102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0529

 

Introduced 2/23/2021, by Sen. Michael E. Hastings

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-20
20 ILCS 3855/1-75
30 ILCS 105/5.935 new
220 ILCS 5/16-108
220 ILCS 5/16-111.5

    Provides that the amendatory Act may be referred to as the Coal to Solar and Energy Storage Act. Amends the Illinois Power Agency Act, the State Finance Act, and the Public Utilities Act. Authorizes the procurement of renewable energy credits by electric utilities serving more than 300,000 retail customers as of January 1, 2019. Provides for the renewable energy credits to be related to new renewable energy resources installed at the site of electric generation that on January 1, 2019 burned coal as the primary fuel source. Provides for the Illinois Power Agency to manage the procurement of the credits. Establishes the requirements for eligibility for the credits. Requires the electric utilities to file a tariff for the billing and collection of a Coal to Solar and Energy Storage Initiative Charge on each kilowatthour of electricity delivered to its delivery services customers within its service territory at specified rates and to deposit a percentage of its collections in the Coal to Solar and Energy Storage Incentive and Plant Transition Fund. Establishes the Coal to Solar and Energy Storage Incentive and Plant Transition Fund as a special fund in the State treasury to provide transitional support funding to coal-fueled electric utilities participating in the utilization of the renewable energy credits. Effective immediately.


LRB102 14240 SPS 19592 b

 

 

A BILL FOR

 

SB0529LRB102 14240 SPS 19592 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the Coal to Solar
5and Energy Storage Act.
 
6    Section 5. Legislative findings. The General Assembly
7finds and declares:
8        (1) The overall objectives of regulation of the
9    electric utility industry in this State, as expressed by
10    the General Assembly in the Illinois Power Agency Act and
11    the Public Utilities Act, include the provision of
12    adequate, efficient, reliable, environmentally safe, and
13    least-cost utility services at prices that accurately
14    reflect the long-term cost of such services and that are
15    equitable to all citizens.
16        (2) For many years, a significant portion of the
17    electricity consumed by consumers and businesses in this
18    State, particularly in the downstate region of this State,
19    has been produced by large coal-fueled electric generating
20    stations located in the downstate region. Further, these
21    electric generating stations are typically available to
22    provide electricity to serve the demands of retail
23    customers 24 hours per day, 7 days per week, without

 

 

SB0529- 2 -LRB102 14240 SPS 19592 b

1    regard to inherently intermittent natural conditions such
2    as wind speeds or the hours in which solar energy is
3    available.
4        (3) In recent years, the prices for electric
5    generating capacity and electric energy available to
6    coal-fueled electric generating stations located in the
7    downstate region of this State have been insufficient to
8    enable some electric generating facilities located within
9    the downstate region to remain in operation, and has
10    placed other electric generating stations in the downstate
11    region at economic risk of closure. Changes in
12    environmental regulations have also contributed to the
13    retirement of coal-fueled generating stations in the
14    downstate region.
15        (4) Between 2015 and 2021, more than 4,300 megawatts
16    of electric generating facilities located in Load Zone 4
17    of the Midcontinent Independent System Operator, Inc. in
18    downstate Illinois have been permanently retired,
19    rendering this capacity unavailable to serve the demands
20    of Illinois electricity consumers. Additional electric
21    generating capacity in this downstate region has been
22    announced for retirement by no later than 2027, with
23    approximately 580 megawatts to be retired by the end of
24    2022, 170 megawatts to be retired by end of 2023, 2,520
25    megawatts announced for retirement no later than the end
26    of 2025, and 615 megawatts announced for retirement by the

 

 

SB0529- 3 -LRB102 14240 SPS 19592 b

1    end of 2027, resulting in a total of almost 8,200
2    megawatts of coal-fueled electric generating capacity in
3    this downstate region that has recently been retired or
4    announced for retirement by no later than 2027. It is
5    estimated that of the 2,520 megawatts of generating
6    capacity announced for retirement by the end of 2025,
7    approximately 2,200 megawatts of generating capacity
8    located in this downstate region is currently at
9    significant risk of retirement as soon as the end of 2022,
10    without additional revenues or transition support, in
11    light of prevailing low prices for electric generating
12    capacity and electric energy in Load Zone 4 of the
13    Midcontinent Independent System Operator, Inc., or due to
14    recently enacted or adopted environmental regulations.
15    Further, an additional 1,108 megawatts of coal-fueled
16    electric generating capacity that is located in the
17    downstate region but is interconnected with the ComEd Zone
18    of the PJM Interconnection, LLC has been announced for
19    retirement by the end of 2027. In short, a vast majority of
20    the coal-fueled generation located in the downstate region
21    has been recently retired or will be retired by no later
22    than the end of 2027.
23        (5) To a significant extent, as the existing bulk
24    power system is presently configured, electricity, when
25    generated, cannot yet be stored for future use in any
26    significant amount relative to the total amount of

 

 

SB0529- 4 -LRB102 14240 SPS 19592 b

1    electricity that existing generating facilities can
2    produce. Rather, for the most part, electricity must be
3    generated instantaneously at the time and in the amount
4    that it is demanded by residential and business consumers.
5    This characteristic of the existing bulk power system is
6    unlikely to change significantly in the near term. The
7    development of energy storage facilities provides some
8    opportunity to store some amounts of electricity for use
9    at later times. However, energy storage facilities with
10    sufficient capacity to deliver electricity to meet the
11    demands of consumers within each load zone in this State,
12    24 hours per day, 7 days per week on every day of the year,
13    have not yet been built.
14        (6) Reliable electric service at all times is
15    essential to the functioning of a modern economy and of
16    society in general. The health, welfare, and prosperity of
17    Illinois citizens, including the attractiveness of the
18    State of Illinois to business and industry, requires the
19    availability of sufficient electric generating capacity,
20    including energy storage capacity, to meet the demands of
21    consumers and businesses in this State at all times. In
22    fact, during the COVID-19 crisis, electric generating
23    facilities in Illinois, including those scheduled for
24    retirement, have been declared essential services and the
25    employees at these facilities declared essential employees
26    who have gallantly answered the call of duty to continue

 

 

SB0529- 5 -LRB102 14240 SPS 19592 b

1    providing reliable electric service in the face of the
2    pandemic threat.
3        (7) In the near term, there is uncertainty as to the
4    sufficiency of electric generating resources to reliably
5    serve the electric capacity and energy needs of
6    residential and business electricity customers in the
7    downstate region, particularly in light of the additional
8    amounts of coal-fueled electric generating resources in
9    the downstate region that are economically at risk and may
10    retire in the near future. Both the Midcontinent
11    Independent System Operator, Inc., which is the
12    independent transmission system operator for downstate
13    Illinois, and its Independent Market Monitor, have
14    expressed concerns about the sufficiency of electric
15    generating resources in downstate Illinois over the next
16    several years, due primarily to the possibility of
17    retirements of coal-fueled electric generating facilities
18    and concerns about how quickly and extensively new wind
19    and solar generating facilities will be placed into
20    service. These concerns were originally expressed by these
21    organizations prior to the announcements in 2019 of
22    additional retirements of electric generating plants with
23    more than 2,600 megawatts of capacity in the downstate
24    region and subsequent announcements of the scheduled
25    retirements of additional electric generating facilities
26    in the downstate region. Concerns have also been

 

 

SB0529- 6 -LRB102 14240 SPS 19592 b

1    expressed, based on the intermittent nature of wind and
2    solar generating facilities, as to whether the grid can
3    operate reliably without sufficient dispatchable
4    generation resources or significant additions of energy
5    storage facilities to balance the output of renewable
6    generating facilities. Other commentators have stated that
7    such concerns about resource adequacy in downstate
8    Illinois are overstated. However, the General Assembly
9    believes that the State cannot afford to find itself in a
10    situation of insufficient electric generating resources to
11    meet the needs of Illinois residential and business
12    consumers.
13        (8) Consistent with the overall objectives of the
14    regulation of the electric utility industry in this State,
15    regulation should ensure that sufficient generating
16    capacity resources, including energy storage resources,
17    are available on both a short-term basis and a long-term
18    basis to enable the electric utility grid to meet the
19    demands of Illinois electricity consumers at all times.
20        (9) Through previous enactments beginning in 1997, the
21    General Assembly has mandated that electric utilities and
22    other load-serving entities in this State obtain specified
23    portions of the electric energy needed to serve their
24    retail loads in this State through the procurement of
25    electricity or renewable energy credits from renewable
26    energy resources, among other means through procurement

 

 

SB0529- 7 -LRB102 14240 SPS 19592 b

1    events managed and supervised by the Illinois Power
2    Agency.
3        (10) Correspondingly, through previous enactments
4    beginning in 2007, the General Assembly has provided
5    incentives for the construction and operation of wind,
6    solar, and other types of renewable energy resources to
7    serve load in Illinois, and has mandated the imposition of
8    charges to retail customers, subject to caps, to fund the
9    procurement of electricity and renewable energy credits
10    from such facilities. In such enactments, the General
11    Assembly has recognized that providing opportunities to
12    enter into long-term contracts for the purchase of
13    electricity and renewable energy credits from renewable
14    energy resources creates incentives, and in fact is
15    necessary, for the construction and operation of such
16    resources. Developers typically will not and cannot,
17    financially, develop new, large-scale renewable energy
18    generating resources without having secured long-term
19    contracts for the electricity output and renewable energy
20    credits of the new facilities.
21        (11) The permitting and siting of new wind and solar
22    generating resources in Illinois are subject to local
23    governmental control, rather than State control, and in
24    many areas of this State, there has been strong opposition
25    to the siting and construction of new utility-scale wind
26    and solar generating resources, which in turn has resulted

 

 

SB0529- 8 -LRB102 14240 SPS 19592 b

1    in the denial of, or withdrawal of requests for, necessary
2    approvals for some projects and the enactment of local
3    zoning ordinances imposing requirements and restrictions
4    that increase the costs and reduce the economic
5    attractiveness of such projects. This has resulted in the
6    delay or cancellation of a number of new renewable energy
7    resource projects.
8        (12) In light of the intermittent nature of many types
9    of renewable energy resources, such as wind and solar
10    generation resources, the installation and operation of
11    electricity storage facilities in conjunction with the
12    installation and operation of renewable generation
13    resources can enhance the value of renewable energy
14    resources to the electric grid, particularly as a reliable
15    source of electric capacity as well as electric energy.
16        (13) Through legislation enacted in 2016, the General
17    Assembly, through the program commonly referred to as the
18    zero emission credit program, has provided for the
19    continued economic viability of certain
20    economically-challenged nuclear generating facilities in
21    Illinois that are also significant employers and
22    taxpayers. Certain Illinois electric utilities are
23    required to purchase specified amounts of zero emission
24    credits from these nuclear generating facilities, with
25    such purchases to be funded through an additional charge
26    to the electric utilities' retail customers as specified

 

 

SB0529- 9 -LRB102 14240 SPS 19592 b

1    in the legislation.
2        (14) The sites of many of the large coal-fueled
3    electric generating stations located in the downstate
4    region of this State that have recently been retired or
5    are at risk of retirement in the near term have existing
6    infrastructure and other characteristics that make them
7    suitable potential sites for development of new renewable
8    energy generating resources and electricity storage
9    resources. This infrastructure and other characteristics
10    include large amounts of available land situated at a
11    suitable distance from populated areas, suitable levels of
12    exposure to sunlight, and high voltage interconnections to
13    the bulk electric system transmission grid at strategic
14    locations. Development of these generating plant sites for
15    large-scale renewable energy generating resources and
16    electricity storage resources can help advance this
17    State's objective of increasing the portion of the State's
18    total electricity usage that is supplied by zero emission
19    resources, while supporting the reliability of electric
20    service in the downstate region. Further, development of
21    these generating plant sites for large-scale renewable
22    energy generating resources and electricity storage
23    resources can provide employment, local economic activity,
24    and tax base for the nearby communities, offsetting, at
25    least in part, the reduction in employment, economic
26    activity, and tax revenues resulting from the retirement

 

 

SB0529- 10 -LRB102 14240 SPS 19592 b

1    of nearby coal-fueled electric generating stations.
2    Accordingly, the General Assembly finds that it is in the
3    public interest to encourage the redevelopment of the
4    sites of retired and to-be retired coal-fueled electric
5    generating stations as locations for renewable energy
6    generating resources and electricity storage resources.
7        (15) The General Assembly finds that it is appropriate
8    for the State of Illinois to establish a program to
9    provide for incentives for the installation and operation
10    of new renewable energy resources, along with energy
11    storage resources, at the sites of retired and at-risk
12    coal-fueled electric generating facilities in the
13    downstate region of this State, to provide incentives for
14    continued operation, in the near term, of the remaining
15    coal-fueled generating facilities in the downstate region
16    to ensure the availability of sufficient electric capacity
17    and energy resources to meet the demands of residential
18    and business electricity consumers in the downstate region
19    as well as in the State as a whole, while at the same time
20    also providing incentives for the transition to retirement
21    of some additional portion of the coal-fueled electric
22    generating facilities in the downstate region.
 
23    Section 10. The Illinois Power Agency Act is amended by
24changing Sections 1-20 and 1-75 as follows:
 

 

 

SB0529- 11 -LRB102 14240 SPS 19592 b

1    (20 ILCS 3855/1-20)
2    Sec. 1-20. General powers of the Agency.
3    (a) The Agency is authorized to do each of the following:
4        (1) Develop electricity procurement plans to ensure
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability, for electric utilities that on December
9    31, 2005 provided electric service to at least 100,000
10    customers in Illinois and for small multi-jurisdictional
11    electric utilities that (A) on December 31, 2005 served
12    less than 100,000 customers in Illinois and (B) request a
13    procurement plan for their Illinois jurisdictional load.
14    Except as provided in paragraph (1.5) of this subsection
15    (a), the electricity procurement plans shall be updated on
16    an annual basis and shall include electricity generated
17    from renewable resources sufficient to achieve the
18    standards specified in this Act. Beginning with the
19    delivery year commencing June 1, 2017, develop procurement
20    plans to include zero emission credits generated from zero
21    emission facilities sufficient to achieve the standards
22    specified in this Act.
23        (1.5) Develop a long-term renewable resources
24    procurement plan in accordance with subsection (c) of
25    Section 1-75 of this Act for renewable energy credits in
26    amounts sufficient to achieve the standards specified in

 

 

SB0529- 12 -LRB102 14240 SPS 19592 b

1    this Act for delivery years commencing June 1, 2017 and
2    for the programs and renewable energy credits specified in
3    Section 1-56 of this Act. Electricity procurement plans
4    for delivery years commencing after May 31, 2017, shall
5    not include procurement of renewable energy resources.
6        (2) Conduct competitive procurement processes to
7    procure the supply resources identified in the electricity
8    procurement plan, pursuant to Section 16-111.5 of the
9    Public Utilities Act, and, for the delivery year
10    commencing June 1, 2017, conduct procurement processes to
11    procure zero emission credits from zero emission
12    facilities, under subsection (d-5) of Section 1-75 of this
13    Act.
14        (2.5) Beginning with the procurement for the 2017
15    delivery year, conduct competitive procurement processes
16    and implement programs to procure renewable energy credits
17    identified in the long-term renewable resources
18    procurement plan developed and approved under subsection
19    (c) of Section 1-75 of this Act and Section 16-111.5 of the
20    Public Utilities Act.
21        (2.10) Oversee the procurement by electric utilities
22    that served more than 300,000 customers in this State as
23    of January 1, 2019 of renewable energy credits from new
24    renewable energy resources to be installed, along with
25    energy storage resources, at or adjacent to the sites of
26    electric generating facilities that burned coal as their

 

 

SB0529- 13 -LRB102 14240 SPS 19592 b

1    primary fuel source as of January 1, 2019, in accordance
2    with subsection (c-5) of Section 1-75 of this 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.
7        (4) Supply electricity from the Agency's facilities at
8    cost to one or more of the following: municipal electric
9    systems, governmental aggregators, or rural electric
10    cooperatives in Illinois.
11    (b) Except as otherwise limited by this Act, the Agency
12has all of the powers necessary or convenient to carry out the
13purposes and provisions of this Act, including without
14limitation, each of the following:
15        (1) To have a corporate seal, and to alter that seal at
16    pleasure, and to use it by causing it or a facsimile to be
17    affixed or impressed or reproduced in any other manner.
18        (2) To use the services of the Illinois Finance
19    Authority necessary to carry out the Agency's purposes.
20        (3) To negotiate and enter into loan agreements and
21    other agreements with the Illinois Finance Authority.
22        (4) To obtain and employ personnel and hire
23    consultants that are necessary to fulfill the Agency's
24    purposes, and to make expenditures for that purpose within
25    the appropriations for that purpose.
26        (5) To purchase, receive, take by grant, gift, devise,

 

 

SB0529- 14 -LRB102 14240 SPS 19592 b

1    bequest, or otherwise, lease, or otherwise acquire, own,
2    hold, improve, employ, use, and otherwise deal in and
3    with, real or personal property whether tangible or
4    intangible, or any interest therein, within the State.
5        (6) To acquire real or personal property, whether
6    tangible or intangible, including without limitation
7    property rights, interests in property, franchises,
8    obligations, contracts, and debt and equity securities,
9    and to do so by the exercise of the power of eminent domain
10    in accordance with Section 1-21; except that any real
11    property acquired by the exercise of the power of eminent
12    domain must be located within the State.
13        (7) To sell, convey, lease, exchange, transfer,
14    abandon, or otherwise dispose of, or mortgage, pledge, or
15    create a security interest in, any of its assets,
16    properties, or any interest therein, wherever situated.
17        (8) To purchase, take, receive, subscribe for, or
18    otherwise acquire, hold, make a tender offer for, vote,
19    employ, sell, lend, lease, exchange, transfer, or
20    otherwise dispose of, mortgage, pledge, or grant a
21    security interest in, use, and otherwise deal in and with,
22    bonds and other obligations, shares, or other securities
23    (or interests therein) issued by others, whether engaged
24    in a similar or different business or activity.
25        (9) To make and execute agreements, contracts, and
26    other instruments necessary or convenient in the exercise

 

 

SB0529- 15 -LRB102 14240 SPS 19592 b

1    of the powers and functions of the Agency under this Act,
2    including contracts with any person, including personal
3    service contracts, or with any local government, State
4    agency, or other entity; and all State agencies and all
5    local governments are authorized to enter into and do all
6    things necessary to perform any such agreement, contract,
7    or other instrument with the Agency. No such agreement,
8    contract, or other instrument shall exceed 40 years.
9        (10) To lend money, invest and reinvest its funds in
10    accordance with the Public Funds Investment Act, and take
11    and hold real and personal property as security for the
12    payment of funds loaned or invested.
13        (11) To borrow money at such rate or rates of interest
14    as the Agency may determine, issue its notes, bonds, or
15    other obligations to evidence that indebtedness, and
16    secure any of its obligations by mortgage or pledge of its
17    real or personal property, machinery, equipment,
18    structures, fixtures, inventories, revenues, grants, and
19    other funds as provided or any interest therein, wherever
20    situated.
21        (12) To enter into agreements with the Illinois
22    Finance Authority to issue bonds whether or not the income
23    therefrom is exempt from federal taxation.
24        (13) To procure insurance against any loss in
25    connection with its properties or operations in such
26    amount or amounts and from such insurers, including the

 

 

SB0529- 16 -LRB102 14240 SPS 19592 b

1    federal government, as it may deem necessary or desirable,
2    and to pay any premiums therefor.
3        (14) To negotiate and enter into agreements with
4    trustees or receivers appointed by United States
5    bankruptcy courts or federal district courts or in other
6    proceedings involving adjustment of debts and authorize
7    proceedings involving adjustment of debts and authorize
8    legal counsel for the Agency to appear in any such
9    proceedings.
10        (15) To file a petition under Chapter 9 of Title 11 of
11    the United States Bankruptcy Code or take other similar
12    action for the adjustment of its debts.
13        (16) To enter into management agreements for the
14    operation of any of the property or facilities owned by
15    the Agency.
16        (17) To enter into an agreement to transfer and to
17    transfer any land, facilities, fixtures, or equipment of
18    the Agency to one or more municipal electric systems,
19    governmental aggregators, or rural electric agencies or
20    cooperatives, for such consideration and upon such terms
21    as the Agency may determine to be in the best interest of
22    the citizens of Illinois.
23        (18) To enter upon any lands and within any building
24    whenever in its judgment it may be necessary for the
25    purpose of making surveys and examinations to accomplish
26    any purpose authorized by this Act.

 

 

SB0529- 17 -LRB102 14240 SPS 19592 b

1        (19) To maintain an office or offices at such place or
2    places in the State as it may determine.
3        (20) To request information, and to make any inquiry,
4    investigation, survey, or study that the Agency may deem
5    necessary to enable it effectively to carry out the
6    provisions of this Act.
7        (21) To accept and expend appropriations.
8        (22) To engage in any activity or operation that is
9    incidental to and in furtherance of efficient operation to
10    accomplish the Agency's purposes, including hiring
11    employees that the Director deems essential for the
12    operations of the Agency.
13        (23) To adopt, revise, amend, and repeal rules with
14    respect to its operations, properties, and facilities as
15    may be necessary or convenient to carry out the purposes
16    of this Act, subject to the provisions of the Illinois
17    Administrative Procedure Act and Sections 1-22 and 1-35 of
18    this Act.
19        (24) To establish and collect charges and fees as
20    described in this Act.
21        (25) To conduct competitive gasification feedstock
22    procurement processes to procure the feedstocks for the
23    clean coal SNG brownfield facility in accordance with the
24    requirements of Section 1-78 of this Act.
25        (26) To review, revise, and approve sourcing
26    agreements and mediate and resolve disputes between gas

 

 

SB0529- 18 -LRB102 14240 SPS 19592 b

1    utilities and the clean coal SNG brownfield facility
2    pursuant to subsection (h-1) of Section 9-220 of the
3    Public Utilities Act.
4        (27) To request, review and accept proposals, execute
5    contracts, purchase renewable energy credits and otherwise
6    dedicate funds from the Illinois Power Agency Renewable
7    Energy Resources Fund to create and carry out the
8    objectives of the Illinois Solar for All program in
9    accordance with Section 1-56 of this Act.
10(Source: P.A. 99-906, eff. 6-1-17.)
 
