SB1446 EngrossedLRB099 10192 AMC 30416 b

1    AN ACT concerning utilities.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Sections 16-115 and 19-110 as follows:
 
6    (220 ILCS 5/16-115)
7    Sec. 16-115. Certification of alternative retail electric
8suppliers.
9    (a) Any alternative retail electric supplier must obtain a
10certificate of service authority from the Commission in
11accordance with this Section before serving any retail customer
12or other user located in this State. An alternative retail
13electric supplier may request, and the Commission may grant, a
14certificate of service authority for the entire State or for a
15specified geographic area of the State.
16    (b) An alternative retail electric supplier seeking a
17certificate of service authority shall file with the Commission
18a verified application containing information showing that the
19applicant meets the requirements of this Section. The
20alternative retail electric supplier shall publish notice of
21its application in the official State newspaper within 10 days
22following the date of its filing. No later than 45 days after
23the application is properly filed with the Commission, and such

 

 

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1notice is published, the Commission shall issue its order
2granting or denying the application.
3    (c) An application for a certificate of service authority
4shall identify the area or areas in which the applicant intends
5to offer service and the types of services it intends to offer.
6Applicants that seek to serve residential or small commercial
7retail customers within a geographic area that is smaller than
8an electric utility's service area shall submit evidence
9demonstrating that the designation of this smaller area does
10not violate Section 16-115A. An applicant that seeks to serve
11residential or small commercial retail customers may state in
12its application for certification any limitations that will be
13imposed on the number of customers or maximum load to be
14served.
15    (d) The Commission shall grant the application for a
16certificate of service authority if it makes the findings set
17forth in this subsection based on the verified application and
18such other information as the applicant may submit:
19        (1) That the applicant possesses sufficient technical,
20    financial and managerial resources and abilities to
21    provide the service for which it seeks a certificate of
22    service authority. In determining the level of technical,
23    financial and managerial resources and abilities which the
24    applicant must demonstrate, the Commission shall consider
25    (i) the characteristics, including the size and financial
26    sophistication, of the customers that the applicant seeks

 

 

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1    to serve, and (ii) whether the applicant seeks to provide
2    electric power and energy using property, plant and
3    equipment which it owns, controls or operates;
4        (2) That the applicant will comply with all applicable
5    federal, State, regional and industry rules, policies,
6    practices and procedures for the use, operation, and
7    maintenance of the safety, integrity and reliability, of
8    the interconnected electric transmission system;
9        (3) That the applicant will only provide service to
10    retail customers in an electric utility's service area that
11    are eligible to take delivery services under this Act;
12        (4) That the applicant will comply with such
13    informational or reporting requirements as the Commission
14    may by rule establish and provide the information required
15    by Section 16-112. Any data related to contracts for the
16    purchase and sale of electric power and energy shall be
17    made available for review by the Staff of the Commission on
18    a confidential and proprietary basis and only to the extent
19    and for the purposes which the Commission determines are
20    reasonably necessary in order to carry out the purposes of
21    this Act;
22        (5) That the applicant will procure renewable energy
23    resources in accordance with Section 16-115D of this Act,
24    and will source electricity from clean coal facilities, as
25    defined in Section 1-10 of the Illinois Power Agency Act,
26    in amounts at least equal to the percentages set forth in

 

 

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1    subsections (c) and (d) of Section 1-75 of the Illinois
2    Power Agency Act. For purposes of this Section:
3            (i) (Blank);
4            (ii) (Blank);
5            (iii) the required sourcing of electricity
6        generated by clean coal facilities, other than the
7        initial clean coal facility, shall be limited to the
8        amount of electricity that can be procured or sourced
9        at a price at or below the benchmarks approved by the
10        Commission each year in accordance with item (1) of
11        subsection (c) and items (1) and (5) of subsection (d)
12        of Section 1-75 of the Illinois Power Agency Act;
13            (iv) all alternative retail electric suppliers
14        shall execute a sourcing agreement to source
15        electricity from the initial clean coal facility, on
16        the terms set forth in paragraphs (3) and (4) of
17        subsection (d) of Section 1-75 of the Illinois Power
18        Agency Act, except that in lieu of the requirements in
19        subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
20        paragraph (3) of that subsection (d), the applicant
21        shall execute one or more of the following:
22                (1) if the sourcing agreement is a power
23            purchase agreement, a contract with the initial
24            clean coal facility to purchase in each hour an
25            amount of electricity equal to all clean coal
26            energy made available from the initial clean coal

