Rep. Gary Hannig

Filed: 5/31/2008

 

 


 

 


 
09500SB1987ham002 LRB095 14199 MJR 51811 a

1
AMENDMENT TO SENATE BILL 1987

2     AMENDMENT NO. ______. Amend Senate Bill 1987 by replacing
3 everything after the enacting clause with the following:
 
4
"ARTICLE 1

 
5     Section 1-1. Short title. This Article may be cited as the
6 Clean Coal Portfolio Standard Law.
 
7     Section 1-5. The Illinois Power Agency Act is amended by
8 changing Sections 1-5, 1-10, 1-75, and 1-80 as follows:
 
9     (20 ILCS 3855/1-5)
10     Sec. 1-5. Legislative declarations and findings. The
11 General Assembly finds and declares:
12         (1) The health, welfare, and prosperity of all Illinois
13     citizens require the provision of adequate, reliable,
14     affordable, efficient, and environmentally sustainable

 

 

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1     electric service at the lowest total cost over time, taking
2     into account any benefits of price stability.
3         (2) The transition to retail competition is not
4     complete. Some customers, especially residential and small
5     commercial customers, have failed to benefit from lower
6     electricity costs from retail and wholesale competition.
7         (3) Escalating prices for electricity in Illinois pose
8     a serious threat to the economic well-being, health, and
9     safety of the residents of and the commerce and industry of
10     the State.
11         (4) To protect against this threat to economic
12     well-being, health, and safety it is necessary to improve
13     the process of procuring electricity to serve Illinois
14     residents, to promote investment in energy efficiency and
15     demand-response measures, and to support development of
16     clean coal technologies and renewable resources.
17         (5) Procuring a diverse electricity supply portfolio
18     will ensure the lowest total cost over time for adequate,
19     reliable, efficient, and environmentally sustainable
20     electric service.
21         (6) Including cost-effective renewable resources in
22     that portfolio will reduce long-term direct and indirect
23     costs to consumers by decreasing environmental impacts and
24     by avoiding or delaying the need for new generation,
25     transmission, and distribution infrastructure.
26         (7) Energy efficiency, demand-response measures, and

 

 

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1     renewable energy are resources currently underused in
2     Illinois.
3         (8) The State should encourage the use of advanced
4     clean coal technologies that capture and sequester carbon
5     dioxide emissions to advance environmental protection
6     goals and to demonstrate the viability of coal and
7     coal-derived fuels in a carbon-constrained economy.
8     The General Assembly therefore finds that it is necessary
9 to create the Illinois Power Agency and that the goals and
10 objectives of that Agency are to accomplish each of the
11 following:
12         (A) Develop electricity procurement plans to ensure
13     adequate, reliable, affordable, efficient, and
14     environmentally sustainable electric service at the lowest
15     total cost over time, taking into account any benefits of
16     price stability, for electric utilities that on December
17     31, 2005 provided electric service to at least 100,000
18     customers in Illinois. The procurement plan shall be
19     updated on an annual basis and shall include renewable
20     energy resources sufficient to achieve the standards
21     specified in this Act.
22         (B) Conduct competitive procurement processes to
23     procure the supply resources identified in the procurement
24     plan.
25         (C) Develop electric generation and co-generation
26     facilities that use indigenous coal or renewable

 

 

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1     resources, or both, financed with bonds issued by the
2     Illinois Finance Authority.
3         (D) Supply electricity from the Agency's facilities at
4     cost to one or more of the following: municipal electric
5     systems, governmental aggregators, or rural electric
6     cooperatives in Illinois.
7 (Source: P.A. 95-481, eff. 8-28-07.)
 
8     (20 ILCS 3855/1-10)
9     Sec. 1-10. Definitions.
10     "Agency" means the Illinois Power Agency.
11     "Agency loan agreement" means any agreement pursuant to
12 which the Illinois Finance Authority agrees to loan the
13 proceeds of revenue bonds issued with respect to a project to
14 the Agency upon terms providing for loan repayment installments
15 at least sufficient to pay when due all principal of, interest
16 and premium, if any, on those revenue bonds, and providing for
17 maintenance, insurance, and other matters in respect of the
18 project.
19     "Authority" means the Illinois Finance Authority.
20     "Clean coal facility" means an electric generating
21 facility that uses primarily coal as a feedstock and that
22 captures and sequesters carbon emissions at the following
23 levels: at least 50% of the total carbon emissions that the
24 facility would otherwise emit if, at the time construction
25 commences, the facility is scheduled to commence operation

 

 

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1 before 2015, at least 70% of the total carbon emissions that
2 the facility would otherwise emit if, at the time construction
3 commences, the facility is scheduled to commence operation
4 during 2015 or 2016, and at least 90% of the total carbon
5 emissions that the facility would otherwise emit if, at the
6 time construction commences, the facility is scheduled to
7 commence operation after 2016. The power block of the clean
8 coal facility shall not exceed allowable emission rates for
9 sulfur dioxide, nitrogen oxides, carbon monoxide, particulates
10 and mercury for a natural gas-fired combined-cycle facility the
11 same size as and in the same location as the clean coal
12 facility at the time the clean coal facility obtains an
13 approved air permit. All coal used by a clean coal facility
14 shall have high volatile bituminous rank and greater than 1.7
15 pounds of sulfur per million btu content, unless the clean coal
16 facility does not use gasification technology and was operating
17 as a conventional coal-fired electric generating facility on
18 the effective date of this amendatory Act of the 95th General
19 Assembly.
20     "Clean coal SNG facility" means a facility that uses a
21 gasification process to produce substitute natural gas, that
22 sequesters at least 90% of the total carbon emissions that the
23 facility would otherwise emit and that uses coal as a
24 feedstock, with all such coal having a high bituminous rank and
25 greater than 1.7 pounds of sulfur per million btu content.
26     "Commission" means the Illinois Commerce Commission.

 

 

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1     "Costs incurred in connection with the development and
2 construction of a facility" means:
3         (1) the cost of acquisition of all real property and
4     improvements in connection therewith and equipment and
5     other property, rights, and easements acquired that are
6     deemed necessary for the operation and maintenance of the
7     facility;
8         (2) financing costs with respect to bonds, notes, and
9     other evidences of indebtedness of the Agency;
10         (3) all origination, commitment, utilization,
11     facility, placement, underwriting, syndication, credit
12     enhancement, and rating agency fees;
13         (4) engineering, design, procurement, consulting,
14     legal, accounting, title insurance, survey, appraisal,
15     escrow, trustee, collateral agency, interest rate hedging,
16     interest rate swap, capitalized interest and other
17     financing costs, and other expenses for professional
18     services; and
19         (5) the costs of plans, specifications, site study and
20     investigation, installation, surveys, other Agency costs
21     and estimates of costs, and other expenses necessary or
22     incidental to determining the feasibility of any project,
23     together with such other expenses as may be necessary or
24     incidental to the financing, insuring, acquisition, and
25     construction of a specific project and placing that project
26     in operation.

 

 

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1     "Department" means the Department of Commerce and Economic
2 Opportunity.
3     "Director" means the Director of the Illinois Power Agency.
4     "Demand-response" means measures that decrease peak
5 electricity demand or shift demand from peak to off-peak
6 periods.
7     "Energy efficiency" means measures that reduce the amount
8 of electricity required to achieve a given end use.
9     "Electric utility" has the same definition as found in
10 Section 16-102 of the Public Utilities Act.
11     "Facility" means an electric generating unit or a
12 co-generating unit that produces electricity along with
13 related equipment necessary to connect the facility to an
14 electric transmission or distribution system.
15     "Governmental aggregator" means one or more units of local
16 government that individually or collectively procure
17 electricity to serve residential retail electrical loads
18 located within its or their jurisdiction.
19     "Local government" means a unit of local government as
20 defined in Article VII of Section 1 of the Illinois
21 Constitution.
22     "Municipality" means a city, village, or incorporated
23 town.
24     "Person" means any natural person, firm, partnership,
25 corporation, either domestic or foreign, company, association,
26 limited liability company, joint stock company, or association

 

 

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1 and includes any trustee, receiver, assignee, or personal
2 representative thereof.
3     "Project" means the planning, bidding, and construction of
4 a facility.
5     "Public utility" has the same definition as found in
6 Section 3-105 of the Public Utilities Act.
7     "Real property" means any interest in land together with
8 all structures, fixtures, and improvements thereon, including
9 lands under water and riparian rights, any easements,
10 covenants, licenses, leases, rights-of-way, uses, and other
11 interests, together with any liens, judgments, mortgages, or
12 other claims or security interests related to real property.
13     "Renewable energy credit" means a tradable credit that
14 represents the environmental attributes of a certain amount of
15 energy produced from a renewable energy resource.
16     "Renewable energy resources" includes energy and its
17 associated renewable energy credit or renewable energy credits
18 from wind, solar thermal energy, photovoltaic cells and panels,
19 biodiesel, crops and untreated and unadulterated organic waste
20 biomass, trees and tree trimmings, hydropower that does not
21 involve new construction or significant expansion of
22 hydropower dams, and other alternative sources of
23 environmentally preferable energy. For purposes of this Act,
24 landfill gas produced in the State is considered a renewable
25 energy resource. "Renewable energy resources" does not include
26 the incineration, burning, or heating of tires, garbage,

 

 

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1 general household, institutional, and commercial waste,
2 industrial lunchroom or office waste, landscape waste other
3 than trees and tree trimmings, railroad crossties, utility
4 poles, and construction or demolition debris, other than
5 untreated and unadulterated waste wood.
6     "Revenue bond" means any bond, note, or other evidence of
7 indebtedness issued by the Authority, the principal and
8 interest of which is payable solely from revenues or income
9 derived from any project or activity of the Agency.
10     "Sequester" means permanent storage of carbon dioxide by
11 injecting it into a saline aquifer, a depleted gas reservoir,
12 or an oil reservoir, directly or through an enhanced oil
13 recovery process that may involve intermediate storage in a
14 salt dome.
15     "Substitute natural gas" or "SNG" means a gas manufactured
16 by gasification of hydrocarbon feedstock, which is
17 substantially interchangeable in use and distribution with
18 conventional natural gas.
19     "Total resource cost test" or "TRC test" means a standard
20 that is met if, for an investment in energy efficiency or
21 demand-response measures, the benefit-cost ratio is greater
22 than one. The benefit-cost ratio is the ratio of the net
23 present value of the total benefits of the program to the net
24 present value of the total costs as calculated over the
25 lifetime of the measures. A total resource cost test compares
26 the sum of avoided electric utility costs, representing the

 

 

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1 benefits that accrue to the system and the participant in the
2 delivery of those efficiency measures, to the sum of all
3 incremental costs of end-use measures that are implemented due
4 to the program (including both utility and participant
5 contributions), plus costs to administer, deliver, and
6 evaluate each demand-side program, to quantify the net savings
7 obtained by substituting the demand-side program for supply
8 resources. In calculating avoided costs of power and energy
9 that an electric utility would otherwise have had to acquire,
10 reasonable estimates shall be included of financial costs
11 likely to be imposed by future regulations and legislation on
12 emissions of greenhouse gases.
13 (Source: P.A. 95-481, eff. 8-28-07.)
 
