Illinois General Assembly - 220 ILCS 5/ Public Utilities Act.

(220 ILCS 5/16-201)

(This Section may contain text from a Public Act with a delayed effective date)

Sec. 16-201. Integrated resource plan development.

(a) The General Assembly hereby finds that:

(1) In 2021, Illinois set itself on the path to a clean energy future that would produce the least amount of carbon and copollutant emissions while ensuring adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time and in a manner that benefits the Illinois economy and workforce and improves the quality of life, including environmental health, for all its citizens.

(2) In the ensuing years, Illinois has created a strong economic environment that has led to the revitalization and expansion of its manufacturing sector and has made Illinois an attractive place for the technology industry to locate new data and quantum computing centers. These developments have led to the creation of good-paying jobs for working families.

(3) The unforeseen growth in the manufacturing and technology sectors will likely lead to a dramatic increase in electricity demand over time.

(4) The long interconnection times and the capacity market structures enacted by the 2 regional transmission organizations that Illinois is split between further exacerbate the potential for an imbalance between electricity supply and demand.

(5) The new sources of load growth from the manufacturing and technology sectors combined with external challenges require a more nimble and responsive administrative approach to effectively address future resource adequacy challenges.

(6) The Illinois agencies that oversee and implement Illinois energy policy must have the ability to (i) fully understand current and future resource adequacy needs, (ii) plan for what resources could be utilized to address such needs, (iii) be able to coordinate, modify, expand, and direct all of Illinois' existing energy programs and policies so as to address any resource adequacy or reliability concerns, and (iv) direct the development of new energy programs and policies in order meet resource adequacy and reliability needs without the need for additional legislative action.

(b) The purpose of this Section is to ensure that the Commission, the agencies, electric utilities supplying electric service in Illinois, stakeholders, market participants, and policymakers have a common set of data and information regarding the State's electricity resource needs in order to plan for sufficient electricity resources to serve Illinois customers in a manner that is adequate, safe, reliable, affordable, efficient, environmentally sustainable, at the lowest cost over time, and consistent with the energy policy goals of the State, including, but not limited to, the clean energy policy established by Public Act 102-662. To that end, this Section establishes a requirement that the agencies prepare an integrated resource plan and submit such plan to the Commission consistent with this Section for the Commission's review and approval after an opportunity for notice and hearing.

(c) Unless otherwise specified, as used in this Section, the following terms shall have the following meanings:

(1) "Advanced transmission technologies" means technologies, tools, and software that improve power flows over transmission systems and lines. "Advanced transmission technologies" includes, but is not limited to, the following:

(i) technology that dynamically adjusts the rated capacity of transmission lines based on real-time conditions;

(ii) advanced power flow controls used to actively control the flow of electricity across transmission lines to optimize usage or relieve congestion;

(iii) software or hardware used to identify optimal transmission grid configurations or enable routing power flows around congestion points; and

(iv) advanced transmission line conductors that have a direct current electrical resistance at least 10% lower than existing conductors of a similar diameter on the transmission system.

(2) "Agencies" means the Illinois Commerce Commission Staff, the Illinois Power Agency, the Illinois Finance Authority, the Illinois Environmental Protection Agency, and any consultants those agencies retain, including, but not limited to, the consultant retained by the Commission pursuant to subsection (j) of this Section and the consultant retained by the Illinois Power Agency pursuant to paragraph (1) of subsection (a) of Section 1-75 of the Illinois Power Agency Act.

(3) "Clean energy" means energy generation that either:

(A) emits no on-site SO2, NOx, mercury, or any other regulated pollutants; or

(B) as shown through pollution control technologies, has reduced a generator's CO2 emissions by 90% compared to what the generator would have otherwise emitted and that has CO2 emissions less than 130 lb/MWh.

(4) "Regional transmission organization" or "RTO" means PJM Interconnection, LLC (PJM) and the Midcontinent Independent System Operator, Inc. (MISO) or the regional transmission organization or independent system operator of which the electric utility is a member or would be a member, given the location of the electric utility's customers, if it were required to be a member.