 

 

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1            facility during such hour, which the utilities are
2            not required to procure under the terms of
3            subsection (d) of Section 1-75 of the Illinois
4            Power Agency Act, multiplied by a fraction, the
5            numerator of which is the alternative retail
6            electric supplier's retail market sales of
7            electricity (expressed in kilowatthours sold) in
8            the State during the prior calendar month and the
9            denominator of which is the total sales of
10            electricity (expressed in kilowatthours sold) in
11            the State by alternative retail electric suppliers
12            during such prior month that are subject to the
13            requirements of this paragraph (5) of subsection
14            (d) of this Section and subsection (d) of Section
15            1-75 of the Illinois Power Agency Act plus the
16            total sales of electricity (expressed in
17            kilowatthours sold) by utilities outside of their
18            service areas during such prior month, pursuant to
19            subsection (c) of Section 16-116 of this Act; or
20                (2) if the sourcing agreement is a contract for
21            differences, a contract with the initial clean
22            coal facility in each hour with respect to an
23            amount of electricity equal to all clean coal
24            energy made available from the initial clean coal
25            facility during such hour, which the utilities are
26            not required to procure under the terms of

 

 

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1            subsection (d) of Section 1-75 of the Illinois
2            Power Agency Act, multiplied by a fraction, the
3            numerator of which is the alternative retail
4            electric supplier's retail market sales of
5            electricity (expressed in kilowatthours sold) in
6            the State during the prior calendar month and the
7            denominator of which is the total sales of
8            electricity (expressed in kilowatthours sold) in
9            the State by alternative retail electric suppliers
10            during such prior month that are subject to the
11            requirements of this paragraph (5) of subsection
12            (d) of this Section and subsection (d) of Section
13            1-75 of the Illinois Power Agency Act plus the
14            total sales of electricity (expressed in
15            kilowatthours sold) by utilities outside of their
16            service areas during such prior month, pursuant to
17            subsection (c) of Section 16-116 of this Act;
18            (v) if, in any year after the first year of
19        commercial operation, the owner of the clean coal
20        facility fails to demonstrate to the Commission that
21        the initial clean coal facility captured and
22        sequestered at least 50% of the total carbon emissions
23        that the facility would otherwise emit or that
24        sequestration of emissions from prior years has
25        failed, resulting in the release of carbon into the
26        atmosphere, the owner of the facility must offset

 

 

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

 

 

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1        hearing, revoke the certification of any alternative
2        retail electric supplier that fails to execute a
3        sourcing agreement with the initial clean coal
4        facility as required by item (5) of subsection (d) of
5        this Section. The sourcing agreements with this
6        initial clean coal facility shall be subject to both
7        approval of the initial clean coal facility by the
8        General Assembly and satisfaction of the requirements
9        of item (4) of subsection (d) of Section 1-75 of the
10        Illinois Power Agency Act, and shall be executed within
11        90 days after any such approval by the General
12        Assembly. The Commission shall not accept an
13        application for certification from an alternative
14        retail electric supplier that has lost certification
15        under this subsection (d), or any corporate affiliate
16        thereof, for at least one year from the date of
17        revocation;
18        (6) With respect to an applicant that seeks to serve
19    residential or small commercial retail customers, that the
20    area to be served by the applicant and any limitations it
21    proposes on the number of customers or maximum amount of
22    load to be served meet the provisions of Section 16-115A,
23    provided, that the Commission can extend the time for
24    considering such a certificate request by up to 90 days,
25    and can schedule hearings on such a request;
26        (7) That the applicant meets the requirements of

 

 

