Sen. Mike Jacobs

Filed: 3/15/2011

 

 


 

 


 
09700SB1608sam001LRB097 09304 ASK 53040 a

1
AMENDMENT TO SENATE BILL 1608

2    AMENDMENT NO. ______. Amend Senate Bill 1608 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Public Utilities Act is amended by changing
5Section 16-111.5 as follows:
 
6    (220 ILCS 5/16-111.5)
7    Sec. 16-111.5. Provisions relating to procurement.
8    (a) An electric utility that on December 31, 2005 served at
9least 100,000 customers in Illinois shall procure power and
10energy for its eligible retail customers in accordance with the
11applicable provisions set forth in Section 1-75 of the Illinois
12Power Agency Act and this Section. "Eligible retail customers"
13for the purposes of this Section means those retail customers
14that purchase power and energy from the electric utility under
15fixed-price bundled service tariffs, other than those retail
16customers whose service is declared or deemed competitive under

 

 

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1Section 16-113 and those other customer groups specified in
2this Section, including self-generating customers, customers
3electing hourly pricing, or those customers who are otherwise
4ineligible for fixed-price bundled tariff service. Those
5customers that are excluded from the definition of "eligible
6retail customers" shall not be included in the procurement plan
7load requirements, and the utility shall procure any supply
8requirements, including capacity, ancillary services, and
9hourly priced energy, in the applicable markets as needed to
10serve those customers, provided that the utility may include in
11its procurement plan load requirements for the load that is
12associated with those retail customers whose service has been
13declared or deemed competitive pursuant to Section 16-113 of
14this Act to the extent that those customers are purchasing
15power and energy during one of the transition periods
16identified in subsection (b) of Section 16-113 of this Act.
17    (b) A procurement plan shall be prepared for each electric
18utility consistent with the applicable requirements of the
19Illinois Power Agency Act and this Section. For purposes of
20this Section, Illinois electric utilities that are affiliated
21by virtue of a common parent company are considered to be a
22single electric utility. Each procurement plan shall analyze
23the projected balance of supply and demand for eligible retail
24customers over a 5-year period with the first planning year
25beginning on June 1 of the year following the year in which the
26plan is filed. The plan shall specifically identify the

 

 

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1wholesale products to be procured following plan approval, and
2shall follow all the requirements set forth in the Public
3Utilities Act and all applicable State and federal laws,
4statutes, rules, or regulations, as well as Commission orders.
5Nothing in this Section precludes consideration of contracts
6longer than 5 years and related forecast data. Unless specified
7otherwise in this Section, in the procurement plan or in the
8implementing tariff, any procurement occurring in accordance
9with this plan shall be competitively bid through a request for
10proposals process. Approval and implementation of the
11procurement plan shall be subject to review and approval by the
12Commission according to the provisions set forth in this
13Section. A procurement plan shall include each of the following
14components:
15        (1) Hourly load analysis. This analysis shall include:
16            (i) multi-year historical analysis of hourly
17        loads;
18            (ii) switching trends and competitive retail
19        market analysis;
20            (iii) known or projected changes to future loads;
21        and
22            (iv) growth forecasts by customer class.
23        (2) Analysis of the impact of any demand side and
24    renewable energy initiatives. This analysis shall include:
25            (i) the impact of demand response programs, both
26        current and projected;

 

 

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1            (ii) supply side needs that are projected to be
2        offset by purchases of renewable energy resources, if
3        any; and
4            (iii) the impact of energy efficiency programs,
5        both current and projected.
6        (3) A plan for meeting the expected load requirements
7    that will not be met through preexisting contracts. This
8    plan shall include:
9            (i) definitions of the different retail customer
10        classes for which supply is being purchased;
11            (ii) the proposed mix of demand-response products
12        for which contracts will be executed during the next
13        year. The cost-effective demand-response measures
14        shall be procured whenever the cost is lower than
15        procuring comparable capacity products, provided that
16        such products shall:
17                (A) be procured by a demand-response provider
18            from eligible retail customers;
19                (B) at least satisfy the demand-response
20            requirements of the regional transmission
21            organization market in which the utility's service
22            territory is located, including, but not limited
23            to, any applicable capacity or dispatch
24            requirements;
25                (C) provide for customers' participation in
26            the stream of benefits produced by the