(d) The agencies, coordinated by Commission staff, shall compile and propose an integrated resource plan in compliance with this Section. The agencies may consult with each electric utility that has more than 500,000 electric retail customers in developing the plan and the plan shall consider any necessary interactions between RTO zones in the State. Commission staff shall submit the initial integrated resource plan to the Commission no later than November 15, 2026, the second integrated resource plan to the Commission no later than September 30, 2029, and each subsequent plan to the Commission every 4 years thereafter no later than September 30 of the applicable year. For the first integrated resource plan due on November 15, 2026, the agencies shall take into account the resource adequacy report prepared pursuant to subsection (o) of Section 9.15 of the Environmental Protection Act and shall specifically address any and all divergences from the analysis and conclusions in the report. At any time after the submission of a plan, the agencies may submit an update to the plan if the agencies believe that a material change in the inputs or conclusions of the plan is warranted. The agencies shall notify the Commission as soon as practicable of the material change and the potential update to the plan. The Commission shall publish the integrated resource plan on its website.

(e) An alternative retail electric supplier shall provide information related to the resource needs of its customers located in an electric utility's service territory as requested by the agencies or the Commission to compile and develop the plan required by this Section.

(f) Commission staff shall lead the agencies in the development of the integrated resource plan to ensure that a plan submitted pursuant to this Section includes a detailed analysis of the following:

(1) an evaluation of the future electric resource needs in each electric utility's service area for periods of at least 5, 10, 15, and 20 years such that the plan coincides with the timelines established in Section 9.15 of Title II of the Environmental Protection Act and is designed to support those standards to the maximum extent practicable on the schedule established therein;

(2) peak demand and energy usage forecasts, such that the plan:

(i) contains no fewer than 3 scenarios of (i) forecasted peak demand, (ii) net peak demand if different from peak demand, (iii) non-coincidental peak demand, and (iv) energy usage, to capture a reasonable range of forecasts based on historic trends and a diverse range of more conservative to high load growth based on reasonable projections. The scenarios should consider estimates of peak demand corresponding to seasons or other applicable time periods as defined by the regional transmission organization in which this State's electric utilities are a member;

(ii) reflects known changes in facility and appliance codes and standards;

(iii) reflects load reductions from State-sponsored programs;

(iv) reflects load reductions from programs sponsored by electric utilities;

(v) reflects load reductions from aggregators of retail customers that can be applied to the host load-serving entity's resource adequacy requirement;

(vi) reflects load reductions from any other sources including out-of-state programs that could influence load;

(vii) reflects expected adoption of other distributed energy resources, including behind-the-meter generation; and

(viii) includes any additional sensitivities as determined by the agencies;

(3) an analysis of all generation and energy resource options available to meet the range of load forecasts with a focus on the first period of at least 5 years covered by the plan, including an analysis of existing supply found within each electric utility's service area and new supply expected to come online across that period of at least 5 years, such that the plan shall consider the following:

(i) the current and projected status of electric resource adequacy throughout the State from sources the agencies deem reasonable;

(ii) a range of resource options that can be deployed at a reasonable scale, that provide clean energy to the maximum extent practicable, and that include generation and energy resources on both the demand-side and supply-side;

(iii) developing technologies that will be commercially viable during the period of analysis;

(iv) reflect reasonable assumptions for capital and operating costs and the performance of resource technologies. The calculation of resource costs shall include reasonable expected costs for transmission interconnection and network upgrades made necessary by the addition of each resource; and

(v) appropriate considerations for implementation, such as:

(A) timelines for implementation, including, but not limited to, siting, permitting, engineering, transmission interconnection, and the time it takes to modify existing programs or create new programs and put them into operation;

(B) recommendations for how new clean resources should be developed to respond to resource adequacy challenges; and

(C) any other requirements for implementation;

(4) confirmation that the resource adequacy and reliability requirements employed in the plan meet the following conditions:

(i) the plan must reflect planning reserve margin requirements established by the corresponding RTO, other resource adequacy requirements set by an applicable authority as authorized by the State, or another standard chosen by the Commission; and

(ii) the integrated resource plan may reflect a supplemental reliability analysis, including the evaluation of reliability metrics not prescribed by an RTO or other applicable authority as authorized by the State;

