Full Text of HB1834 95th General Assembly
HB1834ham001 95TH GENERAL ASSEMBLY
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Executive Committee
Filed: 3/21/2007
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| AMENDMENT TO HOUSE BILL 1834
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| AMENDMENT NO. ______. Amend House Bill 1834 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Public Utilities Act is amended by adding | 5 |
| Article XXI as follows: | 6 |
| (220 ILCS 5/Art. XXI heading new)
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| ARTICLE XXI. CLEAN COAL DEVELOPMENT PROGRAM LAW | 8 |
| (220 ILCS 5/21-101 new)
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| Sec. 21-101. Short title. This Article may be cited as the | 10 |
| Clean Coal Development Program Law.
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| (220 ILCS 5/21-105 new)
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| Sec. 21-105. Findings. The General Assembly finds that: | 13 |
| (a) Growth of the State's population and economic base has | 14 |
| created a need for new baseload electric generation capacity in |
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| Illinois. | 2 |
| (b) Illinois has considerable natural resources that are | 3 |
| currently underutilized and could support development of new | 4 |
| baseload electric power at an affordable price. | 5 |
| (c) The development of new baseload electric generating | 6 |
| capacity is needed if the State is to continue to be successful | 7 |
| in attracting new businesses and jobs. | 8 |
| (d) Certain regions of the State, such as central and | 9 |
| southern Illinois, could benefit greatly from new employment | 10 |
| opportunities created by development of baseload electric | 11 |
| generating plants utilizing the plentiful supply of Illinois | 12 |
| Basin coal. | 13 |
| (e) Technology can be deployed that allows high sulfur | 14 |
| Illinois Basin coal to be burned efficiently while meeting | 15 |
| strict State and federal air quality limitations. | 16 |
| Specifically, the State shall encourage the use of advanced | 17 |
| clean coal technology, such as Integrated Gasification | 18 |
| Combined Cycle (IGCC) technology. | 19 |
| (f) The development of new baseload electric generating | 20 |
| plants, as contemplated in the Clean Coal Development Program | 21 |
| Law, will create benefits to all consumers of electricity in | 22 |
| the State. Such benefits will include lower and more stable | 23 |
| prices for electricity.
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| (220 ILCS 5/21-110 new)
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| Sec. 21-110. Definitions. For the purposes of this Article, |
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| the following terms shall be defined as set forth in this | 2 |
| Section. | 3 |
| The terms defined in Section 16-102 of the Public Utilities | 4 |
| Act have the meanings ascribed to them in that Act. | 5 |
| "Actual total capital costs" means, as more specifically | 6 |
| set forth in the service agreement or agreements for a clean | 7 |
| coal project, the total initial capital costs recoverable by | 8 |
| such clean coal project pursuant to its wholesale sales tariff | 9 |
| upon completion of such clean coal project. | 10 |
| "CCN" means a certificate of convenience and necessity. | 11 |
| "Clean coal project" means any existing or planned electric | 12 |
| generating project that has a wholesale tariff pursuant to the | 13 |
| Federal Power Act and that is designed (1) to have a nameplate | 14 |
| capacity of no less than 400 megawatts gross, (2) to be | 15 |
| directly interconnected with a participating electric utility, | 16 |
| (3) to utilize integrated gasification combined cycle | 17 |
| technology, and (4) to utilize as its primary fuel or feedstock | 18 |
| coal having high volatile bituminous rank and greater than 1.7 | 19 |
| pounds of sulfur per million Btu content and for which a final | 20 |
| air permit has been issued that: | 21 |
| (1) describes the project as having a designed | 22 |
| nameplate capacity of no less than 400 megawatts gross; and | 23 |
| (2) provides that the project's emissions shall not | 24 |
| exceed the following standards: | 25 |
| (A) with respect to NOx, 0.035 lbs./MMBtu; | 26 |
| (B) with respect to PM10 Total (filterable and |
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| condensable), 0.025 lbs./MMBtu; | 2 |
| (C) with respect to SO2, 0.02 lbs. / MMBtu; and | 3 |
| (D) with respect to mercury, 0.00002 lbs. / MWh. | 4 |
| The standards above that are described in lbs. / MMBtu are | 5 |
| to be expressed as MMBtu of heat input to the combined cycle | 6 |
| gas turbines of a clean coal project. When warranted by the | 7 |
| usage, "clean coal project" shall mean the owner, operator, or | 8 |
| lessee of a clean coal project.
