Sen. Don Harmon

Filed: 5/6/2010

 

 


 

 


 
09600HB6202sam003 LRB096 18131 JDS 41397 a

1
AMENDMENT TO HOUSE BILL 6202

2     AMENDMENT NO. ______. Amend House Bill 6202, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
 
5     "Section 5. The Illinois Power Agency Act is amended by
6 changing Sections 1-56 and 1-75 as follows:
 
7     (20 ILCS 3855/1-56)
8     Sec. 1-56. Illinois Power Agency Renewable Energy
9 Resources Fund.
10     (a) The Illinois Power Agency Renewable Energy Resources
11 Fund is created as a special fund in the State treasury.
12     (b) The Illinois Power Agency Renewable Energy Resources
13 Fund shall be administered by the Agency to procure renewable
14 energy resources. Prior to June 1, 2011, resources procured
15 pursuant to this Section shall be procured from facilities
16 located in Illinois, provided the resources are available from

 

 

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1 those facilities. If resources are not available in Illinois,
2 then they shall be procured in states that adjoin Illinois. If
3 resources are not available in Illinois or in states that
4 adjoin Illinois, then they may be purchased elsewhere.
5 Beginning June 1, 2011, resources procured pursuant to this
6 Section shall be procured from facilities located in Illinois
7 or states that adjoin Illinois. If resources are not available
8 in Illinois or in states that adjoin Illinois, then they may be
9 procured elsewhere. To the extent available, at least 75% of
10 these renewable energy resources shall come from wind
11 generation. Of the renewable energy resources procured
12 pursuant to this Section at least the following specified
13 percentages shall come from photovoltaics on the following
14 schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by
15 June 1, 2014; and 6% by June 1, 2015 and thereafter and,
16 starting June 1, 2015, at least 6% of the renewable energy
17 resources used to meet these standards shall come from solar
18 photovoltaics.
19     (c) The Agency shall procure renewable energy resources at
20 least once each year in conjunction with a procurement event
21 for electric utilities required to comply with Section 1-75 of
22 the Act and shall, whenever possible, enter into long-term
23 contracts.
24     (d) The price paid to procure renewable energy credits
25 using monies from the Illinois Power Agency Renewable Energy
26 Resources Fund shall not exceed the winning bid prices paid for

 

 

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1 like resources procured for electric utilities required to
2 comply with Section 1-75 of this Act.
3     (e) All renewable energy credits procured using monies from
4 the Illinois Power Agency Renewable Energy Resources Fund shall
5 be permanently retired.
6     (f) The procurement process described in this Section is
7 exempt from the requirements of the Illinois Procurement Code,
8 pursuant to Section 20-10 of that Code.
9     (g) All disbursements from the Illinois Power Agency
10 Renewable Energy Resources Fund shall be made only upon
11 warrants of the Comptroller drawn upon the Treasurer as
12 custodian of the Fund upon vouchers signed by the Director or
13 by the person or persons designated by the Director for that
14 purpose. The Comptroller is authorized to draw the warrant upon
15 vouchers so signed. The Treasurer shall accept all warrants so
16 signed and shall be released from liability for all payments
17 made on those warrants.
18     (h) The Illinois Power Agency Renewable Energy Resources
19 Fund shall not be subject to sweeps, administrative charges, or
20 chargebacks, including, but not limited to, those authorized
21 under Section 8h of the State Finance Act, that would in any
22 way result in the transfer of any funds from this Fund to any
23 other fund of this State or in having any such funds utilized
24 for any purpose other than the express purposes set forth in
25 this Section.
26 (Source: P.A. 96-159, eff. 8-10-09.)
 

 

 

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1     (20 ILCS 3855/1-75)
2     Sec. 1-75. Planning and Procurement Bureau. The Planning
3 and Procurement Bureau has the following duties and
4 responsibilities:
5         (a) The Planning and Procurement Bureau shall each
6     year, beginning in 2008, develop procurement plans and
7     conduct competitive procurement processes in accordance
8     with the requirements of Section 16-111.5 of the Public
9     Utilities Act for the eligible retail customers of electric
10     utilities that on December 31, 2005 provided electric
11     service to at least 100,000 customers in Illinois. For the
12     purposes of this Section, the term "eligible retail
13     customers" has the same definition as found in Section
14     16-111.5(a) of the Public Utilities Act.
15             (1) The Agency shall each year, beginning in 2008,
16         as needed, issue a request for qualifications for
17         experts or expert consulting firms to develop the
18         procurement plans in accordance with Section 16-111.5
19         of the Public Utilities Act. In order to qualify an
20         expert or expert consulting firm must have:
21                 (A) direct previous experience assembling
22             large-scale power supply plans or portfolios for
23             end-use customers;
24                 (B) an advanced degree in economics,
25             mathematics, engineering, risk management, or a

 

 

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

 

 

