Sen. Sue Rezin

Filed: 4/17/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1446

2    AMENDMENT NO. ______. Amend Senate Bill 1446, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Public Utilities Act is amended by changing
6Sections 16-115 and 19-110 as follows:
 
7    (220 ILCS 5/16-115)
8    Sec. 16-115. Certification of alternative retail electric
9suppliers.
10    (a) Any alternative retail electric supplier must obtain a
11certificate of service authority from the Commission in
12accordance with this Section before serving any retail customer
13or other user located in this State. An alternative retail
14electric supplier may request, and the Commission may grant, a
15certificate of service authority for the entire State or for a
16specified geographic area of the State.

 

 

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1    (b) An alternative retail electric supplier seeking a
2certificate of service authority shall file with the Commission
3a verified application containing information showing that the
4applicant meets the requirements of this Section. The
5alternative retail electric supplier shall publish notice of
6its application in the official State newspaper within 10 days
7following the date of its filing. No later than 45 days after
8the application is properly filed with the Commission, and such
9notice is published, the Commission shall issue its order
10granting or denying the application.
11    (c) An application for a certificate of service authority
12shall identify the area or areas in which the applicant intends
13to offer service and the types of services it intends to offer.
14Applicants that seek to serve residential or small commercial
15retail customers within a geographic area that is smaller than
16an electric utility's service area shall submit evidence
17demonstrating that the designation of this smaller area does
18not violate Section 16-115A. An applicant that seeks to serve
19residential or small commercial retail customers may state in
20its application for certification any limitations that will be
21imposed on the number of customers or maximum load to be
22served.
23    (d) The Commission shall grant the application for a
24certificate of service authority if it makes the findings set
25forth in this subsection based on the verified application and
26such other information as the applicant may submit:

 

 

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1        (1) That the applicant possesses sufficient technical,
2    financial and managerial resources and abilities to
3    provide the service for which it seeks a certificate of
4    service authority. In determining the level of technical,
5    financial and managerial resources and abilities which the
6    applicant must demonstrate, the Commission shall consider
7    (i) the characteristics, including the size and financial
8    sophistication, of the customers that the applicant seeks
9    to serve, and (ii) whether the applicant seeks to provide
10    electric power and energy using property, plant and
11    equipment which it owns, controls or operates;
12        (2) That the applicant will comply with all applicable
13    federal, State, regional and industry rules, policies,
14    practices and procedures for the use, operation, and
15    maintenance of the safety, integrity and reliability, of
16    the interconnected electric transmission system;
17        (3) That the applicant will only provide service to
18    retail customers in an electric utility's service area that
19    are eligible to take delivery services under this Act;
20        (4) That the applicant will comply with such
21    informational or reporting requirements as the Commission
22    may by rule establish and provide the information required
23    by Section 16-112. Any data related to contracts for the
24    purchase and sale of electric power and energy shall be
25    made available for review by the Staff of the Commission on
26    a confidential and proprietary basis and only to the extent

 

 

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1    and for the purposes which the Commission determines are
2    reasonably necessary in order to carry out the purposes of
3    this Act;
4        (5) That the applicant will procure renewable energy
5    resources in accordance with Section 16-115D of this Act,
6    and will source electricity from clean coal facilities, as
7    defined in Section 1-10 of the Illinois Power Agency Act,
8    in amounts at least equal to the percentages set forth in
9    subsections (c) and (d) of Section 1-75 of the Illinois
10    Power Agency Act. For purposes of this Section:
11            (i) (Blank);
12            (ii) (Blank);
13            (iii) the required sourcing of electricity
14        generated by clean coal facilities, other than the
15        initial clean coal facility, shall be limited to the
16        amount of electricity that can be procured or sourced
17        at a price at or below the benchmarks approved by the
18        Commission each year in accordance with item (1) of
19        subsection (c) and items (1) and (5) of subsection (d)
20        of Section 1-75 of the Illinois Power Agency Act;
21            (iv) all alternative retail electric suppliers
22        shall execute a sourcing agreement to source
23        electricity from the initial clean coal facility, on
24        the terms set forth in paragraphs (3) and (4) of
25        subsection (d) of Section 1-75 of the Illinois Power
26        Agency Act, except that in lieu of the requirements in

 

 

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

 

 

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

 

 

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

 

 