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| "Core plant construction cost ceiling" means, as more | 10 |
| specifically set forth in the service agreement or agreements | 11 |
| for a given clean coal project, $1 per kilowatt of net design | 12 |
| capacity of a clean coal project expressed in January 2007 | 13 |
| nominal dollars, adjusted for inflation using the producer | 14 |
| price index published by the U.S. Bureau of Labor Statistics to | 15 |
| the date upon that the core plant construction cost quote for | 16 |
| such clean coal project is expressed.
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| "Core plant construction cost quote" means, as more | 18 |
| specifically set forth for a clean coal project in the | 19 |
| applicable service agreement or agreements, a price quote or | 20 |
| estimate prepared by a reputable engineering and construction | 21 |
| services firm (or group of firms) for the costs payable to one | 22 |
| or more contractors or suppliers for the engineering, | 23 |
| procurement, and construction of the core plant facilities | 24 |
| comprising a clean coal project. Such core plant facilities | 25 |
| shall include all civil, structural, mechanical, electrical, | 26 |
| control, and safety systems associated with the following major |
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| core plant functional areas: air separation, coal grinding and | 2 |
| slurry preparation, gasification and high temperature | 3 |
| synthesis gas cooling, low temperature synthesis gas cooling, | 4 |
| acid gas removal, sulfur recovery, tail gas treatment, combined | 5 |
| cycle power block, coal fines and slag handling, and water and | 6 |
| wastewater treatment at the plant site. The quote or estimate | 7 |
| shall be based on detailed design work sufficient to permit | 8 |
| quantification of major categories of materials, commodities, | 9 |
| and labor man hours, and receipt of quotes from vendors of | 10 |
| major equipment packages. The costs shall be expressed in | 11 |
| nominal dollars as of the date of the estimate and shall be | 12 |
| exclusive of construction financing costs, taxes, insurance, | 13 |
| and an escalation in materials and labor beyond the date as of | 14 |
| which the core plant construction cost quote is expressed, | 15 |
| costs associated with non-core plant interconnection | 16 |
| facilities for electric transmission, natural gas supply, | 17 |
| water supply and coal delivery, and other non-core plant costs. | 18 |
| For purposes of Section 21-145, the core plant construction | 19 |
| cost quote shall be expressed in nominal dollars per kilowatt | 20 |
| of net design capacity of the clean coal project by dividing | 21 |
| the core plant construction cost quote by the net design | 22 |
| capacity of the clean coal project. | 23 |
| "Department" means the Department of Commerce and Economic | 24 |
| Opportunity. | 25 |
| "FERC" means the Federal Energy Regulatory Commission, an | 26 |
| independent
regulatory commission within the Department of |
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| Energy established by Section 401 of the Department of Energy | 2 |
| Organization Act, or any agency succeeding to the powers | 3 |
| thereof under Section 205 of the Federal Power Act. | 4 |
| "Final air permit" means a Prevention of Significant | 5 |
| Deterioration of Air Quality (PSD) construction permit issued | 6 |
| pursuant to a final decision or order made on or before | 7 |
| December 31, 2010. | 8 |
| "Formula rate" means a formula used to calculate a | 9 |
| cost-based rate for the sale of electric capacity and | 10 |
| associated energy from a clean coal project set forth in the | 11 |
| applicable wholesale sales tariff. | 12 |
| "FutureGen demonstration project" means a 10-year | 13 |
| demonstration project sponsored by the United States to create | 14 |
| a zero-emissions electricity and hydrogen power plant that is: | 15 |
| (1) not otherwise eligible to participate in the Clean | 16 |
| Coal Development Program; | 17 |
| (2) designed to include all of the following: | 18 |
| (A) have a nameplate capacity of not greater than | 19 |
| 300 megawatts gross; | 20 |
| (B) be directly interconnected with a | 21 |
| participating electric utility; and | 22 |
| (C) utilize as its primary fuel or feedstock coal | 23 |
| having high volatile bituminous rank and greater than | 24 |
| 1.7 pounds of sulfur per million Btu content; and | 25 |
| (3) has a planned construction start date not later | 26 |
| than December 31, 2010.