 

 

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1            demand-response products;
2                (D) provide for reimbursement by the
3            demand-response provider of the utility for any
4            costs incurred as a result of the failure of the
5            supplier of such products to perform its
6            obligations thereunder; and
7                (E) meet the same credit requirements as apply
8            to suppliers of capacity, in the applicable
9            regional transmission organization market;
10            (iii) monthly forecasted system supply
11        requirements, including expected minimum, maximum, and
12        average values for the planning period;
13            (iv) the proposed mix and selection of standard
14        wholesale products for which contracts will be
15        executed during the next year, separately or in
16        combination, to meet that portion of its load
17        requirements not met through pre-existing contracts,
18        including but not limited to monthly 5 x 16 peak period
19        block energy, monthly off-peak wrap energy, monthly 7 x
20        24 energy, annual 5 x 16 energy, annual off-peak wrap
21        energy, annual 7 x 24 energy, monthly capacity, annual
22        capacity, peak load capacity obligations, capacity
23        purchase plan, and ancillary services;
24            (v) proposed term structures for each wholesale
25        product type included in the proposed procurement plan
26        portfolio of products; and

 

 

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1            (vi) an assessment of the price risk, load
2        uncertainty, and other factors that are associated
3        with the proposed procurement plan; this assessment,
4        to the extent possible, shall include an analysis of
5        the following factors: contract terms, time frames for
6        securing products or services, fuel costs, weather
7        patterns, transmission costs, market conditions, and
8        the governmental regulatory environment; the proposed
9        procurement plan shall also identify alternatives for
10        those portfolio measures that are identified as having
11        significant price risk.
12        (4) Proposed procedures for balancing loads. The
13    procurement plan shall include, for load requirements
14    included in the procurement plan, the process for (i)
15    hourly balancing of supply and demand and (ii) the criteria
16    for portfolio re-balancing in the event of significant
17    shifts in load.
18    (c) The procurement process set forth in Section 1-75 of
19the Illinois Power Agency Act and subsection (e) of this
20Section shall be administered by a procurement administrator
21and monitored by a procurement monitor.
22        (1) The procurement administrator shall:
23            (i) design the final procurement process in
24        accordance with Section 1-75 of the Illinois Power
25        Agency Act and subsection (e) of this Section following
26        Commission approval of the procurement plan;

 

 

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1            (ii) develop benchmarks in accordance with
2        subsection (e)(3) to be used to evaluate bids; these
3        benchmarks shall be submitted to the Commission for
4        review and approval on a confidential basis prior to
5        the procurement event;
6            (iii) serve as the interface between the electric
7        utility and suppliers;
8            (iv) manage the bidder pre-qualification and
9        registration process;
10            (v) obtain the electric utilities' agreement to
11        the final form of all supply contracts and credit
12        collateral agreements;
13            (vi) administer the request for proposals process;
14            (vii) have the discretion to negotiate to
15        determine whether bidders are willing to lower the
16        price of bids that meet the benchmarks approved by the
17        Commission; any post-bid negotiations with bidders
18        shall be limited to price only and shall be completed
19        within 24 hours after opening the sealed bids and shall
20        be conducted in a fair and unbiased manner; in
21        conducting the negotiations, there shall be no
22        disclosure of any information derived from proposals
23        submitted by competing bidders; if information is
24        disclosed to any bidder, it shall be provided to all
25        competing bidders;
26            (viii) maintain confidentiality of supplier and

 

 