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1    subsection (a) of Section 16-128; and
2        (8) That the applicant will comply with all other
3    applicable laws and regulations.
4    (d-5) (Blank).
5    (e) A retail customer that owns a cogeneration or
6self-generation facility and that seeks certification only to
7provide electric power and energy from such facility to retail
8customers at separate locations which customers are both (i)
9owned by, or a subsidiary or other corporate affiliate of, such
10applicant and (ii) eligible for delivery services, shall be
11granted a certificate of service authority upon filing an
12application and notifying the Commission that it has entered
13into an agreement with the relevant electric utilities pursuant
14to Section 16-118. Provided, however, that if the retail
15customer owning such cogeneration or self-generation facility
16would not be charged a transition charge due to the exemption
17provided under subsection (f) of Section 16-108 prior to the
18certification, and the retail customers at separate locations
19are taking delivery services in conjunction with purchasing
20power and energy from the facility, the retail customer on
21whose premises the facility is located shall not thereafter be
22required to pay transition charges on the power and energy that
23such retail customer takes from the facility.
24    (f) The Commission shall have the authority to promulgate
25rules and regulations to carry out the provisions of this
26Section. On or before May 1, 1999, the Commission shall adopt a

 

 

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1rule or rules applicable to the certification of those
2alternative retail electric suppliers that seek to serve only
3nonresidential retail customers with maximum electrical
4demands of one megawatt or more which shall provide for (i)
5expedited and streamlined procedures for certification of such
6alternative retail electric suppliers and (ii) specific
7criteria which, if met by any such alternative retail electric
8supplier, shall constitute the demonstration of technical,
9financial and managerial resources and abilities to provide
10service required by subsection (d) (1) of this Section, such as
11a requirement to post a bond or letter of credit, from a
12responsible surety or financial institution, of sufficient
13size for the nature and scope of the services to be provided;
14demonstration of adequate insurance for the scope and nature of
15the services to be provided; and experience in providing
16similar services in other jurisdictions.
17    (g) An alternative retail electric supplier may seek
18confidential treatment for the following information by filing
19an affidavit with the Commission so long as the affidavit meets
20the requirements in this subsection (g):
21        (1) the total annual kilowatt-hours delivered and sold
22    by an alternative retail electric supplier to retail
23    customers within each utility service territory and the
24    total annual kilowatt-hours delivered and sold by an
25    alternative retail electric supplier to retail customers
26    in all utility service territories in the preceding

 

 

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1    calendar year as required by 83 Ill. Adm. Code 451.770;
2        (2) the total peak demand supplied by an alternative
3    retail electric supplier during the previous year in each
4    utility service territory as required by 83 Ill. Adm. Code
5    465.40;
6        (3) a good faith estimate of the amount an alternative
7    retail electric supplier expects to be obliged to pay the
8    utility under single billing tariffs during the next 12
9    months and the amount of any bond or letter of credit used
10    to demonstrate an alternative retail electric supplier's
11    credit worthiness to provide single billing services
12    pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
13    The affidavit must be filed contemporaneously with the
14information for which confidential treatment is sought and must
15clearly state that the affiant seeks confidential treatment
16pursuant to this subsection (g) and the information for which
17confidential treatment is sought must be clearly identified on
18the confidential version of the document filed with the
19Commission. The affidavit must be accompanied by a
20"confidential" and a "public" version of the document or
21documents containing the information for which confidential
22treatment is sought.
23    If the alternative retail electric supplier has met the
24affidavit requirements of this subsection (g), then the
25Commission shall afford confidential treatment to the
26information identified in the affidavit for a period of 2 years

 

 

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1after the date the affidavit is received by the Commission.
2    Nothing in this subsection (g) prevents an alternative
3retail electric supplier from filing a petition with the
4Commission seeking confidential treatment for information
5beyond that identified in this subsection (g) or for
6information contained in other reports or documents filed with
7the Commission.
8    Nothing in this subsection (g) prevents the Commission, on
9its own motion, or any party from filing a formal petition with
10the Commission seeking to reconsider the conferring of
11confidential status on an item of information afforded
12confidential treatment pursuant to this subsection (g).
13    The Commission, on its own motion, may at any time initiate
14a docketed proceeding to investigate the continued
15applicability of this subsection (g) to the information
16contained in items (i), (ii), and (iii) of this subsection (g).
17If, at the end of such investigation, the Commission determines
18that a particular item of information should no longer be
19eligible for the affidavit-based process outlined in this
20subsection (g), the Commission may enter an order to remove
21that item from the list of items eligible for the process set
22forth in this subsection (g). Notwithstanding any such order,
23in the event the Commission makes such a determination, nothing
24in this subsection (g) prevents an alternative retail electric
25supplier desiring confidential treatment for such information
26from filing a formal petition with the Commission seeking

 

 

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1confidential treatment for such information.
2(Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09;
396-159, eff. 8-10-09.)
 
