation on the amount of renewable energy | ||||||
24 | resources procured pursuant to this subsection (c) and | ||||||
25 | report to the General Assembly its findings as to | ||||||
26 | whether that limitation unduly constrains the |
| |||||||
| |||||||
1 | procurement of cost-effective renewable energy | ||||||
2 | resources. | ||||||
3 | (3) Through June 1, 2011, renewable energy resources | ||||||
4 | shall be counted for the purpose of meeting the renewable | ||||||
5 | energy standards set forth in paragraph (1) of this | ||||||
6 | subsection (c) only if they are generated from facilities | ||||||
7 | located in the State, provided that cost-effective | ||||||
8 | renewable energy resources are available from those | ||||||
9 | facilities. If those cost-effective resources are not | ||||||
10 | available in Illinois, they shall be procured in states | ||||||
11 | that adjoin Illinois and may be counted towards compliance. | ||||||
12 | If those cost-effective resources are not available in | ||||||
13 | Illinois or in states that adjoin Illinois, they shall be | ||||||
14 | purchased elsewhere and shall be counted towards | ||||||
15 | compliance. After June 1, 2011, cost-effective renewable | ||||||
16 | energy resources located in Illinois and in states that | ||||||
17 | adjoin Illinois may be counted towards compliance with the | ||||||
18 | standards set forth in paragraph (1) of this subsection | ||||||
19 | (c). If those cost-effective resources are not available in | ||||||
20 | Illinois or in states that adjoin Illinois, they shall be | ||||||
21 | purchased elsewhere and shall be counted towards | ||||||
22 | compliance. | ||||||
23 | (4) The electric utility shall retire all renewable | ||||||
24 | energy credits used to comply with the standard. | ||||||
25 | (5) Beginning with the year commencing June 1, 2010, an | ||||||
26 | electric utility subject to this subsection (c) shall apply |
| |||||||
| |||||||
1 | the lesser of the maximum alternative compliance payment | ||||||
2 | rate or the most recent estimated alternative compliance | ||||||
3 | payment rate for its service territory for the | ||||||
4 | corresponding compliance period, established pursuant to | ||||||
5 | subsection (d) of Section 16-115D of the Public Utilities | ||||||
6 | Act to its retail customers that take service pursuant to | ||||||
7 | the electric utility's hourly pricing tariff or tariffs. | ||||||
8 | The electric utility shall retain all amounts collected as | ||||||
9 | a result of the application of the alternative compliance | ||||||
10 | payment rate or rates to such customers, and, beginning in | ||||||
11 | 2011, the utility shall include in the information provided | ||||||
12 | under item (1) of subsection (d) of Section 16-111.5 of the | ||||||
13 | Public Utilities Act the amounts collected under the | ||||||
14 | alternative compliance payment rate or rates for the prior | ||||||
15 | year ending May 31. Notwithstanding any limitation on the | ||||||
16 | procurement of renewable energy resources imposed by item | ||||||
17 | (2) of this subsection (c), the Agency shall increase its | ||||||
18 | spending on the purchase of renewable energy resources to | ||||||
19 | be procured by the electric utility for the next plan year | ||||||
20 | by an amount equal to the amounts collected by the utility | ||||||
21 | under the alternative compliance payment rate or rates in | ||||||
22 | the prior year ending May 31. Beginning April 1, 2012, and | ||||||
23 | each year thereafter, the Agency shall prepare a public | ||||||
24 | report for the General Assembly and Illinois Commerce | ||||||
25 | Commission that shall include, but not necessarily be | ||||||
26 | limited to: |
| |||||||
| |||||||
1 | (A) a comparison of the costs associated with the | ||||||
2 | Agency's procurement of renewable energy resources to | ||||||
3 | (1) the Agency's costs associated with electricity | ||||||
4 | generated by other types of generation facilities and | ||||||
5 | (2) the benefits associated with the Agency's | ||||||
6 | procurement of renewable energy resources; and | ||||||
7 | (B) an analysis of the rate impacts associated with | ||||||
8 | the Illinois Power Agency's procurement of renewable | ||||||
9 | resources, including, but not limited to, any | ||||||
10 | long-term contracts, on the eligible retail customers | ||||||
11 | of electric utilities. | ||||||
12 | The analysis shall include the Agency's estimate of the | ||||||
13 | total dollar impact that the Agency's procurement of | ||||||
14 | renewable resources has had on the annual electricity bills | ||||||
15 | of the customer classes that comprise each eligible retail | ||||||
16 | customer class taking service from an electric utility. The | ||||||
17 | Agency's report shall also analyze how the operation of the | ||||||
18 | alternative compliance payment mechanism, any long-term | ||||||
19 | contracts, or other aspects of the applicable renewable | ||||||
20 | portfolio standards impacts the rates of customers of | ||||||
21 | alternative retail electric suppliers. | ||||||
22 | (d) Clean coal portfolio standard. | ||||||
23 | (1) The procurement plans shall include electricity | ||||||
24 | generated using clean coal. Each utility shall enter into | ||||||
25 | one or more sourcing agreements with the initial clean coal | ||||||
26 | facility, as provided in paragraph (3) of this subsection |
| |||||||
| |||||||
1 | (d), covering electricity generated by the initial clean | ||||||
2 | coal facility representing at least 5% of each utility's | ||||||
3 | total supply to serve the load of eligible retail customers | ||||||
4 | in 2015 and each year thereafter, as described in paragraph | ||||||
5 | (3) of this subsection (d), subject to the limits specified | ||||||
6 | in paragraph (2) of this subsection (d). It is the goal of | ||||||
7 | the State that by January 1, 2025, 25% of the electricity | ||||||
8 | used in the State shall be generated by cost-effective | ||||||
9 | clean coal facilities. For purposes of this subsection (d), | ||||||
10 | "cost-effective" means that the expenditures pursuant to | ||||||
11 | such sourcing agreements do not cause the limit stated in | ||||||
12 | paragraph (2) of this subsection (d) to be exceeded and do | ||||||
13 | not exceed cost-based benchmarks, which shall be developed | ||||||
14 | to assess all expenditures pursuant to such sourcing | ||||||
15 | agreements covering electricity generated by clean coal | ||||||
16 | facilities, other than the initial clean coal facility, by | ||||||
17 | the procurement administrator, in consultation with the | ||||||
18 | Commission staff, Agency staff, and the procurement | ||||||
19 | monitor and shall be subject to Commission review and | ||||||
20 | approval. | ||||||
21 | A utility party to a sourcing agreement shall | ||||||
22 | immediately retire any emission credits that it receives in | ||||||
23 | connection with the electricity covered by such agreement. | ||||||
24 | Utilities shall maintain adequate records documenting | ||||||
25 | the purchases under the sourcing agreement to comply with | ||||||
26 | this subsection (d) and shall file an accounting with the |
| |||||||
| |||||||
1 | load forecast that must be filed with the Agency by July 15 | ||||||
2 | of each year, in accordance with subsection (d) of Section | ||||||
3 | 16-111.5 of the Public Utilities Act. | ||||||
4 | A utility shall be deemed to have complied with the | ||||||
5 | clean coal portfolio standard specified in this subsection | ||||||
6 | (d) if the utility enters into a sourcing agreement as | ||||||
7 | required by this subsection (d). | ||||||
8 | (2) For purposes of this subsection (d), the required | ||||||
9 | execution of sourcing agreements with the initial clean | ||||||
10 | coal facility for a particular year shall be measured as a | ||||||
11 | percentage of the actual amount of electricity | ||||||
12 | (megawatt-hours) supplied by the electric utility to | ||||||
13 | eligible retail customers in the planning year ending | ||||||
14 | immediately prior to the agreement's execution. For | ||||||
15 | purposes of this subsection (d), the amount paid per | ||||||
16 | kilowatthour means the total amount paid for electric | ||||||
17 | service expressed on a per kilowatthour basis. For purposes | ||||||
18 | of this subsection (d), the total amount paid for electric | ||||||
19 | service includes without limitation amounts paid for | ||||||
20 | supply, transmission, distribution, surcharges and add-on | ||||||
21 | taxes. | ||||||
22 | Notwithstanding the requirements of this subsection | ||||||
23 | (d), the total amount paid under sourcing agreements with | ||||||
24 | clean coal facilities pursuant to the procurement plan for | ||||||
25 | any given year shall be reduced by an amount necessary to | ||||||
26 | limit the annual estimated average net increase due to the |
| |||||||
| |||||||
1 | costs of these resources included in the amounts paid by | ||||||
2 | eligible retail customers in connection with electric | ||||||
3 | service to: | ||||||
4 | (A) in 2010, no more than 0.5% of the amount paid | ||||||
5 | per kilowatthour by those customers during the year | ||||||
6 | ending May 31, 2009; | ||||||
7 | (B) in 2011, the greater of an additional 0.5% of | ||||||
8 | the amount paid per kilowatthour by those customers | ||||||
9 | during the year ending May 31, 2010 or 1% of the amount | ||||||
10 | paid per kilowatthour by those customers during the | ||||||
11 | year ending May 31, 2009; | ||||||
12 | (C) in 2012, the greater of an additional 0.5% of | ||||||
13 | the amount paid per kilowatthour by those customers | ||||||
14 | during the year ending May 31, 2011 or 1.5% of the | ||||||
15 | amount paid per kilowatthour by those customers during | ||||||
16 | the year ending May 31, 2009; | ||||||
17 | (D) in 2013, the greater of an additional 0.5% of | ||||||
18 | the amount paid per kilowatthour by those customers | ||||||
19 | during the year ending May 31, 2012 or 2% of the amount | ||||||
20 | paid per kilowatthour by those customers during the | ||||||
21 | year ending May 31, 2009; and | ||||||
22 | (E) thereafter, the total amount paid under | ||||||
23 | sourcing agreements with clean coal facilities | ||||||
24 | pursuant to the procurement plan for any single year | ||||||
25 | shall be reduced by an amount necessary to limit the | ||||||
26 | estimated average net increase due to the cost of these |
| |||||||
| |||||||
1 | resources included in the amounts paid by eligible | ||||||
2 | retail customers in connection with electric service | ||||||
3 | to no more than the greater of (i) 2.015% of the amount | ||||||
4 | paid per kilowatthour by those customers during the | ||||||
5 | year ending May 31, 2009 or (ii) the incremental amount | ||||||
6 | per kilowatthour paid for these resources in 2013. | ||||||
7 | These requirements may be altered only as provided by | ||||||
8 | statute. | ||||||
9 | No later than June 30, 2015, the Commission shall | ||||||
10 | review the limitation on the total amount paid under | ||||||
11 | sourcing agreements, if any, with clean coal facilities | ||||||
12 | pursuant to this subsection (d) and report to the General | ||||||
13 | Assembly its findings as to whether that limitation unduly | ||||||
14 | constrains the amount of electricity generated by | ||||||
15 | cost-effective clean coal facilities that is covered by | ||||||
16 | sourcing agreements. | ||||||
17 | (3) Initial clean coal facility. In order to promote | ||||||
18 | development of clean coal facilities in Illinois, each | ||||||
19 | electric utility subject to this Section shall execute a | ||||||
20 | sourcing agreement to source electricity from a proposed | ||||||
21 | clean coal facility in Illinois (the "initial clean coal | ||||||
22 | facility") that will have a nameplate capacity of at least | ||||||
23 | 500 MW when commercial operation commences, that has a | ||||||
24 | final Clean Air Act permit on the effective date of this | ||||||
25 | amendatory Act of the 95th General Assembly, and that will | ||||||
26 | meet the definition of clean coal facility in Section 1-10 |
| |||||||
| |||||||
1 | of this Act when commercial operation commences. The | ||||||
2 | sourcing agreements with this initial clean coal facility | ||||||
3 | shall be subject to both approval of the initial clean coal | ||||||
4 | facility by the General Assembly and satisfaction of the | ||||||
5 | requirements of paragraph (4) of this subsection (d) and | ||||||
6 | shall be executed within 90 days after any such approval by | ||||||
7 | the General Assembly. The Agency and the Commission shall | ||||||
8 | have authority to inspect all books and records associated | ||||||
9 | with the initial clean coal facility during the term of | ||||||
10 | such a sourcing agreement. A utility's sourcing agreement | ||||||
11 | for electricity produced by the initial clean coal facility | ||||||
12 | shall include: | ||||||
13 | (A) a formula contractual price (the "contract | ||||||
14 | price") approved pursuant to paragraph (4) of this | ||||||
15 | subsection (d), which shall: | ||||||
16 | (i) be determined using a cost of service | ||||||
17 | methodology employing either a level or deferred | ||||||
18 | capital recovery component, based on a capital | ||||||
19 | structure consisting of 45% equity and 55% debt, | ||||||
20 | and a return on equity as may be approved by the | ||||||
21 | Federal Energy Regulatory Commission, which in any | ||||||
22 | case may not exceed the lower of 11.5% or the rate | ||||||
23 | of return approved by the General Assembly | ||||||
24 | pursuant to paragraph (4) of this subsection (d); | ||||||
25 | and | ||||||
26 | (ii) provide that all miscellaneous net |
| |||||||
| |||||||
1 | revenue, including but not limited to net revenue | ||||||
2 | from the sale of emission allowances, if any, | ||||||
3 | substitute natural gas, if any, grants or other | ||||||
4 | support provided by the State of Illinois or the | ||||||
5 | United States Government, firm transmission | ||||||
6 | rights, if any, by-products produced by the | ||||||
7 | facility, energy or capacity derived from the | ||||||