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| "Participating electric utility" means any Illinois | 2 |
| electric utility as defined in the Public Utilities Act that as | 3 |
| of the effective date of this Act provides delivery services to | 4 |
| more than 100,000 customers in Illinois. | 5 |
| "Service agreement" means a service agreement for the sale | 6 |
| of electric capacity and associated energy from a clean coal | 7 |
| project substantively identical to the pro forma service | 8 |
| agreement contained in the applicable wholesale sales tariff. | 9 |
| "Total capital cost target" means $1, as adjusted in | 10 |
| accordance with the following: | 11 |
| (1) such amount shall be increased by any reasonably | 12 |
| estimated increase any total capital costs that results | 13 |
| from the core plant construction cost quote, as approved by | 14 |
| the ICC, being higher than the core plant construction cost | 15 |
| ceiling; | 16 |
| (2) such amount shall be decreased or increased, as the | 17 |
| case may be, by the amount, if any, by which actual total | 18 |
| capital costs are decreased or increased due to positive or | 19 |
| negative price escalation provided for under the | 20 |
| applicable contract or contracts for the core plant | 21 |
| construction, with any escalation in commodity prices | 22 |
| being based on published indices; | 23 |
| (3) such amount shall be increased by the amount of any | 24 |
| additional capital costs that are justly and reasonably | 25 |
| incurred due to a change in law or regulation enacted after | 26 |
| the date the applicable service agreement is executed by |
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| the participating electric utility; and | 2 |
| (4) such amount shall be increased by any increase in | 3 |
| total capitalized financing costs resulting from a clean | 4 |
| coal project not receiving Illinois moral obligation bond | 5 |
| financing or tax exempt finance volume cap allocation in | 6 |
| the amounts preliminarily approved for such clean coal | 7 |
| project by the Illinois Finance Authority or not receiving | 8 |
| state grants equal to at least 15% of the total capital | 9 |
| cost target.
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| "Wholesale sales tariff" means a schedule of rates, terms, | 11 |
| and conditions for the sale of electric capacity and associated | 12 |
| energy from a clean coal project filed with FERC by the owner, | 13 |
| lessee, or operator of that clean coal project and allowed by | 14 |
| FERC to become effective pursuant to Section 205 of the Federal | 15 |
| Power Act and Part 35 of FERC's regulations.
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| (220 ILCS 5/21-115 new)
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| Sec. 21-115. Clean coal development program. | 18 |
| (a) Each participating electric utility shall purchase | 19 |
| electric capacity and associated energy from the owners, | 20 |
| lessees, or operators of clean coal projects pursuant to | 21 |
| service agreements in accordance with the provisions of Section | 22 |
| 21-115 of this Article. | 23 |
| (b) Upon receipt of an offer from a clean coal project to | 24 |
| sell capacity and associated energy pursuant to a wholesale | 25 |
| sales tariff, the participating electric utility shall, within |
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| 30 days after receipt of the pro forma service agreement | 2 |
| contained in the wholesale sales tariff, execute the service | 3 |
| agreement and file the executed service agreement for | 4 |
| informational purposes with the Commission, provided that no | 5 |
| participating electric utility shall enter into a service | 6 |
| agreement if the amount of capacity to be purchased under such | 7 |
| service agreement, together with the aggregate amount of all | 8 |
| capacity purchased under other service agreements executed | 9 |
| previously or contemporaneously by the participating electric | 10 |
| utility from a FutureGen demonstration project, exceeds 8% of | 11 |
| the participating electric utility's coincident peak delivery | 12 |
| services load, expressed in kilowatts, for the calendar year | 13 |
| immediately preceding the effective date of this Article.