11    (20 ILCS 3855/1-75)
12    Sec. 1-75. Planning and Procurement Bureau. The Planning
13and Procurement Bureau has the following duties and
14responsibilities:
15    (a) The Planning and Procurement Bureau shall each year,
16beginning in 2008, develop procurement plans and conduct
17competitive procurement processes in accordance with the
18requirements of Section 16-111.5 of the Public Utilities Act
19for the eligible retail customers of electric utilities that
20on December 31, 2005 provided electric service to at least
21100,000 customers in Illinois. Beginning with the delivery
22year commencing on June 1, 2017, the Planning and Procurement
23Bureau shall develop plans and processes for the procurement
24of zero emission credits from zero emission facilities in
25accordance with the requirements of subsection (d-5) of this

 

 

SB0529- 19 -LRB102 14240 SPS 19592 b

1Section. The Planning and Procurement Bureau shall also
2develop procurement plans and conduct competitive procurement
3processes in accordance with the requirements of Section
416-111.5 of the Public Utilities Act for the eligible retail
5customers of small multi-jurisdictional electric utilities
6that (i) on December 31, 2005 served less than 100,000
7customers in Illinois and (ii) request a procurement plan for
8their Illinois jurisdictional load. This Section shall not
9apply to a small multi-jurisdictional utility until such time
10as a small multi-jurisdictional utility requests the Agency to
11prepare a procurement plan for their Illinois jurisdictional
12load. For the purposes of this Section, the term "eligible
13retail customers" has the same definition as found in Section
1416-111.5(a) of the Public Utilities Act.
15    Beginning with the plan or plans to be implemented in the
162017 delivery year, the Agency shall no longer include the
17procurement of renewable energy resources in the annual
18procurement plans required by this subsection (a), except as
19provided in subsection (q) of Section 16-111.5 of the Public
20Utilities Act, and shall instead develop a long-term renewable
21resources procurement plan in accordance with subsection (c)
22of this Section and Section 16-111.5 of the Public Utilities
23Act.
24    In accordance with subsection (c-5) of this Section, the
25Planning and Procurement Bureau shall oversee the procurement
26by electric utilities that served more than 300,000 retail

 

 

SB0529- 20 -LRB102 14240 SPS 19592 b

1customers in this State as of January 1, 2019 of renewable
2energy credits from new renewable energy resources to be
3installed, along with energy storage resources, at or adjacent
4to the sites of electric generating facilities that, as of
5January 1, 2019, burned coal as their primary fuel source.
6        (1) The Agency shall each year, beginning in 2008, as
7    needed, issue a request for qualifications for experts or
8    expert consulting firms to develop the procurement plans
9    in accordance with Section 16-111.5 of the Public
10    Utilities Act. In order to qualify an expert or expert
11    consulting firm must have:
12            (A) direct previous experience assembling
13        large-scale power supply plans or portfolios for
14        end-use customers;
15            (B) an advanced degree in economics, mathematics,
16        engineering, risk management, or a related area of
17        study;
18            (C) 10 years of experience in the electricity
19        sector, including managing supply risk;
20            (D) expertise in wholesale electricity market
21        rules, including those established by the Federal
22        Energy Regulatory Commission and regional transmission
23        organizations;
24            (E) expertise in credit protocols and familiarity
25        with contract protocols;
26            (F) adequate resources to perform and fulfill the

 

 

SB0529- 21 -LRB102 14240 SPS 19592 b

1        required functions and responsibilities; and
2            (G) the absence of a conflict of interest and
3        inappropriate bias for or against potential bidders or
4        the affected electric utilities.
5        (2) The Agency shall each year, as needed, issue a
6    request for qualifications for a procurement administrator
7    to conduct the competitive procurement processes in
8    accordance with Section 16-111.5 of the Public Utilities
9    Act. In order to qualify an expert or expert consulting
10    firm must have:
11            (A) direct previous experience administering a
12        large-scale competitive procurement process;
13            (B) an advanced degree in economics, mathematics,
14        engineering, or a related area of study;
15            (C) 10 years of experience in the electricity
16        sector, including risk management experience;
17            (D) expertise in wholesale electricity market
18        rules, including those established by the Federal
19        Energy Regulatory Commission and regional transmission
20        organizations;
21            (E) expertise in credit and contract protocols;
22            (F) adequate resources to perform and fulfill the
23        required functions and responsibilities; and
24            (G) the absence of a conflict of interest and
25        inappropriate bias for or against potential bidders or
26        the affected electric utilities.

 

 

SB0529- 22 -LRB102 14240 SPS 19592 b

1        (3) The Agency shall provide affected utilities and
2    other interested parties with the lists of qualified
3    experts or expert consulting firms identified through the
4    request for qualifications processes that are under
5    consideration to develop the procurement plans and to
6    serve as the procurement administrator. The Agency shall
7    also provide each qualified expert's or expert consulting
8    firm's response to the request for qualifications. All
9    information provided under this subparagraph shall also be
10    provided to the Commission. The Agency may provide by rule
11    for fees associated with supplying the information to
12    utilities and other interested parties. These parties
13    shall, within 5 business days, notify the Agency in
14    writing if they object to any experts or expert consulting
15    firms on the lists. Objections shall be based on:
16            (A) failure to satisfy qualification criteria;
17            (B) identification of a conflict of interest; or
18            (C) evidence of inappropriate bias for or against
19        potential bidders or the affected utilities.
20        The Agency shall remove experts or expert consulting
21    firms from the lists within 10 days if there is a
22    reasonable basis for an objection and provide the updated
23    lists to the affected utilities and other interested
24    parties. If the Agency fails to remove an expert or expert
25    consulting firm from a list, an objecting party may seek
26    review by the Commission within 5 days thereafter by

 

 

SB0529- 23 -LRB102 14240 SPS 19592 b

1    filing a petition, and the Commission shall render a
2    ruling on the petition within 10 days. There is no right of
3    appeal of the Commission's ruling.
4        (4) The Agency shall issue requests for proposals to
5    the qualified experts or expert consulting firms to
6    develop a procurement plan for the affected utilities and
7    to serve as procurement administrator.
8        (5) The Agency shall select an expert or expert
9    consulting firm to develop procurement plans based on the
10    proposals submitted and shall award contracts of up to 5
11    years to those selected.
12        (6) The Agency shall select an expert or expert
13    consulting firm, with approval of the Commission, to serve
14    as procurement administrator based on the proposals
15    submitted. If the Commission rejects, within 5 days, the
16    Agency's selection, the Agency shall submit another
17    recommendation within 3 days based on the proposals
18    submitted. The Agency shall award a 5-year contract to the
19    expert or expert consulting firm so selected with
20    Commission approval.
21    (b) The experts or expert consulting firms retained by the
22Agency shall, as appropriate, prepare procurement plans, and
23conduct a competitive procurement process as prescribed in
24Section 16-111.5 of the Public Utilities Act, to ensure
25adequate, reliable, affordable, efficient, and environmentally
26sustainable electric service at the lowest total cost over

 

 

SB0529- 24 -LRB102 14240 SPS 19592 b

1time, taking into account any benefits of price stability, for
2eligible retail customers of electric utilities that on
3December 31, 2005 provided electric service to at least
4100,000 customers in the State of Illinois, and for eligible
5Illinois retail customers of small multi-jurisdictional
6electric utilities that (i) on December 31, 2005 served less
7than 100,000 customers in Illinois and (ii) request a
8procurement plan for their Illinois jurisdictional load.
9    (c) Renewable portfolio standard.
10        (1)(A) The Agency shall develop a long-term renewable
11    resources procurement plan that shall include procurement
12    programs and competitive procurement events necessary to
13    meet the goals set forth in this subsection (c). The
14    initial long-term renewable resources procurement plan
15    shall be released for comment no later than 160 days after
16    June 1, 2017 (the effective date of Public Act 99-906).
17    The Agency shall review, and may revise on an expedited
18    basis, the long-term renewable resources procurement plan
19    at least every 2 years, which shall be conducted in
20    conjunction with the procurement plan under Section
21    16-111.5 of the Public Utilities Act to the extent
22    practicable to minimize administrative expense. The
23    long-term renewable resources procurement plans shall be
24    subject to review and approval by the Commission under
25    Section 16-111.5 of the Public Utilities Act.
26        (B) Subject to subparagraph (F) of this paragraph (1),

 

 

SB0529- 25 -LRB102 14240 SPS 19592 b

1    the long-term renewable resources procurement plan shall
2    include the goals for procurement of renewable energy
3    credits to meet at least the following overall
4    percentages: 13% by the 2017 delivery year; increasing by
5    at least 1.5% each delivery year thereafter to at least
6    25% by the 2025 delivery year; and continuing at no less
7    than 25% for each delivery year thereafter. In the event
8    of a conflict between these goals and the new wind and new
9    photovoltaic procurement requirements described in items
10    (i) through (iii) of subparagraph (C) of this paragraph
11    (1), the long-term plan shall prioritize compliance with
12    the new wind and new photovoltaic procurement requirements
13    described in items (i) through (iii) of subparagraph (C)
14    of this paragraph (1) over the annual percentage targets
15    described in this subparagraph (B).
16        For the delivery year beginning June 1, 2017, the
17    procurement plan shall include cost-effective renewable
18    energy resources equal to at least 13% of each utility's
19    load for eligible retail customers and 13% of the
20    applicable portion of each utility's load for retail
21    customers who are not eligible retail customers, which
22    applicable portion shall equal 50% of the utility's load
23    for retail customers who are not eligible retail customers
24    on February 28, 2017.
25        For the delivery year beginning June 1, 2018, the
26    procurement plan shall include cost-effective renewable

 

 

SB0529- 26 -LRB102 14240 SPS 19592 b

1    energy resources equal to at least 14.5% of each utility's
2    load for eligible retail customers and 14.5% of the
3    applicable portion of each utility's load for retail
4    customers who are not eligible retail customers, which
5    applicable portion shall equal 75% of the utility's load
6    for retail customers who are not eligible retail customers
7    on February 28, 2017.
8        For the delivery year beginning June 1, 2019, and for
9    each year thereafter, the procurement plans shall include
10    cost-effective renewable energy resources equal to a
11    minimum percentage of each utility's load for all retail
12    customers as follows: 16% by June 1, 2019; increasing by
13    1.5% each year thereafter to 25% by June 1, 2025; and 25%
14    by June 1, 2026 and each year thereafter.
15        For each delivery year, the Agency shall first
16    recognize each utility's obligations for that delivery
17    year under existing contracts. Any renewable energy
18    credits under existing contracts, including renewable
19    energy credits as part of renewable energy resources,
20    shall be used to meet the goals set forth in this
21    subsection (c) for the delivery year.
22        (C) Of the renewable energy credits procured under
23    this subsection (c), at least 75% shall come from wind and
24    photovoltaic projects. The long-term renewable resources
25    procurement plan described in subparagraph (A) of this
26    paragraph (1) shall include the procurement of renewable

 

 

SB0529- 27 -LRB102 14240 SPS 19592 b

1    energy credits in amounts equal to at least the following:
2            (i) By the end of the 2020 delivery year:
3                At least 2,000,000 renewable energy credits
4            for each delivery year shall come from new wind
5            projects; and
6                At least 2,000,000 renewable energy credits
7            for each delivery year shall come from new
8            photovoltaic projects; of that amount, to the
9            extent possible, the Agency shall procure: at
10            least 50% from solar photovoltaic projects using
11            the program outlined in subparagraph (K) of this
12            paragraph (1) from distributed renewable energy
13            generation devices or community renewable
14            generation projects; at least 40% from
15            utility-scale solar projects; at least 2% from
16            brownfield site photovoltaic projects that are not
17            community renewable generation projects; and the
18            remainder shall be determined through the
19            long-term planning process described in
20            subparagraph (A) of this paragraph (1).
21            (ii) By the end of the 2025 delivery year:
22                At least 3,000,000 renewable energy credits
23            for each delivery year shall come from new wind
24            projects; and
25                At least 3,000,000 renewable energy credits
26            for each delivery year shall come from new

 

 

SB0529- 28 -LRB102 14240 SPS 19592 b

1            photovoltaic projects; of that amount, to the
2            extent possible, the Agency shall procure: at
3            least 50% from solar photovoltaic projects using
4            the program outlined in subparagraph (K) of this
5            paragraph (1) from distributed renewable energy
6            devices or community renewable generation
7            projects; at least 40% from utility-scale solar
8            projects; at least 2% from brownfield site
9            photovoltaic projects that are not community
10            renewable generation projects; and the remainder
11            shall be determined through the long-term planning
12            process described in subparagraph (A) of this
13            paragraph (1).
14            (iii) By the end of the 2030 delivery year:
15                At least 4,000,000 renewable energy credits
16            for each delivery year shall come from new wind
17            projects; and
18                At least 4,000,000 renewable energy credits
19            for each delivery year shall come from new
20            photovoltaic projects; of that amount, to the
21            extent possible, the Agency shall procure: at
22            least 50% from solar photovoltaic projects using
23            the program outlined in subparagraph (K) of this
24            paragraph (1) from distributed renewable energy
25            devices or community renewable generation
26            projects; at least 40% from utility-scale solar

 

 

SB0529- 29 -LRB102 14240 SPS 19592 b

1            projects; at least 2% from brownfield site
2            photovoltaic projects that are not community
3            renewable generation projects; and the remainder
4            shall be determined through the long-term planning
5            process described in subparagraph (A) of this
6            paragraph (1).
7            For purposes of this Section:
8                "New wind projects" means wind renewable
9            energy facilities that are energized after June 1,
10            2017 for the delivery year commencing June 1, 2017
11            or within 3 years after the date the Commission
12            approves contracts for subsequent delivery years.
13                "New photovoltaic projects" means photovoltaic
14            renewable energy facilities that are energized
15            after June 1, 2017. Photovoltaic projects
16            developed under Section 1-56 of this Act shall not
17            apply towards the new photovoltaic project
18            requirements in this subparagraph (C).
19        (D) Renewable energy credits shall be cost effective.
20    For purposes of this subsection (c), "cost effective"
21    means that the costs of procuring renewable energy
22    resources do not cause the limit stated in subparagraph
23    (E) of this paragraph (1) to be exceeded and, for
24    renewable energy credits procured through a competitive
25    procurement event, do not exceed benchmarks based on
26    market prices for like products in the region. For

 

 

SB0529- 30 -LRB102 14240 SPS 19592 b

1    purposes of this subsection (c), "like products" means
2    contracts for renewable energy credits from the same or
3    substantially similar technology, same or substantially
4    similar vintage (new or existing), the same or
5    substantially similar quantity, and the same or
6    substantially similar contract length and structure.
7    Benchmarks shall be developed by the procurement
8    administrator, in consultation with the Commission staff,
9    Agency staff, and the procurement monitor and shall be
10    subject to Commission review and approval. If price
11    benchmarks for like products in the region are not
12    available, the procurement administrator shall establish
13    price benchmarks based on publicly available data on
14    regional technology costs and expected current and future
15    regional energy prices. The benchmarks in this Section
16    shall not be used to curtail or otherwise reduce
17    contractual obligations entered into by or through the
18    Agency prior to June 1, 2017 (the effective date of Public
19    Act 99-906).
20        (E) For purposes of this subsection (c), the required
21    procurement of cost-effective renewable energy resources
22    for a particular year commencing prior to June 1, 2017
23    shall be measured as a percentage of the actual amount of
24    electricity (megawatt-hours) supplied by the electric
25    utility to eligible retail customers in the delivery year
26    ending immediately prior to the procurement, and, for

 

 

SB0529- 31 -LRB102 14240 SPS 19592 b

1    delivery years commencing on and after June 1, 2017, the
2    required procurement of cost-effective renewable energy
3    resources for a particular year shall be measured as a
4    percentage of the actual amount of electricity
5    (megawatt-hours) delivered by the electric utility in the
6    delivery year ending immediately prior to the procurement,
7    to all retail customers in its service territory. For
8    purposes of this subsection (c), the amount paid per
9    kilowatthour means the total amount paid for electric
10    service expressed on a per kilowatthour basis. For
11    purposes of this subsection (c), the total amount paid for
12    electric service includes without limitation amounts paid
13    for supply, transmission, distribution, surcharges, and
14    add-on taxes.
15        Notwithstanding the requirements of this subsection
16    (c), the total of renewable energy resources procured
17    under the procurement plan for any single year shall be
18    subject to the limitations of this subparagraph (E). Such
19    procurement shall be reduced for all retail customers
20    based on the amount necessary to limit the annual
21    estimated average net increase due to the costs of these
22    resources included in the amounts paid by eligible retail
23    customers in connection with electric service to no more
24    than the greater of 2.015% of the amount paid per
25    kilowatthour by those customers during the year ending May
26    31, 2007 or the incremental amount per kilowatthour paid

 

 

SB0529- 32 -LRB102 14240 SPS 19592 b

1    for these resources in 2011. To arrive at a maximum dollar
2    amount of renewable energy resources to be procured for
3    the particular delivery year, the resulting per
4    kilowatthour amount shall be applied to the actual amount
5    of kilowatthours of electricity delivered, or applicable
6    portion of such amount as specified in paragraph (1) of
7    this subsection (c), as applicable, by the electric
8    utility in the delivery year immediately prior to the
9    procurement to all retail customers in its service
10    territory. The calculations required by this subparagraph
11    (E) shall be made only once for each delivery year at the
12    time that the renewable energy resources are procured.
13    Once the determination as to the amount of renewable
14    energy resources to procure is made based on the
15    calculations set forth in this subparagraph (E) and the
16    contracts procuring those amounts are executed, no
17    subsequent rate impact determinations shall be made and no
18    adjustments to those contract amounts shall be allowed.
19    All costs incurred under such contracts shall be fully
20    recoverable by the electric utility as provided in this
21    Section.
22        (F) If the limitation on the amount of renewable
23    energy resources procured in subparagraph (E) of this
24    paragraph (1) prevents the Agency from meeting all of the
25    goals in this subsection (c), the Agency's long-term plan
26    shall prioritize compliance with the requirements of this

 

 

SB0529- 33 -LRB102 14240 SPS 19592 b

1    subsection (c) regarding renewable energy credits in the
2    following order:
3            (i) renewable energy credits under existing
4        contractual obligations;
5            (i-5) funding for the Illinois Solar for All
6        Program, as described in subparagraph (O) of this
7        paragraph (1);
8            (ii) renewable energy credits necessary to comply
9        with the new wind and new photovoltaic procurement
10        requirements described in items (i) through (iii) of
11        subparagraph (C) of this paragraph (1); and
12            (iii) renewable energy credits necessary to meet
13        the remaining requirements of this subsection (c).
14        (G) The following provisions shall apply to the
15    Agency's procurement of renewable energy credits under
16    this subsection (c):
17            (i) Notwithstanding whether a long-term renewable
18        resources procurement plan has been approved, the
19        Agency shall conduct an initial forward procurement
20        for renewable energy credits from new utility-scale
21        wind projects within 160 days after June 1, 2017 (the
22        effective date of Public Act 99-906). For the purposes
23        of this initial forward procurement, the Agency shall
24        solicit 15-year contracts for delivery of 1,000,000
25        renewable energy credits delivered annually from new
26        utility-scale wind projects to begin delivery on June

 

 

SB0529- 34 -LRB102 14240 SPS 19592 b

1        1, 2019, if available, but not later than June 1, 2021,
2        unless the project has delays in the establishment of
3        an operating interconnection with the applicable
4        transmission or distribution system as a result of the
5        actions or inactions of the transmission or
6        distribution provider, or other causes for force
7        majeure as outlined in the procurement contract, in
8        which case, not later than June 1, 2022. Payments to
9        suppliers of renewable energy credits shall commence
10        upon delivery. Renewable energy credits procured under
11        this initial procurement shall be included in the
12        Agency's long-term plan and shall apply to all
13        renewable energy goals in this subsection (c).
14            (ii) Notwithstanding whether a long-term renewable
15        resources procurement plan has been approved, the
16        Agency shall conduct an initial forward procurement
17        for renewable energy credits from new utility-scale
18        solar projects and brownfield site photovoltaic
19        projects within one year after June 1, 2017 (the
20        effective date of Public Act 99-906). For the purposes
21        of this initial forward procurement, the Agency shall
22        solicit 15-year contracts for delivery of 1,000,000
23        renewable energy credits delivered annually from new
24        utility-scale solar projects and brownfield site
25        photovoltaic projects to begin delivery on June 1,
26        2019, if available, but not later than June 1, 2021,

 

 

SB0529- 35 -LRB102 14240 SPS 19592 b

1        unless the project has delays in the establishment of
2        an operating interconnection with the applicable
3        transmission or distribution system as a result of the
4        actions or inactions of the transmission or
5        distribution provider, or other causes for force
6        majeure as outlined in the procurement contract, in
7        which case, not later than June 1, 2022. The Agency may
8        structure this initial procurement in one or more
9        discrete procurement events. Payments to suppliers of
10        renewable energy credits shall commence upon delivery.
11        Renewable energy credits procured under this initial
12        procurement shall be included in the Agency's
13        long-term plan and shall apply to all renewable energy
14        goals in this subsection (c).
15            (iii) Subsequent forward procurements for
16        utility-scale wind projects shall solicit at least
17        1,000,000 renewable energy credits delivered annually
18        per procurement event and shall be planned, scheduled,
19        and designed such that the cumulative amount of
20        renewable energy credits delivered from all new wind
21        projects in each delivery year shall not exceed the
22        Agency's projection of the cumulative amount of
23        renewable energy credits that will be delivered from
24        all new photovoltaic projects, including utility-scale
25        and distributed photovoltaic devices, in the same
26        delivery year at the time scheduled for wind contract

 

 

SB0529- 36 -LRB102 14240 SPS 19592 b

1        delivery.
2            (iv) If, at any time after the time set for
3        delivery of renewable energy credits pursuant to the
4        initial procurements in items (i) and (ii) of this
5        subparagraph (G), the cumulative amount of renewable
6        energy credits projected to be delivered from all new
7        wind projects in a given delivery year exceeds the
8        cumulative amount of renewable energy credits
9        projected to be delivered from all new photovoltaic
10        projects in that delivery year by 200,000 or more
11        renewable energy credits, then the Agency shall within
12        60 days adjust the procurement programs in the
13        long-term renewable resources procurement plan to
14        ensure that the projected cumulative amount of
15        renewable energy credits to be delivered from all new
16        wind projects does not exceed the projected cumulative
17        amount of renewable energy credits to be delivered
18        from all new photovoltaic projects by 200,000 or more
19        renewable energy credits, provided that nothing in
20        this Section shall preclude the projected cumulative
21        amount of renewable energy credits to be delivered
22        from all new photovoltaic projects from exceeding the
23        projected cumulative amount of renewable energy
24        credits to be delivered from all new wind projects in
25        each delivery year and provided further that nothing
26        in this item (iv) shall require the curtailment of an

 

 

SB0529- 37 -LRB102 14240 SPS 19592 b

1        executed contract. The Agency shall update, on a
2        quarterly basis, its projection of the renewable
3        energy credits to be delivered from all projects in
4        each delivery year. Notwithstanding anything to the
5        contrary, the Agency may adjust the timing of
6        procurement events conducted under this subparagraph
7        (G). The long-term renewable resources procurement
8        plan shall set forth the process by which the
9        adjustments may be made.
10            (v) All procurements under this subparagraph (G)
11        shall comply with the geographic requirements in
12        subparagraph (I) of this paragraph (1) and shall
13        follow the procurement processes and procedures
14        described in this Section and Section 16-111.5 of the
15        Public Utilities Act to the extent practicable, and
16        these processes and procedures may be expedited to
17        accommodate the schedule established by this
18        subparagraph (G).
19        (H) The procurement of renewable energy resources for
20    a given delivery year shall be reduced as described in
21    this subparagraph (H) if an alternative retail electric
22    supplier meets the requirements described in this
23    subparagraph (H).
24            (i) Within 45 days after June 1, 2017 (the
25        effective date of Public Act 99-906), an alternative
26        retail electric supplier or its successor shall submit

 

 

SB0529- 38 -LRB102 14240 SPS 19592 b

1        an informational filing to the Illinois Commerce
2        Commission certifying that, as of December 31, 2015,
3        the alternative retail electric supplier owned one or
4        more electric generating facilities that generates
5        renewable energy resources as defined in Section 1-10
6        of this Act, provided that such facilities are not
7        powered by wind or photovoltaics, and the facilities
8        generate one renewable energy credit for each
9        megawatthour of energy produced from the facility.
10            The informational filing shall identify each
11        facility that was eligible to satisfy the alternative
12        retail electric supplier's obligations under Section
13        16-115D of the Public Utilities Act as described in
14        this item (i).
15            (ii) For a given delivery year, the alternative
16        retail electric supplier may elect to supply its
17        retail customers with renewable energy credits from
18        the facility or facilities described in item (i) of
19        this subparagraph (H) that continue to be owned by the
20        alternative retail electric supplier.
21            (iii) The alternative retail electric supplier
22        shall notify the Agency and the applicable utility, no
23        later than February 28 of the year preceding the
24        applicable delivery year or 15 days after June 1, 2017
25        (the effective date of Public Act 99-906), whichever
26        is later, of its election under item (ii) of this

 

 

SB0529- 39 -LRB102 14240 SPS 19592 b

1        subparagraph (H) to supply renewable energy credits to
2        retail customers of the utility. Such election shall
3        identify the amount of renewable energy credits to be
4        supplied by the alternative retail electric supplier
5        to the utility's retail customers and the source of
6        the renewable energy credits identified in the
7        informational filing as described in item (i) of this
8        subparagraph (H), subject to the following
9        limitations:
10                For the delivery year beginning June 1, 2018,
11            the maximum amount of renewable energy credits to
12            be supplied by an alternative retail electric
13            supplier under this subparagraph (H) shall be 68%
14            multiplied by 25% multiplied by 14.5% multiplied
15            by the amount of metered electricity
16            (megawatt-hours) delivered by the alternative
17            retail electric supplier to Illinois retail
18            customers during the delivery year ending May 31,
19            2016.
20                For delivery years beginning June 1, 2019 and
21            each year thereafter, the maximum amount of
22            renewable energy credits to be supplied by an
23            alternative retail electric supplier under this
24            subparagraph (H) shall be 68% multiplied by 50%
25            multiplied by 16% multiplied by the amount of
26            metered electricity (megawatt-hours) delivered by