14     (20 ILCS 3855/1-75)
15     Sec. 1-75. Planning and Procurement Bureau. The Planning
16 and Procurement Bureau has the following duties and
17 responsibilities:
18         (a) The Planning and Procurement Bureau shall each
19     year, beginning in 2008, develop plans for the procurement
20     of electricity supply, including electricity generated by
21     clean coal facilities and facilities that use renewable
22     resources. The Bureau shall plans and conduct competitive
23     procurement processes in accordance with the requirements
24     of Section 16-111.5 of the Public Utilities Act for the
25     eligible retail customers of electric utilities that on

 

 

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1     December 31, 2005 provided electric service to at least
2     100,000 customers in Illinois. For the purposes of this
3     Section, the term "eligible retail customers" has the same
4     definition as found in Section 16-111.5(a) of the Public
5     Utilities Act.
6             (1) The Agency shall each year, beginning in 2008,
7         as needed, issue a request for qualifications for
8         experts or expert consulting firms to develop the
9         procurement plans in accordance with Section 16-111.5
10         of the Public Utilities Act. In order to qualify an
11         expert or expert 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,
16             mathematics, engineering, risk management, or a
17             related area of 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
23             transmission organizations;
24                 (E) expertise in credit protocols and
25             familiarity with contract protocols;
26                 (F) adequate resources to perform and fulfill

 

 

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

 

 

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

 

 

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1         consulting firms from the lists within 10 days if there
2         is a reasonable basis for an objection and provide the
3         updated lists to the affected utilities and other
4         interested parties. If the Agency fails to remove an
5         expert or expert consulting firm from a list, an
6         objecting party may seek review by the Commission
7         within 5 days thereafter by filing a petition, and the
8         Commission shall render a ruling on the petition within
9         10 days. There is no right of appeal of the
10         Commission's ruling.
11             (4) The Agency shall issue requests for proposals
12         to the qualified experts or expert consulting firms to
13         develop a procurement plan for the affected utilities
14         and to serve as procurement administrator.
15             (5) The Agency shall select an expert or expert
16         consulting firm to develop procurement plans based on
17         the proposals submitted and shall award one-year
18         contracts to those selected with an option for the
19         Agency for a one-year renewal.
20             (6) The Agency shall select an expert or expert
21         consulting firm, with approval of the Commission, to
22         serve as procurement administrator based on the
23         proposals submitted. If the Commission rejects, within
24         5 days, the Agency's selection, the Agency shall submit
25         another recommendation within 3 days based on the
26         proposals submitted. The Agency shall award a one-year

 

 

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1         contract to the expert or expert consulting firm so
2         selected with Commission approval with an option for
3         the Agency for a one-year renewal.
4         (b) The experts or expert consulting firms retained by
5     the Agency shall, as appropriate, prepare procurement
6     plans, and conduct a competitive procurement process as
7     prescribed in Section 16-111.5 of the Public Utilities Act,
8     to ensure adequate, reliable, affordable, efficient, and
9     environmentally sustainable electric service at the lowest
10     total cost over time, taking into account any benefits of
11     price stability, for eligible retail customers of electric
12     utilities that on December 31, 2005 provided electric
13     service to at least 100,000 customers in the State of
14     Illinois.
15         (c) Renewable portfolio standard.
16             (1) The procurement plans shall include
17         cost-effective renewable energy resources. A minimum
18         percentage of each utility's total supply to serve the
19         load of eligible retail customers, as defined in
20         Section 16-111.5(a) of the Public Utilities Act,
21         procured for each of the following years shall be
22         generated from cost-effective renewable energy
23         resources: at least 2% by June 1, 2008; at least 4% by
24         June 1, 2009; at least 5% by June 1, 2010; at least 6%
25         by June 1, 2011; at least 7% by June 1, 2012; at least
26         8% by June 1, 2013; at least 9% by June 1, 2014; at

 

 

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1         least 10% by June 1, 2015; and increasing by at least
2         1.5% each year thereafter to at least 25% by June 1,
3         2025. To the extent that it is available, at least 75%
4         of the renewable energy resources used to meet these
5         standards shall come from wind generation. For
6         purposes of this Section, "cost-effective" means that
7         the costs of procuring renewable energy resources do
8         not cause the limit stated in paragraph (2) of this
9         subsection (c) to be exceeded and do not exceed
10         benchmarks based on market prices for renewable
11         resources in the region, which shall be developed by
12         the procurement administrator, in consultation with
13         the Commission staff, Agency staff, and the
14         procurement monitor and shall be subject to Commission
15         review and approval.
16             (2) For purposes of this subsection (c), the
17         required procurement of cost-effective renewable
18         energy resources for a particular year shall be
19         measured as a percentage of the actual amount of
20         electricity (megawatt-hours) supplied by the electric
21         utility to eligible retail customers in the planning
22         year ending immediately prior to the procurement. For
23         purposes of this subsection (c), the amount per
24         kilowatthour means the total amount paid for electric
25         service expressed on a per kilowatthour basis. For
26         purposes of this subsection (c), the total amount paid

 

 

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1         for electric service includes without limitation
2         amounts paid for supply, transmission, distribution,
3         surcharges, and add-on taxes.
4             Notwithstanding the requirements of this
5         subsection (c), the total of renewable energy
6         resources procured pursuant to the procurement plan
7         for any single year shall be reduced by an amount
8         necessary to limit the annual estimated average net
9         increase due to the costs of these resources included
10         in the amounts paid by eligible retail customers in
11         connection with electric service to:
12                 (A) in 2008, no more than 0.5% of the amount
13             paid per kilowatthour by those customers during
14             the year ending May 31, 2007;
15                 (B) in 2009, the greater of an additional 0.5%
16             of the amount paid per kilowatthour by those
17             customers during the year ending May 31, 2008 or 1%
18             of the amount paid per kilowatthour by those
19             customers during the year ending May 31, 2007;
20                 (C) in 2010, the greater of an additional 0.5%
21             of the amount paid per kilowatthour by those
22             customers during the year ending May 31, 2009 or
23             1.5% of the amount paid per kilowatthour by those
24             customers during the year ending May 31, 2007;
25                 (D) in 2011, the greater of an additional 0.5%
26             of the amount paid per kilowatthour by those

 

 

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1             customers during the year ending May 31, 2010 or 2%
2             of the amount paid per kilowatthour by those
3             customers during the year ending May 31, 2007; and
4                 (E) thereafter, the amount of renewable energy
5             resources procured pursuant to the procurement
6             plan for any single year shall be reduced by an
7             amount necessary to limit the estimated average
8             net increase due to the cost of these resources
9             included in the amounts paid by eligible retail
10             customers in connection with electric service to
11             no more than the greater of 2.015% of the amount
12             paid per kilowatthour by those customers during
13             the year ending May 31, 2007 or the incremental
14             amount per kilowatthour paid for these resources
15             in 2011.
16             No later than June 30, 2011, the Commission shall
17         review the limitation on the amount of renewable energy
18         resources procured pursuant to this subsection (c) and
19         report to the General Assembly its findings as to
20         whether that limitation unduly constrains the
21         procurement of cost-effective renewable energy
22         resources.
23             (3) Through June 1, 2011, renewable energy
24         resources shall be counted for the purpose of meeting
25         the renewable energy standards set forth in paragraph
26         (1) of this subsection (c) only if they are generated

 

 

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1         from facilities located in the State, provided that
2         cost-effective renewable energy resources are
3         available from those facilities. If those
4         cost-effective resources are not available in
5         Illinois, they shall be procured in states that adjoin
6         Illinois and may be counted towards compliance. If
7         those cost-effective resources are not available in
8         Illinois or in states that adjoin Illinois, they shall
9         be purchased elsewhere and shall be counted towards
10         compliance. After June 1, 2011, cost-effective
11         renewable energy resources located in Illinois and in
12         states that adjoin Illinois may be counted towards
13         compliance with the standards set forth in paragraph
14         (1) of this subsection (c). If those cost-effective
15         resources are not available in Illinois or in states
16         that adjoin Illinois, they shall be purchased
17         elsewhere and shall be counted towards compliance.
18             (4) The electric utility shall retire all
19         renewable energy credits used to comply with the
20         standard.
21     (d) Clean coal portfolio standard.
22         (1) The procurement plans shall include electricity
23     generated using clean coal. At least 5% of each utility's
24     total supply to serve the load of eligible retail customers
25     in 2015 and each year thereafter shall be generated by the
26     initial clean coal facility, subject to the limits

 

 

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1     specified in paragraph (2) of this subsection (d). It is
2     the goal of the State that by January 1, 2025, 25% of the
3     electricity used in the State shall be generated by
4     cost-effective clean coal facilities. For purposes of this
5     Section, "cost-effective" means that the costs of
6     procuring electricity generated by cost-effective clean
7     coal facilities do not cause the limit stated in paragraph
8     (2) of this subsection (d) to be exceeded and do not exceed
9     cost-based benchmarks, which shall be developed to assess
10     all purchases of electricity generated by clean coal
11     facilities, other than the initial clean coal facility, by
12     the procurement administrator, in consultation with the
13     Commission staff, Agency staff, and the procurement
14     monitor and shall be subject to Commission review and
15     approval. For purposes of meeting the requirements of this
16     Section:
17             (A) A utility need not actually deliver
18         electricity purchased to comply with this Section to
19         eligible retail customers, provided that if the
20         utility claims credit for such purpose, subsequent
21         purchasers shall not receive any emission credits in
22         connection with the purchase of such electricity.
23             (B) Utilities shall maintain adequate records
24         documenting the contractual disposition of all
25         electricity purchased to comply with this Section and
26         shall file an accounting with the load forecast that

 

 

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1         must be filed with the Agency by July 15 of each year,
2         in accordance with subsection (d) of Section 16-111.5
3         of the Public Utilities Act.
4         (2) For purposes of this subsection (d), the required
5     procurement of electricity generated by cost-effective
6     clean coal facilities for a particular year shall be
7     measured as a percentage of the actual amount of
8     electricity (megawatt-hours) supplied by the electric
9     utility to eligible retail customers in the planning year
10     ending immediately prior to the procurement. For purposes
11     of this subsection (d) the amount per kilowatt-hour means
12     the total amount paid for electric service expressed on a
13     per kilowatt-hour basis. For purposes of this subsection
14     (d), the total amount paid for electric service includes
15     without limitation amounts paid for supply, transmission,
16     distribution, surcharges and add-on taxes.
17         Notwithstanding the requirements of this subsection
18     (d), the total amount of electricity generated by clean
19     coal facilities procured pursuant to the procurement plan
20     for any given year shall be reduced by an amount necessary
21     to limit the annual estimated average net increase due to
22     the costs of these resources included in the amounts paid
23     by eligible retail customers in connection with electric
24     service to:
25                 (i) in 2010, no more than 0.5% of the amount
26             paid per kilowatthour by those customers during

 

 

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1             the year ending May 31, 2009;
2                 (ii) in 2011, the greater of an additional 0.5%
3             of the amount paid per kilowatthour by those
4             customers during the year ending May 31, 2010 or 1%
5             of the amount paid per kilowatthour by those
6             customers during the year ending May 31, 2009;
7                 (iii) in 2012, the greater of an additional
8             0.5% of the amount paid per kilowatthour by those
9             customers during the year ending May 31, 2011 or
10             1.5% of the amount paid per kilowatthour by those
11             customers during the year ending May 31, 2009;
12                 (iv) in 2013, the greater of an additional 0.5%
13             of the amount paid per kilowatthour by those
14             customers during the year ending May 31, 2012 or 2%
15             of the amount paid per kilowatthour by those
16             customers during the year ending May 31, 2009; and
17                 (v) thereafter, the amount of electricity
18             generated by clean coal facilities procured
19             pursuant to the procurement plan for any single
20             year shall be reduced by an amount necessary to
21             limit the estimated average net increase due to the
22             cost of these resources included in the amounts
23             paid by eligible retail customers in connection
24             with electric service to no more than the greater
25             of (i) 2.015% of the amount paid per kilowatthour
26             by those customers during the year ending May 31,

 

 

09500SB1987ham002 - 23 - LRB095 14199 MJR 51811 a

1             2009 or (ii) the incremental amount per
2             kilowatthour paid for these resources in 2013.
3             These requirements may be altered only as provided
4             by statute. No later than June 30, 2015, the
5             Commission shall review the limitation on the
6             amount of electricity generated by clean coal
7             facilities procured pursuant to this subsection
8             (d) and report to the General Assembly its findings
9             as to whether that limitation unduly constrains
10             the procurement of cost-effective clean coal
11             facilities.
12         (3) Initial clean coal facility. In order to promote
13     development of clean coal facilities in Illinois, each
14     electric utility subject to this Section shall execute a
15     power purchase agreement to purchase electricity from a
16     proposed clean coal facility in Illinois (the "initial
17     clean coal facility") that will have a nameplate capacity
18     of at least 500 MW when commercial operation commences,
19     that has a final Clean Air Act permit on the effective date
20     of this amendatory Act of the 95th General Assembly, and
21     that will meet the definition of clean coal facility in
22     Section 1-10 of this Act when commercial operation
23     commences. The power purchase agreements with this initial
24     clean coal facility shall be executed within 60 days after
25     the later of the effective date of this amendatory Act of
26     the 95th General Assembly or approval of the agreement by