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1             sector, including risk management experience;
2                 (D) expertise in wholesale electricity market
3             rules, including those established by the Federal
4             Energy Regulatory Commission and regional
5             transmission organizations;
6                 (E) expertise in credit and contract
7             protocols;
8                 (F) adequate resources to perform and fulfill
9             the required functions and responsibilities; and
10                 (G) the absence of a conflict of interest and
11             inappropriate bias for or against potential
12             bidders or the affected electric utilities.
13             (3) The Agency shall provide affected utilities
14         and other interested parties with the lists of
15         qualified experts or expert consulting firms
16         identified through the request for qualifications
17         processes that are under consideration to develop the
18         procurement plans and to serve as the procurement
19         administrator. The Agency shall also provide each
20         qualified expert's or expert consulting firm's
21         response to the request for qualifications. All
22         information provided under this subparagraph shall
23         also be provided to the Commission. The Agency may
24         provide by rule for fees associated with supplying the
25         information to utilities and other interested parties.
26         These parties shall, within 5 business days, notify the

 

 

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1         Agency in writing if they object to any experts or
2         expert consulting firms on the lists. Objections shall
3         be based on:
4                 (A) failure to satisfy qualification criteria;
5                 (B) identification of a conflict of interest;
6             or
7                 (C) evidence of inappropriate bias for or
8             against potential bidders or the affected
9             utilities.
10             The Agency shall remove experts or expert
11         consulting firms from the lists within 10 days if there
12         is a reasonable basis for an objection and provide the
13         updated lists to the affected utilities and other
14         interested parties. If the Agency fails to remove an
15         expert or expert consulting firm from a list, an
16         objecting party may seek review by the Commission
17         within 5 days thereafter by filing a petition, and the
18         Commission shall render a ruling on the petition within
19         10 days. There is no right of appeal of the
20         Commission's ruling.
21             (4) The Agency shall issue requests for proposals
22         to the qualified experts or expert consulting firms to
23         develop a procurement plan for the affected utilities
24         and to serve as procurement administrator.
25             (5) The Agency shall select an expert or expert
26         consulting firm to develop procurement plans based on

 

 

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1         the proposals submitted and shall award one-year
2         contracts to those selected with an option for the
3         Agency for a one-year renewal.
4             (6) The Agency shall select an expert or expert
5         consulting firm, with approval of the Commission, to
6         serve as procurement administrator based on the
7         proposals submitted. If the Commission rejects, within
8         5 days, the Agency's selection, the Agency shall submit
9         another recommendation within 3 days based on the
10         proposals submitted. The Agency shall award a one-year
11         contract to the expert or expert consulting firm so
12         selected with Commission approval with an option for
13         the Agency for a one-year renewal.
14         (b) The experts or expert consulting firms retained by
15     the Agency shall, as appropriate, prepare procurement
16     plans, and conduct a competitive procurement process as
17     prescribed in Section 16-111.5 of the Public Utilities Act,
18     to ensure adequate, reliable, affordable, efficient, and
19     environmentally sustainable electric service at the lowest
20     total cost over time, taking into account any benefits of
21     price stability, for eligible retail customers of electric
22     utilities that on December 31, 2005 provided electric
23     service to at least 100,000 customers in the State of
24     Illinois.
25         (c) Renewable portfolio standard.
26             (1) The procurement plans shall include

 

 

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1         cost-effective renewable energy resources. A minimum
2         percentage of each utility's total supply to serve the
3         load of eligible retail customers, as defined in
4         Section 16-111.5(a) of the Public Utilities Act,
5         procured for each of the following years shall be
6         generated from cost-effective renewable energy
7         resources: at least 2% by June 1, 2008; at least 4% by
8         June 1, 2009; at least 5% by June 1, 2010; at least 6%
9         by June 1, 2011; at least 7% by June 1, 2012; at least
10         8% by June 1, 2013; at least 9% by June 1, 2014; at
11         least 10% by June 1, 2015; and increasing by at least
12         1.5% each year thereafter to at least 25% by June 1,
13         2025. To the extent that it is available, at least 75%
14         of the renewable energy resources used to meet these
15         standards shall come from wind generation and,
16         beginning on June 1, 2011 2015, at least the following
17         percentages 6% of the renewable energy resources used
18         to meet these standards shall come from photovoltaics
19         on the following schedule: 0.5% by June 1, 2012, 1.5%
20         by June 1, 2013; 3% by June 1, 2014; and 6% by June 1,
21         2015 and thereafter. For purposes of this subsection
22         (c), "cost-effective" means that the costs of
23         procuring renewable energy resources do not cause the
24         limit stated in paragraph (2) of this subsection (c) to
25         be exceeded and do not exceed benchmarks based on
26         market prices for renewable energy resources in the

 

 