 

 

SB0529- 40 -LRB102 14240 SPS 19592 b

1            the alternative retail electric supplier to
2            Illinois retail customers during the delivery year
3            ending May 31, 2016, provided that the 16% value
4            shall increase by 1.5% each delivery year
5            thereafter to 25% by the delivery year beginning
6            June 1, 2025, and thereafter the 25% value shall
7            apply to each delivery year.
8            For each delivery year, the total amount of
9        renewable energy credits supplied by all alternative
10        retail electric suppliers under this subparagraph (H)
11        shall not exceed 9% of the Illinois target renewable
12        energy credit quantity. The Illinois target renewable
13        energy credit quantity for the delivery year beginning
14        June 1, 2018 is 14.5% multiplied by the total amount of
15        metered electricity (megawatt-hours) delivered in the
16        delivery year immediately preceding that delivery
17        year, provided that the 14.5% shall increase by 1.5%
18        each delivery year thereafter to 25% by the delivery
19        year beginning June 1, 2025, and thereafter the 25%
20        value shall apply to each delivery year.
21            If the requirements set forth in items (i) through
22        (iii) of this subparagraph (H) are met, the charges
23        that would otherwise be applicable to the retail
24        customers of the alternative retail electric supplier
25        under paragraph (6) of this subsection (c) for the
26        applicable delivery year shall be reduced by the ratio

 

 

SB0529- 41 -LRB102 14240 SPS 19592 b

1        of the quantity of renewable energy credits supplied
2        by the alternative retail electric supplier compared
3        to that supplier's target renewable energy credit
4        quantity. The supplier's target renewable energy
5        credit quantity for the delivery year beginning June
6        1, 2018 is 14.5% multiplied by the total amount of
7        metered electricity (megawatt-hours) delivered by the
8        alternative retail supplier in that delivery year,
9        provided that the 14.5% shall increase by 1.5% each
10        delivery year thereafter to 25% by the delivery year
11        beginning June 1, 2025, and thereafter the 25% value
12        shall apply to each delivery year.
13            On or before April 1 of each year, the Agency shall
14        annually publish a report on its website that
15        identifies the aggregate amount of renewable energy
16        credits supplied by alternative retail electric
17        suppliers under this subparagraph (H).
18        (I) The Agency shall design its long-term renewable
19    energy procurement plan to maximize the State's interest
20    in the health, safety, and welfare of its residents,
21    including but not limited to minimizing sulfur dioxide,
22    nitrogen oxide, particulate matter and other pollution
23    that adversely affects public health in this State,
24    increasing fuel and resource diversity in this State,
25    enhancing the reliability and resiliency of the
26    electricity distribution system in this State, meeting

 

 

SB0529- 42 -LRB102 14240 SPS 19592 b

1    goals to limit carbon dioxide emissions under federal or
2    State law, and contributing to a cleaner and healthier
3    environment for the citizens of this State. In order to
4    further these legislative purposes, renewable energy
5    credits shall be eligible to be counted toward the
6    renewable energy requirements of this subsection (c) if
7    they are generated from facilities located in this State.
8    The Agency may qualify renewable energy credits from
9    facilities located in states adjacent to Illinois if the
10    generator demonstrates and the Agency determines that the
11    operation of such facility or facilities will help promote
12    the State's interest in the health, safety, and welfare of
13    its residents based on the public interest criteria
14    described above. To ensure that the public interest
15    criteria are applied to the procurement and given full
16    effect, the Agency's long-term procurement plan shall
17    describe in detail how each public interest factor shall
18    be considered and weighted for facilities located in
19    states adjacent to Illinois.
20        (J) In order to promote the competitive development of
21    renewable energy resources in furtherance of the State's
22    interest in the health, safety, and welfare of its
23    residents, renewable energy credits shall not be eligible
24    to be counted toward the renewable energy requirements of
25    this subsection (c) if they are sourced from a generating
26    unit whose costs were being recovered through rates

 

 

SB0529- 43 -LRB102 14240 SPS 19592 b

1    regulated by this State or any other state or states on or
2    after January 1, 2017. Each contract executed to purchase
3    renewable energy credits under this subsection (c) shall
4    provide for the contract's termination if the costs of the
5    generating unit supplying the renewable energy credits
6    subsequently begin to be recovered through rates regulated
7    by this State or any other state or states; and each
8    contract shall further provide that, in that event, the
9    supplier of the credits must return 110% of all payments
10    received under the contract. Amounts returned under the
11    requirements of this subparagraph (J) shall be retained by
12    the utility and all of these amounts shall be used for the
13    procurement of additional renewable energy credits from
14    new wind or new photovoltaic resources as defined in this
15    subsection (c). The long-term plan shall provide that
16    these renewable energy credits shall be procured in the
17    next procurement event.
18        Notwithstanding the limitations of this subparagraph
19    (J), renewable energy credits sourced from generating
20    units that are constructed, purchased, owned, or leased by
21    an electric utility as part of an approved project,
22    program, or pilot under Section 1-56 of this Act shall be
23    eligible to be counted toward the renewable energy
24    requirements of this subsection (c), regardless of how the
25    costs of these units are recovered.
26        (K) The long-term renewable resources procurement plan

 

 

SB0529- 44 -LRB102 14240 SPS 19592 b

1    developed by the Agency in accordance with subparagraph
2    (A) of this paragraph (1) shall include an Adjustable
3    Block program for the procurement of renewable energy
4    credits from new photovoltaic projects that are
5    distributed renewable energy generation devices or new
6    photovoltaic community renewable generation projects. The
7    Adjustable Block program shall be designed to provide a
8    transparent schedule of prices and quantities to enable
9    the photovoltaic market to scale up and for renewable
10    energy credit prices to adjust at a predictable rate over
11    time. The prices set by the Adjustable Block program can
12    be reflected as a set value or as the product of a formula.
13        The Adjustable Block program shall include for each
14    category of eligible projects: a schedule of standard
15    block purchase prices to be offered; a series of steps,
16    with associated nameplate capacity and purchase prices
17    that adjust from step to step; and automatic opening of
18    the next step as soon as the nameplate capacity and
19    available purchase prices for an open step are fully
20    committed or reserved. Only projects energized on or after
21    June 1, 2017 shall be eligible for the Adjustable Block
22    program. For each block group the Agency shall determine
23    the number of blocks, the amount of generation capacity in
24    each block, and the purchase price for each block,
25    provided that the purchase price provided and the total
26    amount of generation in all blocks for all block groups

 

 

SB0529- 45 -LRB102 14240 SPS 19592 b

1    shall be sufficient to meet the goals in this subsection
2    (c). The Agency may periodically review its prior
3    decisions establishing the number of blocks, the amount of
4    generation capacity in each block, and the purchase price
5    for each block, and may propose, on an expedited basis,
6    changes to these previously set values, including but not
7    limited to redistributing these amounts and the available
8    funds as necessary and appropriate, subject to Commission
9    approval as part of the periodic plan revision process
10    described in Section 16-111.5 of the Public Utilities Act.
11    The Agency may define different block sizes, purchase
12    prices, or other distinct terms and conditions for
13    projects located in different utility service territories
14    if the Agency deems it necessary to meet the goals in this
15    subsection (c).
16        The Adjustable Block program shall include at least
17    the following block groups in at least the following
18    amounts, which may be adjusted upon review by the Agency
19    and approval by the Commission as described in this
20    subparagraph (K):
21            (i) At least 25% from distributed renewable energy
22        generation devices with a nameplate capacity of no
23        more than 10 kilowatts.
24            (ii) At least 25% from distributed renewable
25        energy generation devices with a nameplate capacity of
26        more than 10 kilowatts and no more than 2,000

 

 

SB0529- 46 -LRB102 14240 SPS 19592 b

1        kilowatts. The Agency may create sub-categories within
2        this category to account for the differences between
3        projects for small commercial customers, large
4        commercial customers, and public or non-profit
5        customers.
6            (iii) At least 25% from photovoltaic community
7        renewable generation projects.
8            (iv) The remaining 25% shall be allocated as
9        specified by the Agency in the long-term renewable
10        resources procurement plan.
11        The Adjustable Block program shall be designed to
12    ensure that renewable energy credits are procured from
13    photovoltaic distributed renewable energy generation
14    devices and new photovoltaic community renewable energy
15    generation projects in diverse locations and are not
16    concentrated in a few geographic areas.
17        (L) The procurement of photovoltaic renewable energy
18    credits under items (i) through (iv) of subparagraph (K)
19    of this paragraph (1) shall be subject to the following
20    contract and payment terms:
21            (i) The Agency shall procure contracts of at least
22        15 years in length.
23            (ii) For those renewable energy credits that
24        qualify and are procured under item (i) of
25        subparagraph (K) of this paragraph (1), the renewable
26        energy credit purchase price shall be paid in full by

 

 

SB0529- 47 -LRB102 14240 SPS 19592 b

1        the contracting utilities at the time that the
2        facility producing the renewable energy credits is
3        interconnected at the distribution system level of the
4        utility and energized. The electric utility shall
5        receive and retire all renewable energy credits
6        generated by the project for the first 15 years of
7        operation.
8            (iii) For those renewable energy credits that
9        qualify and are procured under item (ii) and (iii) of
10        subparagraph (K) of this paragraph (1) and any
11        additional categories of distributed generation
12        included in the long-term renewable resources
13        procurement plan and approved by the Commission, 20
14        percent of the renewable energy credit purchase price
15        shall be paid by the contracting utilities at the time
16        that the facility producing the renewable energy
17        credits is interconnected at the distribution system
18        level of the utility and energized. The remaining
19        portion shall be paid ratably over the subsequent
20        4-year period. The electric utility shall receive and
21        retire all renewable energy credits generated by the
22        project for the first 15 years of operation.
23            (iv) Each contract shall include provisions to
24        ensure the delivery of the renewable energy credits
25        for the full term of the contract.
26            (v) The utility shall be the counterparty to the

 

 

SB0529- 48 -LRB102 14240 SPS 19592 b

1        contracts executed under this subparagraph (L) that
2        are approved by the Commission under the process
3        described in Section 16-111.5 of the Public Utilities
4        Act. No contract shall be executed for an amount that
5        is less than one renewable energy credit per year.
6            (vi) If, at any time, approved applications for
7        the Adjustable Block program exceed funds collected by
8        the electric utility or would cause the Agency to
9        exceed the limitation described in subparagraph (E) of
10        this paragraph (1) on the amount of renewable energy
11        resources that may be procured, then the Agency shall
12        consider future uncommitted funds to be reserved for
13        these contracts on a first-come, first-served basis,
14        with the delivery of renewable energy credits required
15        beginning at the time that the reserved funds become
16        available.
17            (vii) Nothing in this Section shall require the
18        utility to advance any payment or pay any amounts that
19        exceed the actual amount of revenues collected by the
20        utility under paragraph (6) of this subsection (c) and
21        subsection (k) of Section 16-108 of the Public
22        Utilities Act, and contracts executed under this
23        Section shall expressly incorporate this limitation.
24        (M) The Agency shall be authorized to retain one or
25    more experts or expert consulting firms to develop,
26    administer, implement, operate, and evaluate the

 

 

SB0529- 49 -LRB102 14240 SPS 19592 b

1    Adjustable Block program described in subparagraph (K) of
2    this paragraph (1), and the Agency shall retain the
3    consultant or consultants in the same manner, to the
4    extent practicable, as the Agency retains others to
5    administer provisions of this Act, including, but not
6    limited to, the procurement administrator. The selection
7    of experts and expert consulting firms and the procurement
8    process described in this subparagraph (M) are exempt from
9    the requirements of Section 20-10 of the Illinois
10    Procurement Code, under Section 20-10 of that Code. The
11    Agency shall strive to minimize administrative expenses in
12    the implementation of the Adjustable Block program.
13        The Agency and its consultant or consultants shall
14    monitor block activity, share program activity with
15    stakeholders and conduct regularly scheduled meetings to
16    discuss program activity and market conditions. If
17    necessary, the Agency may make prospective administrative
18    adjustments to the Adjustable Block program design, such
19    as redistributing available funds or making adjustments to
20    purchase prices as necessary to achieve the goals of this
21    subsection (c). Program modifications to any price,
22    capacity block, or other program element that do not
23    deviate from the Commission's approved value by more than
24    25% shall take effect immediately and are not subject to
25    Commission review and approval. Program modifications to
26    any price, capacity block, or other program element that

 

 

SB0529- 50 -LRB102 14240 SPS 19592 b

1    deviate more than 25% from the Commission's approved value
2    must be approved by the Commission as a long-term plan
3    amendment under Section 16-111.5 of the Public Utilities
4    Act. The Agency shall consider stakeholder feedback when
5    making adjustments to the Adjustable Block design and
6    shall notify stakeholders in advance of any planned
7    changes.
8        (N) The long-term renewable resources procurement plan
9    required by this subsection (c) shall include a community
10    renewable generation program. The Agency shall establish
11    the terms, conditions, and program requirements for
12    community renewable generation projects with a goal to
13    expand renewable energy generating facility access to a
14    broader group of energy consumers, to ensure robust
15    participation opportunities for residential and small
16    commercial customers and those who cannot install
17    renewable energy on their own properties. Any plan
18    approved by the Commission shall allow subscriptions to
19    community renewable generation projects to be portable and
20    transferable. For purposes of this subparagraph (N),
21    "portable" means that subscriptions may be retained by the
22    subscriber even if the subscriber relocates or changes its
23    address within the same utility service territory; and
24    "transferable" means that a subscriber may assign or sell
25    subscriptions to another person within the same utility
26    service territory.

 

 

SB0529- 51 -LRB102 14240 SPS 19592 b

1        Electric utilities shall provide a monetary credit to
2    a subscriber's subsequent bill for service for the
3    proportional output of a community renewable generation
4    project attributable to that subscriber as specified in
5    Section 16-107.5 of the Public Utilities Act.
6        The Agency shall purchase renewable energy credits
7    from subscribed shares of photovoltaic community renewable
8    generation projects through the Adjustable Block program
9    described in subparagraph (K) of this paragraph (1) or
10    through the Illinois Solar for All Program described in
11    Section 1-56 of this Act. The electric utility shall
12    purchase any unsubscribed energy from community renewable
13    generation projects that are Qualifying Facilities ("QF")
14    under the electric utility's tariff for purchasing the
15    output from QFs under Public Utilities Regulatory Policies
16    Act of 1978.
17        The owners of and any subscribers to a community
18    renewable generation project shall not be considered
19    public utilities or alternative retail electricity
20    suppliers under the Public Utilities Act solely as a
21    result of their interest in or subscription to a community
22    renewable generation project and shall not be required to
23    become an alternative retail electric supplier by
24    participating in a community renewable generation project
25    with a public utility.
26        (O) For the delivery year beginning June 1, 2018, the

 

 

SB0529- 52 -LRB102 14240 SPS 19592 b

1    long-term renewable resources procurement plan required by
2    this subsection (c) shall provide for the Agency to
3    procure contracts to continue offering the Illinois Solar
4    for All Program described in subsection (b) of Section
5    1-56 of this Act, and the contracts approved by the
6    Commission shall be executed by the utilities that are
7    subject to this subsection (c). The long-term renewable
8    resources procurement plan shall allocate 5% of the funds
9    available under the plan for the applicable delivery year,
10    or $10,000,000 per delivery year, whichever is greater, to
11    fund the programs, and the plan shall determine the amount
12    of funding to be apportioned to the programs identified in
13    subsection (b) of Section 1-56 of this Act; provided that
14    for the delivery years beginning June 1, 2017, June 1,
15    2021, and June 1, 2025, the long-term renewable resources
16    procurement plan shall allocate 10% of the funds available
17    under the plan for the applicable delivery year, or
18    $20,000,000 per delivery year, whichever is greater, and
19    $10,000,000 of such funds in such year shall be used by an
20    electric utility that serves more than 3,000,000 retail
21    customers in the State to implement a Commission-approved
22    plan under Section 16-108.12 of the Public Utilities Act.
23    In making the determinations required under this
24    subparagraph (O), the Commission shall consider the
25    experience and performance under the programs and any
26    evaluation reports. The Commission shall also provide for

 

 

SB0529- 53 -LRB102 14240 SPS 19592 b

1    an independent evaluation of those programs on a periodic
2    basis that are funded under this subparagraph (O).
3        (2) (Blank).
4        (3) (Blank).
5        (4) The electric utility shall retire all renewable
6    energy credits used to comply with the standard.
7        (5) Beginning with the 2010 delivery year and ending
8    June 1, 2017, an electric utility subject to this
9    subsection (c) shall apply the lesser of the maximum
10    alternative compliance payment rate or the most recent
11    estimated alternative compliance payment rate for its
12    service territory for the corresponding compliance period,
13    established pursuant to subsection (d) of Section 16-115D
14    of the Public Utilities Act to its retail customers that
15    take service pursuant to the electric utility's hourly
16    pricing tariff or tariffs. The electric utility shall
17    retain all amounts collected as a result of the
18    application of the alternative compliance payment rate or
19    rates to such customers, and, beginning in 2011, the
20    utility shall include in the information provided under
21    item (1) of subsection (d) of Section 16-111.5 of the
22    Public Utilities Act the amounts collected under the
23    alternative compliance payment rate or rates for the prior
24    year ending May 31. Notwithstanding any limitation on the
25    procurement of renewable energy resources imposed by item
26    (2) of this subsection (c), the Agency shall increase its

 

 

SB0529- 54 -LRB102 14240 SPS 19592 b

1    spending on the purchase of renewable energy resources to
2    be procured by the electric utility for the next plan year
3    by an amount equal to the amounts collected by the utility
4    under the alternative compliance payment rate or rates in
5    the prior year ending May 31.
6        (6) The electric utility shall be entitled to recover
7    all of its costs associated with the procurement of
8    renewable energy credits under plans approved under this
9    Section and Section 16-111.5 of the Public Utilities Act.
10    These costs shall include associated reasonable expenses
11    for implementing the procurement programs, including, but
12    not limited to, the costs of administering and evaluating
13    the Adjustable Block program, through an automatic
14    adjustment clause tariff in accordance with subsection (k)
15    of Section 16-108 of the Public Utilities Act.
16        (7) Renewable energy credits procured from new
17    photovoltaic projects or new distributed renewable energy
18    generation devices under this Section after June 1, 2017
19    (the effective date of Public Act 99-906) must be procured
20    from devices installed by a qualified person in compliance
21    with the requirements of Section 16-128A of the Public
22    Utilities Act and any rules or regulations adopted
23    thereunder.
24        In meeting the renewable energy requirements of this
25    subsection (c), to the extent feasible and consistent with
26    State and federal law, the renewable energy credit

 

 

SB0529- 55 -LRB102 14240 SPS 19592 b

1    procurements, Adjustable Block solar program, and
2    community renewable generation program shall provide
3    employment opportunities for all segments of the
4    population and workforce, including minority-owned and
5    female-owned business enterprises, and shall not,
6    consistent with State and federal law, discriminate based
7    on race or socioeconomic status.
8    (c-5) Procurement of renewable energy credits from new
9renewable energy resources installed at or adjacent to the
10sites of electric generating facilities that burn or burned
11coal as their primary fuel source.
12        (1) In addition to the procurement of renewable energy
13    credits pursuant to long-term renewable resources
14    procurement plans in accordance with subsection (c) of
15    this Section and Section 16-111.5 of the Public Utilities
16    Act, the Agency shall conduct a procurement event in
17    accordance with this subsection (c-5) for the procurement
18    by electric utilities that served more than 300,000 retail
19    customers in this State as of January 1, 2019 of renewable
20    energy credits from new renewable energy resources to be
21    installed at or adjacent to the sites of electric
22    generating facilities that, as of January 1, 2019, burned
23    coal as their primary fuel source. The renewable energy
24    credits procured pursuant to this subsection (c-5) may be
25    included or counted for purposes of compliance with the
26    amounts of renewable energy credits required to be

 

 

SB0529- 56 -LRB102 14240 SPS 19592 b

1    procured pursuant to subsection (c) of this Section. The
2    procurement of renewable energy credits by electric
3    utilities pursuant to this subsection (c-5) shall be
4    funded solely by revenues collected from the Coal to Solar
5    and Energy Storage Initiative Charge provided for in this
6    subsection (c-5) and subsection (i-5) of Section 16-108 of
7    the Public Utilities Act, shall not be funded by revenues
8    collected through any of the other funding mechanisms
9    provided for in subsection (c) of this Section, shall not
10    be subject to the limitation imposed by subsection (c) on
11    charges to retail customers for costs to procure renewable
12    energy resources pursuant to subsection (c), and shall not
13    be subject to any other requirements or limitations of
14    subsection (c).
15        (2) No later than October 31, 2021, the Agency shall
16    conduct a procurement event to select owners of electric
17    generating facilities meeting the eligibility criteria
18    specified in this subsection (c-5) to enter into long-term
19    contracts to sell renewable energy credits to electric
20    utilities that served more than 300,000 retail customers
21    in this State as of January 1, 2019. The Agency shall
22    establish and announce a time period, which shall begin no
23    later than 30 days prior to the scheduled date for the
24    procurement event, during which applicants may submit
25    applications to be selected as suppliers of renewable
26    energy credits pursuant to this subsection (c-5). The

 

 

SB0529- 57 -LRB102 14240 SPS 19592 b

1    eligibility criteria for selection as a supplier of
2    renewable energy credits pursuant to this subsection (c-5)
3    shall be as follows:
4            (A) The applicant owns an electric generating
5        facility located in this State and south of federal
6        Interstate Highway 80 that (i) as of January 1, 2019,
7        burned coal as its primary fuel to generate
8        electricity and (ii) has, or had prior to retirement,
9        an electric generating capacity of at least 150
10        megawatts. The electric generating facility can be
11        either (i) retired as of October 31, 2021, or (ii)
12        still operating as of October 31, 2021.
13            (B) The applicant is not (i) a public utility as
14        defined in Section 3-105 of the Public Utilities Act,
15        (ii) an electric cooperative as defined in Section
16        3-119 of the Public Utilities Act, or (iii) an entity
17        described in paragraph (1) of subsection (b) of
18        Section 3-105 of the Public Utilities Act, or an
19        association or consortium of or an entity owned by
20        entities described in (ii) or (iii).
21            (C) The applicant proposes and commits to
22        construct and operate, at the site, or on property
23        adjacent to the existing property, of the electric
24        generating facility identified in paragraph (A): (i) a
25        new renewable energy resource of at least 20 megawatts
26        but no more than 100 megawatts of electric generating

 

 

SB0529- 58 -LRB102 14240 SPS 19592 b

1        capacity; and (ii) an energy storage facility to be
2        operated in conjunction with the new renewable energy
3        resource and having a storage capacity of at least 2
4        megawatts and at most 10 megawatts.
5            (D) The applicant agrees that the new renewable
6        energy resource and the energy storage facility will
7        be constructed or installed by a qualified entity or
8        entities in compliance with the requirements of
9        subsection (g) of Section 16-128A of the Public
10        Utilities Act and any rules adopted thereunder.
11            (E) The applicant agrees that the personnel
12        operating the new renewable energy resource and the
13        energy storage facility will have the requisite
14        skills, knowledge, training, experience, and
15        competence, which may be demonstrated by completion or
16        current participation and ultimate completion by
17        employees of an accredited or otherwise recognized
18        apprenticeship program for the employee's particular
19        craft, trade, or skill, including through training and
20        education courses and opportunities offered by the
21        applicant to employees of the coal-fueled electric
22        generating facilities being retired, or by previous
23        employment experience performing the employee's
24        particular work skill or function.
25            (F) The applicant commits to enter into a contract
26        or contracts of 15 years duration to provide a

 

 

SB0529- 59 -LRB102 14240 SPS 19592 b

1        specified number of renewable energy credits to
2        electric utilities that served more than 300,000
3        retail customers in this State as of January 1, 2019 at
4        a price of $35 per renewable energy credit.
5            (G) The applicant's application is certified by an
6        officer of the applicant and by an officer of the
7        applicant's ultimate parent company, if any.
8        (3) An applicant may submit applications to contract
9    to supply renewable energy credits from more than one new
10    renewable energy resource to be constructed at or adjacent
11    to more than one qualifying electric generating facility
12    site owned by the applicant. The Agency may select new
13    renewable energy resources to be located at or adjacent to
14    the sites of more than one qualifying electric generating
15    facility owned by an applicant to contract with electric
16    utilities to supply renewable energy credits from such
17    facilities.
18        (4) The Agency shall assess fees to each applicant to
19    recover the Agency's costs incurred in receiving and
20    evaluating applications, conducting the procurement event,
21    developing contracts for sale, delivery, and purchase of
22    renewable energy credits, and monitoring the
23    administration of such contracts, as provided for in this
24    subsection (c-5), including fees paid to a procurement
25    administrator retained by the Agency for one or more of
26    these purposes.

