101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2861

 

Introduced , by Rep. Lawrence Walsh, Jr.

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-111.5

    Amends the Public Utilities Act. Makes a grammatical correction in provisions relating to the procurement of power and energy, zero emission credits, and renewable energy resources by electric utilities. Effective immediately.


LRB101 07685 JRG 52733 b

 

 

A BILL FOR

 

HB2861LRB101 07685 JRG 52733 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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. Beginning with the delivery
13year commencing on June 1, 2017, such electric utility shall
14also procure zero emission credits from zero emission
15facilities in accordance with the applicable provisions set
16forth in Section 1-75 of the Illinois Power Agency Act, and,
17for years beginning on or after June 1, 2017, the utility shall
18procure renewable energy resources in accordance with the
19applicable provisions set forth in Section 1-75 of the Illinois
20Power Agency Act and this Section.
21    A small multi-jurisdictional electric utility that on
22December 31, 2005 served less than 100,000 customers in
23Illinois may elect to procure power and energy for all or a

 

 

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1portion of its eligible Illinois retail customers in accordance
2with the applicable provisions set forth in this Section and
3Section 1-75 of the Illinois Power Agency Act. This Section
4shall not apply to a small multi-jurisdictional utility until
5such time as a small multi-jurisdictional utility requests the
6Illinois Power Agency to prepare a procurement plan for its
7eligible retail customers. "Eligible retail customers" for the
8purposes of this Section means those retail customers that
9purchase power and energy from the electric utility under
10fixed-price bundled service tariffs, other than those retail
11customers whose service is declared or deemed competitive under
12Section 16-113 and those other customer groups specified in
13this Section, including self-generating customers, customers
14electing hourly pricing, or those customers who are otherwise
15ineligible for fixed-price bundled tariff service. For those
16customers that are excluded from the procurement plan's
17electric supply service requirements, and the utility shall
18procure any supply requirements, including capacity, ancillary
19services, and hourly priced energy, in the applicable markets
20as needed to serve those customers, provided that the utility
21may include in its procurement plan load requirements for the
22load that is associated with those retail customers whose
23service has been declared or deemed competitive pursuant to
24Section 16-113 of this Act to the extent that those customers
25are purchasing power and energy during one of the transition
26periods identified in subsection (b) of Section 16-113 of this

 

 

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1Act.
2    (b) A procurement plan shall be prepared for each electric
3utility consistent with the applicable requirements of the
4Illinois Power Agency Act and this Section. For purposes of
5this Section, Illinois electric utilities that are affiliated
6by virtue of a common parent company are considered to be a
7single electric utility. Small multi-jurisdictional utilities
8may request a procurement plan for a portion of or all of its
9Illinois load. Each procurement plan shall analyze the
10projected balance of supply and demand for those retail
11customers to be included in the plan's electric supply service
12requirements over a 5-year period, with the first planning year
13beginning on June 1 of the year following the year in which the
14plan is filed. The plan shall specifically identify the
15wholesale products to be procured following plan approval, and
16shall follow all the requirements set forth in the Public
17Utilities Act and all applicable State and federal laws,
18statutes, rules, or regulations, as well as Commission orders.
19Nothing in this Section precludes consideration of contracts
20longer than 5 years and related forecast data. Unless specified
21otherwise in this Section, in the procurement plan or in the
22implementing tariff, any procurement occurring in accordance
23with this plan shall be competitively bid through a request for
24proposals process. Approval and implementation of the
25procurement plan shall be subject to review and approval by the
26Commission according to the provisions set forth in this

 

 

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1Section. A procurement plan shall include each of the following
2components:
3        (1) Hourly load analysis. This analysis shall include:
4            (i) multi-year historical analysis of hourly
5        loads;
6            (ii) switching trends and competitive retail
7        market analysis;
8            (iii) known or projected changes to future loads;
9        and
10            (iv) growth forecasts by customer class.
11        (2) Analysis of the impact of any demand side and
12    renewable energy initiatives. This analysis shall include:
13            (i) the impact of demand response programs and
14        energy efficiency programs, both current and
15        projected; for small multi-jurisdictional utilities,
16        the impact of demand response and energy efficiency
17        programs approved pursuant to Section 8-408 of this
18        Act, both current and projected; and
19            (ii) supply side needs that are projected to be
20        offset by purchases of renewable energy resources, if
21        any.
22        (3) A plan for meeting the expected load requirements
23    that will not be met through preexisting contracts. This
24    plan shall include:
25            (i) definitions of the different Illinois retail
26        customer classes for which supply is being purchased;