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| (220 ILCS 5/21-120 new)
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| Sec. 21-120. Characteristics of the wholesale sales | 16 |
| tariff. Subject to the jurisdiction of FERC with respect to the | 17 |
| wholesale sales tariff, in order to fulfill the purposes of the | 18 |
| Clean Coal Development Program, it is desirable that the | 19 |
| formula rate and service agreement have characteristics that | 20 |
| are adequate and appropriate to support the long-term | 21 |
| investments necessary for the construction and operation of | 22 |
| clean coal projects. It is the intent of the General Assembly | 23 |
| that: | 24 |
| (1) With respect to the formula rate, the following | 25 |
| characteristics are adequate and appropriate: |
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| (A) the use of a cost of service methodology | 2 |
| employing a level or ascending capital recovery | 3 |
| component; | 4 |
| (B) the use of a hypothetical capital structure, as | 5 |
| such structure is used by FERC pursuant to Sections 205 | 6 |
| and 206 of the Federal Power Act, that assumes a | 7 |
| capital structure for a clean coal project of 50% | 8 |
| equity and 50% debt; | 9 |
| (C) the use of a return on equity that is fixed for | 10 |
| the term of the service agreement at a rate equal to | 11 |
| the sum of 1 basis point and the rate applicable to | 12 |
| 30-year, commercial debt instruments bearing a senior, | 13 |
| unsecured credit rating by Standard & Poor's of BBB as | 14 |
| of the last business day of the month immediately | 15 |
| preceding the month in which the service agreement is | 16 |
| executed by the participating electric utility; and | 17 |
| (D) the use of an incentive and penalty mechanism | 18 |
| such that (i) if the actual total capital costs of a | 19 |
| given clean coal project exceeds the total capital cost | 20 |
| target by greater than 10%, then the return on equity | 21 |
| applicable to the portion of the actual total capital | 22 |
| costs in excess of 110% of the total capital cost | 23 |
| target shall be reduced by 1 basis point (with there | 24 |
| being 100 basis points in each percent of return on | 25 |
| equity), and (ii) if the actual total capital costs of | 26 |
| a given clean coal project are less than 90% of the |
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| total capital cost target, then the return on equity | 2 |
| for an amount equal to the amount that the total | 3 |
| capital cost is less than 90% of the total capital cost | 4 |
| target shall be increased by 1 basis point.
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| (2) With respect to the service agreement, the | 6 |
| following characteristics are adequate and appropriate: | 7 |
| (A) a provision setting forth a term of 30 years | 8 |
| commencing on the date upon which the clean coal | 9 |
| project achieves commercial operation; | 10 |
| (B) a provision incorporating the duties and | 11 |
| obligations of the clean coal project and the | 12 |
| participating electric utility with respect to the | 13 |
| notice and termination mechanism set forth in Section | 14 |
| 21-145 of this Article;
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| (C) a provision to the effect that a change in law, | 16 |
| regulation or market conditions is not a basis for | 17 |
| termination or reduction in payments by the purchaser; | 18 |
| and | 19 |
| (D) provisions for a plant availability target of | 20 |
| 85% from and after the third full calendar year of | 21 |
| operation and an incentive structure for meeting such | 22 |
| target, provided that the total bonus in any year for | 23 |
| exceeding the target in any year shall not exceed an | 24 |
| amount equivalent to 15% of the total return on equity | 25 |
| for such year and the total penalty for falling short | 26 |
| of such target in any year shall not exceed an amount |
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| equal to 15% of the total return on equity for such | 2 |
| year; and | 3 |
| (E) a provision pursuant to which at the end of the | 4 |
| 30 year contract term the clean coal project will, upon | 5 |
| the request of the Commission or other agency of the | 6 |
| State of Illinois authorized to make such request, be | 7 |
| transferred for the benefit of ratepayers to a trust or | 8 |
| other entity nominated by the Commission or other | 9 |
| agency in return for no consideration other than the | 10 |
| assumption of the obligation to retire the clean coal | 11 |
| project and remediate the site when the clean coal | 12 |
| project reaches the end of its useful economic life.