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1        bidding information in a manner consistent with all
2        applicable laws, rules, regulations, and tariffs;
3            (ix) submit a confidential report to the
4        Commission recommending acceptance or rejection of
5        bids;
6            (x) notify the utility of contract counterparties
7        and contract specifics; and
8            (xi) administer related contingency procurement
9        events.
10        (2) The procurement monitor, who shall be retained by
11    the Commission, shall:
12            (i) monitor interactions among the procurement
13        administrator, suppliers, and utility;
14            (ii) monitor and report to the Commission on the
15        progress of the procurement process;
16            (iii) provide an independent confidential report
17        to the Commission regarding the results of the
18        procurement event;
19            (iv) assess compliance with the procurement plans
20        approved by the Commission for each utility that on
21        December 31, 2005 provided electric service to a least
22        100,000 customers in Illinois;
23            (v) preserve the confidentiality of supplier and
24        bidding information in a manner consistent with all
25        applicable laws, rules, regulations, and tariffs;
26            (vi) provide expert advice to the Commission and

 

 

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1        consult with the procurement administrator regarding
2        issues related to procurement process design, rules,
3        protocols, and policy-related matters; and
4            (vii) consult with the procurement administrator
5        regarding the development and use of benchmark
6        criteria, standard form contracts, credit policies,
7        and bid documents.
8    (d) Except as provided in subsection (j), the planning
9process shall be conducted as follows:
10        (1) Beginning in 2008, each Illinois utility procuring
11    power pursuant to this Section shall annually provide a
12    range of load forecasts to the Illinois Power Agency by
13    July 15 of each year, or such other date as may be required
14    by the Commission or Agency. The load forecasts shall cover
15    the 5-year procurement planning period for the next
16    procurement plan and shall include hourly data
17    representing a high-load, low-load and expected-load
18    scenario for the load of the eligible retail customers. The
19    utility shall provide supporting data and assumptions for
20    each of the scenarios.
21        (2) Beginning in 2011 2008, the Illinois Power Agency
22    shall prepare a draft procurement plan by August 15th of
23    each year, or such other date as may be required by the
24    Commission. The procurement plan shall identify the
25    portfolio of demand-response and power and energy products
26    to be procured. The draft procurement plan shall also

 

 

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1    indicate, in legislative style, the specific changes to the
2    most recent Commission-approved procurement plan.
3    Cost-effective demand-response measures shall be procured
4    as set forth in item (iii) of subsection (b) of this
5    Section. Copies of the draft procurement plan shall be
6    posted and made publicly available on the Agency's and
7    Commission's websites, and copies shall also be provided to
8    each affected electric utility. An affected utility shall
9    have 30 days following the date of posting to provide
10    comment to the Agency on the draft procurement plan. Other
11    interested entities also may comment on the procurement
12    plan within the timeframe outlined in this Section. All
13    comments submitted to the Agency shall be specific,
14    supported by data or other detailed analyses, and, if
15    objecting to all or a portion of the draft procurement
16    plan, accompanied by specific alternative wording or
17    proposals. All comments shall be posted on the Agency's and
18    Commission's websites. During this 30-day comment period,
19    the Agency shall hold at least one public hearing within
20    each utility's service area for the purpose of receiving
21    public comment on the draft procurement plan. Within 14
22    days following the end of the 30-day review period, the
23    Agency shall revise the draft procurement plan as necessary
24    based on the comments received and file the agency's final
25    version of the procurement plan with the Commission and
26    post the Agency's final version of the procurement plan on

 

 