8 | facility and not covered by a sourcing agreement | ||||||
9 | pursuant to paragraph (3) of this subsection (d) or | ||||||
10 | item (5) of subsection (d) of Section 16-115 of the | ||||||
11 | Public Utilities Act, whether generated from the | ||||||
12 | synthesis gas derived from coal, from SNG, or from | ||||||
13 | natural gas, shall be credited against the revenue | ||||||
14 | requirement for this initial clean coal facility; | ||||||
15 | (B) power purchase provisions, which shall: | ||||||
16 | (i) provide that the utility party to such | ||||||
17 | sourcing agreement shall pay the contract price | ||||||
18 | for electricity delivered under such sourcing | ||||||
19 | agreement; | ||||||
20 | (ii) require delivery of electricity to the | ||||||
21 | regional transmission organization market of the | ||||||
22 | utility that is party to such sourcing agreement; | ||||||
23 | (iii) require the utility party to such | ||||||
24 | sourcing agreement to buy from the initial clean | ||||||
25 | coal facility in each hour an amount of energy | ||||||
26 | equal to all clean coal energy made available from |
| |||||||
| |||||||
1 | the initial clean coal facility during such hour | ||||||
2 | times a fraction, the numerator of which is such | ||||||
3 | utility's retail market sales of electricity | ||||||
4 | (expressed in kilowatthours sold) in the State | ||||||
5 | during the prior calendar month and the | ||||||
6 | denominator of which is the total retail market | ||||||
7 | sales of electricity (expressed in kilowatthours | ||||||
8 | sold) in the State by utilities during such prior | ||||||
9 | month and the sales of electricity (expressed in | ||||||
10 | kilowatthours sold) in the State by alternative | ||||||
11 | retail electric suppliers during such prior month | ||||||
12 | that are subject to the requirements of this | ||||||
13 | subsection (d) and paragraph (5) of subsection (d) | ||||||
14 | of Section 16-115 of the Public Utilities Act, | ||||||
15 | provided that the amount purchased by the utility | ||||||
16 | in any year will be limited by paragraph (2) of | ||||||
17 | this subsection (d); and | ||||||
18 | (iv) be considered pre-existing contracts in | ||||||
19 | such utility's procurement plans for eligible | ||||||
20 | retail customers; | ||||||
21 | (C) contract for differences provisions, which | ||||||
22 | shall: | ||||||
23 | (i) require the utility party to such sourcing | ||||||
24 | agreement to contract with the initial clean coal | ||||||
25 | facility in each hour with respect to an amount of | ||||||
26 | energy equal to all clean coal energy made |
| |||||||
| |||||||
1 | available from the initial clean coal facility | ||||||
2 | during such hour times a fraction, the numerator of | ||||||
3 | which is such utility's retail market sales of | ||||||
4 | electricity (expressed in kilowatthours sold) in | ||||||
5 | the utility's service territory in the State | ||||||
6 | during the prior calendar month and the | ||||||
7 | denominator of which is the total retail market | ||||||
8 | sales of electricity (expressed in kilowatthours | ||||||
9 | sold) in the State by utilities during such prior | ||||||
10 | month and the sales of electricity (expressed in | ||||||
11 | kilowatthours sold) in the State by alternative | ||||||
12 | retail electric suppliers during such prior month | ||||||
13 | that are subject to the requirements of this | ||||||
14 | subsection (d) and paragraph (5) of subsection (d) | ||||||
15 | of Section 16-115 of the Public Utilities Act, | ||||||
16 | provided that the amount paid by the utility in any | ||||||
17 | year will be limited by paragraph (2) of this | ||||||
18 | subsection (d); | ||||||
19 | (ii) provide that the utility's payment | ||||||
20 | obligation in respect of the quantity of | ||||||
21 | electricity determined pursuant to the preceding | ||||||
22 | clause (i) shall be limited to an amount equal to | ||||||
23 | (1) the difference between the contract price | ||||||
24 | determined pursuant to subparagraph (A) of | ||||||
25 | paragraph (3) of this subsection (d) and the | ||||||
26 | day-ahead price for electricity delivered to the |
| |||||||
| |||||||
1 | regional transmission organization market of the | ||||||
2 | utility that is party to such sourcing agreement | ||||||
3 | (or any successor delivery point at which such | ||||||
4 | utility's supply obligations are financially | ||||||
5 | settled on an hourly basis) (the "reference | ||||||
6 | price") on the day preceding the day on which the | ||||||
7 | electricity is delivered to the initial clean coal | ||||||
8 | facility busbar, multiplied by (2) the quantity of | ||||||
9 | electricity determined pursuant to the preceding | ||||||
10 | clause (i); and | ||||||
11 | (iii) not require the utility to take physical | ||||||
12 | delivery of the electricity produced by the | ||||||
13 | facility; | ||||||
14 | (D) general provisions, which shall: | ||||||
15 | (i) specify a term of no more than 30 years, | ||||||
16 | commencing on the commercial operation date of the | ||||||
17 | facility; | ||||||
18 | (ii) provide that utilities shall maintain | ||||||
19 | adequate records documenting purchases under the | ||||||
20 | sourcing agreements entered into to comply with | ||||||
21 | this subsection (d) and shall file an accounting | ||||||
22 | with the load forecast that must be filed with the | ||||||
23 | Agency by July 15 of each year, in accordance with | ||||||
24 | subsection (d) of Section 16-111.5 of the Public | ||||||
25 | Utilities Act; | ||||||
26 | (iii) provide that all costs associated with |
| |||||||
| |||||||
1 | the initial clean coal facility will be | ||||||
2 | periodically reported to the Federal Energy | ||||||
3 | Regulatory Commission and to purchasers in | ||||||
4 | accordance with applicable laws governing | ||||||
5 | cost-based wholesale power contracts; | ||||||
6 | (iv) permit the Illinois Power Agency to | ||||||
7 | assume ownership of the initial clean coal | ||||||
8 | facility, without monetary consideration and | ||||||
9 | otherwise on reasonable terms acceptable to the | ||||||
10 | Agency, if the Agency so requests no less than 3 | ||||||
11 | years prior to the end of the stated contract term; | ||||||
12 | (v) require the owner of the initial clean coal | ||||||
13 | facility to provide documentation to the | ||||||
14 | Commission each year, starting in the facility's | ||||||
15 | first year of commercial operation, accurately | ||||||
16 | reporting the quantity of carbon emissions from | ||||||
17 | the facility that have been captured and | ||||||
18 | sequestered and report any quantities of carbon | ||||||
19 | released from the site or sites at which carbon | ||||||
20 | emissions were sequestered in prior years, based | ||||||
21 | on continuous monitoring of such sites. If, in any | ||||||
22 | year after the first year of commercial operation, | ||||||
23 | the owner of the facility fails to demonstrate that | ||||||
24 | the initial clean coal facility captured and | ||||||
25 | sequestered at least 50% of the total carbon | ||||||
26 | emissions that the facility would otherwise emit |
| |||||||
| |||||||
1 | or that sequestration of emissions from prior | ||||||
2 | years has failed, resulting in the release of | ||||||
3 | carbon dioxide into the atmosphere, the owner of | ||||||
4 | the facility must offset excess emissions. Any | ||||||
5 | such carbon offsets must be permanent, additional, | ||||||
6 | verifiable, real, located within the State of | ||||||
7 | Illinois, and legally and practicably enforceable. | ||||||
8 | The cost of such offsets for the facility that are | ||||||
9 | not recoverable shall not exceed $15 million in any | ||||||
10 | given year. No costs of any such purchases of | ||||||
11 | carbon offsets may be recovered from a utility or | ||||||
12 | its customers. All carbon offsets purchased for | ||||||
13 | this purpose and any carbon emission credits | ||||||
14 | associated with sequestration of carbon from the | ||||||
15 | facility must be permanently retired. The initial | ||||||
16 | clean coal facility shall not forfeit its | ||||||
17 | designation as a clean coal facility if the | ||||||
18 | facility fails to fully comply with the applicable | ||||||
19 | carbon sequestration requirements in any given | ||||||
20 | year, provided the requisite offsets are | ||||||
21 | purchased. However, the Attorney General, on | ||||||
22 | behalf of the People of the State of Illinois, may | ||||||
23 | specifically enforce the facility's sequestration | ||||||
24 | requirement and the other terms of this contract | ||||||
25 | provision. Compliance with the sequestration | ||||||
26 | requirements and offset purchase requirements |
| |||||||
| |||||||
1 | specified in paragraph (3) of this subsection (d) | ||||||
2 | shall be reviewed annually by an independent | ||||||
3 | expert retained by the owner of the initial clean | ||||||
4 | coal facility, with the advance written approval | ||||||
5 | of the Attorney General. The Commission may, in the | ||||||
6 | course of the review specified in item (vii), | ||||||
7 | reduce the allowable return on equity for the | ||||||
8 | facility if the facility wilfully fails to comply | ||||||
9 | with the carbon capture and sequestration | ||||||
10 | requirements set forth in this item (v); | ||||||
11 | (vi) include limits on, and accordingly | ||||||
12 | provide for modification of, the amount the | ||||||
13 | utility is required to source under the sourcing | ||||||
14 | agreement consistent with paragraph (2) of this | ||||||
15 | subsection (d); | ||||||
16 | (vii) require Commission review: (1) to | ||||||
17 | determine the justness, reasonableness, and | ||||||
18 | prudence of the inputs to the formula referenced in | ||||||
19 | subparagraphs (A)(i) through (A)(iii) of paragraph | ||||||
20 | (3) of this subsection (d), prior to an adjustment | ||||||
21 | in those inputs including, without limitation, the | ||||||
22 | capital structure and return on equity, fuel | ||||||
23 | costs, and other operations and maintenance costs | ||||||
24 | and (2) to approve the costs to be passed through | ||||||
25 | to customers under the sourcing agreement by which | ||||||
26 | the utility satisfies its statutory obligations. |
| |||||||
| |||||||
1 | Commission review shall occur no less than every 3 | ||||||
2 | years, regardless of whether any adjustments have | ||||||
3 | been proposed, and shall be completed within 9 | ||||||
4 | months; | ||||||
5 | (viii) limit the utility's obligation to such | ||||||
6 | amount as the utility is allowed to recover through | ||||||
7 | tariffs filed with the Commission, provided that | ||||||
8 | neither the clean coal facility nor the utility | ||||||
9 | waives any right to assert federal pre-emption or | ||||||
10 | any other argument in response to a purported | ||||||
11 | disallowance of recovery costs; | ||||||
12 | (ix) limit the utility's or alternative retail | ||||||
13 | electric supplier's obligation to incur any | ||||||
14 | liability until such time as the facility is in | ||||||
15 | commercial operation and generating power and | ||||||
16 | energy and such power and energy is being delivered | ||||||
17 | to the facility busbar; | ||||||
18 | (x) provide that the owner or owners of the | ||||||
19 | initial clean coal facility, which is the | ||||||
20 | counterparty to such sourcing agreement, shall | ||||||
21 | have the right from time to time to elect whether | ||||||
22 | the obligations of the utility party thereto shall | ||||||
23 | be governed by the power purchase provisions or the | ||||||
24 | contract for differences provisions; | ||||||
25 | (xi) append documentation showing that the | ||||||
26 | formula rate and contract, insofar as they relate |
| |||||||
| |||||||
1 | to the power purchase provisions, have been | ||||||
2 | approved by the Federal Energy Regulatory | ||||||
3 | Commission pursuant to Section 205 of the Federal | ||||||
4 | Power Act; | ||||||
5 | (xii) provide that any changes to the terms of | ||||||
6 | the contract, insofar as such changes relate to the | ||||||
7 | power purchase provisions, are subject to review | ||||||
8 | under the public interest standard applied by the | ||||||
9 | Federal Energy Regulatory Commission pursuant to | ||||||
10 | Sections 205 and 206 of the Federal Power Act; and | ||||||
11 | (xiii) conform with customary lender | ||||||
12 | requirements in power purchase agreements used as | ||||||
13 | the basis for financing non-utility generators. | ||||||
14 | (4) Effective date of sourcing agreements with the | ||||||
15 | initial clean coal facility. | ||||||
16 | Any proposed sourcing agreement with the initial clean | ||||||
17 | coal facility shall not become effective unless the | ||||||
18 | following reports are prepared and submitted and | ||||||
19 | authorizations and approvals obtained: | ||||||
20 | (i) Facility cost report. The owner of the initial | ||||||
21 | clean coal facility shall submit to the Commission, the | ||||||
22 | Agency, and the General Assembly a front-end | ||||||
23 | engineering and design study, a facility cost report, | ||||||
24 | method of financing (including but not limited to | ||||||
25 | structure and associated costs), and an operating and | ||||||
26 | maintenance cost quote for the facility (collectively |
| |||||||
| |||||||
1 | "facility cost report"), which shall be prepared in | ||||||
2 | accordance with the requirements of this paragraph (4) | ||||||
3 | of subsection (d) of this Section, and shall provide | ||||||
4 | the Commission and the Agency access to the work | ||||||
5 | papers, relied upon documents, and any other backup | ||||||
6 | documentation related to the facility cost report. | ||||||
7 | (ii) Commission report. Within 6 months following | ||||||
8 | receipt of the facility cost report, the Commission, in | ||||||
9 | consultation with the Agency, shall submit a report to | ||||||
10 | the General Assembly setting forth its analysis of the | ||||||
11 | facility cost report. Such report shall include, but | ||||||
12 | not be limited to, a comparison of the costs associated | ||||||
13 | with electricity generated by the initial clean coal | ||||||