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1         region, which shall be developed by the procurement
2         administrator, in consultation with the Commission
3         staff, Agency staff, and the procurement monitor and
4         shall be subject to Commission review and approval.
5             (2) For purposes of this subsection (c), the
6         required procurement of cost-effective renewable
7         energy resources for a particular year shall be
8         measured as a percentage of the actual amount of
9         electricity (megawatt-hours) supplied by the electric
10         utility to eligible retail customers in the planning
11         year ending immediately prior to the procurement. For
12         purposes of this subsection (c), the amount paid per
13         kilowatthour means the total amount paid for electric
14         service expressed on a per kilowatthour basis. For
15         purposes of this subsection (c), the total amount paid
16         for electric service includes without limitation
17         amounts paid for supply, transmission, distribution,
18         surcharges, and add-on taxes.
19             Notwithstanding the requirements of this
20         subsection (c), the total of renewable energy
21         resources procured pursuant to the procurement plan
22         for any single year shall be reduced by an amount
23         necessary to limit the annual estimated average net
24         increase due to the costs of these resources included
25         in the amounts paid by eligible retail customers in
26         connection with electric service to:

 

 

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1                 (A) in 2008, no more than 0.5% of the amount
2             paid per kilowatthour by those customers during
3             the year ending May 31, 2007;
4                 (B) in 2009, the greater of an additional 0.5%
5             of the amount paid per kilowatthour by those
6             customers during the year ending May 31, 2008 or 1%
7             of the amount paid per kilowatthour by those
8             customers during the year ending May 31, 2007;
9                 (C) in 2010, the greater of an additional 0.5%
10             of the amount paid per kilowatthour by those
11             customers during the year ending May 31, 2009 or
12             1.5% of the amount paid per kilowatthour by those
13             customers during the year ending May 31, 2007;
14                 (D) in 2011, the greater of an additional 0.5%
15             of the amount paid per kilowatthour by those
16             customers during the year ending May 31, 2010 or 2%
17             of the amount paid per kilowatthour by those
18             customers during the year ending May 31, 2007; and
19                 (E) thereafter, the amount of renewable energy
20             resources procured pursuant to the procurement
21             plan for any single year shall be reduced by an
22             amount necessary to limit the estimated average
23             net increase due to the cost of these resources
24             included in the amounts paid by eligible retail
25             customers in connection with electric service to
26             no more than the greater of 2.015% of the amount

 

 

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1             paid per kilowatthour by those customers during
2             the year ending May 31, 2007 or the incremental
3             amount per kilowatthour paid for these resources
4             in 2011.
5             No later than June 30, 2011, the Commission shall
6         review the limitation on the amount of renewable energy
7         resources procured pursuant to this subsection (c) and
8         report to the General Assembly its findings as to
9         whether that limitation unduly constrains the
10         procurement of cost-effective renewable energy
11         resources.
12             (3) Through June 1, 2011, renewable energy
13         resources shall be counted for the purpose of meeting
14         the renewable energy standards set forth in paragraph
15         (1) of this subsection (c) only if they are generated
16         from facilities located in the State, provided that
17         cost-effective renewable energy resources are
18         available from those facilities. If those
19         cost-effective resources are not available in
20         Illinois, they shall be procured in states that adjoin
21         Illinois and may be counted towards compliance. If
22         those cost-effective resources are not available in
23         Illinois or in states that adjoin Illinois, they shall
24         be purchased elsewhere and shall be counted towards
25         compliance. After June 1, 2011, cost-effective
26         renewable energy resources located in Illinois and in

 

 

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1         states that adjoin Illinois may be counted towards
2         compliance with the standards set forth in paragraph
3         (1) of this subsection (c). If those cost-effective
4         resources are not available in Illinois or in states
5         that adjoin Illinois, they shall be purchased
6         elsewhere and shall be counted towards compliance.
7             (4) The electric utility shall retire all
8         renewable energy credits used to comply with the
9         standard.
10             (5) Beginning with the year commencing June 1,
11         2010, an electric utility subject to this subsection
12         (c) shall apply the lesser of the maximum alternative
13         compliance payment rate or the most recent estimated
14         alternative compliance payment rate for its service
15         territory for the corresponding compliance period,
16         established pursuant to subsection (d) of Section
17         16-115D of the Public Utilities Act to its retail
18         customers that take service pursuant to the electric
19         utility's hourly pricing tariff or tariffs. The
20         electric utility shall retain all amounts collected as
21         a result of the application of the alternative
22         compliance payment rate or rates to such customers,
23         and, beginning in 2011, the utility shall include in
24         the information provided under item (1) of subsection
25         (d) of Section 16-111.5 of the Public Utilities Act the
26         amounts collected under the alternative compliance

 

 