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1    the websites. The Agency shall identify any revisions to
2    the draft procurement plan by documenting such revisions in
3    legislative style.
4        (3) Within 10 5 days after the filing of the Agency's
5    final version of the procurement plan, any person objecting
6    to the procurement plan shall file an objection with the
7    Commission. Within 15 10 days after the filing, the
8    Commission shall determine whether a hearing is necessary.
9    The Commission shall enter its order confirming or
10    modifying the final procurement plan within 90 days after
11    the filing of the final procurement plan, including all
12    modifications and additions, by the Illinois Power Agency.
13        (4) The Commission shall approve the procurement plan,
14    including expressly the forecast used in the procurement
15    plan, if the Commission determines that it will ensure
16    adequate, reliable, affordable, efficient, and
17    environmentally sustainable electric service at the lowest
18    total cost over time, taking into account any benefits of
19    price stability.
20    (e) The procurement process shall include each of the
21following components:
22        (1) Solicitation, pre-qualification, and registration
23    of bidders. The procurement administrator shall
24    disseminate information to potential bidders to promote a
25    procurement event, notify potential bidders that the
26    procurement administrator may enter into a post-bid price

 

 

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1    negotiation with bidders that meet the applicable
2    benchmarks, provide supply requirements, and otherwise
3    explain the competitive procurement process. In addition
4    to such other publication as the procurement administrator
5    determines is appropriate, this information shall be
6    posted on the Illinois Power Agency's and the Commission's
7    websites. The procurement administrator shall also
8    administer the prequalification process, including
9    evaluation of credit worthiness, compliance with
10    procurement rules, and agreement to the standard form
11    contract developed pursuant to paragraph (2) of this
12    subsection (e). The procurement administrator shall then
13    identify and register bidders to participate in the
14    procurement event.
15        (2) Standard contract forms and credit terms and
16    instruments. The procurement administrator, in
17    consultation with the utilities, the Commission, and other
18    interested parties and subject to Commission oversight,
19    shall develop and provide standard contract forms for the
20    supplier contracts that meet generally accepted industry
21    practices. Standard credit terms and instruments that meet
22    generally accepted industry practices shall be similarly
23    developed. The procurement administrator shall make
24    available to the Commission all written comments it
25    receives on the contract forms, credit terms, or
26    instruments. If the procurement administrator cannot reach

 

 

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1    agreement with the applicable electric utility as to the
2    contract terms and conditions, the procurement
3    administrator must notify the Commission of any disputed
4    terms and the Commission shall resolve the dispute. The
5    terms of the contracts shall not be subject to negotiation
6    by winning bidders, and the bidders must agree to the terms
7    of the contract in advance so that winning bids are
8    selected solely on the basis of price.
9        (3) Establishment of a market-based price benchmark.
10    As part of the development of the procurement process, the
11    procurement administrator, in consultation with the
12    Commission staff, Agency staff, and the procurement
13    monitor, shall establish benchmarks for evaluating the
14    final prices in the contracts for each of the products that
15    will be procured through the procurement process. The
16    benchmarks shall be based on price data for similar
17    products for the same delivery period and same delivery
18    hub, or other delivery hubs after adjusting for that
19    difference. The price benchmarks may also be adjusted to
20    take into account differences between the information
21    reflected in the underlying data sources and the specific
22    products and procurement process being used to procure
23    power for the Illinois utilities. The benchmarks shall be
24    confidential but shall be provided to, and will be subject
25    to Commission review and approval, prior to a procurement
26    event.

 

 

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1        (4) Request for proposals competitive procurement
2    process. The procurement administrator shall design and
3    issue a request for proposals to supply electricity in
4    accordance with each utility's procurement plan, as
5    approved by the Commission. The request for proposals shall
6    set forth a procedure for sealed, binding commitment
7    bidding with pay-as-bid settlement, and provision for
8    selection of bids on the basis of price.
9        (5) A plan for implementing contingencies in the event
10    of supplier default or failure of the procurement process
11    to fully meet the expected load requirement due to
12    insufficient supplier participation, Commission rejection
13    of results, or any other cause.
14            (i) Event of supplier default: In the event of
15        supplier default, the utility shall review the
16        contract of the defaulting supplier to determine if the
17        amount of supply is 200 megawatts or greater, and if
18        there are more than 60 days remaining of the contract
19        term. If both of these conditions are met, and the
20        default results in termination of the contract, the
21        utility shall immediately notify the Illinois Power
22        Agency that a request for proposals must be issued to
23        procure replacement power, and the procurement
24        administrator shall run an additional procurement
25        event. If the contracted supply of the defaulting
26        supplier is less than 200 megawatts or there are less