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| (3) With respect to the standard of review under the | 14 |
| Federal Power Act of the wholesale sales tariff, it is | 15 |
| adequate and appropriate that absent mutual written | 16 |
| consent of the participating electric utility and the | 17 |
| owner, operator, or lessee of a clean coal project any | 18 |
| proposed changes under Sections 205 and 206 of the Federal | 19 |
| Power Act to the wholesale sales tariff, including without | 20 |
| limitation the formula rate and service agreement, are | 21 |
| subject to the "public interest" standard of review as such | 22 |
| standard of review is applied by FERC pursuant to sections | 23 |
| 205 and 206 of the Federal Power Act. | 24 |
| To the extent, if any, that a wholesale sales tariff as | 25 |
| allowed to be effective by FERC has characteristics in addition | 26 |
| to, or different from, those set forth in this Section, such |
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| additional or different characteristics shall not alter a | 2 |
| participating electric utility's obligation to purchase | 3 |
| capacity and associated energy pursuant to wholesale sales | 4 |
| tariffs as set forth in this Article. | 5 |
| Nothing in this Article shall be deemed to limit the | 6 |
| participation of the State, or any agency or political | 7 |
| subdivision thereof, or any elected or appointed official of | 8 |
| the State of Illinois or any agency or political subdivision | 9 |
| thereof, in any FERC proceeding related to a wholesale sales | 10 |
| tariff. | 11 |
| (220 ILCS 5/21-125 new)
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| Sec. 21-125. Disposition of capacity and energy. | 13 |
| (a) Each participating electric utility that executes a | 14 |
| service agreement pursuant to the Clean Coal Development | 15 |
| Program Law shall resell the capacity and associated energy | 16 |
| purchased from a clean coal project to wholesale purchasers in | 17 |
| the wholesale capacity and energy markets available to the | 18 |
| participating electric utility. The participating electric | 19 |
| utility shall use its best efforts to obtain the highest prices | 20 |
| for the capacity and associated energy sold pursuant to this | 21 |
| Section so as to minimize the costs passed through to the | 22 |
| participating electric utility's delivery service customers | 23 |
| pursuant to Section 21-130. | 24 |
| (b) The participating electric utility shall be in | 25 |
| compliance with this Section if: |
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| (1) the prices obtained by the participating electric | 2 |
| utility are no less than the prices available for the | 3 |
| capacity and associated energy if sold into the day-ahead | 4 |
| and real time capacity and energy markets administered by a | 5 |
| regional transmission organization to which the applicable | 6 |
| qualified clean coal project is interconnected; or | 7 |
| (2) the participating electric utility otherwise sells | 8 |
| the capacity and associated energy pursuant to a plan set | 9 |
| forth in a tariff approved by the Commission pursuant to | 10 |
| Article IX of the Public Utilities Act.
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| (220 ILCS 5/21-130 new)
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| Sec. 21-130. Pass-through of clean coal development | 13 |
| benefits and costs. | 14 |
| (a) Because a participating electric utility is required to | 15 |
| accept an offer from a clean coal project to sell capacity and | 16 |
| associated energy pursuant to a wholesale sales tariff as | 17 |
| provided in Section 21-115 of this Article, the participating | 18 |
| electric utility is entitled to recover the costs less benefits | 19 |
| from its purchases pursuant to the wholesale sales tariff in | 20 |
| its retail rates. Each participating electric utility shall | 21 |
| pass-through to its delivery services customers the benefits | 22 |
| and costs of the Clean Coal Development Program without mark-up | 23 |
| as set forth in this Section. | 24 |
| (b) Within 60 days after the effective date of this | 25 |
| Article, each participating electric utility shall file with |
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| the Commission a rider to such utility's tariff that complies | 2 |
| with this Section. Such tariff riders shall be subject to | 3 |
| Article IX of the Public Utilities Act; provided, however, that | 4 |
| the period of suspension of such rider shall not extend more | 5 |