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1         payment rate or rates for the prior year ending May 31.
2         Notwithstanding any limitation on the procurement of
3         renewable energy resources imposed by item (2) of this
4         subsection (c), the Agency shall increase its spending
5         on the purchase of renewable energy resources to be
6         procured by the electric utility for the next plan year
7         by an amount equal to the amounts collected by the
8         utility under the alternative compliance payment rate
9         or rates in the prior year ending May 31.
10     (d) Clean coal portfolio standard.
11         (1) The procurement plans shall include electricity
12     generated using clean coal. Each utility shall enter into
13     one or more sourcing agreements with the initial clean coal
14     facility, as provided in paragraph (3) of this subsection
15     (d), covering electricity generated by the initial clean
16     coal facility representing at least 5% of each utility's
17     total supply to serve the load of eligible retail customers
18     in 2015 and each year thereafter, as described in paragraph
19     (3) of this subsection (d), subject to the limits specified
20     in paragraph (2) of this subsection (d). It is the goal of
21     the State that by January 1, 2025, 25% of the electricity
22     used in the State shall be generated by cost-effective
23     clean coal facilities. For purposes of this subsection (d),
24     "cost-effective" means that the expenditures pursuant to
25     such sourcing agreements do not cause the limit stated in
26     paragraph (2) of this subsection (d) to be exceeded and do

 

 

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

 

 

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

 

 

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1             customers during the year ending May 31, 2009;
2                 (C) in 2012, the greater of an additional 0.5%
3             of the amount paid per kilowatthour by those
4             customers during the year ending May 31, 2011 or
5             1.5% of the amount paid per kilowatthour by those
6             customers during the year ending May 31, 2009;
7                 (D) in 2013, the greater of an additional 0.5%
8             of the amount paid per kilowatthour by those
9             customers during the year ending May 31, 2012 or 2%
10             of the amount paid per kilowatthour by those
11             customers during the year ending May 31, 2009; and
12                 (E) thereafter, the total amount paid under
13             sourcing agreements with clean coal facilities
14             pursuant to the procurement plan for any single
15             year shall be reduced by an amount necessary to
16             limit the estimated average net increase due to the
17             cost of these resources included in the amounts
18             paid by eligible retail customers in connection
19             with electric service to no more than the greater
20             of (i) 2.015% of the amount paid per kilowatthour
21             by those customers during the year ending May 31,
22             2009 or (ii) the incremental amount per
23             kilowatthour paid for these resources in 2013.
24             These requirements may be altered only as provided
25             by statute. No later than June 30, 2015, the
26             Commission shall review the limitation on the

 

 

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1             total amount paid under sourcing agreements, if
2             any, with clean coal facilities pursuant to this
3             subsection (d) and report to the General Assembly
4             its findings as to whether that limitation unduly
5             constrains the amount of electricity generated by
6             cost-effective clean coal facilities that is
7             covered by sourcing agreements.
8         (3) Initial clean coal facility. In order to promote
9     development of clean coal facilities in Illinois, each
10     electric utility subject to this Section shall execute a
11     sourcing agreement to source electricity from a proposed
12     clean coal facility in Illinois (the "initial clean coal
13     facility") that will have a nameplate capacity of at least
14     500 MW when commercial operation commences, that has a
15     final Clean Air Act permit on the effective date of this
16     amendatory Act of the 95th General Assembly, and that will
17     meet the definition of clean coal facility in Section 1-10
18     of this Act when commercial operation commences. The
19     sourcing agreements with this initial clean coal facility
20     shall be subject to both approval of the initial clean coal
21     facility by the General Assembly and satisfaction of the
22     requirements of paragraph (4) of this subsection (d) and
23     shall be executed within 90 days after any such approval by
24     the General Assembly. The Agency and the Commission shall
25     have authority to inspect all books and records associated
26     with the initial clean coal facility during the term of

 

 

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

 

 

09600HB6202sam003 - 20 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 21 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 22 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 23 - LRB096 18131 JDS 41397 a

1             clause (i); and
2                 (iii) not require the utility to take physical
3             delivery of the electricity produced by the
4             facility;
5             (D) general provisions, which shall:
6                 (i) specify a term of no more than 30 years,
7             commencing on the commercial operation date of the
8             facility;
9                 (ii) provide that utilities shall maintain
10             adequate records documenting purchases under the
11             sourcing agreements entered into to comply with
12             this subsection (d) and shall file an accounting
13             with the load forecast that must be filed with the
14             Agency by July 15 of each year, in accordance with
15             subsection (d) of Section 16-111.5 of the Public
16             Utilities Act.
17                 (iii) provide that all costs associated with
18             the initial clean coal facility will be
19             periodically reported to the Federal Energy
20             Regulatory Commission and to purchasers in
21             accordance with applicable laws governing
22             cost-based wholesale power contracts;
23                 (iv) permit the Illinois Power Agency to
24             assume ownership of the initial clean coal
25             facility, without monetary consideration and
26             otherwise on reasonable terms acceptable to the

 

 