14 | facility to the costs associated with electricity | ||||||
15 | generated by other types of generation facilities, an | ||||||
16 | analysis of the rate impacts on residential and small | ||||||
17 | business customers over the life of the sourcing | ||||||
18 | agreements, and an analysis of the likelihood that the | ||||||
19 | initial clean coal facility will commence commercial | ||||||
20 | operation by and be delivering power to the facility's | ||||||
21 | busbar by 2016. To assist in the preparation of its | ||||||
22 | report, the Commission, in consultation with the | ||||||
23 | Agency, may hire one or more experts or consultants, | ||||||
24 | the costs of which shall be paid for by the owner of | ||||||
25 | the initial clean coal facility. The Commission and | ||||||
26 | Agency may begin the process of selecting such experts |
| |||||||
| |||||||
1 | or consultants prior to receipt of the facility cost | ||||||
2 | report. | ||||||
3 | (iii) General Assembly approval. The proposed | ||||||
4 | sourcing agreements shall not take effect unless, | ||||||
5 | based on the facility cost report and the Commission's | ||||||
6 | report, the General Assembly enacts authorizing | ||||||
7 | legislation approving (A) the projected price, stated | ||||||
8 | in cents per kilowatthour, to be charged for | ||||||
9 | electricity generated by the initial clean coal | ||||||
10 | facility, (B) the projected impact on residential and | ||||||
11 | small business customers' bills over the life of the | ||||||
12 | sourcing agreements, and (C) the maximum allowable | ||||||
13 | return on equity for the project; and | ||||||
14 | (iv) Commission review. If the General Assembly | ||||||
15 | enacts authorizing legislation pursuant to | ||||||
16 | subparagraph (iii) approving a sourcing agreement, the | ||||||
17 | Commission shall, within 90 days of such enactment, | ||||||
18 | complete a review of such sourcing agreement. During | ||||||
19 | such time period, the Commission shall implement any | ||||||
20 | directive of the General Assembly, resolve any | ||||||
21 | disputes between the parties to the sourcing agreement | ||||||
22 | concerning the terms of such agreement, approve the | ||||||
23 | form of such agreement, and issue an order finding that | ||||||
24 | the sourcing agreement is prudent and reasonable. | ||||||
25 | The facility cost report shall be prepared as follows: | ||||||
26 | (A) The facility cost report shall be prepared by |
| |||||||
| |||||||
1 | duly licensed engineering and construction firms | ||||||
2 | detailing the estimated capital costs payable to one or | ||||||
3 | more contractors or suppliers for the engineering, | ||||||
4 | procurement and construction of the components | ||||||
5 | comprising the initial clean coal facility and the | ||||||
6 | estimated costs of operation and maintenance of the | ||||||
7 | facility. The facility cost report shall include: | ||||||
8 | (i) an estimate of the capital cost of the core | ||||||
9 | plant based on one or more front end engineering | ||||||
10 | and design studies for the gasification island and | ||||||
11 | related facilities. The core plant shall include | ||||||
12 | all civil, structural, mechanical, electrical, | ||||||
13 | control, and safety systems. | ||||||
14 | (ii) an estimate of the capital cost of the | ||||||
15 | balance of the plant, including any capital costs | ||||||
16 | associated with sequestration of carbon dioxide | ||||||
17 | emissions and all interconnects and interfaces | ||||||
18 | required to operate the facility, such as | ||||||
19 | transmission of electricity, construction or | ||||||
20 | backfeed power supply, pipelines to transport | ||||||
21 | substitute natural gas or carbon dioxide, potable | ||||||
22 | water supply, natural gas supply, water supply, | ||||||
23 | water discharge, landfill, access roads, and coal | ||||||
24 | delivery. | ||||||
25 | The quoted construction costs shall be expressed | ||||||
26 | in nominal dollars as of the date that the quote is |
| |||||||
| |||||||
1 | prepared and shall include capitalized financing costs | ||||||
2 | during construction,
taxes, insurance, and other | ||||||
3 | owner's costs, and an assumed escalation in materials | ||||||
4 | and labor beyond the date as of which the construction | ||||||
5 | cost quote is expressed. | ||||||
6 | (B) The front end engineering and design study for | ||||||
7 | the gasification island and the cost study for the | ||||||
8 | balance of plant shall include sufficient design work | ||||||
9 | to permit quantification of major categories of | ||||||
10 | materials, commodities and labor hours, and receipt of | ||||||
11 | quotes from vendors of major equipment required to | ||||||
12 | construct and operate the clean coal facility. | ||||||
13 | (C) The facility cost report shall also include an | ||||||
14 | operating and maintenance cost quote that will provide | ||||||
15 | the estimated cost of delivered fuel, personnel, | ||||||
16 | maintenance contracts, chemicals, catalysts, | ||||||
17 | consumables, spares, and other fixed and variable | ||||||
18 | operations and maintenance costs. The delivered fuel | ||||||
19 | cost estimate will be provided by a recognized third | ||||||
20 | party expert or experts in the fuel and transportation | ||||||
21 | industries. The balance of the operating and | ||||||
22 | maintenance cost quote, excluding delivered fuel | ||||||
23 | costs, will be developed based on the inputs provided | ||||||
24 | by duly licensed engineering and construction firms | ||||||
25 | performing the construction cost quote, potential | ||||||
26 | vendors under long-term service agreements and plant |
| |||||||
| |||||||
1 | operating agreements, or recognized third party plant | ||||||
2 | operator or operators. | ||||||
3 | The operating and maintenance cost quote | ||||||
4 | (including the cost of the front end engineering and | ||||||
5 | design study) shall be expressed in nominal dollars as | ||||||
6 | of the date that the quote is prepared and shall | ||||||
7 | include taxes, insurance, and other owner's costs, and | ||||||
8 | an assumed escalation in materials and labor beyond the | ||||||
9 | date as of which the operating and maintenance cost | ||||||
10 | quote is expressed. | ||||||
11 | (D) The facility cost report shall also include an | ||||||
12 | analysis of the initial clean coal facility's ability | ||||||
13 | to deliver power and energy into the applicable | ||||||
14 | regional transmission organization markets and an | ||||||
15 | analysis of the expected capacity factor for the | ||||||
16 | initial clean coal facility. | ||||||
17 | (E) Amounts paid to third parties unrelated to the | ||||||
18 | owner or owners of the initial clean coal facility to | ||||||
19 | prepare the core plant construction cost quote, | ||||||
20 | including the front end engineering and design study, | ||||||
21 | and the operating and maintenance cost quote will be | ||||||
22 | reimbursed through Coal Development Bonds. | ||||||
23 | (5) Re-powering and retrofitting coal-fired power | ||||||
24 | plants previously owned by Illinois utilities to qualify as | ||||||
25 | clean coal facilities. During the 2009 procurement | ||||||
26 | planning process and thereafter, the Agency and the |
| |||||||
| |||||||
1 | Commission shall consider sourcing agreements covering | ||||||
2 | electricity generated by power plants that were previously | ||||||
3 | owned by Illinois utilities and that have been or will be | ||||||
4 | converted into clean coal facilities, as defined by Section | ||||||
5 | 1-10 of this Act. Pursuant to such procurement planning | ||||||
6 | process, the owners of such facilities may propose to the | ||||||
7 | Agency sourcing agreements with utilities and alternative | ||||||
8 | retail electric suppliers required to comply with | ||||||
9 | subsection (d) of this Section and item (5) of subsection | ||||||
10 | (d) of Section 16-115 of the Public Utilities Act, covering | ||||||
11 | electricity generated by such facilities. In the case of | ||||||
12 | sourcing agreements that are power purchase agreements, | ||||||
13 | the contract price for electricity sales shall be | ||||||
14 | established on a cost of service basis. In the case of | ||||||
15 | sourcing agreements that are contracts for differences, | ||||||
16 | the contract price from which the reference price is | ||||||
17 | subtracted shall be established on a cost of service basis. | ||||||
18 | The Agency and the Commission may approve any such utility | ||||||
19 | sourcing agreements that do not exceed cost-based | ||||||
20 | benchmarks developed by the procurement administrator, in | ||||||
21 | consultation with the Commission staff, Agency staff and | ||||||
22 | the procurement monitor, subject to Commission review and | ||||||
23 | approval. The Commission shall have authority to inspect | ||||||
24 | all books and records associated with these clean coal | ||||||
25 | facilities during the term of any such contract. | ||||||
26 | (6) Costs incurred under this subsection (d) or |
| |||||||
| |||||||
1 | pursuant to a contract entered into under this subsection | ||||||
2 | (d) shall be deemed prudently incurred and reasonable in | ||||||
3 | amount and the electric utility shall be entitled to full | ||||||
4 | cost recovery pursuant to the tariffs filed with the | ||||||
5 | Commission. | ||||||
6 | (d-5) Diverse energy portfolio standard. | ||||||
7 | (1) Beginning in planning year 2020 and each planning | ||||||
8 | year thereafter, the procurement plans shall include | ||||||
9 | electricity generated by qualified clean coal facilities. | ||||||
10 | Each utility shall enter into one or more sourcing | ||||||
11 | agreements with qualified clean coal facilities. It is the | ||||||
12 | goal of the State that, by June 1, 2020, each utility shall | ||||||
13 | enter into sourcing agreements with qualified clean coal | ||||||
14 | facilities covering electricity generated by qualified | ||||||
15 | clean coal facilities representing at least 40% of each | ||||||
16 | utility's annual retail sales of electricity to retail | ||||||
17 | customers in the State during the planning year immediately | ||||||
18 | prior to the development of a procurement plan, subject to | ||||||
19 | the limits specified in paragraph (3) of this subsection | ||||||
20 | (d-5). The percentage required to be procured by a utility | ||||||
21 | under this subsection (d-5) shall be reduced by the | ||||||
22 | percentage of clean coal procured by the utility under a | ||||||
23 | sourcing agreement under subsection (d) of this Act. | ||||||
24 | Utilities shall maintain adequate records documenting | ||||||
25 | the purchases under the sourcing agreement to comply with | ||||||
26 | this subsection (d-5) and shall file an accounting with the |
| |||||||
| |||||||
1 | load forecast that must be filed with the Agency by July 15 | ||||||
2 | of each year, under subsection (d) of Section 16-111.5 of | ||||||
3 | the Public Utilities Act. | ||||||
4 | A utility shall be deemed to have complied with the | ||||||
5 | diverse energy portfolio standard specified in this | ||||||
6 | subsection (d-5) if the utility enters into a sourcing | ||||||
7 | agreement as required by this subsection (d-5). | ||||||
8 | (2) For the purposes of this subsection (d-5), the | ||||||
9 | required execution of sourcing agreements for a particular | ||||||
10 | year shall be measured as a percentage of the actual amount | ||||||
11 | of electricity (megawatt-hours) supplied by the electric | ||||||
12 | utility to all retail customers in the planning year ending | ||||||
13 | immediately prior to the agreement's execution. For | ||||||
14 | purposes of this subsection (d-5), the amount paid per | ||||||
15 | kilowatthour means the total amount paid for electric | ||||||
16 | service expressed on a per kilowatthour basis. For purposes | ||||||
17 | of this subsection (d-5), the total amount paid for | ||||||
18 | electric service includes without limitation amounts paid | ||||||
19 | for supply, transmission, distribution, surcharges, and | ||||||
20 | add-on taxes. | ||||||
21 | (3) Notwithstanding the requirements of this | ||||||
22 | subsection (d-5), the total procured from qualified clean | ||||||
23 | coal facilities under the procurement plan for any single | ||||||
24 | year shall be subject to the limitations of this paragraph | ||||||
25 | (3). The procurement shall be reduced for all retail | ||||||
26 | customers based on the amount necessary to limit the annual |
| |||||||
| |||||||
1 | estimated average net increase due to the costs of | ||||||
2 | electricity generated by a qualified clean coal facility | ||||||
3 | included in the amounts paid by all retail customers in | ||||||
4 | connection with electric service to no more than 2.015% of | ||||||
5 | the amount paid per kilowatthour by all retail customers | ||||||
6 | during the year ending May 31, 2009. This requirement may | ||||||
7 | be altered only as provided in statute. | ||||||
8 | (4) Costs incurred under this subsection (d-5) or under | ||||||
9 | a contract entered into under this subsection (d-5) shall | ||||||
10 | be deemed prudently incurred and reasonable in amount and | ||||||
11 | the electric utility shall be entitled to full cost | ||||||
12 | recovery under the tariffs filed with the Commission. | ||||||
13 | (e) The draft procurement plans are subject to public | ||||||
14 | comment, as required by Section 16-111.5 of the Public | ||||||
15 | Utilities Act. | ||||||
16 | (f) The Agency shall submit the final procurement plan to | ||||||
17 | the Commission. The Agency shall revise a procurement plan if | ||||||
18 | the Commission determines that it does not meet the standards | ||||||
19 | set forth in Section 16-111.5 of the Public Utilities Act. | ||||||
20 | (g) The Agency shall assess fees to each affected utility | ||||||
21 | to recover the costs incurred in preparation of the annual | ||||||
22 | procurement plan for the utility. | ||||||
23 | (h) The Agency shall assess fees to each bidder to recover | ||||||
24 | the costs incurred in connection with a competitive procurement | ||||||
25 | process.