 

 

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1            (ii) the proposed mix of demand-response products
2        for which contracts will be executed during the next
3        year. For small multi-jurisdictional electric
4        utilities that on December 31, 2005 served fewer than
5        100,000 customers in Illinois, these shall be defined
6        as demand-response products offered in an energy
7        efficiency plan approved pursuant to Section 8-408 of
8        this Act. The cost-effective demand-response measures
9        shall be procured whenever the cost is lower than
10        procuring comparable capacity products, provided that
11        such products shall:
12                (A) be procured by a demand-response provider
13            from those retail customers included in the plan's
14            electric supply service requirements;
15                (B) at least satisfy the demand-response
16            requirements of the regional transmission
17            organization market in which the utility's service
18            territory is located, including, but not limited
19            to, any applicable capacity or dispatch
20            requirements;
21                (C) provide for customers' participation in
22            the stream of benefits produced by the
23            demand-response products;
24                (D) provide for reimbursement by the
25            demand-response provider of the utility for any
26            costs incurred as a result of the failure of the

 

 

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1            supplier of such products to perform its
2            obligations thereunder; and
3                (E) meet the same credit requirements as apply
4            to suppliers of capacity, in the applicable
5            regional transmission organization market;
6            (iii) monthly forecasted system supply
7        requirements, including expected minimum, maximum, and
8        average values for the planning period;
9            (iv) the proposed mix and selection of standard
10        wholesale products for which contracts will be
11        executed during the next year, separately or in
12        combination, to meet that portion of its load
13        requirements not met through pre-existing contracts,
14        including but not limited to monthly 5 x 16 peak period
15        block energy, monthly off-peak wrap energy, monthly 7 x
16        24 energy, annual 5 x 16 energy, annual off-peak wrap
17        energy, annual 7 x 24 energy, monthly capacity, annual
18        capacity, peak load capacity obligations, capacity
19        purchase plan, and ancillary services;
20            (v) proposed term structures for each wholesale
21        product type included in the proposed procurement plan
22        portfolio of products; and
23            (vi) an assessment of the price risk, load
24        uncertainty, and other factors that are associated
25        with the proposed procurement plan; this assessment,
26        to the extent possible, shall include an analysis of

 

 

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1        the following factors: contract terms, time frames for
2        securing products or services, fuel costs, weather
3        patterns, transmission costs, market conditions, and
4        the governmental regulatory environment; the proposed
5        procurement plan shall also identify alternatives for
6        those portfolio measures that are identified as having
7        significant price risk.
8        (4) Proposed procedures for balancing loads. The
9    procurement plan shall include, for load requirements
10    included in the procurement plan, the process for (i)
11    hourly balancing of supply and demand and (ii) the criteria
12    for portfolio re-balancing in the event of significant
13    shifts in load.
14        (5) Long-Term Renewable Resources Procurement Plan.
15    The Agency shall prepare a long-term renewable resources
16    procurement plan for the procurement of renewable energy
17    credits under Sections 1-56 and 1-75 of the Illinois Power
18    Agency Act for delivery beginning in the 2017 delivery
19    year.
20            (i) The initial long-term renewable resources
21        procurement plan and all subsequent revisions shall be
22        subject to review and approval by the Commission. For
23        the purposes of this Section, "delivery year" has the
24        same meaning as in Section 1-10 of the Illinois Power
25        Agency Act. For purposes of this Section, "Agency"
26        shall mean the Illinois Power Agency.

 

 

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1            (ii) The long-term renewable resources planning
2        process shall be conducted as follows:
3                (A) Electric utilities shall provide a range
4            of load forecasts to the Illinois Power Agency
5            within 45 days of the Agency's request for
6            forecasts, which request shall specify the length
7            and conditions for the forecasts including, but
8            not limited to, the quantity of distributed
9            generation expected to be interconnected for each
10            year.
11                (B) The Agency shall publish for comment the
12            initial long-term renewable resources procurement
13            plan no later than 120 days after the effective
14            date of this amendatory Act of the 99th General
15            Assembly and shall review, and may revise, the plan
16            at least every 2 years thereafter. To the extent
17            practicable, the Agency shall review and propose
18            any revisions to the long-term renewable energy
19            resources procurement plan in conjunction with the
20            Agency's other planning and approval processes
21            conducted under this Section. The initial
22            long-term renewable resources procurement plan
23            shall:
24                    (aa) Identify the procurement programs and
25                competitive procurement events consistent with
26                the applicable requirements of the Illinois