(5) consistency with existing State and federal environmental laws and policies, including, but not limited to, the decarbonization goals set forth in Section 9.15 of the Illinois Environmental Protection Act. The plan may consider potential changes in State and federal environmental laws and policies. The plan must provide expected emissions for CO2, SO2, NOx, mercury, and any other regulated pollutants in order to analyze the impact of retirement timelines on emissions reductions. The plan must be consistent with the State's other clean energy goals and targets, including, but not limited to, its renewable portfolio standard, its energy efficiency portfolio standard, the carbon mitigation credit program, and its energy storage system portfolio standard. The plan shall include an analysis of the following:

(i) the State's current progress toward its renewable energy resource development goals, its storage development goals, and its energy efficiency and demand-response goals, as well as the pace of the development of renewables, energy storage, including distributed storage, the deployment of virtual power plants, and demand-response utilization; and

(ii) the status of the State's CO2e and copollutant emissions reductions and its current status and progress toward developing emerging clean energy technologies;

(6) consideration of the following additional issues:

(i) an integrated resource plan shall be designed to collectively meet all of Illinois' energy policy goals and shall describe:

(A) how the plan complies with the various requirements of State energy policy;

(B) the assumptions and analytical methods used in the plan;

(C) recommendations for how State policy should serve to facilitate the development of new resources;

(D) the impacts of the plan on customer costs, including net present value costs relative to alternatives; and

(E) how the plan improves energy equity within environmental justice and equity investment eligible communities, as defined by the Energy Transition Act, including, but not limited to, reducing energy burden, ensuring affordability of electric utility bills and uninterruptible essential utility service, and reducing barriers to accessing renewable energy;

(ii) an integrated resource plan shall include a discussion of the steps needed to implement the plan, including, but not limited to, options and steps to bring on new or increased energy generated from any recommended resources for the 5 years after the plan would be implemented, that align with State clean energy policy;

(iii) an integrated resource plan shall consider the information and conclusions set forth in the renewable energy access plan developed in accordance with Section 8-512, including, but not limited to, information concerning the locations of renewable energy access plan zones, considerations of advanced transmission technologies to increase efficiencies, and different transmission planning options and cost allocations;

(iv) an integrated resource plan may consider the impacts of future or anticipated changes in State and federal energy laws and policies; and

(v) any solutions for any additional conclusions;

(7) if the agencies choose, portfolio-optimization results based on the following:

(i) capacity expansion and production cost modeling consistent with the conditions and constraints set forth in this Section;

(ii) optimized candidate portfolios that align with the load-growth scenarios described in paragraph (2) of subsection (f) of this Section and any additional portfolios chosen by the agencies to reflect alternative policy or technology assumptions;

(iii) a comparison of total system cost on a net-present-value basis, customer rate and bill impacts, risk metrics, including, but not limited to, cost variability under fuel-price and load shocks, emissions trajectories, and key reliability indicators; and

(iv) an identification of a preferred portfolio or portfolios that best satisfy the objectives of affordability, reliability, equity, and emission reduction and a narrative explanation of why the portfolio is recommended; and

The agencies may request that PJM and MISO, or their respective successor organizations, conduct a resource adequacy and reliability study. The study shall include the megawatt amount of energy storage capacity that would maintain resource adequacy during the study period to fully meet the requirements for CO2e and copollutant emissions reductions under Public Act 102-662 that would not otherwise be met by the interconnection queue and without large transmission upgrades, including maintaining sufficient in-State capacity to meet the zonal requirements of MISO Zone 4 or the PJM ComEd Zone. The study shall also identify recommended geographic locations for new storage and clean energy to mitigate local reliability risks, including at or near the sites of any generator deactivations to maximize the efficient utilization of existing infrastructure.

(Source: P.A. 104-458, eff. 6-1-26.)

(220 ILCS 5/16-202)

(This Section may contain text from a Public Act with a delayed effective date)

Sec. 16-202. Integrated resource plan review and approval.

(a) The Commission shall enter its order approving or approving with modifications an integrated resource plan within 180 days after the agencies filing the plan and any companion reports or other information. The Commission may extend the period of review of the plan for no more than an additional 180 days.