09600HB6202sam003 - 24 - LRB096 18131 JDS 41397 a

1             Agency, if the Agency so requests no less than 3
2             years prior to the end of the stated contract term;
3                 (v) require the owner of the initial clean coal
4             facility to provide documentation to the
5             Commission each year, starting in the facility's
6             first year of commercial operation, accurately
7             reporting the quantity of carbon emissions from
8             the facility that have been captured and
9             sequestered and report any quantities of carbon
10             released from the site or sites at which carbon
11             emissions were sequestered in prior years, based
12             on continuous monitoring of such sites. If, in any
13             year after the first year of commercial operation,
14             the owner of the facility fails to demonstrate that
15             the initial clean coal facility captured and
16             sequestered at least 50% of the total carbon
17             emissions that the facility would otherwise emit
18             or that sequestration of emissions from prior
19             years has failed, resulting in the release of
20             carbon dioxide into the atmosphere, the owner of
21             the facility must offset excess emissions. Any
22             such carbon offsets must be permanent, additional,
23             verifiable, real, located within the State of
24             Illinois, and legally and practicably enforceable.
25             The cost of such offsets for the facility that are
26             not recoverable shall not exceed $15 million in any

 

 

09600HB6202sam003 - 25 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 26 - LRB096 18131 JDS 41397 a

1             requirements set forth in this item (v);
2                 (vi) include limits on, and accordingly
3             provide for modification of, the amount the
4             utility is required to source under the sourcing
5             agreement consistent with paragraph (2) of this
6             subsection (d);
7                 (vii) require Commission review: (1) to
8             determine the justness, reasonableness, and
9             prudence of the inputs to the formula referenced in
10             subparagraphs (A)(i) through (A)(iii) of paragraph
11             (3) of this subsection (d), prior to an adjustment
12             in those inputs including, without limitation, the
13             capital structure and return on equity, fuel
14             costs, and other operations and maintenance costs
15             and (2) to approve the costs to be passed through
16             to customers under the sourcing agreement by which
17             the utility satisfies its statutory obligations.
18             Commission review shall occur no less than every 3
19             years, regardless of whether any adjustments have
20             been proposed, and shall be completed within 9
21             months;
22                 (viii) limit the utility's obligation to such
23             amount as the utility is allowed to recover through
24             tariffs filed with the Commission, provided that
25             neither the clean coal facility nor the utility
26             waives any right to assert federal pre-emption or

 

 

09600HB6202sam003 - 27 - LRB096 18131 JDS 41397 a

1             any other argument in response to a purported
2             disallowance of recovery costs;
3                 (ix) limit the utility's or alternative retail
4             electric supplier's obligation to incur any
5             liability until such time as the facility is in
6             commercial operation and generating power and
7             energy and such power and energy is being delivered
8             to the facility busbar;
9                 (x) provide that the owner or owners of the
10             initial clean coal facility, which is the
11             counterparty to such sourcing agreement, shall
12             have the right from time to time to elect whether
13             the obligations of the utility party thereto shall
14             be governed by the power purchase provisions or the
15             contract for differences provisions;
16                 (xi) append documentation showing that the
17             formula rate and contract, insofar as they relate
18             to the power purchase provisions, have been
19             approved by the Federal Energy Regulatory
20             Commission pursuant to Section 205 of the Federal
21             Power Act;
22                 (xii) provide that any changes to the terms of
23             the contract, insofar as such changes relate to the
24             power purchase provisions, are subject to review
25             under the public interest standard applied by the
26             Federal Energy Regulatory Commission pursuant to

 

 

09600HB6202sam003 - 28 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 29 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 30 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 31 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 32 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 33 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 34 - LRB096 18131 JDS 41397 a

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

 

 

09600HB6202sam003 - 35 - LRB096 18131 JDS 41397 a

1     amount and the electric utility shall be entitled to full
2     cost recovery pursuant to the tariffs filed with the
3     Commission.
4         (e) The draft procurement plans are subject to public
5     comment, as required by Section 16-111.5 of the Public
6     Utilities Act.
7         (f) The Agency shall submit the final procurement plan
8     to the Commission. The Agency shall revise a procurement
9     plan if the Commission determines that it does not meet the
10     standards set forth in Section 16-111.5 of the Public
11     Utilities Act.
12         (g) The Agency shall assess fees to each affected
13     utility to recover the costs incurred in preparation of the
14     annual procurement plan for the utility.
15         (h) The Agency shall assess fees to each bidder to
16     recover the costs incurred in connection with a competitive
17     procurement process.
18 (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09;
19 96-159, eff. 8-10-09.)
 