 

 

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1        than 60 days remaining of the contract term, the
2        utility shall procure power and energy from the
3        applicable regional transmission organization market,
4        including ancillary services, capacity, and day-ahead
5        or real time energy, or both, for the duration of the
6        contract term to replace the contracted supply;
7        provided, however, that if a needed product is not
8        available through the regional transmission
9        organization market it shall be purchased from the
10        wholesale market.
11            (ii) Failure of the procurement process to fully
12        meet the expected load requirement: If the procurement
13        process fails to fully meet the expected load
14        requirement due to insufficient supplier participation
15        or due to a Commission rejection of the procurement
16        results, the procurement administrator, the
17        procurement monitor, and the Commission staff shall
18        meet within 10 days to analyze potential causes of low
19        supplier interest or causes for the Commission
20        decision. If changes are identified that would likely
21        result in increased supplier participation, or that
22        would address concerns causing the Commission to
23        reject the results of the prior procurement event, the
24        procurement administrator may implement those changes
25        and rerun the request for proposals process according
26        to a schedule determined by those parties and

 

 

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1        consistent with Section 1-75 of the Illinois Power
2        Agency Act and this subsection. In any event, a new
3        request for proposals process shall be implemented by
4        the procurement administrator within 90 days after the
5        determination that the procurement process has failed
6        to fully meet the expected load requirement.
7            (iii) In all cases where there is insufficient
8        supply provided under contracts awarded through the
9        procurement process to fully meet the electric
10        utility's load requirement, the utility shall meet the
11        load requirement by procuring power and energy from the
12        applicable regional transmission organization market,
13        including ancillary services, capacity, and day-ahead
14        or real time energy or both; provided, however, that if
15        a needed product is not available through the regional
16        transmission organization market it shall be purchased
17        from the wholesale market.
18        (6) The procurement process described in this
19    subsection is exempt from the requirements of the Illinois
20    Procurement Code, pursuant to Section 20-10 of that Code.
21    (f) Within 2 business days after opening the sealed bids,
22the procurement administrator shall submit a confidential
23report to the Commission. The report shall contain the results
24of the bidding for each of the products along with the
25procurement administrator's recommendation for the acceptance
26and rejection of bids based on the price benchmark criteria and

 

 

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1other factors observed in the process. The procurement monitor
2also shall submit a confidential report to the Commission
3within 2 business days after opening the sealed bids. The
4report shall contain the procurement monitor's assessment of
5bidder behavior in the process as well as an assessment of the
6procurement administrator's compliance with the procurement
7process and rules. The Commission shall review the confidential
8reports submitted by the procurement administrator and
9procurement monitor, and shall accept or reject the
10recommendations of the procurement administrator within 2
11business days after receipt of the reports.
12    (g) Within 3 business days after the Commission decision
13approving the results of a procurement event, the utility shall
14enter into binding contractual arrangements with the winning
15suppliers using the standard form contracts; except that the
16utility shall not be required either directly or indirectly to
17execute the contracts if a tariff that is consistent with
18subsection (l) of this Section has not been approved and placed
19into effect for that utility.
20    (h) The names of the successful bidders and the load
21weighted average of the winning bid prices for each contract
22type and for each contract term shall be made available to the
23public at the time of Commission approval of a procurement
24event. The Commission, the procurement monitor, the
25procurement administrator, the Illinois Power Agency, and all
26participants in the procurement process shall maintain the

 

 