 

 

SB0529- 60 -LRB102 14240 SPS 19592 b

1        (5) The Agency shall select the applicants and the new
2    renewable energy resources to contract with electric
3    utilities to supply renewable energy credits in accordance
4    with this subsection (c-5). The Agency shall select
5    applicants and new renewable energy resources to supply
6    renewable energy credits aggregating to no less than
7    400,000 renewable energy credits per year for 15 years,
8    assuming sufficient qualifying applications to supply at
9    least that amount of renewable energy credits per year;
10    and no more than 600,000 renewable energy credits per year
11    for 15 years. The obligation to purchase renewable energy
12    credits from the applicants and their new renewable energy
13    resources selected by the Agency shall be allocated to
14    electric utilities as follows: (i) electric utilities
15    serving more than 1,000,000 retail customers in this State
16    shall be required to contract to purchase 70%, and
17    electric utilities serving more than 300,000 but less than
18    1,000,000 retail customers in this State shall be required
19    to contract to purchase 30 %, of the renewable energy
20    credits from the applicants and the new renewable energy
21    resources selected by the Agency. In order to achieve
22    these allocation percentages between or among the electric
23    utilities, the Agency may require an applicant to enter
24    into contracts with more than one electric utility for the
25    sale and purchase of renewable energy credits from a new
26    renewable energy resource to be constructed and operated

 

 

SB0529- 61 -LRB102 14240 SPS 19592 b

1    by the applicant, with the sale and purchase obligations
2    under the contracts to aggregate to the total number of
3    renewable energy credits per year to be supplied by the
4    applicant from such new renewable energy resource. The
5    Agency shall submit its proposed selection of applicants,
6    new renewable energy resources to be constructed, and
7    renewable energy credit amounts, to the Commission for
8    approval. The Commission shall, within 2 business days
9    after receipt of the Agency's proposed selections, approve
10    the proposed selections if it determines that the
11    applicants and the new renewable energy resources to be
12    constructed meet the selection criteria set forth in this
13    subsection (c-5) and that the Agency proposes to select
14    applicants for contracts aggregating to no more than
15    600,000 renewable energy credits per year for 15 years.
16        (6) The Agency, in conjunction with its procurement
17    administrator if one is retained, the electric utilities,
18    and potential applicants for contracts to produce and
19    supply renewable energy credits pursuant to this
20    subsection (c-5) shall develop a standard form contract
21    for the sale, delivery and purchase of renewable energy
22    credits pursuant to this subsection (c-5). The contracts
23    shall provide for commercial operation dates for the new
24    renewable energy resources such that (i) the new renewable
25    energy resources from which approximately 50% of the
26    renewable energy credits are contracted will be required

 

 

SB0529- 62 -LRB102 14240 SPS 19592 b

1    to achieve commercial operation by June 1, 2023, and will
2    receive payments for renewable energy credits for the
3    15-year period beginning June 1, 2023, and (ii) the new
4    renewable energy resources from which the remainder of the
5    renewable energy credits are contracted will be required
6    to achieve commercial operation by June 1, 2024, and will
7    receive payments for renewable energy credits for the
8    15-year period beginning June 1, 2024, with such dates
9    subject to adjustment as provided in the this paragraph.
10    The form contract shall provide for adjustments to the
11    commercial operation and payment start dates as needed due
12    to any delays in completing the procurement and
13    contracting processes, in finalizing interconnection
14    agreements and installing interconnection facilities, and
15    in obtaining other necessary governmental permits and
16    approvals. The form contract shall be, to the maximum
17    extent possible, consistent with standard electric
18    industry contracts for sale, delivery, and purchase of
19    renewable energy credits while taking into account the
20    specific requirements of this subsection (c-5). The form
21    contract shall provide for over-delivery and
22    under-delivery of renewable energy credits within
23    reasonable ranges during each 12-month period and penalty,
24    default, and enforcement provisions for failure of the
25    selling party to deliver renewable energy credits as
26    specified in the contract and to comply with the

 

 

SB0529- 63 -LRB102 14240 SPS 19592 b

1    requirements of this subsection (c-5). The standard form
2    contract shall specify that all renewable energy credits
3    delivered to the electric utility pursuant to the contract
4    shall be retired. The Agency shall make the proposed
5    contracts available for a reasonable period for comment by
6    potential applicants, and shall publish the final form
7    contract at least 30 days before the date of the
8    procurement event.
9        (7) Coal to Solar and Energy Storage Initiative
10    Charge.
11            (A) Within 30 days following the effective date of
12        this amendatory Act of the 102nd General Assembly,
13        each electric utility that served more than 300,000
14        retail customers in this State as of January 1, 2019
15        shall file a tariff for the billing and collection of a
16        Coal to Solar and Energy Storage Initiative Charge in
17        accordance with subsection (i-5) of Section 16-108 of
18        the Public Utilities Act. The electric utility's
19        tariff shall provide for the billing and collection of
20        the Coal to Solar and Energy Storage Initiative Charge
21        on each kilowatthour of electricity delivered to its
22        delivery services customers within its service
23        territory of (i) 0.072 cents per kilowatthour from the
24        effective date of the tariff through December 31,
25        2024, (ii) 0.055 cents per kilowatthour from January
26        1, 2025 through December 31, 2025, (iii) 0.030 cents

 

 

SB0529- 64 -LRB102 14240 SPS 19592 b

1        per kilowatthour from January 1, 2026 through December
2        31, 2033, (iv) 0.024 cents per kilowatthour from
3        January 1, 2034 through December 31, 2034, (v) 0.018
4        cents per kilowatthour from January 1, 2035 through
5        December 31, 2037, and (vi) 0.009 cents per
6        kilowatthour from January 1, 2038 through December 31
7        of the year in which the last renewable energy credit
8        sale and purchase contract entered into pursuant to
9        this subsection (c-5) terminates.
10            (B) Each electric utility shall remit, on a
11        monthly basis, to the State Treasurer for deposit into
12        the Coal to Solar and Energy Storage Incentive and
13        Plant Transition Fund provided for in this subsection
14        (c-5), 100% of its collections of the Coal to Solar and
15        Energy Storage Initiative Charge, less, beginning
16        March 1, 2023, sufficient funds for the electric
17        utility to make its estimated next 3 monthly payments
18        for renewable energy credits pursuant to contracts
19        entered into pursuant to this subsection (c-5).
20        Provided, that if as of May 31 of any year beginning
21        January 1, 2025 or thereafter, an electric utility
22        holds Coal to Solar and Energy Storage Initiative
23        Charge collections greater than 110% of its projected
24        payment obligations under such contracts for the
25        following 6 months, the electric utility shall refund
26        one-half of such excess collections to its delivery

 

 

SB0529- 65 -LRB102 14240 SPS 19592 b

1        services customers on a uniform cents per kilowatthour
2        basis over a 6-month period, in accordance with a
3        procedure specified in its Coal to Solar and Energy
4        Storage Initiative Charge tariff.
5        (8) Coal to Solar and Energy Storage Incentive and
6    Plant Transition Fund.
7            (A) The Coal to Solar and Energy Storage Incentive
8        and Plant Transition Fund is established as a special
9        fund in the State treasury. The Coal to Solar and
10        Energy Storage Incentive and Plant Transition Fund is
11        authorized to receive, by statutory deposit, that
12        portion specified in item (B) of paragraph (7) of this
13        subsection (c-5) of moneys collected by electric
14        utilities through imposition of the Coal to Solar and
15        Energy Storage Initiative Charge required by this
16        subsection (c-5). The Coal to Solar and Energy Storage
17        Incentive and Plant Transition Fund shall be
18        administered by the Illinois Department of Commerce
19        and Economic Opportunity, which shall be referred to
20        in this subsection (c-5) as the Department, to provide
21        transitional support funding to coal-fueled electric
22        generating facilities in this State owned by an
23        applicant, or by a company with a common parent
24        company as an applicant, that has been selected by the
25        Agency to enter into a contract or contracts to sell
26        renewable energy credits from a new renewable energy

 

 

SB0529- 66 -LRB102 14240 SPS 19592 b

1        resource to an electric utility in accordance with
2        this subsection (c-5).
3            (B) The objective of the transitional support
4        funding provided for in this paragraph (8) is to
5        assist and enable qualifying electric generating
6        facilities in this State to remain in operation during
7        the period from the effective date of this amendatory
8        Act of the 102nd General Assembly through May 31,
9        2025, in order to ensure that adequate electric
10        generating resources are available in this State
11        through that date, while the State's portfolio of
12        renewable energy resources is being expanded, and to
13        provide a transition period for the communities in
14        which qualifying electric generating facilities are
15        located prior to the retirement of the qualifying
16        electric generating facilities.
17            (C) The Coal to Solar and Energy Storage Incentive
18        and Plant Transition Fund shall not be subject to
19        sweeps, administrative charges, or chargebacks,
20        including, but not limited to, those authorized under
21        Section 8h of the State Finance Act, that would in any
22        way result in the transfer of those funds from the Coal
23        to Solar and Energy Storage Incentive and Plant
24        Transition Fund to any other fund of this State or in
25        having any such funds used for any purpose other than
26        the express purposes set forth in this paragraph (8)

 

 

SB0529- 67 -LRB102 14240 SPS 19592 b

1        of subsection (c-5).
2            (D) The Department shall provide grants of
3        transitional support funding from the Coal to Solar
4        and Energy Storage Incentive and Plant Transition Fund
5        to owners of qualifying electric generating facilities
6        in this State that meet the criteria specified in this
7        paragraph (8) of subsection (c-5), for the period
8        January 1, 2022 through May 31, 2025, in aggregate
9        amounts not exceeding $75,000,000 in each calendar
10        year 2022 through 2024 and $31,000,000 for the period
11        January 1, 2025 through May 31, 2025, for grants in
12        respect of 2,200 megawatts of electric generating
13        capacity. The amount of transitional support funding
14        granted to the owner of a qualifying electric
15        generating facility for a calendar year shall be equal
16        to the product of (i) $93 less the clearing price per
17        megawatt-day in the Planning Resource Auction of the
18        Midcontinent Independent System Operator, Inc., which
19        shall be referred to in this subparagraph (D) as MISO,
20        held in the preceding calendar year (but not less than
21        $0), times (ii) the megawatts of electric generating
22        capacity of the qualifying electric generating
23        facility, times (iii) 365, which the General Assembly
24        finds is an amount that should enable a qualifying
25        electric generating facility to recover its annual
26        cost of service; provided, (1) that for the period

 

 

SB0529- 68 -LRB102 14240 SPS 19592 b

1        January 1, 2025 through May 31, 2025, the amount of
2        transitional support funding granted to the owner of a
3        qualifying electric generating facility shall be equal
4        to the product of (i) $93 less the clearing price per
5        megawatt-day in the Planning Resource Auction of the
6        MISO held in the preceding calendar year (but not less
7        than $0), times (ii) the megawatts of electric
8        generating capacity of the qualifying electric
9        generating facility, times (iii) 151; and provided
10        further that for each calendar year 2022 through 2024
11        and for the period January 31, 2025 through May 31,
12        2025, the owner may request that a lower number of
13        megawatts than the full rated generating capacity of
14        an electric generating facility be used to calculate
15        the amount of transitional support funding provided to
16        that electric generating facility for such period. For
17        avoidance of doubt and by way of example, if grants of
18        transitional support funding for 2,200 megawatts of
19        electric generating capacity of qualifying electric
20        generating facilities are made for a calendar year and
21        the clearing price in the MISO Planning Resource
22        Auction for the preceding calendar year equaled $50
23        per megawatt-day, the aggregate amount of the grants
24        of transitional support funding for the calendar year
25        would be $34,529,000. If the clearing price in the
26        MISO Planning Resource Auction in the preceding

 

 

SB0529- 69 -LRB102 14240 SPS 19592 b

1        calendar year is equal to or greater than $93 per
2        megawatt-day, no transition support funding shall be
3        paid for the current year.
4            (E) The grant amounts shall be paid to the
5        recipients on a quarterly basis with payments to be
6        made on May 31, August 31, November 30, and February 28
7        for the immediately preceding calendar quarter, with
8        the final payment for the period April 1, 2025 through
9        May 31, 2025, to be made on July 31, 2025, in each case
10        subject to the availability of sufficient funds in the
11        Coal to Solar and Energy Storage Incentive and Plant
12        Transition Fund, with any shortfall in a payment to be
13        added to the payment due for the period immediately
14        following. No grant payments for transitional support
15        funding shall be made to the owner of a qualifying
16        electric generating facility in respect of any period
17        subsequent to the retirement date of the electric
18        generating facility.
19            (F) The qualifications for a grant of transitional
20        support funding from the Coal to Solar and Energy
21        Storage Incentive and Plant Transition Fund for an
22        electric generating facility are as follows: (i) the
23        electric generating facility is located in this State
24        south of federal Interstate Highway 80, but is not
25        directly interconnected to an electric utility located
26        within the PJM Interconnection, LLC independent system

 

 

SB0529- 70 -LRB102 14240 SPS 19592 b

1        operator region; (ii) the electric generating facility
2        has an electric generating capacity of at least 150
3        megawatts; (iii) the electric generating facility
4        burned coal as its primary source of fuel as of January
5        1, 2019; (iv) the electric generating facility either
6        is owned by an applicant that has been selected by the
7        Agency pursuant to this subsection (c-5) to enter into
8        a contract or contracts with one or more electric
9        utilities to deliver renewable energy credits from a
10        new renewable energy resource to be constructed at or
11        adjacent to an existing or retired electric generating
12        facility owned by the applicant, or is owned by a
13        company that has a common parent company with such an
14        applicant and has been designated by the applicant to
15        the Department as a candidate to receive a grant of
16        transitional support funding; and (v) the owner of the
17        electric generating facility commits, as a condition
18        to receiving the grant of transitional support
19        funding, to maintain the electric generating facility
20        in operation until at least May 31, 2025.
21            (G) If a coal-fueled electric generating facility
22        that is awarded a grant of transitional support
23        funding pursuant to this paragraph (8) and therefore
24        is designated pursuant to subparagraph (F) for
25        retirement no earlier than May 31, 2025, is required
26        (i) prior to May 31, 2025, to make capital

 

 

SB0529- 71 -LRB102 14240 SPS 19592 b

1        expenditures of at least $5,000,000 in order to remain
2        in or attain compliance with any environmental law or
3        regulation, (ii) prior to May 31, 2025, to make
4        capital expenditures for purposes other than
5        environmental compliance of at least $5,000,000 that
6        were neither known or reasonably foreseeable as of
7        September 1, 2021, or (iii) prior to May 31, 2025, to
8        retire or cease operations pursuant to an order or
9        approval of a court, regulatory agency, or
10        administrative body, consent decree, administrative
11        compliance order or agreement, or other similar
12        legally enforceable order or agreement, then such
13        coal-fueled electric generating facility may be
14        retired, (1) in the event of (i) or (ii) above, by
15        December 31 of the year prior to the year in which such
16        capital expenditures must be incurred, and (2) in the
17        event of (iii) above, by such date as required
18        pursuant to the applicable order or approval, consent
19        decree, administrative compliance order or agreement,
20        or other similar legally enforceable order or
21        agreement. Additionally, if the owner of the electric
22        generating facility does not receive a full grant
23        payment in accordance with the grant contract for 2
24        consecutive quarters for any reason other than
25        insufficient collections deposited into the Coal to
26        Solar and Energy Storage Incentive and Plant

 

 

SB0529- 72 -LRB102 14240 SPS 19592 b

1        Transition Fund to make the full quarterly grant
2        payment, the owner may forthwith retire the electric
3        generating facility. The owner of any coal-fueled
4        electric generating facility retired pursuant to this
5        paragraph shall receive no further grant payments of
6        transitional support funding in respect of that
7        facility for periods after its retirement date.
8            (H) An owner may receive a grant of transitional
9        support funding from the Coal to Solar and Energy
10        Storage Incentive and Plant Transition Fund for more
11        than one qualifying electric generating facility.
12            (I) The Department shall establish a schedule for
13        receiving and evaluating applications for grants of
14        transitional support funding from the Coal to Solar
15        and Energy Storage Incentive and Plant Transition
16        Fund. The schedule shall be consistent with the
17        schedule established by the Agency for receiving and
18        evaluating applications to be selected to enter into
19        contracts to sell renewable energy credits from new
20        renewable energy resources in accordance with this
21        subsection (c-5). The Department shall announce the
22        qualifying electric generating facilities that will
23        receive grants of transitional funding support from
24        the Coal to Solar and Energy Storage Incentive and
25        Plant Transition Fund no later than November 30, 2021.
26            (J) In addition to the grants for transitional

 

 

SB0529- 73 -LRB102 14240 SPS 19592 b

1        support funding provided for in this paragraph (8),
2        the Department shall utilize up to $150,000,000 in the
3        Coal to Solar and Energy Storage Incentive and Plant
4        Transition Fund for grants, assuming sufficient
5        qualifying applicants, to support installation of
6        energy storage facilities at the sites of up to 5
7        electric generating facilities in Illinois that meet
8        the criteria set forth in this paragraph (J). The
9        criteria for receipt of a grant pursuant to this
10        paragraph (J) are as follows: (1) the site is located
11        south of federal Interstate Highway 80; (2) the
12        electric generating facility has, or had prior to
13        retirement, an electric generating capacity of at
14        least 150 megawatts; (3) the electric generating
15        facility burns (or burned prior to retirement) coal as
16        its primary source of fuel; (4) if the electric
17        generating facility is retired, it was retired
18        subsequent to July 1, 2011; (5) the electric
19        generating facility has not been selected by the
20        Agency pursuant to subsection (c-5) of this Section to
21        enter into a contract to sell renewable energy credits
22        to one or more electric utilities from a new renewable
23        energy resource located or to be located at or
24        adjacent to the site of the electric generating
25        facility; (6) the electric generating facility or the
26        site of the facility is not owned by (i) a public

 

 

SB0529- 74 -LRB102 14240 SPS 19592 b

1        utility as defined in Section 3-105 of the Public
2        Utilities Act, (ii) an electric cooperative as defined
3        in Section 3-119 of the Public Utilities Act, or (iii)
4        an entity described in paragraph (1) of subsection (b)
5        of Section 3-105 of the Public Utilities Act, or an
6        association or consortium of or an entity owned by
7        entities described in (ii) or (iii); (7) the proposed
8        energy storage facility at the site will have energy
9        storage capacity of at least 20 megawatts; (8) the
10        owner commits to place the energy storage facility
11        into commercial operation to begin service either by
12        June 1, 2024 or June 1, 2025, with such dates subject
13        to adjustment as needed due to any delays in
14        completing the grant contracting process, in
15        finalizing interconnection agreements and installing
16        interconnection facilities, and in obtaining necessary
17        governmental permits and approvals; (9) the owner
18        agrees that the new energy storage facility will be
19        constructed or installed by a qualified entity or
20        entities consistent with the requirements of
21        subsection (g) of Section 16-128A of the Public
22        Utilities Act and any rules adopted thereunder; and
23        (10) the owner agrees that personnel operating the
24        energy storage facility will have the requisite
25        skills, knowledge, training, experience, and
26        competence, which may be demonstrated by completion or

 

 

SB0529- 75 -LRB102 14240 SPS 19592 b

1        current participation and ultimate completion by
2        employees of an accredited or otherwise recognized
3        apprenticeship program for the employee's particular
4        craft, trade, or skill, including through training and
5        education courses and opportunities offered by the
6        owner to employees of the coal-fueled generating
7        facility being retired or by previous employment
8        experience performing the employee's particular work
9        skill or function. The Department shall accept
10        applications for this grant program until June 30,
11        2022, and shall announce the award of grants no later
12        than September 30, 2022. The Department shall make the
13        grant payments to a recipient in equal annual amounts
14        for 10 years July 1 next following the date the energy
15        storage facility is placed into commercial operation.
16        The annual grant payments to a qualifying energy
17        storage facility shall be $110,000 per megawatt of
18        energy storage capacity, with total annual grant
19        payments pursuant to this paragraph (J) for qualifying
20        energy storage facilities not to exceed $15,000,000.
21        Any uncommitted portion of the amount of funding set
22        aside by the Department for grants to support
23        installation of energy storage facilities pursuant to
24        this subparagraph (J) shall be used for grants of
25        transitional support funding in accordance with this
26        paragraph (8), to the extent needed.

 

 

SB0529- 76 -LRB102 14240 SPS 19592 b

1            (K) Grants of transitional support funding, and of
2        funding for energy storage facilities pursuant to
3        subparagraph (J) of this paragraph (8), from the Coal
4        to Solar and Energy Storage Incentive and Plant
5        Transition Fund shall be memorialized in grant
6        contracts between the Department and the recipient.
7            (L) All disbursements from the Coal to Solar and
8        Energy Storage Incentive and Plant Transition Fund
9        shall be made only upon warrants of the Comptroller
10        drawn upon the Treasurer as custodian of the Fund upon
11        vouchers signed by the Director of the Department or
12        by the person or persons designated by the Director of
13        the Department for that purpose. The Comptroller is
14        authorized to draw the warrants upon vouchers so
15        signed. The Treasurer shall accept all written
16        warrants so signed and shall be released from
17        liability for all payments made on those warrants.
18            (M) Beginning May 1, 2026, and May 1 of each year
19        thereafter, any amounts in the Coal to Solar and
20        Energy Storage Incentive and Plant Transition Fund
21        that exceed 110% of the amount needed to fund
22        contracted grant payments to support new energy
23        storage facilities pursuant to subparagraph (J) of
24        this paragraph (8) for such year shall be returned by
25        the Department to the electric utilities, in the same
26        proportion as the electric utilities' original

 

 

SB0529- 77 -LRB102 14240 SPS 19592 b

1        remittances for deposits into the Coal to Solar and
2        Energy Storage Incentive and Plant Transition Fund.
3        Each electric utility shall refund any such amounts it
4        receives to its delivery services customers on a
5        uniform cents per kilowatthour basis over a 6-month
6        period in accordance with procedures specified in the
7        electric utility's tariff for billing and collection
8        of the Coal to Solar and Energy Storage Initiative
9        Charge.
10    (d) Clean coal portfolio standard.
11        (1) The procurement plans shall include electricity
12    generated using clean coal. Each utility shall enter into
13    one or more sourcing agreements with the initial clean
14    coal facility, as provided in paragraph (3) of this
15    subsection (d), covering electricity generated by the
16    initial clean coal facility representing at least 5% of
17    each utility's total supply to serve the load of eligible
18    retail customers in 2015 and each year thereafter, as
19    described in paragraph (3) of this subsection (d), subject
20    to the limits specified in paragraph (2) of this
21    subsection (d). It is the goal of the State that by January
22    1, 2025, 25% of the electricity used in the State shall be
23    generated by cost-effective clean coal facilities. For
24    purposes of this subsection (d), "cost-effective" means
25    that the expenditures pursuant to such sourcing agreements
26    do not cause the limit stated in paragraph (2) of this

 

 

SB0529- 78 -LRB102 14240 SPS 19592 b

1    subsection (d) to be exceeded and do not exceed cost-based
2    benchmarks, which shall be developed to assess all
3    expenditures pursuant to such sourcing agreements covering
4    electricity generated by clean coal facilities, other than
5    the initial clean coal facility, by the procurement
6    administrator, in consultation with the Commission staff,
7    Agency staff, and the procurement monitor and shall be
8    subject to Commission review and approval.
9        A utility party to a sourcing agreement shall
10    immediately retire any emission credits that it receives
11    in connection with the electricity covered by such
12    agreement.
13        Utilities shall maintain adequate records documenting
14    the purchases under the sourcing agreement to comply with
15    this subsection (d) and shall file an accounting with the
16    load forecast that must be filed with the Agency by July 15
17    of each year, in accordance with subsection (d) of Section
18    16-111.5 of the Public Utilities Act.
19        A utility shall be deemed to have complied with the
20    clean coal portfolio standard specified in this subsection
21    (d) if the utility enters into a sourcing agreement as
22    required by this subsection (d).
23        (2) For purposes of this subsection (d), the required
24    execution of sourcing agreements with the initial clean
25    coal facility for a particular year shall be measured as a
26    percentage of the actual amount of electricity

 

 

SB0529- 79 -LRB102 14240 SPS 19592 b

1    (megawatt-hours) supplied by the electric utility to
2    eligible retail customers in the planning year ending
3    immediately prior to the agreement's execution. For
4    purposes of this subsection (d), the amount paid per
5    kilowatthour means the total amount paid for electric
6    service expressed on a per kilowatthour basis. For
7    purposes of this subsection (d), the total amount paid for
8    electric service includes without limitation amounts paid
9    for supply, transmission, distribution, surcharges and
10    add-on taxes.
11        Notwithstanding the requirements of this subsection
12    (d), the total amount paid under sourcing agreements with
13    clean coal facilities pursuant to the procurement plan for
14    any given year shall be reduced by an amount necessary to
15    limit the annual estimated average net increase due to the
16    costs of these resources included in the amounts paid by
17    eligible retail customers in connection with electric
18    service to:
19            (A) in 2010, no more than 0.5% of the amount paid
20        per kilowatthour by those customers during the year
21        ending May 31, 2009;
22            (B) in 2011, the greater of an additional 0.5% of
23        the amount paid per kilowatthour by those customers
24        during the year ending May 31, 2010 or 1% of the amount
25        paid per kilowatthour by those customers during the
26        year ending May 31, 2009;

 

 

SB0529- 80 -LRB102 14240 SPS 19592 b

1            (C) in 2012, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2011 or 1.5% of the
4        amount paid per kilowatthour by those customers during
5        the year ending May 31, 2009;
6            (D) in 2013, the greater of an additional 0.5% of
7        the amount paid per kilowatthour by those customers
8        during the year ending May 31, 2012 or 2% of the amount
9        paid per kilowatthour by those customers during the
10        year ending May 31, 2009; and
11            (E) thereafter, the total amount paid under
12        sourcing agreements with clean coal facilities
13        pursuant to the procurement plan for any single year
14        shall be reduced by an amount necessary to limit the
15        estimated average net increase due to the cost of
16        these resources included in the amounts paid by
17        eligible retail customers in connection with electric
18        service to no more than the greater of (i) 2.015% of
19        the amount paid per kilowatthour by those customers
20        during the year ending May 31, 2009 or (ii) the
21        incremental amount per kilowatthour paid for these
22        resources in 2013, in each of cases (i) and (ii)
23        reduced by the amount of the Coal to Solar and Energy
24        Storage Incentive Charges provided for in subsection
25        (c-5) in effect during such year. These requirements
26        may be altered only as provided by statute.