 

 

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

 

 

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1             rights, if any, by-products produced by the
2             facility, energy or capacity derived from the
3             facility and not purchased pursuant to paragraph
4             (3) of this subsection (d) or item (5) of
5             subsection (d) of Section 16-115 of the Public
6             Utilities Act, whether generated from the
7             synthesis gas derived from coal, from substitute
8             natural gas, or from natural gas, shall be credited
9             against the revenue requirement for this initial
10             clean coal facility;
11                 (iii) establish a plant availability target of
12             85% starting in the third year of commercial
13             operation and an incentive structure based on this
14             target, under which the penalty in any given year
15             shall not exceed 15% of the amount of return on
16             equity approved pursuant to paragraph (4) of this
17             subsection (d) and the bonus shall not exceed 10%
18             of the amount of return on equity approved pursuant
19             to paragraph (4) of this subsection (d);
20                 (iv) require delivery of electricity to the
21             initial clean coal facility busbar, which shall be
22             interconnected with transmission facilities
23             operated by the Midwest Independent System
24             Operator, the PJM Interconnection or their
25             successors;
26                 (v) specify a term of no more than 30 years,

 

 

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1             commencing on the commercial operation date of the
2             facility;
3                 (vi) require a utility subject to this Section
4             to buy from the initial clean coal facility in each
5             hour an amount of energy equal to all clean coal
6             energy made available from the initial clean coal
7             facility during such hour times a fraction, the
8             numerator of which is such utility's market share
9             of electricity sold in the utility's service
10             territory (expressed in kilowatt-hours sold)
11             during the prior calendar month and the
12             denominator of which is the total market shares
13             during the prior month of all utilities and
14             alternative retail electric suppliers that are
15             party to a power purchase agreement with the
16             initial clean coal facility, provided that the
17             amount purchased by the utility in any year will be
18             limited by item (2) of this subsection (d);
19                 (vii) append documentation showing that the
20             formula rate and contract have been approved by the
21             Federal Energy Regulatory Commission pursuant to
22             Section 205 of the Federal Power Act;
23                 (viii) provide that all costs associated with
24             the initial clean coal project will be
25             periodically reported to the Federal Energy
26             Regulatory Commission and to purchasers in

 

 

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1             accordance with applicable laws governing
2             cost-based wholesale power contracts;
3                 (ix) provide that any changes to the terms of
4             the contract are subject to review under the public
5             interest standard applied by the Federal Energy
6             Regulatory Commission pursuant to Sections 205 and
7             206 of the Federal Power Act;
8                 (x) conform with customary lender requirements
9             in power purchase agreements used as the basis for
10             financing non-utility generators;
11                 (xi) permit the Illinois Power Agency to
12             assume ownership of the initial clean coal
13             facility, without monetary consideration and
14             otherwise on reasonable terms acceptable to the
15             Agency, if the Agency so requests no less than 3
16             years prior to the end of the stated contract term;
17                 (xii) require the owner of the initial clean
18             coal facility to provide documentation to the
19             Commission each year, starting in the facility's
20             third year of commercial operation, accurately
21             reporting the quantity of carbon emissions from
22             the facility that have been captured and
23             sequestered and report any quantities of carbon
24             released from the site or sites at which carbon
25             emissions were sequestered in prior years, based
26             on continuous monitoring of such sites. If, in any

 

 

09500SB1987ham002 - 28 - LRB095 14199 MJR 51811 a

1             year after the third year of commercial operation,
2             the owner of the facility fails to demonstrate that
3             the initial clean coal facility captured and
4             sequestered at least 50% of the total carbon
5             emissions that the facility would otherwise emit
6             or that sequestration of emissions from prior
7             years has failed, resulting in the release of
8             carbon dioxide into the atmosphere, the owner of
9             the facility must offset excess emissions. Any
10             such carbon offsets must be permanent, additional,
11             verifiable, real, located within the state of
12             Illinois, and legally and practicably enforceable.
13             The cost of such offsets for the facility that are
14             not recoverable shall not exceed $15 million in any
15             given year. No costs of any such purchases of
16             carbon offsets may be recovered from a utility or
17             its customers. All carbon offsets purchased for
18             this purpose and any carbon emission credits
19             associated with sequestration of carbon from the
20             facility must be permanently retired. The initial
21             clean coal facility shall not forfeit its
22             designation as a clean coal facility if the
23             facility fails to fully comply with the applicable
24             carbon sequestration requirements in any given
25             year, provided the requisite offsets are
26             purchased. However, the Attorney General, on

 

 

09500SB1987ham002 - 29 - LRB095 14199 MJR 51811 a

1             behalf of the People of the State of Illinois, may
2             specifically enforce the facility's sequestration
3             requirement and the other terms of this contract
4             provision;
5                 (xiii) include limits on, and accordingly
6             provide for modification of, the amount of energy
7             the utility is required to purchase under the
8             contract consistent with item (2) of this
9             subsection (d);
10                 (xiv) require Commission review: (A) to
11             determine the justness, reasonableness, and
12             prudence of the inputs to the formula referenced in
13             subparagraph (i) of item (3) of this subsection
14             (d), prior to an adjustment in those inputs
15             including, without limitation, the capital
16             structure and return on equity, fuel costs, and
17             other operations and maintenance costs and (B) to
18             approve the costs passed through to customers
19             under this contract by which the utility satisfies
20             its statutory obligations;
21                 (xv) limit the utility's obligation to such
22             amount as the utility is allowed to recover through
23             tariffs filed with the Commission, provided that
24             neither the clean coal facility nor the utility
25             waives any right to assert federal pre-emption or
26             any other argument in response to a purported

 

 

09500SB1987ham002 - 30 - LRB095 14199 MJR 51811 a

1             disallowance of recovery costs;
2                 (xvi) limit the purchaser's obligation to
3             incur any liability until such time as the facility
4             is generating power and energy and such power and
5             energy is being delivered to the facility busbar.
6         (4) Effective date of power purchase agreements for the
7     initial clean coal facility. Power purchase agreements
8     with the initial clean coal facility shall not become
9     effective unless authorizing legislation is enacted to
10     approve the projected price, stated in cents per
11     kilowatt-hour, to be charged for electricity generated by
12     the initial clean coal facility; the projected impact on
13     residential and small business customers' bills over the
14     life of the power purchase agreement; and allowable return
15     on equity for the project, based on a front end engineering
16     and design study, a facility cost report, and an operating
17     and maintenance cost quote for the facility, which shall be
18     prepared as follows:
19             (A) The facility cost report shall be prepared by
20         duly licensed engineering and construction firms
21         detailing the estimated capital costs payable to one or
22         more contractors or suppliers for the engineering,
23         procurement and construction of the components
24         comprising the initial clean coal facility and the
25         estimated costs of operation and maintenance of the
26         facility. The facility cost report shall include:

 

 

09500SB1987ham002 - 31 - LRB095 14199 MJR 51811 a

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

 

 

09500SB1987ham002 - 32 - LRB095 14199 MJR 51811 a

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

 

 

09500SB1987ham002 - 33 - LRB095 14199 MJR 51811 a

1             dollars as of the date that the quote is prepared
2             and shall include (1) taxes, insurance, and other
3             owner's costs, and (2) an assumed escalation in
4             materials and labor beyond the date as of which the
5             operating and maintenance cost quote is expressed.
6             (D) Amounts paid to third parties unrelated to the
7         owner or owners of the initial clean coal facility to
8         prepare the core plant construction cost quote,
9         including the front end engineering and design study,
10         and the operating and maintenance cost quote will be
11         reimbursed through Coal Development Bonds.
12         (5) Re-powering and retrofitting coal-fired power
13     plants previously owned by Illinois utilities to qualify as
14     clean coal facilities. During the 2009 procurement
15     planning process and thereafter, the Agency and the
16     Commission shall consider contracts to purchase
17     electricity generated by power plants that were previously
18     owned by Illinois utilities and that have been or will be
19     converted into clean coal facilities, as defined by Section
20     1-10 of this Act. The owners of such facilities may propose
21     long-term power purchase agreements to sell electricity on
22     a cost of service basis, to utilities and Alternative
23     Retail Electric Suppliers required, under subsection (d)
24     of this Section and item (5) of subsection (d) of Section
25     16-115 of the Public Utilities Act to comply with the clean
26     coal portfolio standard. The Agency and the Commission may

 

 

09500SB1987ham002 - 34 - LRB095 14199 MJR 51811 a

1     approve any such utility contracts that do not exceed
2     cost-based benchmarks developed by the procurement
3     administrator, in consultation with the Commission staff,
4     Agency staff and the procurement monitor, subject to
5     Commission review and approval. The Commission shall have
6     authority to inspect all books and records associated with
7     these clean coal facilities during the term of any such
8     contract.
9         (6) Costs incurred under this subsection (d) or
10     pursuant to a contract entered into under this subsection
11     (d) shall be deemed prudently incurred and reasonable in
12     amount and the electric utility shall be entitled to full
13     cost recovery pursuant to the tariffs filed with the
14     Commission.
15         (e) (d) The draft procurement plans are subject to
16     public comment, as required by Section 16-111.5 of the
17     Public Utilities Act.
18         (f) (e) The Agency shall submit the final procurement
19     plan to the Commission. The Agency shall revise a
20     procurement plan if the Commission determines that it does
21     not meet the standards set forth in Section 16-111.5 of the
22     Public Utilities Act.
23         (g) (f) The Agency shall assess fees to each affected
24     utility to recover the costs incurred in preparation of the
25     annual procurement plan for the utility.
26         (h) (g) The Agency shall assess fees to each bidder to

 

 

09500SB1987ham002 - 35 - LRB095 14199 MJR 51811 a

1     recover the costs incurred in connection with a competitive
2     procurement process.
3 (Source: P.A. 95-481, eff. 8-28-07.)
 
4     (20 ILCS 3855/1-80)
5     Sec. 1-80. Resource Development Bureau. The Resource
6 Development Bureau has the following duties and
7 responsibilities:
8         (a) At the Agency's discretion, conduct feasibility
9     studies on the construction of any facility. Funding for a
10     study shall come from either:
11             (i) fees assessed by the Agency on municipal
12         electric systems, governmental aggregators, unit or
13         units of local government, or rural electric
14         cooperatives requesting the feasibility study; or
15             (ii) an appropriation from the General Assembly.
16         (b) If the Agency undertakes the construction of a
17     facility, moneys generated from the sale of revenue bonds
18     by the Authority for the facility shall be used to
19     reimburse the source of the money used for the facility's
20     feasibility study.
21         (c) The Agency may develop, finance, construct, or
22     operate electric generation and co-generation facilities
23     that use indigenous coal or renewable resources, or both,
24     financed with bonds issued by the Authority on behalf of
25     the Agency. Any such facility that uses coal must be a

 

 

09500SB1987ham002 - 36 - LRB095 14199 MJR 51811 a

1     clean coal facility and must be constructed in a location
2     Preference shall be given to technologies that enable
3     carbon capture and sites in locations where the geology is
4     suitable for carbon sequestration. The Agency may also
5     develop, finance, construct, or operate a carbon
6     sequestration facility.
7             (1) The Agency may enter into contractual
8         arrangements with private and public entities,
9         including but not limited to municipal electric
10         systems, governmental aggregators, and rural electric
11         cooperatives, to plan, site, construct, improve,
12         rehabilitate, and operate those electric generation
13         and co-generation facilities. No contract shall be
14         entered into by the Agency that would jeopardize the
15         tax-exempt status of any bond issued in connection with
16         a project for which the Agency entered into the
17         contract.
18             (2) The Agency shall hold at least one public
19         hearing before entering into any such contractual
20         arrangements. At least 30-days' notice of the hearing
21         shall be given by publication once in each week during
22         that period in 6 newspapers within the State, at least
23         one of which has a circulation area that includes the
24         location of the proposed facility.
25             (3) The first facility that the Agency develops,
26         finances, or constructs shall be a facility that uses