 

 

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1                Power Agency Act and shall be designed to
2                achieve the goals set forth in subsection (c)
3                of Section 1-75 of that Act.
4                    (bb) Include a schedule for procurements
5                for renewable energy credits from
6                utility-scale wind projects, utility-scale
7                solar projects, and brownfield site
8                photovoltaic projects consistent with
9                subparagraph (G) of paragraph (1) of
10                subsection (c) of Section 1-75 of the Illinois
11                Power Agency Act.
12                    (cc) Identify the process whereby the
13                Agency will submit to the Commission for review
14                and approval the proposed contracts to
15                implement the programs required by such plan.
16                Copies of the initial long-term renewable
17            resources procurement plan and all subsequent
18            revisions shall be posted and made publicly
19            available on the Agency's and Commission's
20            websites, and copies shall also be provided to each
21            affected electric utility. An affected utility and
22            other interested parties shall have 45 days
23            following the date of posting to provide comment to
24            the Agency on the initial long-term renewable
25            resources procurement plan and all subsequent
26            revisions. All comments submitted to the Agency

 

 

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1            shall be specific, supported by data or other
2            detailed analyses, and, if objecting to all or a
3            portion of the procurement plan, accompanied by
4            specific alternative wording or proposals. All
5            comments shall be posted on the Agency's and
6            Commission's websites. During this 45-day comment
7            period, the Agency shall hold at least one public
8            hearing within each utility's service area that is
9            subject to the requirements of this paragraph (5)
10            for the purpose of receiving public comment.
11            Within 21 days following the end of the 45-day
12            review period, the Agency may revise the long-term
13            renewable resources procurement plan based on the
14            comments received and shall file the plan with the
15            Commission for review and approval.
16                (C) Within 14 days after the filing of the
17            initial long-term renewable resources procurement
18            plan or any subsequent revisions, any person
19            objecting to the plan may file an objection with
20            the Commission. Within 21 days after the filing of
21            the plan, the Commission shall determine whether a
22            hearing is necessary. The Commission shall enter
23            its order confirming or modifying the initial
24            long-term renewable resources procurement plan or
25            any subsequent revisions within 120 days after the
26            filing of the plan by the Illinois Power Agency.

 

 

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1                (D) The Commission shall approve the initial
2            long-term renewable resources procurement plan and
3            any subsequent revisions, including expressly the
4            forecast used in the plan and taking into account
5            that funding will be limited to the amount of
6            revenues actually collected by the utilities, if
7            the Commission determines that the plan will
8            reasonably and prudently accomplish the
9            requirements of Section 1-56 and subsection (c) of
10            Section 1-75 of the Illinois Power Agency Act. The
11            Commission shall also approve the process for the
12            submission, review, and approval of the proposed
13            contracts to procure renewable energy credits or
14            implement the programs authorized by the
15            Commission pursuant to a long-term renewable
16            resources procurement plan approved under this
17            Section.
18            (iii) The Agency or third parties contracted by the
19        Agency shall implement all programs authorized by the
20        Commission in an approved long-term renewable
21        resources procurement plan without further review and
22        approval by the Commission. Third parties shall not
23        begin implementing any programs or receive any payment
24        under this Section until the Commission has approved
25        the contract or contracts under the process authorized
26        by the Commission in item (D) of subparagraph (ii) of

 

 

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1        paragraph (5) of this subsection (b) and the third
2        party and the Agency or utility, as applicable, have
3        executed the contract. For those renewable energy
4        credits subject to procurement through a competitive
5        bid process under the plan or under the initial forward
6        procurements for wind and solar resources described in
7        subparagraph (G) of paragraph (1) of subsection (c) of
8        Section 1-75 of the Illinois Power Agency Act, the
9        Agency shall follow the procurement process specified
10        in the provisions relating to electricity procurement
11        in subsections (e) through (i) of this Section.
12            (iv) An electric utility shall recover its costs
13        associated with the procurement of renewable energy
14        credits under this Section through an automatic
15        adjustment clause tariff under subsection (k) of
16        Section 16-108 of this Act. A utility shall not be
17        required to advance any payment or pay any amounts
18        under this Section that exceed the actual amount of
19        revenues collected by the utility under paragraph (6)
20        of subsection (c) of Section 1-75 of the Illinois Power
21        Agency Act and subsection (k) of Section 16-108 of this
22        Act, and contracts executed under this Section shall
23        expressly incorporate this limitation.
24            (v) For the public interest, safety, and welfare,
25        the Agency and the Commission may adopt rules to carry
26        out the provisions of this Section on an emergency