(b) The Commission may approve a plan or a modified plan and authorize its implementation only if, after notice and hearing, including the conduct of discovery and taking of evidence, it finds that the plan:

(1) addresses any resource adequacy challenges in the 5 years immediately following approval of the plan, while also taking into account the 10 years following the plan;

(2) prepares the State to best address issues of resource adequacy at the least amount of CO2e and copollutant emissions;

(3) considers the emissions' impacts on environmental justice communities while taking into account all applicable labor and equity standards;

(4) supports the provisioning of adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time; and

(5) utilizes the expansion of renewable energy, energy storage, virtual power plants and distributed energy storage, energy efficiency, demand response, time-of-use rates or other mechanisms designed to manage peak load, transmission development, carbon mitigation credits or any other clean energy strategies to the maximum extent practicable to resolve any identified resource adequacy shortfall or reliability violation in a cost-effective, affordable, timely, and clean manner.

(c) The Commission may, as a part of its decision to approve a plan or modified plan and to the extent consistent with the uniform allocation of costs required under subsection (k) of Section 16-108, order changes to existing programs, direct specific actions within existing programs including the authorization to support the expansion of an existing program, including, but not limited to:

(1) any of the following plans or programs designed to increase the amount of generation and capacity available:

(i) the Long-Term Renewable Resources Procurement Plan, including programs and procurements authorized through that Plan, and to increase the limitations placed on the procurement of renewable energy resources established pursuant to subparagraph (E) of paragraph (1) of subsection (c) of Section 1-75 of the Illinois Power Agency Act in order to increase, direct, or adjust procurements of renewable energy resources to support new renewable energy projects;

(ii) the Energy Storage Resources Procurement Plan, including programs and procurements authorized through that Plan, and to increase the procurement of energy storage established pursuant to subsection (d-20) of Section 1-75 of the Illinois Power Agency Act in order to increase or adjust procurements for new energy storage;

(iii) the carbon mitigation credit procurement plans established pursuant to subsection (d-10) of Section 1-75 of the Illinois Power Agency Act in order to preserve existing carbon-free energy resources, including extending or expanding carbon mitigation credit contract awards in accordance with a new schedule of baseline costs;

(iv) the Illinois Power Agency's annual electricity procurement plans established pursuant to paragraph (2) of subsection (d) of Section 16-111.5, including modification of the products to be procured and allowing for costs associated with the purchase of new or additional products to be socialized across all retail customers or all load-serving entities, as applicable; and

(v) any additional programs designed to procure appropriate sources of new clean energy and capacity resources, including any associated clean attribute credits; and

(2) any of the following designed to manage energy demand, including, but not limited to:

(i) extending or expanding the energy efficiency programs implemented by electric utilities and the limitation on the amount of energy efficiency and demand-response measures implemented pursuant to Section 8-103B in order to gain increased load reductions; and

(ii) the Multi-Year Integrated Grid Plans implemented by electric utilities pursuant to Section 16-105.17 in order to extend or expand programs related to peak load management and reduction, including, but not limited to, virtual power plants, front of the meter distributed storage, demand response, and time-of-use rates.

(d) If all of the changes made to the programs pursuant to this Section would reasonably be insufficient to balance supply and demand and avoid a resource adequacy shortfall, then the Commission may delay, in whole or in part, the CO2e and copollutant emissions reductions requirements found in Section 9.15 of the Environmental Protection Act but only to the minimum extent and duration necessary to address the resource adequacy shortfall needs of the State. If the Commission finds that reducing or delaying the emissions reductions requirements is necessary, despite any or all of the changes made pursuant to this Section, then it shall also include in its final order recommendations to the General Assembly on what additional policies may be adopted that could avoid future modifications to the emissions reductions.

(e) Unless otherwise specified by the Commission, the order approving the plan or modified plan shall become effective January 1 of the calendar year immediately following the issuance of the order. The agencies, electric utilities, and any other impacted entities shall comply with any of the Commission's orders, and when required seek approval from the Commission and make any required modifications to their plans, programs, or related initiatives in a manner consistent with the process and timing for those changes as outlined in the approved plans or, if none is specified, as soon as practicable. If the integrated resource plan approved by the Commission contains recommendations that are outside the Commission's authority, the Commission shall communicate any such recommendations to the Governor and the General Assembly.

(f) Given the critical and rapid actions required under this Section, the Commission may procure the services of any facilitator, expert, or consultant, including the procurement monitor retained by the Commission pursuant to paragraph (2) of subsection (c) of Section 16-111.5. Such procurement is exempt from the requirements of the Illinois Procurement Code, pursuant to Section 20-10 of that Code.