 

 

SB0529- 81 -LRB102 14240 SPS 19592 b

1        No later than June 30, 2015, the Commission shall
2    review the limitation on the total amount paid under
3    sourcing agreements, if any, with clean coal facilities
4    pursuant to this subsection (d) and report to the General
5    Assembly its findings as to whether that limitation unduly
6    constrains the amount of electricity generated by
7    cost-effective clean coal facilities that is covered by
8    sourcing agreements.
9        (3) Initial clean coal facility. In order to promote
10    development of clean coal facilities in Illinois, each
11    electric utility subject to this Section shall execute a
12    sourcing agreement to source electricity from a proposed
13    clean coal facility in Illinois (the "initial clean coal
14    facility") that will have a nameplate capacity of at least
15    500 MW when commercial operation commences, that has a
16    final Clean Air Act permit on June 1, 2009 (the effective
17    date of Public Act 95-1027), and that will meet the
18    definition of clean coal facility in Section 1-10 of this
19    Act when commercial operation commences. The sourcing
20    agreements with this initial clean coal facility shall be
21    subject to both approval of the initial clean coal
22    facility by the General Assembly and satisfaction of the
23    requirements of paragraph (4) of this subsection (d) and
24    shall be executed within 90 days after any such approval
25    by the General Assembly. The Agency and the Commission
26    shall have authority to inspect all books and records

 

 

SB0529- 82 -LRB102 14240 SPS 19592 b

1    associated with the initial clean coal facility during the
2    term of such a sourcing agreement. A utility's sourcing
3    agreement for electricity produced by the initial clean
4    coal facility shall include:
5            (A) a formula contractual price (the "contract
6        price") approved pursuant to paragraph (4) of this
7        subsection (d), which shall:
8                (i) be determined using a cost of service
9            methodology employing either a level or deferred
10            capital recovery component, based on a capital
11            structure consisting of 45% equity and 55% debt,
12            and a return on equity as may be approved by the
13            Federal Energy Regulatory Commission, which in any
14            case may not exceed the lower of 11.5% or the rate
15            of return approved by the General Assembly
16            pursuant to paragraph (4) of this subsection (d);
17            and
18                (ii) provide that all miscellaneous net
19            revenue, including but not limited to net revenue
20            from the sale of emission allowances, if any,
21            substitute natural gas, if any, grants or other
22            support provided by the State of Illinois or the
23            United States Government, firm transmission
24            rights, if any, by-products produced by the
25            facility, energy or capacity derived from the
26            facility and not covered by a sourcing agreement

 

 

SB0529- 83 -LRB102 14240 SPS 19592 b

1            pursuant to paragraph (3) of this subsection (d)
2            or item (5) of subsection (d) of Section 16-115 of
3            the Public Utilities Act, whether generated from
4            the synthesis gas derived from coal, from SNG, or
5            from natural gas, shall be credited against the
6            revenue requirement for this initial clean coal
7            facility;
8            (B) power purchase provisions, which shall:
9                (i) provide that the utility party to such
10            sourcing agreement shall pay the contract price
11            for electricity delivered under such sourcing
12            agreement;
13                (ii) require delivery of electricity to the
14            regional transmission organization market of the
15            utility that is party to such sourcing agreement;
16                (iii) require the utility party to such
17            sourcing agreement to buy from the initial clean
18            coal facility in each hour an amount of energy
19            equal to all clean coal energy made available from
20            the initial clean coal facility during such hour
21            times a fraction, the numerator of which is such
22            utility's retail market sales of electricity
23            (expressed in kilowatthours sold) in the State
24            during the prior calendar month and the
25            denominator of which is the total retail market
26            sales of electricity (expressed in kilowatthours

 

 

SB0529- 84 -LRB102 14240 SPS 19592 b

1            sold) in the State by utilities during such prior
2            month and the sales of electricity (expressed in
3            kilowatthours sold) in the State by alternative
4            retail electric suppliers during such prior month
5            that are subject to the requirements of this
6            subsection (d) and paragraph (5) of subsection (d)
7            of Section 16-115 of the Public Utilities Act,
8            provided that the amount purchased by the utility
9            in any year will be limited by paragraph (2) of
10            this subsection (d); and
11                (iv) be considered pre-existing contracts in
12            such utility's procurement plans for eligible
13            retail customers;
14            (C) contract for differences provisions, which
15        shall:
16                (i) require the utility party to such sourcing
17            agreement to contract with the initial clean coal
18            facility in each hour with respect to an amount of
19            energy equal to all clean coal energy made
20            available from the initial clean coal facility
21            during such hour times a fraction, the numerator
22            of which is such utility's retail market sales of
23            electricity (expressed in kilowatthours sold) in
24            the utility's service territory in the State
25            during the prior calendar month and the
26            denominator of which is the total retail market

 

 

SB0529- 85 -LRB102 14240 SPS 19592 b

1            sales of electricity (expressed in kilowatthours
2            sold) in the State by utilities during such prior
3            month and the sales of electricity (expressed in
4            kilowatthours sold) in the State by alternative
5            retail electric suppliers during such prior month
6            that are subject to the requirements of this
7            subsection (d) and paragraph (5) of subsection (d)
8            of Section 16-115 of the Public Utilities Act,
9            provided that the amount paid by the utility in
10            any year will be limited by paragraph (2) of this
11            subsection (d);
12                (ii) provide that the utility's payment
13            obligation in respect of the quantity of
14            electricity determined pursuant to the preceding
15            clause (i) shall be limited to an amount equal to
16            (1) the difference between the contract price
17            determined pursuant to subparagraph (A) of
18            paragraph (3) of this subsection (d) and the
19            day-ahead price for electricity delivered to the
20            regional transmission organization market of the
21            utility that is party to such sourcing agreement
22            (or any successor delivery point at which such
23            utility's supply obligations are financially
24            settled on an hourly basis) (the "reference
25            price") on the day preceding the day on which the
26            electricity is delivered to the initial clean coal

 

 

SB0529- 86 -LRB102 14240 SPS 19592 b

1            facility busbar, multiplied by (2) the quantity of
2            electricity determined pursuant to the preceding
3            clause (i); and
4                (iii) not require the utility to take physical
5            delivery of the electricity produced by the
6            facility;
7            (D) general provisions, which shall:
8                (i) specify a term of no more than 30 years,
9            commencing on the commercial operation date of the
10            facility;
11                (ii) provide that utilities shall maintain
12            adequate records documenting purchases under the
13            sourcing agreements entered into to comply with
14            this subsection (d) and shall file an accounting
15            with the load forecast that must be filed with the
16            Agency by July 15 of each year, in accordance with
17            subsection (d) of Section 16-111.5 of the Public
18            Utilities Act;
19                (iii) provide that all costs associated with
20            the initial clean coal facility will be
21            periodically reported to the Federal Energy
22            Regulatory Commission and to purchasers in
23            accordance with applicable laws governing
24            cost-based wholesale power contracts;
25                (iv) permit the Illinois Power Agency to
26            assume ownership of the initial clean coal

 

 

SB0529- 87 -LRB102 14240 SPS 19592 b

1            facility, without monetary consideration and
2            otherwise on reasonable terms acceptable to the
3            Agency, if the Agency so requests no less than 3
4            years prior to the end of the stated contract
5            term;
6                (v) require the owner of the initial clean
7            coal facility to provide documentation to the
8            Commission each year, starting in the facility's
9            first year of commercial operation, accurately
10            reporting the quantity of carbon emissions from
11            the facility that have been captured and
12            sequestered and report any quantities of carbon
13            released from the site or sites at which carbon
14            emissions were sequestered in prior years, based
15            on continuous monitoring of such sites. If, in any
16            year after the first year of commercial operation,
17            the owner of the facility fails to demonstrate
18            that the initial clean coal facility captured and
19            sequestered at least 50% of the total carbon
20            emissions that the facility would otherwise emit
21            or that sequestration of emissions from prior
22            years has failed, resulting in the release of
23            carbon dioxide into the atmosphere, the owner of
24            the facility must offset excess emissions. Any
25            such carbon offsets must be permanent, additional,
26            verifiable, real, located within the State of

 

 

SB0529- 88 -LRB102 14240 SPS 19592 b

1            Illinois, and legally and practicably enforceable.
2            The cost of such offsets for the facility that are
3            not recoverable shall not exceed $15 million in
4            any given year. No costs of any such purchases of
5            carbon offsets may be recovered from a utility or
6            its customers. All carbon offsets purchased for
7            this purpose and any carbon emission credits
8            associated with sequestration of carbon from the
9            facility must be permanently retired. The initial
10            clean coal facility shall not forfeit its
11            designation as a clean coal facility if the
12            facility fails to fully comply with the applicable
13            carbon sequestration requirements in any given
14            year, provided the requisite offsets are
15            purchased. However, the Attorney General, on
16            behalf of the People of the State of Illinois, may
17            specifically enforce the facility's sequestration
18            requirement and the other terms of this contract
19            provision. Compliance with the sequestration
20            requirements and offset purchase requirements
21            specified in paragraph (3) of this subsection (d)
22            shall be reviewed annually by an independent
23            expert retained by the owner of the initial clean
24            coal facility, with the advance written approval
25            of the Attorney General. The Commission may, in
26            the course of the review specified in item (vii),

 

 

SB0529- 89 -LRB102 14240 SPS 19592 b

1            reduce the allowable return on equity for the
2            facility if the facility willfully fails to comply
3            with the carbon capture and sequestration
4            requirements set forth in this item (v);
5                (vi) include limits on, and accordingly
6            provide for modification of, the amount the
7            utility is required to source under the sourcing
8            agreement consistent with paragraph (2) of this
9            subsection (d);
10                (vii) require Commission review: (1) to
11            determine the justness, reasonableness, and
12            prudence of the inputs to the formula referenced
13            in subparagraphs (A)(i) through (A)(iii) of
14            paragraph (3) of this subsection (d), prior to an
15            adjustment in those inputs including, without
16            limitation, the capital structure and return on
17            equity, fuel costs, and other operations and
18            maintenance costs and (2) to approve the costs to
19            be passed through to customers under the sourcing
20            agreement by which the utility satisfies its
21            statutory obligations. Commission review shall
22            occur no less than every 3 years, regardless of
23            whether any adjustments have been proposed, and
24            shall be completed within 9 months;
25                (viii) limit the utility's obligation to such
26            amount as the utility is allowed to recover

 

 

SB0529- 90 -LRB102 14240 SPS 19592 b

1            through tariffs filed with the Commission,
2            provided that neither the clean coal facility nor
3            the utility waives any right to assert federal
4            pre-emption or any other argument in response to a
5            purported disallowance of recovery costs;
6                (ix) limit the utility's or alternative retail
7            electric supplier's obligation to incur any
8            liability until such time as the facility is in
9            commercial operation and generating power and
10            energy and such power and energy is being
11            delivered to the facility busbar;
12                (x) provide that the owner or owners of the
13            initial clean coal facility, which is the
14            counterparty to such sourcing agreement, shall
15            have the right from time to time to elect whether
16            the obligations of the utility party thereto shall
17            be governed by the power purchase provisions or
18            the contract for differences provisions;
19                (xi) append documentation showing that the
20            formula rate and contract, insofar as they relate
21            to the power purchase provisions, have been
22            approved by the Federal Energy Regulatory
23            Commission pursuant to Section 205 of the Federal
24            Power Act;
25                (xii) provide that any changes to the terms of
26            the contract, insofar as such changes relate to

 

 

SB0529- 91 -LRB102 14240 SPS 19592 b

1            the power purchase provisions, are subject to
2            review under the public interest standard applied
3            by the Federal Energy Regulatory Commission
4            pursuant to Sections 205 and 206 of the Federal
5            Power Act; and
6                (xiii) conform with customary lender
7            requirements in power purchase agreements used as
8            the basis for financing non-utility generators.
9        (4) Effective date of sourcing agreements with the
10    initial clean coal facility. Any proposed sourcing
11    agreement with the initial clean coal facility shall not
12    become effective unless the following reports are prepared
13    and submitted and authorizations and approvals obtained:
14            (i) Facility cost report. The owner of the initial
15        clean coal facility shall submit to the Commission,
16        the Agency, and the General Assembly a front-end
17        engineering and design study, a facility cost report,
18        method of financing (including but not limited to
19        structure and associated costs), and an operating and
20        maintenance cost quote for the facility (collectively
21        "facility cost report"), which shall be prepared in
22        accordance with the requirements of this paragraph (4)
23        of subsection (d) of this Section, and shall provide
24        the Commission and the Agency access to the work
25        papers, relied upon documents, and any other backup
26        documentation related to the facility cost report.

 

 

SB0529- 92 -LRB102 14240 SPS 19592 b

1            (ii) Commission report. Within 6 months following
2        receipt of the facility cost report, the Commission,
3        in consultation with the Agency, shall submit a report
4        to the General Assembly setting forth its analysis of
5        the facility cost report. Such report shall include,
6        but not be limited to, a comparison of the costs
7        associated with electricity generated by the initial
8        clean coal facility to the costs associated with
9        electricity generated by other types of generation
10        facilities, an analysis of the rate impacts on
11        residential and small business customers over the life
12        of the sourcing agreements, and an analysis of the
13        likelihood that the initial clean coal facility will
14        commence commercial operation by and be delivering
15        power to the facility's busbar by 2016. To assist in
16        the preparation of its report, the Commission, in
17        consultation with the Agency, may hire one or more
18        experts or consultants, the costs of which shall be
19        paid for by the owner of the initial clean coal
20        facility. The Commission and Agency may begin the
21        process of selecting such experts or consultants prior
22        to receipt of the facility cost report.
23            (iii) General Assembly approval. The proposed
24        sourcing agreements shall not take effect unless,
25        based on the facility cost report and the Commission's
26        report, the General Assembly enacts authorizing

 

 

SB0529- 93 -LRB102 14240 SPS 19592 b

1        legislation approving (A) the projected price, stated
2        in cents per kilowatthour, to be charged for
3        electricity generated by the initial clean coal
4        facility, (B) the projected impact on residential and
5        small business customers' bills over the life of the
6        sourcing agreements, and (C) the maximum allowable
7        return on equity for the project; and
8            (iv) Commission review. If the General Assembly
9        enacts authorizing legislation pursuant to
10        subparagraph (iii) approving a sourcing agreement, the
11        Commission shall, within 90 days of such enactment,
12        complete a review of such sourcing agreement. During
13        such time period, the Commission shall implement any
14        directive of the General Assembly, resolve any
15        disputes between the parties to the sourcing agreement
16        concerning the terms of such agreement, approve the
17        form of such agreement, and issue an order finding
18        that the sourcing agreement is prudent and reasonable.
19        The facility cost report shall be prepared as follows:
20            (A) The facility cost report shall be prepared by
21        duly licensed engineering and construction firms
22        detailing the estimated capital costs payable to one
23        or more contractors or suppliers for the engineering,
24        procurement and construction of the components
25        comprising the initial clean coal facility and the
26        estimated costs of operation and maintenance of the

 

 

SB0529- 94 -LRB102 14240 SPS 19592 b

1        facility. The facility cost report shall include:
2                (i) an estimate of the capital cost of the
3            core plant based on one or more front end
4            engineering and design studies for the
5            gasification island and related facilities. The
6            core plant shall include all civil, structural,
7            mechanical, electrical, control, and safety
8            systems.
9                (ii) an estimate of the capital cost of the
10            balance of the plant, including any capital costs
11            associated with sequestration of carbon dioxide
12            emissions and all interconnects and interfaces
13            required to operate the facility, such as
14            transmission of electricity, construction or
15            backfeed power supply, pipelines to transport
16            substitute natural gas or carbon dioxide, potable
17            water supply, natural gas supply, water supply,
18            water discharge, landfill, access roads, and coal
19            delivery.
20            The quoted construction costs shall be expressed
21        in nominal dollars as of the date that the quote is
22        prepared and shall include capitalized financing costs
23        during construction, taxes, insurance, and other
24        owner's costs, and an assumed escalation in materials
25        and labor beyond the date as of which the construction
26        cost quote is expressed.

 

 

SB0529- 95 -LRB102 14240 SPS 19592 b

1            (B) The front end engineering and design study for
2        the gasification island and the cost study for the
3        balance of plant shall include sufficient design work
4        to permit quantification of major categories of
5        materials, commodities and labor hours, and receipt of
6        quotes from vendors of major equipment required to
7        construct and operate the clean coal facility.
8            (C) The facility cost report shall also include an
9        operating and maintenance cost quote that will provide
10        the estimated cost of delivered fuel, personnel,
11        maintenance contracts, chemicals, catalysts,
12        consumables, spares, and other fixed and variable
13        operations and maintenance costs. The delivered fuel
14        cost estimate will be provided by a recognized third
15        party expert or experts in the fuel and transportation
16        industries. The balance of the operating and
17        maintenance cost quote, excluding delivered fuel
18        costs, will be developed based on the inputs provided
19        by duly licensed engineering and construction firms
20        performing the construction cost quote, potential
21        vendors under long-term service agreements and plant
22        operating agreements, or recognized third party plant
23        operator or operators.
24            The operating and maintenance cost quote
25        (including the cost of the front end engineering and
26        design study) shall be expressed in nominal dollars as

 

 

SB0529- 96 -LRB102 14240 SPS 19592 b

1        of the date that the quote is prepared and shall
2        include taxes, insurance, and other owner's costs, and
3        an assumed escalation in materials and labor beyond
4        the date as of which the operating and maintenance
5        cost quote is expressed.
6            (D) The facility cost report shall also include an
7        analysis of the initial clean coal facility's ability
8        to deliver power and energy into the applicable
9        regional transmission organization markets and an
10        analysis of the expected capacity factor for the
11        initial clean coal facility.
12            (E) Amounts paid to third parties unrelated to the
13        owner or owners of the initial clean coal facility to
14        prepare the core plant construction cost quote,
15        including the front end engineering and design study,
16        and the operating and maintenance cost quote will be
17        reimbursed through Coal Development Bonds.
18        (5) Re-powering and retrofitting coal-fired power
19    plants previously owned by Illinois utilities to qualify
20    as clean coal facilities. During the 2009 procurement
21    planning process and thereafter, the Agency and the
22    Commission shall consider sourcing agreements covering
23    electricity generated by power plants that were previously
24    owned by Illinois utilities and that have been or will be
25    converted into clean coal facilities, as defined by
26    Section 1-10 of this Act. Pursuant to such procurement

 

 

SB0529- 97 -LRB102 14240 SPS 19592 b

1    planning process, the owners of such facilities may
2    propose to the Agency sourcing agreements with utilities
3    and alternative retail electric suppliers required to
4    comply with subsection (d) of this Section and item (5) of
5    subsection (d) of Section 16-115 of the Public Utilities
6    Act, covering electricity generated by such facilities. In
7    the case of sourcing agreements that are power purchase
8    agreements, the contract price for electricity sales shall
9    be established on a cost of service basis. In the case of
10    sourcing agreements that are contracts for differences,
11    the contract price from which the reference price is
12    subtracted shall be established on a cost of service
13    basis. The Agency and the Commission may approve any such
14    utility sourcing agreements that do not exceed cost-based
15    benchmarks developed by the procurement administrator, in
16    consultation with the Commission staff, Agency staff and
17    the procurement monitor, subject to Commission review and
18    approval. The Commission shall have authority to inspect
19    all books and records associated with these clean coal
20    facilities during the term of any such contract.
21        (6) Costs incurred under this subsection (d) or
22    pursuant to a contract entered into under this subsection
23    (d) shall be deemed prudently incurred and reasonable in
24    amount and the electric utility shall be entitled to full
25    cost recovery pursuant to the tariffs filed with the
26    Commission.