 

 

09500SB1987ham002 - 37 - LRB095 14199 MJR 51811 a

1         coal produced in Illinois. The Agency may, however,
2         also develop, finance, or construct renewable energy
3         facilities after work on the first facility has
4         commenced.
5             (4) The Agency may not develop, finance, or
6         construct a nuclear power plant.
7             (5) The Agency shall assess fees to applicants
8         seeking to partner with the Agency on projects.
9         (d) Use of electricity generated by the Agency's
10     facilities. The Agency may supply electricity produced by
11     the Agency's facilities to municipal electric systems,
12     governmental aggregators, or rural electric cooperatives
13     in Illinois. The electricity shall be supplied at cost.
14             (1) Contracts to supply power and energy from the
15         Agency's facilities shall provide for the effectuation
16         of the policies set forth in this Act.
17             (2) The contracts shall also provide that,
18         notwithstanding any provision in the Public Utilities
19         Act, entities supplied with power and energy from an
20         Agency facility shall supply the power and energy to
21         retail customers at the same price paid to purchase
22         power and energy from the Agency.
23     (e) Electric utilities shall not be required to purchase
24 electricity directly or indirectly from facilities developed
25 or sponsored by the Agency.
26     (f) The Agency may sell excess capacity and excess energy

 

 

09500SB1987ham002 - 38 - LRB095 14199 MJR 51811 a

1 into the wholesale electric market at prevailing market rates;
2 provided, however, the Agency may not sell excess capacity or
3 excess energy through the procurement process described in
4 Section 16-111.5 of the Public Utilities Act.
5     (g) The Agency shall not directly sell electric power and
6 energy to retail customers. Nothing in this paragraph shall be
7 construed to prohibit sales to municipal electric systems,
8 governmental aggregators, or rural electric cooperatives.
9 (Source: P.A. 95-481, eff. 8-28-07.)
 
10     Section 1-10. The Public Utilities Act is amended by
11 changing Sections 9-220, 16-101A, and 16-115 as follows:
 
12     (220 ILCS 5/9-220)  (from Ch. 111 2/3, par. 9-220)
13     Sec. 9-220. Rate changes based on changes in fuel costs.
14     (a) Notwithstanding the provisions of Section 9-201, the
15 Commission may authorize the increase or decrease of rates and
16 charges based upon changes in the cost of fuel used in the
17 generation or production of electric power, changes in the cost
18 of purchased power, or changes in the cost of purchased gas
19 through the application of fuel adjustment clauses or purchased
20 gas adjustment clauses. The Commission may also authorize the
21 increase or decrease of rates and charges based upon
22 expenditures or revenues resulting from the purchase or sale of
23 emission allowances created under the federal Clean Air Act
24 Amendments of 1990, through such fuel adjustment clauses, as a

 

 

09500SB1987ham002 - 39 - LRB095 14199 MJR 51811 a

1 cost of fuel. For the purposes of this paragraph, cost of fuel
2 used in the generation or production of electric power shall
3 include the amount of any fees paid by the utility for the
4 implementation and operation of a process for the
5 desulfurization of the flue gas when burning high sulfur coal
6 at any location within the State of Illinois irrespective of
7 the attainment status designation of such location; but shall
8 not include transportation costs of coal (i) except to the
9 extent that for contracts entered into on and after the
10 effective date of this amendatory Act of 1997, the cost of the
11 coal, including transportation costs, constitutes the lowest
12 cost for adequate and reliable fuel supply reasonably available
13 to the public utility in comparison to the cost, including
14 transportation costs, of other adequate and reliable sources of
15 fuel supply reasonably available to the public utility, or (ii)
16 except as otherwise provided in the next 3 sentences of this
17 paragraph. Such costs of fuel shall, when requested by a
18 utility or at the conclusion of the utility's next general
19 electric rate proceeding, whichever shall first occur, include
20 transportation costs of coal purchased under existing coal
21 purchase contracts. For purposes of this paragraph "existing
22 coal purchase contracts" means contracts for the purchase of
23 coal in effect on the effective date of this amendatory Act of
24 1991, as such contracts may thereafter be amended, but only to
25 the extent that any such amendment does not increase the
26 aggregate quantity of coal to be purchased under such contract.

 

 

09500SB1987ham002 - 40 - LRB095 14199 MJR 51811 a

1 Nothing herein shall authorize an electric utility to recover
2 through its fuel adjustment clause any amounts of
3 transportation costs of coal that were included in the revenue
4 requirement used to set base rates in its most recent general
5 rate proceeding. Cost shall be based upon uniformly applied
6 accounting principles. Annually, the Commission shall initiate
7 public hearings to determine whether the clauses reflect actual
8 costs of fuel, gas, power, or coal transportation purchased to
9 determine whether such purchases were prudent, and to reconcile
10 any amounts collected with the actual costs of fuel, power,
11 gas, or coal transportation prudently purchased. In each such
12 proceeding, the burden of proof shall be upon the utility to
13 establish the prudence of its cost of fuel, power, gas, or coal
14 transportation purchases and costs. The Commission shall issue
15 its final order in each such annual proceeding for an electric
16 utility by December 31 of the year immediately following the
17 year to which the proceeding pertains, provided, that the
18 Commission shall issue its final order with respect to such
19 annual proceeding for the years 1996 and earlier by December
20 31, 1998.
21     (b) A public utility providing electric service, other than
22 a public utility described in subsections (e) or (f) of this
23 Section, may at any time during the mandatory transition period
24 file with the Commission proposed tariff sheets that eliminate
25 the public utility's fuel adjustment clause and adjust the
26 public utility's base rate tariffs by the amount necessary for

 

 

09500SB1987ham002 - 41 - LRB095 14199 MJR 51811 a

1 the base fuel component of the base rates to recover the public
2 utility's average fuel and power supply costs per kilowatt-hour
3 for the 2 most recent years for which the Commission has issued
4 final orders in annual proceedings pursuant to subsection (a),
5 where the average fuel and power supply costs per kilowatt-hour
6 shall be calculated as the sum of the public utility's prudent
7 and allowable fuel and power supply costs as found by the
8 Commission in the 2 proceedings divided by the public utility's
9 actual jurisdictional kilowatt-hour sales for those 2 years.
10 Notwithstanding any contrary or inconsistent provisions in
11 Section 9-201 of this Act, in subsection (a) of this Section or
12 in any rules or regulations promulgated by the Commission
13 pursuant to subsection (g) of this Section, the Commission
14 shall review and shall by order approve, or approve as
15 modified, the proposed tariff sheets within 60 days after the
16 date of the public utility's filing. The Commission may modify
17 the public utility's proposed tariff sheets only to the extent
18 the Commission finds necessary to achieve conformance to the
19 requirements of this subsection (b). During the 5 years
20 following the date of the Commission's order, but in any event
21 no earlier than January 1, 2007, a public utility whose fuel
22 adjustment clause has been eliminated pursuant to this
23 subsection shall not file proposed tariff sheets seeking, or
24 otherwise petition the Commission for, reinstatement of a fuel
25 adjustment clause.
26     (c) Notwithstanding any contrary or inconsistent

 

 

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1 provisions in Section 9-201 of this Act, in subsection (a) of
2 this Section or in any rules or regulations promulgated by the
3 Commission pursuant to subsection (g) of this Section, a public
4 utility providing electric service, other than a public utility
5 described in subsection (e) or (f) of this Section, may at any
6 time during the mandatory transition period file with the
7 Commission proposed tariff sheets that establish the rate per
8 kilowatt-hour to be applied pursuant to the public utility's
9 fuel adjustment clause at the average value for such rate
10 during the preceding 24 months, provided that such average rate
11 results in a credit to customers' bills, without making any
12 revisions to the public utility's base rate tariffs. The
13 proposed tariff sheets shall establish the fuel adjustment rate
14 for a specific time period of at least 3 years but not more
15 than 5 years, provided that the terms and conditions for any
16 reinstatement earlier than 5 years shall be set forth in the
17 proposed tariff sheets and subject to modification or approval
18 by the Commission. The Commission shall review and shall by
19 order approve the proposed tariff sheets if it finds that the
20 requirements of this subsection are met. The Commission shall
21 not conduct the annual hearings specified in the last 3
22 sentences of subsection (a) of this Section for the utility for
23 the period that the factor established pursuant to this
24 subsection is in effect.
25     (d) A public utility providing electric service, or a
26 public utility providing gas service may file with the

 

 

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1 Commission proposed tariff sheets that eliminate the public
2 utility's fuel or purchased gas adjustment clause and adjust
3 the public utility's base rate tariffs to provide for recovery
4 of power supply costs or gas supply costs that would have been
5 recovered through such clause; provided, that the provisions of
6 this subsection (d) shall not be available to a public utility
7 described in subsections (e) or (f) of this Section to
8 eliminate its fuel adjustment clause. Notwithstanding any
9 contrary or inconsistent provisions in Section 9-201 of this
10 Act, in subsection (a) of this Section, or in any rules or
11 regulations promulgated by the Commission pursuant to
12 subsection (g) of this Section, the Commission shall review and
13 shall by order approve, or approve as modified in the
14 Commission's order, the proposed tariff sheets within 240 days
15 after the date of the public utility's filing. The Commission's
16 order shall approve rates and charges that the Commission,
17 based on information in the public utility's filing or on the
18 record if a hearing is held by the Commission, finds will
19 recover the reasonable, prudent and necessary jurisdictional
20 power supply costs or gas supply costs incurred or to be
21 incurred by the public utility during a 12 month period found
22 by the Commission to be appropriate for these purposes,
23 provided, that such period shall be either (i) a 12 month
24 historical period occurring during the 15 months ending on the
25 date of the public utility's filing, or (ii) a 12 month future
26 period ending no later than 15 months following the date of the

 

 

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1 public utility's filing. The public utility shall include with
2 its tariff filing information showing both (1) its actual
3 jurisdictional power supply costs or gas supply costs for a 12
4 month historical period conforming to (i) above and (2) its
5 projected jurisdictional power supply costs or gas supply costs
6 for a future 12 month period conforming to (ii) above. If the
7 Commission's order requires modifications in the tariff sheets
8 filed by the public utility, the public utility shall have 7
9 days following the date of the order to notify the Commission
10 whether the public utility will implement the modified tariffs
11 or elect to continue its fuel or purchased gas adjustment
12 clause in force as though no order had been entered. The
13 Commission's order shall provide for any reconciliation of
14 power supply costs or gas supply costs, as the case may be, and
15 associated revenues through the date that the public utility's
16 fuel or purchased gas adjustment clause is eliminated. During
17 the 5 years following the date of the Commission's order, a
18 public utility whose fuel or purchased gas adjustment clause
19 has been eliminated pursuant to this subsection shall not file
20 proposed tariff sheets seeking, or otherwise petition the
21 Commission for, reinstatement or adoption of a fuel or
22 purchased gas adjustment clause. Nothing in this subsection (d)
23 shall be construed as limiting the Commission's authority to
24 eliminate a public utility's fuel adjustment clause or
25 purchased gas adjustment clause in accordance with any other
26 applicable provisions of this Act.