| than 75 days beyond the time when such rider would otherwise go | 6 |
| into effect and such period of suspension shall not be extended | 7 |
| by the Commission. Any proceeding initiated pursuant to Article | 8 |
| IX with respect to such rider shall be limited to making a | 9 |
| determination that, as a matter of law, the tariff rider | 10 |
| complies with the requirements of this section and any such | 11 |
| proceeding may not exceed 120 days in length. | 12 |
| (c) In order to comply with this Section, a tariff rider | 13 |
| shall: | 14 |
| (1) apply to all customers to which the participating | 15 |
| electric utility provides bundled retail services or | 16 |
| retail distribution service; | 17 |
| (2) be incorporated onto the participating electric | 18 |
| utility's customer bills in the same manner in which the | 19 |
| participating electric utility, as of the effective date of | 20 |
| this Article, incorporates charges pursuant to Section 6-5 | 21 |
| of the Renewable Energy, Energy Efficiency and Coal | 22 |
| Resources Development Law of 1997; and | 23 |
| (3) use an automatic rate adjustment methodology, as | 24 |
| such methodology understood pursuant to the Public | 25 |
| Utilities Act, having the following characteristics: | 26 |
| (A) a "CCDP factor" defined as the factor |
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| calculated as set forth in this subsection (c) to | 2 |
| represent the net benefit or cost of the Clean Coal | 3 |
| Development Program; | 4 |
| (B) a "determination period" defined as the | 5 |
| calendar month for which a CCDP Factor is determined | 6 |
| for the participating electric utility's delivery | 7 |
| services customers; | 8 |
| (C) an "effective period" defined as the monthly | 9 |
| billing period occurring 2 months after the | 10 |
| determination period, during which the CCDP factor is | 11 |
| applied to kilowatt-hours of energy delivered by the | 12 |
| participating electric utility to its delivery | 13 |
| services customers; | 14 |
| (D) "accrued CCDP expenses" defined as the sum of | 15 |
| accrued expenses incurred by the participating | 16 |
| electric utility during the determination period | 17 |
| pursuant to executed service agreements with clean | 18 |
| coal projects; | 19 |
| (E) "accrued CCDP revenues" (expressed as an | 20 |
| accounting credit) defined as the sum of accrued | 21 |
| revenues recorded by the participating electric | 22 |
| utility during the determination period associated | 23 |
| with the sale of capacity and associated energy by the | 24 |
| participating electric utility pursuant to Section 125 | 25 |
| of this Article; | 26 |
| (F) "automatic CCDP balancing factor" defined as |
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| the cumulative debit or credit balance, if any, | 2 |
| resulting from the application of the CCDP factor from | 3 |
| the effective date of the tariff rider through the | 4 |
| determination period; | 5 |
| (G) "forecast usage" (expressed in kilowatt-hours) | 6 |
| defined as the forecast by the participating electric | 7 |
| utility of the total energy that the participating | 8 |
| electric utility expects to deliver to its delivery | 9 |
| services customers during the effective period; and | 10 |
| (H) a formula for the determination of the CCDP | 11 |
| factor that divides the sum of the CCDP accrued | 12 |
| revenues, CCDP accrued expenses, and automatic CCDP | 13 |
| balancing factor by the forecast usage. | 14 |
| (d) Each participating electric utility shall submit its | 15 |
| CCDP factor to the Commission in an informational filing at | 16 |
| least 3 business days prior to the start of each effective | 17 |
| period during which it is to be applied. In addition, each | 18 |
| participating electric utility that is purchasing capacity and | 19 |
| associated energy pursuant to a service agreement during a | 20 |
| calendar year shall prepare and submit to the Commission an | 21 |
| annual report for each calendar year during which such | 22 |
| purchases are made, containing the details of the calculation | 23 |
| of its CCDP factor on or before the last business day of April | 24 |
| of the following calendar year. | 25 |
| (220 ILCS 5/21-135 new)
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| Sec. 21-135. Affiliate transactions. Notwithstanding any | 2 |
| other provision of this Article, if an electric utility or an | 3 |
| affiliate of an electric utility has an ownership interest in | 4 |
| any eligible facility, Article VII of this Act shall apply.