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1        sequestration requirement and the other terms of this
2        contract provision. Compliance with the sequestration
3        requirements and offset purchase requirements that
4        apply to the initial clean coal facility shall be
5        reviewed annually by an independent expert retained by
6        the owner of the initial clean coal facility, with the
7        advance written approval of the Attorney General;
8            (vi) The Commission shall, after notice and
9        hearing, revoke the certification of any alternative
10        retail electric supplier that fails to execute a
11        sourcing agreement with the initial clean coal
12        facility as required by item (5) of subsection (d) of
13        this Section. The sourcing agreements with this
14        initial clean coal facility shall be subject to both
15        approval of the initial clean coal facility by the
16        General Assembly and satisfaction of the requirements
17        of item (4) of subsection (d) of Section 1-75 of the
18        Illinois Power Agency Act, and shall be executed within
19        90 days after any such approval by the General
20        Assembly. The Commission shall not accept an
21        application for certification from an alternative
22        retail electric supplier that has lost certification
23        under this subsection (d), or any corporate affiliate
24        thereof, for at least one year from the date of
25        revocation;
26        (6) With respect to an applicant that seeks to serve

 

 

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1    residential or small commercial retail customers, that the
2    area to be served by the applicant and any limitations it
3    proposes on the number of customers or maximum amount of
4    load to be served meet the provisions of Section 16-115A,
5    provided, that the Commission can extend the time for
6    considering such a certificate request by up to 90 days,
7    and can schedule hearings on such a request;
8        (7) That the applicant meets the requirements of
9    subsection (a) of Section 16-128; and
10        (8) That the applicant will comply with all other
11    applicable laws and regulations.
12    (d-5) (Blank).
13    (e) A retail customer that owns a cogeneration or
14self-generation facility and that seeks certification only to
15provide electric power and energy from such facility to retail
16customers at separate locations which customers are both (i)
17owned by, or a subsidiary or other corporate affiliate of, such
18applicant and (ii) eligible for delivery services, shall be
19granted a certificate of service authority upon filing an
20application and notifying the Commission that it has entered
21into an agreement with the relevant electric utilities pursuant
22to Section 16-118. Provided, however, that if the retail
23customer owning such cogeneration or self-generation facility
24would not be charged a transition charge due to the exemption
25provided under subsection (f) of Section 16-108 prior to the
26certification, and the retail customers at separate locations

 

 

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1are taking delivery services in conjunction with purchasing
2power and energy from the facility, the retail customer on
3whose premises the facility is located shall not thereafter be
4required to pay transition charges on the power and energy that
5such retail customer takes from the facility.
6    (f) The Commission shall have the authority to promulgate
7rules and regulations to carry out the provisions of this
8Section. On or before May 1, 1999, the Commission shall adopt a
9rule or rules applicable to the certification of those
10alternative retail electric suppliers that seek to serve only
11nonresidential retail customers with maximum electrical
12demands of one megawatt or more which shall provide for (i)
13expedited and streamlined procedures for certification of such
14alternative retail electric suppliers and (ii) specific
15criteria which, if met by any such alternative retail electric
16supplier, shall constitute the demonstration of technical,
17financial and managerial resources and abilities to provide
18service required by subsection (d) (1) of this Section, such as
19a requirement to post a bond or letter of credit, from a
20responsible surety or financial institution, of sufficient
21size for the nature and scope of the services to be provided;
22demonstration of adequate insurance for the scope and nature of
23the services to be provided; and experience in providing
24similar services in other jurisdictions.
25    (g) An alternative retail electric supplier may seek
26confidential treatment for the following information by filing

 

 

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

 

 

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1Commission. The affidavit must be accompanied by a
2"confidential" and a "public" version of the document or
3documents containing the information for which confidential
4treatment is sought.
5    If the alternative retail electric supplier has met the
6affidavit requirements of this subsection (g), then the
7Commission shall afford confidential treatment to the
8information identified in the affidavit for a period of 2 years
9after the date the affidavit is received by the Commission.
10    Nothing in this subsection (g) prevents an alternative
11retail electric supplier from filing a petition with the
12Commission seeking confidential treatment for information
13beyond that identified in this subsection (g) or for
14information contained in other reports or documents filed with
15the Commission.
16    Nothing in this subsection (g) prevents the Commission, on
17its own motion, or any party from filing a formal petition with
18the Commission seeking to reconsider the conferring of
19confidential status on an item of information afforded
20confidential treatment pursuant to this subsection (g).
21    The Commission, on its own motion, may at any time initiate
22a docketed proceeding to investigate the continued
23applicability of this subsection (g) to the information
24contained in items (i), (ii), and (iii) of this subsection (g).
25If, at the end of such investigation, the Commission determines
26that a particular item of information should no longer be