 

 

09500SB1987ham002 - 45 - LRB095 14199 MJR 51811 a

1     (e) Notwithstanding any contrary or inconsistent
2 provisions in Section 9-201 of this Act, in subsection (a) of
3 this Section, or in any rules promulgated by the Commission
4 pursuant to subsection (g) of this Section, a public utility
5 providing electric service to more than 1,000,000 customers in
6 this State may, within the first 6 months after the effective
7 date of this amendatory Act of 1997, file with the Commission
8 proposed tariff sheets that eliminate, effective January 1,
9 1997, the public utility's fuel adjustment clause without
10 adjusting its base rates, and such tariff sheets shall be
11 effective upon filing. To the extent the application of the
12 fuel adjustment clause had resulted in net charges to customers
13 after January 1, 1997, the utility shall also file a tariff
14 sheet that provides for a refund stated on a per kilowatt-hour
15 basis of such charges over a period not to exceed 6 months;
16 provided however, that such refund shall not include the
17 proportional amounts of taxes paid under the Use Tax Act,
18 Service Use Tax Act, Service Occupation Tax Act, and Retailers'
19 Occupation Tax Act on fuel used in generation. The Commission
20 shall issue an order within 45 days after the date of the
21 public utility's filing approving or approving as modified such
22 tariff sheet. If the fuel adjustment clause is eliminated
23 pursuant to this subsection, the Commission shall not conduct
24 the annual hearings specified in the last 3 sentences of
25 subsection (a) of this Section for the utility for any period
26 after December 31, 1996 and prior to any reinstatement of such

 

 

09500SB1987ham002 - 46 - LRB095 14199 MJR 51811 a

1 clause. A public utility whose fuel adjustment clause has been
2 eliminated pursuant to this subsection shall not file a
3 proposed tariff sheet seeking, or otherwise petition the
4 Commission for, reinstatement of the fuel adjustment clause
5 prior to January 1, 2007.
6     (f) Notwithstanding any contrary or inconsistent
7 provisions in Section 9-201 of this Act, in subsection (a) of
8 this Section, or in any rules or regulations promulgated by the
9 Commission pursuant to subsection (g) of this Section, a public
10 utility providing electric service to more than 500,000
11 customers but fewer than 1,000,000 customers in this State may,
12 within the first 6 months after the effective date of this
13 amendatory Act of 1997, file with the Commission proposed
14 tariff sheets that eliminate, effective January 1, 1997, the
15 public utility's fuel adjustment clause and adjust its base
16 rates by the amount necessary for the base fuel component of
17 the base rates to recover 91% of the public utility's average
18 fuel and power supply costs for the 2 most recent years for
19 which the Commission, as of January 1, 1997, has issued final
20 orders in annual proceedings pursuant to subsection (a), where
21 the average fuel and power supply costs per kilowatt-hour shall
22 be calculated as the sum of the public utility's prudent and
23 allowable fuel and power supply costs as found by the
24 Commission in the 2 proceedings divided by the public utility's
25 actual jurisdictional kilowatt-hour sales for those 2 years,
26 provided, that such tariff sheets shall be effective upon

 

 

09500SB1987ham002 - 47 - LRB095 14199 MJR 51811 a

1 filing. To the extent the application of the fuel adjustment
2 clause had resulted in net charges to customers after January
3 1, 1997, the utility shall also file a tariff sheet that
4 provides for a refund stated on a per kilowatt-hour basis of
5 such charges over a period not to exceed 6 months. Provided
6 however, that such refund shall not include the proportional
7 amounts of taxes paid under the Use Tax Act, Service Use Tax
8 Act, Service Occupation Tax Act, and Retailers' Occupation Tax
9 Act on fuel used in generation. The Commission shall issue an
10 order within 45 days after the date of the public utility's
11 filing approving or approving as modified such tariff sheet. If
12 the fuel adjustment clause is eliminated pursuant to this
13 subsection, the Commission shall not conduct the annual
14 hearings specified in the last 3 sentences of subsection (a) of
15 this Section for the utility for any period after December 31,
16 1996 and prior to any reinstatement of such clause. A public
17 utility whose fuel adjustment clause has been eliminated
18 pursuant to this subsection shall not file a proposed tariff
19 sheet seeking, or otherwise petition the Commission for,
20 reinstatement of the fuel adjustment clause prior to January 1,
21 2007.
22     (g) The Commission shall have authority to promulgate rules
23 and regulations to carry out the provisions of this Section.
24     (h) Any gas utility may enter into a contract for up to 20
25 years of supply with any company for the purchase of substitute
26 natural gas (SNG) produced from coal through the gasification

 

 

09500SB1987ham002 - 48 - LRB095 14199 MJR 51811 a

1 process if the company has commenced construction of a coal
2 gasification facility by July 1, 2010. The cost for the SNG is
3 reasonable and prudent and recoverable through the purchased
4 gas adjustment clause for years one through 10 of the contract
5 if: (i) the only coal used in the gasification process has high
6 volatile bituminous rank and greater than 1.7 pounds of sulfur
7 per million Btu content; (ii) at the time the contract term
8 commences, the price per million Btu does not exceed $7.95 in
9 2008 dollars, adjusted annually based on the change in the
10 Annual Consumer Price Index for All Urban Consumers for the
11 Midwest Region as published in April by the United States
12 Department of Labor, Bureau of Labor Statistics (or a suitable
13 Consumer Price Index calculation if this Consumer Price Index
14 is not available) for the previous calendar year; provided that
15 the price per million Btu shall not exceed $8.95 at any time
16 during the contract; (iii) the utility's aggregate long-term
17 supply contracts for the purchase of SNG does not exceed 25% of
18 the annual system supply requirements of the utility at the
19 time the contract is entered into and the quantity of SNG
20 supplied to a utility by any one producer may not exceed 20
21 billion cubic feet per year; and (iv) the contract is entered
22 into within 120 days after the effective date of this
23 amendatory Act of the 95th General Assembly and terminates no
24 more than 20 years after the commencement of the commercial
25 production of synthetic natural gas at the facility. Contracts
26 greater than 10 years shall provide that if, at any time during

 

 

09500SB1987ham002 - 49 - LRB095 14199 MJR 51811 a

1 supply years 11 through 20 of the contract, the Commission
2 determines that the cost for the synthetic natural gas
3 purchased under the contract during supply years 11 through 20
4 is not reasonable and prudent, then the company shall reimburse
5 the utility for the difference between the cost deemed
6 reasonable and prudent by the Commission and the cost imposed
7 under the contract. All such contracts, regardless of duration,
8 shall require the owner of any facility supplying SNG under the
9 contract to provide documentation to the Commission each year,
10 starting in the facility's third year of commercial operation,
11 accurately reporting the quantity of carbon dioxide emissions
12 from the facility that have been captured and sequestered and
13 reporting any quantities of carbon dioxide released from the
14 site or sites at which carbon dioxide emissions were
15 sequestered in prior years, based on continuous monitoring of
16 those sites. If, in any year, the owner of the facility fails
17 to demonstrate that the SNG facility captured and sequestered
18 at least 90% of the total carbon dioxide emissions that the
19 facility would otherwise emit or that sequestration of
20 emissions from prior years has failed, resulting in the release
21 of carbon dioxide into the atmosphere, the owner of the
22 facility must offset excess emissions. Any such carbon dioxide
23 offsets must be permanent, additional, verifiable, real,
24 located within the State of Illinois, and legally and
25 practicably enforceable. The costs of such offsets that are not
26 recoverable shall not exceed $30 million in any given year. No

 

 

09500SB1987ham002 - 50 - LRB095 14199 MJR 51811 a

1 costs of any such purchases of carbon offsets may be recovered
2 from a utility or its customers. All carbon offsets purchased
3 for this purpose must be permanently retired. In addition, 50%
4 of the carbon dioxide emission credits associated with the
5 required sequestration of carbon dioxide from the facility must
6 be permanently retired. An SNG facility operating pursuant to
7 this subsection (h) shall not forfeit its designation as a
8 clean coal SNG facility if the facility fails to fully comply
9 with the applicable carbon sequestration requirements in any
10 given year, provided the requisite offsets are purchased.
11 However, the Attorney General, on behalf of the People of the
12 State of Illinois, may specifically enforce the facility's
13 sequestration requirements. Any gas utility may enter into a
14 20-year supply contract with any company for synthetic natural
15 gas produced from coal through the gasification process if the
16 company has commenced construction of a coal gasification
17 facility by July 1, 2008. The cost for the synthetic natural
18 gas is reasonable and prudent and recoverable through the
19 purchased gas adjustment clause for years one through 10 of the
20 contract if: (i) the only coal used in the gasification process
21 has high volatile bituminous rank and greater than 1.7 pounds
22 of sulfur per million Btu content; (ii) at the time the
23 contract term commences, the price per million Btu does not
24 exceed $5 in 2004 dollars, adjusted annually based on the
25 change in the Annual Consumer Price Index for All Urban
26 Consumers for the Midwest Region as published in April by the

 

 

09500SB1987ham002 - 51 - LRB095 14199 MJR 51811 a

1 United States Department of Labor, Bureau of Labor Statistics
2 (or a suitable Consumer Price Index calculation if this
3 Consumer Price Index is not available) for the previous
4 calendar year; provided that the price per million Btu shall
5 not exceed $5.50 at any time during the contract; (iii) the
6 utility's aggregate long-term supply contracts for the
7 purchase of synthetic natural gas produced from coal through
8 the gasification process does not exceed 25% of the annual
9 system supply requirements of the utility at the time the
10 contract is entered into; and (iv) the contract is entered into
11 within one year after the effective date of this amendatory Act
12 of the 94th General Assembly and terminates 20 years after the
13 commencement of the production of synthetic natural gas. The
14 contract shall provide that if, at any time during years 11
15 through 20 of the contract, the Commission determines that the
16 cost for the synthetic natural gas under the contract is not
17 reasonable and prudent, then the company shall reimburse the
18 utility for the difference between the cost deemed reasonable
19 and prudent by the Commission and the cost imposed under the
20 contract.
21     (i) If a gas utility or an affiliate of a gas utility has
22 an ownership interest in any entity that produces or sells
23 synthetic natural gas, Article VII of this Act shall apply.
24 (Source: P.A. 94-63, eff. 6-21-05.)
 
25     (220 ILCS 5/16-101A)

 

 

09500SB1987ham002 - 52 - LRB095 14199 MJR 51811 a

1     Sec. 16-101A. Legislative findings.
2     (a) The citizens and businesses of the State of Illinois
3 have been well-served by a comprehensive electrical utility
4 system which has provided safe, reliable, and affordable
5 service. The electrical utility system in the State of Illinois
6 has historically been subject to State and federal regulation,
7 aimed at assuring the citizens and businesses of the State of
8 safe, reliable, and affordable service, while at the same time
9 assuring the utility system of a return on its investment.
10     (b) Competitive forces are affecting the market for
11 electricity as a result of recent federal regulatory and
12 statutory changes and the activities of other states.
13 Competition in the electric services market may create
14 opportunities for new products and services for customers and
15 lower costs for users of electricity. Long-standing regulatory
16 relationships need to be altered to accommodate the competition
17 that could fundamentally alter the structure of the electric
18 services market.
19     (c) With the advent of increasing competition in this
20 industry, the State has a continued interest in assuring that
21 the safety, reliability, and affordability of electrical power
22 is not sacrificed to competitive pressures, and to that end,
23 intends to implement safeguards to assure that the industry
24 continues to operate the electrical system in a manner that
25 will serve the public's interest. Under the existing regulatory
26 framework, the industry has been encouraged to undertake

 

 

09500SB1987ham002 - 53 - LRB095 14199 MJR 51811 a

1 certain investments in its physical plant and personnel to
2 enhance its efficient operation, the cost of which it has been
3 permitted to pass on to consumers. The State has an interest in
4 providing the existing utilities a reasonable opportunity to
5 obtain a return on certain investments on which they depended
6 in undertaking those commitments in the first instance while,
7 at the same time, not permitting new entrants into the industry
8 to take unreasonable advantage of the investments made by the
9 formerly regulated industry.
10     (d) A competitive wholesale and retail market must benefit
11 all Illinois citizens. The Illinois Commerce Commission should
12 act to promote the development of an effectively competitive
13 electricity market that operates efficiently and is equitable
14 to all consumers. Consumer protections must be in place to
15 ensure that all customers continue to receive safe, reliable,
16 affordable, and environmentally safe electric service.
17     (e) All consumers must benefit in an equitable and timely
18 fashion from the lower costs for electricity that result from
19 retail and wholesale competition and receive sufficient
20 information to make informed choices among suppliers and
21 services. The use of renewable resources and energy efficiency
22 resources should be encouraged in competitive markets.
23     (f) The efficiency of electric markets depends both upon
24 the competitiveness of supply and upon the
25 price-responsiveness of the demand for service. Therefore, to
26 ensure the lowest total cost of service and to enhance the

 

 

09500SB1987ham002 - 54 - LRB095 14199 MJR 51811 a

1 reliability of service, all classes of the electricity
2 customers of electric utilities should have access to and be
3 able to voluntarily use real-time pricing and other
4 price-response and demand-response mechanisms.
5     (g) Including cost-effective renewable resources in a
6 diverse electricity supply portfolio will reduce long-term
7 direct and indirect costs to consumers by decreasing
8 environmental impacts and by avoiding or delaying the need for
9 new generation, transmission, and distribution infrastructure.
10 It serves the public interest to allow electric utilities to
11 recover costs for reasonably and prudently incurred expenses
12 for electricity generated by renewable resources.
13     (h) Including electricity generated by clean coal
14 facilities, as defined under Section 1-10 of the Illinois Power
15 Agency Act, in a diverse electricity procurement portfolio will
16 reduce the need to purchase, directly or indirectly, carbon
17 dioxide emission credits and will decrease environmental
18 impacts. It serves the public interest to allow electric
19 utilities to recover costs for reasonably and prudently
20 incurred expenses for electricity generated by clean coal
21 facilities.
22 (Source: P.A. 94-977, eff. 6-30-06; 95-481, eff. 8-28-07.)
 