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| (220 ILCS 5/21-140 new)
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| Sec. 21-140. Certificates of convenience and necessity. | 7 |
| (a) If a CCN is required from the Commission for the | 8 |
| construction of transmission or pipeline facilities necessary | 9 |
| to support interconnection or supplemental fuel supply of a | 10 |
| clean coal project, the Commission's order shall be entered (1) | 11 |
| within 180 days after the date on which an application for such | 12 |
| a CCN has been filed pursuant to Section 8-406 of this Act | 13 |
| without a request for an order pursuant to Section 8-503 of | 14 |
| this Act; or (2) within 270 days in the case of an application | 15 |
| with a request for an order pursuant to Section 8-503 of this | 16 |
| Act. | 17 |
| (b) In any proceeding conducted by the Commission with | 18 |
| respect to a CCN filed pursuant to this Section, intervention | 19 |
| shall be limited to parties with a direct interest in the | 20 |
| requested CCN and any statutory consumer protection agency as | 21 |
| defined in subsection (d) of Section 9-102.1 of this Act. | 22 |
| Parties with a direct interest shall include each owner of | 23 |
| record of the land that would be crossed by the proposed | 24 |
| transmission or pipeline facilities unless the Commission | 25 |
| determines that such owner has acquired the land solely for the |
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| purpose of becoming a party to the CCN proceeding, and all | 2 |
| utilities and railroads whose lines will be crossed by the | 3 |
| proposed transmission or pipeline facilities or whose lines | 4 |
| will be paralleled within 200 feet by such proposed facilities. | 5 |
| Any application seeking rehearing of an order issued in | 6 |
| response to an application for a CCN filed pursuant to the | 7 |
| Section shall be filed within 10 days after service of the | 8 |
| order. | 9 |
| (c) The construction of transmission and pipeline | 10 |
| facilities necessary to support interconnection or | 11 |
| supplemental fuel supply of a clean coal project is in the | 12 |
| public interest, and in determining whether to issue an order | 13 |
| granting a CCN for construction of such facilities, the | 14 |
| Commission shall liberally construe the provisions of this | 15 |
| Section in favor of granting a CCN for construction of such | 16 |
| facilities.
| 17 |
| (220 ILCS 5/21-145 new)
| 18 |
| Sec. 21-145. Termination mechanism. Because (i) the core | 19 |
| plant construction cost quote will not likely be known at the | 20 |
| time when the applicable service agreement is executed by the | 21 |
| participating electric utility and (ii) the clean coal project | 22 |
| will likely incur significant costs related to the engineering | 23 |
| and design services performed to obtain the core plant | 24 |
| construction cost quote, and in order to provide a mechanism | 25 |
| for the Commission to review and approve any increase in the |
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LRB095 10034 MJR 33385 a |
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| anticipated core plant construction costs quote, the following | 2 |
| termination mechanism shall apply to all clean coal projects | 3 |
| participating in the Clean Coal Development Program: | 4 |
| (1) Upon completion of the core plant construction cost | 5 |
| quote for a given clean coal project, the clean coal | 6 |
| project shall compare its core plant construction cost | 7 |
| quote to the inflation-adjusted core plant construction | 8 |
| cost ceiling and determine whether its core plant | 9 |
| construction cost quote is in excess of the | 10 |
| inflation-adjusted core plant construction cost ceiling. | 11 |
| (2) If a clean coal project determines that its core | 12 |
| plant construction cost quote is in excess of the | 13 |
| inflation-adjusted core plant construction cost ceiling, | 14 |
| then the clean coal project shall file with the Commission | 15 |
| a pleading summarizing its determination that its core | 16 |
| plant construction cost quote is in excess of the | 17 |
| inflation-adjusted core plant construction cost ceiling | 18 |
| and any calculations and work papers related to such | 19 |
| determination. | 20 |
| (3) Upon receipt of a filing pursuant to Section 21-145 | 21 |
| of this Article, the Commission shall promptly commence an | 22 |
| investigation pursuant to Article X of this Act to | 23 |
| determine whether it is in the public interest for the | 24 |
| clean coal project to be constructed given the | 25 |
| determination that the core plant construction cost quote | 26 |
| is in excess of the inflation-adjusted core plant |
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LRB095 10034 MJR 33385 a |
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| 1 |
| construction cost ceiling. The Commission shall make such | 2 |