 

 

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1        basis immediately following the effective date of this
2        amendatory Act of the 99th General Assembly.
3            (vi) On or before July 1 of each year, the
4        Commission shall hold an informal hearing for the
5        purpose of receiving comments on the prior year's
6        procurement process and any recommendations for
7        change.
8    (c) The procurement process set forth in Section 1-75 of
9the Illinois Power Agency Act and subsection (e) of this
10Section shall be administered by a procurement administrator
11and monitored by a procurement monitor.
12        (1) The procurement administrator shall:
13            (i) design the final procurement process in
14        accordance with Section 1-75 of the Illinois Power
15        Agency Act and subsection (e) of this Section following
16        Commission approval of the procurement plan;
17            (ii) develop benchmarks in accordance with
18        subsection (e)(3) to be used to evaluate bids; these
19        benchmarks shall be submitted to the Commission for
20        review and approval on a confidential basis prior to
21        the procurement event;
22            (iii) serve as the interface between the electric
23        utility and suppliers;
24            (iv) manage the bidder pre-qualification and
25        registration process;
26            (v) obtain the electric utilities' agreement to

 

 

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1        the final form of all supply contracts and credit
2        collateral agreements;
3            (vi) administer the request for proposals process;
4            (vii) have the discretion to negotiate to
5        determine whether bidders are willing to lower the
6        price of bids that meet the benchmarks approved by the
7        Commission; any post-bid negotiations with bidders
8        shall be limited to price only and shall be completed
9        within 24 hours after opening the sealed bids and shall
10        be conducted in a fair and unbiased manner; in
11        conducting the negotiations, there shall be no
12        disclosure of any information derived from proposals
13        submitted by competing bidders; if information is
14        disclosed to any bidder, it shall be provided to all
15        competing bidders;
16            (viii) maintain confidentiality of supplier and
17        bidding information in a manner consistent with all
18        applicable laws, rules, regulations, and tariffs;
19            (ix) submit a confidential report to the
20        Commission recommending acceptance or rejection of
21        bids;
22            (x) notify the utility of contract counterparties
23        and contract specifics; and
24            (xi) administer related contingency procurement
25        events.
26        (2) The procurement monitor, who shall be retained by

 

 

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1    the Commission, shall:
2            (i) monitor interactions among the procurement
3        administrator, suppliers, and utility;
4            (ii) monitor and report to the Commission on the
5        progress of the procurement process;
6            (iii) provide an independent confidential report
7        to the Commission regarding the results of the
8        procurement event;
9            (iv) assess compliance with the procurement plans
10        approved by the Commission for each utility that on
11        December 31, 2005 provided electric service to at least
12        100,000 customers in Illinois and for each small
13        multi-jurisdictional utility that on December 31, 2005
14        served less than 100,000 customers in Illinois;
15            (v) preserve the confidentiality of supplier and
16        bidding information in a manner consistent with all
17        applicable laws, rules, regulations, and tariffs;
18            (vi) provide expert advice to the Commission and
19        consult with the procurement administrator regarding
20        issues related to procurement process design, rules,
21        protocols, and policy-related matters; and
22            (vii) consult with the procurement administrator
23        regarding the development and use of benchmark
24        criteria, standard form contracts, credit policies,
25        and bid documents.
26    (d) Except as provided in subsection (j), the planning

 

 