(g) Costs that are prudently and reasonably incurred by electric utilities to comply with the requirements of this Section shall be recovered and shall be excluded from the calculation performed under paragraph (6) of subsection (f) of Section 16-108.18. Nothing in the Commission's order directing changes to a prior approved plan as enumerated in this Section shall be the sole basis for a finding of imprudence or unreasonableness or the lack of use or usefulness of any investment or expenditure.

(h) If the Commission's final order under this Section includes the approval of rate increases through the expansion of existing programs, the creation of new programs, or the increase of limitations placed on procurements as described under paragraphs (1) and (2) of subsection (c), the Commission shall submit notice to the General Assembly of the increases included in the final order, including the estimated monthly cost impact on customers and the expected costs savings or benefits of such actions. After receipt of a notice, any member of the General Assembly may introduce in the General Assembly a joint resolution stating that the General Assembly desires to suspend the rate increases, or suspend a portion of the rate increases, identified in the final order and specifying the rationale for the General Assembly's determination.

(1) If the General Assembly passes a joint resolution under this subsection (h) that takes effect prior to the effective date of the Commission's final order, the General Assembly shall send notice to the Commission of the resolution, and the Commission shall suspend its final order. Within 30 days of receipt of the General Assembly's notice, the Commission shall reopen the docket approving the plan or modified plan in order to take into account the General Assembly's reduction or elimination of the rate increases. The Commission shall approve the modified plan within 120 days of reopening the docket, including the conduct of discovery and the taking of evidence, and send notice to the General Assembly of its modified plan. The General Assembly may rescind its desire to suspend the rate increases, or suspend a portion of the rate increases, by adoption of a subsequent joint resolution by each chamber of the General Assembly within 30 days of receipt of the Commission's notice that would put into effect the Commission's original final order.

(2) If the General Assembly fails to pass a joint resolution under this subsection (h) prior to the effective date of the Commission's final order, the associated rate increases shall go into effect pursuant to the schedule specified in the Commission's final order approving the plan or modified plan.

(i) The Commission may adopt rules to implement the requirements of this Section.

(Source: P.A. 104-458, eff. 6-1-26.)

(220 ILCS 5/Art. XVII heading) ARTICLE XVII. ELECTRIC COOPERATIVES AND MUNICIPAL SYSTEMS

(220 ILCS 5/17-100)

Sec. 17-100. Exemption from provisions of this amendatory Act of 1997. Electric cooperatives, as defined in Section 3.4 of the Electric Supplier Act, and public utilities that are owned and operated by any political subdivision, or municipal corporation of this State, or owned by such an entity and operated by any lessee or any operating agent thereof, hereinafter referred to as municipal systems, shall not be subject to the provisions of this amendatory Act of 1997, except as hereinafter provided in this Article XVII.

(Source: P.A. 90-561, eff. 12-16-97.)

(220 ILCS 5/17-200)

Sec. 17-200. Election to provide existing or future customers access to alternative retail electric suppliers.

(a) An electric cooperative or municipal system each may, by appropriate action and at the sole discretion of the governing body of each, from time to time make one or more elections to cause one or more of the existing or future customers of each respective system to be eligible to take service from an alternative retail electric supplier for a specified period of time. Provided that, and subject to their authority to serve customers pursuant to the Electric Supplier Act with respect to electric cooperatives and pursuant to the Illinois Municipal Code with respect to municipal systems, each shall continue to provide exclusive distribution facilities for any existing and future customers that the electric cooperative or municipal system are now or in the future otherwise entitled to serve and which customers are now or in the future receiving service provided by an alternative retail electric supplier.

(b) Notification of election to provide existing or future customers access to alternative retail electric suppliers. The election by an electric cooperative or municipal system authorizing access to alternative retail electric suppliers for existing or future customers shall be made by filing notice thereof with the Commission and shall be made effective only by such filing.

(Source: P.A. 90-561, eff. 12-16-97.)

(220 ILCS 5/17-300)

Sec. 17-300. Election to be an alternative retail electric supplier.