20     Section 10. The Public Utilities Act is amended by changing
21 Section 16-115D as follows:
 
22     (220 ILCS 5/16-115D)
23     Sec. 16-115D. Renewable portfolio standard for alternative
24 retail electric suppliers and electric utilities operating

 

 

09600HB6202sam003 - 36 - LRB096 18131 JDS 41397 a

1 outside their service territories.
2     (a) An alternative retail electric supplier shall be
3 responsible for procuring cost-effective renewable energy
4 resources as required under item (5) of subsection (d) of
5 Section 16-115 of this Act as outlined herein:
6         (1) The definition of renewable energy resources
7     contained in Section 1-10 of the Illinois Power Agency Act
8     applies to all renewable energy resources required to be
9     procured by alternative retail electric suppliers.
10         (2) The quantity of renewable energy resources shall be
11     measured as a percentage of the actual amount of metered
12     electricity (megawatt-hours) delivered by the alternative
13     retail electric supplier to Illinois retail customers
14     during the 12-month period June 1 through May 31,
15     commencing June 1, 2009, and the comparable 12-month period
16     in each year thereafter except as provided in item (6) of
17     this subsection (a).
18         (3) The quantity of renewable energy resources shall be
19     in amounts at least equal to the annual percentages set
20     forth in item (1) of subsection (c) of Section 1-75 of the
21     Illinois Power Agency Act. At least 60% of the renewable
22     energy resources procured pursuant to items (1) through (3)
23     of subsection (b) of this Section shall come from wind
24     generation and, starting June 1, 2015, at least 6% of the
25     renewable energy resources procured pursuant to items (1)
26     through (3) of subsection (b) of this Section shall come

 

 

09600HB6202sam003 - 37 - LRB096 18131 JDS 41397 a

1     from solar photovoltaics. If, in any given year, an
2     alternative retail electric supplier does not purchase at
3     least these levels of renewable energy resources, then the
4     alternative retail electric supplier shall make
5     alternative compliance payments, as described in
6     subsection (d) of this Section.
7         (4) The quantity and source of renewable energy
8     resources shall be independently verified through the PJM
9     Environmental Information System Generation Attribute
10     Tracking System (PJM-GATS) or the Midwest Renewable Energy
11     Tracking System (M-RETS), which shall document the
12     location of generation, resource type, month, and year of
13     generation for all qualifying renewable energy resources
14     that an alternative retail electric supplier uses to comply
15     with this Section. No later than June 1, 2009, the Illinois
16     Power Agency shall provide PJM-GATS, M-RETS, and
17     alternative retail electric suppliers with all information
18     necessary to identify resources located in Illinois,
19     within states that adjoin Illinois or within portions of
20     the PJM and MISO footprint in the United States that
21     qualify under the definition of renewable energy resources
22     in Section 1-10 of the Illinois Power Agency Act for
23     compliance with this Section 16-115D. Alternative retail
24     electric suppliers shall not be subject to the requirements
25     in item (3) of subsection (c) of Section 1-75 of the
26     Illinois Power Agency Act.

 

 

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1         (5) All renewable energy credits used to comply with
2     this Section shall be permanently retired.
3         (6) The required procurement of renewable energy
4     resources by an alternative retail electric supplier shall
5     apply to all metered electricity delivered to Illinois
6     retail customers by the alternative retail electric
7     supplier pursuant to contracts executed or extended after
8     March 15, 2009.
9     (b) An alternative retail electric supplier shall comply
10 with the renewable energy portfolio standards by making an
11 alternative compliance payment, as described in subsection (d)
12 of this Section, to cover at least one-half of the alternative
13 retail electric supplier's compliance obligation and any one or
14 combination of the following means to cover the remainder of
15 the alternative retail electric supplier's compliance
16 obligation:
17         (1) Generating electricity using renewable energy
18     resources identified pursuant to item (4) of subsection (a)
19     of this Section.
20         (2) Purchasing electricity generated using renewable
21     energy resources identified pursuant to item (4) of
22     subsection (a) of this Section through an energy contract.
23         (3) Purchasing renewable energy credits from renewable
24     energy resources identified pursuant to item (4) of
25     subsection (a) of this Section.
26         (4) Making an alternative compliance payment as

 

 

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1     described in subsection (d) of this Section.
2     (c) Use of renewable energy credits.
3         (1) Renewable energy credits that are not used by an
4     alternative retail electric supplier to comply with a
5     renewable portfolio standard in a compliance year may be
6     banked and carried forward up to 2 12-month compliance
7     periods after the compliance period in which the credit was
8     generated for the purpose of complying with a renewable
9     portfolio standard in those 2 subsequent compliance
10     periods. For the 2009-2010 and 2010-2011 compliance
11     periods, an alternative retail electric supplier may use
12     renewable credits generated after December 31, 2008 and
13     before June 1, 2009 to comply with this Section.
14         (2) An alternative retail electric supplier is
15     responsible for demonstrating that a renewable energy
16     credit used to comply with a renewable portfolio standard
17     is derived from a renewable energy resource and that the
18     alternative retail electric supplier has not used, traded,
19     sold, or otherwise transferred the credit.
20         (3) The same renewable energy credit may be used by an
21     alternative retail electric supplier to comply with a
22     federal renewable portfolio standard and a renewable
23     portfolio standard established under this Act. An
24     alternative retail electric supplier that uses a renewable
25     energy credit to comply with a renewable portfolio standard
26     imposed by any other state may not use the same credit to