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1process shall be conducted as follows:
2        (1) Beginning in 2008, each Illinois utility procuring
3    power pursuant to this Section shall annually provide a
4    range of load forecasts to the Illinois Power Agency by
5    July 15 of each year, or such other date as may be required
6    by the Commission or Agency. The load forecasts shall cover
7    the 5-year procurement planning period for the next
8    procurement plan and shall include hourly data
9    representing a high-load, low-load, and expected-load
10    scenario for the load of those retail customers included in
11    the plan's electric supply service requirements. The
12    utility shall provide supporting data and assumptions for
13    each of the scenarios.
14        (2) Beginning in 2008, the Illinois Power Agency shall
15    prepare a procurement plan by August 15th of each year, or
16    such other date as may be required by the Commission. The
17    procurement plan shall identify the portfolio of
18    demand-response and power and energy products to be
19    procured. Cost-effective demand-response measures shall be
20    procured as set forth in item (iii) of subsection (b) of
21    this Section. Copies of the procurement plan shall be
22    posted and made publicly available on the Agency's and
23    Commission's websites, and copies shall also be provided to
24    each affected electric utility. An affected utility shall
25    have 30 days following the date of posting to provide
26    comment to the Agency on the procurement plan. Other

 

 

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1    interested entities also may comment on the procurement
2    plan. All comments submitted to the Agency shall be
3    specific, supported by data or other detailed analyses,
4    and, if objecting to all or a portion of the procurement
5    plan, accompanied by specific alternative wording or
6    proposals. All comments shall be posted on the Agency's and
7    Commission's websites. During this 30-day comment period,
8    the Agency shall hold at least one public hearing within
9    each utility's service area for the purpose of receiving
10    public comment on the procurement plan. Within 14 days
11    following the end of the 30-day review period, the Agency
12    shall revise the procurement plan as necessary based on the
13    comments received and file the procurement plan with the
14    Commission and post the procurement plan on the websites.
15        (3) Within 5 days after the filing of the procurement
16    plan, any person objecting to the procurement plan shall
17    file an objection with the Commission. Within 10 days after
18    the filing, the Commission shall determine whether a
19    hearing is necessary. The Commission shall enter its order
20    confirming or modifying the procurement plan within 90 days
21    after the filing of the procurement plan by the Illinois
22    Power Agency.
23        (4) The Commission shall approve the procurement plan,
24    including expressly the forecast used in the procurement
25    plan, if the Commission determines that it will ensure
26    adequate, reliable, affordable, efficient, and

 

 

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1    environmentally sustainable electric service at the lowest
2    total cost over time, taking into account any benefits of
3    price stability.
4    (e) The procurement process shall include each of the
5following components:
6        (1) Solicitation, pre-qualification, and registration
7    of bidders. The procurement administrator shall
8    disseminate information to potential bidders to promote a
9    procurement event, notify potential bidders that the
10    procurement administrator may enter into a post-bid price
11    negotiation with bidders that meet the applicable
12    benchmarks, provide supply requirements, and otherwise
13    explain the competitive procurement process. In addition
14    to such other publication as the procurement administrator
15    determines is appropriate, this information shall be
16    posted on the Illinois Power Agency's and the Commission's
17    websites. The procurement administrator shall also
18    administer the prequalification process, including
19    evaluation of credit worthiness, compliance with
20    procurement rules, and agreement to the standard form
21    contract developed pursuant to paragraph (2) of this
22    subsection (e). The procurement administrator shall then
23    identify and register bidders to participate in the
24    procurement event.
25        (2) Standard contract forms and credit terms and
26    instruments. The procurement administrator, in

 

 

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1    consultation with the utilities, the Commission, and other
2    interested parties and subject to Commission oversight,
3    shall develop and provide standard contract forms for the
4    supplier contracts that meet generally accepted industry
5    practices. Standard credit terms and instruments that meet
6    generally accepted industry practices shall be similarly
7    developed. The procurement administrator shall make
8    available to the Commission all written comments it
9    receives on the contract forms, credit terms, or
10    instruments. If the procurement administrator cannot reach
11    agreement with the applicable electric utility as to the
12    contract terms and conditions, the procurement
13    administrator must notify the Commission of any disputed
14    terms and the Commission shall resolve the dispute. The
15    terms of the contracts shall not be subject to negotiation
16    by winning bidders, and the bidders must agree to the terms
17    of the contract in advance so that winning bids are
18    selected solely on the basis of price.
19        (3) Establishment of a market-based price benchmark.
20    As part of the development of the procurement process, the
21    procurement administrator, in consultation with the
22    Commission staff, Agency staff, and the procurement
23    monitor, shall establish benchmarks for evaluating the
24    final prices in the contracts for each of the products that
25    will be procured through the procurement process. The
26    benchmarks shall be based on price data for similar

 

 