23     (220 ILCS 5/16-115)
24     Sec. 16-115. Certification of alternative retail electric
25 suppliers.

 

 

09500SB1987ham002 - 55 - LRB095 14199 MJR 51811 a

1     (a) Any alternative retail electric supplier must obtain a
2 certificate of service authority from the Commission in
3 accordance with this Section before serving any retail customer
4 or other user located in this State. An alternative retail
5 electric supplier may request, and the Commission may grant, a
6 certificate of service authority for the entire State or for a
7 specified geographic area of the State.
8     (b) An alternative retail electric supplier seeking a
9 certificate of service authority shall file with the Commission
10 a verified application containing information showing that the
11 applicant meets the requirements of this Section. The
12 alternative retail electric supplier shall publish notice of
13 its application in the official State newspaper within 10 days
14 following the date of its filing. No later than 45 days after
15 the application is properly filed with the Commission, and such
16 notice is published, the Commission shall issue its order
17 granting or denying the application.
18     (c) An application for a certificate of service authority
19 shall identify the area or areas in which the applicant intends
20 to offer service and the types of services it intends to offer.
21 Applicants that seek to serve residential or small commercial
22 retail customers within a geographic area that is smaller than
23 an electric utility's service area shall submit evidence
24 demonstrating that the designation of this smaller area does
25 not violate Section 16-115A. An applicant that seeks to serve
26 residential or small commercial retail customers may state in

 

 

09500SB1987ham002 - 56 - LRB095 14199 MJR 51811 a

1 its application for certification any limitations that will be
2 imposed on the number of customers or maximum load to be
3 served.
4     (d) The Commission shall grant the application for a
5 certificate of service authority if it makes the findings set
6 forth in this subsection based on the verified application and
7 such other information as the applicant may submit:
8         (1) That the applicant possesses sufficient technical,
9     financial and managerial resources and abilities to
10     provide the service for which it seeks a certificate of
11     service authority. In determining the level of technical,
12     financial and managerial resources and abilities which the
13     applicant must demonstrate, the Commission shall consider
14     (i) the characteristics, including the size and financial
15     sophistication, of the customers that the applicant seeks
16     to serve, and (ii) whether the applicant seeks to provide
17     electric power and energy using property, plant and
18     equipment which it owns, controls or operates;
19         (2) That the applicant will comply with all applicable
20     federal, State, regional and industry rules, policies,
21     practices and procedures for the use, operation, and
22     maintenance of the safety, integrity and reliability, of
23     the interconnected electric transmission system;
24         (3) That the applicant will only provide service to
25     retail customers in an electric utility's service area that
26     are eligible to take delivery services under this Act;

 

 

09500SB1987ham002 - 57 - LRB095 14199 MJR 51811 a

1         (4) That the applicant will comply with such
2     informational or reporting requirements as the Commission
3     may by rule establish and provide the information required
4     by Section 16-112. Any data related to contracts for the
5     purchase and sale of electric power and energy shall be
6     made available for review by the Staff of the Commission on
7     a confidential and proprietary basis and only to the extent
8     and for the purposes which the Commission determines are
9     reasonably necessary in order to carry out the purposes of
10     this Act;
11         (5) That the applicant will supply electricity
12     generated by renewable energy resources and clean coal
13     facilities, as defined in Section 1-10 of the Illinois
14     Power Agency Act, to all of the applicant's Illinois
15     customers in amounts at least equal to the percentages set
16     forth in subsections (c) and (d) of Section 1-72 of the
17     Illinois Power Agency Act. For purposes of this Section:
18             (i) The required procurement of electricity
19         generated by renewable energy resources and clean coal
20         facilities shall be measured as a percentage of the
21         actual amount of electricity (megawatt-hours) supplied
22         by the alternative retail electric supplier in the
23         prior calendar year, as reported for that year to the
24         Commission. This purchase obligation applies to all
25         electricity sold pursuant to retail contracts
26         executed, extended, or otherwise revised after the

 

 

09500SB1987ham002 - 58 - LRB095 14199 MJR 51811 a

1         effective date of this amendatory Act, provided the
2         alternative retail electric supplier submits all
3         documentation needed by the Commission to determine
4         the actual amount of electricity supplied under
5         contracts that may be excluded under this limitation.
6             (ii) An alternative retail electric supplier need
7         not actually deliver electricity purchased to comply
8         with this Section to its customers, provided that if
9         the alternative retail electric supplier claims credit
10         for such purpose, subsequent purchasers shall not
11         receive any emission credits or renewable energy
12         credits in connection with the purchase of such
13         electricity. Alternative retail electric suppliers
14         shall maintain adequate records documenting the
15         contractual disposition of all electricity purchased
16         to comply with this Section and shall file an
17         accounting in the report which must be filed with the
18         Commission on August 1 of each year, starting in 2009,
19         in accordance with subsection (e) of this Section.
20             (iii) The required procurement of electricity
21         generated by renewable resources and clean coal
22         facilities, other than the initial clean coal
23         facility, shall be limited to the amount of electricity
24         that can be purchased at a price at or below the
25         benchmarks approved by the Commission each year in
26         accordance with item (1) of subsection (c) and items

 

 

09500SB1987ham002 - 59 - LRB095 14199 MJR 51811 a

1         (1) and (5) of subsection (d) of Section 1-75 of the
2         Illinois Power Agency Act.
3             (iv) all alternative retail electric suppliers
4         shall execute a power purchase agreement to purchase
5         electricity from the initial clean coal facility, on
6         the terms set forth in items (3) and (4) of subsection
7         (d) of Section 1-75 of the Illinois Power Agency Act,
8         except that in lieu of the requirements in items
9         (3)(vi), (xiii), and (xiv) of that subsection (d), the
10         applicant shall contract to purchase in each hour an
11         amount of electricity equal to all clean coal energy
12         made available from the initial clean coal facility to
13         all alternative retail electric suppliers, multiplied
14         by a fraction, the numerator of which is the
15         alternative electricity retail electric supplier's
16         Illinois market share, expressed in kilowatt-hours
17         sold during the prior month and the denominator of
18         which is the total market shares during the prior month
19         of all alternative retail electric suppliers that are
20         party to power purchase agreements with the initial
21         clean coal facility.
22             (v) if, in any year after the third year of
23         commercial operation, the owner of the clean coal
24         facility fails to demonstrate to the Commission that
25         the initial clean coal facility captured and
26         sequestered at least 50% of the total carbon emissions

 

 

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1         that the facility would otherwise emit or that
2         sequestration of emissions from prior years has
3         failed, resulting in the release of carbon into the
4         atmosphere, the owner of the facility must offset
5         excess emissions. Any such carbon offsets must be
6         permanent, additional, verifiable, real, located
7         within the State of Illinois, and legally and
8         practicably enforceable. The costs of any such offsets
9         that are not recoverable shall not exceed $15 million
10         in any given year. No costs of any such purchases of
11         carbon offsets may be recovered from an alternative
12         retail electric supplier or its customers. All carbon
13         offsets purchased for this purpose and any carbon
14         emission credits associated with sequestration of
15         carbon from the facility must be permanently retired.
16         The initial clean coal facility shall not forfeit its
17         designation as a clean coal facility if the facility
18         fails to fully comply with the applicable carbon
19         sequestration requirements in any given year, provided
20         the requisite offsets are purchased. However, the
21         Attorney General, on behalf of the People of the State
22         of Illinois, may specifically enforce the facility's
23         sequestration requirement and the other terms of this
24         contract provision (Blank);
25         (6) With respect to an applicant that seeks to serve
26     residential or small commercial retail customers, that the

 

 

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1     area to be served by the applicant and any limitations it
2     proposes on the number of customers or maximum amount of
3     load to be served meet the provisions of Section 16-115A,
4     provided, that the Commission can extend the time for
5     considering such a certificate request by up to 90 days,
6     and can schedule hearings on such a request;
7         (7) That the applicant meets the requirements of
8     subsection (a) of Section 16-128; and
9         (8) That the applicant will comply with all other
10     applicable laws and regulations.
11     (d-5) The Commission shall revoke the certification of any
12 alternative retail electric supplier that fails to execute a
13 power purchase agreement to purchase electricity from the
14 initial clean coal facility, as required by item (5) of
15 subsection (d) of this Section, within 60 days after the later
16 of the effective date of this amendatory Act or approval of the
17 agreement by the Federal Energy Regulatory Commission, and
18 that, on August 1, 2009 and each year thereafter, fails to
19 demonstrate that the electricity provided to the alternative
20 retail electricity supplier's Illinois customers during the
21 previous year was generated by renewable energy resources and
22 clean coal facilities in amounts at least equal to the
23 percentages set forth in subsections (c) and (d) of Section
24 1-75 of the Illinois Power Agency Act, as limited by subsection
25 (d)(5)(iii) of this Section. The Commission shall not accept an
26 application for certification from an alternative retail

 

 

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1 electric supplier that has lost certification under this
2 subsection (d-5), or any corporate affiliate thereof, for at
3 least one year from the date of revocation.
4     (e) A retail customer that owns a cogeneration or
5 self-generation facility and that seeks certification only to
6 provide electric power and energy from such facility to retail
7 customers at separate locations which customers are both (i)
8 owned by, or a subsidiary or other corporate affiliate of, such
9 applicant and (ii) eligible for delivery services, shall be
10 granted a certificate of service authority upon filing an
11 application and notifying the Commission that it has entered
12 into an agreement with the relevant electric utilities pursuant
13 to Section 16-118. Provided, however, that if the retail
14 customer owning such cogeneration or self-generation facility
15 would not be charged a transition charge due to the exemption
16 provided under subsection (f) of Section 16-108 prior to the
17 certification, and the retail customers at separate locations
18 are taking delivery services in conjunction with purchasing
19 power and energy from the facility, the retail customer on
20 whose premises the facility is located shall not thereafter be
21 required to pay transition charges on the power and energy that
22 such retail customer takes from the facility.
23     (f) The Commission shall have the authority to promulgate
24 rules and regulations to carry out the provisions of this
25 Section. On or before May 1, 1999, the Commission shall adopt a
26 rule or rules applicable to the certification of those

 

 

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1 alternative retail electric suppliers that seek to serve only
2 nonresidential retail customers with maximum electrical
3 demands of one megawatt or more which shall provide for (i)
4 expedited and streamlined procedures for certification of such
5 alternative retail electric suppliers and (ii) specific
6 criteria which, if met by any such alternative retail electric
7 supplier, shall constitute the demonstration of technical,
8 financial and managerial resources and abilities to provide
9 service required by subsection (d) (1) of this Section, such as
10 a requirement to post a bond or letter of credit, from a
11 responsible surety or financial institution, of sufficient
12 size for the nature and scope of the services to be provided;
13 demonstration of adequate insurance for the scope and nature of
14 the services to be provided; and experience in providing
15 similar services in other jurisdictions.
16 (Source: P.A. 95-130, eff. 1-1-08.)
 