 

 

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1     comply with a renewable portfolio standard established
2     under this Act.
3     (d) Alternative compliance payments.
4         (1) The Commission shall establish and post on its
5     website, within 5 business days after entering an order
6     approving a procurement plan pursuant to Section 1-75 of
7     the Illinois Power Agency Act, maximum alternative
8     compliance payment rates, expressed on a per kilowatt-hour
9     basis, that will be applicable in the first compliance
10     period following the plan approval. A separate maximum
11     alternative compliance payment rate shall be established
12     for the service territory of each electric utility that is
13     subject to subsection (c) of Section 1-75 of the Illinois
14     Power Agency Act. Each maximum alternative compliance
15     payment rate shall be equal to the maximum allowable annual
16     estimated average net increase due to the costs of the
17     utility's purchase of renewable energy resources included
18     in the amounts paid by eligible retail customers in
19     connection with electric service, as described in item (2)
20     of subsection (c) of Section 1-75 of the Illinois Power
21     Agency Act for the compliance period, and as established in
22     the approved procurement plan. Following each procurement
23     event through which renewable energy resources are
24     purchased for one or more of these utilities for the
25     compliance period, the Commission shall establish and post
26     on its website estimates of the alternative compliance

 

 

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1     payment rates, expressed on a per kilowatt-hour basis, that
2     shall apply for that compliance period. Posting of the
3     estimates shall occur no later than 10 business days
4     following the procurement event, however, the Commission
5     shall not be required to establish and post such estimates
6     more often than once per calendar month. By July 1 of each
7     year, the Commission shall establish and post on its
8     website the actual alternative compliance payment rates
9     for the preceding compliance year. For compliance years
10     beginning prior to June 1, 2014, each Each alternative
11     compliance payment rate shall be equal to the total amount
12     of dollars that for which the utility contracted to spend
13     on renewable resources, excepting the additional
14     incremental cost attributable to solar resources, for the
15     compliance period divided by the forecasted load of
16     eligible retail customers, at the customers' meters, as
17     previously established in the Commission-approved
18     procurement plan for that compliance year. For compliance
19     years commencing on or after June 1, 2014, each alternative
20     compliance payment rate shall be equal to the total amount
21     of dollars that the utility contracted to spend on all
22     renewable resources for the compliance period divided by
23     the forecasted load of eligible retail customers, at the
24     customers' meters, as previously established in the
25     Commission-approved procurement plan for that compliance
26     year. The actual alternative compliance payment rates may

 

 

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1     not exceed the maximum alternative compliance payment
2     rates established for the compliance period. For purposes
3     of this subsection (d), the term "eligible retail
4     customers" has the same meaning as found in Section
5     16-111.5 of this Act.
6         (2) In any given compliance year, an alternative retail
7     electric supplier may elect to use alternative compliance
8     payments to comply with all or a part of the applicable
9     renewable portfolio standard. In the event that an
10     alternative retail electric supplier elects to make
11     alternative compliance payments to comply with all or a
12     part of the applicable renewable portfolio standard, such
13     payments shall be made by September 1, 2010 for the period
14     of June 1, 2009 to May 1, 2010 and by September 1 of each
15     year thereafter for the subsequent compliance period, in
16     the manner and form as determined by the Commission. Any
17     election by an alternative retail electric supplier to use
18     alternative compliance payments is subject to review by the
19     Commission under subsection (e) of this Section.
20         (3) An alternative retail electric supplier's
21     alternative compliance payments shall be computed
22     separately for each electric utility's service territory
23     within which the alternative retail electric supplier
24     provided retail service during the compliance period,
25     provided that the electric utility was subject to
26     subsection (c) of Section 1-75 of the Illinois Power Agency

 

 

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1     Act. For each service territory, the alternative retail
2     electric supplier's alternative compliance payment shall
3     be equal to (i) the actual alternative compliance payment
4     rate established in item (1) of this subsection (d),
5     multiplied by (ii) the actual amount of metered electricity
6     delivered by the alternative retail electric supplier to
7     retail customers within the service territory during the
8     compliance period, multiplied by (iii) the result of one
9     minus the ratios of the quantity of renewable energy
10     resources used by the alternative retail electric supplier
11     to comply with the requirements of this Section within the
12     service territory to the product of the percentage of
13     renewable energy resources required under item (3) of
14     subsection (a) of this Section and the actual amount of
15     metered electricity delivered by the alternative retail
16     electric supplier to retail customers within the service
17     territory during the compliance period.
18         (4) All alternative compliance payments by alternative
19     retail electric suppliers shall be deposited in the
20     Illinois Power Agency Renewable Energy Resources Fund and
21     used to purchase renewable energy credits, in accordance
22     with Section 1-56 of the Illinois Power Agency Act.
23         (5) The Commission, in consultation with the Illinois
24     Power Agency, shall establish a process or proceeding to
25     consider the impact of a federal renewable portfolio
26     standard, if enacted, on the operation of the alternative