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1confidentiality of all other supplier and bidding information
2in a manner consistent with all applicable laws, rules,
3regulations, and tariffs. Confidential information, including
4the confidential reports submitted by the procurement
5administrator and procurement monitor pursuant to subsection
6(f) of this Section, shall not be made publicly available and
7shall not be discoverable by any party in any proceeding,
8absent a compelling demonstration of need, nor shall those
9reports be admissible in any proceeding other than one for law
10enforcement purposes.
11    (i) Within 2 business days after a Commission decision
12approving the results of a procurement event or such other date
13as may be required by the Commission from time to time, the
14utility shall file for informational purposes with the
15Commission its actual or estimated retail supply charges, as
16applicable, by customer supply group reflecting the costs
17associated with the procurement and computed in accordance with
18the tariffs filed pursuant to subsection (l) of this Section
19and approved by the Commission.
20    (j) Within 60 days following the effective date of this
21amendatory Act, each electric utility that on December 31, 2005
22provided electric service to at least 100,000 customers in
23Illinois shall prepare and file with the Commission an initial
24procurement plan, which shall conform in all material respects
25to the requirements of the procurement plan set forth in
26subsection (b); provided, however, that the Illinois Power

 

 

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1Agency Act shall not apply to the initial procurement plan
2prepared pursuant to this subsection. The initial procurement
3plan shall identify the portfolio of power and energy products
4to be procured and delivered for the period June 2008 through
5May 2009, and shall identify the proposed procurement
6administrator, who shall have the same experience and expertise
7as is required of a procurement administrator hired pursuant to
8Section 1-75 of the Illinois Power Agency Act. Copies of the
9procurement plan shall be posted and made publicly available on
10the Commission's website. The initial procurement plan may
11include contracts for renewable resources that extend beyond
12May 2009.
13        (i) Within 14 days following filing of the initial
14    procurement plan, any person may file a detailed objection
15    with the Commission contesting the procurement plan
16    submitted by the electric utility. All objections to the
17    electric utility's plan shall be specific, supported by
18    data or other detailed analyses. The electric utility may
19    file a response to any objections to its procurement plan
20    within 7 days after the date objections are due to be
21    filed. Within 7 days after the date the utility's response
22    is due, the Commission shall determine whether a hearing is
23    necessary. If it determines that a hearing is necessary, it
24    shall require the hearing to be completed and issue an
25    order on the procurement plan within 60 days after the
26    filing of the procurement plan by the electric utility.

 

 

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1        (ii) The order shall approve or modify the procurement
2    plan, approve an independent procurement administrator,
3    and approve or modify the electric utility's tariffs that
4    are proposed with the initial procurement plan. The
5    Commission shall approve the procurement plan if the
6    Commission determines that it will ensure adequate,
7    reliable, affordable, efficient, and environmentally
8    sustainable electric service at the lowest total cost over
9    time, taking into account any benefits of price stability.
10    (k) In order to promote price stability for residential and
11small commercial customers during the transition to
12competition in Illinois, and notwithstanding any other
13provision of this Act, each electric utility subject to this
14Section shall enter into one or more multi-year financial swap
15contracts that become effective on the effective date of this
16amendatory Act. These contracts may be executed with generators
17and power marketers, including affiliated interests of the
18electric utility. These contracts shall be for a term of no
19more than 5 years and shall, for each respective utility or for
20any Illinois electric utilities that are affiliated by virtue
21of a common parent company and that are thereby considered a
22single electric utility for purposes of this subsection (k),
23not exceed in the aggregate 3,000 megawatts for any hour of the
24year. The contracts shall be financial contracts and not energy
25sales contracts. The contracts shall be executed as
26transactions under a negotiated master agreement based on the

 

 