17
ARTICLE 5

 
18     Section 5-5. The Public Utilities Act is amended by
19 changing Section 2-203 as follows:
 
20     (220 ILCS 5/2-203)
21     (Section scheduled to be repealed on January 1, 2009)
22     Sec. 2-203. Public Utility Fund base maintenance
23 contribution. Each For each of the years 2003 through 2008,

 

 

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1 each electric utility as defined in Section 16-102 of this Act
2 providing service to more than 12,500 customers in this State
3 on January 1, 1995 shall contribute annually a pro rata share
4 of a total amount of $5,500,000 based upon the number of
5 kilowatt-hours delivered to retail customers within this State
6 by each such electric utility in the 12 months preceding the
7 year of contribution. On or before May 1 of each year, the
8 Illinois Commerce Commission shall determine and notify the
9 Illinois Department of Revenue of the pro rata share owed by
10 each electric utility based upon information supplied annually
11 to the Commission. On or before June 1 of each year, the
12 Department of Revenue shall send written notification to each
13 electric utility of the amount of pro rata share they owe.
14 These contributions shall be remitted to the Department of
15 Revenue no earlier that July 1 and no later than July 31 of
16 each year the contribution is due on a return prescribed and
17 furnished by the Department of Revenue showing such information
18 as the Department of Revenue may reasonably require. The
19 Department of Revenue shall place the funds remitted under this
20 Section in the Public Utility Fund in the State treasury. The
21 funds received pursuant to this Section shall be subject to
22 appropriation by the General Assembly. If an electric utility
23 does not remit its pro rata share to the Department of Revenue,
24 the Department of Revenue must inform the Illinois Commerce
25 Commission of such failure. The Illinois Commerce Commission
26 may then revoke the certification of that electric utility.

 

 

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1 This Section is repealed on January 1, 2014 2009.
2 (Source: P.A. 92-600, eff. 6-28-02.)
 
3
ARTICLE 10.

 
4     Section 10-5. The Public Utilities Act is amended by
5 changing Section 16-125 as follows:
 
6     (220 ILCS 5/16-125)
7     Sec. 16-125. Transmission and distribution reliability
8 requirements.
9     (a) To assure the reliable delivery of electricity to all
10 customers in this State and the effective implementation of the
11 provisions of this Article, the Commission shall, within 180
12 days of the effective date of this Article, adopt rules and
13 regulations for assessing and assuring the reliability of the
14 transmission and distribution systems and facilities that are
15 under the Commission's jurisdiction.
16     (b) These rules and regulations shall require each electric
17 utility or alternative retail electric supplier owning,
18 controlling, or operating transmission and distribution
19 facilities and equipment subject to the Commission's
20 jurisdiction, referred to in this Section as "jurisdictional
21 entities", to adopt and implement procedures for restoring
22 transmission and distribution services to customers after
23 transmission or distribution outages on a nondiscriminatory

 

 

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1 basis without regard to whether a customer has chosen the
2 electric utility, an affiliate of the electric utility, or
3 another entity as its provider of electric power and energy.
4 These rules and regulations shall also, at a minimum,
5 specifically require each jurisdictional entity to submit
6 annually to the Commission.
7         (1) the number and duration of planned and unplanned
8     outages during the prior year and their impacts on
9     customers;
10         (2) outages that were controllable and outages that
11     were exacerbated in scope or duration by the condition of
12     facilities, equipment or premises or by the actions or
13     inactions of operating personnel or agents;
14         (3) customer service interruptions that were due
15     solely to the actions or inactions of an alternative retail
16     electric supplier or a public utility in supplying power or
17     energy;
18         (4) a detailed report of the age, current condition,
19     reliability and performance of the jurisdictional entity's
20     existing transmission and distribution facilities, which
21     shall include, without limitation, the following data:
22             (i) a summary of the jurisdictional entity's
23         outages and voltage variances reportable under the
24         Commission's rules;
25             (ii) the jurisdictional entity's expenditures for
26         transmission construction and maintenance, the ratio

 

 

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1         of those expenditures to the jurisdictional entity's
2         transmission investment, and the average remaining
3         depreciation lives of the entity's transmission
4         facilities, expressed as a percentage of total
5         depreciation lives;
6             (iii) the jurisdictional entity's expenditures for
7         distribution construction and maintenance, the ratio
8         of those expenditures to the jurisdictional entity's
9         distribution investment, and the average remaining
10         depreciation lives of the entity's distribution
11         facilities, expressed as a percentage of total
12         depreciation lives;
13             (iv) a customer satisfaction survey covering,
14         among other areas identified in Commission rules,
15         reliability, customer service, and understandability
16         of the jurisdictional entity's services and prices;
17         and
18             (v) the corresponding information, in the same
19         format, for the previous 3 years, if available;
20         (5) a plan for future investment and reliability
21     improvements for the jurisdictional entity's transmission
22     and distribution facilities that will ensure continued
23     reliable delivery of energy to customers and provide the
24     delivery reliability needed for fair and open competition;
25     and
26         (6) a report of the jurisdictional entity's

 

 

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1     implementation of its plan filed pursuant to subparagraph
2     (5) for the previous reporting period.
3     (c) The Commission rules shall set forth the criteria that
4 will be used to assess each jurisdictional entity's annual
5 report and evaluate its reliability performance. Such criteria
6 must take into account, at a minimum: the items required to be
7 reported in subsection (b); the relevant characteristics of the
8 area served; the age and condition of the system's equipment
9 and facilities; good engineering practices; the costs of
10 potential actions; and the benefits of avoiding the risks of
11 service disruption.
12     (d) At least every 3 years, beginning in the year the
13 Commission issues the rules required by subsection (a) or the
14 following year if the rules are issued after June 1, the
15 Commission shall assess the annual report of each
16 jurisdictional entity and evaluate its reliability
17 performance. The Commission's evaluation shall include
18 specific identification of, and recommendations concerning,
19 any potential reliability problems that it has identified as a
20 result of its evaluation.
21     (e) In the event that more than either (i) 30,000 (or some
22 other number, but only as provided by statute) of the total
23 customers or (ii) 0.8% (or some other percentage, but only as
24 provided by statute) of the total customers, whichever is less,
25 of an electric utility are subjected to a continuous power
26 interruption of 4 hours or more that results in the

 

 

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1 transmission of power at less than 50% of the standard voltage,
2 or that results in the total loss of power transmission, the
3 utility shall be responsible for compensating customers
4 affected by that interruption for 4 hours or more for all
5 actual damages, which shall not include consequential damages,
6 suffered as a result of the power interruption. The utility
7 shall also reimburse the affected municipality, county, or
8 other unit of local government in which the power interruption
9 has taken place for all emergency and contingency expenses
10 incurred by the unit of local government as a result of the
11 interruption. A waiver of the requirements of this subsection
12 may be granted by the Commission in instances in which the
13 utility can show that the power interruption was a result of
14 any one or more of the following causes:
15         (1) Unpreventable damage due to weather events or
16     conditions.
17         (2) Customer tampering.
18         (3) Unpreventable damage due to civil or international
19     unrest or animals.
20         (4) Damage to utility equipment or other actions by a
21     party other than the utility, its employees, agents, or
22     contractors.
23 Loss of revenue and expenses incurred in complying with this
24 subsection may not be recovered from ratepayers.
25     (f) In the event of a power surge or other fluctuation that
26 causes damage and affects more than either (i) 30,000 (or some

 

 

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1 other number, but only as provided by statute) of the total
2 customers or (ii) 0.8% (or some other percentage, but only as
3 provided by statute) of the total customers, whichever is less,
4 the electric utility shall pay to affected customers the
5 replacement value of all goods damaged as a result of the power
6 surge or other fluctuation unless the utility can show that the
7 power surge or other fluctuation was due to one or more of the
8 following causes:
9         (1) Unpreventable damage due to weather events or
10     conditions.
11         (2) Customer tampering.
12         (3) Unpreventable damage due to civil or international
13     unrest or animals.
14         (4) Damage to utility equipment or other actions by a
15     party other than the utility, its employees, agents, or
16     contractors.
17 Loss of revenue and expenses incurred in complying with this
18 subsection may not be recovered from ratepayers. Customers with
19 respect to whom a waiver has been granted by the Commission
20 pursuant to subparagraphs (1)-(4) of subsections (e) and (f)
21 shall not count toward the either (i) 30,000 (or some other
22 number, but only as provided by statute) of the total customers
23 or (ii) 0.8% (or some other percentage, but only as provided by
24 statute) of the total customers required therein.
25     (g) Whenever an electric utility must perform planned or
26 routine maintenance or repairs on its equipment that will

 

 

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1 result in transmission of power at less than 50% of the
2 standard voltage, loss of power, or power fluctuation (as
3 defined in subsection (f)), the utility shall make reasonable
4 efforts to notify potentially affected customers no less than
5 24 hours in advance of performance of the repairs or
6 maintenance.
7     (h) Remedies provided for under this Section may be sought
8 exclusively through the Illinois Commerce Commission as
9 provided under Section 10-109 of this Act. Damages awarded
10 under this Section for a power interruption shall be limited to
11 actual damages, which shall not include consequential damages,
12 and litigation costs. A utility's request for a waiver of this
13 Section shall be timely if filed no later than 30 days after
14 the date on which a claim is filed with the Commission seeking
15 damages or expense reimbursement under this Section. No utility
16 shall be liable under this Section while a request for waiver
17 is pending. Damage awards may not be paid out of utility rate
18 funds.
19     (i) The provisions of this Section shall not in any way
20 diminish or replace other civil or administrative remedies
21 available to a customer or a class of customers.
22     (j) The Commission shall by rule require an electric
23 utility to maintain service records detailing information on
24 each instance of transmission of power at less than 50% of the
25 standard voltage, loss of power, or power fluctuation (as
26 defined in subsection (f)), that affects 10 or more customers.

 

 

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1 Occurrences that are momentary shall not be required to be
2 recorded or reported. The service record shall include, for
3 each occurrence, the following information:
4         (1) The date.
5         (2) The time of occurrence.
6         (3) The duration of the incident.
7         (4) The number of customers affected.
8         (5) A description of the cause.
9         (6) The geographic area affected.
10         (7) The specific equipment involved in the fluctuation
11     or interruption.
12         (8) A description of measures taken to restore service.
13         (9) A description of measures taken to remedy the cause
14     of the power interruption or fluctuation.
15         (10) A description of measures taken to prevent future
16     occurrence.
17         (11) The amount of remuneration, if any, paid to
18     affected customers.
19         (12) A statement of whether the fixed charge was waived
20     for affected customers.
21     Copies of the records containing this information shall be
22 available for public inspection at the utility's offices, and
23 copies thereof may be obtained upon payment of a fee not
24 exceeding the reasonable cost of reproduction. A copy of each
25 record shall be filed with the Commission and shall be
26 available for public inspection. Copies of the records may be

 

 

09500SB1987ham002 - 73 - LRB095 14199 MJR 51811 a

1 obtained upon payment of a fee not exceeding the reasonable
2 cost of reproduction.
3     (k) The requirements of subsections (e) through (j) of this
4 Section shall apply only to an electric public utility having
5 100,000 1,000,000 or more customers.
6 (Source: P.A. 90-561, eff. 12-16-97.)
 