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1    products for the same delivery period and same delivery
2    hub, or other delivery hubs after adjusting for that
3    difference. The price benchmarks may also be adjusted to
4    take into account differences between the information
5    reflected in the underlying data sources and the specific
6    products and procurement process being used to procure
7    power for the Illinois utilities. The benchmarks shall be
8    confidential but shall be provided to, and will be subject
9    to Commission review and approval, prior to a procurement
10    event.
11        (4) Request for proposals competitive procurement
12    process. The procurement administrator shall design and
13    issue a request for proposals to supply electricity in
14    accordance with each utility's procurement plan, as
15    approved by the Commission. The request for proposals shall
16    set forth a procedure for sealed, binding commitment
17    bidding with pay-as-bid settlement, and provision for
18    selection of bids on the basis of price.
19        (5) A plan for implementing contingencies in the event
20    of supplier default or failure of the procurement process
21    to fully meet the expected load requirement due to
22    insufficient supplier participation, Commission rejection
23    of results, or any other cause.
24            (i) Event of supplier default: In the event of
25        supplier default, the utility shall review the
26        contract of the defaulting supplier to determine if the

 

 

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1        amount of supply is 200 megawatts or greater, and if
2        there are more than 60 days remaining of the contract
3        term. If both of these conditions are met, and the
4        default results in termination of the contract, the
5        utility shall immediately notify the Illinois Power
6        Agency that a request for proposals must be issued to
7        procure replacement power, and the procurement
8        administrator shall run an additional procurement
9        event. If the contracted supply of the defaulting
10        supplier is less than 200 megawatts or there are less
11        than 60 days remaining of the contract term, the
12        utility shall procure power and energy from the
13        applicable regional transmission organization market,
14        including ancillary services, capacity, and day-ahead
15        or real time energy, or both, for the duration of the
16        contract term to replace the contracted supply;
17        provided, however, that if a needed product is not
18        available through the regional transmission
19        organization market it shall be purchased from the
20        wholesale market.
21            (ii) Failure of the procurement process to fully
22        meet the expected load requirement: If the procurement
23        process fails to fully meet the expected load
24        requirement due to insufficient supplier participation
25        or due to a Commission rejection of the procurement
26        results, the procurement administrator, the

 

 

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1        procurement monitor, and the Commission staff shall
2        meet within 10 days to analyze potential causes of low
3        supplier interest or causes for the Commission
4        decision. If changes are identified that would likely
5        result in increased supplier participation, or that
6        would address concerns causing the Commission to
7        reject the results of the prior procurement event, the
8        procurement administrator may implement those changes
9        and rerun the request for proposals process according
10        to a schedule determined by those parties and
11        consistent with Section 1-75 of the Illinois Power
12        Agency Act and this subsection. In any event, a new
13        request for proposals process shall be implemented by
14        the procurement administrator within 90 days after the
15        determination that the procurement process has failed
16        to fully meet the expected load requirement.
17            (iii) In all cases where there is insufficient
18        supply provided under contracts awarded through the
19        procurement process to fully meet the electric
20        utility's load requirement, the utility shall meet the
21        load requirement by procuring power and energy from the
22        applicable regional transmission organization market,
23        including ancillary services, capacity, and day-ahead
24        or real time energy, or both; provided, however, that
25        if a needed product is not available through the
26        regional transmission organization market it shall be

 

 

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1        purchased from the wholesale market.
2        (6) The procurement process described in this
3    subsection is exempt from the requirements of the Illinois
4    Procurement Code, pursuant to Section 20-10 of that Code.
5    (f) Within 2 business days after opening the sealed bids,
6the procurement administrator shall submit a confidential
7report to the Commission. The report shall contain the results
8of the bidding for each of the products along with the
9procurement administrator's recommendation for the acceptance
10and rejection of bids based on the price benchmark criteria and
11other factors observed in the process. The procurement monitor
12also shall submit a confidential report to the Commission
13within 2 business days after opening the sealed bids. The
14report shall contain the procurement monitor's assessment of
15bidder behavior in the process as well as an assessment of the
16procurement administrator's compliance with the procurement
17process and rules. The Commission shall review the confidential
18reports submitted by the procurement administrator and
19procurement monitor, and shall accept or reject the
20recommendations of the procurement administrator within 2
21business days after receipt of the reports.
22    (g) Within 3 business days after the Commission decision
23approving the results of a procurement event, the utility shall
24enter into binding contractual arrangements with the winning
25suppliers using the standard form contracts; except that the
26utility shall not be required either directly or indirectly to