| ||||||
26 | (Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11; |
| |||||||
| |||||||
1 | 97-618, eff. 10-26-11; 97-658, eff. 1-13-12; 97-813, eff. | ||||||
2 | 7-13-12; 98-463, eff. 8-16-13.)
| ||||||
3 | Section 5-35. The Public Utilities Act is amended by | ||||||
4 | changing Sections 16-111.5 and 16-115 as follows:
| ||||||
5 | (220 ILCS 5/16-111.5) | ||||||
6 | Sec. 16-111.5. Provisions relating to procurement. | ||||||
7 | (a) An electric utility that on December 31, 2005 served at | ||||||
8 | least 100,000 customers in Illinois shall procure power and | ||||||
9 | energy for its eligible retail customers in accordance with the | ||||||
10 | applicable provisions set forth in Section 1-75 of the Illinois | ||||||
11 | Power Agency Act and this Section , and beginning with the 2020 | ||||||
12 | planning year, shall procure electricity generated by | ||||||
13 | qualified clean coal facilities for all retail customers in its | ||||||
14 | service area in accordance with the applicable provisions set | ||||||
15 | forth in Section 1-75 of the Illinois Power Agency Act and this | ||||||
16 | Section . A small multi-jurisdictional electric utility that on | ||||||
17 | December 31, 2005 served less than 100,000 customers in | ||||||
18 | Illinois may elect to procure power and energy for all or a | ||||||
19 | portion of its eligible Illinois retail customers in accordance | ||||||
20 | with the applicable provisions set forth in this Section and | ||||||
21 | Section 1-75 of the Illinois Power Agency Act. This Section | ||||||
22 | shall not apply to a small multi-jurisdictional utility until | ||||||
23 | such time as a small multi-jurisdictional utility requests the | ||||||
24 | Illinois Power Agency to prepare a procurement plan for its |
| |||||||
| |||||||
1 | eligible retail customers. "Eligible retail customers" for the | ||||||
2 | purposes of this Section means those retail customers that | ||||||
3 | purchase power and energy from the electric utility under | ||||||
4 | fixed-price bundled service tariffs, other than those retail | ||||||
5 | customers whose service is declared or deemed competitive under | ||||||
6 | Section 16-113 and those other customer groups specified in | ||||||
7 | this Section, including self-generating customers, customers | ||||||
8 | electing hourly pricing, or those customers who are otherwise | ||||||
9 | ineligible for fixed-price bundled tariff service. Those | ||||||
10 | customers that are excluded from the definition of "eligible | ||||||
11 | retail customers" shall not be included in the procurement plan | ||||||
12 | load requirements, and the utility shall procure any supply | ||||||
13 | requirements, including capacity, ancillary services, and | ||||||
14 | hourly priced energy, in the applicable markets as needed to | ||||||
15 | serve those customers, provided that the utility may include in | ||||||
16 | its procurement plan load requirements for the load that is | ||||||
17 | associated with those retail customers whose service has been | ||||||
18 | declared or deemed competitive pursuant to Section 16-113 of | ||||||
19 | this Act to the extent that those customers are purchasing | ||||||
20 | power and energy during one of the transition periods | ||||||
21 | identified in subsection (b) of Section 16-113 of this Act. | ||||||
22 | (b) A procurement plan shall be prepared for each electric | ||||||
23 | utility consistent with the applicable requirements of the | ||||||
24 | Illinois Power Agency Act and this Section. For purposes of | ||||||
25 | this Section, Illinois electric utilities that are affiliated | ||||||
26 | by virtue of a common parent company are considered to be a |
| |||||||
| |||||||
1 | single electric utility. Small multi-jurisdictional utilities | ||||||
2 | may request a procurement plan for a portion of or all of its | ||||||
3 | Illinois load. Each procurement plan shall analyze the | ||||||
4 | projected balance of supply and demand for eligible retail | ||||||
5 | customers over a 5-year period with the first planning year | ||||||
6 | beginning on June 1 of the year following the year in which the | ||||||
7 | plan is filed. The plan shall specifically identify the | ||||||
8 | wholesale products to be procured following plan approval, and | ||||||
9 | shall follow all the requirements set forth in the Public | ||||||
10 | Utilities Act and all applicable State and federal laws, | ||||||
11 | statutes, rules, or regulations, as well as Commission orders. | ||||||
12 | Nothing in this Section precludes consideration of contracts | ||||||
13 | longer than 5 years and related forecast data. Unless specified | ||||||
14 | otherwise in this Section, in the procurement plan or in the | ||||||
15 | implementing tariff, any procurement occurring in accordance | ||||||
16 | with this plan shall be competitively bid through a request for | ||||||
17 | proposals process. Approval and implementation of the | ||||||
18 | procurement plan shall be subject to review and approval by the | ||||||
19 | Commission according to the provisions set forth in this | ||||||
20 | Section. A procurement plan shall include each of the following | ||||||
21 | components: | ||||||
22 | (1) Hourly load analysis. This analysis shall include: | ||||||
23 | (i) multi-year historical analysis of hourly | ||||||
24 | loads; | ||||||
25 | (ii) switching trends and competitive retail | ||||||
26 | market analysis; |
| |||||||
| |||||||
1 | (iii) known or projected changes to future loads; | ||||||
2 | and | ||||||
3 | (iv) growth forecasts by customer class. | ||||||
4 | (2) Analysis of the impact of any demand side and | ||||||
5 | renewable energy initiatives. This analysis shall include: | ||||||
6 | (i) the impact of demand response programs and | ||||||
7 | energy efficiency programs, both current and | ||||||
8 | projected; for small multi-jurisdictional utilities, | ||||||
9 | the impact of demand response and energy efficiency | ||||||
10 | programs approved pursuant to Section 8-408 of this | ||||||
11 | Act, both current and projected; and | ||||||
12 | (ii) supply side needs that are projected to be | ||||||
13 | offset by purchases of renewable energy resources, if | ||||||
14 | any. | ||||||
15 | (3) A plan for meeting the expected load requirements | ||||||
16 | that will not be met through preexisting contracts. This | ||||||
17 | plan shall include: | ||||||
18 | (i) definitions of the different Illinois retail | ||||||
19 | customer classes for which supply is being purchased; | ||||||
20 | (ii) the proposed mix of demand-response products | ||||||
21 | for which contracts will be executed during the next | ||||||
22 | year. For small multi-jurisdictional electric | ||||||
23 | utilities that on December 31, 2005 served fewer than | ||||||
24 | 100,000 customers in Illinois, these shall be defined | ||||||
25 | as demand-response products offered in an energy | ||||||
26 | efficiency plan approved pursuant to Section 8-408 of |
| |||||||
| |||||||
1 | this Act. The cost-effective demand-response measures | ||||||
2 | shall be procured whenever the cost is lower than | ||||||
3 | procuring comparable capacity products, provided that | ||||||
4 | such products shall: | ||||||
5 | (A) be procured by a demand-response provider | ||||||
6 | from eligible retail customers; | ||||||
7 | (B) at least satisfy the demand-response | ||||||
8 | requirements of the regional transmission | ||||||
9 | organization market in which the utility's service | ||||||
10 | territory is located, including, but not limited | ||||||
11 | to, any applicable capacity or dispatch | ||||||
12 | requirements; | ||||||
13 | (C) provide for customers' participation in | ||||||
14 | the stream of benefits produced by the | ||||||
15 | demand-response products; | ||||||
16 | (D) provide for reimbursement by the | ||||||
17 | demand-response provider of the utility for any | ||||||
18 | costs incurred as a result of the failure of the | ||||||
19 | supplier of such products to perform its | ||||||
20 | obligations thereunder; and | ||||||
21 | (E) meet the same credit requirements as apply | ||||||
22 | to suppliers of capacity, in the applicable | ||||||
23 | regional transmission organization market; | ||||||
24 | (iii) monthly forecasted system supply | ||||||
25 | requirements, including expected minimum, maximum, and | ||||||
26 | average values for the planning period; |
| |||||||
| |||||||
1 | (iv) the proposed mix and selection of standard | ||||||
2 | wholesale products for which contracts will be | ||||||
3 | executed during the next year, separately or in | ||||||
4 | combination, to meet that portion of its load | ||||||
5 | requirements not met through pre-existing contracts, | ||||||
6 | including but not limited to monthly 5 x 16 peak period | ||||||
7 | block energy, monthly off-peak wrap energy, monthly 7 x | ||||||
8 | 24 energy, annual 5 x 16 energy, annual off-peak wrap | ||||||
9 | energy, annual 7 x 24 energy, monthly capacity, annual | ||||||
10 | capacity, peak load capacity obligations, capacity | ||||||
11 | purchase plan, and ancillary services; | ||||||
12 | (v) proposed term structures for each wholesale | ||||||
13 | product type included in the proposed procurement plan | ||||||
14 | portfolio of products; and | ||||||
15 | (vi) an assessment of the price risk, load | ||||||
16 | uncertainty, and other factors that are associated | ||||||
17 | with the proposed procurement plan; this assessment, | ||||||
18 | to the extent possible, shall include an analysis of | ||||||
19 | the following factors: contract terms, time frames for | ||||||
20 | securing products or services, fuel costs, weather | ||||||
21 | patterns, transmission costs, market conditions, and | ||||||
22 | the governmental regulatory environment; the proposed | ||||||
23 | procurement plan shall also identify alternatives for | ||||||
24 | those portfolio measures that are identified as having | ||||||
25 | significant price risk. | ||||||
26 | (4) Proposed procedures for balancing loads. The |
| |||||||
| |||||||
1 | procurement plan shall include, for load requirements | ||||||
2 | included in the procurement plan, the process for (i) | ||||||
3 | hourly balancing of supply and demand and (ii) the criteria | ||||||
4 | for portfolio re-balancing in the event of significant | ||||||
5 | shifts in load. | ||||||
6 | (c) The procurement process set forth in Section 1-75 of | ||||||
7 | the Illinois Power Agency Act and subsection (e) of this | ||||||
8 | Section shall be administered by a procurement administrator | ||||||
9 | and monitored by a procurement monitor. | ||||||
10 | (1) The procurement administrator shall: | ||||||
11 | (i) design the final procurement process in | ||||||
12 | accordance with Section 1-75 of the Illinois Power | ||||||
13 | Agency Act and subsection (e) of this Section following | ||||||
14 | Commission approval of the procurement plan; | ||||||
15 | (ii) develop benchmarks in accordance with | ||||||
16 | subsection (e)(3) to be used to evaluate bids; these | ||||||
17 | benchmarks shall be submitted to the Commission for | ||||||
18 | review and approval on a confidential basis prior to | ||||||
19 | the procurement event; | ||||||
20 | (iii) serve as the interface between the electric | ||||||
21 | utility and suppliers; | ||||||
22 | (iv) manage the bidder pre-qualification and | ||||||
23 | registration process; | ||||||
24 | (v) obtain the electric utilities' agreement to | ||||||
25 | the final form of all supply contracts and credit | ||||||
26 | collateral agreements; |
| |||||||
| |||||||
1 | (vi) administer the request for proposals process; | ||||||
2 | (vii) have the discretion to negotiate to | ||||||
3 | determine whether bidders are willing to lower the | ||||||
4 | price of bids that meet the benchmarks approved by the | ||||||
5 | Commission; any post-bid negotiations with bidders | ||||||
6 | shall be limited to price only and shall be completed | ||||||
7 | within 24 hours after opening the sealed bids and shall | ||||||
8 | be conducted in a fair and unbiased manner; in | ||||||
9 | conducting the negotiations, there shall be no | ||||||
10 | disclosure of any information derived from proposals | ||||||
11 | submitted by competing bidders; if information is | ||||||