4    (220 ILCS 5/19-110)
5    Sec. 19-110. Certification of alternative gas suppliers.
6    (a) The provisions of this Section shall apply only to
7alternative gas suppliers serving or seeking to serve
8residential or small commercial customers and only to the
9extent such alternative gas suppliers provide services to
10residential or small commercial customers.
11    (b) An alternative gas supplier must obtain a certificate
12of service authority from the Commission in accordance with
13this Section before serving any customer or other user located
14in this State. An alternative gas supplier may request, and the
15Commission may grant, a certificate of service authority for
16the entire State or for a specified geographic area of the
17State. A person, corporation, or other entity acting as an
18alternative gas supplier on the effective date of this
19amendatory Act of the 92nd General Assembly shall have 180 days
20from the effective date of this amendatory Act of the 92nd
21General Assembly to comply with the requirements of this
22Section in order to continue to operate as an alternative gas
23supplier.
24    (c) An alternative gas supplier seeking a certificate of
25service authority shall file with the Commission a verified

 

 

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1application containing information showing that the applicant
2meets the requirements of this Section. The alternative gas
3supplier shall publish notice of its application in the
4official State newspaper within 10 days following the date of
5its filing. No later than 45 days after the application is
6properly filed with the Commission, and such notice is
7published, the Commission shall issue its order granting or
8denying the application.
9    (d) An application for a certificate of service authority
10shall identify the area or areas in which the applicant intends
11to offer service and the types of services it intends to offer.
12Applicants that seek to serve residential or small commercial
13customers within a geographic area that is smaller than a gas
14utility's service area shall submit evidence demonstrating
15that the designation of this smaller area does not violate
16Section 19-115. An applicant may state in its application for
17certification any limitations that will be imposed on the
18number of customers or maximum load to be served. The applicant
19shall submit as part of its application a statement indicating:
20        (1) Whether the applicant has been denied a natural gas
21    supplier license in any state in the United States.
22        (2) Whether the applicant has had a natural gas
23    supplier license suspended or revoked by any state in the
24    United States.
25        (3) Where, if any, other natural gas supplier license
26    applications are pending in the United States.

 

 

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1        (4) Whether the applicant is the subject of any
2    lawsuits filed in a court of law or formal complaints filed
3    with a regulatory agency alleging fraud, deception or
4    unfair marketing practices, or other similar allegations,
5    identifying the name, case number, and jurisdiction of each
6    such lawsuit or complaint.
7    For the purposes of this subsection (d), formal complaints
8include only those complaints that seek a binding determination
9from a state or federal regulatory body.
10    (e) The Commission shall grant the application for a
11certificate of service authority if it makes the findings set
12forth in this subsection based on the verified application and
13such other information as the applicant may submit.
14        (1) That the applicant possesses sufficient technical,
15    financial, and managerial resources and abilities to
16    provide the service for which it seeks a certificate of
17    service authority. In determining the level of technical,
18    financial, and managerial resources and abilities which
19    the applicant must demonstrate, the Commission shall
20    consider:
21            (A) the characteristics, including the size and
22        financial sophistication of the customers that the
23        applicant seeks to serve;
24            (B) whether the applicant seeks to provide gas
25        using property, plant, and equipment that it owns,
26        controls, or operates; and

 

 

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1            (C) the applicant's commitment of resources to the
2        management of sales and marketing staff, through
3        affirmative managerial policies, independent audits,
4        technology, hands-on field monitoring and training,
5        and, in the case of applicants who will have sales
6        personnel or sales agents within the State of Illinois,
7        the applicant's managerial presence within the State.
8        (2) That the applicant will comply with all applicable
9    federal, State, regional, and industry rules, policies,
10    practices, and procedures for the use, operation, and
11    maintenance of the safety, integrity, and reliability of
12    the gas transmission system.
13        (3) That the applicant will comply with such
14    informational or reporting requirements as the Commission
15    may by rule establish.
16        (4) That the area to be served by the applicant and any
17    limitations it proposes on the number of customers or
18    maximum amount of load to be served meet the provisions of
19    Section 19-115, provided, that if the applicant seeks to
20    serve an area smaller than the service area of a gas
21    utility or proposes other limitations on the number of
22    customers or maximum amount of load to be served, the
23    Commission can extend the time for considering such a
24    certificate request by up to 90 days, and can schedule
25    hearings on such a request.
26        (5) That the applicant and the applicant's sales agents