 

 

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1eligible for the affidavit-based process outlined in this
2subsection (g), the Commission may enter an order to remove
3that item from the list of items eligible for the process set
4forth in this subsection (g). Notwithstanding any such order,
5in the event the Commission makes such a determination, nothing
6in this subsection (g) prevents an alternative retail electric
7supplier desiring confidential treatment for such information
8from filing a formal petition with the Commission seeking
9confidential treatment for such information.
10(Source: P.A. 95-130, eff. 1-1-08; 95-1027, eff. 6-1-09;
1196-159, eff. 8-10-09.)
 
12    (220 ILCS 5/19-110)
13    Sec. 19-110. Certification of alternative gas suppliers.
14    (a) The provisions of this Section shall apply only to
15alternative gas suppliers serving or seeking to serve
16residential or small commercial customers and only to the
17extent such alternative gas suppliers provide services to
18residential or small commercial customers.
19    (b) An alternative gas supplier must obtain a certificate
20of service authority from the Commission in accordance with
21this Section before serving any customer or other user located
22in this State. An alternative gas supplier may request, and the
23Commission may grant, a certificate of service authority for
24the entire State or for a specified geographic area of the
25State. A person, corporation, or other entity acting as an

 

 

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1alternative gas supplier on the effective date of this
2amendatory Act of the 92nd General Assembly shall have 180 days
3from the effective date of this amendatory Act of the 92nd
4General Assembly to comply with the requirements of this
5Section in order to continue to operate as an alternative gas
6supplier.
7    (c) An alternative gas supplier seeking a certificate of
8service authority shall file with the Commission a verified
9application containing information showing that the applicant
10meets the requirements of this Section. The alternative gas
11supplier shall publish notice of its application in the
12official State newspaper within 10 days following the date of
13its filing. No later than 45 days after the application is
14properly filed with the Commission, and such notice is
15published, the Commission shall issue its order granting or
16denying the application.
17    (d) An application for a certificate of service authority
18shall identify the area or areas in which the applicant intends
19to offer service and the types of services it intends to offer.
20Applicants that seek to serve residential or small commercial
21customers within a geographic area that is smaller than a gas
22utility's service area shall submit evidence demonstrating
23that the designation of this smaller area does not violate
24Section 19-115. An applicant may state in its application for
25certification any limitations that will be imposed on the
26number of customers or maximum load to be served. The applicant

 

 

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1shall submit as part of its application a statement indicating:
2        (1) Whether the applicant has been denied a natural gas
3    supplier license in any state in the United States.
4        (2) Whether the applicant has had a natural gas
5    supplier license suspended or revoked by any state in the
6    United States.
7        (3) Where, if any, other natural gas supplier license
8    applications are pending in the United States.
9        (4) Whether the applicant is the subject of any
10    lawsuits filed in a court of law or formal complaints filed
11    with a regulatory agency alleging fraud, deception or
12    unfair marketing practices, or other similar allegations,
13    identifying the name, case number, and jurisdiction of each
14    such lawsuit or complaint.
15    For the purposes of this subsection (d), formal complaints
16include only those complaints that seek a binding determination
17from a state or federal regulatory body.
18    (e) The Commission shall grant the application for a
19certificate of service authority if it makes the findings set
20forth in this subsection based on the verified application and
21such other information as the applicant may submit.
22        (1) That the applicant possesses sufficient technical,
23    financial, and managerial resources and abilities to
24    provide the service for which it seeks a certificate of
25    service authority. In determining the level of technical,
26    financial, and managerial resources and abilities which

 

 

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1    the applicant must demonstrate, the Commission shall
2    consider:
3            (A) the characteristics, including the size and
4        financial sophistication of the customers that the
5        applicant seeks to serve;
6            (B) whether the applicant seeks to provide gas
7        using property, plant, and equipment that it owns,
8        controls, or operates; and
9            (C) the applicant's commitment of resources to the
10        management of sales and marketing staff, through
11        affirmative managerial policies, independent audits,
12        technology, hands-on field monitoring and training,
13        and, in the case of applicants who will have sales
14        personnel or sales agents within the State of Illinois,
15        the applicant's managerial presence within the State.
16        (2) That the applicant will comply with all applicable
17    federal, State, regional, and industry rules, policies,
18    practices, and procedures for the use, operation, and
19    maintenance of the safety, integrity, and reliability of
20    the gas transmission system.
21        (3) That the applicant will comply with such
22    informational or reporting requirements as the Commission
23    may by rule establish.
24        (4) That the area to be served by the applicant and any
25    limitations it proposes on the number of customers or
26    maximum amount of load to be served meet the provisions of