12 | disclosed to any bidder, it shall be provided to all | ||||||
13 | competing bidders; | ||||||
14 | (viii) maintain confidentiality of supplier and | ||||||
15 | bidding information in a manner consistent with all | ||||||
16 | applicable laws, rules, regulations, and tariffs; | ||||||
17 | (ix) submit a confidential report to the | ||||||
18 | Commission recommending acceptance or rejection of | ||||||
19 | bids; | ||||||
20 | (x) notify the utility of contract counterparties | ||||||
21 | and contract specifics; and | ||||||
22 | (xi) administer related contingency procurement | ||||||
23 | events. | ||||||
24 | (2) The procurement monitor, who shall be retained by | ||||||
25 | the Commission, shall: | ||||||
26 | (i) monitor interactions among the procurement |
| |||||||
| |||||||
1 | administrator, suppliers, and utility; | ||||||
2 | (ii) monitor and report to the Commission on the | ||||||
3 | progress of the procurement process; | ||||||
4 | (iii) provide an independent confidential report | ||||||
5 | to the Commission regarding the results of the | ||||||
6 | procurement event; | ||||||
7 | (iv) assess compliance with the procurement plans | ||||||
8 | approved by the Commission for each utility that on | ||||||
9 | December 31, 2005 provided electric service to a least | ||||||
10 | 100,000 customers in Illinois and for each small | ||||||
11 | multi-jurisdictional utility that on December 31, 2005 | ||||||
12 | served less than 100,000 customers in Illinois; | ||||||
13 | (v) preserve the confidentiality of supplier and | ||||||
14 | bidding information in a manner consistent with all | ||||||
15 | applicable laws, rules, regulations, and tariffs; | ||||||
16 | (vi) provide expert advice to the Commission and | ||||||
17 | consult with the procurement administrator regarding | ||||||
18 | issues related to procurement process design, rules, | ||||||
19 | protocols, and policy-related matters; and | ||||||
20 | (vii) consult with the procurement administrator | ||||||
21 | regarding the development and use of benchmark | ||||||
22 | criteria, standard form contracts, credit policies, | ||||||
23 | and bid documents. | ||||||
24 | (d) Except as provided in subsection (j), the planning | ||||||
25 | process shall be conducted as follows: | ||||||
26 | (1) Beginning in 2008, each Illinois utility procuring |
| |||||||
| |||||||
1 | power pursuant to this Section shall annually provide a | ||||||
2 | range of load forecasts to the Illinois Power Agency by | ||||||
3 | July 15 of each year, or such other date as may be required | ||||||
4 | by the Commission or Agency. The load forecasts shall cover | ||||||
5 | the 5-year procurement planning period for the next | ||||||
6 | procurement plan and shall include hourly data | ||||||
7 | representing a high-load, low-load and expected-load | ||||||
8 | scenario for the load of the eligible retail customers. The | ||||||
9 | utility shall provide supporting data and assumptions for | ||||||
10 | each of the scenarios.
| ||||||
11 | (2) Beginning in 2008, the Illinois Power Agency shall | ||||||
12 | prepare a procurement plan by August 15th of each year, or | ||||||
13 | such other date as may be required by the Commission. The | ||||||
14 | procurement plan shall identify the portfolio of | ||||||
15 | demand-response and power and energy products to be | ||||||
16 | procured. Cost-effective demand-response measures shall be | ||||||
17 | procured as set forth in item (iii) of subsection (b) of | ||||||
18 | this Section. Copies of the procurement plan shall be | ||||||
19 | posted and made publicly available on the Agency's and | ||||||
20 | Commission's websites, and copies shall also be provided to | ||||||
21 | each affected electric utility. An affected utility shall | ||||||
22 | have 30 days following the date of posting to provide | ||||||
23 | comment to the Agency on the procurement plan. Other | ||||||
24 | interested entities also may comment on the procurement | ||||||
25 | plan. All comments submitted to the Agency shall be | ||||||
26 | specific, supported by data or other detailed analyses, |
| |||||||
| |||||||
1 | and, if objecting to all or a portion of the procurement | ||||||
2 | plan, accompanied by specific alternative wording or | ||||||
3 | proposals. All comments shall be posted on the Agency's and | ||||||
4 | Commission's websites. During this 30-day comment period, | ||||||
5 | the Agency shall hold at least one public hearing within | ||||||
6 | each utility's service area for the purpose of receiving | ||||||
7 | public comment on the procurement plan. Within 14 days | ||||||
8 | following the end of the 30-day review period, the Agency | ||||||
9 | shall revise the procurement plan as necessary based on the | ||||||
10 | comments received and file the procurement plan with the | ||||||
11 | Commission and post the procurement plan on the websites. | ||||||
12 | (3) Within 5 days after the filing of the procurement | ||||||
13 | plan, any person objecting to the procurement plan shall | ||||||
14 | file an objection with the Commission. Within 10 days after | ||||||
15 | the filing, the Commission shall determine whether a | ||||||
16 | hearing is necessary. The Commission shall enter its order | ||||||
17 | confirming or modifying the procurement plan within 90 days | ||||||
18 | after the filing of the procurement plan by the Illinois | ||||||
19 | Power Agency. | ||||||
20 | (4) The Commission shall approve the procurement plan, | ||||||
21 | including expressly the forecast used in the procurement | ||||||
22 | plan, if the Commission determines that it will ensure | ||||||
23 | adequate, reliable, affordable, efficient, and | ||||||
24 | environmentally sustainable electric service at the lowest | ||||||
25 | total cost over time, taking into account any benefits of | ||||||
26 | price stability. |
| |||||||
| |||||||
1 | (e) The procurement process shall include each of the | ||||||
2 | following components: | ||||||
3 | (1) Solicitation, pre-qualification, and registration | ||||||
4 | of bidders. The procurement administrator shall | ||||||
5 | disseminate information to potential bidders to promote a | ||||||
6 | procurement event, notify potential bidders that the | ||||||
7 | procurement administrator may enter into a post-bid price | ||||||
8 | negotiation with bidders that meet the applicable | ||||||
9 | benchmarks, provide supply requirements, and otherwise | ||||||
10 | explain the competitive procurement process. In addition | ||||||
11 | to such other publication as the procurement administrator | ||||||
12 | determines is appropriate, this information shall be | ||||||
13 | posted on the Illinois Power Agency's and the Commission's | ||||||
14 | websites. The procurement administrator shall also | ||||||
15 | administer the prequalification process, including | ||||||
16 | evaluation of credit worthiness, compliance with | ||||||
17 | procurement rules, and agreement to the standard form | ||||||
18 | contract developed pursuant to paragraph (2) of this | ||||||
19 | subsection (e). The procurement administrator shall then | ||||||
20 | identify and register bidders to participate in the | ||||||
21 | procurement event. | ||||||
22 | (2) Standard contract forms and credit terms and | ||||||
23 | instruments. The procurement administrator, in | ||||||
24 | consultation with the utilities, the Commission, and other | ||||||
25 | interested parties and subject to Commission oversight, | ||||||
26 | shall develop and provide standard contract forms for the |
| |||||||
| |||||||
1 | supplier contracts that meet generally accepted industry | ||||||
2 | practices. Standard credit terms and instruments that meet | ||||||
3 | generally accepted industry practices shall be similarly | ||||||
4 | developed. The procurement administrator shall make | ||||||
5 | available to the Commission all written comments it | ||||||
6 | receives on the contract forms, credit terms, or | ||||||
7 | instruments. If the procurement administrator cannot reach | ||||||
8 | agreement with the applicable electric utility as to the | ||||||
9 | contract terms and conditions, the procurement | ||||||
10 | administrator must notify the Commission of any disputed | ||||||
11 | terms and the Commission shall resolve the dispute. The | ||||||
12 | terms of the contracts shall not be subject to negotiation | ||||||
13 | by winning bidders, and the bidders must agree to the terms | ||||||
14 | of the contract in advance so that winning bids are | ||||||
15 | selected solely on the basis of price. | ||||||
16 | (3) Establishment of a market-based price benchmark. | ||||||
17 | As part of the development of the procurement process, the | ||||||
18 | procurement administrator, in consultation with the | ||||||
19 | Commission staff, Agency staff, and the procurement | ||||||
20 | monitor, shall establish benchmarks for evaluating the | ||||||
21 | final prices in the contracts for each of the products that | ||||||
22 | will be procured through the procurement process. The | ||||||
23 | benchmarks shall be based on price data for similar | ||||||
24 | products for the same delivery period and same delivery | ||||||
25 | hub, or other delivery hubs after adjusting for that | ||||||
26 | difference. The price benchmarks may also be adjusted to |
| |||||||
| |||||||
1 | take into account differences between the information | ||||||
2 | reflected in the underlying data sources and the specific | ||||||
3 | products and procurement process being used to procure | ||||||
4 | power for the Illinois utilities. The benchmarks shall be | ||||||
5 | confidential but shall be provided to, and will be subject | ||||||
6 | to Commission review and approval, prior to a procurement | ||||||
7 | event. | ||||||
8 | (4) Request for proposals competitive procurement | ||||||
9 | process. The procurement administrator shall design and | ||||||
10 | issue a request for proposals to supply electricity in | ||||||
11 | accordance with each utility's procurement plan, as | ||||||
12 | approved by the Commission. The request for proposals shall | ||||||
13 | set forth a procedure for sealed, binding commitment | ||||||
14 | bidding with pay-as-bid settlement, and provision for | ||||||
15 | selection of bids on the basis of price. | ||||||
16 | (5) A plan for implementing contingencies in the event | ||||||
17 | of supplier default or failure of the procurement process | ||||||
18 | to fully meet the expected load requirement due to | ||||||
19 | insufficient supplier participation, Commission rejection | ||||||
20 | of results, or any other cause. | ||||||
21 | (i) Event of supplier default: In the event of | ||||||
22 | supplier default, the utility shall review the | ||||||
23 | contract of the defaulting supplier to determine if the | ||||||
24 | amount of supply is 200 megawatts or greater, and if | ||||||
25 | there are more than 60 days remaining of the contract | ||||||
26 | term. If both of these conditions are met, and the |
| |||||||
| |||||||
1 | default results in termination of the contract, the | ||||||
2 | utility shall immediately notify the Illinois Power | ||||||
3 | Agency that a request for proposals must be issued to | ||||||
4 | procure replacement power, and the procurement | ||||||
5 | administrator shall run an additional procurement | ||||||
6 | event. If the contracted supply of the defaulting | ||||||
7 | supplier is less than 200 megawatts or there are less | ||||||
8 | than 60 days remaining of the contract term, the | ||||||
9 | utility shall procure power and energy from the | ||||||
10 | applicable regional transmission organization market, | ||||||
11 | including ancillary services, capacity, and day-ahead | ||||||
12 | or real time energy, or both, for the duration of the | ||||||
13 | contract term to replace the contracted supply; | ||||||
14 | provided, however, that if a needed product is not | ||||||
15 | available through the regional transmission | ||||||
16 | organization market it shall be purchased from the | ||||||
17 | wholesale market. | ||||||
18 | (ii) Failure of the procurement process to fully | ||||||
19 | meet the expected load requirement: If the procurement | ||||||
20 | process fails to fully meet the expected load | ||||||