 

 

SB0529- 98 -LRB102 14240 SPS 19592 b

1    (d-5) Zero emission standard.
2        (1) Beginning with the delivery year commencing on
3    June 1, 2017, the Agency shall, for electric utilities
4    that serve at least 100,000 retail customers in this
5    State, procure contracts with zero emission facilities
6    that are reasonably capable of generating cost-effective
7    zero emission credits in an amount approximately equal to
8    16% of the actual amount of electricity delivered by each
9    electric utility to retail customers in the State during
10    calendar year 2014. For an electric utility serving fewer
11    than 100,000 retail customers in this State that
12    requested, under Section 16-111.5 of the Public Utilities
13    Act, that the Agency procure power and energy for all or a
14    portion of the utility's Illinois load for the delivery
15    year commencing June 1, 2016, the Agency shall procure
16    contracts with zero emission facilities that are
17    reasonably capable of generating cost-effective zero
18    emission credits in an amount approximately equal to 16%
19    of the portion of power and energy to be procured by the
20    Agency for the utility. The duration of the contracts
21    procured under this subsection (d-5) shall be for a term
22    of 10 years ending May 31, 2027. The quantity of zero
23    emission credits to be procured under the contracts shall
24    be all of the zero emission credits generated by the zero
25    emission facility in each delivery year; however, if the
26    zero emission facility is owned by more than one entity,

 

 

SB0529- 99 -LRB102 14240 SPS 19592 b

1    then the quantity of zero emission credits to be procured
2    under the contracts shall be the amount of zero emission
3    credits that are generated from the portion of the zero
4    emission facility that is owned by the winning supplier.
5        The 16% value identified in this paragraph (1) is the
6    average of the percentage targets in subparagraph (B) of
7    paragraph (1) of subsection (c) of this Section for the 5
8    delivery years beginning June 1, 2017.
9        The procurement process shall be subject to the
10    following provisions:
11            (A) Those zero emission facilities that intend to
12        participate in the procurement shall submit to the
13        Agency the following eligibility information for each
14        zero emission facility on or before the date
15        established by the Agency:
16                (i) the in-service date and remaining useful
17            life of the zero emission facility;
18                (ii) the amount of power generated annually
19            for each of the years 2005 through 2015, and the
20            projected zero emission credits to be generated
21            over the remaining useful life of the zero
22            emission facility, which shall be used to
23            determine the capability of each facility;
24                (iii) the annual zero emission facility cost
25            projections, expressed on a per megawatthour
26            basis, over the next 6 delivery years, which shall

 

 

SB0529- 100 -LRB102 14240 SPS 19592 b

1            include the following: operation and maintenance
2            expenses; fully allocated overhead costs, which
3            shall be allocated using the methodology developed
4            by the Institute for Nuclear Power Operations;
5            fuel expenditures; non-fuel capital expenditures;
6            spent fuel expenditures; a return on working
7            capital; the cost of operational and market risks
8            that could be avoided by ceasing operation; and
9            any other costs necessary for continued
10            operations, provided that "necessary" means, for
11            purposes of this item (iii), that the costs could
12            reasonably be avoided only by ceasing operations
13            of the zero emission facility; and
14                (iv) a commitment to continue operating, for
15            the duration of the contract or contracts executed
16            under the procurement held under this subsection
17            (d-5), the zero emission facility that produces
18            the zero emission credits to be procured in the
19            procurement.
20            The information described in item (iii) of this
21        subparagraph (A) may be submitted on a confidential
22        basis and shall be treated and maintained by the
23        Agency, the procurement administrator, and the
24        Commission as confidential and proprietary and exempt
25        from disclosure under subparagraphs (a) and (g) of
26        paragraph (1) of Section 7 of the Freedom of

 

 

SB0529- 101 -LRB102 14240 SPS 19592 b

1        Information Act. The Office of Attorney General shall
2        have access to, and maintain the confidentiality of,
3        such information pursuant to Section 6.5 of the
4        Attorney General Act.
5            (B) The price for each zero emission credit
6        procured under this subsection (d-5) for each delivery
7        year shall be in an amount that equals the Social Cost
8        of Carbon, expressed on a price per megawatthour
9        basis. However, to ensure that the procurement remains
10        affordable to retail customers in this State if
11        electricity prices increase, the price in an
12        applicable delivery year shall be reduced below the
13        Social Cost of Carbon by the amount ("Price
14        Adjustment") by which the market price index for the
15        applicable delivery year exceeds the baseline market
16        price index for the consecutive 12-month period ending
17        May 31, 2016. If the Price Adjustment is greater than
18        or equal to the Social Cost of Carbon in an applicable
19        delivery year, then no payments shall be due in that
20        delivery year. The components of this calculation are
21        defined as follows:
22                (i) Social Cost of Carbon: The Social Cost of
23            Carbon is $16.50 per megawatthour, which is based
24            on the U.S. Interagency Working Group on Social
25            Cost of Carbon's price in the August 2016
26            Technical Update using a 3% discount rate,

 

 

SB0529- 102 -LRB102 14240 SPS 19592 b

1            adjusted for inflation for each year of the
2            program. Beginning with the delivery year
3            commencing June 1, 2023, the price per
4            megawatthour shall increase by $1 per
5            megawatthour, and continue to increase by an
6            additional $1 per megawatthour each delivery year
7            thereafter.
8                (ii) Baseline market price index: The baseline
9            market price index for the consecutive 12-month
10            period ending May 31, 2016 is $31.40 per
11            megawatthour, which is based on the sum of (aa)
12            the average day-ahead energy price across all
13            hours of such 12-month period at the PJM
14            Interconnection LLC Northern Illinois Hub, (bb)
15            50% multiplied by the Base Residual Auction, or
16            its successor, capacity price for the rest of the
17            RTO zone group determined by PJM Interconnection
18            LLC, divided by 24 hours per day, and (cc) 50%
19            multiplied by the Planning Resource Auction, or
20            its successor, capacity price for Zone 4
21            determined by the Midcontinent Independent System
22            Operator, Inc., divided by 24 hours per day.
23                (iii) Market price index: The market price
24            index for a delivery year shall be the sum of
25            projected energy prices and projected capacity
26            prices determined as follows:

 

 

SB0529- 103 -LRB102 14240 SPS 19592 b

1                    (aa) Projected energy prices: the
2                projected energy prices for the applicable
3                delivery year shall be calculated once for the
4                year using the forward market price for the
5                PJM Interconnection, LLC Northern Illinois
6                Hub. The forward market price shall be
7                calculated as follows: the energy forward
8                prices for each month of the applicable
9                delivery year averaged for each trade date
10                during the calendar year immediately preceding
11                that delivery year to produce a single energy
12                forward price for the delivery year. The
13                forward market price calculation shall use
14                data published by the Intercontinental
15                Exchange, or its successor.
16                    (bb) Projected capacity prices:
17                        (I) For the delivery years commencing
18                    June 1, 2017, June 1, 2018, and June 1,
19                    2019, the projected capacity price shall
20                    be equal to the sum of (1) 50% multiplied
21                    by the Base Residual Auction, or its
22                    successor, price for the rest of the RTO
23                    zone group as determined by PJM
24                    Interconnection LLC, divided by 24 hours
25                    per day and, (2) 50% multiplied by the
26                    resource auction price determined in the

 

 

SB0529- 104 -LRB102 14240 SPS 19592 b

1                    resource auction administered by the
2                    Midcontinent Independent System Operator,
3                    Inc., in which the largest percentage of
4                    load cleared for Local Resource Zone 4,
5                    divided by 24 hours per day, and where
6                    such price is determined by the
7                    Midcontinent Independent System Operator,
8                    Inc.
9                        (II) For the delivery year commencing
10                    June 1, 2020, and each year thereafter,
11                    the projected capacity price shall be
12                    equal to the sum of (1) 50% multiplied by
13                    the Base Residual Auction, or its
14                    successor, price for the ComEd zone as
15                    determined by PJM Interconnection LLC,
16                    divided by 24 hours per day, and (2) 50%
17                    multiplied by the resource auction price
18                    determined in the resource auction
19                    administered by the Midcontinent
20                    Independent System Operator, Inc., in
21                    which the largest percentage of load
22                    cleared for Local Resource Zone 4, divided
23                    by 24 hours per day, and where such price
24                    is determined by the Midcontinent
25                    Independent System Operator, Inc.
26            For purposes of this subsection (d-5):

 

 

SB0529- 105 -LRB102 14240 SPS 19592 b

1                "Rest of the RTO" and "ComEd Zone" shall have
2            the meaning ascribed to them by PJM
3            Interconnection, LLC.
4                "RTO" means regional transmission
5            organization.
6            (C) No later than 45 days after June 1, 2017 (the
7        effective date of Public Act 99-906), the Agency shall
8        publish its proposed zero emission standard
9        procurement plan. The plan shall be consistent with
10        the provisions of this paragraph (1) and shall provide
11        that winning bids shall be selected based on public
12        interest criteria that include, but are not limited
13        to, minimizing carbon dioxide emissions that result
14        from electricity consumed in Illinois and minimizing
15        sulfur dioxide, nitrogen oxide, and particulate matter
16        emissions that adversely affect the citizens of this
17        State. In particular, the selection of winning bids
18        shall take into account the incremental environmental
19        benefits resulting from the procurement, such as any
20        existing environmental benefits that are preserved by
21        the procurements held under Public Act 99-906 and
22        would cease to exist if the procurements were not
23        held, including the preservation of zero emission
24        facilities. The plan shall also describe in detail how
25        each public interest factor shall be considered and
26        weighted in the bid selection process to ensure that

 

 

SB0529- 106 -LRB102 14240 SPS 19592 b

1        the public interest criteria are applied to the
2        procurement and given full effect.
3            For purposes of developing the plan, the Agency
4        shall consider any reports issued by a State agency,
5        board, or commission under House Resolution 1146 of
6        the 98th General Assembly and paragraph (4) of
7        subsection (d) of this Section, as well as publicly
8        available analyses and studies performed by or for
9        regional transmission organizations that serve the
10        State and their independent market monitors.
11            Upon publishing of the zero emission standard
12        procurement plan, copies of the plan shall be posted
13        and made publicly available on the Agency's website.
14        All interested parties shall have 10 days following
15        the date of posting to provide comment to the Agency on
16        the plan. All comments shall be posted to the Agency's
17        website. Following the end of the comment period, but
18        no more than 60 days later than June 1, 2017 (the
19        effective date of Public Act 99-906), the Agency shall
20        revise the plan as necessary based on the comments
21        received and file its zero emission standard
22        procurement plan with the Commission.
23            If the Commission determines that the plan will
24        result in the procurement of cost-effective zero
25        emission credits, then the Commission shall, after
26        notice and hearing, but no later than 45 days after the

 

 

SB0529- 107 -LRB102 14240 SPS 19592 b

1        Agency filed the plan, approve the plan or approve
2        with modification. For purposes of this subsection
3        (d-5), "cost effective" means the projected costs of
4        procuring zero emission credits from zero emission
5        facilities do not cause the limit stated in paragraph
6        (2) of this subsection to be exceeded.
7            (C-5) As part of the Commission's review and
8        acceptance or rejection of the procurement results,
9        the Commission shall, in its public notice of
10        successful bidders:
11                (i) identify how the winning bids satisfy the
12            public interest criteria described in subparagraph
13            (C) of this paragraph (1) of minimizing carbon
14            dioxide emissions that result from electricity
15            consumed in Illinois and minimizing sulfur
16            dioxide, nitrogen oxide, and particulate matter
17            emissions that adversely affect the citizens of
18            this State;
19                (ii) specifically address how the selection of
20            winning bids takes into account the incremental
21            environmental benefits resulting from the
22            procurement, including any existing environmental
23            benefits that are preserved by the procurements
24            held under Public Act 99-906 and would have ceased
25            to exist if the procurements had not been held,
26            such as the preservation of zero emission

 

 

SB0529- 108 -LRB102 14240 SPS 19592 b

1            facilities;
2                (iii) quantify the environmental benefit of
3            preserving the resources identified in item (ii)
4            of this subparagraph (C-5), including the
5            following:
6                    (aa) the value of avoided greenhouse gas
7                emissions measured as the product of the zero
8                emission facilities' output over the contract
9                term multiplied by the U.S. Environmental
10                Protection Agency eGrid subregion carbon
11                dioxide emission rate and the U.S. Interagency
12                Working Group on Social Cost of Carbon's price
13                in the August 2016 Technical Update using a 3%
14                discount rate, adjusted for inflation for each
15                delivery year; and
16                    (bb) the costs of replacement with other
17                zero carbon dioxide resources, including wind
18                and photovoltaic, based upon the simple
19                average of the following:
20                        (I) the price, or if there is more
21                    than one price, the average of the prices,
22                    paid for renewable energy credits from new
23                    utility-scale wind projects in the
24                    procurement events specified in item (i)
25                    of subparagraph (G) of paragraph (1) of
26                    subsection (c) of this Section; and

 

 

SB0529- 109 -LRB102 14240 SPS 19592 b

1                        (II) the price, or if there is more
2                    than one price, the average of the prices,
3                    paid for renewable energy credits from new
4                    utility-scale solar projects and
5                    brownfield site photovoltaic projects in
6                    the procurement events specified in item
7                    (ii) of subparagraph (G) of paragraph (1)
8                    of subsection (c) of this Section and,
9                    after January 1, 2015, renewable energy
10                    credits from photovoltaic distributed
11                    generation projects in procurement events
12                    held under subsection (c) of this Section.
13            Each utility shall enter into binding contractual
14        arrangements with the winning suppliers.
15            The procurement described in this subsection
16        (d-5), including, but not limited to, the execution of
17        all contracts procured, shall be completed no later
18        than May 10, 2017. Based on the effective date of
19        Public Act 99-906, the Agency and Commission may, as
20        appropriate, modify the various dates and timelines
21        under this subparagraph and subparagraphs (C) and (D)
22        of this paragraph (1). The procurement and plan
23        approval processes required by this subsection (d-5)
24        shall be conducted in conjunction with the procurement
25        and plan approval processes required by subsection (c)
26        of this Section and Section 16-111.5 of the Public

 

 

SB0529- 110 -LRB102 14240 SPS 19592 b

1        Utilities Act, to the extent practicable.
2        Notwithstanding whether a procurement event is
3        conducted under Section 16-111.5 of the Public
4        Utilities Act, the Agency shall immediately initiate a
5        procurement process on June 1, 2017 (the effective
6        date of Public Act 99-906).
7            (D) Following the procurement event described in
8        this paragraph (1) and consistent with subparagraph
9        (B) of this paragraph (1), the Agency shall calculate
10        the payments to be made under each contract for the
11        next delivery year based on the market price index for
12        that delivery year. The Agency shall publish the
13        payment calculations no later than May 25, 2017 and
14        every May 25 thereafter.
15            (E) Notwithstanding the requirements of this
16        subsection (d-5), the contracts executed under this
17        subsection (d-5) shall provide that the zero emission
18        facility may, as applicable, suspend or terminate
19        performance under the contracts in the following
20        instances:
21                (i) A zero emission facility shall be excused
22            from its performance under the contract for any
23            cause beyond the control of the resource,
24            including, but not restricted to, acts of God,
25            flood, drought, earthquake, storm, fire,
26            lightning, epidemic, war, riot, civil disturbance

 

 

SB0529- 111 -LRB102 14240 SPS 19592 b

1            or disobedience, labor dispute, labor or material
2            shortage, sabotage, acts of public enemy,
3            explosions, orders, regulations or restrictions
4            imposed by governmental, military, or lawfully
5            established civilian authorities, which, in any of
6            the foregoing cases, by exercise of commercially
7            reasonable efforts the zero emission facility
8            could not reasonably have been expected to avoid,
9            and which, by the exercise of commercially
10            reasonable efforts, it has been unable to
11            overcome. In such event, the zero emission
12            facility shall be excused from performance for the
13            duration of the event, including, but not limited
14            to, delivery of zero emission credits, and no
15            payment shall be due to the zero emission facility
16            during the duration of the event.
17                (ii) A zero emission facility shall be
18            permitted to terminate the contract if legislation
19            is enacted into law by the General Assembly that
20            imposes or authorizes a new tax, special
21            assessment, or fee on the generation of
22            electricity, the ownership or leasehold of a
23            generating unit, or the privilege or occupation of
24            such generation, ownership, or leasehold of
25            generation units by a zero emission facility.
26            However, the provisions of this item (ii) do not

 

 

SB0529- 112 -LRB102 14240 SPS 19592 b

1            apply to any generally applicable tax, special
2            assessment or fee, or requirements imposed by
3            federal law.
4                (iii) A zero emission facility shall be
5            permitted to terminate the contract in the event
6            that the resource requires capital expenditures in
7            excess of $40,000,000 that were neither known nor
8            reasonably foreseeable at the time it executed the
9            contract and that a prudent owner or operator of
10            such resource would not undertake.
11                (iv) A zero emission facility shall be
12            permitted to terminate the contract in the event
13            the Nuclear Regulatory Commission terminates the
14            resource's license.
15            (F) If the zero emission facility elects to
16        terminate a contract under subparagraph (E) of this
17        paragraph (1), then the Commission shall reopen the
18        docket in which the Commission approved the zero
19        emission standard procurement plan under subparagraph
20        (C) of this paragraph (1) and, after notice and
21        hearing, enter an order acknowledging the contract
22        termination election if such termination is consistent
23        with the provisions of this subsection (d-5).
24        (2) For purposes of this subsection (d-5), the amount
25    paid per kilowatthour means the total amount paid for
26    electric service expressed on a per kilowatthour basis.

 

 

SB0529- 113 -LRB102 14240 SPS 19592 b

1    For purposes of this subsection (d-5), the total amount
2    paid for electric service includes, without limitation,
3    amounts paid for supply, transmission, distribution,
4    surcharges, and add-on taxes.
5        Notwithstanding the requirements of this subsection
6    (d-5), the contracts executed under this subsection (d-5)
7    shall provide that the total of zero emission credits
8    procured under a procurement plan shall be subject to the
9    limitations of this paragraph (2). For each delivery year,
10    the contractual volume receiving payments in such year
11    shall be reduced for all retail customers based on the
12    amount necessary to limit the net increase that delivery
13    year to the costs of those credits included in the amounts
14    paid by eligible retail customers in connection with
15    electric service to no more than 1.65% of the amount paid
16    per kilowatthour by eligible retail customers during the
17    year ending May 31, 2009. The result of this computation
18    shall apply to and reduce the procurement for all retail
19    customers, and all those customers shall pay the same
20    single, uniform cents per kilowatthour charge under
21    subsection (k) of Section 16-108 of the Public Utilities
22    Act. To arrive at a maximum dollar amount of zero emission
23    credits to be paid for the particular delivery year, the
24    resulting per kilowatthour amount shall be applied to the
25    actual amount of kilowatthours of electricity delivered by
26    the electric utility in the delivery year immediately

 

 

SB0529- 114 -LRB102 14240 SPS 19592 b

1    prior to the procurement, to all retail customers in its
2    service territory. Unpaid contractual volume for any
3    delivery year shall be paid in any subsequent delivery
4    year in which such payments can be made without exceeding
5    the amount specified in this paragraph (2). The
6    calculations required by this paragraph (2) shall be made
7    only once for each procurement plan year. Once the
8    determination as to the amount of zero emission credits to
9    be paid is made based on the calculations set forth in this
10    paragraph (2), no subsequent rate impact determinations
11    shall be made and no adjustments to those contract amounts
12    shall be allowed. All costs incurred under those contracts
13    and in implementing this subsection (d-5) shall be
14    recovered by the electric utility as provided in this
15    Section.
16        No later than June 30, 2019, the Commission shall
17    review the limitation on the amount of zero emission
18    credits procured under this subsection (d-5) and report to
19    the General Assembly its findings as to whether that
20    limitation unduly constrains the procurement of
21    cost-effective zero emission credits.
22        (3) Six years after the execution of a contract under
23    this subsection (d-5), the Agency shall determine whether
24    the actual zero emission credit payments received by the
25    supplier over the 6-year period exceed the Average ZEC
26    Payment. In addition, at the end of the term of a contract

 

 

SB0529- 115 -LRB102 14240 SPS 19592 b

1    executed under this subsection (d-5), or at the time, if
2    any, a zero emission facility's contract is terminated
3    under subparagraph (E) of paragraph (1) of this subsection
4    (d-5), then the Agency shall determine whether the actual
5    zero emission credit payments received by the supplier
6    over the term of the contract exceed the Average ZEC
7    Payment, after taking into account any amounts previously
8    credited back to the utility under this paragraph (3). If
9    the Agency determines that the actual zero emission credit
10    payments received by the supplier over the relevant period
11    exceed the Average ZEC Payment, then the supplier shall
12    credit the difference back to the utility. The amount of
13    the credit shall be remitted to the applicable electric
14    utility no later than 120 days after the Agency's
15    determination, which the utility shall reflect as a credit
16    on its retail customer bills as soon as practicable;
17    however, the credit remitted to the utility shall not
18    exceed the total amount of payments received by the
19    facility under its contract.
20        For purposes of this Section, the Average ZEC Payment
21    shall be calculated by multiplying the quantity of zero
22    emission credits delivered under the contract times the
23    average contract price. The average contract price shall
24    be determined by subtracting the amount calculated under
25    subparagraph (B) of this paragraph (3) from the amount
26    calculated under subparagraph (A) of this paragraph (3),

 

 

SB0529- 116 -LRB102 14240 SPS 19592 b

1    as follows:
2            (A) The average of the Social Cost of Carbon, as
3        defined in subparagraph (B) of paragraph (1) of this
4        subsection (d-5), during the term of the contract.
5            (B) The average of the market price indices, as
6        defined in subparagraph (B) of paragraph (1) of this
7        subsection (d-5), during the term of the contract,
8        minus the baseline market price index, as defined in
9        subparagraph (B) of paragraph (1) of this subsection
10        (d-5).
11        If the subtraction yields a negative number, then the
12    Average ZEC Payment shall be zero.
13        (4) Cost-effective zero emission credits procured from
14    zero emission facilities shall satisfy the applicable
15    definitions set forth in Section 1-10 of this Act.
16        (5) The electric utility shall retire all zero
17    emission credits used to comply with the requirements of
18    this subsection (d-5).
19        (6) Electric utilities shall be entitled to recover
20    all of the costs associated with the procurement of zero
21    emission credits through an automatic adjustment clause
22    tariff in accordance with subsection (k) and (m) of
23    Section 16-108 of the Public Utilities Act, and the
24    contracts executed under this subsection (d-5) shall
25    provide that the utilities' payment obligations under such
26    contracts shall be reduced if an adjustment is required

 

 

SB0529- 117 -LRB102 14240 SPS 19592 b

1    under subsection (m) of Section 16-108 of the Public
2    Utilities Act.
3        (7) This subsection (d-5) shall become inoperative on
4    January 1, 2028.
5    (e) The draft procurement plans are subject to public
6comment, as required by Section 16-111.5 of the Public
7Utilities Act.
8    (f) The Agency shall submit the final procurement plan to
9the Commission. The Agency shall revise a procurement plan if
10the Commission determines that it does not meet the standards
11set forth in Section 16-111.5 of the Public Utilities Act.
12    (g) The Agency shall assess fees to each affected utility
13to recover the costs incurred in preparation of the annual
14procurement plan for the utility.
15    (h) The Agency shall assess fees to each bidder to recover
16the costs incurred in connection with a competitive
17procurement process.
18    (i) A renewable energy credit (including renewable energy
19credits sold, delivered, and purchased under a contract
20entered into pursuant to subsection (c-5) of this Section),
21carbon emission credit, or zero emission credit can only be
22used once to comply with a single portfolio or other standard
23as set forth in subsection (c), subsection (d), or subsection
24(d-5) of this Section, respectively. A renewable energy
25credit, carbon emission credit, or zero emission credit cannot
26be used to satisfy the requirements of more than one standard.

 

 

SB0529- 118 -LRB102 14240 SPS 19592 b

1If more than one type of credit is issued for the same megawatt
2hour of energy, only one credit can be used to satisfy the
3requirements of a single standard. After such use, the credit
4must be retired together with any other credits issued for the
5same megawatt hour of energy.
6(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
7101-113, eff. 1-1-20.)
 
8    Section 15. The State Finance Act is amended by adding
9Section 5.935 as follows:
 
10    (30 ILCS 105/5.935 new)
11    Sec. 5.935. The Coal to Solar and Energy Storage Incentive
12and Plant Transition Fund.
 
13    Section 20. The Public Utilities Act is amended by
14changing Sections 16-108 and 16-111.5 as follows:
 
15    (220 ILCS 5/16-108)
16    Sec. 16-108. Recovery of costs associated with the
17provision of delivery services and certain other charges
18services.
19    (a) An electric utility shall file a delivery services
20tariff with the Commission at least 210 days prior to the date
21that it is required to begin offering such services pursuant
22to this Act. An electric utility shall provide the components

 

 

SB0529- 119 -LRB102 14240 SPS 19592 b

1of delivery services that are subject to the jurisdiction of
2the Federal Energy Regulatory Commission at the same prices,
3terms and conditions set forth in its applicable tariff as
4approved or allowed into effect by that Commission. The
5Commission shall otherwise have the authority pursuant to
6Article IX to review, approve, and modify the prices, terms
7and conditions of those components of delivery services not
8subject to the jurisdiction of the Federal Energy Regulatory
9Commission, including the authority to determine the extent to
10which such delivery services should be offered on an unbundled
11basis. In making any such determination the Commission shall
12consider, at a minimum, the effect of additional unbundling on
13(i) the objective of just and reasonable rates, (ii) electric
14utility employees, and (iii) the development of competitive
15markets for electric energy services in Illinois.
16    (b) The Commission shall enter an order approving, or
17approving as modified, the delivery services tariff no later
18than 30 days prior to the date on which the electric utility
19must commence offering such services. The Commission may
20subsequently modify such tariff pursuant to this Act.
21    (c) The electric utility's tariffs shall define the
22classes of its customers for purposes of delivery services
23charges. Delivery services shall be priced and made available
24to all retail customers electing delivery services in each
25such class on a nondiscriminatory basis regardless of whether
26the retail customer chooses the electric utility, an affiliate

 

 

SB0529- 120 -LRB102 14240 SPS 19592 b

1of the electric utility, or another entity as its supplier of
2electric power and energy. Charges for delivery services shall
3be cost based, and shall allow the electric utility to recover
4the costs of providing delivery services through its charges
5to its delivery service customers that use the facilities and
6services associated with such costs. Such costs shall include
7the costs of owning, operating and maintaining transmission
8and distribution facilities. The Commission shall also be
9authorized to consider whether, and if so to what extent, the
10following costs are appropriately included in the electric
11utility's delivery services rates: (i) the costs of that
12portion of generation facilities used for the production and
13absorption of reactive power in order that retail customers
14located in the electric utility's service area can receive
15electric power and energy from suppliers other than the
16electric utility, and (ii) the costs associated with the use
17and redispatch of generation facilities to mitigate
18constraints on the transmission or distribution system in
19order that retail customers located in the electric utility's
20service area can receive electric power and energy from
21suppliers other than the electric utility. Nothing in this
22subsection shall be construed as directing the Commission to
23allocate any of the costs described in (i) or (ii) that are
24found to be appropriately included in the electric utility's
25delivery services rates to any particular customer group or
26geographic area in setting delivery services rates.