 

 

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1    Section 19-115, provided, that if the applicant seeks to
2    serve an area smaller than the service area of a gas
3    utility or proposes other limitations on the number of
4    customers or maximum amount of load to be served, the
5    Commission can extend the time for considering such a
6    certificate request by up to 90 days, and can schedule
7    hearings on such a request.
8        (5) That the applicant and the applicant's sales agents
9    will comply with all other applicable laws and rules.
10    (f) The Commission can extend the time for considering such
11a certificate request by up to 90 days, and can schedule
12hearings on such a request if:
13        (1) a party to the application proceeding has formally
14    requested that the Commission hold hearings in a pleading
15    that alleges that one or more of the allegations or
16    certifications in the application is false or misleading;
17    or
18        (2) other facts or circumstances exist that will
19    necessitate additional time or evidence in order to
20    determine whether a certificate should be issued.
21    (g) The Commission shall have the authority to promulgate
22rules to carry out the provisions of this Section. Within 30
23days after the effective date of this amendatory Act of the
2492nd General Assembly, the Commission shall adopt an emergency
25rule or rules applicable to the certification of those gas
26suppliers that seek to serve residential customers. Within 180

 

 

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1days of the effective date of this amendatory Act of the 92nd
2General Assembly, the Commission shall adopt rules that specify
3criteria which, if met by any such alternative gas supplier,
4shall constitute the demonstration of technical, financial,
5and managerial resources and abilities to provide service
6required by item (1) of subsection (e) of this Section, such as
7a requirement to post a bond or letter of credit, from a
8responsible surety or financial institution, of sufficient
9size for the nature and scope of the services to be provided,
10demonstration of adequate insurance for the scope and nature of
11the services to be provided, and experience in providing
12similar services in other jurisdictions.
13    (h) The Commission may deny with prejudice any application
14that repeatedly fails to include the attachments,
15documentation, and affidavits required by the application form
16or that repeatedly fails to provide any other information
17required by this Section.
18    (i) An alternative gas supplier may seek confidential
19treatment for the reporting to the Commission of its total
20annual dekatherms delivered and sold by it to residential and
21small commercial customers by utility service territory during
22the preceding year via the filing of an affidavit with the
23Commission so long as the affidavit meets the requirements of
24this subsection (i). The affidavit must be filed
25contemporaneously with the information for which confidential
26treatment is sought and must clearly state that the affiant

 

 

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1seeks confidential treatment pursuant to this subsection (i)
2and the information for which confidential treatment is sought
3must be clearly identified on the confidential version of the
4document filed with the Commission. The affidavit must be
5accompanied by both a "confidential" and a "public" version of
6the document or documents containing the information for which
7confidential treatment is sought.
8    If the alternative gas supplier has met the affidavit
9requirements of this subsection (i), then the Commission shall
10afford confidential treatment to the information identified in
11the affidavit for a period of 2 years after the date the
12affidavit is received by the Commission.
13    Nothing in this subsection (i) prevents an alternative gas
14supplier from filing a petition with the Commission seeking
15confidential treatment for information beyond that identified
16in this subsection (i) or for information contained in other
17reports or documents filed with the Commission.
18    Nothing in this subsection (i) prevents the Commission, on
19its own motion, or any party from filing a formal petition with
20the Commission seeking to reconsider the conferring of
21confidential status pursuant to this subsection (i).
22    The Commission, on its own motion, may at any time initiate
23a docketed proceeding to investigate the continued
24applicability of this affidavit-based process for seeking
25confidential treatment. If, at the end of such investigation,
26the Commission determines that this affidavit-based process

 

 

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1for seeking confidential treatment for the information is no
2longer necessary, the Commission may enter an order to that
3effect. Notwithstanding any such order, in the event the
4Commission makes such a determination, nothing in this
5subsection (i) prevents an alternative gas supplier desiring
6confidential treatment for such information from filing a
7formal petition with the Commission seeking confidential
8treatment for such information.
9(Source: P.A. 95-1051, eff. 4-10-09.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".