 

 

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1execute the contracts if a tariff that is consistent with
2subsection (l) of this Section has not been approved and placed
3into effect for that utility.
4    (h) The names of the successful bidders and the load
5weighted average of the winning bid prices for each contract
6type and for each contract term shall be made available to the
7public at the time of Commission approval of a procurement
8event. The Commission, the procurement monitor, the
9procurement administrator, the Illinois Power Agency, and all
10participants in the procurement process shall maintain the
11confidentiality of all other supplier and bidding information
12in a manner consistent with all applicable laws, rules,
13regulations, and tariffs. Confidential information, including
14the confidential reports submitted by the procurement
15administrator and procurement monitor pursuant to subsection
16(f) of this Section, shall not be made publicly available and
17shall not be discoverable by any party in any proceeding,
18absent a compelling demonstration of need, nor shall those
19reports be admissible in any proceeding other than one for law
20enforcement purposes.
21    (i) Within 2 business days after a Commission decision
22approving the results of a procurement event or such other date
23as may be required by the Commission from time to time, the
24utility shall file for informational purposes with the
25Commission its actual or estimated retail supply charges, as
26applicable, by customer supply group reflecting the costs

 

 

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1associated with the procurement and computed in accordance with
2the tariffs filed pursuant to subsection (l) of this Section
3and approved by the Commission.
4    (j) Within 60 days following August 28, 2007 (the effective
5date of Public Act 95-481), each electric utility that on
6December 31, 2005 provided electric service to at least 100,000
7customers in Illinois shall prepare and file with the
8Commission an initial procurement plan, which shall conform in
9all material respects to the requirements of the procurement
10plan set forth in subsection (b); provided, however, that the
11Illinois Power Agency Act shall not apply to the initial
12procurement plan prepared pursuant to this subsection. The
13initial procurement plan shall identify the portfolio of power
14and energy products to be procured and delivered for the period
15June 2008 through May 2009, and shall identify the proposed
16procurement administrator, who shall have the same experience
17and expertise as is required of a procurement administrator
18hired pursuant to Section 1-75 of the Illinois Power Agency
19Act. Copies of the procurement plan shall be posted and made
20publicly available on the Commission's website. The initial
21procurement plan may include contracts for renewable resources
22that extend beyond May 2009.
23        (i) Within 14 days following filing of the initial
24    procurement plan, any person may file a detailed objection
25    with the Commission contesting the procurement plan
26    submitted by the electric utility. All objections to the

 

 

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1    electric utility's plan shall be specific, supported by
2    data or other detailed analyses. The electric utility may
3    file a response to any objections to its procurement plan
4    within 7 days after the date objections are due to be
5    filed. Within 7 days after the date the utility's response
6    is due, the Commission shall determine whether a hearing is
7    necessary. If it determines that a hearing is necessary, it
8    shall require the hearing to be completed and issue an
9    order on the procurement plan within 60 days after the
10    filing of the procurement plan by the electric utility.
11        (ii) The order shall approve or modify the procurement
12    plan, approve an independent procurement administrator,
13    and approve or modify the electric utility's tariffs that
14    are proposed with the initial procurement plan. The
15    Commission shall approve the procurement plan if the
16    Commission determines that it will ensure adequate,
17    reliable, affordable, efficient, and environmentally
18    sustainable electric service at the lowest total cost over
19    time, taking into account any benefits of price stability.
20    (k) (Blank).
21    (k-5) (Blank).
22    (l) An electric utility shall recover its costs incurred
23under this Section, including, but not limited to, the costs of
24procuring power and energy demand-response resources under
25this Section. The utility shall file with the initial
26procurement plan its proposed tariffs through which its costs

 

 