 

 

SB0529- 121 -LRB102 14240 SPS 19592 b

1    (d) The Commission shall establish charges, terms and
2conditions for delivery services that are just and reasonable
3and shall take into account customer impacts when establishing
4such charges. In establishing charges, terms and conditions
5for delivery services, the Commission shall take into account
6voltage level differences. A retail customer shall have the
7option to request to purchase electric service at any delivery
8service voltage reasonably and technically feasible from the
9electric facilities serving that customer's premises provided
10that there are no significant adverse impacts upon system
11reliability or system efficiency. A retail customer shall also
12have the option to request to purchase electric service at any
13point of delivery that is reasonably and technically feasible
14provided that there are no significant adverse impacts on
15system reliability or efficiency. Such requests shall not be
16unreasonably denied.
17    (e) Electric utilities shall recover the costs of
18installing, operating or maintaining facilities for the
19particular benefit of one or more delivery services customers,
20including without limitation any costs incurred in complying
21with a customer's request to be served at a different voltage
22level, directly from the retail customer or customers for
23whose benefit the costs were incurred, to the extent such
24costs are not recovered through the charges referred to in
25subsections (c) and (d) of this Section.
26    (f) An electric utility shall be entitled but not required

 

 

SB0529- 122 -LRB102 14240 SPS 19592 b

1to implement transition charges in conjunction with the
2offering of delivery services pursuant to Section 16-104. If
3an electric utility implements transition charges, it shall
4implement such charges for all delivery services customers and
5for all customers described in subsection (h), but shall not
6implement transition charges for power and energy that a
7retail customer takes from cogeneration or self-generation
8facilities located on that retail customer's premises, if such
9facilities meet the following criteria:
10        (i) the cogeneration or self-generation facilities
11    serve a single retail customer and are located on that
12    retail customer's premises (for purposes of this
13    subparagraph and subparagraph (ii), an industrial or
14    manufacturing retail customer and a third party contractor
15    that is served by such industrial or manufacturing
16    customer through such retail customer's own electrical
17    distribution facilities under the circumstances described
18    in subsection (vi) of the definition of "alternative
19    retail electric supplier" set forth in Section 16-102,
20    shall be considered a single retail customer);
21        (ii) the cogeneration or self-generation facilities
22    either (A) are sized pursuant to generally accepted
23    engineering standards for the retail customer's electrical
24    load at that premises (taking into account standby or
25    other reliability considerations related to that retail
26    customer's operations at that site) or (B) if the facility

 

 

SB0529- 123 -LRB102 14240 SPS 19592 b

1    is a cogeneration facility located on the retail
2    customer's premises, the retail customer is the thermal
3    host for that facility and the facility has been designed
4    to meet that retail customer's thermal energy requirements
5    resulting in electrical output beyond that retail
6    customer's electrical demand at that premises, comply with
7    the operating and efficiency standards applicable to
8    "qualifying facilities" specified in title 18 Code of
9    Federal Regulations Section 292.205 as in effect on the
10    effective date of this amendatory Act of 1999;
11        (iii) the retail customer on whose premises the
12    facilities are located either has an exclusive right to
13    receive, and corresponding obligation to pay for, all of
14    the electrical capacity of the facility, or in the case of
15    a cogeneration facility that has been designed to meet the
16    retail customer's thermal energy requirements at that
17    premises, an identified amount of the electrical capacity
18    of the facility, over a minimum 5-year period; and
19        (iv) if the cogeneration facility is sized for the
20    retail customer's thermal load at that premises but
21    exceeds the electrical load, any sales of excess power or
22    energy are made only at wholesale, are subject to the
23    jurisdiction of the Federal Energy Regulatory Commission,
24    and are not for the purpose of circumventing the
25    provisions of this subsection (f).
26If a generation facility located at a retail customer's

 

 

SB0529- 124 -LRB102 14240 SPS 19592 b

1premises does not meet the above criteria, an electric utility
2implementing transition charges shall implement a transition
3charge until December 31, 2006 for any power and energy taken
4by such retail customer from such facility as if such power and
5energy had been delivered by the electric utility. Provided,
6however, that an industrial retail customer that is taking
7power from a generation facility that does not meet the above
8criteria but that is located on such customer's premises will
9not be subject to a transition charge for the power and energy
10taken by such retail customer from such generation facility if
11the facility does not serve any other retail customer and
12either was installed on behalf of the customer and for its own
13use prior to January 1, 1997, or is both predominantly fueled
14by byproducts of such customer's manufacturing process at such
15premises and sells or offers an average of 300 megawatts or
16more of electricity produced from such generation facility
17into the wholesale market. Such charges shall be calculated as
18provided in Section 16-102, and shall be collected on each
19kilowatt-hour delivered under a delivery services tariff to a
20retail customer from the date the customer first takes
21delivery services until December 31, 2006 except as provided
22in subsection (h) of this Section. Provided, however, that an
23electric utility, other than an electric utility providing
24service to at least 1,000,000 customers in this State on
25January 1, 1999, shall be entitled to petition for entry of an
26order by the Commission authorizing the electric utility to

 

 

SB0529- 125 -LRB102 14240 SPS 19592 b

1implement transition charges for an additional period ending
2no later than December 31, 2008. The electric utility shall
3file its petition with supporting evidence no earlier than 16
4months, and no later than 12 months, prior to December 31,
52006. The Commission shall hold a hearing on the electric
6utility's petition and shall enter its order no later than 8
7months after the petition is filed. The Commission shall
8determine whether and to what extent the electric utility
9shall be authorized to implement transition charges for an
10additional period. The Commission may authorize the electric
11utility to implement transition charges for some or all of the
12additional period, and shall determine the mitigation factors
13to be used in implementing such transition charges; provided,
14that the Commission shall not authorize mitigation factors
15less than 110% of those in effect during the 12 months ended
16December 31, 2006. In making its determination, the Commission
17shall consider the following factors: the necessity to
18implement transition charges for an additional period in order
19to maintain the financial integrity of the electric utility;
20the prudence of the electric utility's actions in reducing its
21costs since the effective date of this amendatory Act of 1997;
22the ability of the electric utility to provide safe, adequate
23and reliable service to retail customers in its service area;
24and the impact on competition of allowing the electric utility
25to implement transition charges for the additional period.
26    (g) The electric utility shall file tariffs that establish

 

 

SB0529- 126 -LRB102 14240 SPS 19592 b

1the transition charges to be paid by each class of customers to
2the electric utility in conjunction with the provision of
3delivery services. The electric utility's tariffs shall define
4the classes of its customers for purposes of calculating
5transition charges. The electric utility's tariffs shall
6provide for the calculation of transition charges on a
7customer-specific basis for any retail customer whose average
8monthly maximum electrical demand on the electric utility's
9system during the 6 months with the customer's highest monthly
10maximum electrical demands equals or exceeds 3.0 megawatts for
11electric utilities having more than 1,000,000 customers, and
12for other electric utilities for any customer that has an
13average monthly maximum electrical demand on the electric
14utility's system of one megawatt or more, and (A) for which
15there exists data on the customer's usage during the 3 years
16preceding the date that the customer became eligible to take
17delivery services, or (B) for which there does not exist data
18on the customer's usage during the 3 years preceding the date
19that the customer became eligible to take delivery services,
20if in the electric utility's reasonable judgment there exists
21comparable usage information or a sufficient basis to develop
22such information, and further provided that the electric
23utility can require customers for which an individual
24calculation is made to sign contracts that set forth the
25transition charges to be paid by the customer to the electric
26utility pursuant to the tariff.

 

 

SB0529- 127 -LRB102 14240 SPS 19592 b

1    (h) An electric utility shall also be entitled to file
2tariffs that allow it to collect transition charges from
3retail customers in the electric utility's service area that
4do not take delivery services but that take electric power or
5energy from an alternative retail electric supplier or from an
6electric utility other than the electric utility in whose
7service area the customer is located. Such charges shall be
8calculated, in accordance with the definition of transition
9charges in Section 16-102, for the period of time that the
10customer would be obligated to pay transition charges if it
11were taking delivery services, except that no deduction for
12delivery services revenues shall be made in such calculation,
13and usage data from the customer's class shall be used where
14historical usage data is not available for the individual
15customer. The customer shall be obligated to pay such charges
16on a lump sum basis on or before the date on which the customer
17commences to take service from the alternative retail electric
18supplier or other electric utility, provided, that the
19electric utility in whose service area the customer is located
20shall offer the customer the option of signing a contract
21pursuant to which the customer pays such charges ratably over
22the period in which the charges would otherwise have applied.
23    (i) An electric utility shall be entitled to add to the
24bills of delivery services customers charges pursuant to
25Sections 9-221, 9-222 (except as provided in Section 9-222.1),
26and Section 16-114 of this Act, Section 5-5 of the Electricity

 

 

SB0529- 128 -LRB102 14240 SPS 19592 b

1Infrastructure Maintenance Fee Law, Section 6-5 of the
2Renewable Energy, Energy Efficiency, and Coal Resources
3Development Law of 1997, and Section 13 of the Energy
4Assistance Act.
5    (i-5) An electric utility required to impose the Coal to
6Solar and Energy Storage Initiative Charge provided for in
7subsection (c-5) of Section 1-75 of the Illinois Power Agency
8Act shall add such charge to the bills of its delivery services
9customers pursuant to the terms of a tariff conforming to the
10requirements of subsection (c-5) of Section 1-75 of the
11Illinois Power Agency Act and filed with and approved by the
12Commission. The electric utility shall file its proposed
13tariff with the Commission within 30 days following the
14effective date of this amendatory Act of the 102nd General
15Assembly. Within 30 days following the date the proposed
16tariff is filed with the Commission, the Commission shall
17review and approve the electric utility's proposed tariff, or
18direct the electric utility to make modifications to conform
19to the requirements of subsection (c-5) of Section 1-75 of the
20Illinois Power Agency Act. The electric utility's tariff shall
21be placed into effect no later than 90 days following the
22effective date of this amendatory Act of the 102nd General
23Assembly. The electric utility shall use the funds collected
24pursuant to the tariff in accordance with subsection (c-5) of
25Section 1-75 of the Illinois Power Agency Act, including
26remitting a portion of such funds to the State Treasurer for

 

 

SB0529- 129 -LRB102 14240 SPS 19592 b

1deposit into the Coal to Solar and Energy Storage Incentive
2and Plant Transition Fund as provided for in subsection (c-5)
3of Section 1-75 of the Illinois Power Agency Act.
4    (j) If a retail customer that obtains electric power and
5energy from cogeneration or self-generation facilities
6installed for its own use on or before January 1, 1997,
7subsequently takes service from an alternative retail electric
8supplier or an electric utility other than the electric
9utility in whose service area the customer is located for any
10portion of the customer's electric power and energy
11requirements formerly obtained from those facilities
12(including that amount purchased from the utility in lieu of
13such generation and not as standby power purchases, under a
14cogeneration displacement tariff in effect as of the effective
15date of this amendatory Act of 1997), the transition charges
16otherwise applicable pursuant to subsections (f), (g), or (h)
17of this Section shall not be applicable in any year to that
18portion of the customer's electric power and energy
19requirements formerly obtained from those facilities,
20provided, that for purposes of this subsection (j), such
21portion shall not exceed the average number of kilowatt-hours
22per year obtained from the cogeneration or self-generation
23facilities during the 3 years prior to the date on which the
24customer became eligible for delivery services, except as
25provided in subsection (f) of Section 16-110.
26    (k) The electric utility shall be entitled to recover

 

 

SB0529- 130 -LRB102 14240 SPS 19592 b

1through tariffed charges all of the costs associated with the
2purchase of zero emission credits from zero emission
3facilities to meet the requirements of subsection (d-5) of
4Section 1-75 of the Illinois Power Agency Act. Such costs
5shall include the costs of procuring the zero emission
6credits, as well as the reasonable costs that the utility
7incurs as part of the procurement processes and to implement
8and comply with plans and processes approved by the Commission
9under such subsection (d-5). The costs shall be allocated
10across all retail customers through a single, uniform cents
11per kilowatt-hour charge applicable to all retail customers,
12which shall appear as a separate line item on each customer's
13bill. Beginning June 1, 2017, the electric utility shall be
14entitled to recover through tariffed charges all of the costs
15associated with the purchase of renewable energy resources to
16meet the renewable energy resource standards of subsection (c)
17of Section 1-75 of the Illinois Power Agency Act, under
18procurement plans as approved in accordance with that Section
19and Section 16-111.5 of this Act. Such costs shall include the
20costs of procuring the renewable energy resources, as well as
21the reasonable costs that the utility incurs as part of the
22procurement processes and to implement and comply with plans
23and processes approved by the Commission under such Sections.
24The costs associated with the purchase of renewable energy
25resources shall be allocated across all retail customers in
26proportion to the amount of renewable energy resources the

 

 

SB0529- 131 -LRB102 14240 SPS 19592 b

1utility procures for such customers through a single, uniform
2cents per kilowatt-hour charge applicable to such retail
3customers, which shall appear as a separate line item on each
4such customer's bill.
5    Notwithstanding whether the Commission has approved the
6initial long-term renewable resources procurement plan as of
7June 1, 2017, an electric utility shall place new tariffed
8charges into effect beginning with the June 2017 monthly
9billing period, to the extent practicable, to begin recovering
10the costs of procuring renewable energy resources, as those
11charges are calculated under the limitations described in
12subparagraph (E) of paragraph (1) of subsection (c) of Section
131-75 of the Illinois Power Agency Act. Notwithstanding the
14date on which the utility places such new tariffed charges
15into effect, the utility shall be permitted to collect the
16charges under such tariff as if the tariff had been in effect
17beginning with the first day of the June 2017 monthly billing
18period. For the delivery years commencing June 1, 2017, June
191, 2018, and June 1, 2019, the electric utility shall deposit
20into a separate interest bearing account of a financial
21institution the monies collected under the tariffed charges.
22Any interest earned shall be credited back to retail customers
23under the reconciliation proceeding provided for in this
24subsection (k), provided that the electric utility shall first
25be reimbursed from the interest for the administrative costs
26that it incurs to administer and manage the account. Any taxes

 

 

SB0529- 132 -LRB102 14240 SPS 19592 b

1due on the funds in the account, or interest earned on it, will
2be paid from the account or, if insufficient monies are
3available in the account, from the monies collected under the
4tariffed charges to recover the costs of procuring renewable
5energy resources. Monies deposited in the account shall be
6subject to the review, reconciliation, and true-up process
7described in this subsection (k) that is applicable to the
8funds collected and costs incurred for the procurement of
9renewable energy resources.
10    The electric utility shall be entitled to recover all of
11the costs identified in this subsection (k) through automatic
12adjustment clause tariffs applicable to all of the utility's
13retail customers that allow the electric utility to adjust its
14tariffed charges consistent with this subsection (k). The
15determination as to whether any excess funds were collected
16during a given delivery year for the purchase of renewable
17energy resources, and the crediting of any excess funds back
18to retail customers, shall not be made until after the close of
19the delivery year, which will ensure that the maximum amount
20of funds is available to implement the approved long-term
21renewable resources procurement plan during a given delivery
22year. The electric utility's collections under such automatic
23adjustment clause tariffs to recover the costs of renewable
24energy resources and zero emission credits from zero emission
25facilities shall be subject to separate annual review,
26reconciliation, and true-up against actual costs by the

 

 

SB0529- 133 -LRB102 14240 SPS 19592 b

1Commission under a procedure that shall be specified in the
2electric utility's automatic adjustment clause tariffs and
3that shall be approved by the Commission in connection with
4its approval of such tariffs. The procedure shall provide that
5any difference between the electric utility's collections
6under the automatic adjustment charges for an annual period
7and the electric utility's actual costs of renewable energy
8resources and zero emission credits from zero emission
9facilities for that same annual period shall be refunded to or
10collected from, as applicable, the electric utility's retail
11customers in subsequent periods.
12    Nothing in this subsection (k) is intended to affect,
13limit, or change the right of the electric utility to recover
14the costs associated with the procurement of renewable energy
15resources for periods commencing before, on, or after June 1,
162017, as otherwise provided in the Illinois Power Agency Act.
17    Notwithstanding anything to the contrary, the Commission
18shall not conduct an annual review, reconciliation, and
19true-up associated with renewable energy resources'
20collections and costs for the delivery years commencing June
211, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and
22shall instead conduct a single review, reconciliation, and
23true-up associated with renewable energy resources'
24collections and costs for the 4-year period beginning June 1,
252017 and ending May 31, 2021, provided that the review,
26reconciliation, and true-up shall not be initiated until after

 

 

SB0529- 134 -LRB102 14240 SPS 19592 b

1August 31, 2021. During the 4-year period, the utility shall
2be permitted to collect and retain funds under this subsection
3(k) and to purchase renewable energy resources under an
4approved long-term renewable resources procurement plan using
5those funds regardless of the delivery year in which the funds
6were collected during the 4-year period.
7    If the amount of funds collected during the delivery year
8commencing June 1, 2017, exceeds the costs incurred during
9that delivery year, then up to half of this excess amount, as
10calculated on June 1, 2018, may be used to fund the programs
11under subsection (b) of Section 1-56 of the Illinois Power
12Agency Act in the same proportion the programs are funded
13under that subsection (b). However, any amount identified
14under this subsection (k) to fund programs under subsection
15(b) of Section 1-56 of the Illinois Power Agency Act shall be
16reduced if it exceeds the funding shortfall. For purposes of
17this Section, "funding shortfall" means the difference between
18$200,000,000 and the amount appropriated by the General
19Assembly to the Illinois Power Agency Renewable Energy
20Resources Fund during the period that commences on the
21effective date of this amendatory act of the 99th General
22Assembly and ends on August 1, 2018.
23    If the amount of funds collected during the delivery year
24commencing June 1, 2018, exceeds the costs incurred during
25that delivery year, then up to half of this excess amount, as
26calculated on June 1, 2019, may be used to fund the programs

 

 

SB0529- 135 -LRB102 14240 SPS 19592 b

1under subsection (b) of Section 1-56 of the Illinois Power
2Agency Act in the same proportion the programs are funded
3under that subsection (b). However, any amount identified
4under this subsection (k) to fund programs under subsection
5(b) of Section 1-56 of the Illinois Power Agency Act shall be
6reduced if it exceeds the funding shortfall.
7    If the amount of funds collected during the delivery year
8commencing June 1, 2019, exceeds the costs incurred during
9that delivery year, then up to half of this excess amount, as
10calculated on June 1, 2020, may be used to fund the programs
11under subsection (b) of Section 1-56 of the Illinois Power
12Agency Act in the same proportion the programs are funded
13under that subsection (b). However, any amount identified
14under this subsection (k) to fund programs under subsection
15(b) of Section 1-56 of the Illinois Power Agency Act shall be
16reduced if it exceeds the funding shortfall.
17    The funding available under this subsection (k), if any,
18for the programs described under subsection (b) of Section
191-56 of the Illinois Power Agency Act shall not reduce the
20amount of funding for the programs described in subparagraph
21(O) of paragraph (1) of subsection (c) of Section 1-75 of the
22Illinois Power Agency Act. If funding is available under this
23subsection (k) for programs described under subsection (b) of
24Section 1-56 of the Illinois Power Agency Act, then the
25long-term renewable resources plan shall provide for the
26Agency to procure contracts in an amount that does not exceed

 

 

SB0529- 136 -LRB102 14240 SPS 19592 b

1the funding, and the contracts approved by the Commission
2shall be executed by the applicable utility or utilities.
3    (l) A utility that has terminated any contract executed
4under subsection (d-5) of Section 1-75 of the Illinois Power
5Agency Act shall be entitled to recover any remaining balance
6associated with the purchase of zero emission credits prior to
7such termination, and such utility shall also apply a credit
8to its retail customer bills in the event of any
9over-collection.
10        (m)(1) An electric utility that recovers its costs of
11    procuring zero emission credits from zero emission
12    facilities through a cents-per-kilowatthour charge under
13    to subsection (k) of this Section shall be subject to the
14    requirements of this subsection (m). Notwithstanding
15    anything to the contrary, such electric utility shall,
16    beginning on April 30, 2018, and each April 30 thereafter
17    until April 30, 2026, calculate whether any reduction must
18    be applied to such cents-per-kilowatthour charge that is
19    paid by retail customers of the electric utility that are
20    exempt from subsections (a) through (j) of Section 8-103B
21    of this Act under subsection (l) of Section 8-103B. Such
22    charge shall be reduced for such customers for the next
23    delivery year commencing on June 1 based on the amount
24    necessary, if any, to limit the annual estimated average
25    net increase for the prior calendar year due to the future
26    energy investment costs to no more than 1.3% of 5.98 cents

 

 

SB0529- 137 -LRB102 14240 SPS 19592 b

1    per kilowatt-hour, which is the average amount paid per
2    kilowatthour for electric service during the year ending
3    December 31, 2015 by Illinois industrial retail customers,
4    as reported to the Edison Electric Institute.
5        The calculations required by this subsection (m) shall
6    be made only once for each year, and no subsequent rate
7    impact determinations shall be made.
8        (2) For purposes of this Section, "future energy
9    investment costs" shall be calculated by subtracting the
10    cents-per-kilowatthour charge identified in subparagraph
11    (A) of this paragraph (2) from the sum of the
12    cents-per-kilowatthour charges identified in subparagraph
13    (B) of this paragraph (2):
14            (A) The cents-per-kilowatthour charge identified
15        in the electric utility's tariff placed into effect
16        under Section 8-103 of the Public Utilities Act that,
17        on December 1, 2016, was applicable to those retail
18        customers that are exempt from subsections (a) through
19        (j) of Section 8-103B of this Act under subsection (l)
20        of Section 8-103B.
21            (B) The sum of the following
22        cents-per-kilowatthour charges applicable to those
23        retail customers that are exempt from subsections (a)
24        through (j) of Section 8-103B of this Act under
25        subsection (l) of Section 8-103B, provided that if one
26        or more of the following charges has been in effect and

 

 

SB0529- 138 -LRB102 14240 SPS 19592 b

1        applied to such customers for more than one calendar
2        year, then each charge shall be equal to the average of
3        the charges applied over a period that commences with
4        the calendar year ending December 31, 2017 and ends
5        with the most recently completed calendar year prior
6        to the calculation required by this subsection (m):
7                (i) the cents-per-kilowatthour charge to
8            recover the costs incurred by the utility under
9            subsection (d-5) of Section 1-75 of the Illinois
10            Power Agency Act, adjusted for any reductions
11            required under this subsection (m); and
12                (ii) the cents-per-kilowatthour charge to
13            recover the costs incurred by the utility under
14            Section 16-107.6 of the Public Utilities Act.
15            If no charge was applied for a given calendar year
16        under item (i) or (ii) of this subparagraph (B), then
17        the value of the charge for that year shall be zero.
18        (3) If a reduction is required by the calculation
19    performed under this subsection (m), then the amount of
20    the reduction shall be multiplied by the number of years
21    reflected in the averages calculated under subparagraph
22    (B) of paragraph (2) of this subsection (m). Such
23    reduction shall be applied to the cents-per-kilowatthour
24    charge that is applicable to those retail customers that
25    are exempt from subsections (a) through (j) of Section
26    8-103B of this Act under subsection (l) of Section 8-103B

 

 

SB0529- 139 -LRB102 14240 SPS 19592 b

1    beginning with the next delivery year commencing after the
2    date of the calculation required by this subsection (m).
3        (4) The electric utility shall file a notice with the
4    Commission on May 1 of 2018 and each May 1 thereafter until
5    May 1, 2026 containing the reduction, if any, which must
6    be applied for the delivery year which begins in the year
7    of the filing. The notice shall contain the calculations
8    made pursuant to this Section. By October 1 of each year
9    beginning in 2018, each electric utility shall notify the
10    Commission if it appears, based on an estimate of the
11    calculation required in this subsection (m), that a
12    reduction will be required in the next year.
13(Source: P.A. 99-906, eff. 6-1-17.)
 