 

 

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1    will comply with all other applicable laws and rules.
2    (f) The Commission can extend the time for considering such
3a certificate request by up to 90 days, and can schedule
4hearings on such a request if:
5        (1) a party to the application proceeding has formally
6    requested that the Commission hold hearings in a pleading
7    that alleges that one or more of the allegations or
8    certifications in the application is false or misleading;
9    or
10        (2) other facts or circumstances exist that will
11    necessitate additional time or evidence in order to
12    determine whether a certificate should be issued.
13    (g) The Commission shall have the authority to promulgate
14rules to carry out the provisions of this Section. Within 30
15days after the effective date of this amendatory Act of the
1692nd General Assembly, the Commission shall adopt an emergency
17rule or rules applicable to the certification of those gas
18suppliers that seek to serve residential customers. Within 180
19days of the effective date of this amendatory Act of the 92nd
20General Assembly, the Commission shall adopt rules that specify
21criteria which, if met by any such alternative gas supplier,
22shall constitute the demonstration of technical, financial,
23and managerial resources and abilities to provide service
24required by item (1) of subsection (e) of this Section, such as
25a requirement to post a bond or letter of credit, from a
26responsible surety or financial institution, of sufficient

 

 

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1size for the nature and scope of the services to be provided,
2demonstration of adequate insurance for the scope and nature of
3the services to be provided, and experience in providing
4similar services in other jurisdictions.
5    (h) The Commission may deny with prejudice any application
6that repeatedly fails to include the attachments,
7documentation, and affidavits required by the application form
8or that repeatedly fails to provide any other information
9required by this Section.
10    (i) An alternative gas supplier may seek confidential
11treatment for the reporting to the Commission of its total
12annual dekatherms delivered and sold by it to residential and
13small commercial customers by utility service territory during
14the preceding year via the filing of an affidavit with the
15Commission so long as the affidavit meets the requirements of
16this subsection (i). The affidavit must be filed
17contemporaneously with the information for which confidential
18treatment is sought and must clearly state that the affiant
19seeks confidential treatment pursuant to this subsection (i)
20and the information for which confidential treatment is sought
21must be clearly identified on the confidential version of the
22document filed with the Commission. The affidavit must be
23accompanied by both a "confidential" and a "public" version of
24the document or documents containing the information for which
25confidential treatment is sought.
26    If the alternative gas supplier has met the affidavit

 

 

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1requirements of this subsection (i), then the Commission shall
2afford confidential treatment to the information identified in
3the affidavit for a period of 2 years after the date the
4affidavit is received by the Commission.
5    Nothing in this subsection (i) prevents an alternative gas
6supplier from filing a petition with the Commission seeking
7confidential treatment for information beyond that identified
8in this subsection (i) or for information contained in other
9reports or documents filed with the Commission.
10    Nothing in this subsection (i) prevents the Commission, on
11its own motion, or any party from filing a formal petition with
12the Commission seeking to reconsider the conferring of
13confidential status pursuant to this subsection (i).
14    The Commission, on its own motion, may at any time initiate
15a docketed proceeding to investigate the continued
16applicability of this affidavit-based process for seeking
17confidential treatment. If, at the end of such investigation,
18the Commission determines that this affidavit-based process
19for seeking confidential treatment for the information is no
20longer necessary, the Commission may enter an order to that
21effect. Notwithstanding any such order, in the event the
22Commission makes such a determination, nothing in this
23subsection (i) prevents an alternative gas supplier desiring
24confidential treatment for such information from filing a
25formal petition with the Commission seeking confidential
26treatment for such information.

 

 

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1(Source: P.A. 95-1051, eff. 4-10-09.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.