7
ARTICLE 15

 
8     Section 15-5. The Public Utilities Act is amended by
9 changing Section 2-202 as follows:
 
10     (220 ILCS 5/2-202)  (from Ch. 111 2/3, par. 2-202)
11     Sec. 2-202. Policy; Public Utility Fund; tax.
12     (a) It is declared to be the public policy of this State
13 that in order to maintain and foster the effective regulation
14 of public utilities under this Act in the interests of the
15 People of the State of Illinois and the public utilities as
16 well, the public utilities subject to regulation under this Act
17 and which enjoy the privilege of operating as public utilities
18 in this State, shall bear the expense of administering this Act
19 by means of a tax on such privilege measured by the annual
20 gross revenue of such public utilities in the manner provided
21 in this Section. For purposes of this Section, "expense of
22 administering this Act" includes any costs incident to studies,
23 whether made by the Commission or under contract entered into

 

 

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1 by the Commission, concerning environmental pollution problems
2 caused or contributed to by public utilities and the means for
3 eliminating or abating those problems. Such proceeds shall be
4 deposited in the Public Utility Fund in the State treasury.
5     (b) All of the ordinary and contingent expenses of the
6 Commission incident to the administration of this Act shall be
7 paid out of the Public Utility Fund except the compensation of
8 the members of the Commission which shall be paid from the
9 General Revenue Fund. Notwithstanding other provisions of this
10 Act to the contrary, the ordinary and contingent expenses of
11 the Commission incident to the administration of the Illinois
12 Commercial Transportation Law may be paid from appropriations
13 from the Public Utility Fund through the end of fiscal year
14 1986.
15     (c) A tax is imposed upon each public utility subject to
16 the provisions of this Act equal to .08% of its gross revenue
17 for each calendar year commencing with the calendar year
18 beginning January 1, 1982, except that the Commission may, by
19 rule, establish a different rate no greater than 0.1%. For
20 purposes of this Section, "gross revenue" shall not include
21 revenue from the production, transmission, distribution, sale,
22 delivery, or furnishing of electricity. "Gross revenue" shall
23 not include amounts paid by telecommunications retailers under
24 the Telecommunications Infrastructure Maintenance Fee Act.
25     (d) Annual gross revenue returns shall be filed in
26 accordance with paragraph (1) or (2) of this subsection (d).

 

 

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1         (1) Except as provided in paragraph (2) of this
2     subsection (d), on or before January 10 of each year each
3     public utility subject to the provisions of this Act shall
4     file with the Commission an estimated annual gross revenue
5     return containing an estimate of the amount of its gross
6     revenue for the calendar year commencing January 1 of said
7     year and a statement of the amount of tax due for said
8     calendar year on the basis of that estimate. Public
9     utilities may also file revised returns containing updated
10     estimates and updated amounts of tax due during the
11     calendar year. These revised returns, if filed, shall form
12     the basis for quarterly payments due during the remainder
13     of the calendar year. In addition, on or before March 31 of
14     each year, each public utility shall file an amended return
15     showing the actual amount of gross revenues shown by the
16     company's books and records as of December 31 of the
17     previous year. Forms and instructions for such estimated,
18     revised, and amended returns shall be devised and supplied
19     by the Commission.
20         (2) Beginning with returns due after January 1, 2002,
21     the requirements of paragraph (1) of this subsection (d)
22     shall not apply to any public utility in any calendar year
23     for which the total tax the public utility owes under this
24     Section is less than $10,000. For such public utilities
25     with respect to such years, the public utility shall file
26     with the Commission, on or before March 31 of the following

 

 

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1     year, an annual gross revenue return for the year and a
2     statement of the amount of tax due for that year on the
3     basis of such a return. Forms and instructions for such
4     returns and corrected returns shall be devised and supplied
5     by the Commission.
6     (e) All returns submitted to the Commission by a public
7 utility as provided in this subsection (e) or subsection (d) of
8 this Section shall contain or be verified by a written
9 declaration by an appropriate officer of the public utility
10 that the return is made under the penalties of perjury. The
11 Commission may audit each such return submitted and may, under
12 the provisions of Section 5-101 of this Act, take such measures
13 as are necessary to ascertain the correctness of the returns
14 submitted. The Commission has the power to direct the filing of
15 a corrected return by any utility which has filed an incorrect
16 return and to direct the filing of a return by any utility
17 which has failed to submit a return. A taxpayer's signing a
18 fraudulent return under this Section is perjury, as defined in
19 Section 32-2 of the Criminal Code of 1961.
20     (f) (1) For all public utilities subject to paragraph (1)
21 of subsection (d), at least one quarter of the annual amount of
22 tax due under subsection (c) shall be paid to the Commission on
23 or before the tenth day of January, April, July, and October of
24 the calendar year subject to tax. In the event that an
25 adjustment in the amount of tax due should be necessary as a
26 result of the filing of an amended or corrected return under

 

 

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1 subsection (d) or subsection (e) of this Section, the amount of
2 any deficiency shall be paid by the public utility together
3 with the amended or corrected return and the amount of any
4 excess shall, after the filing of a claim for credit by the
5 public utility, be returned to the public utility in the form
6 of a credit memorandum in the amount of such excess or be
7 refunded to the public utility in accordance with the
8 provisions of subsection (k) of this Section. However, if such
9 deficiency or excess is less than $1, then the public utility
10 need not pay the deficiency and may not claim a credit.
11     (2) Any public utility subject to paragraph (2) of
12 subsection (d) shall pay the amount of tax due under subsection
13 (c) on or before March 31 next following the end of the
14 calendar year subject to tax. In the event that an adjustment
15 in the amount of tax due should be necessary as a result of the
16 filing of a corrected return under subsection (e), the amount
17 of any deficiency shall be paid by the public utility at the
18 time the corrected return is filed. Any excess tax payment by
19 the public utility shall be returned to it after the filing of
20 a claim for credit, in the form of a credit memorandum in the
21 amount of the excess. However, if such deficiency or excess is
22 less than $1, the public utility need not pay the deficiency
23 and may not claim a credit.
24     (g) Each installment or required payment of the tax imposed
25 by subsection (c) becomes delinquent at midnight of the date
26 that it is due. Failure to make a payment as required by this

 

 

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1 Section shall result in the imposition of a late payment
2 penalty, an underestimation penalty, or both, as provided by
3 this subsection. The late payment penalty shall be the greater
4 of:
5         (1) $25 for each month or portion of a month that the
6     installment or required payment is unpaid or
7         (2) an amount equal to the difference between what
8     should have been paid on the due date, based upon the most
9     recently filed estimated, annual, or amended return, and
10     what was actually paid, times 1%, for each month or portion
11     of a month that the installment or required payment goes
12     unpaid. This penalty may be assessed as soon as the
13     installment or required payment becomes delinquent.
14     The underestimation penalty shall apply to those public
15 utilities subject to paragraph (1) of subsection (d) and shall
16 be calculated after the filing of the amended return. It shall
17 be imposed if the amount actually paid on any of the dates
18 specified in subsection (f) is not equal to at least one-fourth
19 of the amount actually due for the year, and shall equal the
20 greater of:
21         (1) $25 for each month or portion of a month that the
22     amount due is unpaid or
23         (2) an amount equal to the difference between what
24     should have been paid, based on the amended return, and
25     what was actually paid as of the date specified in
26     subsection (f), times a percentage equal to 1/12 of the sum

 

 

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1     of 10% and the percentage most recently established by the
2     Commission for interest to be paid on customer deposits
3     under 83 Ill. Adm. Code 280.70(e)(1), for each month or
4     portion of a month that the amount due goes unpaid, except
5     that no underestimation penalty shall be assessed if the
6     amount actually paid on or before each of the dates
7     specified in subsection (f) was based on an estimate of
8     gross revenues at least equal to the actual gross revenues
9     for the previous year. The Commission may enforce the
10     collection of any delinquent installment or payment, or
11     portion thereof by legal action or in any other manner by
12     which the collection of debts due the State of Illinois may
13     be enforced under the laws of this State. The executive
14     director or his designee may excuse the payment of an
15     assessed penalty or a portion of an assessed penalty if he
16     determines that enforced collection of the penalty as
17     assessed would be unjust.
18     (h) All sums collected by the Commission under the
19 provisions of this Section shall be paid promptly after the
20 receipt of the same, accompanied by a detailed statement
21 thereof, into the Public Utility Fund in the State treasury.
22     (i) During the month of October of each odd-numbered year
23 the Commission shall:
24         (1) determine the amount of all moneys deposited in the
25     Public Utility Fund during the preceding fiscal biennium
26     plus the balance, if any, in that fund at the beginning of

 

 

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1     that biennium;
2         (2) determine the sum total of the following items: (A)
3     all moneys expended or obligated against appropriations
4     made from the Public Utility Fund during the preceding
5     fiscal biennium, plus (B) the sum of the credit memoranda
6     then outstanding against the Public Utility Fund, if any;
7     and
8         (3) determine the amount, if any, by which the sum
9     determined as provided in item (1) exceeds the amount
10     determined as provided in item (2).
11     If the amount determined as provided in item (3) of this
12 subsection exceeds 50% of the previous fiscal year's
13 appropriation level $5,000,000, the Commission shall then
14 compute the proportionate amount, if any, which (x) the tax
15 paid hereunder by each utility during the preceding biennium,
16 and (y) the amount paid into the Public Utility Fund during the
17 preceding biennium by the Department of Revenue pursuant to
18 Sections 2-9 and 2-11 of the Electricity Excise Tax Law, bears
19 to the difference between the amount determined as provided in
20 item (3) of this subsection (i) and 50% of the previous fiscal
21 year's appropriation level $5,000,000. The Commission shall
22 cause the proportionate amount determined with respect to
23 payments made under the Electricity Excise Tax Law to be
24 transferred into the General Revenue Fund in the State
25 Treasury, and notify each public utility that it may file
26 during the 3 month period after the date of notification a

 

 

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1 claim for credit for the proportionate amount determined with
2 respect to payments made hereunder by the public utility. If
3 the proportionate amount is less than $10, no notification will
4 be sent by the Commission, and no right to a claim exists as to
5 that amount. Upon the filing of a claim for credit within the
6 period provided, the Commission shall issue a credit memorandum
7 in such amount to such public utility. Any claim for credit
8 filed after the period provided for in this Section is void.
9     (j) Credit memoranda issued pursuant to subsection (f) and
10 credit memoranda issued after notification and filing pursuant
11 to subsection (i) may be applied for the 2 year period from the
12 date of issuance, against the payment of any amount due during
13 that period under the tax imposed by subsection (c), or,
14 subject to reasonable rule of the Commission including
15 requirement of notification, may be assigned to any other
16 public utility subject to regulation under this Act. Any
17 application of credit memoranda after the period provided for
18 in this Section is void.
19     (k) The chairman or executive director may make refund of
20 fees, taxes or other charges whenever he shall determine that
21 the person or public utility will not be liable for payment of
22 such fees, taxes or charges during the next 24 months and he
23 determines that the issuance of a credit memorandum would be
24 unjust.
25 (Source: P.A. 92-11, eff. 6-11-01; 92-22, eff. 6-30-01; 92-526,
26 eff. 1-1-03.)
 

 

 

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1     Section 15-10. The Illinois Vehicle Code is amended by
2 changing Section 18c-1503 as follows:
 
3     (625 ILCS 5/18c-1503)  (from Ch. 95 1/2, par. 18c-1503)
4     Sec. 18c-1503. Legislative Intent. It is the intent of the
5 Legislature that the exercise of powers under Sections 18c-1501
6 and 18c-1502 of this Chapter shall not diminish revenues to the
7 Commission, and that any surplus or deficit of revenues in the
8 Transportation Regulatory Fund, together with any projected
9 changes in the cost of administering and enforcing this
10 Chapter, should be considered in establishing or adjusting fees
11 and taxes in succeeding years. The Commission shall administer
12 fees and taxes under this Chapter in such a manner as to insure
13 that any surplus generated or accumulated in the Transportation
14 Regulatory Fund does not exceed 50% of the previous fiscal
15 year's appropriation the surplus accumulated in the Motor
16 Vehicle Fund during fiscal year 1984, and shall adjust the
17 level of such fees and taxes to insure compliance with this
18 provision.
19 (Source: P.A. 84-796.)
 
20
ARTICLE 99

 
21     Section 99-97. Severability. The provisions of this Act are
22 severable under Section 1.31 of the Statute on Statutes.
 

 

 

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1     Section 99-99. Effective date. This Act takes effect upon
2 becoming law.".