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1form of master agreement for financial swap contracts sponsored
2by the International Swaps and Derivatives Association, Inc.
3and shall be considered pre-existing contracts in the
4utilities' procurement plans for residential and small
5commercial customers. Costs incurred pursuant to a contract
6authorized by this subsection (k) shall be deemed prudently
7incurred and reasonable in amount and the electric utility
8shall be entitled to full cost recovery pursuant to the tariffs
9filed with the Commission.
10    (l) An electric utility shall recover its costs incurred
11under this Section, including, but not limited to, the costs of
12procuring power and energy demand-response resources under
13this Section. The utility shall file with the initial
14procurement plan its proposed tariffs through which its costs
15of procuring power that are incurred pursuant to a
16Commission-approved procurement plan and those other costs
17identified in this subsection (l), will be recovered. The
18tariffs shall include a formula rate or charge designed to pass
19through both the costs incurred by the utility in procuring a
20supply of electric power and energy for the applicable customer
21classes with no mark-up or return on the price paid by the
22utility for that supply, plus any just and reasonable costs
23that the utility incurs in arranging and providing for the
24supply of electric power and energy. The formula rate or charge
25shall also contain provisions that ensure that its application
26does not result in over or under recovery due to changes in

 

 

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1customer usage and demand patterns, and that provide for the
2correction, on at least an annual basis, of any accounting
3errors that may occur. A utility shall recover through the
4tariff all reasonable costs incurred to implement or comply
5with any procurement plan that is developed and put into effect
6pursuant to Section 1-75 of the Illinois Power Agency Act and
7this Section, including any fees assessed by the Illinois Power
8Agency, costs associated with load balancing, and contingency
9plan costs. The electric utility shall also recover its full
10costs of procuring electric supply for which it contracted
11before the effective date of this Section in conjunction with
12the provision of full requirements service under fixed-price
13bundled service tariffs subsequent to December 31, 2006. All
14such costs shall be deemed to have been prudently incurred. The
15pass-through tariffs that are filed and approved pursuant to
16this Section shall not be subject to review under, or in any
17way limited by, Section 16-111(i) of this Act.
18    (m) The Commission has the authority to adopt rules to
19carry out the provisions of this Section. For the public
20interest, safety, and welfare, the Commission also has
21authority to adopt rules to carry out the provisions of this
22Section on an emergency basis immediately following the
23effective date of this amendatory Act.
24    (n) Notwithstanding any other provision of this Act, any
25affiliated electric utilities that submit a single procurement
26plan covering their combined needs may procure for those

 

 

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1combined needs in conjunction with that plan, and may enter
2jointly into power supply contracts, purchases, and other
3procurement arrangements, and allocate capacity and energy and
4cost responsibility therefor among themselves in proportion to
5their requirements.
6    (o) On or before June 1 of each year, the Commission shall
7hold an informal hearing for the purpose of receiving comments
8on the prior year's procurement process and any recommendations
9for change.
10    (p) An electric utility subject to this Section may propose
11to invest, lease, own, or operate an electric generation
12facility as part of its procurement plan, provided the utility
13demonstrates that such facility is the least-cost option to
14provide electric service to eligible retail customers. If the
15facility is shown to be the least-cost option and is included
16in a procurement plan prepared in accordance with Section 1-75
17of the Illinois Power Agency Act and this Section, then the
18electric utility shall make a filing pursuant to Section 8-406
19of the Act, and may request of the Commission any statutory
20relief required thereunder. If the Commission grants all of the
21necessary approvals for the proposed facility, such supply
22shall thereafter be considered as a pre-existing contract under
23subsection (b) of this Section. The Commission shall in any
24order approving a proposal under this subsection specify how
25the utility will recover the prudently incurred costs of
26investing in, leasing, owning, or operating such generation

 

 

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1facility through just and reasonable rates charged to eligible
2retail customers. Cost recovery for facilities included in the
3utility's procurement plan pursuant to this subsection shall
4not be subject to review under or in any way limited by the
5provisions of Section 16-111(i) of this Act. Nothing in this
6Section is intended to prohibit a utility from filing for a
7fuel adjustment clause as is otherwise permitted under Section
89-220 of this Act.
9(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".