(a) An electric cooperative or municipal system may, by appropriate action, and at the sole discretion of the governing body of each, make an election to become an alternative retail electric supplier. A generation and transmission electric cooperative may not, as an alternative retail electric supplier, serve any present or future retail customers of a distribution electric cooperative not a member of that generation and transmission electric cooperative unless at least 30% of the total number of meters of the generation and transmission electric cooperative's member-cooperatives are eligible to obtain electric power and energy from an alternative retail electric supplier other than the generation and transmission electric cooperative or an electric utility due to member-cooperative elections pursuant to either Section 17-200 or 17-300.

(b) Commission authority over an electric cooperative or municipal system electing to be an alternative retail electric supplier. An electric cooperative or municipal system electing to be an alternative retail electric supplier shall provide those services in accordance with Sections 16-115A and 16-115B of this Act, to the extent that these Sections have application to the services being offered by the electric cooperative or municipal system as an alternative retail electric supplier. In no case shall these provisions apply to the existing or future customers taking delivery services from an electric cooperative or municipal system pursuant to their respective authority under the Electric Supplier Act or the Illinois Municipal Code.

(c) Notification of election to be an alternative retail electric supplier. Upon filing notice of intent by an electric cooperative or a municipal system to become an alternative retail electric supplier, the Commission shall issue within 45 days a certificate of service authority for the entire State or for a specified geographic area of the State, as specified in the notice. Issuance of a certificate of service authority shall constitute compliance with Section 16-115 of this Act.

(d) Delivery services provided by electric cooperatives or municipal systems. Municipal systems or electric cooperatives making an election under this Section shall be required to provide delivery services on their respective systems to the electric utility or utilities in whose service area or areas the proposed service will be offered. Such required delivery services to be provided by the electric cooperatives and municipal systems shall be reasonably comparable to the delivery services provided to the electric cooperative's and municipal system's own customers.

(e) Exclusive authority over distribution facilities. Provided that, and subject to their authority to serve customers pursuant to the Electric Supplier Act with respect to electric cooperatives and pursuant to the Illinois Municipal Code with respect to municipal systems, each shall continue to provide the exclusive distribution facilities for any existing and future customers that the electric cooperative or municipal system is now or in the future otherwise entitled to serve, and which customers are now or in the future receiving service provided by an alternative retail electric supplier.

(Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)

(220 ILCS 5/17-400)

Sec. 17-400. Conditions prohibiting municipal system participation. At no time shall a municipal system make an election under Sections 17-200 or 17-300 of this Article if such election places at risk:

(1) Any status held by the municipal system or municipal corporation or political subdivision which provides exemption from State or federal tax statutes; or

(2) Any debt, credit instrument or other contractual financial obligation held by, or on behalf of the municipal system which was entered into under an exemption from State or federal tax statutes.

(Source: P.A. 90-561, eff. 12-16-97.)

(220 ILCS 5/17-500)

Sec. 17-500. Jurisdiction. Except as provided in the Electric Supplier Act, the Illinois Municipal Code, and this Article XVII, the Commission, or any other agency or subdivision thereof of the State of Illinois or any private entity shall have no jurisdiction over any electric cooperative or municipal system regardless of whether any election or elections as provided for herein have been made, and all control regarding an electric cooperative or municipal system shall be vested in the electric cooperative's board of directors or trustees or the applicable governing body of the municipal system.

(Source: P.A. 90-561, eff. 12-16-97.)

(220 ILCS 5/17-600)

Sec. 17-600. Rights of electric cooperatives and municipal systems in conflict herewith. Except as expressly provided for herein, this Article XVII shall not be construed to conflict with the rights of an electric cooperative or a municipal system as declared in the Electric Supplier Act or as set forth in the Illinois Municipal Code or the public policy against duplication of facilities as set forth therein.

(Source: P.A. 90-561, eff. 12-16-97.)

(220 ILCS 5/17-700)

Sec. 17-700. Right to create municipal utility unaffected. Nothing in this amendatory Act of 1997 shall limit the right of a municipality to form a municipal utility in accordance with Article 11, Division 117 of the Illinois Municipal Code and the provisions of this Article XVII shall apply to any municipal utility formed after the effective date of this amendatory Act of 1997.

(Source: P.A. 90-561, eff. 12-16-97.)