21 | requirement due to insufficient supplier participation | ||||||
22 | or due to a Commission rejection of the procurement | ||||||
23 | results, the procurement administrator, the | ||||||
24 | procurement monitor, and the Commission staff shall | ||||||
25 | meet within 10 days to analyze potential causes of low | ||||||
26 | supplier interest or causes for the Commission |
| |||||||
| |||||||
1 | decision. If changes are identified that would likely | ||||||
2 | result in increased supplier participation, or that | ||||||
3 | would address concerns causing the Commission to | ||||||
4 | reject the results of the prior procurement event, the | ||||||
5 | procurement administrator may implement those changes | ||||||
6 | and rerun the request for proposals process according | ||||||
7 | to a schedule determined by those parties and | ||||||
8 | consistent with Section 1-75 of the Illinois Power | ||||||
9 | Agency Act and this subsection. In any event, a new | ||||||
10 | request for proposals process shall be implemented by | ||||||
11 | the procurement administrator within 90 days after the | ||||||
12 | determination that the procurement process has failed | ||||||
13 | to fully meet the expected load requirement. | ||||||
14 | (iii) In all cases where there is insufficient | ||||||
15 | supply provided under contracts awarded through the | ||||||
16 | procurement process to fully meet the electric | ||||||
17 | utility's load requirement, the utility shall meet the | ||||||
18 | load requirement by procuring power and energy from the | ||||||
19 | applicable regional transmission organization market, | ||||||
20 | including ancillary services, capacity, and day-ahead | ||||||
21 | or real time energy or both; provided, however, that if | ||||||
22 | a needed product is not available through the regional | ||||||
23 | transmission organization market it shall be purchased | ||||||
24 | from the wholesale market. | ||||||
25 | (6) The procurement process described in this | ||||||
26 | subsection is exempt from the requirements of the Illinois |
| |||||||
| |||||||
1 | Procurement Code, pursuant to Section 20-10 of that Code. | ||||||
2 | (f) Within 2 business days after opening the sealed bids, | ||||||
3 | the procurement administrator shall submit a confidential | ||||||
4 | report to the Commission. The report shall contain the results | ||||||
5 | of the bidding for each of the products along with the | ||||||
6 | procurement administrator's recommendation for the acceptance | ||||||
7 | and rejection of bids based on the price benchmark criteria and | ||||||
8 | other factors observed in the process. The procurement monitor | ||||||
9 | also shall submit a confidential report to the Commission | ||||||
10 | within 2 business days after opening the sealed bids. The | ||||||
11 | report shall contain the procurement monitor's assessment of | ||||||
12 | bidder behavior in the process as well as an assessment of the | ||||||
13 | procurement administrator's compliance with the procurement | ||||||
14 | process and rules. The Commission shall review the confidential | ||||||
15 | reports submitted by the procurement administrator and | ||||||
16 | procurement monitor, and shall accept or reject the | ||||||
17 | recommendations of the procurement administrator within 2 | ||||||
18 | business days after receipt of the reports. | ||||||
19 | (g) Within 3 business days after the Commission decision | ||||||
20 | approving the results of a procurement event, the utility shall | ||||||
21 | enter into binding contractual arrangements with the winning | ||||||
22 | suppliers using the standard form contracts; except that the | ||||||
23 | utility shall not be required either directly or indirectly to | ||||||
24 | execute the contracts if a tariff that is consistent with | ||||||
25 | subsection (l) of this Section has not been approved and placed | ||||||
26 | into effect for that utility. |
| |||||||
| |||||||
1 | (h) The names of the successful bidders and the load | ||||||
2 | weighted average of the winning bid prices for each contract | ||||||
3 | type and for each contract term shall be made available to the | ||||||
4 | public at the time of Commission approval of a procurement | ||||||
5 | event. The Commission, the procurement monitor, the | ||||||
6 | procurement administrator, the Illinois Power Agency, and all | ||||||
7 | participants in the procurement process shall maintain the | ||||||
8 | confidentiality of all other supplier and bidding information | ||||||
9 | in a manner consistent with all applicable laws, rules, | ||||||
10 | regulations, and tariffs. Confidential information, including | ||||||
11 | the confidential reports submitted by the procurement | ||||||
12 | administrator and procurement monitor pursuant to subsection | ||||||
13 | (f) of this Section, shall not be made publicly available and | ||||||
14 | shall not be discoverable by any party in any proceeding, | ||||||
15 | absent a compelling demonstration of need, nor shall those | ||||||
16 | reports be admissible in any proceeding other than one for law | ||||||
17 | enforcement purposes. | ||||||
18 | (i) Within 2 business days after a Commission decision | ||||||
19 | approving the results of a procurement event or such other date | ||||||
20 | as may be required by the Commission from time to time, the | ||||||
21 | utility shall file for informational purposes with the | ||||||
22 | Commission its actual or estimated retail supply charges, as | ||||||
23 | applicable, by customer supply group reflecting the costs | ||||||
24 | associated with the procurement and computed in accordance with | ||||||
25 | the tariffs filed pursuant to subsection (l) of this Section | ||||||
26 | and approved by the Commission. |
| |||||||
| |||||||
1 | (j) Within 60 days following the effective date of this | ||||||
2 | amendatory Act, each electric utility that on December 31, 2005 | ||||||
3 | provided electric service to at least 100,000 customers in | ||||||
4 | Illinois shall prepare and file with the Commission an initial | ||||||
5 | procurement plan, which shall conform in all material respects | ||||||
6 | to the requirements of the procurement plan set forth in | ||||||
7 | subsection (b); provided, however, that the Illinois Power | ||||||
8 | Agency Act shall not apply to the initial procurement plan | ||||||
9 | prepared pursuant to this subsection. The initial procurement | ||||||
10 | plan shall identify the portfolio of power and energy products | ||||||
11 | to be procured and delivered for the period June 2008 through | ||||||
12 | May 2009, and shall identify the proposed procurement | ||||||
13 | administrator, who shall have the same experience and expertise | ||||||
14 | as is required of a procurement administrator hired pursuant to | ||||||
15 | Section 1-75 of the Illinois Power Agency Act. Copies of the | ||||||
16 | procurement plan shall be posted and made publicly available on | ||||||
17 | the Commission's website. The initial procurement plan may | ||||||
18 | include contracts for renewable resources that extend beyond | ||||||
19 | May 2009. | ||||||
20 | (i) Within 14 days following filing of the initial | ||||||
21 | procurement plan, any person may file a detailed objection | ||||||
22 | with the Commission contesting the procurement plan | ||||||
23 | submitted by the electric utility. All objections to the | ||||||
24 | electric utility's plan shall be specific, supported by | ||||||
25 | data or other detailed analyses. The electric utility may | ||||||
26 | file a response to any objections to its procurement plan |
| |||||||
| |||||||
1 | within 7 days after the date objections are due to be | ||||||
2 | filed. Within 7 days after the date the utility's response | ||||||
3 | is due, the Commission shall determine whether a hearing is | ||||||
4 | necessary. If it determines that a hearing is necessary, it | ||||||
5 | shall require the hearing to be completed and issue an | ||||||
6 | order on the procurement plan within 60 days after the | ||||||
7 | filing of the procurement plan by the electric utility. | ||||||
8 | (ii) The order shall approve or modify the procurement | ||||||
9 | plan, approve an independent procurement administrator, | ||||||
10 | and approve or modify the electric utility's tariffs that | ||||||
11 | are proposed with the initial procurement plan. The | ||||||
12 | Commission shall approve the procurement plan if the | ||||||
13 | Commission determines that it will ensure adequate, | ||||||
14 | reliable, affordable, efficient, and environmentally | ||||||
15 | sustainable electric service at the lowest total cost over | ||||||
16 | time, taking into account any benefits of price stability. | ||||||
17 | (k) In order to promote price stability for residential and | ||||||
18 | small commercial customers during the transition to | ||||||
19 | competition in Illinois, and notwithstanding any other | ||||||
20 | provision of this Act, each electric utility subject to this | ||||||
21 | Section shall enter into one or more multi-year financial swap | ||||||
22 | contracts that become effective on the effective date of this | ||||||
23 | amendatory Act. These contracts may be executed with generators | ||||||
24 | and power marketers, including affiliated interests of the | ||||||
25 | electric utility. These contracts shall be for a term of no | ||||||
26 | more than 5 years and shall, for each respective utility or for |
| |||||||
| |||||||
1 | any Illinois electric utilities that are affiliated by virtue | ||||||
2 | of a common parent company and that are thereby considered a | ||||||
3 | single electric utility for purposes of this subsection (k), | ||||||
4 | not exceed in the aggregate 3,000 megawatts for any hour of the | ||||||
5 | year. The contracts shall be financial contracts and not energy | ||||||
6 | sales contracts. The contracts shall be executed as | ||||||
7 | transactions under a negotiated master agreement based on the | ||||||
8 | form of master agreement for financial swap contracts sponsored | ||||||
9 | by the International Swaps and Derivatives Association, Inc. | ||||||
10 | and shall be considered pre-existing contracts in the | ||||||
11 | utilities' procurement plans for residential and small | ||||||
12 | commercial customers. Costs incurred pursuant to a contract | ||||||
13 | authorized by this subsection (k) shall be deemed prudently | ||||||
14 | incurred and reasonable in amount and the electric utility | ||||||
15 | shall be entitled to full cost recovery pursuant to the tariffs | ||||||
16 | filed with the Commission. | ||||||
17 | (k-5) In order to promote price stability for residential | ||||||
18 | and small commercial customers during the infrastructure | ||||||
19 | investment program described in subsection (b) of Section | ||||||
20 | 16-108.5 of this Act, and notwithstanding any other provision | ||||||
21 | of this Act or the Illinois Power Agency Act, for each electric | ||||||
22 | utility that serves more than one million retail customers in | ||||||
23 | Illinois, the Illinois Power Agency shall conduct a procurement | ||||||
24 | event within 120 days after October 26, 2011 (the effective | ||||||
25 | date of Public Act 97-616) and may procure contracts for energy | ||||||
26 | and renewable energy credits for the period June 1, 2013 |
| |||||||
| |||||||
1 | through December 31, 2017 that satisfy the requirements of this | ||||||
2 | subsection (k-5), including the benchmarks described in this | ||||||
3 | subsection. These contracts shall be entered into as the result | ||||||
4 | of a competitive procurement event, and, to the extent that any | ||||||
5 | provisions of this Section or the Illinois Power Agency Act do | ||||||
6 | not conflict with this subsection (k-5), such provisions shall | ||||||
7 | apply to the procurement event. The energy contracts shall be | ||||||
8 | for 24 hour by 7 day supply over a term that runs from the first | ||||||
9 | delivery year through December 31, 2017. For a utility that | ||||||
10 | serves over 2 million customers, the energy contracts shall be | ||||||
11 | multi-year with pricing escalating at 2.5% per annum. The | ||||||
12 | energy contracts may be designed as financial swaps or may | ||||||
13 | require physical delivery. | ||||||