| public interest determination after hearing evidence | 3 |
| limited to the issue of whether the purposes of the Clean | 4 |
| Coal Development Program, as set forth in Section 21-105 of | 5 |
| this Article, shall be frustrated by the fact that the core | 6 |
| plant construction cost quote for the applicable clean coal | 7 |
| project is in excess of the inflation-adjusted core plant | 8 |
| construction cost ceiling. Any proceeding initiated by the | 9 |
| Commission pursuant to this Section may not exceed 120 days | 10 |
| in length. | 11 |
| (4) If, and only if, the Commission determines that the | 12 |
| purposes of the Clean Coal Development Program will be | 13 |
| frustrated by the fact that the core plant construction | 14 |
| cost quote for a given clean coal project is in excess of | 15 |
| the inflation-adjusted core plant construction cost | 16 |
| ceiling, then each participating electric utility that | 17 |
| executed a service agreement with such clean coal project | 18 |
| shall enforce its right to terminate such service agreement | 19 |
| and pay the clean coal project as a termination fee the | 20 |
| cost incurred by the clean coal project to obtain the core | 21 |
| plant construction cost quote. In the event that more than | 22 |
| one participating electric utility has executed a service | 23 |
| agreement with such clean coal project, then the | 24 |
| termination fee applicable to each service agreement shall | 25 |
| be allocated in proportion to the amount of capacity | 26 |
| contracted for relative to the total capacity contracted |
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LRB095 10034 MJR 33385 a |
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| 1 |
| for pursuant to all service agreements applicable to such | 2 |
| clean coal project. The aggregate of termination fees paid | 3 |
| by participating electric utilities to a clean coal project | 4 |
| pursuant to this Section shall not exceed $1.
| 5 |
| (5) If a participating electric utility terminates a | 6 |
| service agreement as contemplated in Section 21-145 of this | 7 |
| Article, the participating electric utility shall treat | 8 |
| the termination fee paid to the clean coal project as an | 9 |
| accrued CCDP expense and recover such termination fee | 10 |
| pursuant to the tariff rider set forth in Section 21-130 of | 11 |
| this Article.
| 12 |
| (220 ILCS 5/21-150 new)
| 13 |
| Sec. 21-150. Participation by a FutureGen demonstration | 14 |
| project. A FutureGen demonstration project may elect to be | 15 |
| deemed a clean coal project and participate in the Clean Coal | 16 |
| Development Program as set forth in this Article and as | 17 |
| modified by this Section. A FutureGen demonstration project | 18 |
| shall be deemed to have made such election on the date that the | 19 |
| FutureGen demonstration project files its wholesale sales | 20 |
| tariff at FERC pursuant to Section 205 of the Federal Power | 21 |
| Act. | 22 |
| No participating electric utility shall enter into a | 23 |
| service agreement with a FutureGen demonstration project if the | 24 |
| amount of capacity to be purchased under such service | 25 |
| agreement, together with the aggregate amount of all capacity |
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LRB095 10034 MJR 33385 a |
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| 1 |
| purchased under other service agreements executed previously | 2 |
| or contemporaneously by the participating electric utility | 3 |
| with any FutureGen demonstration project, exceeds 1% of the | 4 |
| participating electric utility's coincident peak delivery | 5 |
| services load, expressed in kilowatts, for the calendar year | 6 |
| immediately preceding the effective date of this Article. | 7 |
| Subsections 21-120(1) (other than Subsection 21-120(1)(D)) | 8 |
| and 21-120(2) shall not apply to the wholesale sales tariff of | 9 |
| a FutureGen demonstration project that elects to be deemed a | 10 |
| clean coal project. Subsection 21-120(1)(D) and Section 145 | 11 |
| shall apply to a FutureGen demonstration project. With respect | 12 |
| to a FutureGen demonstration project that elects to be deemed a | 13 |
| clean coal project, it is the intent of the General Assembly | 14 |
| that the wholesale sales tariff of a FutureGen demonstration | 15 |
| project recognize that (i) the FutureGen demonstration project | 16 |
| may be operated based on objectives different from a baseload | 17 |
| generating plant, and (ii) a FutureGen demonstration project is | 18 |
| likely to be funded by government appropriations and | 19 |
| contributions from non-profit organizations for which | 20 |
| traditional ratemaking concepts such as return on invested | 21 |
| capital are not appropriate.
| 22 |
| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.".
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