14    (220 ILCS 5/16-111.5)
15    Sec. 16-111.5. Provisions relating to procurement.
16    (a) An electric utility that on December 31, 2005 served
17at least 100,000 customers in Illinois shall procure power and
18energy for its eligible retail customers in accordance with
19the applicable provisions set forth in Section 1-75 of the
20Illinois Power Agency Act and this Section. Beginning with the
21delivery year commencing on June 1, 2017, such electric
22utility shall also procure zero emission credits from zero
23emission facilities in accordance with the applicable
24provisions set forth in Section 1-75 of the Illinois Power
25Agency Act, and, for years beginning on or after June 1, 2017,

 

 

SB0529- 140 -LRB102 14240 SPS 19592 b

1the utility shall procure renewable energy resources in
2accordance with the applicable provisions set forth in Section
31-75 of the Illinois Power Agency Act and this Section. A small
4multi-jurisdictional electric utility that on December 31,
52005 served less than 100,000 customers in Illinois may elect
6to procure power and energy for all or a portion of its
7eligible Illinois retail customers in accordance with the
8applicable provisions set forth in this Section and Section
91-75 of the Illinois Power Agency Act. This Section shall not
10apply to a small multi-jurisdictional utility until such time
11as a small multi-jurisdictional utility requests the Illinois
12Power Agency to prepare a procurement plan for its eligible
13retail customers. "Eligible retail customers" for the purposes
14of this Section means those retail customers that purchase
15power and energy from the electric utility under fixed-price
16bundled service tariffs, other than those retail customers
17whose service is declared or deemed competitive under Section
1816-113 and those other customer groups specified in this
19Section, including self-generating customers, customers
20electing hourly pricing, or those customers who are otherwise
21ineligible for fixed-price bundled tariff service. For those
22customers that are excluded from the procurement plan's
23electric supply service requirements, and the utility shall
24procure any supply requirements, including capacity, ancillary
25services, and hourly priced energy, in the applicable markets
26as needed to serve those customers, provided that the utility

 

 

SB0529- 141 -LRB102 14240 SPS 19592 b

1may include in its procurement plan load requirements for the
2load that is associated with those retail customers whose
3service has been declared or deemed competitive pursuant to
4Section 16-113 of this Act to the extent that those customers
5are purchasing power and energy during one of the transition
6periods identified in subsection (b) of Section 16-113 of this
7Act.
8    (b) A procurement plan shall be prepared for each electric
9utility consistent with the applicable requirements of the
10Illinois Power Agency Act and this Section. For purposes of
11this Section, Illinois electric utilities that are affiliated
12by virtue of a common parent company are considered to be a
13single electric utility. Small multi-jurisdictional utilities
14may request a procurement plan for a portion of or all of its
15Illinois load. Each procurement plan shall analyze the
16projected balance of supply and demand for those retail
17customers to be included in the plan's electric supply service
18requirements over a 5-year period, with the first planning
19year beginning on June 1 of the year following the year in
20which the plan is filed. The plan shall specifically identify
21the wholesale products to be procured following plan approval,
22and shall follow all the requirements set forth in the Public
23Utilities Act and all applicable State and federal laws,
24statutes, rules, or regulations, as well as Commission orders.
25Nothing in this Section precludes consideration of contracts
26longer than 5 years and related forecast data. Unless

 

 

SB0529- 142 -LRB102 14240 SPS 19592 b

1specified otherwise in this Section, in the procurement plan
2or in the implementing tariff, any procurement occurring in
3accordance with this plan shall be competitively bid through a
4request for proposals process. Approval and implementation of
5the procurement plan shall be subject to review and approval
6by the Commission according to the provisions set forth in
7this Section. A procurement plan shall include each of the
8following components:
9        (1) Hourly load analysis. This analysis shall include:
10            (i) multi-year historical analysis of hourly
11        loads;
12            (ii) switching trends and competitive retail
13        market analysis;
14            (iii) known or projected changes to future loads;
15        and
16            (iv) growth forecasts by customer class.
17        (2) Analysis of the impact of any demand side and
18    renewable energy initiatives. This analysis shall include:
19            (i) the impact of demand response programs and
20        energy efficiency programs, both current and
21        projected; for small multi-jurisdictional utilities,
22        the impact of demand response and energy efficiency
23        programs approved pursuant to Section 8-408 of this
24        Act, both current and projected; and
25            (ii) supply side needs that are projected to be
26        offset by purchases of renewable energy resources, if

 

 

SB0529- 143 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 144 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 145 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 146 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 147 -LRB102 14240 SPS 19592 b

1            processes conducted under this Section. The
2            initial long-term renewable resources procurement
3            plan shall:
4                    (aa) Identify the procurement programs and
5                competitive procurement events consistent with
6                the applicable requirements of the Illinois
7                Power Agency Act and shall be designed to
8                achieve the goals set forth in subsection (c)
9                of Section 1-75 of that Act.
10                    (bb) Include a schedule for procurements
11                for renewable energy credits from
12                utility-scale wind projects, utility-scale
13                solar projects, and brownfield site
14                photovoltaic projects consistent with
15                subparagraph (G) of paragraph (1) of
16                subsection (c) of Section 1-75 of the Illinois
17                Power Agency Act.
18                    (cc) Identify the process whereby the
19                Agency will submit to the Commission for
20                review and approval the proposed contracts to
21                implement the programs required by such plan.
22                Copies of the initial long-term renewable
23            resources procurement plan and all subsequent
24            revisions shall be posted and made publicly
25            available on the Agency's and Commission's
26            websites, and copies shall also be provided to

 

 

SB0529- 148 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 149 -LRB102 14240 SPS 19592 b

1            the plan, the Commission shall determine whether a
2            hearing is necessary. The Commission shall enter
3            its order confirming or modifying the initial
4            long-term renewable resources procurement plan or
5            any subsequent revisions within 120 days after the
6            filing of the plan by the Illinois Power Agency.
7                (D) The Commission shall approve the initial
8            long-term renewable resources procurement plan and
9            any subsequent revisions, including expressly the
10            forecast used in the plan and taking into account
11            that funding will be limited to the amount of
12            revenues actually collected by the utilities, if
13            the Commission determines that the plan will
14            reasonably and prudently accomplish the
15            requirements of Section 1-56 and subsection (c) of
16            Section 1-75 of the Illinois Power Agency Act. The
17            Commission shall also approve the process for the
18            submission, review, and approval of the proposed
19            contracts to procure renewable energy credits or
20            implement the programs authorized by the
21            Commission pursuant to a long-term renewable
22            resources procurement plan approved under this
23            Section.
24            (iii) The Agency or third parties contracted by
25        the Agency shall implement all programs authorized by
26        the Commission in an approved long-term renewable

 

 

SB0529- 150 -LRB102 14240 SPS 19592 b

1        resources procurement plan without further review and
2        approval by the Commission. Third parties shall not
3        begin implementing any programs or receive any payment
4        under this Section until the Commission has approved
5        the contract or contracts under the process authorized
6        by the Commission in item (D) of subparagraph (ii) of
7        paragraph (5) of this subsection (b) and the third
8        party and the Agency or utility, as applicable, have
9        executed the contract. For those renewable energy
10        credits subject to procurement through a competitive
11        bid process under the plan or under the initial
12        forward procurements for wind and solar resources
13        described in subparagraph (G) of paragraph (1) of
14        subsection (c) of Section 1-75 of the Illinois Power
15        Agency Act, the Agency shall follow the procurement
16        process specified in the provisions relating to
17        electricity procurement in subsections (e) through (i)
18        of this Section.
19            (iv) An electric utility shall recover its costs
20        associated with the procurement of renewable energy
21        credits under this Section and pursuant to subsection
22        (c-5) of Section 1-75 of the Illinois Power Agency Act
23        through an automatic adjustment clause tariff or
24        tariffs under subsection (k) or subsection (i-5) of
25        Section 16-108 of this Act, as applicable. A utility
26        shall not be required to advance any payment or pay any

 

 

SB0529- 151 -LRB102 14240 SPS 19592 b

1        amounts under this Section that exceed the actual
2        amount of revenues collected by the utility under
3        paragraph (6) of subsection (c) of Section 1-75 of the
4        Illinois Power Agency Act, subsection (c-5) of Section
5        1-75 of the Illinois Power Agency Act, and subsection
6        (k) or subsection (i-5) of Section 16-108 of this Act,
7        as applicable, and contracts executed under this
8        Section shall expressly incorporate this limitation.
9            (v) For the public interest, safety, and welfare,
10        the Agency and the Commission may adopt rules to carry
11        out the provisions of this Section on an emergency
12        basis immediately following the effective date of this
13        amendatory Act of the 99th General Assembly.
14            (vi) On or before July 1 of each year, the
15        Commission shall hold an informal hearing for the
16        purpose of receiving comments on the prior year's
17        procurement process and any recommendations for
18        change.
19    (b-5) An electric utility that as of January 1, 2019
20served more than 300,000 retail customers in this State shall
21purchase renewable energy credits from new renewable energy
22resources constructed at or adjacent to the sites of
23coal-fueled electric generating facilities in this State in
24accordance with subsection (c-5) of Section 1-75 of the
25Illinois Power Agency Act. Except as expressly provided in
26this Section, the plans and procedures for such procurements

 

 

SB0529- 152 -LRB102 14240 SPS 19592 b

1shall not be included in the procurement plans provided for in
2this Section, but rather shall be conducted and implemented
3solely in accordance with subsection (c-5) of Section 1-75 of
4the Illinois Power Agency Act.
5    (c) The provisions of this subsection (c) shall not apply
6to procurements conducted pursuant to subsection (c-5) of
7Section 1-75 of the Illinois Power Agency Act. However, the
8Agency may retain a procurement administrator to assist the
9Agency in planning and carrying out the procurement event and
10implementing the other requirements specified in subsection
11(c-5) of Section 1-75 of the Illinois Power Agency Act, with
12the costs incurred by the Agency for the procurement
13administrator to be recovered through fees charged to
14applicants for selection to sell and deliver renewable energy
15credits to electric utilities pursuant to such subsection
16(c-5). The procurement process set forth in Section 1-75 of
17the Illinois Power Agency Act and subsection (e) of this
18Section shall be administered by a procurement administrator
19and monitored by a procurement monitor.
20        (1) The procurement administrator shall:
21            (i) design the final procurement process in
22        accordance with Section 1-75 of the Illinois Power
23        Agency Act and subsection (e) of this Section
24        following Commission approval of the procurement plan;
25            (ii) develop benchmarks in accordance with
26            subsection (e)(3) to be used to evaluate bids;

 

 

SB0529- 153 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 154 -LRB102 14240 SPS 19592 b

1            (ix) submit a confidential report to the
2        Commission recommending acceptance or rejection of
3        bids;
4            (x) notify the utility of contract counterparties
5        and contract specifics; and
6            (xi) administer related contingency procurement
7        events.
8        (2) The procurement monitor, who shall be retained by
9    the Commission, shall:
10            (i) monitor interactions among the procurement
11        administrator, suppliers, and utility;
12            (ii) monitor and report to the Commission on the
13        progress of the procurement process;
14            (iii) provide an independent confidential report
15        to the Commission regarding the results of the
16        procurement event;
17            (iv) assess compliance with the procurement plans
18        approved by the Commission for each utility that on
19        December 31, 2005 provided electric service to at
20        least 100,000 customers in Illinois and for each small
21        multi-jurisdictional utility that on December 31, 2005
22        served less than 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

 

 

SB0529- 155 -LRB102 14240 SPS 19592 b

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
15    cover 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 those retail customers included
19    in the plan's electric supply service requirements. The
20    utility shall provide supporting data and assumptions for
21    each of the scenarios.
22        (2) Beginning in 2008, the Illinois Power Agency shall
23    prepare a procurement plan by August 15th of each year, or
24    such other date as may be required by the Commission. The
25    procurement plan shall identify the portfolio of
26    demand-response and power and energy products to be

 

 

SB0529- 156 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 157 -LRB102 14240 SPS 19592 b

1    after the filing, the Commission shall determine whether a
2    hearing is necessary. The Commission shall enter its order
3    confirming or modifying the procurement plan within 90
4    days after the filing of the procurement plan by the
5    Illinois Power Agency.
6        (4) The Commission shall approve the procurement plan,
7    including expressly the forecast used in the procurement
8    plan, if the Commission determines that it will ensure
9    adequate, reliable, affordable, efficient, and
10    environmentally sustainable electric service at the lowest
11    total cost over time, taking into account any benefits of
12    price stability.
13        (4.5) The Commission shall review and approve the
14    Agency's recommendation for the selection of applicants to
15    enter into long-term contracts for the sale and delivery
16    of renewable energy credits from new renewable energy
17    resources to be constructed at or adjacent to the sites of
18    coal-fueled electric generating facilities in this State
19    in accordance with the provisions of subsection (c-5) of
20    Section 1-75 of the Illinois Power Agency Act, if the
21    Commission determines that the applicants recommended by
22    the Agency for selection, the proposed new renewable
23    energy resources to be constructed, the amounts of
24    renewable energy credits to be delivered pursuant to such
25    contracts, and the other terms of the contracts, are
26    consistent with the requirements of subsection (c-5) of

 

 

SB0529- 158 -LRB102 14240 SPS 19592 b

1    Section 1-75 of the Illinois Power Agency Act.
2    (e) The procurement process shall include each of the
3following components:
4        (1) Solicitation, pre-qualification, and registration
5    of bidders. The procurement administrator shall
6    disseminate information to potential bidders to promote a
7    procurement event, notify potential bidders that the
8    procurement administrator may enter into a post-bid price
9    negotiation with bidders that meet the applicable
10    benchmarks, provide supply requirements, and otherwise
11    explain the competitive procurement process. In addition
12    to such other publication as the procurement administrator
13    determines is appropriate, this information shall be
14    posted on the Illinois Power Agency's and the Commission's
15    websites. The procurement administrator shall also
16    administer the prequalification process, including
17    evaluation of credit worthiness, compliance with
18    procurement rules, and agreement to the standard form
19    contract developed pursuant to paragraph (2) of this
20    subsection (e). The procurement administrator shall then
21    identify and register bidders to participate in the
22    procurement event.
23        (2) Standard contract forms and credit terms and
24    instruments. The procurement administrator, in
25    consultation with the utilities, the Commission, and other
26    interested parties and subject to Commission oversight,

 

 

SB0529- 159 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 160 -LRB102 14240 SPS 19592 b

1    difference. The price benchmarks may also be adjusted to
2    take into account differences between the information
3    reflected in the underlying data sources and the specific
4    products and procurement process being used to procure
5    power for the Illinois utilities. The benchmarks shall be
6    confidential but shall be provided to, and will be subject
7    to Commission review and approval, prior to a procurement
8    event.
9        (4) Request for proposals competitive procurement
10    process. The procurement administrator shall design and
11    issue a request for proposals to supply electricity in
12    accordance with each utility's procurement plan, as
13    approved by the Commission. The request for proposals
14    shall set forth a procedure for sealed, binding commitment
15    bidding with pay-as-bid settlement, and provision for
16    selection of bids on the basis of price.
17        (5) A plan for implementing contingencies in the event
18    of supplier default or failure of the procurement process
19    to fully meet the expected load requirement due to
20    insufficient supplier participation, Commission rejection
21    of results, or any other cause.
22            (i) Event of supplier default: In the event of
23        supplier default, the utility shall review the
24        contract of the defaulting supplier to determine if
25        the amount of supply is 200 megawatts or greater, and
26        if there are more than 60 days remaining of the

 

 

SB0529- 161 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 162 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 163 -LRB102 14240 SPS 19592 b

1    this subsection and in subsection (c-5) of Section 1-75 of
2    the Illinois Power Agency Act are is exempt from the
3    requirements of the Illinois Procurement Code, pursuant to
4    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
11and other factors observed in the process. The procurement
12monitor also shall submit a confidential report to the
13Commission within 2 business days after opening the sealed
14bids. The report shall contain the procurement monitor's
15assessment of bidder behavior in the process as well as an
16assessment of the procurement administrator's compliance with
17the procurement process and rules. The Commission shall review
18the confidential reports submitted by the procurement
19administrator and procurement monitor, and shall accept or
20reject the recommendations of the procurement administrator
21within 2 business 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
24shall enter into binding contractual arrangements with the
25winning suppliers using the standard form contracts; except
26that the utility shall not be required either directly or

 

 

SB0529- 164 -LRB102 14240 SPS 19592 b

1indirectly to execute the contracts if a tariff that is
2consistent with subsection (l) of this Section has not been
3approved and placed into 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
23date as may be required by the Commission from time to time,
24the utility shall file for informational purposes with the
25Commission its actual or estimated retail supply charges, as
26applicable, by customer supply group reflecting the costs

 

 

SB0529- 165 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 166 -LRB102 14240 SPS 19592 b

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
7    is necessary. If it determines that a hearing is
8    necessary, it shall require the hearing to be completed
9    and issue an order on the procurement plan within 60 days
10    after the filing of the procurement plan by the electric
11    utility.
12        (ii) The order shall approve or modify the procurement
13    plan, approve an independent procurement administrator,
14    and approve or modify the electric utility's tariffs that
15    are proposed with the initial procurement plan. The
16    Commission shall approve the procurement plan if the
17    Commission determines that it will ensure adequate,
18    reliable, affordable, efficient, and environmentally
19    sustainable electric service at the lowest total cost over
20    time, taking into account any benefits of price stability.
21    (k) (Blank).
22    (k-5) (Blank).
23    (l) An electric utility shall recover its costs incurred
24under this Section and subsection (c-5) of Section 1-75 of the
25Illinois Power Agency Act, including, but not limited to, the
26costs of procuring power and energy demand-response resources

 

 

SB0529- 167 -LRB102 14240 SPS 19592 b

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

 

 

SB0529- 168 -LRB102 14240 SPS 19592 b

1costs associated with load balancing, and contingency plan
2costs. The electric utility shall also recover its full costs
3of procuring electric supply for which it contracted before
4the effective date of this Section in conjunction with the
5provision of full requirements service under fixed-price
6bundled service tariffs subsequent to December 31, 2006. All
7such costs shall be deemed to have been prudently incurred.
8The pass-through tariffs that are filed and approved pursuant
9to this Section shall not be subject to review under, or in any
10way limited by, Section 16-111(i) of this Act. All of the costs
11incurred by the electric utility associated with the purchase
12of zero emission credits in accordance with subsection (d-5)
13of Section 1-75 of the Illinois Power Agency Act and,
14beginning June 1, 2017, all of the costs incurred by the
15electric utility associated with the purchase of renewable
16energy resources in accordance with Sections 1-56 and 1-75 of
17the Illinois Power Agency Act, and all of the costs incurred by
18the electric utility in purchasing renewable energy credits in
19accordance with subsection (c-5) of Section 1-75 of the
20Illinois Power Agency Act, shall be recovered through the
21electric utility's tariffed charges applicable to all of its
22retail customers, as specified in subsection (k) or subsection
23(i-5), as applicable, of Section 16-108 of this Act, and shall
24not be recovered through the electric utility's tariffed
25charges for electric power and energy supply to its eligible
26retail customers.

 

 

SB0529- 169 -LRB102 14240 SPS 19592 b

1    (m) The Commission has the authority to adopt rules to
2carry out the provisions of this Section. For the public
3interest, safety, and welfare, the Commission also has
4authority to adopt rules to carry out the provisions of this
5Section on an emergency basis immediately following August 28,
62007 (the effective date of Public Act 95-481).
7    (n) Notwithstanding any other provision of this Act, any
8affiliated electric utilities that submit a single procurement
9plan covering their combined needs may procure for those
10combined needs in conjunction with that plan, and may enter
11jointly into power supply contracts, purchases, and other
12procurement arrangements, and allocate capacity and energy and
13cost responsibility therefor among themselves in proportion to
14their requirements.
15    (o) On or before June 1 of each year, the Commission shall
16hold an informal hearing for the purpose of receiving comments
17on the prior year's procurement process and any
18recommendations for change.
19    (p) An electric utility subject to this Section may
20propose to invest, lease, own, or operate an electric
21generation facility as part of its procurement plan, provided
22the utility demonstrates that such facility is the least-cost
23option to provide electric service to those retail customers
24included in the plan's electric supply service requirements.
25If the facility is shown to be the least-cost option and is
26included in a procurement plan prepared in accordance with

 

 

SB0529- 170 -LRB102 14240 SPS 19592 b

1Section 1-75 of the Illinois Power Agency Act and this
2Section, then the electric utility shall make a filing
3pursuant to Section 8-406 of this Act, and may request of the
4Commission any statutory relief required thereunder. If the
5Commission grants all of the necessary approvals for the
6proposed facility, such supply shall thereafter be considered
7as a pre-existing contract under subsection (b) of this
8Section. The Commission shall in any order approving a
9proposal under this subsection specify how the utility will
10recover the prudently incurred costs of investing in, leasing,
11owning, or operating such generation facility through just and
12reasonable rates charged to those retail customers included in
13the plan's electric supply service requirements. Cost recovery
14for facilities included in the utility's procurement plan
15pursuant to this subsection shall not be subject to review
16under or in any way limited by the provisions of Section
1716-111(i) of this Act. Nothing in this Section is intended to
18prohibit a utility from filing for a fuel adjustment clause as
19is otherwise permitted under Section 9-220 of this Act.
20    (q) If the Illinois Power Agency filed with the
21Commission, under Section 16-111.5 of this Act, its proposed
22procurement plan for the period commencing June 1, 2017, and
23the Commission has not yet entered its final order approving
24the plan on or before the effective date of this amendatory Act
25of the 99th General Assembly, then the Illinois Power Agency
26shall file a notice of withdrawal with the Commission, after

 

 

SB0529- 171 -LRB102 14240 SPS 19592 b

1the effective date of this amendatory Act of the 99th General
2Assembly, to withdraw the proposed procurement of renewable
3energy resources to be approved under the plan, other than the
4procurement of renewable energy credits from distributed
5renewable energy generation devices using funds previously
6collected from electric utilities' retail customers that take
7service pursuant to electric utilities' hourly pricing tariff
8or tariffs and, for an electric utility that serves less than
9100,000 retail customers in the State, other than the
10procurement of renewable energy credits from distributed
11renewable energy generation devices. Upon receipt of the
12notice, the Commission shall enter an order that approves the
13withdrawal of the proposed procurement of renewable energy
14resources from the plan. The initially proposed procurement of
15renewable energy resources shall not be approved or be the
16subject of any further hearing, investigation, proceeding, or
17order of any kind.
18    This amendatory Act of the 99th General Assembly preempts
19and supersedes any order entered by the Commission that
20approved the Illinois Power Agency's procurement plan for the
21period commencing June 1, 2017, to the extent it is
22inconsistent with the provisions of this amendatory Act of the
2399th General Assembly. To the extent any previously entered
24order approved the procurement of renewable energy resources,
25the portion of that order approving the procurement shall be
26void, other than the procurement of renewable energy credits

 

 

SB0529- 172 -LRB102 14240 SPS 19592 b

1from distributed renewable energy generation devices using
2funds previously collected from electric utilities' retail
3customers that take service under electric utilities' hourly
4pricing tariff or tariffs and, for an electric utility that
5serves less than 100,000 retail customers in the State, other
6than the procurement of renewable energy credits for
7distributed renewable energy generation devices.
8(Source: P.A. 99-906, eff. 6-1-17.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.