14 | Within 30 days of October 26, 2011 (the effective date of | ||||||
15 | Public Act 97-616), each such utility shall submit to the | ||||||
16 | Agency updated load forecasts for the period June 1, 2013 | ||||||
17 | through December 31, 2017. The megawatt volume of the contracts | ||||||
18 | shall be based on the updated load forecasts of the minimum | ||||||
19 | monthly on-peak or off-peak average load requirements shown in | ||||||
20 | the forecasts, taking into account any existing energy | ||||||
21 | contracts in effect as well as the expected migration of the | ||||||
22 | utility's customers to alternative retail electric suppliers. | ||||||
23 | The renewable energy credit volume shall be based on the number | ||||||
24 | of credits that would satisfy the requirements of subsection | ||||||
25 | (c) of Section 1-75 of the Illinois Power Agency Act, subject | ||||||
26 | to the rate impact caps and other provisions of subsection (c) |
| |||||||
| |||||||
1 | of Section 1-75 of the Illinois Power Agency Act. The | ||||||
2 | evaluation of contract bids in the competitive procurement | ||||||
3 | events for energy and for renewable energy credits shall | ||||||
4 | incorporate price benchmarks set collaboratively by the | ||||||
5 | Agency, the procurement administrator, the staff of the | ||||||
6 | Commission, and the procurement monitor. If the contracts are | ||||||
7 | swap contracts, then they shall be executed as transactions | ||||||
8 | under a negotiated master agreement based on the form of master | ||||||
9 | agreement for financial swap contracts sponsored by the | ||||||
10 | International Swaps and Derivatives Association, Inc. Costs | ||||||
11 | incurred pursuant to a contract authorized by this subsection | ||||||
12 | (k-5) shall be deemed prudently incurred and reasonable in | ||||||
13 | amount and the electric utility shall be entitled to full cost | ||||||
14 | recovery pursuant to the tariffs filed with the Commission. | ||||||
15 | The cost of administering the procurement event described | ||||||
16 | in this subsection (k-5) shall be paid by the winning supplier | ||||||
17 | or suppliers to the procurement administrator through a | ||||||
18 | supplier fee. In the event that there is no winning supplier | ||||||
19 | for a particular utility, such utility will pay the procurement | ||||||
20 | administrator for the costs associated with the procurement | ||||||
21 | event, and those costs shall not be a recoverable expense. | ||||||
22 | Nothing in this subsection (k-5) is intended to alter the | ||||||
23 | recovery of costs for any other procurement event. | ||||||
24 | (l) An electric utility shall recover its costs incurred | ||||||
25 | under this Section, including, but not limited to, the costs of | ||||||
26 | procuring power and energy demand-response resources under |
| |||||||
| |||||||
1 | this Section. The utility shall file with the initial | ||||||
2 | procurement plan its proposed tariffs through which its costs | ||||||
3 | of procuring power that are incurred pursuant to a | ||||||
4 | Commission-approved procurement plan and those other costs | ||||||
5 | identified in this subsection (l), will be recovered. The | ||||||
6 | tariffs shall include a formula rate or charge designed to pass | ||||||
7 | through both the costs incurred by the utility in procuring a | ||||||
8 | supply of electric power and energy for the applicable customer | ||||||
9 | classes with no mark-up or return on the price paid by the | ||||||
10 | utility for that supply, plus any just and reasonable costs | ||||||
11 | that the utility incurs in arranging and providing for the | ||||||
12 | supply of electric power and energy. The formula rate or charge | ||||||
13 | shall also contain provisions that ensure that its application | ||||||
14 | does not result in over or under recovery due to changes in | ||||||
15 | customer usage and demand patterns, and that provide for the | ||||||
16 | correction, on at least an annual basis, of any accounting | ||||||
17 | errors that may occur. A utility shall recover through the | ||||||
18 | tariff all reasonable costs incurred to implement or comply | ||||||
19 | with any procurement plan that is developed and put into effect | ||||||
20 | pursuant to Section 1-75 of the Illinois Power Agency Act and | ||||||
21 | this Section, including any fees assessed by the Illinois Power | ||||||
22 | Agency, costs associated with load balancing, and contingency | ||||||
23 | plan costs. The electric utility shall also recover its full | ||||||
24 | costs of procuring electric supply for which it contracted | ||||||
25 | before the effective date of this Section in conjunction with | ||||||
26 | the provision of full requirements service under fixed-price |
| |||||||
| |||||||
1 | bundled service tariffs subsequent to December 31, 2006. All | ||||||
2 | such costs shall be deemed to have been prudently incurred. The | ||||||
3 | pass-through tariffs that are filed and approved pursuant to | ||||||
4 | this Section shall not be subject to review under, or in any | ||||||
5 | way limited by, Section 16-111(i) of this Act. | ||||||
6 | (m) The Commission has the authority to adopt rules to | ||||||
7 | carry out the provisions of this Section. For the public | ||||||
8 | interest, safety, and welfare, the Commission also has | ||||||
9 | authority to adopt rules to carry out the provisions of this | ||||||
10 | Section on an emergency basis immediately following the | ||||||
11 | effective date of this amendatory Act. | ||||||
12 | (n) Notwithstanding any other provision of this Act, any | ||||||
13 | affiliated electric utilities that submit a single procurement | ||||||
14 | plan covering their combined needs may procure for those | ||||||
15 | combined needs in conjunction with that plan, and may enter | ||||||
16 | jointly into power supply contracts, purchases, and other | ||||||
17 | procurement arrangements, and allocate capacity and energy and | ||||||
18 | cost responsibility therefor among themselves in proportion to | ||||||
19 | their requirements. | ||||||
20 | (o) On or before June 1 of each year, the Commission shall | ||||||
21 | hold an informal hearing for the purpose of receiving comments | ||||||
22 | on the prior year's procurement process and any recommendations | ||||||
23 | for change.
| ||||||
24 | (p) An electric utility subject to this Section may propose | ||||||
25 | to invest, lease, own, or operate an electric generation | ||||||
26 | facility as part of its procurement plan, provided the utility |
| |||||||
| |||||||
1 | demonstrates that such facility is the least-cost option to | ||||||
2 | provide electric service to eligible retail customers. If the | ||||||
3 | facility is shown to be the least-cost option and is included | ||||||
4 | in a procurement plan prepared in accordance with Section 1-75 | ||||||
5 | of the Illinois Power Agency Act and this Section, then the | ||||||
6 | electric utility shall make a filing pursuant to Section 8-406 | ||||||
7 | of this Act, and may request of the Commission any statutory | ||||||
8 | relief required thereunder. If the Commission grants all of the | ||||||
9 | necessary approvals for the proposed facility, such supply | ||||||
10 | shall thereafter be considered as a pre-existing contract under | ||||||
11 | subsection (b) of this Section. The Commission shall in any | ||||||
12 | order approving a proposal under this subsection specify how | ||||||
13 | the utility will recover the prudently incurred costs of | ||||||
14 | investing in, leasing, owning, or operating such generation | ||||||
15 | facility through just and reasonable rates charged to eligible | ||||||
16 | retail customers. Cost recovery for facilities included in the | ||||||
17 | utility's procurement plan pursuant to this subsection shall | ||||||
18 | not be subject to review under or in any way limited by the | ||||||
19 | provisions of Section 16-111(i) of this Act. Nothing in this | ||||||
20 | Section is intended to prohibit a utility from filing for a | ||||||
21 | fuel adjustment clause as is otherwise permitted under Section | ||||||
22 | 9-220 of this Act.
| ||||||
23 | (Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11; | ||||||
24 | 97-813, eff. 7-13-12.)
| ||||||
25 | (220 ILCS 5/16-115)
|
| |||||||
| |||||||
1 | Sec. 16-115. Certification of alternative retail
electric | ||||||
2 | suppliers. | ||||||
3 | (a) Any alternative retail electric supplier must obtain
a | ||||||
4 | certificate of service authority from the Commission in
| ||||||
5 | accordance with this Section before serving any retail
customer | ||||||
6 | or other user located in this State. An alternative
retail | ||||||
7 | electric supplier may request, and the Commission may
grant, a | ||||||
8 | certificate of service authority for the entire State
or for a | ||||||
9 | specified geographic area of the State.
| ||||||
10 | (b) An alternative retail electric supplier seeking a
| ||||||
11 | certificate of service authority shall file with the
Commission | ||||||
12 | a verified application containing information
showing that the | ||||||
13 | applicant meets the requirements of this
Section. The | ||||||
14 | alternative retail electric supplier shall
publish notice of | ||||||
15 | its application in the official State
newspaper within 10 days | ||||||
16 | following the date of its filing. No
later than 45 days after | ||||||
17 | the application is properly filed
with the Commission, and such | ||||||
18 | notice is published, the
Commission shall issue its order | ||||||
19 | granting or denying the
application.
| ||||||
20 | (c) An application for a certificate of service
authority | ||||||
21 | shall identify the area or areas in which the
applicant intends | ||||||
22 | to offer service and the types of services
it intends to offer. | ||||||
23 | Applicants that seek to serve
residential or small commercial | ||||||
24 | retail customers within a
geographic area that is smaller than | ||||||
25 | an electric utility's
service area shall submit evidence | ||||||
26 | demonstrating that the
designation of this smaller area does |
| |||||||
| |||||||
1 | not violate Section 16-115A. An applicant
that seeks to serve | ||||||
2 | residential or small
commercial retail customers may state in | ||||||
3 | its application for
certification any limitations that will be | ||||||
4 | imposed on the
number of customers or maximum load to be | ||||||
5 | served.
| ||||||
6 | (d) The Commission shall grant the application for a
| ||||||
7 | certificate of service authority if it makes the findings set
| ||||||
8 | forth in this subsection
based on the verified
application and | ||||||
9 | such other information as the applicant may
submit:
| ||||||
10 | (1) That the applicant possesses sufficient
technical, | ||||||
11 | financial and managerial resources and
abilities to | ||||||
12 | provide the service for which it seeks a
certificate of | ||||||
13 | service authority. In determining the
level of technical, | ||||||
14 | financial and managerial resources
and abilities which the | ||||||
15 | applicant must demonstrate, the
Commission shall consider | ||||||
16 | (i) the characteristics,
including the size and financial | ||||||
17 | sophistication, of the
customers that the applicant seeks | ||||||
18 | to serve, and (ii)
whether the applicant seeks to provide | ||||||
19 | electric power and
energy using property, plant and | ||||||
20 | equipment which it owns,
controls or operates;
| ||||||
21 | (2) That the applicant will comply with all
applicable | ||||||
22 | federal, State, regional and industry rules,
policies, | ||||||
23 | practices and procedures for the use,
operation, and | ||||||
24 | maintenance of the safety, integrity and
reliability, of | ||||||
25 | the interconnected electric transmission
system;
| ||||||
26 | (3) That the applicant will only provide service to
|
| |||||||
| |||||||
1 | retail customers in an electric utility's service area
that | ||||||
2 | are eligible to take delivery services under this
Act;
| ||||||
3 | (4) That the applicant will comply with such
| ||||||
4 | informational or reporting requirements as the Commission
| ||||||
5 | may by rule establish and provide the information required | ||||||
6 | by Section 16-112.