 

 

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1     compliance mechanism, which shall include, but not be
2     limited to, developing, to the extent permitted by the
3     applicable federal statute, an appropriate methodology to
4     apportion renewable energy credits retired as a result of
5     alternative compliance payments made in accordance with
6     this Section. The Commission shall commence any such
7     process or proceeding within 35 days after enactment of a
8     federal renewable portfolio standard.
9     (e) Each alternative retail electric supplier shall, by
10 September 1, 2010 and by September 1 of each year thereafter,
11 prepare and submit to the Commission a report, in a format to
12 be specified by the Commission on or before December 31, 2009,
13 that provides information certifying compliance by the
14 alternative retail electric supplier with this Section,
15 including copies of all PJM-GATS and M-RETS reports, and
16 documentation relating to banking, retiring renewable energy
17 credits, and any other information that the Commission
18 determines necessary to ensure compliance with this Section. An
19 alternative retail electric supplier may file commercially or
20 financially sensitive information or trade secrets with the
21 Commission as provided under the rules of the Commission. To be
22 filed confidentially, the information shall be accompanied by
23 an affidavit that sets forth both the reasons for the
24 confidentiality and a public synopsis of the information.
25     (f) The Commission may initiate a contested case to review
26 allegations that the alternative retail electric supplier has

 

 

09600HB6202sam003 - 45 - LRB096 18131 JDS 41397 a

1 violated this Section, including an order issued or rule
2 promulgated under this Section. In any such proceeding, the
3 alternative retail electric supplier shall have the burden of
4 proof. If the Commission finds, after notice and hearing, that
5 an alternative retail electric supplier has violated this
6 Section, then the Commission shall issue an order requiring the
7 alternative retail electric supplier to:
8         (1) immediately comply with this Section; and
9         (2) if the violation involves a failure to procure the
10     requisite quantity of renewable energy resources or pay the
11     applicable alternative compliance payment by the annual
12     deadline, the Commission shall require the alternative
13     retail electric supplier to double the applicable
14     alternative compliance payment that would otherwise be
15     required to bring the alternative retail electric supplier
16     into compliance with this Section.
17     If an alternative retail electric supplier fails to comply
18 with the renewable energy resource portfolio requirement in
19 this Section more than once in a 5-year period, then the
20 Commission shall revoke the alternative electric supplier's
21 certificate of service authority. The Commission shall not
22 accept an application for a certificate of service authority
23 from an alternative retail electric supplier that has lost
24 certification under this subsection (f), or any corporate
25 affiliate thereof, for at least one year after the date of
26 revocation.

 

 

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1     (g) All of the provisions of this Section apply to electric
2 utilities operating outside their service area except under
3 item (2) of subsection (a) of this Section the quantity of
4 renewable energy resources shall be measured as a percentage of
5 the actual amount of electricity (megawatt-hours) supplied in
6 the State outside of the utility's service territory during the
7 12-month period June 1 through May 31, commencing June 1, 2009,
8 and the comparable 12-month period in each year thereafter
9 except as provided in item (6) of subsection (a) of this
10 Section.
11     If any such utility fails to procure the requisite quantity
12 of renewable energy resources by the annual deadline, then the
13 Commission shall require the utility to double the alternative
14 compliance payment that would otherwise be required to bring
15 the utility into compliance with this Section.
16     If any such utility fails to comply with the renewable
17 energy resource portfolio requirement in this Section more than
18 once in a 5-year period, then the Commission shall order the
19 utility to cease all sales outside of the utility's service
20 territory for a period of at least one year.
21     (h) The provisions of this Section and the provisions of
22 subsection (d) of Section 16-115 of this Act relating to
23 procurement of renewable energy resources shall not apply to an
24 alternative retail electric supplier that operates a combined
25 heat and power system in this State or that has a corporate
26 affiliate that operates such a combined heat and power system

 

 

09600HB6202sam003 - 47 - LRB096 18131 JDS 41397 a

1 in this State that supplies electricity primarily to or for the
2 benefit of: (i) facilities owned by the supplier, its
3 subsidiary, or other corporate affiliate; (ii) facilities
4 electrically integrated with the electrical system of
5 facilities owned by the supplier, its subsidiary, or other
6 corporate affiliate; or (iii) facilities that are adjacent to
7 the site on which the combined heat and power system is
8 located.
9 (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09.)
 
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.".