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1of procuring power that are incurred pursuant to a
2Commission-approved procurement plan and those other costs
3identified in this subsection (l), will be recovered. The
4tariffs shall include a formula rate or charge designed to pass
5through both the costs incurred by the utility in procuring a
6supply of electric power and energy for the applicable customer
7classes with no mark-up or return on the price paid by the
8utility for that supply, plus any just and reasonable costs
9that the utility incurs in arranging and providing for the
10supply of electric power and energy. The formula rate or charge
11shall also contain provisions that ensure that its application
12does not result in over or under recovery due to changes in
13customer usage and demand patterns, and that provide for the
14correction, on at least an annual basis, of any accounting
15errors that may occur. A utility shall recover through the
16tariff all reasonable costs incurred to implement or comply
17with any procurement plan that is developed and put into effect
18pursuant to Section 1-75 of the Illinois Power Agency Act and
19this Section, including any fees assessed by the Illinois Power
20Agency, costs associated with load balancing, and contingency
21plan costs. The electric utility shall also recover its full
22costs of procuring electric supply for which it contracted
23before the effective date of this Section in conjunction with
24the provision of full requirements service under fixed-price
25bundled service tariffs subsequent to December 31, 2006. All
26such costs shall be deemed to have been prudently incurred. The

 

 

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1pass-through tariffs that are filed and approved pursuant to
2this Section shall not be subject to review under, or in any
3way limited by, Section 16-111(i) of this Act. All of the costs
4incurred by the electric utility associated with the purchase
5of zero emission credits in accordance with subsection (d-5) of
6Section 1-75 of the Illinois Power Agency Act and, beginning
7June 1, 2017, all of the costs incurred by the electric utility
8associated with the purchase of renewable energy resources in
9accordance with Sections 1-56 and 1-75 of the Illinois Power
10Agency Act, shall be recovered through the electric utility's
11tariffed charges applicable to all of its retail customers, as
12specified in subsection (k) of Section 16-108 of this Act, and
13shall not be recovered through the electric utility's tariffed
14charges for electric power and energy supply to its eligible
15retail customers.
16    (m) The Commission has the authority to adopt rules to
17carry out the provisions of this Section. For the public
18interest, safety, and welfare, the Commission also has
19authority to adopt rules to carry out the provisions of this
20Section on an emergency basis immediately following August 28,
212007 (the effective date of Public Act 95-481).
22    (n) Notwithstanding any other provision of this Act, any
23affiliated electric utilities that submit a single procurement
24plan covering their combined needs may procure for those
25combined needs in conjunction with that plan, and may enter
26jointly into power supply contracts, purchases, and other

 

 

HB2861- 29 -LRB101 07685 JRG 52733 b

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

 

 

HB2861- 30 -LRB101 07685 JRG 52733 b

1retail customers included in the plan's electric supply service
2requirements. 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    (q) If the Illinois Power Agency filed with the Commission,
10under Section 16-111.5 of this Act, its proposed procurement
11plan for the period commencing June 1, 2017, and the Commission
12has not yet entered its final order approving the plan on or
13before the effective date of this amendatory Act of the 99th
14General Assembly, then the Illinois Power Agency shall file a
15notice of withdrawal with the Commission, after the effective
16date of this amendatory Act of the 99th General Assembly, to
17withdraw the proposed procurement of renewable energy
18resources to be approved under the plan, other than the
19procurement of renewable energy credits from distributed
20renewable energy generation devices using funds previously
21collected from electric utilities' retail customers that take
22service pursuant to electric utilities' hourly pricing tariff
23or tariffs and, for an electric utility that serves less than
24100,000 retail customers in the State, other than the
25procurement of renewable energy credits from distributed
26renewable energy generation devices. Upon receipt of the

 

 

HB2861- 31 -LRB101 07685 JRG 52733 b

1notice, the Commission shall enter an order that approves the
2withdrawal of the proposed procurement of renewable energy
3resources from the plan. The initially proposed procurement of
4renewable energy resources shall not be approved or be the
5subject of any further hearing, investigation, proceeding, or
6order of any kind.
7    This amendatory Act of the 99th General Assembly preempts
8and supersedes any order entered by the Commission that
9approved the Illinois Power Agency's procurement plan for the
10period commencing June 1, 2017, to the extent it is
11inconsistent with the provisions of this amendatory Act of the
1299th General Assembly. To the extent any previously entered
13order approved the procurement of renewable energy resources,
14the portion of that order approving the procurement shall be
15void, other than the procurement of renewable energy credits
16from distributed renewable energy generation devices using
17funds previously collected from electric utilities' retail
18customers that take service under electric utilities' hourly
19pricing tariff or tariffs and, for an electric utility that
20serves less than 100,000 retail customers in the State, other
21than the procurement of renewable energy credits for
22distributed renewable energy generation devices.
23(Source: P.A. 99-906, eff. 6-1-17.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.