Any data related to
contracts for the | ||||||
7 | purchase and sale of electric power and
energy shall be | ||||||
8 | made available for review by the Staff of
the Commission on | ||||||
9 | a confidential and proprietary basis
and only to the extent | ||||||
10 | and for the purposes which the
Commission determines are | ||||||
11 | reasonably necessary in order
to carry out the purposes of | ||||||
12 | this Act;
| ||||||
13 | (5) That the applicant will procure renewable energy | ||||||
14 | resources in accordance with Section 16-115D of this Act, | ||||||
15 | and will source electricity from clean coal facilities, as | ||||||
16 | defined in Section 1-10 of the Illinois Power Agency Act, | ||||||
17 | and will source electricity from qualified clean coal | ||||||
18 | facilities as defined in Section 1-10 of the Illinois Power | ||||||
19 | Agency Act in amounts at least equal to the percentages set | ||||||
20 | forth in subsections (c) , and (d) , and (d-5) of Section | ||||||
21 | 1-75 of the Illinois Power Agency Act. For purposes of this | ||||||
22 | Section:
| ||||||
23 | (i) (Blank); | ||||||
24 | (ii) (Blank); | ||||||
25 | (iii) the required sourcing of electricity | ||||||
26 | generated by clean coal facilities, other than the |
| |||||||
| |||||||
1 | initial clean coal facility, shall be limited to the | ||||||
2 | amount of electricity that can be procured or sourced | ||||||
3 | at a price at or below the benchmarks approved by the | ||||||
4 | Commission each year in accordance with item (1) of | ||||||
5 | subsection (c) , and items (1) and (5) of subsection | ||||||
6 | (d) , and item (1) of subsection (d-5) of Section 1-75 | ||||||
7 | of the Illinois Power Agency Act; | ||||||
8 | (iv) all alternative retail electric suppliers | ||||||
9 | shall execute a sourcing agreement to source | ||||||
10 | electricity from the initial clean coal facility, on | ||||||
11 | the terms set forth in paragraphs (3) and (4) of | ||||||
12 | subsection (d) of Section 1-75 of the Illinois Power | ||||||
13 | Agency Act, except that in lieu of the requirements in | ||||||
14 | subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of | ||||||
15 | paragraph (3) of that subsection (d), the applicant | ||||||
16 | shall execute one or more of the following: | ||||||
17 | (1) if the sourcing agreement is a power | ||||||
18 | purchase agreement, a contract with the initial | ||||||
19 | clean coal facility to purchase in each hour an | ||||||
20 | amount of electricity equal to all clean coal | ||||||
21 | energy made available from the initial clean coal | ||||||
22 | facility during such hour, which the utilities are | ||||||
23 | not required to procure under the terms of | ||||||
24 | subsection (d) of Section 1-75 of the Illinois | ||||||
25 | Power Agency Act, multiplied by a fraction, the | ||||||
26 | numerator of which is the alternative retail |
| |||||||
| |||||||
1 | electric supplier's retail market sales of | ||||||
2 | electricity (expressed in kilowatthours sold) in | ||||||
3 | the State during the prior calendar month and the | ||||||
4 | denominator of which is the total sales of | ||||||
5 | electricity (expressed in kilowatthours sold) in | ||||||
6 | the State by alternative retail electric suppliers | ||||||
7 | during such prior month that are subject to the | ||||||
8 | requirements of this paragraph (5) of subsection | ||||||
9 | (d) of this Section and subsection (d) of Section | ||||||
10 | 1-75 of the Illinois Power Agency Act plus the | ||||||
11 | total sales of electricity (expressed in | ||||||
12 | kilowatthours sold) by utilities outside of their | ||||||
13 | service areas during such prior month, pursuant to | ||||||
14 | subsection (c) of Section 16-116 of this Act; or | ||||||
15 | (2) if the sourcing agreement is a contract for | ||||||
16 | differences, a contract with the initial clean | ||||||
17 | coal facility in each hour with respect to an | ||||||
18 | amount of electricity equal to all clean coal | ||||||
19 | energy made available from the initial clean coal | ||||||
20 | facility during such hour, which the utilities are | ||||||
21 | not required to procure under the terms of | ||||||
22 | subsection (d) of Section 1-75 of the Illinois | ||||||
23 | Power Agency Act, multiplied by a fraction, the | ||||||
24 | numerator of which is the alternative retail | ||||||
25 | electric supplier's retail market sales of | ||||||
26 | electricity (expressed in kilowatthours sold) in |
| |||||||
| |||||||
1 | the State during the prior calendar month and the | ||||||
2 | denominator of which is the total sales of | ||||||
3 | electricity (expressed in kilowatthours sold) in | ||||||
4 | the State by alternative retail electric suppliers | ||||||
5 | during such prior month that are subject to the | ||||||
6 | requirements of this paragraph (5) of subsection | ||||||
7 | (d) of this Section and subsection (d) of Section | ||||||
8 | 1-75 of the Illinois Power Agency Act plus the | ||||||
9 | total sales of electricity (expressed in | ||||||
10 | kilowatthours sold) by utilities outside of their | ||||||
11 | service areas during such prior month, pursuant to | ||||||
12 | subsection (c) of Section 16-116 of this Act; | ||||||
13 | (v) if, in any year after the first year of | ||||||
14 | commercial operation, the owner of the clean coal | ||||||
15 | facility fails to demonstrate to the Commission that | ||||||
16 | the initial clean coal facility captured and | ||||||
17 | sequestered at least 50% of the total carbon emissions | ||||||
18 | that the facility would otherwise emit or that | ||||||
19 | sequestration of emissions from prior years has | ||||||
20 | failed, resulting in the release of carbon into the | ||||||
21 | atmosphere, the owner of the facility must offset | ||||||
22 | excess emissions. Any such carbon offsets must be | ||||||
23 | permanent, additional, verifiable, real, located | ||||||
24 | within the State of Illinois, and legally and | ||||||
25 | practicably enforceable. The costs of any such offsets | ||||||
26 | that are not recoverable shall not exceed $15 million |
| |||||||
| |||||||
1 | in any given year. No costs of any such purchases of | ||||||
2 | carbon offsets may be recovered from an alternative | ||||||
3 | retail electric supplier or its customers. All carbon | ||||||
4 | offsets purchased for this purpose and any carbon | ||||||
5 | emission credits associated with sequestration of | ||||||
6 | carbon from the facility must be permanently retired. | ||||||
7 | The initial clean coal facility shall not forfeit its | ||||||
8 | designation as a clean coal facility if the facility | ||||||
9 | fails to fully comply with the applicable carbon | ||||||
10 | sequestration requirements in any given year, provided | ||||||
11 | the requisite offsets are purchased. However, the | ||||||
12 | Attorney General, on behalf of the People of the State | ||||||
13 | of Illinois, may specifically enforce the facility's | ||||||
14 | sequestration requirement and the other terms of this | ||||||
15 | contract provision. Compliance with the sequestration | ||||||
16 | requirements and offset purchase requirements that | ||||||
17 | apply to the initial clean coal facility shall be | ||||||
18 | reviewed annually by an independent expert retained by | ||||||
19 | the owner of the initial clean coal facility, with the | ||||||
20 | advance written approval of the Attorney General; | ||||||
21 | (vi) The Commission shall, after notice and | ||||||
22 | hearing, revoke the certification of any alternative | ||||||
23 | retail electric supplier that fails to execute a | ||||||
24 | sourcing agreement with the initial clean coal | ||||||
25 | facility as required by item (5) of subsection (d) of | ||||||
26 | this Section. The sourcing agreements with this |
| |||||||
| |||||||
1 | initial clean coal facility shall be subject to both | ||||||
2 | approval of the initial clean coal facility by the | ||||||
3 | General Assembly and satisfaction of the requirements | ||||||
4 | of item (4) of subsection (d) of Section 1-75 of the | ||||||
5 | Illinois Power Agency Act, and shall be executed within | ||||||
6 | 90 days after any such approval by the General | ||||||
7 | Assembly. The Commission shall not accept an | ||||||
8 | application for certification from an alternative | ||||||
9 | retail electric supplier that has lost certification | ||||||
10 | under this subsection (d), or any corporate affiliate | ||||||
11 | thereof, for at least one year from the date of | ||||||
12 | revocation; | ||||||
13 | (6) With respect to an applicant that seeks to serve
| ||||||
14 | residential or small commercial retail customers, that
the | ||||||
15 | area to be served by the applicant and any
limitations it | ||||||
16 | proposes on the number of customers or
maximum amount of | ||||||
17 | load to be served meet the provisions
of Section 16-115A, | ||||||
18 | provided, that the Commission can
extend the time for | ||||||
19 | considering such a certificate
request by up to 90 days, | ||||||
20 | and can schedule hearings on
such a request;
| ||||||
21 | (7) That the applicant meets the requirements of | ||||||
22 | subsection (a) of Section
16-128; and
| ||||||
23 | (8) That the applicant will comply with all other
| ||||||
24 | applicable laws and regulations.
| ||||||
25 | (d-5) (Blank). | ||||||
26 | (e) A retail customer that owns a cogeneration or |
| |||||||
| |||||||
1 | self-generation facility
and that seeks certification only to
| ||||||
2 | provide electric power and energy from such facility to
retail | ||||||
3 | customers at separate locations which customers are
both (i) | ||||||
4 | owned by, or a subsidiary or other corporate
affiliate of, such | ||||||
5 | applicant and
(ii) eligible for delivery services, shall be | ||||||
6 | granted a
certificate of service authority upon filing an | ||||||
7 | application
and notifying the Commission that it has entered | ||||||
8 | into an
agreement with the relevant electric utilities pursuant | ||||||
9 | to
Section 16-118.
Provided, however, that if the retail | ||||||
10 | customer owning such cogeneration or
self-generation facility | ||||||
11 | would not be charged a transition charge due to the
exemption | ||||||
12 | provided under subsection (f) of Section 16-108 prior to the
| ||||||
13 | certification, and the retail customers at separate locations | ||||||
14 | are taking
delivery services in conjunction with purchasing | ||||||
15 | power and energy from the
facility, the retail customer on | ||||||
16 | whose premises the facility is located shall
not thereafter be | ||||||
17 | required to pay transition charges on the power and energy
that | ||||||
18 | such retail customer takes from the facility.
| ||||||
19 | (f) The Commission shall have the authority to
promulgate | ||||||
20 | rules and regulations to carry out the provisions
of this | ||||||
21 | Section. On or before May 1, 1999, the Commission
shall adopt a | ||||||
22 | rule or rules applicable to the certification of
those | ||||||
23 | alternative retail electric suppliers that seek to serve
only | ||||||
24 | nonresidential retail customers with maximum electrical
| ||||||
25 | demands of one megawatt or more which shall provide for (i)
| ||||||
26 | expedited and streamlined procedures
for certification of such |
| |||||||
| |||||||
1 | alternative
retail electric suppliers and (ii) specific | ||||||
2 | criteria which,
if met by any such alternative retail electric | ||||||
3 | supplier, shall
constitute the demonstration of technical, | ||||||
4 | financial and
managerial resources and abilities to provide | ||||||
5 | service required
by subsection (d) (1) of this Section, such as | ||||||
6 | a requirement
to post a bond or letter of credit, from a | ||||||
7 | responsible surety
or financial institution, of sufficient | ||||||
8 | size for the nature
and scope of the services to be provided; | ||||||
9 | demonstration of
adequate insurance for the scope and nature of | ||||||
10 | the services to
be provided; and experience in providing | ||||||
11 | similar services in
other jurisdictions.
| ||||||
12 | (g) An alternative retail electric supplier may seek | ||||||
13 | confidential treatment for the following information by filing | ||||||
14 | an affidavit with the Commission so long as the affidavit meets | ||||||
15 | the requirements in this subsection (g): | ||||||
16 | (1) the total annual kilowatt-hours delivered and sold | ||||||
17 | by an alternative retail electric supplier to retail | ||||||
18 | customers within each utility service territory and the | ||||||
19 | total annual kilowatt-hours delivered and sold by an | ||||||
20 | alternative retail electric supplier to retail customers | ||||||
21 | in all utility service territories in the preceding | ||||||
22 | calendar year as required by 83 Ill. Adm. Code 451.770; | ||||||
23 | (2) the total peak demand supplied by an alternative | ||||||
24 | retail electric supplier during the previous year in each | ||||||
25 | utility service territory as required by 83 Ill. Adm. Code | ||||||
26 | 465.40; |
| |||||||
| |||||||
1 | (3) a good faith estimate of the amount an alternative | ||||||
2 | retail electric supplier expects to be obliged to pay the | ||||||
3 | utility under single billing tariffs during the next 12 | ||||||
4 | months and the amount of any bond or letter of credit used | ||||||
5 | to demonstrate an alternative retail electric supplier's | ||||||
6 | credit worthiness to provide single billing services | ||||||
7 | pursuant to 83 Ill. Adm. Code 451.510(a) and (b). | ||||||
8 | The affidavit must be filed contemporaneously with the | ||||||
9 | information for which confidential treatment is sought and must | ||||||
10 | clearly state that the affiant seeks confidential treatment | ||||||
11 | pursuant to this subsection (g) and the information for which | ||||||
12 | confidential treatment is sought must be clearly identified on | ||||||
13 | the confidential version of the document filed with the | ||||||
14 | Commission. The affidavit must be accompanied by a | ||||||
15 | "confidential" and a "public" version of the document or | ||||||
16 | documents containing the information for which confidential | ||||||
17 | treatment is sought. | ||||||
18 | If the alternative retail electric supplier has met the | ||||||
19 | affidavit requirements of this subsection (g), then the | ||||||
20 | Commission shall afford confidential treatment to the | ||||||
21 | information identified in the affidavit for a period of 2 years | ||||||
22 | after the date the affidavit is received by the Commission. | ||||||
23 | Nothing in this subsection (g) prevents an alternative | ||||||
24 | retail electric supplier from filing a petition with the | ||||||
25 | Commission seeking confidential treatment for information | ||||||
26 | beyond that identified in this subsection (g) or for |
| |||||||
| |||||||
1 | information contained in other reports or documents filed with | ||||||
2 | the Commission. | ||||||
3 | Nothing in this subsection (g) prevents the Commission, on | ||||||
4 | its own motion, or any party from filing a formal petition with | ||||||
5 | the Commission seeking to reconsider the conferring of | ||||||
6 | confidential status on an item of information afforded | ||||||
7 | confidential treatment pursuant to this subsection (g). | ||||||
8 | The Commission, on its own motion, may at any time initiate | ||||||
9 | a docketed proceeding to investigate the continued | ||||||
10 | applicability of this subsection (g) to the information | ||||||
11 | contained in items (i), (ii), and (iii) of this subsection (g). | ||||||
12 | If, at the end of such investigation, the Commission determines | ||||||
13 | that a particular item of information should no longer be | ||||||
14 | eligible for the affidavit-based process outlined in this | ||||||
15 | subsection (g), the Commission may enter an order to remove | ||||||
16 | that item from the list of items eligible for the process set | ||||||
17 | forth in this subsection (g). Notwithstanding any such order, | ||||||
18 | in the event the Commission makes such a determination, nothing | ||||||
19 | in this subsection (g) prevents an alternative retail electric | ||||||
20 | supplier desiring confidential treatment for such information | ||||||
21 | from filing a formal petition with the Commission seeking | ||||||
22 | confidential treatment for such information. | ||||||
23 | (Source: P.A. 99-332, eff. 8-10-15.)
| ||||||
24 | Section 5-40. The State Finance Act is amended by adding | ||||||
25 | Section 5.875 as follows:
|
| |||||||
| |||||||
1 | (30 ILCS 105/5.875 new) | ||||||
2 | Sec. 5.875. The Clean Coal Technology Development and | ||||||
3 | Utilization Fund.
|